06/06/2016

Weekly Global Stock Market Review

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Monday, June 06, 2016 15:30 GMT

European markets jumped on Friday as the market

sentiment mostly advanced. Major stock indices in

Europe managed to finish with significant gains on

Friday, digesting a raft of services PMIs, while the US

weak economic employment report doubt that the

Federal Open Market Committee will be able to raise rates.

The Stoxx 600 ended the session at 341.29 level. All out of ten industry groups on

the index posted weekly gains, while banking and automobiles & parts shares

advanced 6.55% and 5.7% on week, respectively. Indivior Plc., a pharmaceutical

business, was the last week’s strongest performer with its stock price reaching

235.10 pence trading up by 35.8% since company welcomed a favorable ruling

from the District Court of Delaware on its patent litigation for its key Suboxone

Film for the treatment of opioid addiction. Among top losers, Italian as well as

Portuguese Banks, which reported a 11%-25% drop.

The German DAX Index added 4.51% in the week June 3 to close at 10,090.50.

The gauge has been gradually adding since middle of May. The FTSE 100 Index

also went up during the week to finish at 6,209.63.

European shares continue to gain in value

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Monday, June 06, 2016 15:30 GMT

The US stocks Global equities were nearly

unchanged on the week and closed on Friday

purely green. The Fed's Beige Book, which sets the

economic stage for the FOMC ahead of its meeting

later this month, describes growth across the US as

modest. However, weak payrolls reports

announced on Friday puts the upcoming rate hike into the question.

Both large-cap indices posted their continue increase in three weeks. On the S&P

500 Index ten of ten industry groups inched higher last week, while technology

and financials headed for weekly gains. Joy Global Inc., an American company

that manufactures and services heavy machinery was the last week’s major

mover, as its stock price added 22% to end Friday’s session at $20.70. The share

price jumped after the mining equipment company surprised Wall Street with a

second-quarter profit. It didn't matter that the company's revenue missed.

Nevertheless, Coca-Cola European Partners, declined as much as 21% on week to

finish at $40.13 after the merger between three Coca-Cola (KO) bottlers was

completed.

The Dow Jones finished the week at 17,807.06 points, while the NASDAQ

Composite Index was down 0.12% to close Friday’s session at 4,942.51.

American stocks continue to gain value

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Monday, June 06, 2016 15:30 GMT

Asian stock markets managed to rise on Friday,

missing any real market driver as the session was

calm. Meanwhile, Prime Minister Shinzo Abe

announced this week that his government would

now delay a hike in Japan's general sales tax,

scheduled for next year, until October 2019. Abe

also said another dose of fiscal stimulus will be announced this fall. In November

2014, the Abe government postponed until April 2017 a proposed October 2015

sales tax hike because of sluggish economic growth following a 2014 hike.

The Nikkei 225 average gained 1.08% to end trading week at 16,642.23. The

broader TOPIX Index closed down 0.84% on week, finishing at 1,337.23 on 3

June. Almost all 33 industry groups included in the TOPIX gauge showed weekly

gains, with mining shares increasing as much as 6% for the biggest advance on

the index. Among individual performers, Nexyz Group Corp., a Japan-based

company engaged in the provision of business support services, jumped 63.2%,

ending the week at 2,932 yen. Whereas, the Menicon Co Ltd., sank 18.15% to

end Friday’s closing session at 3,110 yen.

Japanese stocks were mixed

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Correlation Matrix

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Confidence Intervals

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EXPLANATIONS

Indexes

Standard & Poor's 500 Index (S&P 500) or (SPX) - U.S. stock market index consisting of the 500 large-cap shares widely traded on the New York Stock Exchange and the

NASDAQ.

Dow Jones Industrial Average Index (INDU) - U.S. stock market index consisting of the 30 large publicly owned U.S. companies , primarily industrials

NASDAQ Composite Index - U.S. stock market index representing all the stocks that are traded on the Nasdaq stock market, mostly technology and Internet-related

New Zealand Exchange 50 Gross Index (NZX 50) - stock market index consisting of the top 50 companies listed on the New Zealand Stock exchange

S&P/ASX 200 -a market-capitalization weighted stock market index of stocks listed on the Australian Securities Exchange from Standard and Poor’s

Hang Seng Index (HI) - Hong Kong’s stock market index consisting of 48 largest companies listed on the Hong Kong Exchange

Japan’s Nikkei Stock Average (Nikkei 225 Index) or (NKY) - Japanese stock market index consisting of the 225 largest companies listed on Tokyo Stock Exchange

FTSE 100 Index (UKX) - U.K. stock market index consisting of the 100 most capitalized U.K. companies trading on the London Stock Exchange

DAX Index (DAX) - German stock market index consisting of the 30 largest and most liquid German companies trading on the Frankfurt Stock Exchange

Eurostoxx 600 - stock market index, derived from the Stoxx Europe Total Market Index, consisting of 600 large, mid– and small-sized companies from 18 European countries

Chart

Correlation - statistical measure of the linear relationship between two random variables. It is defined as the covariance divided by the standard deviation of two variables.

Historical price changes - chart reflecting the historical price changes of particular region’s stock indices

Indicators

Industry performance - weekly performance of industries within the particular stock market index

Top performers - companies within a particular stock market index showing the best or worst weekly performance

Performance - relative historical change of stock market index value

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