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Jul 9, 2018

Stocks making the biggest moves after hours: PCAR, WHD & more I Pre Market I CNBC

Stocks making the biggest moves after hours: PCAR, WHD & more

Miguel Pineda

Michael Nagle | Bloomberg | Getty Images
Check out the companies making headlines after the bell:
Shares of Paccar were up as much 2.5 percent in extended-hours trading, before pairing those gains. The truck manufacturing company announced a $300 million share repurchase of its outstanding common stock. Paccar's shareholders have seen an average return of 12.5 percent over the last 15 years, according to the company.
Cactus stock was down more than 4 percent in after-hours trading. The company, which designs and manufactures wellhead and pressure-control equipment, estimates that the revenue for last quarter will range between $136 million to $139 million. Cactus expects its net income to be within $40.6 million to $42.4 million.
Shares of Nordstrom were down nearly 1 percent in extended-hours trading. The department store chain announced that it will open two more smaller format stores with no inventory, called Nordstrom Local shops, in Los Angeles this fall. Some of the services at the smaller format stores include onsite tailoring and curbside pickup.
Marathon Oil stock was up nearly 2 percent in after-hours trading, before giving up most of its gains. The Houston, Texas based company has seen a 91 percent over the past 12 months.

Operator and Corporate Associate of Business Coaching Scheme Settle with FTC I FTC

Operator and Corporate Associate of Business Coaching Scheme Settle with FTC

An officer of the Digital Altitude scheme that falsely claimed it would enable people to earn substantial income online, and a company it used to process consumers’ credit card payments, are banned from selling business coaching programs and investment opportunities under settlements with the Federal Trade Commission.
According to the FTC, Digital Altitude falsely claimed its program would enable people to earn “six figures” in “ninety days or less.” It also promised to provide individualized coaching from successful marketers, who in fact were just salespeople selling higher membership levels. Most people never earned the promised income.
Consumers lost tens of millions of dollars to the scheme, including some individuals who lost more than $50,000.
Under the settlement orders, these defendants are also prohibited from credit card laundering, making misrepresentations about any product or service, profiting from consumers’ personal information collected as part of the scheme, and failing to dispose of it properly.
The judgment against Morgan Johnson imposes a $54 million judgment that will be suspended due to her inability to pay. The judgment against The Upside LLC imposes a $140,983 judgment that will be partially suspended when the company has surrendered a bank account.
Litigation continues against the remaining defendants.
The Commission vote approving the proposed stipulated final orders was 5-0. The U.S. District Court for the Central District of California entered the orders on July 6, 2018.
The Federal Trade Commission works to promote competition, and protect and educate consumers. You can learn more about consumer topics and file a consumer complaint online or by calling 1-877-FTC-HELP (382-4357). Like the FTC on Facebook (link is external), follow us on Twitter (link is external), read our blogs and subscribe to press releases for the latest FTC news and resources.

9 Bank Stocks That May Rise On Rich Payouts I Investopedia

9 Bank Stocks That May Rise On Rich Payouts

Matthew Johnston

Bank stocks have underperformed the S&P 500 this year and have struggled to stage any kind of a rebound after falling from their previous highs. Bullish investors say that disappointing performance will end soon. Many banks plan to boost dividends after passing the Federal Reserve’s latest stringent round of stress tests, and that could fuel a nice boost to share prices of a select number of U.S. financial firms. The Fed now is allowing many banks to return a greater portion of their earnings to shareholders, which is exactly what they are doing. Banks plan to increase dividends by 25% on average, says JPMorgan Chase & Co. analyst Vivek Juneja. This could push dividend yields to levels that greatly exceed the rest of the financial sector and the broader market, according to MarketWatch.
Nine banks whose planned dividend increases will bring their dividend yields to around 3.00% or higher include Huntington Bancshares Inc. (HBAN), KeyCorp (KEY), Wells Fargo & Co. (WFC), BB&T Corp. (BBT), Regions Financial Corp. (RF), Fifth Third Bancorp (FITB), JPMorgan Chase & Co. (JPM), SunTrust Banks Inc. (STI), and US Bancorp (USB).
 Stock/Index  Implied Dividend Yield
 Huntington Bancshares  3.76%
 KeyCorp  3.47%
 Wells Fargo  3.21%
 BB&T  3.20%
 Regions Financial  3.11%
 Fifth Third  3.06%
 JPMorgan  3.05%
 SunTrust  3.04%
 US Bancorp  2.98%
 SPDR Financial Select Sector ETF  1.69%
 S&P 500  1.94%
Source: MarketWatch; Data as of July 2

Dividend Boost

Although banks have received a stamp of approval following the Fed's stress tests, the increasing dividends, coming from both big and small banks alike, are a reflection of tax reform benefits and stronger capital ratios due to tepid loan growth, according to Juneja. With greater capital ratios, banks have more room to boost shareholder returns without hitting regulatory lending constraints.
As equity returns depend on both capital gains from stock price returns and on dividend income, a higher dividend yield increases the amount of return that doesn’t depend on stock price performance. Stocks with higher dividend yields represent a relatively cheap way to invest in a stable source of income.
With worries of being in the later stages of the economic cycle, not to mention the threat of trade wars, weighing on the overall market, dividends represent a more stable source of return as most companies try to maintain their payouts even in a recession. As investors turn to more defensive, dividend-paying stocks, this could also help to give these shares an added boost even in the case of a downturn. (To read more, see: US Stocks Face Grim Decade of Low Returns: Morningstar.)

