Foreign Stock Roundup: Eni & BHP Billiton Impress, Barclays & HSBC Disappoint

Global stocks endured significant volatility during a week dominated by the release of the minutes of the Fed’s latest meeting. Investors across Europe chose to focus on earnings numbers and economic data on several occasions. Greater China markets remaining closed for several days due to the Lunar New Year holiday. Brazil’s Bovespa ignored a variety of impediments to post its seventh successive session of gains.

STOXX Endures Volatile Trading

Markets across Europe finished in the red last Monday. Trading volumes remained low even as investors continued to receive fresh earnings numbers. The STOXX 600 lost 0.7% with all sectors expect oil and gas closing in the red. Sluggish volumes were a product of markets remaining closing in Greater China, Mumbai and the United States. Shares of household goods were the heaviest losers, declining 1.4%.

The STOXX 600 gained 0.6% last Tuesday with nearly all major exchanges and sectors finishing in the green. Investors shrugged off volatility concerns, choosing to focus on impressive earnings numbers. The FTSE 100 finished nearly flat, slipping by a mere 0.01%. Meanwhile, the CAC 40 and the DAX increased 0.6% and 0.8%, respectively. Stocks of chemicals companies were the largest gainers, adding 1.2%.

Stocks across Europe finished in the green last Wednesday even as investors chose to focus on earnings numbers and economic data. The STOXX 600 gained 0.2% even though major sectors and exchanges ended the session mixed. Also, manufacturing and services PMIs for the Eurozone declined in February. Stocks of basic resources companies were the best performers, gaining 1.6%.

Concerns surrounding an increase in pace of rate hikes in the United States led to Europe’s stocks closing marginally lower on last Thursday. Global risk appetite took a beating after such fears came to the fore. The STOXX 600 slipped 0.1% with all major sectors and exchanges closing mixed. The FTSE 100 suffered the most among the leading indexes, losing 0.4%. The CAC 40 and the DAX ended nearly flat.

The STOXX 600 gained 0.2% last Friday with major sectors and exchanges closing mixed once again. Investors awaited a crucial report from the Federal Reserve even as they continued to receive earnings numbers. Stocks of retail companies were the worst losers for the day while auto stocks also suffered to close the day 0.7% lower.

Asia’s Stocks Gain over Holiday-Shortened Week

Stocks across Asia finished in the green on last Monday after the S&P 500 posted a six-day winning streak. Markets across China and Hong Kong remained closed for the Lunar New Year holiday. The Nikkei 225 and Topix gained 2% and 2.2%, respectively. South Korea’s Kospi increased by 0.9% while the ASX 200 overcame early losses to end 0.6% higher.

The region’ stocks finished lower on Tuesday following low trading volumes overnight even as U.S. markets were closed on Monday. The Nikkei 225 declined by more than 1%. The Kospi ended 1.2% lower owing to losses suffered by tech heavyweights. The ASX 200 closed marginally below the flat line. The Hang Seng lost 0.8% even as exchanges in China continued to remain closed for the Lunar New Year holiday.

Volatile trading in Japan’s markets failed to prevents Asia’s exchanges from finishing in the green last Wednesday. The Nikkei 225 gained 0.2% after a particularly choppy session. The Kospi gained 0.6% while the ASX 200 inched up 0.1%. The Hang Seng gained more than 1.6% even as China’s markets continued to be closed for the Lunar New Year holiday.

Losses on Wall Street following the release of the latest Fed minutes led to Asia’s markets closing mixed on last Thursday. The ASX 200 added 0.1% even as the Nikkei and the Topix lost 1.1% and 0.9%, respectively. The Kospi finished 0.6% lower. Chinese markets reopened with strong gains with the Shanghai Composite and the Shenzhen Composite increasing 2.2% and 1.9%, respectively.

Stocks across the region closed in the black on last Friday even as the dollar staged a rebound. The Kospi was the leading gainers among the indexes, advancing by 1.5%. The Nikkei 225 and the ASX 200 increased 0.7% and 0.8%, respectively. The Shanghai Composite gained 0.6% while the Shenzhen Composite added 0.2%.

Bovespa Gains for Seventh Straight Session

Stocks from Brazil gained last Monday even as trading volumes remained low despite a string of corporate developments. The Bovespa increased 0.3%, boosted by shares of Petrobras (NYSE:PBR) which gained on the back of an increase in crude prices. Fibria Celulose (NYSE:FBR) also moved higher after confirming that it had held discussions over “alternative strategies.”

The Bovespa gained 1.6% last Tuesday despite Brazil’s policymakers jettisoning a plan to cut down on social security expenditure. Analysts opined that markets had already accounted for such a move from Brazil’s Congress.

The index gained last Wednesday, increasing 0.8%. Investors anxiously awaited the minutes of the Federal Reserve’s latest meeting. Last Thursday, the Bovespa finished in the green for the seventh successive session, gaining 0.7%.

Stocks from Mexico were the key losers from Latin America on last Friday. Disappointing growth data pushed the benchmark index IPC index nearly 1% lower on a day during the region witnessed low trading volumes. The Bovespa slipped marginally, by 0.1%. Losses for Brazil’s benchmark were curbed by stellar results from key stocks.

Stocks in the News

HSBC Holdings (LON:HSBA) plc (NYSE:HSBC) reported fourth-quarter 2017 results wherein it incurred net loss attributable to shareholders of $274 million, which improved from a loss of $4.4 billion in the year-ago quarter. Results included a one-time charge of $1.3 billion related to the U.S. tax reforms and several other non-recurring items. HSBC has a Zacks Rank #3 (Hold).

For 2017, net income attributable to shareholders was $9.7 billion, a significant rise from $1.3 billion recorded last year. Also, pre-tax income of $17.2 billion was up substantially from $7.1 billion in 2016.

Adjusted total revenues of $12.4 billion grew 13% year over year. Increase in all revenue components supported the growth. Adjusted loan impairment charges and other credit risk provisions jumped 41% from the year-ago quarter to $658 million. Adjusted total operating expenses rose 4% from the prior-year quarter to $8.8 billion. (Read: Zacks Investment Research

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Written By: Zacks Investment Research