On 16 February, 2017 – Global indices were mixed on Thursday
Investors paused for breath and some profit taking after the recent rally.
United States
US stocks slipped Thursday as energy stocks retreated with oil prices in choppy trading. Investors also took profits on recent gains. The Dow was virtually unchanged (up 8.18 points) while the S&P and Nasdaq each slipped 0.1 percent. Wells Fargo, Bank of America, JPMorgan and Citigroup retreated. TripAdvisor was lower. NetEase jumped after the Chinese online game developer revenue beat expectations. Utilities advanced.
Initial claims increased 5,000 to 239,000. Housing starts were down 2.6 percent to an annualized rate of 1.246 million in January after jumping by 11.3 percent to a revised 1.279 million in December. Building permits jumped by 4.6 percent to a rate of 1.285 million in January after rising by 1.3 percent to a revised 1.228 million in December. The Philly Fed index for current manufacturing activity in the region soared to a reading of 43.3 in February from 23.6 in January. This was the highest level since January of 1984.
These data reflect observations at 4:00 PM US ET. Gold at the afternoon London fixing was up US$16.15 to US$1,240.55. Copper futures were down 1.1 percent to US$2.73. WTI spot crude was up 29 US cents to US$53.40. Dated Brent spot crude was down 6 US cents to US$55.69. The US dollar was down against the yen, euro, pound and the Swiss franc. The currency declined against the Australian dollar while the Canadian dollar was unchanged. The Dollar Index was down 0.6 percent. The yield on US Treasury 30 year bond was down 3 basis points to 3.05 percent while the yield on the 10 year note was down 5 basis points to 2.45 percent.
Europe
Most European stock markets were lower Thursday. Profit taking played a role in the decline after the markets enjoyed seven straight sessions of gains. Bank stocks turned lower following yesterday’s rally and mining stocks weakened along with metal prices. The FTSE and DAX declined 0.3 percent, the CAC was down 0.5 percent and the SMI lost 0.2 percent.
European Central Bank, in minutes of its last meeting, said that the governing council broadly agreed to look through the energy-driven recent increase in headline inflation and sought patience as they judged that the euro area economy still required a substantial monetary stimulus to bring price growth to target. The Governing Council should monitor potential indirect and second round effects of the recent inflation jump.
Deutsche Börse advanced after stock exchange operator proposed to raise its dividend for 2016 after reporting strong increases in annual earnings and profits. In Paris, Air France-KLM soared after the airline promised further cost-cutting efforts this year after posting better-than-expected earnings for 2016 on the back of a sharp drop in fuel costs. Lufthansa and International Consolidates Airlines Group both gained. Energy management firm Schneider Electric tumbled after its fiscal 2016 revenue decreased 7.3 percent to €24.69 billion. Cap Gemini gained after announcing the acquisition of TCube Solutions, an Insurance IT services firm in the US.
In London, Cobham dropped after the aerospace group issued its fifth profit warning in less than two years, saying it now expects full-year 2016 Group underlying trading profit to be £225 million, down from its prior outlook of £245 million. Nestlé was lower in Zurich after its fiscal 2016 profit declined to 8.53 billion Swiss francs from last year’s 9.07 billion francs, mainly due to the impact of a one-off non-cash adjustment to deferred taxes. AstraZeneca, BP, Royal Dutch Shell and Imperial Brands all retreated.
Asia Pacific
Shares were mixed Thursday thanks to upbeat US data and Fed Chair Janet Yellen’s hawkish tone in her latest remarks on Capitol Hill. Both helped to spur expectations of a faster pace of Fed interest rate increased in 2017.
Both the Shanghai Composite and Hang Seng were up 0.5 percent as higher commodity prices and media reports of a pick-up in spending on railways and other infrastructure this year boosted material stocks.
The Nikkei and Topix slid 0.5 percent and 0.2 percent respectively as the US dollar slipped against the Japanese yen. A stronger yen hurt automakers, with Honda, Nissan and Toyota ending down. Toshiba tumbled to extend losses after the conglomerate delayed releasing its earnings results and said it would book a $6.3 billion hit to its US nuclear unit. Banks such as Mitsubishi UFJ Financial, Mizuho Financial and Sumitomo Mitsui Financial closed flat to slightly higher after US bond yields climbed again Wednesday.
Both the S&P/ASX and All Ordinaries edged 0.1 percent higher after falling earlier in the session in the wake of some disappointing earnings updates and a mixed jobs report. Although employment increased 13,500 after a revised increase of 16,300 in December, full-time employment tumbled by 48,800 persons but was offset by a 58,300 increase in the number of people employed part-time. The four big banks advanced.
The Kospi slipped 0.1 percent. Finance Minister Yoo Il-ho rejected media claims that the country has been manipulating its currency for competitive advantage. The Sensex rebounded 0.5 percent after two days of losses with IT stocks leading the surge.
Looking Forward
The UK posts January retail sales. US leading indicators for January are released.
Global Stock Markets
*Note — all releases are listed in local time.
Source: Fidelity
Fidelity disclaimer:
The objective of this page is to present users with objective news, information, data and guidance on personal finance topics drawn from a diverse collection of sources including affiliated and non-affiliated financial services publications. Content is not intended to provide tax, legal, insurance or investment advice and should not be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any security or investment by any Fidelity entity or any third-party.
Jesmond Mizzi Financial Advisors Disclaimer:
This article, does not intend to give investment advice and the contents therein should not be construed as such. Jesmond Mizzi Financial Advisors Limited is licensed to conduct investment services by the MFSA and is a Member Firm of the Malta Stock Exchange. The directors or related parties, including the company, and their clients are likely to have an interest in securities mentioned in this article. For further information contact Jesmond Mizzi Financial Advisors Limited at 67, Level 3, South Street, Valletta, or on Tel: 21224410, or email [email protected]