Updated Chinese data will be carefully parsed by investors.
United States
Stocks climbed to new record highs Wednesday. The Dow Jones industrials rose 6.13 points, the S&P gained 0.1 percent and the Nasdaq was 0.3 percent higher. Technology companies were up for a tenth session in a row, thanks in part to a jump for video game companies. Household products companies also rose while a recent decline in interest rates continued to put pressure on banks. Developments overseas also attracted some attention as President Donald Trump has traveled to China to meet with Chinese President Xi Jinping.
Take-Two Interactive Software jumped after its second quarter revenue exceeded estimates. Competitor Activision Blizzard surged after it said revenue for "Call of Duty: WWII" topped $500 million in its opening weekend. Wal-Mart and Colgate-Palmolive advanced. Bank of America and Comerica retreated. Humana tumbled after the company's third-quarter results didn't excite investors. Humana said it will eliminate around 2,700 jobs, about half through early retirement offers and half through layoffs.
Time Warner Cable slumped after AT&T Chief Financial Officer John Stephens said it is "uncertain" when AT&T will be able to complete its takeover of TWC. Investors worried that regulators may block the $85 billion deal or ask for big changes before they approve it. AT&T had expected to complete the deal by the end of the year. Time Warner Cable slid while AT&T advanced. Social media site Snap tumbled after the company reported weak user growth and revenue in its latest quarter.
These data reflect observations at 4:00 PM US ET. Gold at the afternoon London fixing was up US$8.40 to US$1,284.00. Copper futures were up 0.36 percent to US$3.10. WTI spot crude was up 38 US cents to US$56.82. Dated Brent spot crude was down 38 US cents to US$63.49. The US dollar was down against the yen, euro, and the Canadian and Australian dollars. The US currency advanced against the pound and was virtually unchanged against the Swiss franc. The Dollar Index was virtually unchanged. The yields on both the US Treasury 30 year bond and 10 year note were up 2 basis points to 2.79 and 2.33 percent respectively.
European markets
Shares were mixed Wednesday. Mixed corporate earnings had a dampening impact on investor sentiment. Bank stocks were under pressure following a weak report from French lender Crédit Agricole. Retail stocks also struggled after the disappointing report from the UK's Marks and Spencer. The FTSE was up 0.2 percent and the SMI was 0.5 percent higher while the DAX added 3.15 points. The CAC retreated 0.2 percent.
French video game company Ubisoft surged on strong quarterly results. Mining stocks also fared well despite the weak Chinese trade data. E.ON, Symrise and Brenntag climbed on upbeat earnings. Crédit Agricole dropped after reporting a double-digit decline in third-quarter net profit, hit by weak trading conditions. Marks and Spencer Group was higher after reporting a 5.3 percent fall in half-year profit. Among consumer stocks, Unilever and British American Tobacco gained along with Royal Dutch Shell and Rio Tinto. Persimmon was down after it reported flat third-quarter sales. Barratt Development, Taylor Wimpey, Bovis Homes, Crest Nicholson and Redrow also were lower.
Tullow Oil rallied after the company raised its production guidance. Ahold Delhaize surged in Amsterdam after the company delivered robust earnings and announced a new €2 billion share buyback program for 2018. ABN AMRO retreated after the bank reported a decline in third-quarter revenues. Swiss Life climbed after the life insurer confirmed its full year 2017 outlook. Baloise, Swiss Re and Zurich Insurance advanced in Zurich. Richemont and Swatch gained. Also higher in Zurich were Nestlé and Novartis.
France's September merchandise trade deficit widened to €4.67 billion in September from €4.2 billion in August.
Asia Pacific
Asian stocks were mixed Wednesday as geopolitical worries resurfaced in the Middle East and commodity prices weakened after the release of Chinese merchandise trade data. Media reports suggesting that US Senate Republicans are considering a delay in the implementation of corporate tax cut by a year also weighed on markets. The dollar fell against the yen while oil prices dipped after Chinese crude imports declined to their lowest level in a year.
The Shanghai Composite edged up 0.1 percent while the Hang Seng lost 0.3 percent. The October trade surplus was of $38.2 billion. Exports were up 6.9 percent on the year after increasing 8.1 percent in September. Imports were up 17.2 percent after increasing 18.7 percent the month before.
The Nikkei edged down 0.1 percent while the Topix added 0.2 percent as escalating tensions between OPEC members Saudi Arabia and Iran helped spur demand for the yen. Exporters closed mostly higher, with Canon, Toyota Motor, Panasonic and Sony advancing. Falling bond yields kept banks and insurers under selling pressure. Mitsubishi UFJ Financial and T&D Holdings retreated.
The S&P/ASX and All Ordinaries edged up 1.92 points and 1.79 points respectively after the release of strong quarterly earnings from Commonwealth Bank of Australia that were helped by increased home lending and lower bad debt charges. Miners Rio Tinto, BHP Billiton, South32 and Fortescue Metals Group dropped after base metals prices fell sharply on Tuesday. Energy stocks such as Origin Energy, Woodside Petroleum and Beach Energy were lower on profit taking after recent sharp gains.
The Kospi added 0.3 percent led by gains in tech stocks. The Sensex retreated 0.5 percent, extending Tuesday’s selloff as oil price worries amid rising tensions in the Middle East continued to keep investors nervous.
Looking forward
Japan posts September machine orders. China releases October consumer and producer price indices. Germany reports September merchandise trade balance. In the US, September wholesale trade along with weekly jobless claims, money supply and fed balance sheet will be released.
Global Stock Markets
Note — all releases are listed in local time.