Good Value

Bank stocks have also performed relatively poorly so far this year, which might suggest they are relatively undervalued compared to the rest of the market. The KBW Nasdaq Bank Index is down 0.1% since the beginning of the year, while the S&P 500 is up 4.0%.
According to a mathematical model built by Bespoke Investment Group macro strategist George Pearkes, which predicts bank stock prices by utilizing two-year Treasury yields and investment-grade bond spreads as model inputs, bank stocks are currently priced 9% below their fair values.
The earnings picture is also looking positive for the financial sector. Next to the energy sector, financials have the best near-term earnings outlook with 21% earnings per share (EPS) growth expected in the second quarter, 40% growth expected for the third quarter, and 28% growth expected for all of 2018, according to a report from Goldman Sachs.
On a more bearish note, Piper Jaffray chief market technician Craig Johnson says the technical outlook for the financial sector is “cloudy,” with the number of financial stocks advancing being outpaced by the number of those declining. As most financials are trading below their 200-day moving averages, it will take a really sustained boost to fuel more positive momentum. (To read more, see: Why Bank Stocks May Fall 8% Further.)
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Uber sets out to prove itself: What you need to Know I Financial Times (FT Video)

Foreign secretary resigns as Brexit tensions persist I CNBC

Foreign secretary resigns as Brexit tensions persist


British Foreign Secretary Boris Johnson resigned Monday, adding to divisions over Brexit that threaten to tear apart Prime Minister Theresa May’s government.
May’s office said in a terse statement that the prime minister had accepted Johnson’s resignation and would name a replacement soon.
Johnson, one of the best-known and most flamboyant members of the government, quit just hours after the resignation late Sunday of Brexit Secretary David Davis, the government’s top Brexit official.
Davis said he could not support May’s plan to maintain close trade and regulatory ties with the EU, which he said gave “too much away, too easily.”
There was no immediate statement from Johnson, another loud pro-Brexit voice within May’s divided government.
If Davis’s resignation rattled May, Johnson’s shook the foundations of her government.
The resignations came just days after May announced she had finally united her quarrelsome government behind her plan for a divorce deal with the EU.
Less than nine months remain until Britain leaves the bloc on March 29, 2019, and the EU has warned Britain repeatedly that time is running out to seal a divorce deal.
Britain and the EU hope to reach broad agreement by October so that EU national parliaments can ratify a deal before Britain leaves. That timetable looks increasingly optimistic, but European Commission spokesman Margaritis Schinas said the EU was available “available 24/7.”
Schinas said the bloc “will continue to negotiate in good will, bona fide, with Prime Minister Theresa May and the U.K. government negotiators in order to reach a deal.”
Steve Baker, a junior Brexit minister also resigned. May appointed staunchly pro-Brexit lawmaker Dominic Raab as the country’s new Brexit secretary.
Before Johnson quit, May’s official spokesman, James Slack, said Britain wanted to “move forward at pace” in the negotiations.
“There is now a new secretary of state and we look forward to moving on,” he said.
During a 12-hour meeting on Friday, May’s fractious Cabinet — including Davis — finally agreed on a plan for future trade ties with the EU.
The plan seeks to keep the U.K. and the EU in a free-trade zone for goods, and commits Britain to maintaining the same rules as the bloc for goods and agricultural products.
Some Brexit-supporting lawmakers are angry at the proposals, saying they will keep Britain tethered to the bloc and unable to change its rules to strike new trade deals around the world.
In a resignation letter, Davis said the “‘common rule book’ policy hands control of large swathes of our economy to the EU and is certainly not returning control of our laws in any real sense.”
Davis also said that May’s plan “would be a risk at least of delivering a poor outcome.”
His departure was hailed by pro-Brexit Conservative lawmakers, who have long considered May too prone to compromise with the EU. They believe the proposals breach several of the “red lines” the government has set out, including a commitment to leave the bloc’s tariff-free customs union.
Some euroskeptic lawmakers dream of replacing May with a staunch Brexiteer, such as Johnson, who in the past has disagreed publicly with his boss.
Davis said he did not want his resignation to become a rallying cry for May’s ouster.
“I like Theresa May, I think she’s a good prime minister,” Davis said.
Davis did not urge other ministers to resign, saying he was in a unique position because the Brexit secretary’s job is to sell the government’s policy.
“I’d have to deliver this. I’d have to do something I didn’t believe in,” he told the BBC. “That’s not a tenable position. ... Others don’t have that same responsibility.”
Under Conservative Party rules, a confidence vote in a leader can be triggered if 48 Conservative lawmakers request one.
But leading pro-Brexit legislator Jacob Rees-Mogg said “I don’t think a no-confidence vote is immediately in the offing.” He urged May to abandon her plans and take a tougher line with Brussels.
“Friday’s announcement was turning red lines into a white flag, and David Davis has made that so clear in his resignation letter,” Rees-Mogg said.

Prime Minister Theresa May is trying to save Brexit amid resignations

British Foreign Secretary Boris Johnson resigned Monday, adding to divisions over Brexit that threaten to tear apart Prime Minister Theresa May’s government. Johnson's resignation from the cabinet follows that of former Brexit minister David Davis. The resignations come just days after Prime Minister Theresa May secured a hard-won agreement from senior ministers on an EU exit strategy.

SEC I Litigation Release: SEC V: Charles Schawb & Co.

Charles Schwab & Co., Inc. (Release No. LR-24189; Jul. 9, 2018)

Litigation Release No. 24189 / July 9, 2018

Securities and Exchange Commission v. Charles Schwab & Co., Inc, Civil Action No. 18-cv-3942 (U.S. District Court for the Northern District of California July 2, 2018)

The Securities and Exchange Commission announced that Charles Schwab & Co., Inc., a registered broker-dealer, agreed to settle charges that it failed to file Suspicious Activity Reports (SARs) on the suspicious transactions of independent investment advisers that it terminated from using Schwab to custody their client accounts.
To help detect potential violations of the securities laws, the Bank Secrecy Act (BSA) requires broker-dealers to report suspicious transactions that occur through their firms. The SEC's complaint alleges that in 2012 and 2013, Schwab terminated 83 independent investment advisers for engaging in activity that Schwab determined violated its internal policies and presented risk to Schwab or its customers. The complaint further alleges that at least 47 of the terminated advisers engaged in transactions through Schwab that it knew, suspected, or had reason to suspect were suspicious and required the filing of a SAR. Schwab failed to file SARs on the suspicious transactions of 37 of these terminated advisers. Schwab failed to file SARs where it suspected or had reason to suspect that the terminated adviser had engaged in a range of suspicious transactions not involving the outright misappropriation or misuse of client funds, including: (1) transactions involving possible undisclosed self-dealing or conflicts of interest; (2) charging client accounts excessive advisory fees; (3) potentially fraudulent transactions in client accounts; (4) posing as a client to effect or confirms transactions in the client account; and (5) executing client trades and/or collecting advisory fees without being properly registered as an adviser. Moreover, Schwab failed to file SARs where it suspected or had reason to suspect that the terminated adviser had misused client funds but the client had not complained.
The SEC's complaint charges Schwab with violating Section 17(a) of the Securities Exchange Act of 1934 and Rule 17a-8 thereunder. Schwab has agreed to settle the action by consenting, without admitting or denying the allegations of the complaint, to the entry of a permanent injunction and the payment of a $2.8 million civil penalty.

