S&P 500 Index
US equities were slightly lower on Tuesday despite positive news from the US. US current account deficit narrowed more than expected in Q2. At the same time, uncertainty over whether Spain will apply for bailout created heavy pressure on the US stock markets. The S&P 500 Index inched down by 0.13% to close at 1,459.32. Five out of ten sectors within the index climbed. Telecommunications and consumer goods were the biggest gainers in the S&P 500 index. CenturyLink and Frontier Communications advanced 0.88% and 0.42% while Amazon.com and Brown Forman gained 0.29% and 1.30%. At the same time, financials and utilities dragged the index lower. Comerica, KeyCorp and People’s United Financial fell 0.99%, 0.22% and 0.82%, respectively. Among utility companies, Ameren and Consolidated Edison Company slumped 0.28% and 0.43%. On the downside was also Advanced Micro Devices, losing 9.73% after unexpectedly announcing that its CEO is leaving the company.
Dow Jones Industrial Average Index
The Dow Jones Industrial Index edged higher by 0.09% to close at 13,564.64 on news that the US current account deficit narrowed more than expected in Q2. However, weak manufacturing state in the US and lingering concerns over spreading debt crisis in Eurozone weighted down on the US blue chips. A half of the business sectors included in the index advanced. Consumer goods and telecommunications were the best-performers, climbing 0.64% and 0.47%. Kraft Foods and Coca-Cola rose 1.76% and 0.70% while Verizon Communications and AT&T moved higher by 0.74% and 0.16%. Sending the index lower, basic materials and financials lost 0.83% and 0.30%. El du Pont de Nemours and Alcoa dropped 0.81% and 0.94% while Bank of America and American Express plunged 0.75% and 0.86%.
Nikkei 225 Index
Japanese equities rallied on Wednesday after the Bank of Japan announced monetary easing to boost the national economy. The BoJ stated that it would expand the asset-purchasing and loan program by USD127.21 billion. The Nikkei 225 Index soared 1.19% to close at 9,232.21. All but one sectors within the index jumped. The top-performers were technology and consumer goods. Shares of Alps Electric, Canon and Hitachi surged 2.39%, 1.74% and 1.05%, respectively. Among consumer goods, Nikon Corp and Yamaha added 0.70% and 0.25%. Meanwhile, gains of real estate firms and basic materials producers remained capped by persistent Japan’s tensions with China over Senkaku/Diaoyu islands. Daiwa House Industry and Mitsubishi Estate edged up by 0.54% and 0.67% while Asahi Kasei and Dowa Holdings advanced 0.72% and 0.91%.
Hang Seng Index
Hong Kong equities surged on Wednesday after the BoJ announced stimulus measures to boost faltering economy. However, continuous uncertainty whether Spain will ask for financial aid capped the upswing of the Hong Kong blue chips. The Hang Seng Index rallied 1.17% to end the session at 20,841.91. Six out of nine business sectors included in the index surged. The largest gains posted telecommunication and oil and gas companies, advancing by 2.24% and 1.58%. China Mobile and China Unicom Hong Kong spiked 2.22% and 2.34% while CNOOC and PetroChina climbed 1.12% and 2.71%. Lenders also moved higher, with Construction Bank of China and Industrial and Commercial Bank of China rising 2.51% and 2.48%. At the same time, consumer services pushed the index lower, with Sands China tumbling 2.19%.
FTSE 100 Index
UK shares are trading slightly higher on Wednesday on positive news from Asia. The BoJ decided to expand its asset-buying program to boost economic activity in the country. However, uncertainty over Spain’s next bailout continued to weight on market sentiment. The FTSE 100 Index lost 0.11% to trade at 5,861.93. Seven out of ten sectors within the index gained. The best-performers were utilities and oil and gas companies. United Utilities Group, National Grid and Pennon Group advanced 2.33%, 0.29% and 0.07%, respectively. Among oil and gas companies, BP and Royal Dutch Shell added 0.22% and 0.02%. Sending the UK stock index lower, telecommunication firms retreated. BT Group and Vodafone Group dropped by 0.09% and 0.68%.
DAX Index
German stocks are trading on the positive note, erasing early losses. German equities were boosted by easing measures in Japan and rally in Asian shares. Positive data from the US real estate market also lifted German stocks. US existing home sales grew more than expected this month. The German DAX Index added 0.27% to trade at 7,367.53. Four in nine business sectors included in the index advanced. The biggest gainer was telecommunication sectors, climbing 0.54%. Deutsche Telecom rose 1.29%. On the downside were health care companies, with Fresenius Medical Care AG and Fresenius SE & Co falling 0.60% and 0.47%.
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
