European shares: Eurostoxx 600

On Thursday, the benchmark index dropped from its five-year high after report showed that the Eurozone’s industrial output shrank more than expected. However, an advance in the gauge was supported by upbeat economic data on China and Obama’s announcement to postpone the decision on military attack to Syria. European shares ended higher on Friday regardless of investors caution prior to data release on the U.S. retail sales and Fed’s meeting this week. In addition America and Russia were holding talks on Syria. The Stoxx 600 retreated earlier in the session and rebounded later on to close at 311.46 points. The benchmark gauge was 2.6% up on week.

All 19 industry groups included in the Eurtostoxx 600 Index posted weekly gains. Automobiles and parts shares jumped 4.6%, the most in the gauge, followed by utility group that was 4.03% higher. Among individual movers, K+S AG was the best performer over the last week, as it rallied 20%. Imagination Tech Group Plc posted the second biggest weekly advance of 16% to finish the trading week at 3.93 euros on news the leading multimedia and communications company has successfully further signed its license agreement with MediaTek Inc. The weakest performer was Partners Group Holding AG, as it erased 13% to end at 174.6 euros on Friday and capping further gains in financial group.

The German DAX Index jumped 4% to 8,509.42 over the last week, while FTSE 100 added 1.6% to finish at 6,583.8 on September 13.


U.S. Stocks: S&P 500 Index

U.S. equity markets were bullish over the last week with all three benchmark indices posting weekly gains. The Dow Jones Industrial Average capped the best weekly results so far this year with 5 billion shares changing hands on American exchanges. Dow Jones climbed 0.5% to 15,376.06, S&P 500 Index surged 2% to 1,683.42 and NASDAQ Index soared 1.7% last week to close it at 3,715.97 on September 16, as weak economic data on the world’s largest economy raised hopes that the Fed’s tapering would be rather moderate this month. American retail sales increased 0.2%, well below the estimates, posting the smallest advance in four months, whereas wholesale prices rallied 0.3%, beating the analyst estimates.

All ten industry groups included in the S&P 500 Index gained over the week with industrial shares jumping the most by nearly 3%, as Molex Inc., electronic, electric and fiber optic product manufacturer, advanced almost 32% over the week to trade at $38.54 at its close on Friday, as Koch Industries bought the company for $7.2 billion. On the downside, Urban Outfitters Inc. dropped the most previous week to end it at $38.38 and capped gains in consumer staples sector after the retail store operator posted disappointing sales outlook for the third quarter.


Japanese stocks: TOPIX Index

Tokyo shares ended higher on week after swinging between gains and losses on Friday as some of the investors took profits or remained cautious before the Fed’s decision on stimulus tapering. The stock market was boosted by gains in export companies, as the Yen weakened against the Greenback. In addition, a report showed that Japanese industrial output advanced 1.8% in July compared to the last year, beating the preliminary estimate of 1.6%.

The Nikkei 225 Index was nearly 4% up to finish the last trading week at 14,404.6 points and the broader TOPIX Index climbed as much as 3.3% from September 9 till September 13. The TOPIX Index has gained 7.2% in September on optimism about Tokyo hosting the 2020 Summer Games.

Only two out of 33 industry groups in the gauge posted losses, with mining share prices losing as much as 1.4%, whereas construction group showed the biggest rally of 9.2%.

Among individual movers, Tokyu Construction Co jumped significantly by 151% with its share to trade at 503 yen by the end of Friday’s trading session, leasing gains in the broader TOPIX gauge. Sumco Corporation was the weakest performer as it erased 14% to end at 747 yen on Friday and capping gains in technology group.


Asia Pacific Shares: S&P/ASX 200

Asia-Pacific stocks dropped on Friday, sending the regional benchmark gauge down from its 11-day session of gains, as investors sat on the sidelines before the Fed’s meeting next week. Traders took profits on Thursday, as better than expected unemployment data came out, fueling expectations that the Fed will start tapering stimulus at its meeting on September 17-18.

Friday, the mining company BHP Billiton Ltd retreated 1% after futures on metals posted a weekly drop, while the merchant shipping fleet Mitsui OSK Lines dipped 3.5% as an index of freight rates snapped its eight-day rally.

In Australia, the stock market dropped for the first time in six consecutive trading sessions, with precious metal miners and basic material shares mostly leading losses. The Australian unemployment rate reached the highest level in five years as well. The benchmark S&P/ASX 200 was still 1.3% up on week. From all ten industry groups, only utility stocks declined, whereas industrials jumped 2.1%.

Hong Kong shares dropped on Friday, with the benchmark gauge paring the biggest two-week advance in a year, as basic materials and property developers stocks retreated. However the benchmark Hang Seng Index has erased its loss of year 2013 and was 2.2% higher on week.

In New Zealand, NZX Index rose 1.7% to finish at 4,650.94 points on Friday on positive corporate earnings results.


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

  • NASDAQ Composite Index - U.S. stock market index representing all the stocks that are traded on the Nasdaq stock market, mostly technology and Internet-related

  • New Zealand Exchange 50 Gross Index (NZX 50) - stock market index consisting of the top 50 companies listed on the New Zealand Stock exchange

  • S&P/ASX 200 - a market-capitalization weighted stock market index of stocks listed on the Australian Securities Exchange from Standard and Poor’s

  • 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

  • Eurostoxx 600 - stock market index, derived from the Stoxx Europe Total Market Index, consisting of 600 large, mid– and small-sized companies from 18 European countries

Chart

  • Correlation - statistical measure of the linear relationship between two random variables. It is defined as the covariance divided by the standard deviation of two variables.

  • Historical price changes - chart reflecting the historical price changes of particular region’s stock indices

Indicators

  • Industry performance - weekly performance of industries within the particular stock market index

  • Top performers - companies within a particular stock market index showing the best or worst weekly performance

  • Performance - relative historical change of stock market index value

This overview can be used only for informational purposes. Dukascopy SA is not responsible for any losses arising from any investment based on any recommendation, forecast or other information herein contained.

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