Review: ‘The Billionaire Raj’ Offers Reasons for Optimism in India’s Gilded Age I Business I DealBook i NYT.

Review: ‘The Billionaire Raj’ Offers Reasons for Optimism in India’s Gilded Age

Book Entry
“The Billionaire Raj” is full of revealing vignettes from various corners of India’s diverse society and economy.CreditPenguin Random House
For close to a century leading up to its independence in 1947, India operated under a system of British governance known as the Raj, taken from a Sanskrit word meaning “kingdom” or “rule.” Then, more or less until the introduction of economic liberalization in 1991, the country stagnated under a planned economy whose overwhelming regulatory demands were described as the License Raj.
The title of the new book by James Crabtree, “The Billionaire Raj: A Journey Through India’s New Gilded Age,” suggests that India has now come under the grip of a new but no less troublesome regime. In a nation no longer at the mercy of imperial administrators and maharajahs or petty bureaucrats, “a new system has grown up,” and the emerging superrich are firmly in charge.
Mr. Crabtree, a former Mumbai bureau chief for The Financial Times, makes a compelling case for focusing on billionaires. In the mid-1990s, only two Indians made Forbes’s annual list of the world’s wealthiest. Twenty years later, there are over 100, behind only the United States, China and Russia. A World Bank economist recently found that the growth in wealth had been surpassed only by how quickly income inequality had increased. India now ranks above the United States, Brazil and even Russia. Only South Africa is less egalitarian.
Unfortunately, Mr. Crabtree does not fully profile the diverse community of Indian billionaires, who collectively own close to half a trillion dollars in assets. In fact, he devotes only the shortest of the book’s three sections to descriptions of individual billionaires. The more detailed and most entertaining of these are of the anachronistic Trump-like moguls who crave the spotlight, or the fallen moguls looking to redeem themselves and to settle scores.
Mr. Crabtree seems to have had limited direct access to more mainstream billionaires like India’s riches man, the Reliance Industries chairman Mukesh Ambani, whose story frames the overall narrative of the book. A firsthand description of the 2015 Reliance public shareholder meeting is not particularly revealing.
The failure of “The Billionaire Raj” to deliver on the promise of a comprehensive portrait of a newly minted cluster of billionaires who rule the world’s second most populous country does not mean the book is without interest. On the contrary, the book is chock-full of profoundly revealing vignettes from various corners of India’s endlessly diverse society and economy. Mr. Crabtree introduces us to local political fixers, national anticorruption crusaders and even India’s equivalent of Bill O’Reilly (complete with a demagogic catchphrase: ”The Nation Wants to Know!”). The chaotic and complex nation that emerges does not appear to be under the rule of billionaires or anyone else.
Two pervasive themes touch most of the assorted observations that fill “The Billionaire Raj”: the influence on the country of corruption and of Narendra Modi, India’s prime minister since 2014. On both of these topics, Mr. Crabtree seems deeply conflicted.
With respect to corruption, a distinction is made between the fleecing of public resources that underpinned the fortunes of many of the earliest Indian billionaires and an equally “grand but more orderly” form of corruption in which the spoils are used to fund social progress and encourage growth. The latter is treated sympathetically, although the lines between the many forms of corruption described are far from clear.
Mr. Modi has done much to reduce some of the most flagrant forms of corruption, but at the price of a disturbing increase in nationalism and a Trumpian authoritarian streak. Although Mr. Crabtree credits Mr. Modi with having “reset the balance of power between politics and business,” he concedes that “kickbacks still dominate swaths of public life.” Despite these and a variety of other concerns about the current regime, he concludes that Mr. Modi’s victory “rebuffed the notion that India itself had grown ungovernable, as if its turbulent democracy had become such a drag on its economy that it could not follow China’s rapid process of development.”
Although there may be cause for such optimism, I could not find it in the pages of “The Billionaire Raj.” Only 30 years ago, the economies of China and India were roughly the same size. China’s economy is now almost five times as large, and at India’s current growth rate, it would take decades for India to reach China’s current size.
As Mr. Crabtree’s narrative makes plain, the primary source of financial corruption — the immovable rot at the base of the Indian economy — is “the exorbitant and rapidly rising election costs for political parties, which has pushed them to raise huge quantities of illicit funds.” A candidate in a close parliamentary race must raise at least $1 million, a monumental sum that is largely unachievable without some illicit quid pro quo. It is hard not to conclude that India’s turbulent democracy poses a serious threat to its future development. If you want to feel better about our own problems in the face of the Supreme Court’s decision in Citizens United, read “The Billionaire Raj.”
Mr. Crabtree believes “there is no reason” that India’s current Gilded Age cannot “blossom into a Progressive Era of its own, in which the perils of inequality and crony capitalism are left decisively behind.” The nuanced portrait of contemporary India that he has provided may not support this level of confidence, but I can’t help but agree with Mr. Crabtree that “the world’s hopes for a more democratic, liberal future” very much depend on India’s “getting this transition right.”
Jonathan A. Knee is professor of professional practice at Columbia Business School and a senior adviser at Evercore Partners. His latest book is “Class Clowns: How the Smartest Investors Lost Billions in Education.”

Fox News lets President Trump lie on live television, for hours and hours I The Washington Post

Fox News lets President Trump lie on live television, for hours and hours

President Trump arrives at a rally in support of Rep. Kevin Cramer for Senate in Fargo, N.D., on June 27. (Kevin Lamarque/Reuters)
If you’ve tuned in to Fox News on the wrong night in recent weeks, you’ll see President Trump ad-libbing it before a crowd of approving red-hatters in some boisterous arena. It looks like some random night from the early months of the 2016 campaign — complete with the nonsensical and offensive remarks, the slams on the media and so on.
The debate about airing those rallies is pretty much the same, as well. “I am inside the machine looking out and wondering what the hell we’re all doing,” said editor at large Ezra Klein in a chat with Brian Stelter on CNN’s “Reliable Sources.” “So I do want to ask the question. One, what are we crowding out when we give these — when we let him decide what we cover every time he does a rally, right? What are we crowding out? What would have happened in another administration?”
The answer to that last question, as always: something far more normal.
Data from Media Matters — a chief critic of Fox News — reflects an imbalance among the top-three cable-news outlets in live coverage of recent Trump rallies:
Those dollar-value numbers are based on live rally coverage from April 28 through July 5, with Fox News tallying nearly eight hours, MSNBC eight minutes and CNN zero. What an inversion from two years ago: CNN provided so much live coverage of Trump rallies during the presidential campaign that it took heat for tipping the scales in his favor. The prolific live coverage prompted a mea culpa from CNN Worldwide President Jeff Zucker. “If we made any mistake last year, it’s that we probably did put too many of his campaign rallies in those early months and let them run,” Zucker said at Harvard in fall 2016.
That lesson has quite clearly gotten through to CNN producers, who won’t dare touch these rallies live — though the network, obviously, covers stuff that happens at these gatherings. Fox News has its reasons for the live focus, which the network articulated to the Associated Press: “The president makes news whenever he speaks, and in this nonstop news cycle, there are constant headlines for President Trump to react to.” Before recent rallies, noted Fox News to the AP, Supreme Court Justice Anthony M. Kennedy announced his retirement, and the president reversed course on the separation of migrant families at the southern border. To broaden the argument, Fox News covers Trump rallies because Trump is the president; what he says matters, even and especially when it’s meandering and repetitious pablum.
For most presidents, such a rationale might just work. In the case of Trump, though, it collapses under the stress of mendacity. The Post’s Fact Checker has observed an intensification of false and misleading claims from the president. As Washington correspondent for the Toronto Star Daniel Dale wrote on June 26: “The frequency of U.S. President Donald Trump’s dishonesty had steadily accelerated since late last year. Then, last week, it skyrocketed.” After just one rally in North Dakota, three PolitiFact researchers spent 1,300 words reviewing eight dubious Trump statements. The New York Times counted 18 inaccurate claims from the Montana rally last week. According to The Post, Trump clocked in with 35 false or misleading claims at a May rally in Nashville.
Poppycock at such a volume is simply too much for live television. It’s impossible to refute all the lies and misstatements as they’re uttered, and no one will stay tuned as anchors and correspondents plow through all the refutations after the fact. For some reason or other though, these considerations don’t appear too troublesome for the prime-time lineup at Fox News.
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Dollar retraces losses as sterling dives on Boris Johnson exit


Matt Cardy | Getty Images
The U.S. dollar recovered from a 3-1/2 week low on Monday as the pound dived following the announcement that UK Foreign Secretary Boris Johnson resigned from the government.
Sterling fell to a daily low of $1.3254 after Johnson quit in protest over Prime Minister Theresa May's plans to leave the European Union. His was the second resignation in a day, leaving the British leader's Brexit plans in tatters.
Johnson decided to walk just hours after May's Brexit minister, David Davis, did the same over her EU plans. The pound rose half a percent earlier in the European session as traders focused on the increased likelihood of a "soft Brexit" in which the UK and EU retain close trade ties. But the second exit provoked a risk-off response in the market.
The dollar index rose 0.05 percent against a basket of six major currencies to a daily high of 94.09. Other safe-haven currencies also benefited.
Against the pound, the Swiss franc strengthened to a daily low of 1.312. The sterling/Japanese yen cross rate also fell to a daily low of 146.56.
Earlier in the trading day, the dollar index had fallen 0.4 percent from Friday to 93.713, its lowest since June 14, after U.S. wages indicators disappointed dollar bulls while boosting risk appetite.
In spite of the dollar's recovery on the back of the pound, the Chinese yuan maintained its gains after it rebounded as investors bought riskier assets following favorable U.S. jobs data last week and evidence that global trade tension has not yet slowed economic momentum.
Friday's data showed average U.S. hourly earnings gained five cents, or 0.2 percent, in June after rising 0.3 percent in May. This suggested moderate inflation pressures, creating doubt that the Federal Reserve would raise interest rates a total of four times in 2018 .
Nonfarm payrolls rose by 213,000 in June, more than expected, the data showed.
Investors appear to be ignoring the worsening trade conflict between the United States and China after the two countries imposed tariffs on $34 billion worth of each others' goods on Friday
"There was nothing really surprising" in Friday's trade announcement, said Omer Eisner, chief market analyst at Commonwealth Foreign Exchange Inc. "Chinas response was measured and as a result I think weve seen the overall risk sentiment in markets improve."
The yuan rose more than half a percent in offshore markets to 6.6123 against the dollar, putting it on course for its biggest one-day rise in more than three months and further away from June's lows - its biggest-ever monthly decline.

Bonds I CNBC

trade drama lingers, auctions in focus

Alexandra Gibbs, Thomas Franck

U.S. government debt yields rose on the week's first day of trading as global fears surrounding trade paused after the United Kingdom reached a compromise with the European Union.
Investors likely wrapped up their assessment of the Department of Labor's June jobs report, which showed that the economy added 213,000 positions over the month.
The yield on the benchmark 10-year Treasury note was higher at 2.858 percent at 2:54 p.m. ET, while the yield on the 30-year Treasury bond was up at 2.964 percent. Bond yields move inversely to prices.
The U.K.’s Brexit Secretary David Davis announced late Sunday that he was resigning from his post, as he wasn’t prepared to be “a reluctant conscript” to Prime Minister Theresa May’s plans to leave the European Union (EU). May reached a Brexit compromise with her cabinet on Friday, persuading ministers to back her intention to press for “a free trade area for goods” with the EU.
British foreign minister Boris Johnson resigned later on Monday, the second high-profile departure from the pro-Brexit coalition.
The compromise appeared to give global markets a lift Monday as some on Wall Street viewed the U.K.'s decision as softer than expected, tempering lingering fears about a trade war between the United States and fellow economic powerhouse China.
The U.S. placed $34 billion of tariffs on Chinese goods on Friday, a move that triggered China to hit back with its own set of duties.
Washington's 25 percent duties affect products such as water boilers, X-ray machine components, airplane tires and various other industrial parts. China immediately responded with $34 billion in tariffs on U.S. goods, including soybeans, pork and electric vehicles. Beijing called it the "biggest trade war in economic history."
"I think the market has been in a trade-off over the past few weeks between strong economic data and trade worries," said Arthur Bass, managing director of fixed-income financing, futures and rates at Wedbush Securities. "What’s really been boosting the Treasury market is this whole fear of trade sanctions. We all studied the Smoot-Hawley tariffs in Econ 101 and the market has been feeling a little bit of uncertainty."
"While the economy is strong here is the U.S., it’s not as strong in Europe," he added, referencing the latest employment report from the Department of Labor.
Markets have been given a boost following the publication Friday of the latest jobs report, which revealed that the U.S. economy added 213,000 jobs in June, beating expectations. Along with June's upside surprise, the Bureau of Labor Statistics revised April's jobs numbers up to 175,000 from 159,000 and May's to 244,000 from 223,000, a total of 37,000 more than initially stated.
Though the unemployment rate ticked higher to 4 percent, the rise was likely due to a rise in the labor force participation rate, which increased 0.2 percentage points to 62.9 percent as 601,000 people re-joined the labor force.
On Monday, consumer credit data is due out at 3 p.m. ET.
In central banking news, Minneapolis Fed President Neel Kashkari is expected to appear at the two-day Homeownership in Indian Country: Creating the Opportunity for Choice conference in Prior Lake, Minnesota.

Federal REserve Board Consumer Credit G.19

Consumer Credit - G.19

Current Release
Release Dates
Historical Data
Technical Q&As
May 2018
Release Date*: July 9, 2018

In May, consumer credit increased at a seasonally adjusted annual rate of 7-1/2 percent. Revolving credit increased at an annual rate of 11-1/2 percent, while nonrevolving credit increased at an annual rate of 6-1/4 percent.

Consumer Credit Outstanding
Make Full Screen

Consumer Credit Outstanding 1
Seasonally adjusted. Billions of dollars except as noted.
Year Quarter Month
2017 2018
2013 2014 2015 2016r 2017r Q1r Q2r Q3r Q4r Q1r Marr Aprr Mayp
Total percent change (annual rate)2 6.0 7.2 7.1 6.7 5.1 5.1 4.5 3.9 6.7 3.3 2.7 3.2 7.6
Revolving 1.3 3.9 5.4 6.8 6.1 4.5 4.5 4.8 10.0 0.0 -1.2 1.3 11.4
Nonrevolving 3 7.9 8.4 7.7 6.7 4.8 5.3 4.4 3.6 5.5 4.6 4.2 3.9 6.2
Total flow (annual rate)2,4 175.1 221.2 234.4 230.0 187.3 185.8 164.6 145.5 253.3 127.8 105.4 123.3 294.7
Revolving 11.3 33.5 48.0 61.5 59.1 43.8 44.4 48.0 100.4 -0.3 -12.8 13.1 117.0
Nonrevolving 3 163.8 187.7 186.4 168.5 128.2 142.1 120.2 97.5 152.9 128.1 118.2 110.1 177.7
Total outstanding 3,093.4 3,314.6 3,413.6 3,643.7 3,831.0 3,690.1 3,731.3 3,767.6 3,831.0 3,862.9 3,862.9 3,873.2 3,897.7
Revolving 855.6 889.1 907.9 969.4 1,028.5 980.4 991.5 1,003.5 1,028.5 1,028.5 1,028.5 1,029.6 1,039.3
Nonrevolving 3 2,237.8 2,425.4 2,505.7 2,674.2 2,802.4 2,709.7 2,739.8 2,764.2 2,802.4 2,834.4 2,834.4 2,843.6 2,858.4

Terms of Credit
Not seasonally adjusted. Percent except as noted.
Commercial bank interest rates 5
New car loans
48-month 4.43 4.24 4.19 4.30 4.61 4.52 4.67 4.42 4.81 4.74 n.a. n.a. 5.05
60-month 4.46 4.25 4.20 4.14 4.33 4.21 4.24 4.36 4.51 4.75 n.a. n.a. 4.99
Credit card plans
All accounts 11.91 11.87 12.09 12.35 12.89 12.54 12.77 13.08 13.16 13.63 n.a. n.a. 14.14
Accounts assessed interest 12.95 13.19 13.66 13.56 14.44 13.86 14.00 14.89 14.99 15.32 n.a. n.a. 15.54
Personal loans
24-month 10.20 10.22 9.75 9.69 10.13 10.05 10.13 9.76 10.57 10.22 n.a. n.a. 10.31

Finance companies (new car loans)6
Interest rates 4.7 4.9 5.1 5.0 5.4 5.1 5.6 5.4 5.3 5.2 5.2 n.a. n.a.
Maturity (months) 63 64 65 66 67 67 67 67 67 66 66 n.a. n.a.
Amount financed (dollars) 25,586 26,288 27,472 28,601 29,288 29,134 28,569 29,154 30,295 30,472 30,472 n.a. n.a.

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Consumer Credit Outstanding (Levels) 1
(Billions of dollars)
Not seasonally adjusted
Year Quarter Month
2017 2018
2013 2014 2015 2016r 2017r Q1r Q2r Q3r Q4r Q1r Marr Aprr Mayp
Total 3,093.4 3,314.6 3,413.6 3,643.7 3,831.0 3,639.2 3,694.5 3,752.2 3,831.0 3,812.0 3,812.0 3,826.5 3,856.4

