Investors were also pleased with the appointment of the new Federal Reserve Chairperson.
United States
US shares advanced Friday — the Dow Jones industrials were up 0.1 percent, the S&P gained 0.3 percent and the Nasdaq added 0.7 percent. Both the Dow and S&P have now gained for 8 consecutive weeks while the Nasdaq has been up for 6. For the week, the Dow was up 0.4 percent, the S&P 0.3 percent and the Nasdaq was 0.9 percent higher.
Apple advanced as shoppers streamed into the company’s stores to buy its latest iPhone. Apple also gave a better-than-expected sales forecast for the holiday shopping season. Qualcomm surged on reports of a possible tie-up with Broadcom. Aetna shares rose after Reuters reported US pharmacy operator CVS Health and the health insurer are working toward finalizing merger terms and announcing a deal as early as December. CVS retreated. American International Group (AIG) shares sank as investors reacted to a surprise $836 million boost to the insurance giant’s reserves. Starbucks advanced following results.
October employment was up 261,000 while the unemployment rate slipped to 4.1 percent from 4.2 percent. Although the employment gain was less than expected, revisions to the prior two months added 90,000 jobs. October ISM nonmanufacturing index reading climbed to 60.1 from 59.8 in September. September factory orders increased 1.4 percent with core capital goods (nondefense ex-aircraft) gaining an impressive 1.7 percent.
These data reflect observations at 4:00 PM US ET. Gold at the afternoon London fixing was down US$12.00 to US$1,267.20. Copper futures were down 0.8 percent to US$3.12. WTI spot crude was up US$1.10 to US$55.64. Dated Brent spot crude was up US$1.45 to US$62.07. The US dollar was up against the euro, Swiss franc and the Australian dollar. It was unchanged against the yen and down against the pound and Canadian dollar. The Dollar Index was up 0.2 percent. The yields on both the US Treasury 30 year bond and 10 year note were down 2 basis points to 2.81 percent and 2.33 percent respectively.
European markets
Most stock markets ended the week on a positive note. Gains were pared following the release of October US jobs report — employment increased less than anticipated and wage increases were muted. The FTSE and CAC inched up 0.1 percent while the DAX and SMI added 0.3 percent and 0.5 percent respectively. For the week, the FTSE was up 0.7 percent, the CAC increased 0.4 percent, the DAX rallied 2.0 percent and the SMI advanced 1.5 percent.
Deutsche Telekom gained after reports that T-Mobile and Sprint were trying to salvage their $74 billion merger. Evonik advanced after the chemicals maker announced a cost cutting program after reporting 11 percent growth in third-quarter adjusted core profit. Renault jumped after the French government announced it was selling a 4.73 percent stake in the carmaker. Société Générale tumbled after the lender reported lower profit in its third quarter and said it would not proceed with its Global Employee Share Ownership Plan, citing uncertainty over US disputes and legal reasons.
AXA retreated after reporting flat sales growth for the nine months to September. Air France-KLM sank after posting muted growth in net profit for the third quarter. Centrica was higher after acquiring a power management firm. Smith & Nephew advanced after reporting a 3 percent rise in third-quarter revenue. Telecoms firm Altice sank in Amsterdam after disappointing third-quarter results. Both Nestlé and Novartis advanced in Zurich along with Roche. Credit Suisse retreated on profit taking. Both Swiss Re and Swiss Life were down. Lufthansa, IAG and easyJet retreated.
October services PMI surprised, climbing to a reading of 55.6 from 53.6 and its highest level in six months.
Asia Pacific
Trading was light Friday with Japanese markets closed for the Culture Day holiday. However, most indices advanced with the exception of the Shanghai Composite.
The Shanghai Composite was down 0.3 percent after a disappointing reading of the October Caixin composite PMI. The index slipped to a reading of 51.0 from 51.4 in the prior month. However, the services reading climbed to 51.2 form 50.6 in September. Underlying sentiment was supported after the release of the US tax reform bill as well as the announcement of Jerome Powell as the next Federal Reserve Chair. The Hang Seng added 0.3 percent. For the week, the Shanghai Composite was down 1.3 percent while the Hang Seng added 0.6 percent.
Both the S&P/ASX and All Ordinaries advanced 0.5 percent on Friday led by financials and miners after US House of Representatives Republicans released a tax overall that would deliver deep tax cuts. Investors shrugged off disappointing retail sales — September retail sales were flat. Banks ANZ, Commonwealth and Westpac rose. Miners BHP Billiton and Rio Tinto closed higher as Chinese coal and iron ore futures extended gains. Gold miners Evolution and Newcrest gained while Woodside Petroleum and Beach Energy advanced as Brent crude prices hovered near two-year highs.
The Kospi edged up 0.5 percent Friday and was 2.5 percent higher for the week. The Sensex added 0.3 percent and gained 1.6 percent on the week.
Looking forward

Central Bank activities

Nov 7

Australia

Reserve Bank of Australia Monetary Policy Announcement

Nov 9

New Zealand

Reserve Bank of New Zealand Monetary Policy Announcement

The following indicators will be released this week…

Europe

Nov 6

Eurozone

Composite PMI (October)

Producer Price Index (September)

Germany

Manufacturing Orders (September)

Composite PMI (October)

France

Composite PMI (October)

Italy

Composite PMI (October)

Nov 7

Eurozone

Retail Sales (September)

Germany

Industrial Production (September)

Nov 8

France

Merchandise Trade (September)

Nov 9

Germany

Merchandise Trade (September)

UK

Merchandise Trade (September)

Nov 10

France

Industrial Production (September)

Italy

Industrial Production (September)

UK

Industrial Production (September)

Asia Pacific

Nov 8

China

Merchandise Trade (October)

Nov 9

Japan

Machinery Orders (September)

China

Consumer Price Index (October)

Producer Price Index (October)

Americas

Nov 7

United States

JOLTS (September)

Consumer Credit (September)

Nov 8

Canada

Housing Starts (September)

Nov 9

United States

Initial Unemployment Claims (week ending prior Saturday)

Nov 10

United States

Consumer Sentiment (November preliminary)

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]