Equities
Asian markets traded mostly higher on Monday, buoyed by Friday’s rally in the West. The Hang Seng edged up .2% to 19121, the Kospi rose .3% to 1818, and the ASX 200 advanced .6% to 4105. Energy and material shares were the primary gainers. The Shanghai Composite was a notable exception, tumbling 1.7% to 2148, a 2-year low, after profit warnings from several manufacturers sent shares sharply lower.
European markets ended little changed. The Dax rose .1% to 6566, while the FTSE and CAC40 declined less than .1%.
In the US, stocks declined as retail sales data fell short of forecasts. The Dow erased 50 points to 12727, the Nasdaq slid .4% to 2897, and the S&P 500 eased .2% to 1354.
Human Genome gained 4.5% after approving GlaxoSmithKline’s offer to purchase the company for $3 billion.
Yahoo announced that Marissa Mayer, a former Google executive, will be the company’s new CEO and president.
Treasuries and Commodities
10-year notes rose 5/32 to yield 1.47%, and 30-year notes gained 11/32 to yield 2.56%.
Crude oil and gasoline both rose 1.4% to 88.28 and 2.856 respectively. Natural gas fell 2.4% to 2.804.
Metals traded moderately lower, amid global growth fears. Copper sank .6% to 3.481, silver eased .3% to 27.285, and gold ended flat at 1591.60.
Agricultural futures continued to rally thanks to drought conditions in the US. Wheat and corn rallied more than 4%, while soybeans climbed 2.5% to 1590.50.
Currencies
The Dollar settled mostly lower on Monday, but the losses were limited. The Yen advanced .5% to 78.83, the Pound gained .4% to 1.5624, while the Euro and Swiss Franc edged up .2%. The Australian Dollar inched up .1% to 1.2046, while the Canadian Dollar slipped 8 pips to 1.0148.
Economic Outlook
Retail sales unexpectedly fell .5% last month, well below forecasts for a marginal .1% increase. Business inventories increased .3%, slightly above forecasts, while the Empire State manufacturing index rose to 7.4 from 3.9.
Tuesday’s reports will include CPI, industrial production, and the NAHB housing market index.
The Bank of Canada will announce its rate decision, although it is expected to remain at 1%.
Earnings are due from Coca-Cola, Goldman Sachs, Intel, J&J, and Yahoo.
