On 20 March, 2017 – Shares were mixed in lackluster trading
There was little economic news to stir investors.
United States
Stocks were lower in lackluster trading for a third session as shares gyrated around the unchanged line in choppy trading. The Dow Jones industrials were virtually unchanged (down 8.76 points), the S&P was down 0.2 percent and the Nasdaq was virtually unchanged (up 0.53 point). Worries that Trump’s plan to cut taxes and boost the economy could take longer than previously expected weighed on US shares.
Financial leaders from the G20 economies reiterated their warnings against competitive devaluations and disorderly foreign exchange markets at their meeting in Baden-Baden Germany over the weekend. But they failed to agree on a commitment to keep international trade free and open, highlighting a global shift towards protectionism. Traders largely shrugged off their disappointment with the outcome. On Sunday, German Chancellor Angela Merkel and Japan’s Prime Minister Shinzo Abe defended free trade though, calling for a trade deal to be reached quickly between Japan and the European Union.
Biotechnology stocks showed a substantial move to the upside. Esperion Therapeutics was higher after the lipid management company said the FDA confirmed that its LDL-C lowering program is adequate to support approval of an LDL-C lowering indication for bempedoic acid. Aralez Pharmaceuticals also posted a strong gain following news CEO Adrian Adams acquired an additional 500,000 shares of the specialty pharmaceutical company’s common stock.
These data reflect observations at 4:00 PM US ET. Gold at the afternoon London fixing was up US$2.80 to US$1,232.40. Copper futures were down 1.4 percent to US$2.66. WTI spot crude was down 57 US cents to US$48.21. Dated Brent spot crude was down 10 US cents to US$51.66. The US dollar was up against the pound and the Canadian dollar. The currency declined against the yen and the Australian dollar. The currency was virtually unchanged against the euro and Swiss franc. The Dollar Index was up 0.1 percent. The yield on US Treasury 30 year bond was down 3 basis points to 3.08 percent while the yield on the 10 year note was down 4 basis points to 2.46 percent.
Europe
Most stock markets were lower as they traded in a narrow range throughout the session. Investors were in a cautious mood ahead of the Presidential debate in France. Traders were also concerned about global trade after the G20 struck a protectionists tone in its weekend meeting statement. Echoing recent remarks from President Donald Trump, US Treasury Secretary Steven Mnuchin said the nation wanted certain conditions met. The FTSE inched up 0.1 percent while the CAC and DAX were down 0.3 percent and 0.4 percent respectively. The SMI was virtually unchanged (down 3.49 points).
British Prime Minister Theresa May will invoke the Article 50 of the Lisbon Treaty on Wednesday, March 29 This will be the formal beginning of the process of leaving the European Union and paving the way for talks on trade and future relations, which should conclude in two years. UK’s Ambassador to the EU Tim Barrow informed European Council President Donald Tusk of the government’s intention to trigger Article 50, Brexit Secretary David Davis said in a statement.
Deutsche Bank declined after the bank fixed the total proceeds from its capital increase against cash contributions at €8.0 billion. Ingenico tumbled after IT consulting firm Atos denied media reports that it was preparing an offer for the payments company. BHP Billiton edged lower as a 39-day strike at La Escondida looked set to drag on for more weeks. Royal Dutch Shell was down as oil prices came under pressure from rising US drilling and ongoing high supplies from OPEC. Tullow Oil declined on a broker downgrade.
Royal Bank of Scotland Group declined on reports that it is in talks with former shareholders to resolve claims relating to its £12.00 billion cash-call in 2008. Unilever advanced after reports that it is preparing to sell some of its food brands in a £6 billion deal, partly in response to the recently rejected takeover offer from Kraft Heinz. Associated British Foods increased on a broker upgrade. UBS Group retreated in Zurich after saying it is facing a trial in France over a tax case.
Asia Pacific
With many Asian markets closed, the remaining indices were mixed as oil extended losses on supply concerns and the G20 finance ministers meeting in Germany during the weekend failed to agree on a commitment to keep global trade free and open. Markets in Japan were closed for a holiday. Investors were disappointed by the outcome of the G20 summit over the weekend especially on international trade and climate change.
The Shanghai Composite was up 0.4 percent and the Hang Seng was 0.8 percent higher. Gains among energy stocks offset declines in the realty sector. China’s property market picked up pace in February despite the government announcing a raft of measures to temper speculative demand.
The S&P/ASX was down 0.4 percent while the All Ordinaries lost 0.3 percent. Miners and energy stocks including Rio Tinto, Evolution Mining and Santos declined. Banks also closed mostly lower.
The Kospi was down 0.3 percent thanks to profit taking as foreign investors sold after a 10-day buying spree. The Sensex lost 0.4 percent as oil futures extended losses on supply concerns and investors waited for a raft of speeches by Federal Reserve officials this week for clues about the global interest rates going forward.
Looking Forward
The Reserve Bank of Australia publishes the minutes from its policy meeting held earlier this month. Fourth quarter residential property prices will be released. The UK releases February consumer and producer price indices and March CBI industrial trends survey. Canada posts January retail sales. The US releases fourth quarter current account data.
Global Stock Markets
*Note — all releases are listed in local time.
Source: Fidelity
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