On 05 June, 2017 – Investors were cautious to begin the new trading week
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On 05 June, 2017 – Investors were cautious to begin the new trading week

June 6, 2017
|In Global Round Ups
|By Jesmond Mizzi Financial Advisors

Globally stocks were mostly steady after the weekend attack in the UK and geopolitical tensions in the Middle East
United States
Stocks slipped Monday as a drop in Apple partly offset gains in energy and financial shares. The Dow Jones industrials and the S&P inched down 0.1 percent while the Nasdaq lost 0.2 percent. Oil prices tumbled after initially climbing as concerns about the break between Qatar and some of its closest neighbors surfaced. Oil fell on concerns that Saudi Arabia cutting off ties with Qatar over its alleged support of extremist views inside Islam could hamper a global deal to reduce oil production.
One of the biggest drags was Apple, whose new product releases — including a new “HomePod” wireless speaker — did little to reverse its loss on the day. Alphabet however, managed to end the day above the $1,000-a-share mark it crossed for the first time earlier on Monday. Travel and leisure shares lost ground after a terror attack in London late Saturday. Royal Caribbean Cruises and Wynn Resorts declined along with Host Hotels & Resorts. Energy stocks advanced despite a decline in crude prices. Biotechnology stocks came under considerable selling pressure. Newlink Genetics, Juno Therapeutics and XBiotech retreated.
April factory orders were down 0.2 percent. Excluding transportation, orders managed to edge up 0.1 percent. April’s shipments of core capital goods, which are an input into second-quarter GDP, also were only 0.1 percent higher. The May ISM nonmanufacturing index reading declined to 56.9 from 57.5 in April.
These data reflect observations at 4:00 PM US ET. Gold at the afternoon London fixing was up US$5.00 to US$1,279.95. Copper futures were down 0.6 percent to US$2.56. WTI spot crude was down 26 US cents to US$47.40. Dated Brent spot crude was down 47 US cents to US$49.48. The US dollar was up against the yen, euro and the Swiss franc. The currency declined against the pound and the Canadian and Australian dollars. The Dollar Index was virtually unchanged. The yield on US Treasury 30 year bond was up 3 basis points to 2.84 percent while the yield on the 10 year note was up 2 basis points to 2.18 percent.
Europe
European shares retreated Monday — investors were cautious following the latest terrorist attack in London over the weekend and Thursday’s UK general election. Both the DAX and the SMI were closed for holidays. The FTSE was down 0.3 percent and the CAC was 0.7 percent lower.
Vodafone gained after signing a new partnership with network operator LG Uplus to extend its reach through South Korea. Ocado was down after the online grocer signed a technology licensing deal with an unnamed European retailer. Royal Mail advanced after it said it is selling two of the seven plots on its Nine Elms site to a US entity for £101 million in cash. Banco Popular Español sank in Madrid, to extend last week’s losses on solvency concerns. British Airways parent International Consolidated Airlines Group and easyJet declined.
Eurozone private sector growth continued to run at the fastest pace in six years in May as the composite PMI reading was 56.8. At the same time, the services PMI slipped marginally to 56.3 in May from 56.4 a month ago. The UK service sector activity growth declined to 53.8 in May from 55.8 in April.
Asia Pacific
Asian stocks were mostly lower Monday after the US employment report failed to meet expectations and another terrorist attack struck the United Kingdom. Oil prices rose in Asian deals and a private survey showed that activity in China’s service sector expanded at a faster pace in May, helping to cap regional losses. The headline PMI rose to 52.8 from 51.5 in April.
The Shanghai Composite declined 0.4 percent with financials and healthcare stocks leading losses, after the China Securities Regulatory Commission allowed four companies to raise up to 1.5 billion yuan via initial public offerings. The Hang Seng lost 0.2 percent.
The Nikkei was down 6.46 points while the Topix was down 0.1 percent. The May services PMI reading expanded at a faster rate — 53.0, up from 52.2 in April. Automakers Honda Motor and Toyota Motor declined along with banks Mitsubishi UFJ Financial, Sumitomo Mitsui Financial and Mizuho Financial. Kanamoto was up after the rental company upwardly revised its operating forecast.
The S&P/ASX was down 0.6 percent and the All Ordinaries lost 0.5 percent as investors reacted negatively to the US employment report. The day’s economic reports on Australian job advertisements, service sector activity and job advertisements proved to be a mixed bag. The big four banks declined while miners Rio Tinto and BHP Billiton retreated. Gold miners Evolution Mining and Northern Star climbed as gold held steady after hitting its highest level in over six weeks.
The Kospi edged down 0.1 percent while the Sensex added 0.1 percent. Investors were cautious prior to the Reserve Bank of India’s policy announcement mid-week.
Looking forward
The Reserve Bank of Australia announces its monetary policy decision. The Eurozone releases April retail sales. In the US, April JOLTS will be released.

Global Stock Markets

*Note — all releases are listed in local time.

Source: Fidelity

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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]