On 01 May, 2017 – US markets were mixed thanks to weak economic data
Most global markets in Asia and Europe were closed for a holiday.
United States
Stocks advanced in muted trading with most of the world’s markets closed for May Day or Labor Day. The Dow Jones industrials slipped 0.1 percent and the S&P gained 0.2 percent. The Nasdaq added 0.7 percent as gains in big tech stocks more than offset weak economic data and pushed the Nasdaq to another record high.
Big technology and consumer-focused companies such as Apple and Amazon led stocks higher. Apple will report earnings at the end of Tuesday’s global market day. Microsoft and Facebook also hit all-time highs. Boeing and IBM declined while Goldman Sachs and JPMorgan Chase were higher. Financials rose despite volatility caused by President Donald Trump’s comments that he was actively considering breaking up big banks. US Treasury Secretary Steve Mnuchin said that economic growth of 3 percent is achievable in the next two years as the Trump administration sets out to cut taxes. Banks were up with bond yields after Congress agreed to a deal that will keep the government operating for the rest of the fiscal year ending September 30 2017.
April ISM manufacturing index advanced for the eighth straight month, but at a slower pace. New orders and hiring grew more slowly. March personal spending was unchanged on the month as people spent less on long-lasting goods like cars.
These data reflect observations at 4:00 PM US ET. The London Bullion Market was closed for a holiday. Copper futures were up 2.15 percent to US$2.66. WTI spot crude was down 59 US cents to US$48.74. Dated Brent spot crude was down 60 US cents to US$51.45. The US dollar was up against the yen, pound, Swiss franc and the Canadian dollar. The currency declined against the Australian dollar and was virtually unchanged against the euro. The Dollar Index was virtually unchanged. The yield on US Treasury 30 year bond was up 5 basis points to 3.00 percent while the yield on the 10 year note was up 4 basis points to 2.32 percent.
Europe
Markets were closed for a holiday.
Asia Pacific
Most markets in the Asia Pacific region were closed for the labor day holiday. However, shares in Australia and Japan advanced. Stocks here shrugged off Friday’s weak US gross domestic product report. Investors also shrugged off China’s CFLP manufacturing PMI which showed growth in the sector slowed faster than expected in April amid recent sharp declines in iron ore and steel prices. Markets in China, Hong Kong, South Korea, Malaysia, Singapore, Taiwan, India and Indonesia were closed for public holidays.
The S&P/ASX and All Ordinaries both were up 0.5 percent. Shares rallied after US congressional negotiators reached a tentative deal on a spending package to keep the federal government funded through the end of the current fiscal year on September 30, helping avert a government shutdown this week. Data showing an expansion in Australia’s manufacturing sector also bolstered investor sentiment. The big four banks ended on a mixed note before the release of bank earnings during the week and the Federal budget due on May 9. Mining and Energy stocks closed broadly lower, with Rio Tinto, Fortescue Metals Group and Santos all retreating.
The Nikkei was up 0.6 percent and the Topix added 0.5 percent as the US dollar advanced in late Asian deals before Wednesday’s Federal Reserve meeting and the US employment report to be released on Friday. The second round of France’s presidential election will be held on May 7. Tokyo Electron surged to a six-year high after the company reported a 48 percent jump in net profit. NTT Data advanced after the systems integrator projected stronger revenue and profits for the year ended March. Fujitsu jumped to a two-year high after it projected a 64 percent net-profit increase for the current fiscal year.
Looking Forward
Japan posts April PMI composite. The Reserve Bank of Australia announces its monetary policy decision. April manufacturing PMIs will be released for China, India, France, Germany and Eurozone. Germany releases April unemployment and the Eurozone posts March unemployment rate.
Global Stock Markets
*Note — all releases are listed in local time.
Source: Fidelity
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