Foreign Stock Roundup: Infosys Beats; AstraZeneca's Asthma Drug Gets Approval In EU

Global markets endured a volatile week, guided by opposing factors. Basic materials and auto stocks emerged as the leading gainers in Europe even as government formation efforts in Germany met with some success. The Nikkei 225 and Hang Seng were the standout performers for Asia’s indexes. Meanwhile, Brazil’s stocks continued to move higher on the back of strong foreign investment inflows.

Basic Resources, Auto Stocks Lead Gains on the STOXX

Markets across Europe finished in the green last Monday following gains on Wall Street even as Germany inched closer to the formation of a new government. The STOXX 600 gained 0.3%, hitting its highest level since August 2015 earlier in the session. However, a cabinet reshuffle in the United Kingdom led to the FTSE 100 closing 0.4% lower. Basic resources stocks were the leading gainers of the day, increasing by 1.5%.

The STOXX 600 gained 0.4% last Tuesday with nearly all major exchanges and sectors closing in the black. Bullish economic data boosted markets even as investors ignored losses for Asian tech stocks. Basic resources stocks continued to gain, increasing by 1.2%. Auto stocks finished 1.4% higher, emerging as the leading gainers of the day.

Most European stocks closed in the red on last Wednesday even as investors digested earnings and new economic data. The STOXX 600 lost 0.5% with nearly all sectors closing with losses. Telecom stocks were the worst sufferers for the day, declining by 1.9%. Meanwhile, bank stocks garnered considerable gains, increasing by more than 2%.

The STOXX 600 lost 0.3% on last Thursday as investors continued to receive earnings results and economic reports. Retail and telecom stocks were the worst losers for the day, declining by 1.4% and 1.5%, respectively. Stocks of basic resources companies emerged as the strongest gainers, increasing by 0.6%.

Stocks across Europe ended in the black on last Friday. Investors continued to receive earnings numbers and economic data. The STOXX 600 advanced by 0.3%, with nearly all major sectors closing with gains. Over the week, the index gained 0.3%. Investor sentiment received a major boost after coalition leaders secured a breakthrough in Germany. The DAX gained 0.3% while the FTSE 100 and the CAC 40 added 0.2% and 0.5%, respectively.

Nikkei Hits 26-year High, Hang Seng Posts Record Winning Streak

Stocks across Asia closed with gains on last Monday after Wall Street registered a strong finish in the previous trading session. Investors remained focused on earnings numbers given the scarcity of economic releases. The S&P/ASX 200 inched up 0.1% while the Kospi gained 0.6%, recovering from early losses. Meanwhile, the Shanghai Composite and the Shenzhen Composite increased by 0.5% and 0.2%, respectively.

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The Nikkei 225 gained 0.6% last Tuesday, hitting its highest level in 26 years. Most of Asia’s markets closed with gains as investors continued to monitor inter-Korea talks with great interest. Auto stocks and trading houses closed the day mixed. Meanwhile, tech stocks closed the day in the black. The Kospi declined by 0.1%. The Shanghai Composite and the Shenzhen Composite increased by 0.2% and 0.3%, respectively.

Most Asian markets finished in the red on Wednesday despite strong gains for Wall Street in the earlier session. However, stocks listed in Hong Kong continued to notch up gains for the 12th consecutive day. The Nikkei 225 moved 0.3% lower even though financials and auto stocks registered gains. Most of Australia’s stock sectors suffered losses with the S&P/ASX 200 closing 0.6% lower. The Shanghai Composite gained 0.2% but the Shenzhen Composite declined by 0.3%.

Stocks across Asia declined on last Thursday following losses on Wall Street. Investors continued to focus on earnings releases even as Japan’s companies began reporting quarterly numbers. The Nikkei lost 0.3% even as tech and auto stocks declined. South Korea’s chipmakers suffered losses even as the Kospi declined by 0.5%. The S&P/ASX 200 lost 0.5% with only gold producers closing in the black. The Shanghai Composite and the Shenzhen Composite advanced by 0.1% and 0.4%, respectively.

Asia’s markets recovered from early losses on last Friday to end marginally higher. The Nikkei 225 inched up by 0.2% even as tech and auto stocks continued to suffer losses. The Kospi added 0.3% while the S&P/ASX 200 also closed above the flat line. The Hang Seng gained for the 13th consecutive session, marking a record run of gains for the index. The Shanghai Composite and the Shenzhen Composite increased by 0.1% and 0.2%, respectively after China’s December exports exceeded expectations.

Bovespa Surges on Booming Foreign Investment, Profit Taking Ensues

Brazil’s stocks hit a record high last Monday following optimism over the country’s fiscal outlook and burgeoning international investment levels. The Bovespa gained 0.4% on the back of a seven-day long winning streak. Expectations that a market friendly candidate will win this year’s presidential elections have soared, fueling gains for stocks. Meanwhile, Mexico’s benchmark S&P/BMV IPC index gained 0.2%, hitting its highest level since Oct 20, 2017.

Stocks across Latin America suffered losses on last Tuesday. The Bovespa lost 0.7%, falling from a record high and snapping a long stretch of consecutive gains. Brazil’s benchmark was dragged down by Itaú Unibanco Holding SA (NYSE:ITUB) and Vale SA (NYSE:VALE) . Wal-Mart (NYSE:WMT) De Mexico suffered losses, pulling down the S&P/BMV IPC index, which declined by 0.6%.

On last Wednesday, the Bovespa declined by 0.8% as traders continued to indulge in profit booking. The S&P/BMV IPC index ended flat on last Thursday even as the Bovespa rebounded, gaining 1.5%. Brazil’s benchmark’s ascent was fueled by strong capital inflows from foreign investors.

Standard & Poor reduced Brazil’s credit rating on last Friday following concerns over upcoming presidential elections and attempts to reform the country’s pension structure. Investors mostly ignored this development, with the Bovespa losing only 0.2%.

Stocks in the News

ArcelorMittal (NYSE:MT) has received confirmation from Commercial Court of Bordeaux with regard to the Exosun acquisition.

Exosun designs, develops and markets steel solar trackers that entitle photovoltaic panels to follow the path of sun rays, and enhance the performance of ground-mounted solar farms. Zacks Rank #3 (Hold) ArcelorMittal has already forayed in the solar energy market with its steel solar frames which are manufactured in Europe, China and Egypt, and its corrosion along with abrasion-resistant Magnelis steel.

With this deal, the new entity will be able to benefit from commercial, industrial and R&D synergies. The group will also leverage its financial strength to allow the entity to serve customers in major solar projects. (Read: Zacks Investment Research

Written By: Zacks Investment Research