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On 27 May 2019 - Global stocks: Europe gains after elections, auto merger; Asia quiet

Anne D Picker

Anne D Picker - Econoday

US and UK stock markets closed for holidays.

US markets

US markets were closed in observance of Memorial Day.

European markets

Losses for the center and gains for wings in the European Parliament Elections did not pull down share prices as most indexes posted gains including the CAC and DAX, up 0.4 and 0.5 percent respectively. The Swiss Market Index as well as the Ibex in Spain also gained 0.5 percent. Italy's MIB slipped 0.1 percent while the FTSE was on bank holiday.

Anti-European parties gained seats in the elections as did pro-European parties, both at the expense of the center. The newly formed Brexit party took nearly 1/3 of the UK vote at the same time that Liberal Democrats also gained.

In immediate repercussions, Greek Prime Minister Alexis Tsipras has called a snap election following a poor showing by his Syriza party. The Athens General Index jumped 6.1 percent. News late Monday that Austria's parliament has voted to remove Chancellor Sebastian Kurz and his government from power, in reaction to the Ibiza-gate bribe scandal, had little impact on trading. The Austrian Traded Index ended fractionally higher on the session.

In company news, Chrysler Fiat and Renault are discussing a $35 billion merger of equals that would create the world's third largest auto maker behind Toyota and Volkswagen. Shares of Fiat Chrysler and Renault both gained on the news.

In economic news, Swiss employment data were once again favorable, rising 0.5 percent in the first quarter with goods producing industries adding jobs and vacancies on the rise. Swiss GDP for the first quarter will be posted tomorrow.

Asia Pacific Markets

Asian shares were mixed Monday in mostly narrow trading that included a 0.4 percent gain for the Topix and a 0.3 percent gain for the Nikkei. The All Ordinaries were unchanged, the Hang Seng lost 0.2 percent, while the Shanghai, boosted once again by talk of increasing policy stimulus, jumped 1.4 percent. Volumes were thin.

Trade talks between the US and Japan were headlined by a joint press conference in Tokyo in which President Trump pressed President Abe to narrow the trade deficit between the two countries. Trump said he hopes the US and Japan can put together a trade deal by August.

In economic news, Chinese industrial profits fell 3.4 percent year-to-date in April, little changed from the drop of 3.3 percent in March, but in year-on-year terms, profits fell 3.7 percent, down from growth of 13.9 percent previously. Officials attributed the slowdown in headline growth in April partly to the impact of a cut in value-added tax rates at the start of the month, which encouraged many firms to boost output in March before returning production to more normal levels in April.

Hong Kong's merchandise trade deficit narrowed from HK$59.3 billion in March to HK$35.1 billion in April as a decline in imports, down 5.5 percent year-on-year, exceeded a decline in exports which fell 2.6 percent on the year after falling 1.2 percent in March. Exports to mainland China fell 1.3 percent on the year, while those to the United States fell 6.0 percent. Officials cited escalated trade tensions between the US and China as a factor weighing on external demand and noted the outlook for exporters would depend heavily on whether these tensions are resolved.

Looking forward

Central Bank activities

May-29

Canada

Bank of Canada Announcement

The following indicators will be released this week...

Europe

May-28

EZ

EC Economic Sentiment (May)

 

 

M3 Money Supply (Apr)

 

Germany

GfK Consumer Climate (Jun)

 

Switzerland

GDP (Q1)

May-29

France

CPI (Preliminary May)

 

 

Consumer Mfgd Goods Consumption (Apr)

 

 

GDP (Q1p)

 

Germany

Unemployment Rate (May)

 

Italy

Business and Consumer Confidence (May)

 

Switzerland

KOF Swiss Leading Indicator (May)

May-31

Italy

GDP (Q1)

 

 

CPI (Preliminary May)

 

Germany

CPI (Preliminary May)

 

 

Retail Sales (Apr)

 

Switzerland

Adjusted Real Retail Sales (May)

Asia Pacific

May-27

China

Industrial Profits (Apr)

 

Hong Kong

Merchandise Trade (Apr)

May-30

Australia

Private New & Expected Capital Expenditures (Q1)

May-31

China

CFLP Manufacturing PMI (May)

 

Japan

Industrial Production (Apr)

 

 

Retail Sales (Apr)

 

 

Unemployment Rate (Apr)

 

India

GDP (Q1)

Americas

May-28

US

Consumer Confidence (May)

May-30

US

GDP (Q1p)

 

 

International Trade in Goods (Apr)

May-31

Canada

GDP (Q1)

 

US

Chicago PMI (May)

 

 

Consumer Sentiment  (Final May)

 

 

Personal Income and Outlays (Apr)

Global Stock Markets

 

Index

27 May 2019

Daily Change

% Change Daily

North America

 

 

 

 

United States

Dow

*

*

*

 

NASDAQ

*

*

*

 

S&P 500

*

*

*

Canada

S&P/TSX Comp

16346.66

116.62

0.7

Europe

 

 

 

 

UK

FTSE 100

*

*

*

France

CAC

5336.19

19.68

0.4

Germany

XETRA DAX

12071.18

60.14

0.5

Italy

MIB

20363.13

-12.90

-0.1

Spain

Ibex 35

9216.4

41.80

0.5

Sweden

OMX Stockholm 30

1568.23

-3.29

-0.2

Switzerland

SMI

9712.96

46.07

0.5

Asia/Pacific

 

 

 

 

Australia

All Ordinaries

6544.75

-0.83

0.0

Japan

Nikkei 225

21182.58

65.36

0.3

 

Topix

1547

5.79

0.4

Hong Kong

Hang Seng

27288.09

-65.84

-0.2

S. Korea

Kospi

2044.21

-1.10

-0.1

Singapore

STI

3170.77

0.88

0.0

China

Shanghai Comp

2892.38

39.39

1.4

Taiwan

TAIEX

10334.13

5.85

0.1

India

Sensex 30

39683.29

248.57

0.6

*Markets closed

 

 

 

Data Source — Haver Analytics

 

 

 

Note: all releases are listed in local time.

Important Information

Econoday Inc. is a US company that provides financial commentary and indicators to industry professionals. All information provided and views expressed are those of Econoday. Reference in this document to specific securities should not be construed as a recommendation to buy or sell these securities, but is included for the purposes of illustration only. Past performance is not a reliable indicator of future results. The value of investments can go down as well as up and investors may not get back the amount invested.