US
A rebound in Apple pushed US stocks higher yesterday following a recent weakness in US equity markets. Apple shares increased by over 3 percent, the most actively traded stock on the Nasdaq, following an increase in price targets by several analysts.
Several wireless and cash-less payments companies rose during the trading session following the announcement by Apple of Apple Pay, a mobile payment service. On the other hand, eBay, owner of PayPay, fell 3.1 percent as analysts perceive the new service as a threat.
Energy shares were amongst the biggest losers as oil prices continued to decline.
The Recent weakness in US Stock stems from concern that the Federal Reserve could raise interest rates earlier than investors expect. Higher rates would raise borrowing costs for individual companies.
Asia
Asian stocks remained flat early this morning. The MSCI Asia Pacific Index, a benchmark for the Asian stock market, lost 0.1 percent after rising as much as 0.2 percent during the session. China’s consumer price index rose 2 percent last month compared to a year earlier. Economist expected a 2.2 percent gain. Slackening imports and declining commodity prices are pointing to an underlying weakness in Chinese demand.
Meanwhile Japanese stocks continued their rally as the yen continued to weaken against the dollar. The Topix increased 0.3 percent, at the close in Tokyo, erasing its loss this year and closing at its highest since 2008. The currency weakness against the dollar is improving export prices and will help improve overall sales.
Europe
European stocks advanced following four days of negative performance as investors await data on US employment.
Air France gained 2 percent as the Company said that it planned to grow earnings by as much as 10 percent a year up to 2017.
Scottish nationalist lost some ground for independence in an opinion poll a week before a referendum that could lead to a breakup of the UK. The latest poll put the No lead at 6 percentage points when excluding undecided voters. The No campaign has 53 percent against the Yes campaign’s 47 percent. The poll gives some reassurance to markets following concerns regarding the pound.
Commodities
Gold fell towards a 3 month low as investors on the back of expectations of higher US interest rates, a strengthening dollar and easing tension in Ukraine.
West Texas Intermediate traded near an 8 month low amid speculation the rising US crude output will add to excess supply. The potential for oversupply and global economics are not supporting demand. Oil prices are expected to continue decreasing next year as US production reaches a 45 year high.
This article was issued by Calamatta Cuschieri, visit www.cc.com.mt for more information.