On Friday, Asian stocks headed south as market participants mostly held fire ahead of clues from Janet Yellen, Fed Chair.
The S&P/ASX 200 tumbled 0.1%, South Korean Kospi lost 0.4%, while in Hong Kong, the Hang Seng Index acquired 0.6%. As for the Shanghai Composite index, it edged up by 0.1%.
Fed Chair is expected to speak later in the global trading day at the Jackson Hole meeting of key bankers.
In Japan, the Nikkei Stock Average slumped 0.9%, with insurance and automobile shares affected by expectations that Fed Chair would deliver downbeat news regarding the American economy. There’s no doubt it would push down bond profits and weaken the greenback.
Lower yields diminish insurers’ returns, while a weakening greenback pushes the Japanese yen higher, thus hurting Japan’s export competitiveness.
Toyota Motor tumbled 3%, Honda Motor lost 2.5%, while Nissan Motor sank 1%.
Financial experts find a December rate hike quite probable.
FTSE 100 tumbles, though miners find relief
British shares headed south, set to round off the trading week with a loss, as market participants waited for an update on Britain’s economic growth as well as a closely watched speech from Yanet Yellen, Fed Chair.
The FTSE 100 dropped 0.2%, being worth 6,802.00, with healthcare as well as consumer goods among the dropping sectors. As for miners, they traded higher after staying under pressure this week. The London benchmark has found itself on track to sink 0.6% for the week - a second straight weekly loss.
On Thursday, the index sagged 0.3%, weighed by those losses for drug makers and miners.
However, on Friday, BAE Systems PLC managed to top the FTSE 100. Shares grew 1.2% as the defense company’s rating was upgraded to purchase from hold at Berenberg.
Friday’s trading session will see the issue of a second reading of the UK’s GDP for the second quarter.
Ahead of the British GDP publication, in New York, the sterling rose $1.3217 from $1.3175 late on Thursday.
On Wednesday, Australia stocks headed south after the close, as losses in the Energy, Utilities as well as Telecoms Services sectors brought shares down.
The S&P/ASX 200 edged down 0.21% at the close in Australia.
The best performers of the trading session on the S&P/ASX 200 included Computershare Ltd that surged 8.83%, trading at 9.740. Meanwhile, Cochlear Ltd gained 6.46%, being worth 133.080. Additionally, Mesoblast Ltd surged 5.79%, trading at 1.280.
As for the worst performers of the trading session, we should point out to Monadelphous Group Ltd, which managed to sink 7.43%, trading at 10.720. Whitehaven Coal Ltd slumped 6.13%, hitting 1.760, while Fairfax Media Ltd edged down 4.27%, being worth 0.953.
Dropping stocks outnumbered soaring ones on the Australia Stock Exchange by 550 to 521, while 309 finished intact.
Stocks in Cochlear Ltd headed north to all time peaks, soaring 6.46% or 8.080, hitting 133.080.
The S&P/ASX 200 VIX, measuring the implied volatility of S&P/ASX 200 options, dropped 1.01% to 12.707 a fresh 52-week minimum.
FTSE 100 pulls back from 2016 peaks
British stocks sagged, taking a breather after hitting their highest outcome this year, with traders waiting for further signals in lackluster trading.
The FTSE 100 tumbled 0.3%, being worth 6,830.52, with all sectors heading south. On Tuesday, the index soared 0.6% at 6,851.30, boasting the best close since June 2015 and a fourth straight win, as FactSet data states.
Smith & Nephew PLC stocks traded at the bottom of the benchmark, losing up to 1.8% after the medical equipment maker’s rating got downgraded to equal weight from overweight at Barclays.
However, stocks of broadcaster ITV PLC ascended by 0.3% after Entertainment One Ltd. , the Canadian film as well as and television producer behind the Peppa Pig cartoon franchise, dared to reject ITV’s $1.3 billion buyout offer.
Meanwhile, crude major Royal Dutch Shell PLC sagged 0.9%, and BP PLC tumbled 0.5% as crude prices demonstrated mixed outcomes. On Tuesday, they rebounded from a two-week peak as traders weighed worries regarding global oversupply against the prospects for an industry agreement to curb crude production.
