On 10 November, 2015 – Stocks were mixed as investors fretted over global economic growth and a possible Federal Reserve interest rate increase in December.

Stocks were mixed as investors fretted over global economic growth and a possible Federal Reserve interest rate increase in December.
United States
United States markets drifted as traders found little to like in the latest corporate news. Concerns about the health of the global economy have contributed to stock market weakness, particularly for mining companies. The Dow Jones industrials and S&P were up 0.2% but the Nasdaq was 0.2% lower. Tech stocks declined led by a drop in Apple shares after an analyst said a slowdown in the company’s orders for components suggested weak demand for the new iPhone 6s. Apple reported record quarterly earnings just two weeks ago, bolstered by surging sales in China. Utility stocks traded higher after taking losses in recent weeks.
Gap retreated after the retailer posted disappointing results for October, including lower overall sales. Rockwell Automation, an industrial equipment and software maker, declined after its earnings came in short of what was expected. Shares of home builder DR Horton advanced after its fiscal fourth quarter results surpassed expectations. Chipotle Mexican Grill’s restaurants in Washington State and Oregon could reopen in a few days after health officials said they did not find a source for an E. coli outbreak that was related to the company. Shares of Chipotle gained. Freeport-McMoRan declined amid a flare up in concerns about lower demand for copper from China — one of the world’s biggest consumers of raw materials. Both Intel and Microsoft declined.
With the earnings season drawing to an end, economic data will move to the forefront as policy makers assess whether to raise rates next month. Readings on the health of consumers are due later this week, with October retail sales and consumer sentiment both forecast to rise.
These data reflect observations at 4:00 PM US ET. Gold at the afternoon London fixing was down US$2.50 to US$1,087.10. Copper futures were down 0.5% to US$2.22. WTI spot crude was up 22 US cents to US$44.09. Dated Brent spot crude was up 17 US cents to US$47.36. The US dollar was up against the euro, Swiss franc and the Australian dollar. It was virtually unchanged against the yen and pound. However, it declined against the Canadian dollar. The Dollar Index was up 0.3%. The yields on both the US Treasury 30 year bond and the 10 year note slipped 2 basis points to 3.10% and 2.33% respectively.
Europe
European markets were mixed Tuesday. The markets were under pressure in early trading following the release of the weaker than expected Chinese inflation reports. However, the markets were able to largely bounce back and finish near the unchanged level. The FTSE and SMI lost 0.3% each while the CAC was virtually unchanged and the DAX was up 0.2%.
China’s inflation eased more than expected in October largely reflecting a slowdown in food inflation, while producer prices continued their downward trend giving room for the Peoples Bank of China to ease its monetary policy further. Consumer prices were up 1.3% from a year ago in October after increasing 1.6% the month before.
Eurozone finance ministers called on Greek authorities to finalize the financial sector measures ahead of the release of €2 billion of bailout funds. On the finalization of both financial and legislative measures over the course of the coming week, the European Stability Mechanism would unlock funds.
Evotec declined after the drug discovery and development company announced 9 month results. Both RWE and E.ON were lower. Deutsche Bank and Commerzbank retreated. Lagardère climbed after the publishing company reported growth in third quarter like-for-like sales. Vodafone increased after boosting its full-year forecast. Experian gained after it announced a first interim dividend of 12.5 US cents per share, up 2% on the prior year. The company also announced an extension to the previous share repurchase program. National Grid advanced after the company said it will begin a process to rebalance its portfolio through the potential sale of a majority stake in its UK Gas Distribution business. Wolseley declined after its first quarter trading profit grew 6% to £250 million from £236 million in the previous year. Wm. Morrison Supermarkets and Tesco dropped after broker downgrades. Miners Anglo American, Antofagasta, Glencore and BHP Billiton declined.
France’s industrial production growth slowed to 0.1% in September following August’s 1.7% expansion.
Asia Pacific
Most Asian stocks declined Tuesday after global growth concerns engulfed the US and European markets overnight. Commodity price weakness and US interest rate increase worries also kept investors on edge as fresh data flagged persistent deflationary pressures in China.
China’s consumer price index declined to a five-month low of 1.3% in October in yet another sign of subdued demand and slowing growth in the country. Producer prices fell 5.9% and were down for the 44th straight month in October, raising expectations that policymakers will unveil more fiscal and monetary stimulus to boost GDP growth in 2016. The Shanghai Composite lost 0.2% while the Hang Seng was 1.4% lower. China will deliver a slew of reforms in the next five years to guard against financial risks and make the renminbi an international currency, PBoC Governor Zhou Xiaochuan wrote in an article.
The Nikkei edged up 0.1% as the yen weakened against the dollar. Among the companies that advanced were Toshiba, Daikin Industries, Advantest and Sumco. Screen Holdings soared after reporting a 60% jump in its April to September operating profit. Japan Display climbed after saying it hasn’t ruled out a partnership with embattled rival Sharp to protect Japan’s LCD industry.
Both the S&P/ASX and All Ordinaries were down 0.4% as banks continued to struggle on concerns they may have to set aside more capital. Economic reports painted a mixed picture of the economy, with home loan approvals rising more than expected last month while business confidence deteriorated in October. Commonwealth and Westpac declined while miners BHP Billiton and Rio Tinto gained. Port and rail operator Asciano rallied after the company confirmed it had received a rival takeover bid from a consortium led by logistics company Qube Holdings. Qube Holdings declined. Gold miner Newcrest Mining and Evolution Mining gained after gold prices steadied after hitting three-month lows.
The Kospi sank 1.4% on worries about a US interest rate increase and slowing Chinese growth. The Sensex tumbled 1.4% on renewed concerns the Modi government would struggle to push through crucial economic reforms.
Global Stock Market Recap

Please remember, the value of investments and the income from them can do down as well as up. Funds that invest in overseas markets may be subject to currency fluctuations. Investments in small and emerging markets can be more volatile than other overseas markets. Reference in this document to specific securities should not be construed as a recommendation to buy or sell these securities, but is included for the purposes of illustration only.
Looking forward*
China reports October industrial production and retail sales. The UK posts the October labour market report. In the US, banks are closed for the Veterans Day holiday but markets are open.
*Note — all releases are listed in local time.