S&P 500 Index
US stocks rose slightly on Friday on upbeat consumer confidence data. The Thomson Reuters/University of Michigan consumer sentiment index jumped to a three-month high of 73.6 in August. Strong earnings reports from the retail sector as well as signs of recovery of the US real estate market spurred rally of the US equities. The S&P 500 Index added 0.19% to end the week at 1,418.16. A half of the industries included in the index climbed. Technology shares posted the biggest gains. Apple rose almost 2% to hit all-time high of USD648.11 after Jefferies raised its target stock price to USD900 and reiterated a ‘buy’ rating. Corning and Cisco Systems followed Apple’s trend, rising by 2.04% and 0.21%. Meanwhile, retailers were also strong, with Gap climbing 4.80%. On Friday, the firm reported a 29% increase in profits and raised its income outlook. At the same time, health care industry dragged the index lower. Pfizer and Merck & Co dropped 0.96% and 1.37%.
Dow Jones Industrial Average Index
The Dow Jones Industrial Average Index gained 0.19% to end the week at 13,275.20. Positive consumer confidence data and signs of recovery from the US property market boosted market sentiment. Optimism over the Eurozone’s debt crisis after Angela Merkel’s comments also added to gains of the US blue chips index. Four in nine sectors included in the index jumped. The top-gainers were industrials and financials. 3M, Caterpillar and Boeing advanced by 0.53%, 1.60% and 0.37%, respectively. Among financials, Bank of America and American Express surged 0.88% and 0.38%. At the same time, health care and oil and gas sectors were the weakest within the index. Johnson & Johnson, Merck & Co and Pfizer dropped by 0.59%, 1.37% and 0.96%, respectively. Exxon Mobil and Chevron tumbled 0.30% and 0.58% on speculation that US may release oil reserves to insure success of Iran sanctions.
Nikkei 225 Index
Japanese stocks climbed on Monday amid rising optimism over the Eurozone’s and US economies. However, speculation that China will not ease its monetary policy on alarming signs from its property market capped the upswing. New home prices jumped in 50 out of 70 big and medium China’s cities in July. The Nikkei 225 Index gained 0.10% to trade at 9,171.16. Seven out of ten industries within the index posted gains. Health care and telecommunications were the top-performers. Astellas Pharma, Daiichi Sankyo and Eisai Co soared 0.52%, 0.52% and 0.41%, respectively. Among telecommunications, KDDI added 0.53% whereas Nippon Telegraph & Telephone slid 0.79%. Oil and gas companies as well as financial institutions weighted down on the Japanese stock index. Inpex and JX Holdings sank 2.26% and 1.92% while Chiba Bank and Mizuho Financial moved lower by 0.63% and 0.76%.
Hang Seng Index
The Hang Seng Index inched down by 0.06% to close at 20,104.27 on Monday amid concerns that the PBOC will not implement stimulus measures as real estate prices started to rise again. In July, new house prices jumped in 50 out of 70 large and medium Chinese cities. Only four sectors in nine included in the index moved higher. On the upside were consumer goods and services. Sands China and Esprit Holdings rose by2.61% and 5.74%. On the downside were property developers on worries that property curbs will persist. China Resources Land, Sino Land and Henderson Land tumbled 0.80%, 0.74% and 1.47%, respectively. Financials also followed bearish trend, with bank of East Asia, Bank of Communications and China Construction Bank falling by 0.07%, 1.70% and 0.74%, respectively. Meanwhile, equities of telecommunication firms created strong pressure on the index as China Mobile extended previous slump, declining by 1.56%. On Friday, the mobile operator reported weaker than expected earnings in Q2.
FTSE 100 Index
UK shares were mostly lower on escalating worries over the Eurozone’s debt crisis as Greece requested a two-year extension to the country’s fiscal adjustment plan. Meanwhile, a sharp fall in Lonmin stock price amid persistent violence at its South African mine dragged UK miners lower. The FTSE 100 Index lost 0.28% to trade at 5,830.10 at GMT 12:00. Five out of ten industries within the index inched up. The biggest gains posted technology firms, with Sage Group rallying 0.56%. Diageo, alcoholic beverage company, also moved higher on news that the company is close to purchase Jose Cuervo for USD3 billion. At the same time, financials were mixed. Royal Bank of Scotland and Barclays added 0.30% and 0.62% whereas HSBC Holdings lost 0.58%. The weakest sectors were basic materials producers. Rio Tinto, Anglo American and Eurasian Natural Resources tumbled 1.61%, 0.44% and 3.49%, respectively. Eurasian Natural Resources remained exposed to a 59% decline in revenues in H1.
DAX Index
German blue chips jumped on Monday ahead of talks between EU leaders regarding Greece’s request. Greece asked EU officials to prolong the period of its budget adjustment reforms by two years. The German DAX Index gained 0.30% to trade at 7,049.64 at GMT 12:00. All industries included in the index climbed. The top-gainers were technology and industrial stocks. SAP and MAN jumped by 1.13% and 0.59%. Meanwhile, financial institutions mostly lower. Commerzbank and Deutsche Bank dropped by 1.19% and 1.46% on news that the lenders are among four largest European banks being under investigation by US regulators regarding violation of US money-laundering laws. Meanwhile, health care companies moved higher, with Fresenius Medical Care and Bayer climbing 0.37% and 0.13%.
EXPLANATIONS
Indexes
Standard & Poor's 500 Index (S&P 500) or (SPX) - U.S. stock market index consisting of the 500 large-cap shares widely traded on the New York Stock Exchange and the NASDAQ.
Dow Jones Industrial Average Index (INDU) - U.S. stock market index consisting of the 30 large publicly owned U.S. companies , primarily industrials
Hang Seng Index (HI) - Hong Kong’s stock market index consisting of 48 largest companies listed on the Hong Kong Exchange
Japan’s Nikkei Stock Average (Nikkei 225 Index) or (NKY) - Japanese stock market index consisting of the 225 largest companies listed on Tokyo Stock Exchange
FTSE 100 Index (UKX) - U.K. stock market index consisting of the 100 most capitalized U.K. companies trading on the London Stock Exchange
DAX Index (DAX) - German stock market index consisting of the 30 largest and most liquid German companies trading on the Frankfurt Stock Exchange
Chart
SMA (20) - Simple Moving Average of 20 periods;
SMA (60) - Simple Moving Average of 60 periods.
Correlation - a statistical measure of the linear relationship of two random variables. It is defined as the covariance divided by the standard deviation of two variables.
Indicators
Industry performance - daily performance of industries within the particular stock market index
Top performers - companies within the particular stock market index that showed best or worst daily performance
Performance - relative historical change of stock market index value