Major holders
Depository institutions 1,271.6 1,343.1 1,428.3 1,532.1 1,616.5 1,487.1 1,514.3 1,541.4 1,616.5 1,573.7 1,573.7 1,580.4 1,597.5
Finance companies 679.1 684.1 561.3 547.9 539.9 541.7 542.4 539.8 539.9 528.9 528.9 530.0 531.2
Credit unions 265.6 302.8 342.3 380.3 418.4 386.9 404.3 408.9 418.4 422.2 422.2 427.2 435.0
Federal government 7 735.5 846.2 949.7 1,049.3 1,145.6 1,087.0 1,098.3 1,133.6 1,145.6 1,181.6 1,181.6 1,183.6 1,187.7
Nonprofit and educational institutions 8 51.8 47.6 44.9 41.3 34.8 39.4 38.1 35.8 34.8 33.2 33.2 32.9 32.6
Nonfinancial business 40.6 40.9 41.1 42.8 41.8 41.6 41.9 42.1 41.8 40.7 40.7 40.8 40.9
Pools of securitized assets 9,10 49.1 49.8 46.0 50.0 33.9 55.5 55.4 50.6 33.9 31.7 31.7 31.6 31.6

Major types of credit, by holder
Revolving 855.6 889.1 907.9 969.4 1,028.5 930.0 955.0 969.3 1,028.5 978.1 978.1 983.0 999.3
Depository institutions 693.5 731.6 786.8 845.2 908.0 800.5 822.6 837.7 908.0 862.2 862.2 866.8 881.7
Finance companies 67.1 60.3 25.7 25.5 26.6 26.7 26.8 26.1 26.6 24.6 24.6 24.6 24.6
Credit unions 43.4 46.8 49.4 53.1 58.4 52.4 53.3 55.6 58.4 56.9 56.9 57.1 58.3
Federal government 7 ... ... ... ... ... ... ... ... ... ... ... ... ...
Nonprofit and educational institutions 8 ... ... ... ... ... ... ... ... ... ... ... ... ...
Nonfinancial business 21.1 21.6 22.4 23.1 22.2 21.9 22.2 22.3 22.2 21.1 21.1 21.1 21.3
Pools of securitized assets 9,10 30.5 28.9 23.5 22.5 13.4 28.5 30.1 27.7 13.4 13.4 13.4 13.4 13.4
Nonrevolving 2,237.8 2,425.4 2,505.7 2,674.2 2,802.4 2,709.2 2,739.6 2,782.9 2,802.4 2,833.9 2,833.9 2,843.5 2,857.1
Depository institutions 578.1 611.6 641.5 686.9 708.5 686.6 691.7 703.7 708.5 711.6 711.6 713.6 715.9
Finance companies 612.1 623.8 535.6 522.4 513.4 515.0 515.6 513.7 513.4 504.3 504.3 505.4 506.5
Credit unions 222.2 256.0 292.9 327.2 360.0 334.5 350.9 353.3 360.0 365.2 365.2 370.1 376.7
Federal government 7 735.5 846.2 949.7 1,049.3 1,145.6 1,087.0 1,098.3 1,133.6 1,145.6 1,181.6 1,181.6 1,183.6 1,187.7
Nonprofit and educational institutions 8 51.8 47.6 44.9 41.3 34.8 39.4 38.1 35.8 34.8 33.2 33.2 32.9 32.6
Nonfinancial business 19.5 19.4 18.6 19.7 19.7 19.7 19.6 19.8 19.7 19.7 19.7 19.7 19.6
Pools of securitized assets 9,10 18.6 20.9 22.5 27.5 20.5 27.0 25.3 22.9 20.5 18.3 18.3 18.2 18.1

Student Loans 11 1,145.6 1,236.3 1,320.1 1,407.9 1,490.6 1,443.2 1,448.2 1,480.1 1,490.6 1,524.0 1,524.0 n.a. n.a.
Motor Vehicle Loans 12 878.5 957.6 1,000.7 1,072.9 1,109.1 1,077.6 1,090.8 1,101.8 1,109.1 1,112.9 1,112.9 n.a. n.a.

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Consumer Credit Outstanding (Flows) 1
(Billions of dollars; annual rate)
Not seasonally adjusted
Year Quarter Month
2017 2018
2013 2014 2015 2016r 2017r Q1r Q2r Q3r Q4r Q1r Marr Aprr Mayp
Total 175.1 221.2 234.4 230.0 187.3 -17.7 221.2 230.5 315.2 -75.7 -68.7 173.2 358.9

Major holders
Depository institutions 52.9 71.5 100.2 103.8 84.4 -180.1 108.9 108.5 300.2 -171.0 -59.4 79.9 205.6
Finance companies -0.6 5.0 -2.4 -13.4 -7.9 -24.7 2.7 -10.5 0.7 -44.3 -60.4 13.2 14.3
Credit unions 21.9 37.2 39.5 38.0 38.1 26.5 69.5 18.5 37.9 15.2 31.2 60.2 93.4
Federal government 7 113.3 110.7 103.4 99.6 96.3 151.0 45.0 141.2 48.0 144.2 33.5 23.5 49.0
Nonprofit and educational institutions 8 -6.2 -4.2 -2.7 -3.6 -6.5 -7.6 -5.4 -9.1 -3.9 -6.4 -4.3 -3.5 -4.1
Nonfinancial business -5.3 0.3 0.1 1.7 -0.9 -4.7 1.1 0.9 -1.0 -4.5 -2.3 0.7 1.5
Pools of securitized assets 9,10 -0.8 0.6 -3.8 4.0 -16.1 21.9 -0.5 -18.9 -66.8 -9.1 -7.0 -0.8 -0.7

