Daily market review

US edges down in slim ranges; Europe firms, Asia mixed

United States

Major stock indexes turned down in illiquid conditions in the final hour of trading. Earlier, stocks held slim ranges with most sectors better on seasonal demand. The Dow Jones industrial average and S&P both fell 0.3 percent while the NASDAQ fell 0.2 percent.

Late weakness in Apple, down 0.7 percent, Microsoft, down 0.8 percent, and Procter & Gamble, down 0.9 percent, weighed on the major averages. Despite the late weakness, sentiment has been bolstered by hopes that the Omicron variant will not derail the global recovery.

Among sectors, communications services outperformed, and consumer discretionary stocks perked up too on strength in apparel and specialty retailers. On the downside, cruise lines came off after a warning against cruises from the Centers for Disease Control. Norwegian Cruise Lines fell 2.6 percent.

Among companies in focus, Biogen dropped by 7.1 percent after Samsung denied a report it would bid for the US biotech. JetBlue fell 1.0 percent after cutting its flight schedule due to staff shortages. On the positive side, RR Donnelley rose 5.5 percent after receiving a takeover proposal.

These price data reflect observations at 4:00 PM US ET: Dated Brent spot crude oil rose 16 cents to US$79.32 while spot gold rose US$11.99 to US$1,816.98. The US dollar was mixed vs. major currencies. Yields on the US Treasury 30-year bond fell 4 basis points at 1.92 percent, and the 10-year note declined 4 basis points at 1.51 percent.

Europe

Equities edged up with support from expectations that the Omicron-driven pandemic will prove relatively mild, with wider restrictions less likely. The Europe-wide STOXX 600, the German DAX, and French CAC firmed 0.2 percent, and the UK FTSE 100 declined 0.2 percent.

Activity was thin as most institutional players are sidelined until next week. Uncertainty over the outlook remains high given the rapid spread of Omicron, and amid lack of visibility over how the pandemic will unfold. Investors still anticipate a hawkish policy turn from Western central banks but expectations also call for more accommodative Chinese monetary and fiscal policy in 2022.

Among sectors, best were travel & leisure, real estate, health care, and tech, while lagging were food & beverage, and autos & parts. Among companies in focus, Wereldhave, the Dutch REIT, rose 2.5 percent after reporting rebounding leasing activity. Logistea, a Swedish warehouse and logistics business, gained 12.5 percent after a big property acquisition.

Asia Pacific

Equities were mixed with defensive sectors lifting Chinese markets while Japan edged down on consolidative pressures as it closed the year at multi-year highs.

Japanese equities eased on profit-taking and position adjustments on the final trading day of the year. The Nikkei 225 was down 0.4 percent and the Topix declined 0.3 percent.

China's CSI 300 index rose 0.8 percent and the Shanghai composite index gained 0.6 percent. Hong Kong's Hang Seng index firmed 0.1 percent with tech stocks and property stocks limiting the gains. China Evergrande fell 9.1 percent to lead property stocks down after missing another coupon payment.

South Korea's KOSPI slipped 0.5 percent and Taiwan's Taiex declined 0.2 percent as tech stocks retreated.

Australia's All Ordinaries index was flat as stocks were narrowly mixed. Telecom, materials, and financials held up best while energy, tech, and utilities lagged.

Looking ahead*

In Asia/Pacific, South Korean CPI and Chinese CFLP manufacturing PMI reports are scheduled for release. No major data releases are scheduled in Europe or North America.

Global Stock Market Recap

Global Bond Market Recap

Global Currency Recap

Commodities and currencies

This document is issued by FIL Responsible Entity (Australia) Limited ABN 33 148 059 009, AFSL No. 409340 (“Fidelity Australia”). Fidelity Australia is a member of the FIL Limited group of companies commonly known as Fidelity International.

This document is intended for use by advisers and wholesale investors. Retail investors should not rely on any information in this document without first seeking advice from their financial adviser. This document has been prepared without taking into account your objectives, financial situation or needs. You should consider these matters before acting on the information.  You should also consider the relevant Product Disclosure Statements (“PDS”) for any Fidelity Australia product mentioned in this document before making any decision about whether to acquire the product. The PDS can be obtained by contacting Fidelity Australia on 1800 119 270 or by downloading it from our website at This document may include general commentary on market activity, sector trends or other broad-based economic or political conditions that should not be taken as investment advice. Information stated herein about specific securities is subject to change. Any reference to specific securities should not be taken as a recommendation to buy, sell or hold these securities. While the information contained in this document has been prepared with reasonable care, no responsibility or liability is accepted for any errors or omissions or misstatements however caused. This document is intended as general information only. The document may not be reproduced or transmitted without prior written permission of Fidelity Australia. The issuer of Fidelity’s managed investment schemes is FIL Responsible Entity (Australia) Limited ABN 33 148 059 009. Reference to ($) are in Australian dollars unless stated otherwise.

© 2021 FIL Responsible Entity (Australia) Limited. Fidelity, Fidelity International and the Fidelity International logo and F symbol are trademarks of FIL Limited.

Share: