Most global stock indices advanced Monday as trade and geopolitical fears eased

Most global stock indices advanced Monday as trade and geopolitical fears eased

US shares followed European and Asian upward helped by gains in technology stocks. The Dow Jones industrials and Nasdaq were up 0.7 percent while the S&P added 0.5 percent. Nasdaq reached a new record closing high. In addition to a calming of trade fears, investors were still absorbing Friday’s better than anticipated employment report.

US markets

US shares followed European and Asian upward helped by gains in technology stocks. The Dow Jones industrials and Nasdaq were up 0.7 percent while the S&P added 0.5 percent. Nasdaq reached a new record closing high. In addition to a calming of trade fears, investors were still absorbing Friday’s better than anticipated employment report.

Apple and Microsoft boosted technology stocks after the iPhone maker kicked off its annual developers’ conference and the Windows software maker announced an acquisition. Apple unveiled its latest operating system iOS 12 at the conference. Microsoft's $7.5 billion deal to buy privately held coding website GitHub also sent shares higher. Boeing rose after the plane maker said it would partner with French aerospace firm Safran SA to make and service aircraft parts.

Nektar Therapeutics retreated after mixed results from its experimental cancer drug with Bristol-Myers Squibb's Opdivo disappointed investors. Bristol-Myers Squibb was lower. Merck, however, gained after latest data showed its cancer drug Keytruda improved survival as a stand-alone treatment for a type of lung cancer.

April factory orders were down a monthly 0.8 percent. Durables tumbled 1.6 percent while nondurables edged 0.1 percent higher.

These data reflect observations at 4:00 PM US ET. Gold was down US$3.40 to US$1,295.90. Copper futures were up 1.29 percent to US$3.14. WTI spot crude was down 94 US cents to US$64.87. Dated Brent spot crude was down US$1.46 to US$75.33. The US dollar was up against the yen and pound and was virtually unchanged against the Swiss franc. The currency was down against the euro and the Canadian and Australian dollars. The Dollar Index was down 0.1 percent. The yields on both the US Treasury 30 year bond and 10 Year note were up 4 basis points to 3.09 percent and 2.94 percent respectively.

European markets

Most European stock indices advanced Monday. The prospect of some M&A activity and the continued easing of political tensions in Italy and Spain put investors in an upbeat mood Monday. The FTSE was up 0.5 percent, the CAC edged up 0.1 percent, the DAX added 0.4 percent and the SMI was 0.2 percent higher.

Accor sank after confirming that it had an interest in buying a minority stake in Air France-KLM. Air France-KLM advanced. DS Smith rallied after it announced the proposed acquisition of Papeles y Cartones de Europa, known as Europac, a Western European integrated packaging business. Lender CYBG gained after it launched a revised offer to buy challenger bank Virgin Money.

Richemont advanced in Zurich. The luxury goods group said that it has completed the sale of its wholly-owned subsidiary, Lancel, a French luxury leather goods company, to Piquadro, an Italian leather goods group. Novartis was unchanged after announcing positive results from the third Phase III trial of Kisqali. UniCredit declined in Milan — according to the Financial Times, the bank is considering a merger with France's Société Générale. In Zurich, bank stocks including Julius Baer, UBS and Crédit Suisse all advanced.

Eurozone investor sentiment deteriorated sharply in June largely reflecting political uncertainties in Italy according to survey data from Sentix. The investor confidence index slid to 9.3 in June from 19.2 in May — the lowest score since October 2016. Eurozone April producer prices climbed 2 percent on the year after increasing 2.1 percent in March. UK construction PMI reading was unchanged at 52.5 in May.

Asia Pacific Markets

Most Asian stocks were higher Monday as upbeat manufacturing and jobs data from the US bolstered optimism in the US economy and US President Donald Trump revealed that his summit with North Korean leader Kim Jong Un is back on.

The Shanghai Composite was up 0.5 percent even though trade worries persisted. China warned that it will withdraw from commitments made so far on trade if the US president carries out his threat to impose tariffs on the Asian country. The Hang Seng jumped 1.7 percent.

The Nikkei and Topix added 1.4 percent and 1.5 percent respectively thanks to a weaker yen and solid US data buoying investor sentiment. Automaker Toyota rallied on a brokerage upgrade and Honda Motor and Nissan Motor advanced. Nintendo tumbled to post its biggest two-day loss in 18 months. Tech shares Tokyo Electron and TDK Corp climbed.

Australian shares hit their highest level in 10 days, with mining stocks and financials leading the rally as base metal prices strengthened and Commonwealth Bank agreed to settle a civil lawsuit. The S&P/ASX and All Ordinaries were both up 0.6 percent. Investors also cheered encouraging local economic data. Australian retail sales rose a monthly 0.4 percent in April. Company operating profits in the country grew 5.9 percent in the first three months of 2018 after a 2.2 percent gain in the three months prior. Miners BHP Billiton, Fortescue Metals Group and Rio Tinto rose, helped by a rally in base metal prices on Friday night.