Major types of credit, by holder
Revolving 11.3 33.5 48.0 61.5 59.1 -157.7 99.8 57.4 237.0 -201.7 -78.6 58.6 195.1
Depository institutions 17.0 38.1 55.3 58.3 62.8 -178.6 88.3 60.6 281.1 -183.2 -68.0 55.8 178.1
Finance companies -4.3 -6.8 -5.4 -0.2 1.1 4.6 0.4 -2.8 2.1 -8.1 -8.0 0.4 0.7
Credit unions 4.5 3.4 2.6 3.6 5.3 -2.6 3.7 8.9 11.3 -5.9 -3.7 1.5 14.5
Federal government 7 ... ... ... ... ... ... ... ... ... ... ... ... ...
Nonprofit and educational institutions 8 ... ... ... ... ... ... ... ... ... ... ... ... ...
Nonfinancial business -5.2 0.4 0.9 0.7 -0.9 -4.7 1.2 0.2 -0.4 -4.5 -1.3 0.8 1.8
Pools of securitized assets 9,10 -0.7 -1.6 -5.4 -1.0 -9.1 23.7 6.3 -9.4 -57.2 0.0 2.4 0.0 0.0
Nonrevolving 163.8 187.7 186.4 168.5 128.2 140.0 121.4 173.1 78.2 126.0 9.9 114.6 163.8
Depository institutions 35.9 33.5 44.9 45.4 21.6 -1.5 20.7 47.9 19.1 12.2 8.6 24.1 27.5
Finance companies 3.6 11.7 2.9 -13.3 -9.0 -29.3 2.4 -7.7 -1.4 -36.1 -52.4 12.7 13.6
Credit unions 17.4 33.8 36.9 34.3 32.8 29.1 65.8 9.6 26.6 21.0 34.9 58.7 78.9
Federal government 7 113.3 110.7 103.4 99.6 96.3 151.0 45.0 141.2 48.0 144.2 33.5 23.5 49.0
Nonprofit and educational institutions 8 -6.2 -4.2 -2.7 -3.6 -6.5 -7.6 -5.4 -9.1 -3.9 -6.4 -4.3 -3.5 -4.1
Nonfinancial business -0.1 -0.1 -0.8 1.0 0.0 0.0 -0.2 0.7 -0.6 0.0 -1.1 -0.1 -0.3
Pools of securitized assets 9,10 -0.2 2.2 1.6 5.0 -6.9 -1.8 -6.9 -9.5 -9.5 -9.1 -9.4 -0.8 -0.7

Student Loans 11 91.0 90.7 83.9 87.8 82.7 141.3 20.0 127.5 41.8 133.9 133.9 n.a. n.a.
Motor Vehicle Loans 12 69.5 79.1 80.7 72.2 36.2 19.0 52.9 43.7 29.4 15.4 15.4 n.a. n.a.

*This release is generally issued on the fifth business day of each month. See the Statistical Release Schedule for more information.
Covers most credit extended to individuals, excluding loans secured by real estate.
The series for consumer credit outstanding and its components may contain breaks that result from discontinuities in source data. Percent changes are adjusted to exclude the effect of such breaks. In addition, percent changes are at a simple annual rate and are calculated from unrounded data.
Includes motor vehicle loans and all other loans not included in revolving credit, such as loans for mobile homes, education, boats, trailers, or vacations. These loans may be secured or unsecured.
Flow data represent changes in the level of credit due to economic and financial activity, and exclude breaks in the data series due to changes in methodology, source data, and other technical aspects of the estimation that could affect the level of credit.
Interest rates are annual percentage rates (APR) as specified by the Federal Reserve's Regulation Z. Interest rates for new-car loans and personal loans at commercial banks are simple unweighted averages of each bank's most common rate charged during the first calendar week of the middle month of each quarter. For credit card accounts, the rate for all accounts is the stated APR averaged across all credit card accounts at all reporting banks. The rate for accounts assessed interest is the annualized ratio of total finance charges at all reporting banks to the total average daily balances against which the finance charges were assessed (excludes accounts for which no finance charges were assessed).
Covers most of the captive and non-captive finance companies. The series of finance company new car loan terms included in previous releases are discontinued. They remain available from the Data Download Program.
Includes student loans originated by the Department of Education under the Federal Direct Loan Program and the Perkins Loan Program, as well as Federal Family Education Program loans that the government purchased under the Ensuring Continued Access to Student Loans Act.
Includes student loans originated under the Federal Family Education Loan Program and held by educational institutions and nonprofit organizations.
Outstanding balances of pools upon which securities have been issued; these balances are no longer carried on the balance sheets of the loan originators.
The shift of consumer credit from pools of securitized assets to other categories is largely due to financial institutions' implementation of the FAS 166/167 accounting rules.
Includes student loans originated under the Federal Family Education Loan Program and the Direct Loan Program; Perkins loans; and private student loans without government guarantees. This memo item includes loan balances that are not included in the nonrevolving credit balances. For additional information, see public documentation. Data for this memo item are released for each quarter-end month.
Includes motor vehicle loans owned and securitized by depository institutions, finance companies, credit unions, and nonfinancial business. Includes loans for passenger cars and other vehicles such as minivans, vans, sport-utility vehicles, pickup trucks, and similar light trucks for personal use. Loans for boats, motorcycles and recreational vehicles are not included. Data for this memo item are released for each quarter-end month.

r=revised. p=preliminary. n.a.=not available. ...=not applicable.

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Last Update: July 09, 2018

OIl Prices at Close Report In CNBC

Brent crude oil climbs on global demand, US sanctions on Iran


Oil pumpjacks in silhouette at sunset.
Oil pumpjacks in silhouette at sunset.
U.S. crude ended Monday's session little changed after trading lower throughout much of the day on news about the timeline for the end of a major Canadian production outage. Meanwhile, global benchmark Brent gained on looming sanctions on Iran and falling production in Libya.
U.S. West Texas Intermediate crude settled the day 5 cents higher at $73.85. Brent crude, the international benchmark for oil, was up $1.06, or 1.4 percent, at $78.17 a barrel by 2:30 p.m. ET.
An updated timeline on the restart of the Syncrude oil sands facility added a jolt of volatility into U.S. crude trading, said John Kilduff, partner at energy hedge fund Again Capital.
Brent, meanwhile, was well supported. The United States says it wants to reduce oil exports from Iran, the world's fifth-biggest producer, to zero by November, which would oblige other big producers to pump more.
"It's telling that the multinationals are taking this sanctions business very seriously and are preparing to pull out of Iran. That's really crystallizing the loss of production we're facing," said Kilduff.
In Canada, majority stakeholder Suncor said on Monday that some Syncrude production would come back online in July, sooner than expected. It will not resume full operations until September, however, which is later than expected.
The 360,000-barrel-per-day (bpd) facility in northern Alberta has been shut since late June, cutting oil flows into Cushing, Oklahoma, the delivery point for U.S. crude futures.
Stocks in Cushing rose slightly between Tuesday and Friday, according to market intelligence firm Genscape, according to analysts who saw the data. Cushing inventories hit a three-and-a-half-year low last week.
"Cushing is clearly screaming out for crude," said Virendra Chauhan, oil analyst at consultancy Energy Aspects.
The tightness at Cushing and the potential increase in Gulf exports "both have implications for how quickly the prompt overhang in the market can clear, and thus provide some direction for prices," Chauhan said.
The market has grown concerned that if the Saudis offset the losses from Iran, it will leave oil markets at risk of further production declines in countries like Venezuela and Libya.
"If the Saudis and others replace the losses from Iran, there will be basically no spare capacity left," Societe Generale oil analyst Michael Wittner said.
Saudi Arabia, fellow members of the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia agreed last month to increase output to dampen price gains and offset global production losses in countries including Libya.
Libyan oil output has halved in five months, falling to 527,000 barrels per day (bpd) from a high of 1.28 million bpd in February, the head of the National Oil Corporation, Mustafa Sanalla, said on Monday.
"Tomorrow it will be less and the day after tomorrow less again. And we are going lower," Sanalla said.
U.S. oil output is increasing but is unlikely to be able to fill the supply gap if U.S. sanctions are successful in blocking Iranian exports.
U.S. energy companies last week increased the number of rigs drilling for oil by five to 863, up 100 year-on-year, energy services firm Baker Hughes said on Friday. The U.S. rig count, an early indicator of future output, is much higher than a year ago as companies have ramped up production in response to higher prices.

