Asian markets traded mixed on Friday. The Nikkei managed to stretch its winning streak to 4, inching up .1% to 10130., and the Shanghai Composite climbed 1.3% to 2405. Amongst the losers, the Kospi slid .5% to 2034, the ASX 200 closed down fractionally, and the Hang Seng declined .2% to 21318.
In Europe, stocks gained, led by insurance companies, which advanced 2% after gaining concessions in the latest EU capital requirements. The FTSE and CAC40 climbed .4%, and the DAX rose .2%.
The major US indexes closed mixed in narrow trading. The Dow declined 20 points to 13,234, ending a 7-day winning streak, the S&P 500 rose .1%, to 1404 and the Nadaq eased 1 point to 3055. The VIX dropped 6.2% to 14.47, and touched a 5-year low of 13.76 earlier in the day.
Research in Motion jumped 6.9% on rumors of a potential investment by Samsung in the company.
Bank of America jumped 6.1% to 9.80, as the recent rally in the stock continued.
Currencies
The dollar tanked on Friday, pressured by disappointing US economic data. The Australian dollar surged 1.4% to 1.0594, while the euro and pound rallied 1.1% to 1.3176 and 1.5838 respectively. The yen rose .2% to 83.45, and the Canadian dollar settled flat at .9921.
Economic Outlook
Friday’s economic data was universally weak. CPI data was in line with estimates, rising at .4%, although Core CPI rose just .1%, less than expected. Consumer Sentiment unexpectedly declined last month, slipping to 74.3 from 75.3. Industrial Production was flat, significantly weaker than last month’s .4% growth.
US Stocks Gain, Apple Settles Above $600
EquitiesAsian markets traded mostly higher on Monday. In Japan, the Nikkei ticked up .1% to 10142, extending its winning streak to 5 days, and in Korea, the Kospi advanced .6% to 2047. Australia’s ASX 200 gained.3% as miners rallied, and the Shanghai Composite edged up .2%. The Hang Seng slumped 1% to 21115, as negative comments regarding Chinese banks weighed on the index.
In Europe, stock closed modestly lower. The CAC40 dropped .5%, while the FTSE and DAX declined less than .1%.
Meanwhile, US stocks gained, but ended off their highs. The Nasdaq rallied .8% to 3078, the S&P 500 climbed .4% to 1410, and the Dow rose 7 points to 13239.
Rumors of a secondary offering by Bank of America hit the company’s shares in the afternoon, which dropped 2.8 to 9.53.
Apple settled at 601.10, up 2.7% after announcing a $2.65 quarterly dividend, and a $10 billion stock buyback plan.
Currencies
The dollar dropped against foreign currencies as investors continued to shift capital into riskier investments. The euro rose .5% to 1.3242, the pound gained .4%, and the Swiss franc rallied .6% to 1.0977. The Canadian dollar advanced .5% to .9870, and the yen rose .1% to 83.34.
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Euro's Bounce Continues
Economic OutlookThe NAHB houing market index came in flat at 28, but was below expectations. 28 is the highest level recorded since June 2007.
Signs Of China Slowdown Hit Stocks
EquitiesAsian markets closed mostly lower as indications of a slowdown in China hurt the region after mining giant, BHP Billiton, said it is seeing signs of “flattening” demand from China. China’s Shanghai Composite sank 1.4% and the Hang Seng slumped 1.1%, while the ASX 200 dropped .4%. Korea’s Kospi closed down .2%, as did the Nikkei.
The negative outlook for China smacked European stocks. the DAX fell 1.4%, the CAC40 dropped 1.3%, and the FTSE shed 1.2%. Auto makers tumbled 4% following a report that Chinese car sales would fall short of forecasts, and miners tanked 3.6%.
European Auto Makers Tumble 4%
US stocks closed lower as well, but were well off their session lows. The Dow erased 69 points to settle at 13170, after dropping 110 points in the morning, the S&P 500 slipped .3% to 1406, and the Nasdaq eased .1% to 3074.
Currencies
The weak outlook for metals hit the Australian dollar particularly hard, dropping 1.2% to 1.0475. The euro eased .1% to 1.3223, the pound declined .2% to 1.5858, and the yen fell .4% to 83.71.
The Swiss franc settled flat, and the Canadian dollar fell .5% to .9918.
Economic Outlook
Building permits climbed to .72M, a 3-year high, while housing starts slipped to .70M, dropping 1.1% from last month.
Existing Home Sales Data Disappoints
EquitiesConcerns over a possible slowdown in China hit Asian stocks for a second day, particularly resource stocks. The Nikkei fell .6% to 10086, as exporters fell heavily. Sony shares tumbled 4.5%. The Kospi dropped .7%, the ASX 200 declined .5%, and the Hang Seng eased .2% to 20857. Ironically, China’s Shanghai Composite bucked the trend, inching up .1% to 2378.
In Europe, the major indexes closed mixed after trading in a narrow range all day. The DAX gained .2%, the CAC40 fell .1% and the FTSE closed flat. Food retailer, J Sainsbury rallied 4.5% after beating analyst forecasts.
US stocks closed mostly lower as disappointing home sales data weighed on sentiment. The Dow slid 46 points to 13124, the S&P 500 slipped .2%, and the Nasdaq rose fractionally.
Dow Drops 46 Points
Oracle shares fell 2.3%, surrendering early gains, despite reporting earnings which beat estimates.
Currencies
After rising and falling throughout the day, the currency markets closed near their opening prices. The euro, Swiss franc, and Canadian dollar settled down .1%, while the pound rose .1%. The Australian dollar slipped .3% to 1.0450, and the yen gained .3% to 83.41.
Economic Outlook
Existing home sales dropped .9%, more than expected, to an annualized rate of 4.59M, down from last month’s 4.63M, and the supply of houses rose. Weekly mortgage applications declined, added to concerns over the housing markets recovery.
Weak PMI Data From China And Europe Weighs On Stocks
EquitiesPMI data from China showed industrial activity slowed for a fifth straight month, reinforcing concerns of a slowdown in the region. Nonetheless, consumer stocks gained after the Ministry of Commerce in China said consumption is likely load growth in China. The Shanghai Composite eased .1%, and the Hang Seng rose .2% to 20902. The Nikkei rose .4% to 10127, the ASX 200 advanced .5%, and the Kospi closed down fractionally.
European markets skidded, as negative news from China and and the eurozone unsettled investors. The CAC40 tanked 1.6%, the DAX sank 1.3%, and the FTSE shed .8%. PMI data from Germany and France, a showed an unexpected drop in manufacturing, stoking fears of another recession. Materials stocks tumbled, dropping 3.4%.
US stocks closed lower, but fared better than their European counterparts. The Dow lost 78 points to 13046, the S&P 500 dropped .7%, and the Nasdaq fell .4%.
Currencies
The yen surged 1% to 82.57 as growth currencies triggered a flight to safety. The Australian dollar fell .6%, to 1.0396 and the Canadian dollar slumped .7% to .9992 as the two commodity currencies dropped. The euro and Swiss franc both eased .1%, and the pound declined .3% to 1.5820.
Economic Outlook
Despite the weakness overseas, the US economy continues to show signs of a modest recovery. Weekly jobless claims fell to 348K, 5K better than last week, and leading indicators rose .7%, better than forecast.