On Friday, Australian stocks edged up after the close today, as revenues in gold, healthcare as well as consumer discretionary sectors brought stocks higher.
At the close in Australia, the S&P/ASX 200 earned 0.07%, hitting a fresh 6-months peak.
The best performers of the trading session on the S&P/ASX 200 include Resmed Inc with its 7.55% rise, trading at 9.260. Meanwhile, Bega Cheese Ltd gained 6.90%, being worth 6.200, while Austal Ltd soared 5.94%, trading at 1.160.
As for the worst performers of the trading session, we should mention Beach Energy Ltd, that sank 5.13%, trading at 0.555, Aconex Ltd with its 4.94% dip, trading at 7.985 as well as Fortescue Metals Group Ltd, which sagged 4.11%, being worth 4.430.
Rising shares outnumbered decreasing ones on the Australia Stock Exchange by 586 to 501, while 315 ended intact.
Stocks in Resmed Inc edged up to 52-week peaks, soaring 7.55% at 9.260.
The S&P/ASX 200 VIX, gauging the implied volatility of S&P/ASX 200 options, slumped 0.39%, hitting 14.179 a fresh 3-months minimum.
FTSE 100 slumps, but Barclays earns on Brexit reassurance
British shares flipped in and out of losses, with traders sifting through corporate earning posts as they obtained word of a tumble in British consumer confidence.
The FTSE 100 earned 0.2%, being worth 6,733.16, thus setting the blue-chip index on track for a 3.5% monthly revenue, marking a second straight monthly soar.
For the week, the benchmark braced for a 0.1% soar, which would extend its weekly winning streak into a sixth week.
As for movers, stocks of Barclays PLC managed to top the FTSE 100 by soaring 4.2%. Meanwhile, the banking heavyweight reassured market participants regarding its course of business in the wake of Great Britain’s Brexit referendum, including an initiative to close non-core assets as soon as possible.
Financial analysts are assured that it’s the right plan for Barclays, and they don’t see any reasons to adjust this stuff in light of the vote by Great Britain the previous month to leave the EU.
On Friday, Asian shares demonstrated mixed performance with traders waiting for word from the BOJ on the scope for further monetary easing.
The Nikkei 225 soared 0.24% ahead of the latest monetary policy review by the BOJ, while the S&P/ASX index headed north 0.04%.
In China, stocks dipped even as financial experts told that the banking regulator's proposals to restrict investment in equities across wealth-management products will have rather a limited effect on money flowing into the stock market.
The Shanghai Composite Index edged down 0.14%, while in Hong Kong the Hang Seng Index last traded at 0.52%.
Overnight, American shares mostly stood still on Thursday, being in tight, range-bound trade, because a downbeat quarter from Ford Motor Company as well as ongoing drops in crude prices compensated momentum from decent results in the technology sector on the busiest day of second quarter earnings season.
The Dow Jones Industrial Average sagged 15.82, showing a 0.09% dip and hitting 18,456.35.
FTSE 100 drops as Shell, Lloyds sag after earnings reports
Yesterday, British blue-chip shares went down as market participants absorbed a storm of corporate earnings updates with stocks of Royal Dutch Shell PLC as well as Lloyds Banking Group PLC dropping after their data.
The FTSE 100 tumbled 0.1%, being worth 6,746.48, though it had been down by more during the early trading session On Wednesday, the index closed +0.4%, hitting 6,750.43, the best outcome since last August.
The prospect of the US interest-rate hike was helping to get the London benchmark out from that 2016 peak. Late Wednesday, the Fed kept the door open for an interest-rate lift in September, stressing that near-term risks to its outlook have decreased.
Shell stocks sagged 3.2% after the crude major reported a dip in its second-quarter revenue, telling that lower crude prices still remain a serious challenge across the business, especially in the upstream. Its adjusted revenues of $1.05 billion dipped short of a $2.27 billion forecast drawn from a Wall Street Journal survey of experts.