Archives of “March 1, 2019” day

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European shares end the week with Friday gains

  
Analysis, Global Indices

Major indices higher on the week as well

The major European stock indices are ending the week with Friday gains:
  • German DAX, +0.7%
  • France’s CAC, +0.5%
  • UK’s FTSE, +0.4%
  • Spain’s Ibex, +0.2%
  • Italy’s FTSE MIB, +0.17%

For the week, apart from the UK FTSE, indices were higher:

  • German DAX, +1.26%
  • France’s CAC, +0.95%
  • UK’s FTSE, -1.08%
  • Spain’s Ibex, +0.9%
  • Italy’s FTSE MIB, +2.15%

Eurozone February final manufacturing PMI 49.3 vs 49.2 prelim

  
Analysis, Economy

Latest data released by Markit – 1 March 2019

  • Prior 50.5

The preliminary reading can be found here. Only a mild improvement to initial estimates but more or less similar. The final reading here confirms that manufacturing activity in the region now sits in contraction territory and the print here sits at the lowest since June 2013.

If this carries over into March, it’s going to take some real heavy lifting in the services sector to cover for flagging growth in the Eurozone economy during Q1.

Copper and the relationship with AUD

  
  Analysis

Around 70% correlation-

The Australian dollar and Copper have around a 70% correlation. If you look at the weekly chart below you can see that they tend to move pretty closely with one another.  AUDUSD is the red lone and Copper (HG!) is the candlestick chart.
Around 70% correlation-
Another key relationship is between Copper and the Chinese economy. China uses about 50% of the globe’s usage of Copper, so yesterday’s weak PMI data out of China and a strong copper market was a divergence highlighted in Bloomberg’s markets Live blog I read yesterday. The weak PMI”S out of China, as reported by our very own wonderful Eamonn, will be crucial in setting sentiment for the global industrial sector. Bloomberg reported that the current strength of the copper market may be a result of falling LME stockpiles  propping up prices.

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MSCI to quadruple the contribution of mainland Chinese companies’ to its benchmarks

  
Analysis, Economy

Dow Jones / Wall Street Journal with the news on a huge boost for China shares

  • MSCI provides stock market indexes
  • The firm will increase the contribution of mainland Chinese companies’ to its benchmarks by a factor of four
Says the Journal:
  • a move that makes shares in Shanghai and Shenzhen all but unignorable for many international investors.
Sure does.
Link (WSJ is gated)
If you can’t access the WSJ, the FT has news also (oh, yeah, the FT is gated but a free registration can help access a certain number of articles each month):
  • MSCI included Chinese “A-shares” in the MSCI Emerging Markets index last year, but with a modest inclusion factor of 5 per cent of the float-adjusted market capitalisation that was added in two stages in May and August.
  • On Thursday, MSCI lifted the inclusion factor to 20 per cent, which will in practice triple the Chinese weighting in its EM index from 0.71 per cent to 2.82 per cent by August next year.

US Stocks tilt lower into the close. Rebound higher fizzles.

  
Analysis, US Market

Dow and S&P down for the 3rd straight day.  For the S&P it is the first 3 day losing streak in 2019.

The US stocks opened lower, moved lower, but recovered midday. The rally could not be sustained, however, and the major indices drifted into the close.

THe month is done though and the major indices ending with decent gains.
For the day, the final numbers are showing:
  • S&P index fell -7.89 points or -0.28% at 2784.49. The high reached 2793.73, while the low extended to 2782.51
  • The NASDAQ fell -21.978 points or -0.29% at 7532.53. The high reached 7561.89, while the low extended to 7516.48
  • The Dow fell -69.16 points or -0.27% to 25916.00. The high extended to 26029.21, while the low reached 25896.56
For the month, the final changes are showing:
  • S&P index rose 2.97%
  • NASDAQ index rose 3.44%
  • Dow industrial average rose 3.67%
For the YTD, the gains are even more impressive with the:
  • S&P index up 11.08%
  • Nasdaq up 13.52%
  • Dow industrial average up 11.10%
Canada’s S&P TSX composite index closed month up 3.04% and is up 11.7% in 2019 so far.
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