World Markets Trade Lower, U.S. Inflation in Check and Commodities Fall

Nichole Harper
10 Nov, 2015
New York City

World markets were under pressure and commodities declined after China reported another month of record trade surplus and imports declined. Copper and oil continued to swoon lower. European markets declined on the growing anxieties in Portugal and the OECD lowered its 2015 global growth estimate.

[R][1:20 PM New York City, New York – World markets were under pressure and commodities declined after China reported another month of record trade surplus and imports declined. Copper and oil continued to swoon lower. European markets declined on the growing anxieties in Portugal and the OECD lowered its 2015 global growth estimate again.[/R]

Stocks meandered in New York and energy complex and commodities linked stocks declined after China reported a record monthly trade surplus of $61.64 billion.

China’s October imports declined and exports fell for the fourth month and monthly trade surplus shot up to $61.64 billion.

On the U.S. economic front, import price index declined 0.5% after decreasing 0.6% in September. In October, export prices fell 0.2% following 0.6% drop in September, the Department of Labor said.

On Wall Street, Tollbooth Strategy Index slid 13.95 to 10,984.80.

S&P 500 index fell 3.67 or 0.2% to 2,075.05 and the Nasdaq Composite Index slipped 30.79 or 0.6% to 5,064.62.

Crude oil in New York rose 70 cents to $44.57 a barrel and gold added 86 cents to $1,093.17 an ounce.

U.S. Movers

General Electric Company ((GE)) gained 1.5% or 44 cents to $30.19 after the diversified conglomerate received a letter of award worth $2.6 billion from the Indian railway ministry to supply and maintenance of 1,000 locomotives for next eleven-years. The deal is.

Rockwell Automation ((ROK)) plunged 4.9% or $5.28 to $102.51 after the industrial automation products maker reported total revenues in the fourth-quarter ending in September declined 9.8% from a year ago to $1.61 billion.

Net income in the quarter plunged 19.1% to $201.3 million or $1.50 per diluted share compared to $248.7 million or $1.79 per share from the same quarter last year.

The company forecasted sales for the fiscal 2016 of about $6 billion and earnings per share in the range of $5.90 to $6.40.

As of September 30, the company had acquired 5.4 million shares at a cost of $606.2 million.

European Markets

Stock markets in Europe traded in negative territory as the political crisis in Portugal continues, while mining stocks plunged due to weaker demand from China and falling copper prices.

The possibility for a left-wing coalition replacing the centre-right government in Portugal is strongly opposed by entrepreneurs and investors in Portugal.

The developments in Portugal may indirectly affect the upcoming elections in neighboring in Spain and the entire Euro zone.

In London trading, FTSE 100 index slipped 41.90 or 0.7% to 6,253.06 and in Frankfurt the DAX index decreased 52.31 or 0.5% to 10,763.82.

In Paris, CAC 40 index dropped 33.52 or 0.7% to 4,877.65.

Alstom SA slipped 0.7% to €29.09 after the France-based rail transport equipment maker and General Electric Co secured a contract worth about $5.6 billion from the Indian Railway Ministry to supply the country''s state-owned railroad company with electric locomotives.

The Dutch government plans to offer 216.2 million shares of the state-owned ABN AMRO Bank N.V, or 23% of the total stock, at €16 to €20 per share.

The goal is to raise as much as €4.6 billion from the IPO and to recoup some of the billions of euros the government spent to protect the bank from bankruptcy seven years ago.

Vodafone Group Plc soared 4.5% to 224.09 pence after the U.K.-based mobile company reported better-than-expected revenues for the second quarter and increased its operating profit forecast for the year.

In the first-half of the year ending in September, revenues declined 2.3% to £20.27 billion, compared to the previous year.

Net in the period swung to a loss to £1.58 billion, compared to profit of £5.50 billion.

The company lifted its operating profit forecast for the year to a range of £11.7 billion and £12 billion from an earlier estimate of £11.5 billion to £12 billion.

Asian Markets

Banks stocks move forward in the afternoon after the regional lenders reported better-than-expected results and Prime Minister Shinzo Abe’s government plans to increase the deposit limit of saving accounts.

Pharmaceuticals and precision instruments led the gainers and pulp and paper and utilities companies led the decliners.

Stocks in Tokyo closed in a volatile session after current account surplus in September narrowed from August and overall bank lending in October jumped 2.5%.

Recruit Holdings forecasted revenues for the year to soar 19% to 1.6 trillion yen.

Toray Industries signed a long-term agreement worth about 1.3 trillion yen with the Boeing Co to supply carbon fibre for the production of new Boeing 777X aircraft.

Toray also invest 50 billion yen to increase the production and stable supply of products.

The current account surplus in September narrowed to 1,468.4 billion yen from surplus of 1,653.1 billion yen in August, the Ministry of Finance said.

The adjusted current surplus declined to 776.2 billion yen from 1,590.1 billion yen in the previous month.

Overall bank lending in October jumped 2.5% to 492.611 trillion yen and unchanged from the previous month, the Bank of Japan reported.

Total lending from the trusts increased 2.3% to 64.42 trillion yen while lending from foreign banks fell 0.5% to 1.86 trillion yen.

The Nikkei 225 Stock Average edged up 28.52 to 19,671.26 and the broader Topix index slid 1.49 to 1,589.48.

The yen weakened to 123.32 against a dollar.

Toray Industries Inc decreased 0.6% to 1,092 yen after the diversified group reported net sales in the first-half ending in September jumped 8.5% from a year ago to 1.03 trillion yen.

Net income in the period jumped 19.8% to 49.45 billion yen compared to 41.27 billion yen and diluted earnings per share gained to 30.90 yen from 25.67 yen.

Toray forecasted net sales in the year of about 2.20 trillion yen and net income of about 90 billion yen.

Stocks in Mumbai trading declined following the region-wide decline in Asian trading.

Markets in India are scheduled to close on Wednesday and Thursday to celebrate Diwali and the Hindu New Year.

Rupee strengthened 13 paisa to 66.31 against one U.S. dollar.

The Sensex Index declined 378.14 or 1.5% to close at 25,743.26. The CNX Nifty slipped 131.85 or 1.7% to 7,783.35.

Pfizer, the Indian unit of the drug maker said quarterly profit surged more than expected.

The Central Government of India plans to sell 5% stake in Container Corporation of India.

Hindalco net surged 31%. Hindustan Petroleum net swung to loss. NHPC net and revenues soared.