Home' Trinidad and Tobago Guardian : September 13th 2015 Contents SEPTEMBER 13 • 2015 www.guardian.co.tt SUNDAY BUSINESS GUARDIAN
STOCKS | SBG9
Major stock indexes shook
off an early stumble to
finish with slight gains
on Friday as traders
turned their attention to
a key meeting of the
Federal Reserve next week.
It was a quiet end to another turbulent
week. Thanks largely to a big jump on Tuesday,
the market finished with a two per cent gain
for the week, recouping a portion of the steep
losses from the week before.
The major indexes headed lower at the
opening of trading on Friday, as falling oil
prices pulled oil and gas companies down.
The economic news wasn t encouraging,
either. A reading on consumer confidence this
month sank to its lowest level since September
of last year.
"It seems people are focused on the market s
volatility and the potential impact of a slowing
China," said Phil Orlando, chief equity strategist
at Federated Investors in New York, the money-
management firm. "I understand why folks
are nervous. I think eventually things will settle
The Standard & Poor s 500 gained 8.76
points, or 0.5 per cent, to close at 1,961.05.
The Dow Jones industrial average rose 102.69
points, or 0.6 per cent, to 16,433.09, while
the Nasdaq composite rose 26.09, or 0.5 per
cent, to 4,822.34.
News about China s slowing economy, a
looming rate increase from the Fed and a host
of other concerns have combined to knock
the market down 6 per cent over the past
month. It has been a staggered fall, with sharp
drops one week followed by slight gains the
Wall Street is divided over whether the Fed
will raise its benchmark lending rate next week
for the first time in nine years. The Fed slashed
its key rate to near zero during the financial
crisis, supporting the stock market s seven-
Uncertainty over the Fed s timing has kept
investors on edge.
Major markets in Europe ended with losses
on Friday. Germany s DAX dropped 0.9 per
cent, while France s CAC-40 sank 1 per cent.
Britain s FTSE 100 slipped 0.6 per cent.
In Asia, China s Shanghai Composite Index
added 0.1 per cent, while Hong Kong s Hang
Seng shed 0.3 per cent. Japan s Nikkei 225 fell
0.2 per cent.
Before traders return to their desks on Mon-
day, a large batch of Chinese economic news
will come out over the weekend. Joshua Maho-
ny, market analyst at IG in London, said that
could lead to a turbulent start to trading next
"The weekend release of Chinese retail sales,
industrial production and fixed asset invest-
ment numbers means that Monday is likely
to start with a bang," Mahony said.
Back in the US, Kroger gained 5.0 per cent
after reporting earnings that beat analysts
estimates. The grocery store chain s stock rose
US$1.89 to US$37.29.
Prices for US government bonds rose, push-
ing the yield on the 10-year Treasury note
down to 2.19 per cent from 2.23 per cent late
In the commodity markets, precious and
industrial metals finished mostly lower. Gold
dropped US$6 to settle at US$1,103.30 an
ounce, and silver sank 14 cents to US$14.50
an ounce. Copper settled unchanged from the
day before at US$2.45 a pound.
The price of oil fell on concerns that the
current glut of oil would persist well into next
year. Goldman Sachs cut its forecast for oil
prices next year to US$45 a barrel from US$57,
saying supplies were far higher than previous
estimates. US crude fell US$1.29 to close at
US$44.63 a barrel in New York.
Brent Crude, a benchmark for international
oil, fell 75 cents to close at US$48.14 in London.
In other trading:
--- Wholesale gasoline fell 2.4 cents to close
at US$1.370 a gallon.
--- Heating oil fell 2.5 cents to close at
US$1.550 a gallon.
--- Natural gas rose 1 cent to close at
US$2.693 per 1,000 cubic feet. AP
KEEPING SCORE: Hong Kong s Hang
Seng was up 1.3 per cent at 21,842.20 and
China s Shanghai Composite Index rose 0.4
per cent to 3,210.58. Japan s Nikkei 225
slipped 0.1 per cent to 18,289.68 and South
Korea s Kospi shed 0.7 per cent to 1,949.17.
Australia s S&P/ASX 200 added 0.1 per
cent to 5,101.20. Stock benchmarks rose in
Taiwan, Indonesia and the Philippines.
DATA POINTS: Bank of England min-
utes released Thursday noted improving
economic prospects for the UK, which is
one of Europe s mainstay economies. Job
figures from Australia showed unexpected
The United States, the world s biggest
economy, has released a string of robust
employment data while officials in No 2
economy China have been insisting its
growth is on a steady path.
In the past week, both Japan and the bloc
of euro countries revised recent GDP growth
figures, leading to a less pessimistic view
of those economies.
FED MEETING: Traders remain focused
on a two-day meeting of Federal Reserve
policymakers next week. They are trying
to anticipate when and how quickly the
central bank will begin to raise interest rates
from their historically low levels. Those low
rates have been a key factor sending stock
prices higher over the past seven years. A
report Thursday showing a decline in appli-
cations for unemployment claims was the
latest optimistic sign on the job market,
which could prompt the Fed to tighten cred-
ENERGY: Benchmark U.S. crude was
down 18 cents at US$45.74 a barrel in elec-
tronic trading on the New York Mercantile
The futures contract rose US$1.77 to close
at US$45.92 a barrel in New York on Thurs-
day after Energy Department data showed
an increase in gasoline demand over the
past four weeks compared with a year earlier.
Brent crude, a benchmark for international
oils, was down 12 cents at US$48.77 in Lon-
don after rising US$1.31 to close at US$48.89
a barrel in the previous trading day.
CURRENCIES: The euro fell to
US$1.1283 from US$1.1289 the previous day.
The dollar rose to 120.82 yen from 120.73
How the Dow Jones industrial
average fared on Friday
The Dow Jones industrial average rose
102.69 points, or 0.6 per cent, to 16,433.09.
The Standard & Poor's 500 index gained 8.76
points, or 0.5 per cent, to close at 1,961.05.
The Nasdaq composite climbed 26.09 points,
or 0.5 per cent, to 4,822.34.
For the week:
The Dow rose 330.71 points, or 2.1 per
The S&P 500 index rose 39.83 points, or 2.1
The Nasdaq rose 138.42 points, or 3 per
For the year:
The Dow is down 1,389.98 points, or 7.8
The S&P 500 index is down 97.85 points,
or 4.8 per cent.
The Nasdaq is up 86.29 points, or 1.8 per
After a wobble,
US stocks see
Andrew Silverman, left, and a fellow trader work on the floor of the New York Stock Exchange,
Thursday, August 27, 2015. US stocks closed sharply higher after China's main stock index
logged its biggest gain in eight weeks. The Dow Jones industrial average climbed 369.26 points,
or 2. 3 per cent, to 16,654.77.
Asia stocks mostly higher on Wall Street tail wind
A passer-by is silhouetted in front of a bank's electronic board showing the Hong Kong share index at
Hong Kong Stock Exchange in Hong Kong Thursday, August 27, 2015. China's main stock market index
has surged 5.3 per cent, its biggest gain in eight weeks, as Asian markets rose following Wall Street's
overnight rebound. AP
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