On 07 August, 2017 – Most global stocks advanced Monday
  1. Home
  2. Global Round Ups
  3. On 07 August, 2017 – Most global stocks advanced Monday

On 07 August, 2017 – Most global stocks advanced Monday

August 8, 2017
|In Global Round Ups
|By Jesmond Mizzi Financial Advisors

Positive earnings combined with positive sentiment from Friday’s good US employment report sent most shares higher.
United States
Stocks advanced modestly Monday adding to Friday’s narrow gains. With its 0.1 percent increase, the Dow Jones industrials climbed to a new record closing high for the ninth consecutive session. The S&P gained 0.2 percent and the Nasdaq was 0.5 percent higher. However, a lack of major US economic data kept some investors on the sidelines waiting for key inflation data. Traders may also have been reluctant to make significant moves amid geopolitical uncertainty after the United Nations imposed stringent new sanctions on North Korea for its escalating nuclear and missile programs.
NxStage Medical moved higher after the medical technology and services company agreed to be acquired by Fresenius Medical Care for about $2 billion. Horizon Pharma rallied after reporting better than expected second quarter results and providing upbeat guidance. Zynerba Pharmaceuticals declined after the drug developer said its synthetic cannabis-based gel to treat epilepsy failed a mid-stage study.
Wal-Mart advanced along with Dollar Tree and Best Buy. Tyson Foods gained after reporting better than expected quarterly profit and sales. Hormel Foods and Kroger also advanced. United Technologies retreated following a report it has submitted an offer to buy aircraft component manufacturer Rockwell Collins. Rockwell was up. Warren Buffett’s Berkshire Hathaway declined after it reported a second quarter profit decline.
These data reflect observations at 4:00 PM US ET. Gold at the afternoon London fixing was up 30 US cents to US$1,258.00. Copper futures were up 0.8 percent to US$2.91. WTI spot crude was down 54 US cents to US$49.31. Dated Brent spot crude was down 19 US cents to US$52.23. The US dollar was up against the yen, pound, Swiss franc and the Canadian and Australian dollars. The currency declined against the euro. The Dollar Index was up 0.1 percent. The yields on US Treasury 30 year bond and 10 year note were down 1 basis point to 2.83 and 2.25 percent respectively.
Europe
European markets ended Monday’s session with mixed results. Investor sentiment was dented by weaker than expected economic data. German industrial output unexpectedly fell a monthly 1.1 percent in June, while investor confidence in the Eurozone declined for the second straight month in August to the lowest level in three months. The FTSE added 0.3 percent while the CAC edged up 0.1 percent. The DAX and SMI retreated 0.3 percent and 0.2 percent respectively.
Fresenius Medical Care declined after the company signed an agreement to acquire NxStage Medical, a US-based medical technology and services company. QSC tumbled after reporting a drop in second-quarter revenues. Renault advanced after the carmaker signed a landmark joint venture deal to build more than 150,000 cars a year in Iran.
Paddy Power Betfair was down after the gambling firm announced the departure of its CEO after 16 years with the Group and its predecessor companies. 21st Century Technology soared after the specialist provider of tailored solutions to the transport community announced a 3-year bus systems and services contract with Abellio. Anglo American, Rio Tinto, Glencore and BHP Billiton were higher. Postal firm PostNL sank in Amsterdam after saying that regulatory changes would impact its FY outlook. UBS declined while Credit Suisse was unchanged on the day. Both BP and Royal Dutch Shell advanced. Investors will keep watch on developments from a two-day gathering of the Organization of the Petroleum Exporting Countries (OPEC), which is meeting to discuss compliance with production quotas.
Eurozone investor confidence declined for the second straight month in August to the lowest level in three months according to Sentix. German June industrial production decreased unexpectedly for the first time this year — all sectors except energy experienced contraction. Industrial output fell 1.1 percent on the month after increasing 1.2 percent in May. UK house price inflation slowed to a more than four-year low in July according to Halifax. House prices increased 2.1 percent from a year ago in three months to July, following the 2.6 percent rise seen in three months to June. This was the weakest growth since April 2013. Novartis, Roche and Nestlé slipped.
Asia Pacific
Most shares in the Asia Pacific region rose on Monday after better than expected US jobs data generated optimism about growth in the US, but at the same time spurred expectations that it could lead to a third rate rise this year by the Federal Reserve. US non-farm payroll employment added 209,000 jobs in July after an upwardly revised 231,000 job increase in June. The jobless rate edged down to 4.3 percent from 4.4 percent in June. Investors also awaited Pyongyang, North Korea’s response after the UN Security Council unanimously approved tough new sanctions Saturday to punish the country for its escalating nuclear and missile programs.
Both the Nikkei and Topix added 0.5 percent after the Japanese yen weakened against the US dollar and oil retained most of Friday’s gains. Gold remained under selling pressure to hover near two-week lows. Toyota Motor climbed after the automaker raised its full-year guidance, citing favorable exchange rates. Suzuki Motor and Mazda Motor advanced. Toshiba jumped on reports that its auditor will sign off on its financial results for the year ended March, helping lessen the risk of a delisting.
The Shanghai Composite reversed early losses to close 0.5 percent higher prior to release of merchandise trade and inflation data due this week. The Hang Seng was also up 0.5 percent.
Both the S&P/ASX and All Ordinaries rallied 0.9 percent. Miners BHP Billiton, Rio Tinto and Fortescue Metals Group climbed along with energy majors Woodside Petroleum, Origin Energy, Beach Energy, Oil Search and Santos. Financials also recovered from last week’s losses, with the big four banks closing higher. Casino operator Crown Resorts tumbled on a brokerage downgrade.
The Kospi edged up 0.1 percent. The Sensex slipped 0.2 percent.
Looking forward
German and French June merchandise trade data will be released. In the US, June JOLTS will be reported.
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]