The Kospi was up 0.4 percent thanks to better than anticipated US employment data along with revived hopes for the US/North Korea summit on June 12 as originally scheduled. The Sensex tumbled 0.6 percent, dragged down by banking and realty stocks as investors awaited the Reserve Bank of India's monetary policy announcement.

Looking forward

Japan posts April household spending and May composite PMI. China releases May general services PMI. The Reserve Bank of Australia announces its monetary policy decision. India and the UK release May composite PMI. Germany, Franc and the Eurozone release composite PMIs. The Eurozone posts April retail sales. The US reports May ISM nonmanufacturing and PMI services indices. The US also releases April JOLTS.

 

Global Stock Markets

    End 2018 Daily Percent Change
  Index 2017 June 1 June 4 Change Daily 2018 Yr/Yr
North America                
United States Dow 24719.22 24635.21 24813.69 178.48 0.7 0.4 17.1
  NASDAQ 6903.39 7554.33 7606.46 52.13 0.7 10.2 20.8
  S&P 500 2673.61 2734.62 2746.87 12.25 0.4 2.7 12.8
Canada S&P/TSX Comp 16209.13 16043.54 16052.24 8.70 0.1 -1.0 4.2
                 
Europe                
UK FTSE 100 7687.77 7701.77 7741.29 39.52 0.5 0.7 2.9
France CAC 5312.56 5465.53 5472.91 7.38 0.1 3.0 3.1
Germany XETRA DAX 12917.64 12724.27 12770.75 46.48 0.4 -1.1 n.a.
Italy MIB 21853.34 22109.55 22009.95 -99.60 -0.5 0.7 6.2
Spain Ibex 35 10043.90 9632.40 9750.30 117.90 1.2 -2.9 -10.4
Sweden OMX Stockholm 30 1576.94 1569.51 1564.73 -4.78 -0.3 -0.8 -4.5
Switzerland SMI 9381.87 8618.54 8634.42 15.88 0.2 -8.0 n.a.
                 
Asia/Pacific                
Australia All Ordinaries 6167.29 6104.04 6138.60 34.56 0.6 -0.5 6.0
Japan Nikkei 225 22764.94 22171.35 22475.94 304.59 1.4 -1.3 11.4
  Topix 1817.56 1749.17 1774.69 25.52 1.5 -2.4 10.2
Hong Kong Hang Seng 29919.15 30492.91 30997.98 505.07 1.7 3.6 19.9
S. Korea Kospi 2467.49 2438.96 2447.76 8.80 0.4 -0.8 3.3
Singapore STI 3402.92 3427.51 3467.48 39.97 1.2 1.9 7.1
China Shanghai Comp 3307.17 3075.14 3091.19 16.05 0.5 -6.5 0.0
Taiwan TAIEX 10642.86 10949.08 11109.50 160.42 1.5 4.4 8.6
India Sensex 30 34056.83 35227.26 35011.89 -215.37 -0.6 2.8 11.8

Data Source — Haver Analytics

Bond markets

10-Yr Govt BondsClosing YieldChange Yield (bp)
US 2.94% 4
UK 1.29% 2
Germany 0.41% 4
Japan 0.04% 0
Australia 2.73% 3

Source — Bloomberg

Currencies and commodities

CurrencyJune 1June 4Change (%)
Japanese yen 109.5700 109.8200 -0.2%
Australian dollar 0.7568 0.7649 1.1%
Yuan 6.4204 6.4080 0.2%
Euro 1.1655 1.1696 0.4%
British pound 1.3346 1.3314 -0.2%
Swiss franc 0.9884 0.9884 0.0%
Canadian dollar 0.7714 0.7733 0.2%

Source — Bloomberg 

CommoditiesJune 4Change
Brent Spot $75.66 -1.90%
Gold $1,295.80 ($3.50)
Thompson-Reuters/ Jeffreys Commodity index 203.50 -1.40%

Source — Bloomberg 

You may also be interested in

Stocks were mostly lower as trade worries heightened once again

US stocks declined Thursday after earnings disappointed and trade jitters intensified on fears that the European Union could slap retaliatory tariffs on goods imported from the United States. Officials from the EU Trade Commission are said to be preparing a list of tit-for-tat trade actions in response to proposed US tariffs on EU cars ahead of next week's talks in Washington. The Dow Jones industrials declined 0.5 percent while the S&P and Nasdaq retreated 0.4 percent.

Global stocks were mixed as investors absorbed the latest testimony from the Fed chair

US stocks edged higher Wednesday as financial and industrial companies climbed thanks to strong second-quarter reports. The Dow Jones industrials were up 0.3 percent, the S&P gained 0.2 percent and the Nasdaq lost 0.68 point.