понедельник, 22 июля 2013 г.

STOCKS weekly review

ASIA
Asian stocks ended the week mixed as the International Monetary Fund said risks of a slowdown in Chinese growth are increasing while the Federal Reserve allayed concern the U.S. is planning to curb stimulus.

The MSCI Asia Pacific Index ended the week at 134.93, up from 134.88 on July 12, to continue its longest streak of gains since the week ending March 15. 

Chairman Ben S. Bernanke speaking in the House committee tempered speculation the Fed would begin to trim its $85 billion-a-month bond-buying program as early as September.

China’s economy, the world’s second-largest, expanded 7.5% in the three months to June 30, a report showed July 15. That matched the median forecast of economists.

The International Monetary Fund said July 17 risks are increasing that China’s economic growth will fall short of the institution’s 7.75% annual forecast as it urged the nation to follow through on reforms to sustain expansion. 

Developers trading in Hong Kong fell for the week amid concern measures to curb rising property prices will remain intact. China Resources Land Ltd., which gets all of its revenue on the mainland, lost 9.6%, China Overseas Land & Investment Ltd. sank 3.7% and Agile Property Holdings Ltd slid 2.2%.

Hong Kong’s Hang Seng Index added 0.4% and China’s Shanghai Composite Index fell 2.3%. South Korea’s Kospi advanced 0.1%. Taiwan’s Taiex index dropped 1.9%.

Australia’s S&P/ASX 200 Index ended the week little changed as the Reserve Bank of Australia said the currency’s decline and interest-rate cuts meant its policy setting was appropriate even as it maintained room for future reductions, according to minutes of its July 2 meeting. New Zealand’s NZX 50 Index fell 0.7%.

The Topix climbed 0.8% last week, a fifth straight weekly gain. That’s the biggest such advance since April 2009 and the longest winning streak since February.  The Topix index surged 41% and the Nikkei 225 Stock Average soared 40% in 2013 as Abe and Bank of Japan Governor Haruhiko Kuroda pushed to stoke the nation’s inflation rate to 2%. Over the week the Nikkei 225 rose 0.82%.
Japanese exporters climbed as the yen declined to Y100.65 at the end of last week. Nissan climbed 2.4%, a third week of gains. Honda Motor Co. advanced 1.8%.

Victory tomorrow would give Abe’s Liberal Democratic Party-led coalition the strongest grip on power since 2007, strengthening its ability to carry out the three-pronged plan of monetary easing, fiscal stimulus and structural reform known as Abenomics. The LDP and partner New Komeito are on track to secure a majority, according to a poll.

EUROPE
European stocks rose for a fourth week, the longest stretch of gains in two months. The Stoxx Europe 600 Index advanced 1.2% to 299.85 this past week, the highest level since May. European equities climbed on July 15 as a report showed China’s gross domestic product expanded 7.5% in the second quarter from a year earlier. That matched the median economist forecast and the government’s target rate for 2013.

Minutes from the Bank of England’s July 3-4 meeting released last week showed officials voted unanimously to maintain the central bank’s 375 billion-pound ($572 billion) stimulus program. Paul Fisher and David Miles had previously called for an increase in asset purchases.

National benchmark indexes climbed last week: the U.K.’s FTSE 100 gained 1.3%, France’s CAC 40 climbed 1.8% and Germany’s DAX Index jumped 1.44%.

A gauge of basic-resources companies advanced 4.3%. Rio Tinto climbed 4.2% after posting a 7% increase in second-quarter iron-ore production and raising its forecast for full-year copper output. BHP rose 3.9% as the world’s largest miner reported a 17% increase in fourth-quarter iron-ore production, beating the median analyst estimate.

Carrefour jumped 8.1% in Paris after France’s biggest retailer said sales at stores open at least a year were unchanged as stronger demand in Latin America helped cushion a drop in Europe during the second quarter. A decline of 1.1% in domestic revenue beat the consensus estimate of a 1.8% slide.

A gauge of banks rose 3.3% as the European Central Bank said it’s looking at ways to boost lending to small and medium-sized companies by changing the eligibility of asset-backed securities.

Banco Popolare rose 12% and RBS rallied 11%. Commerzbank AG, Germany’s second-largest lender, surged 9.2% for the biggest gain in 10 months.

London Stock Exchange Group Plc jumped 6.6% as the operator of Europe’s oldest independent bourse reported a 39% increase in first-quarter revenue.

Nokia Oyj lost 2.8% after the Finnish mobile-phone maker reported second-quarter revenue that trailed analysts’ estimates as handset demand fell.

USA                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
Another week, another series of records set by the S&P 500. While not as impressive as the preceding two weeks, the past five days have resulted in a 0.7% increase for the S&P 500 index that established a new record closing high on Friday as well as a new intraday high earlier in the week. 
 
The S&P 500 rose 0.7% to a record close of 1,692.09, while the Dow Jones added 0.51% for the week to 15,543.74. Struggles in the tech sector sent the Nasdaq Composite Index down 0.34% to 3,587.61.

The S&P 500 rose for the fourth consecutive week with strong profits from the big US banks driving financials up 1.8% for the week. Bank of America rose 7% on the week, Morgan Stanley added 5.6%, Citigroup gained 3% and JPMorgan advanced 2.2%.

Tech stocks were under pressure from soft earnings, sending the sector down 1.8% for the week. Several companies missed expectations and lowered guidance, sending shares lower. Microsoft shares were off 11.4% after reporting that poor PC sales and weak demand for its Surface tablet. 

Chipmaker Intel was also hit by the continued fall in global PC sales, sending shares off 3.6% on the week. A drop in advertising prices squeezed Google, which reported revenue and earnings that missed Wall Street forecasts. Shares fell 1.5%. But Yahoo was the best tech performer, with shares up 6.9% on the week after reporting earnings on Wednesday that met expectations.

Despite forecasting higher sales, Advanced Micro Devices lost 13.2% after the company reported a net loss of $74m. Online retailer Ebay missed earnings per share expectations, noting that weakness in Europe and Asia would take its toll on the company’s growth. Shares fell 8.5% on the week.

Federal Reserve Chairman Ben S. Bernanke last week said the pace of the Federal Reserve's bond purchases is not 'on a preset course', as it depends on the current economic and financial situation.

The Fed head assured that signs of recovery are visible in the US labor market, but that “the jobs situation is far from satisfactory, as the unemployment rate remains well above its longer-run normal level.” He also pointed out that inflation is still below the Fed's 2% target. That is why “a highly accommodative monetary policy will remain appropriate for the foreseeable future.”

Bernanke stressed that the decision on when the tapering should begin depends on the Fed's assessment of the US economic outlook. Should economic data improve earlier than forecasted and inflation rise towards the objective, a reduction could be carried out sooner. Otherwise, “the current pace of purchases could be maintained for longer.”


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