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Asian Markets at Close Report

European Markets at Close Report

May 30, 2017

Asia, Europe, and US Stock Markets' Closings Reports on May 30, 2017:

 ASIA

cnbc.com
 
Cheang Ming

Shares in Asia closed mixed on Tuesday, following a directionless session yesterday as major markets around the world were closed for various holidays.
The Nikkei 225 was mostly flat, closing 0.02 percent or 4.72 lower at 19,677.85, while the S&P/ASX 200 reversed earlier losses to finish the session in the green. The ASX closed 0.19 percent or 10.828 points higher at 5,717.9.
South Korea's benchmark Kospi index dipped 0.39 percent or 9.29 points to close at 2,343.68, pulling back from record highs.
Markets in Hong Kong and China are closed today for a public holiday. Stateside, markets in the U.S. were closed on Monday for Memorial Day.



 

NIKKEI NIKKEI 19677.85
-4.72 -0.02%
HSI HSI 25701.63
62.36 0.24%
ASX 200 S&P/ASX 200 5717.89
---
UNCH 0%
SHANGHAI Shanghai 3110.16
2.33 0.08%
KOSPI KOSPI Index 2343.68
---
UNCH 0%
CNBC 100 CNBC 100 ASIA IDX 7577.33
6.58 0.09%
Toshiba shares close 0.57 percent lower at 260.8 yen a stock. This followed news that Western Digital could join a consortium involving a Japanese state-backed fund and KKR & Co. Western Digital had initially sought to block the sale of Toshiba's chip unit.
Shares of the Kuala Lumpur-listed Genting rose 1.5 percent after it reported first quarter earnings of 603 million Malaysian ringgit ($141 million) compared to 131 million ringgit a year ago.
Meanwhile, casino operator Genting Malaysia reported that profits in the first quarter had doubled on year. Despite that, shares of the company tumbled more than 5 percent.
In economic news, Japan household spending dipped 1.4 percent for the month of April, weaker than the 0.7 percent forecast. Meanwhile, April retail sales rose 3.2 percent on year, compared to a forecast of a 2.3 percent rise, Reuters said.
The dollar/yen, which traded around 111.21 before the release of data, traded at 111.18 following the news. The yen later strengthened further to trade at 110.89 at 2:05 p.m. HK/SIN.
In other currency news, the dollar traded mostly flat against a basket of six rival currencies at 97.707. The greenback hit a near six and a half month low last week.
The British pound traded close to levels seen last Friday on news that U.K. Prime Minister Theresa May's lead had narrowed ahead of an election next week. With U.K. markets closed yesterday for a bank holiday, the pound last traded at $1.2804.
Meanwhile, the euro edged down to trade at $1.1119 against the dollar. This followed headlines about the Greek bailout and comments made by European Central Bank (ECB) President Mario Draghi while addressing the European Parliament yesterday.
In his speech, Draghi acknowledged growth in the euro zone but said "an extraordinary amount of monetary policy support" remained "necessary."
"It's now only a week out from the ECB meeting and you can't get much clearer than that. The ECB will then unveil its new inflation forecasts; an about turn from the ECB signalling a winding down of QE would be a big surprise to the market," National Australia Bank Senior Economist David de Garis wrote in a note.
Oil prices were mixed after ending the last session cautiously higher following reports of U.S. drillers adding rigs. Brent crude shed 0.27 percent to trade at $52.15 a barrel while U.S. West Texas International (WTI) crude added 0.06 percent to trade at $49.83.
Correction: This article has been updated to accurately reflect the changes in the dollar, the euro, the yen and the pound.
EUROPE 

Europe markets close lower as political concerns weigh

Alexandra Gibbs, Silvia Amaro, Sam Meredith

European bourses closed lower on Tuesday amid investor concerns over the likelihood of a potential snap election in Italy.



 


FTSE FTSE 7526.51
-21.12 -0.28% 760553016
DAX DAX 12598.68
-30.27 -0.24% 74543658
CAC CAC 5305.94
-26.53 -0.50% 80542701
IBEX 35 IBEX 35 Idx 10876.90
-7.10 -0.07% 217854308
The pan-European Stoxx 600 ended down 0.19 percent with most sectors and major bourses in negative territory. The FTSE 100 closed 0.28 percent lower on Tuesday. While the German DAX and French CAC 40 slipped down 0.24 and 0.5 percent respectively.
Banking stocks were among the worst-performing sectors following remarks by ECB (European Central Bank) President Mario Draghi and a Deutsche Bank research note. Both stated that European banks no longer had support from a valuation perspective, and growth in the euro area is set to fade.
Specifically, Italian banks were under pressure as concerns over an upcoming election intensified. Banco Bpm led the losses in this sector as its shares contracted more than 2.3 percent.
The telecoms sector was also moving below the flatline. Proximus dropped more than 2 percent following a downgrade by Raymond James.
Looking at individual stocks, International Airlines Group fell nearly 2.5 percent. This is after an IT crash at British Airways disrupted flights over the bank holiday weekend.
Elsewhere, Akzo Nobel dropped almost 2 percent after a Dutch court supported the firm's dispute with Elliott Management. The U.S. firm is said to be disappointed and considering its "next steps".
Meanwhile, in the U.S., the Dow Jones industrial average and broader S&P 500 index both continued trading slightly lower as investors assessed a slew of fresh economic data after a holiday weekend.

Politics and data

The euro was under pressure after Draghi signaled Monday that it is still too early to consider ending monetary stimulus. Furthermore, Greece's finance minister said Monday that its creditors have to reach an agreement on debt relief measures at a meeting next month, to support the nation's return to bond markets; Reuters reported.
Meanwhile, former Italian Prime Minister Matteo Renzi said over the weekend that it seemed appropriate – from a European point of view – for the nation to hold its next election at the same time as Germany, with the latter set to take place in September 2017.

