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Dec 29, 2015

ADVFN Newsdesk - Sentiment Positive Amid Global Market Rally

 
ADVFN  World Daily Markets Bulletin
Daily world financial news Tuesday, 29 December 2015 09:30:20   
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US Market
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The major U.S. index futures are pointing to a higher opening on Tuesday, with sentiment reflecting optimism heading into the year end. Oil is moderately higher even as most other commodities are weaker. The dollar is mostly higher, although it has come under pressure against commodity currencies. The optimism in the rest of the global markets could seep into the U.S. Markets, although domestic house price data and consumer confidence data due for the day could impact sentiment.

U.S. stocks retreated on Monday amid a pullback in commodity prices. The major averages opened lower and declined until late morning trading, reaching the day's lows. The averages gradually recouped their losses over the remainder of the session before ending modestly lower.

The Dow Industrials ended down 23.90 points or 0.14 percent at 17,528, the S&P 500 Index closed 4.49 points or 0.22 percent lower at 2,057 and the Nasdaq Composite ended at 5,041, down 7.51 points or 0.15 percent.

Eighteen of the thirty Dow components closed the session lower, while the remaining twelve stocks advanced. Apple (AAPL), Caterpillar (CAT) and Chevron (CVX) were among the worst decliners of the session but NIKE (NIKE) and Disney (DIS) gained ground.

Among the sectors, energy, gold and airline stocks moved to the downside.


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US Economic Reports
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The Commerce Department's report on international trade in goods showed a deficit of $60.50 billion in November, roughly in line with the $60.9 billion deficit expected by economists.

Standard & Poor's is scheduled to release its house price index for October at 9 am ET. The 20-city composite house price index is expected to increase 0.6 percent month-over-month on a seasonally adjusted basis, the same pace of growth as in the previous month. Annually, house prices may have risen 5.5 percent.

The Conference Board is due to release its consumer confidence index for December at 10 am ET. The index is expected to increase to 93.5 from 90.4 in November.

The consumer confidence index slid to 90.4 in November from an upwardly revised reading of 99.1 in October, hitting the lowest reading since September 2014. Economists expected an increase in the index to 99.6 from the 97.6 estimated earlier. The expectations index fell more than 10 points to 78.6, the lowest reading since February 2014, and the present situations index was down 6.5 points to 108.1.

The Treasury Department is scheduled to release the results of its auction of 5-year notes at 1 pm ET.


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Stocks in Focus
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Pep Boys (PBY) said its board determined that a proposal received from Icahn Enterprises on December 28th, 2015 for $18.50 per share is a superior proposal relative to the agreement it entered with Bridgestone.

Standard & Poor's announced that Willis Group (WSH) will replace Fossil Group (FOSL) in the S&P 500 Index and that Fossil Group will replace Towers Watson & Co. (TW) in the S&P MidCap 400 Index after the close of trading on January 4th, 2016.

Additionally, Adeptus Health (ADPT) will replace Ferroglobe (GSM) in the S&P SmallCap 600 Index after the close of trading on December 31st.


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European Markets

European stocks started on a firm note and have been rising steadily since then. The French CAC 40 Index and the German DAX Index are up over 1.50 percent each, while the U.K.'s FTSE 100 Index is gaining moderately.


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Asian markets
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The Asian markets advanced, especially those that came online following Monday's public holiday. However, the Vietnamese market bucked the uptrend with a moderate loss.

The Japanese market ended higher, as the dollar rebounded against the yen in late trading. The Nikkei 225 Index opened lower and languished below the unchanged line till the mid-session before recovering strongly in the afternoon. The index ended up 108.88 points or 0.58 percent at 18,982.

A majority of stocks advanced in the session, led by export stocks. Meanwhile, some retail and steel stocks came under selling pressure. Among individual stocks, Nippon Suisan Kaisha rallied 6.07 percent, while UNY fell over 3 percent.

After a weak start, Australia's All Ordinaries Index moved decisively higher by late morning trading. The index advanced steadily thereafter before ending up 59.50 points or 1.13 percent at a more than 1-month high of 5,316.

Consumer, financial, healthcare, IT and telecom stocks ended solidly higher, while material stocks lost ground in the session.

China's Shanghai Composite ended a volatile session up 29.96 points or 0.85 percent at 3,564 and Hong Kong's Hang Seng Index added 80 points or 0.36 percent before ending at 22,000.


Currency and Commodities Markets

Crude oil futures for February delivery are rising $0.48 to $37.29 a barrel. On Monday, oil ended down $1.29 at $36.81 a barrel. Meanwhile, an ounce of gold is trading currently at $1,072.50, up $4.20 from the previous session's close of $1,068.30. On Monday, gold fell $15.60.

On the currency front, the U.S. dollar is trading at 120.43 yen compared to the 120.40 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.0929 compared to yesterday's $1.0968.


 
 

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