On 09 November, 2016 – Global stocks mixed after Wednesday’s rallies

Asian stocks jumped while Europe slumped.
United States
Unlike stock indices in Europe, the Dow Jones industrials and S&P continued to rally on Thursday. Only the Nasdaq retreated. The Dow added 1.2 percent to close at a new high for the first time since August. The S&P was up a modest 0.2 percent. However, Nasdaq retreated 0.8 percent. Consumer-focused companies, utilities and technology stocks were among the biggest decliners. Traders were focusing on President-elect Donald Trump’s promises to bolster economic growth through infrastructure spending, rather than uncertainties such as what he might do with trade agreements.
Shares of AT&T, Verizon Communications and T-Mobile slid. Apple, Netflix, Amazon and Microsoft were lower. Novavax tumbled after the company reported third-quarter revenue that fell short of forecasts. However, banks including JPMorgan Chase, Goldman Sachs, Wells Fargo and Discover Financial Services advanced. The banks gained among speculation that Mr. Trump’s administration could result in higher interest rates and less government regulation, which tend to benefit banks and other financial stock. Kohl’s surged after the company said it saw positive trends heading into the coming holiday shopping season. Pfizer posted a gain after a report from Reuters said the drug giant is evaluating a potential sale or spin-off of its consumer health division that could value the unit at as much as $14 billion.
These data reflect observations at 4:00 PM US ET. Gold at the afternoon London fixing was down US$13.90 to US$1,267.50. Copper futures were up 3.4 percent to US$2.54. WTI spot crude was down 81 US cents to US$44.46. Dated Brent spot crude was down 67 US cents to US$45.69. The US dollar was up against the yen, euro, Swiss franc and the Canadian and Australian dollars. However, it declined against the pound. The Dollar Index was up 0.3 percent. The yield on US Treasury 30 year bond was up 8 basis points to 2.95 percent while the yield on the 10 year note was up 6 basis points to 2.14 percent.
Europe
Stocks mostly retreated Thursday and after Wednesday’s outsized gains. After increasing in early trading, investors began to pare their gains after gold prices turned lower. Early gains were partly driven by rising prices for precious metals. The FTSE declined 1.2 percent, the CAC was down 0.3 percent and the DAX slipped 0.1 percent. The SMI added 0.4 percent.
Siemens climbed after the company unveiled plans to spin off its $15 billion healthcare division after reporting a 20 percent increase in fiscal fourth quarter net profit. Puma gained after its third-quarter profit nearly doubled. Lanxess advanced after it raised its 2016 profit guidance for the third time. Continental was lower after reporting a 41 percent drop in third-quarter profit. Vivendi jumped after it reported third-quarter earnings of €264 million compared to a loss of €158 million a year ago. Lagardère advanced after the trade book publisher reported third-quarter revenue of €1.976 billion, up from last year’s €1.846 billion. In London, banks including RBS, Barclays and Lloyds Banking Group rose sharply.
Utility Engie dropped after a profit warning. Vedanta Resources jumped after its first-half loss narrowed from last year. AstraZeneca was lower after its third-quarter profit before tax declined 27 percent from a year ago. Hikma Pharmaceuticals tumbled after lowering its FY16 sales outlook. Mediclinic International plunged after reporting a fall in six-month underlying earnings. Zurich Insurance Group gained after its third-quarter profit more than quadrupled. Insurer Generali Group was lower in Milan after reporting a fall in nine-month net profit. Aegon surged in Amsterdam after its third-quarter profit beat expectations.
French industrial and manufacturing output declined more than expected in September. Industrial production fell 1.1 percent on the month after increasing 2.3 percent last time. Italy’s industrial production declined for the first time in three months in September. Industrial output 0.8 percent on the month after climbing 1.8 percent in August.
Asia Pacific
Asia’s stock markets followed those in Europe and the US in rallying and continuing a global rebound in share prices that followed a plunge after Donald Trump’s US presidential victory.
The Shanghai Composite, which does not always track global markets, finished up 1.4 percent, after declining 0.6 percent Wednesday. In Hong Kong, the Hang Seng was up 1.9 percent after closing down 2.2 percent Wednesday. In Hong Kong, stocks were about 2 percent higher at the end of trading, making up for most of their drop on Wednesday. In Australia, shares closed 3.3 percent higher.
The Nikkei soared 6.7 percent after tumbling 5.4 percent Wednesday. Similarly, the Topix was 5.8 percent higher after a loss of 4.6 percent the day before. It was the biggest Japanese stock rally in nine months as investors reassessed the effects of Donald Trump’s surprise victory in the US presidential election. The yen tumbled against the US dollar, helping investors shrug off sluggish core machinery orders data. Core machinery orders fell 3.3 percent in September from the previous month and signaling fragile capital expenditures in the economy. Among the big gainers, Alps Electric, Nomura, Mitsubishi Materials, Mitsubishi UFJ Financial Group, Dai-ichi Life Insurance, Sumitomo Mitsui Trust, Sumco and T&D Holdings all jumped.
Both the S&P/ASX and All Ordinaries jumped 3.3 percent after tumbling 1.9 percent Wednesday. Miners BHP Billiton, Rio Tinto and Fortescue Metals Group soared after iron ore prices hit a two-year high. Oil majors Santos, Origin Energy and Woodside Petroleum rallied after oil futures settled at their highest level in a week on Wednesday. The big four banks were higher as well.
The Kospi was up 2.3 percent after Wednesday’s loss of 2.2 percent. The Sensex added 1.0 percent after declining 1.2 percent the day before.
Looking Forward
Japan releases October producer prices. India posts September industrial production. Preliminary November consumer sentiment will be reported in the US. It is a holiday in the US — banks and the bond market will be closed but the stock markets will be open.
Global Stock Markets

*Note — all releases are listed in local time.

Source: Fidelity

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