What would you buy for $1,000?

Total Votes:
Not a Scientific Survey. Results may not total 100% due to rounding.
On Monday, British Prime Minister Theresa May and opposition leader Jeremy Corbyn outlined their proposals on a Brexit deal, with May reiterating comments that no deal with the EU is better than a bad deal, while Corbyn ensured a deal would happen if Labour won the election.
In terms of data, euro zone businesses seemed less upbeat about the outlook for their companies in May, despite the outcome of the French election. The European Commission's economic sentiment indicator dropped to 109.2 in May from 109.7 in April.

U.S. 

Stocks close lower as S&P and Nasdaq snap 7-day winning streak

Fred Imbert

U.S. equities closed lower on Tuesday as investors digested key economic data, but a rise in tech stocks helped cap losses.
The Dow Jones industrial average fell about 50 points, with Goldman Sachs contributing the most losses.
The Nasdaq composite traded 0.1 percent despite shares of Amazon breaking above $1,000 for the first time. The S&P 500 slipped 0.1, with energy leading decliners, but the information technology sector rose 0.31 percent. Tech has been on fire this year, rising around 20 percent. Nevertheless, the Nasdaq and S&P snapped a seven-day winning streak.
"The large tech outperformance is a trend I wouldn't fight right now," said Mark Heppenstall, CIO at Penn Mutual Asset Management, but noted, "there's a lot of good news priced into these stocks."
U.S. stock markets were closed Monday because of the Memorial Day holiday.
Personal income rose 0.4 percent in April, in line with expectations, and consumer spending increased by 0.4 percent. The personal consumption expenditures price index, the Federal Reserve's preferred measure of inflation, rose 0.2 percent.
"The series stubbornly has not risen to anywhere near the FOMC's preferred level of inflation. Despite ostensibly failing to satisfy half of its Dual Mandate, the central bank will have few problems progressing down the path to normalization," said Jeremy Klein, chief market strategist at FBN Securities.
Meanwhile, U.S. home prices rose 5.8 percent in March, according to the S&P/Case-Shiller U.S. National Home Price Index.
NYSE Traders on the floor.
Andrew Renneisen | Getty Images
NYSE Traders on the floor.
Other data released Tuesday include consumer confidence reading for May, which came in at 117.9, slightly below a consensus estimate of 119.
"The economic data support the narrative that we have a solid fundamental backdrop," said Art Hogan, chief market strategist at Wunderlich Securities. "What we need here is progress on the [Trump] agenda."
President Donald Trump returned from his first trip overseas to deal with the fallout from reports that Jared Kushner, his son-in-law and a top adviser, discussed the potential to set up a "secret and secure communications channel" between the Trump transition team and the Kremlin.
Stocks came into Tuesday's session having posted strong gains in the previous week. Those gains propelled the S&P and Nasdaq indexes to record levels.
"What's driving the market here is the fact that interest rates have been so low lately," said Bruce Bittles, chief investment strategist at Baird. "Everyone thought interest rates were going up but the opposite has happened."
The benchmark 10-year note yield began 2017 trading near 2.5 percent but hovered near 2.22 percent on Tuesday.
Dallas Fed President Robert Kaplan told CNBC on Tuesday he sees U.S. growth to remain near 2 percent and not the 3 percent or more forecast by President Donald Trump's administration.
"Two things drive GDP: growth in the labor force and growth in productivity," he said in a live interview on "Squawk Box." "The problem is labor force growth is very sluggish. And my own judgment and our economists at the Dallas Fed think it's going to continue to be sluggish the next 10 years because the population is aging and labor force growth therefore is slowing."



 

DJIA Dow Industrials 21029.47
-50.81 -0.24%
S&P 500 S&P 500 Index 2412.91
-2.91 -0.12%
NASDAQ NASDAQ Composite 6203.19
-7.01 -0.11%
The Dow Jones industrial average fell 50.81 points, or 0.24 percent, to close at 21,029.47, with Goldman Sachs leading decliners and Verizon outperforming.
The S&P 500 slipped 2.91 points, or 0.12 percent, to end at 2,412.91, with energy leading seven sectors lower and telecommunications the biggest advancer.
The Nasdaq declined 7 points, or 0.11 percent, to close at 6,203.19.
About nine stocks declined for every five advancers at the New York Stock Exchange, with an exchange volume of 770.36 million and a composite volume of 3.186 billion at the close.
The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded near 10.4.
—CNBC's Jeff Cox contributed to this report.
On tap this week:
What to Watch
Wednesday
Earnings: Michael Kors, J. Jill, Hewlett Packard Enterprises, Palo Alto Networks, Box, Vera Bradley, Analog Devices
8:00 a.m. Dallas Fed President Rob Kaplan
9:45 a.m. Chicago PMI
10:00 a.m. Pending home sales
2:00 p.m. Beige book
7:30 p.m. San Francisco Fed President John Williams
Thursday
May vehicle sales
Earnings: Dollar General, Lululemon Athletica, VMWare, Broadcom, Workday, Five Below, Yext, Cooper Cos, Express, Ciena, Mobileye
8:15 a.m. ADP employment
8:30 a.m. Initial claims
8:30 a.m. Productivity and costs
9:45 a.m. Manufacturing PMI
10:00 a.m. ISM manufacturing
10:00 a.m. Construction spending
Friday
Earnings: Hovnanian
8:30 a.m. Employment
8:30 a.m. International trade