On 04 April, 2017 – Global stocks were mixed

United States
Stocks were little changed Tuesday — investors preferred to stay on the sidelines prior to first quarter earnings season. They also remained cautious over President Donald Trump’s ability to deliver on promises such as tax reform. Traders seemed reluctant to make significant moves ahead of some key events later this week, including the release of the monthly employment report on Friday and the meeting between President Donald Trump and Chinese President Xi Jinping on Thursday and Friday. The Dow Jones industrials were up 0.2 percent and both the S&P and Nasdaq edged up 0.1 percent. The major averages spent the day gyrating back and forth across the unchanged line.
In economic news, the February international trade deficit narrowed by more than expected. The trade deficit fell to $43.6 billion from a revised $48.2 billion in January. The narrower trade deficit came as the value of exports edged up by 0.2 percent to $192.9 billion, while the value of imports tumbled by 1.8 percent to $236.4 billion. In a separate report, factory orders were up 1.0 percent in February after surging a revised 1.5 percent in January.
Caterpillar jumped on a broker upgrade. United Technologies and Boeing also advanced. Ralph Lauren declined. Nordstrom, L Brands, Kohl’s and Macys also declined. Hospital stocks declined after talk of a health bill revival. Bank of America declined on a broker downgrade.
These data reflect observations at 4:00 PM US ET. Gold at the afternoon London fixing was up US$10.40 to US$1,257.65. Copper futures were up 0.5 percent to US$2.62. WTI spot crude was up 84 US cents to US$51.08. Dated Brent spot crude was up US$1.02 to US$54.14. The US dollar was up against the pound and the Canadian and Australian dollars. The currency declined against the yen. The dollar was unchanged against the euro, Swiss franc and the yuan. The Dollar Index was up 0.1 percent. The yields on both the US Treasury 30 year bond and the 10 year note were up 3 basis points to 3.00 percent and 2.36 percent respectively.
Europe
European stock indices advanced with modest gains. Banks and automakers weakness was offset by commodity-related stock gains. Automakers were under pressure after March US auto sales were below expectations. Investors remained cautious before some major events later in the week. The Federal Reserve will release the minutes from its March meeting tomorrow. At that meeting, the FOMC increased its fed funds rate. Traders are hopeful they will provide some direction regarding the central bank’s outlook on interest rates. On Thursday and Friday, US President Donald Trump and Chinese President Xi Jinping will meet. This also has triggered some uncertainty in the markets. The March US employment report is slated for Friday.
The FTSE was up 0.5 percent, the CAC gained 0.3 percent and both the DAX and SMI added 0.2 percent. Allianz gained on a broker upgrade. Banks including Deutsche Bank, Commerzbank, Société Générale, BNP Paribas and Crédit Agricole were down. In London, Imagination Technologies climbed on bargain hunting after plunging Monday following Apple’s announcement that it will no longer use the graphics chips designed by the company. Shares of Total, BP and Royal Dutch Shell advanced.
Bunzl advanced after the distribution and outsourcing group acquired two safety businesses in the US and Italy. Weir Group increased on a broker upgrade. Sainsbury and Morrison declined on poor sales data. Randgold Resources and Fresnillo gained as gold prices hit a one-month high. Sophos hit an all-time high after the IT security firm reported billings ahead of expectations. Nanoco Group declined in heavy volumes after the maker of quantum dots – semiconductor nanocrystals used in displays – said sales did not materialize in the second half and cut its full year expectations.
February Eurozone retail sales increased at the fastest pace in four months largely reflecting higher clothing and footwear sales. Retail sales climbed 0.7 percent on the month. UK March Chartered Institute of Procurement & Supply/Markit Purchasing Managers’ Index dropped to 52.2 from 52.5 in February.
Asia Pacific
Asian stocks declined as investors here waited for the outcome of the meeting between US President Donald Trump and Chinese President Xi Jinping. Markets in Mainland China, Hong Kong, Taiwan and India were closed for holidays.
The Nikkei dropped 0.9 percent and the Topix declined 0.8 percent as the US dollar extended overnight losses, automakers reported weaker than expected US sales and a drop in US Treasury yields weighed on banks and insurers. Automakers Honda Motor, Toyota Motor, Mazda Motor and Nissan Motor declined. Toshiba tumbled to extend recent losses amid reports that it needs further aid. Among financial stocks, Mitsubishi UFJ Financial, Sumitomo Mitsui Financial, Mizuho Financial, Dai-ichi Life Holdings and T&D Holdings declined. J.Front Retailing retreated after reporting a drop in March sales.
Both the S&P/ASX and All Ordinaries declined 0.2 percent after consumer confidence data disappointed investors and the Reserve Bank of Australia left its monetary policy unchanged for a seventh straight meeting as virtually universally expected. The big four banks were lower along with miners BHP Billiton and Rio Tinto. Oil stocks also closed broadly lower. Gold miners Newcrest Mining, Evolution, Northern Star and Regis Resources advanced after gold hit a one-week high on a weaker dollar amid geopolitical worries.
The Kospi was down 0.3 percent on increased selling by foreigners and institutions.
Looking Forward
Japan’s March PMI composite will be released. March services PMI will be reported for India, the UK and the US. March composite PMIs will be posted for the Eurozone, France and Germany. In the US, March ADP private employment report will be posted. March ISM nonmanufacturing index will be released. The FOMC publishes minutes from its last monetary policy meeting.
Global Stock Markets

*Note — all releases are listed in local time.

Source: Fidelity

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