On 04 May, 2017 – Shares were mixed globally

Asian markets were mixed while Europe rallied on expected French election results and US shares were directionless.
United States
US stocks extended their lackluster performance seen over the past several sessions. Once again the major averages gyrated around the unchanged mark. The Dow Jones industrials were virtually unchanged (down 6.66 points). Both the S&P and Nasdaq inched up 0.1 percent. The choppy trading was attributed to caution prior to the release of the US employment report during the Friday global trading day. Traders also were cautious before and after the House of Representatives voted to approve a revised bill to repeal and replace Obamacare.
Energy stocks declined along with oil prices. Oil prices tumbled on signs that OPEC and other producing countries would not take more drastic steps to reduce the world’s stubbornly persistent glut of crude. Exxon and Chevron’s tumbled. Caterpillar also declined. Facebook was lower. Steel and telecom stocks also came under pressure while strength was visible among biotechnology stocks. Regeneron and Zoetis rose after their respective results.
Tesla dropped after the electric automaker posted a wider-than-expected first quarter loss and as some second guessed the company’s ability to hit its delivery target. The company said its quarterly loss widened to $330.2 million or $2.04 per share in the three months ended in March, compared with $282.3 million or $2.13 in the year ago period. Adjusting for one-time items, a loss of $1.33 a share was also greater than Wall St expectations.
In economic news, new weekly jobless claims were down 19,000 to 243,000. The March international trade deficit narrowed to $43.7 billion from a revised $43.8 billion in February. March factory orders edged up a monthly 0.2 percent after climbing a revised 1.2 percent in February.
These data reflect observations at 4:00 PM US ET. Gold at the afternoon London fixing was down US$21.85 to US$1,228.45. Copper futures were down 1.2 percent to US$2.51. WTI spot crude was down US$2.42 to US$5.06. Dated Brent spot crude was down US$2.47 to US$49.32. The US dollar was up against the Canadian and the Australian dollars. The currency declined against the euro, yen, pound and Swiss franc. The Dollar Index dropped 0.6 percent. The yields on both the US Treasury 30 year bond and 10 year note were up 3 basis points to 3.00 and 2.35 percent respectively.
Europe
European stocks advanced Thursday thanks to the latest batch of corporate earnings reports, especially from HSBC, Adidas and Royal Dutch Shell. Economic data also contributed to the upbeat mood. The FTSE was up 0.2 percent, the CAC gained 1.3 percent and the DAX and SMI were 1.0 percent higher.
Traders are confident prior to Sunday’s runoff election in France with polls indicating that Emmanuel Macron remains firmly in the lead against Marine Le Pen.
Adidas gained after reporting a bigger-than-expected increase in first-quarter sales and profits. Rheinmetall increased after the company said its first quarter operating earnings surged 61 percent to €50 million from €31 million in the year-ago period. BMW was higher after posting solid first-quarter results and reaffirming its 2017 targets. Alstom was up after confirming its financial targets for 2020. Société Générale rose after the lender settled a legal dispute with the Libyan Investment Authority over alleged bribery. HSBC Holdings jumped as the bank reported a surprise increase in first-quarter revenue driven by loan growth in Asia and a jump in trading income. Siemens was lower — second quarter profit was little changed from the year ago as losses from discontinued operations weighed on profit margins.
Royal Dutch Shell advanced after its first-quarter net profit more than doubled helped by rising oil prices. RSA Insurance Group gained after it reported first-quarter Group net written premiums of £1.71 billion. Imagination Technologies advanced after it said it has started a “dispute resolution procedure” with tech giant Apple over issues relating to intellectual property. Glencore was down after reporting a 3 percent decline in first-quarter copper production from its own sources. Rolls Royce Holdings was lower after the Financial Reporting Council launched an investigation into KPMG relating to its audit work on the company’s financial statements for the years 2011 to 2013. Swiss Re advanced in Zurich even as its quarterly profit nearly halved due to insurance payments related to Cyclone Debbie in Australia.
March Eurozone retail sales were up 0.3 percent on the month after increasing 0.5 percent in February. April final composite PMI climbed to 56.8 in April from 56.4 in March. The UK service sector PMI accelerated. The Markit/CIPS services PMI rose to 55.8 in April from 55.0 in March. UK mortgage approvals decreased to 66,837 in March from 67,936 in February.
Asia Pacific
Stocks were mixed Thursday thanks to falling oil and metals prices. Signals that the Federal Reserve might raise its fed funds rate at its June meeting offset signs that Emmanuel Macron may win the second round of the French presidential election. The looming monthly US jobs report and a possible House of Representative’s vote on the American Health Care Act also kept investors cautious. Markets in Japan were closed for the Golden Week holidays.
The Shanghai Composite was down 0.3 percent after the Caixin services PMI slipped to 51.5 in April — the lowest since May 2016 — from 52.2 in March. The Hang Seng was virtually unchanged (down 12.25 points).
Both the S&P/ASX and All Ordinaries were down 0.3 percent with weak metals prices pulling down mining stocks. Banks extended recent losses following weaker than expected earnings results from ANZ. Australia’s March trade data also disappointed investors. National Australia Bank slid despite posting turnaround results for the first half. The other three banks also were lower. Rio Tinto and Fortescue Metals Group retreated along with gold miners Newcrest and Northern Star. Telecom stocks also closed mostly lower while oil majors Oil Search and Woodside Petroleum advanced.
The Kospi was up 1.0 percent as strong corporate earnings helped rekindle investors’ appetite for risk. The index eclipsed 2011’s record high though worries over North Korea and other issues are keeping investors cautious over how long the rally will last.
The Sensex added 0.8 percent with banks rallying as ICICI Bank reported an almost threefold increase in March quarter net profit and the Union Cabinet approved promulgation of an ordinance to amend the Banking Regulation Act to deal with the problem of bad loans. Investors shrugged off a hawkish Fed statement and the April composite PMI reading of 51.3 which was down from 52.3 in March indicating that private sector growth slowed.
Looking Forward
April labour force survey from Canada and the US employment situation report will be released. On Sunday, the runoff in the French presidential election will be held.
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]