Gold Prices at Close Report I CNBC.

Prices hit two-week peak on yuan rebound, weaker dollar


gold_bars_140.jpg Stockbyte
Gold rose on Monday, touching its highest in two weeks as the dollar weakened and the Chinese yuan recovered from June's lows, and gold stayed higher even as the dollar bounced up, as some investors bought bullion to cover short positions. Some traders noted that gold was still mired near lows hit in December.
Spot gold increased 0.37 percent to $1,258.86 per ounce. The session high of $1,265.87 was its highest since June 26. U.S. gold futures for August delivery settled up $3.80 at $1,259.60.
"Most likely the yuan will remain volatile but (I don't expect...) aggressive weakness, so that means the only thing that is driving gold at the moment is the dollar, which is somewhat weaker," said Georgette Boele, commodity strategist at ABN AMRO.
The yuan rose in offshore markets against the dollar, further off the lows hit in June when it notched its biggest ever monthly fall.
The U.S. dollar index weakened early and the euro gained, but the dollar bounced higher in later trading. A weak dollar makes greenback-denominated gold cheaper for holders of other currencies, especially in Europe when the euro rises.
The euro hit a session high after European Central Bank Governing Council member Ewald Nowotny said the bank could decide this month to end bond buying by the end of this year. Some investors had bought gold to cover their short positions, said OCBC analyst Barnabas Gan.
Additionally, Britain's Brexit Secretary David Davis said he resigned to try to stop Prime Minister Theresa May from handing too much power to the European Union.
"A little buying could've also come from the North Korea meeting that didn't exactly go great," said RJO Futures' Josh Graves.
Donald Trump raised concerns that Beijing may be seeking to derail North Korea denuclearization efforts, though said he was confident Pyongyang leader Kim Jong Un will uphold his end of the deal. Graves said Monday's gold price increase will likely be temporary.
"It's running into lows we saw in December--$1,275. Until we see some moves above there, I don't think gold has the strength to get (higher)," Graves said.
Meanwhile, silver rose 0.65 percent at $16.10 and platinum gained 0.83 percent at $847.50. Both metals earlier hit their highest since June 27. Palladium gained 0.68 percent to $959.50, reaching $967.50, its highest since June 21.

Stock Markets at Close Report I CNBC

Dow rallies more than 300 points as banks post best day since late March

Fred Imbert, Alexandra Gibbs

Stocks traded sharply higher on Monday as bank shares rose, while concerns over a trade war between the U.S. and key partners dissipated for the moment.
The Dow Jones Industrial Average rallied 319 points, with J.P. Morgan Chase and Caterpillar as the best-performing stocks in the index. The S&P 500 gained 0.8 percent, as financials climbed 2.3 percent. The Nasdaq composite advanced 0.7 percent as Amazon, Netflix and Apple all rose at least 1 percent.
Bank stocks rose at least 2.5 percent, led by Bank of America, Citigroup, Goldman Sachs and J.P. Morgan Chase. The SPDR S&P Bank ETF (KBE) rose 2.6 percent and was on track for its best day since March 26, when it gained 3.3 percent.
Equities also got a boost from a positive jobs report released on Friday, which revealed that the U.S. economy added 213,000 jobs in June, beating expectations. The report helped divert attention away from the ongoing trade war between the U.S. and its biggest partners.
Traders and financial professionals work ahead of the closing bell on the floor of the New York Stock Exchange (NYSE), June 25, 2018 in New York City.  Drew Angerer | Getty Images
Traders and financial professionals work ahead of the closing bell on the floor of the New York Stock Exchange (NYSE), June 25, 2018 in New York City. 
“The market can surprise you with what it’s focused on,” said Art Hogan, chief market strategist at B. Riley FBR. “Now we’re focused back on fundamentals.”
“If you can take focus away from the trade war, that’s a good thing,” Hogan said.
Last week, the U.S. slapped tariffs on $34 billion of Chinese goods. China responded to the tariffs by imposing its own retaliatory levies on imports from the States.
Trade-war fears have been simmering for months, keeping market gains in check as investors fret over the impact of tariffs on corporate profits.
Wall Street looked ahead to the start of the corporate earnings season, with Citigroup, J.P. Morgan Chase and Wells Fargo all scheduled to release their results from the previous quarter. S&P 500 earnings for the second quarter are expected to have grown 20 percent, according to a FactSet estimate.
"The fact that we're heading into the earnings season is a catalyst for stocks," said Randy Frederick, vice president of trading and derivatives at the Schwab Center for Financial Research. "We're expecting it to be strong and maybe even stronger than the previous one."
European stocks rose after United Kingdom Brexit Secretary David Davis and British Foreign Secretary Boris Johnson resigned. News of the two high-profile departures came quickly after Prime Minister Theresa May secured parliamentary support for a plan to maintain close trade and regulatory ties with the European Union.
The Stoxx 600 index, which tracks a broad swath of European equities, gained more than half a percent.