21/10/2015
Market Review as of 21 October 2015 by SIB
Wall Street ends down with healthcare, IBM; United Tech rises
U.S. stocks ended slightly lower on Tuesday as a decline in healthcare and biotech stocks offset gains in United Technologies and Verizon. A 5.7 percent drop to $140.64 in IBM also weighed on the market. The stock hit a five-year intraday low at $140.28 after it reported a bigger-than-expected decline in quarterly revenue and cut its full-year profit forecast. The S&P healthcare sector fell 1.5 percent, while the Nasdaq Biotech Index dropped 3.2 percent. Concerns about drug pricing have hit biotech and other healthcare shares. Stocks have mostly gained this month following a selloff in the third quarter, though concern about third-quarter earnings has added to caution. About 6.0 billion shares changed hands on U.S. exchanges, below the 7.3 billion daily average for the past 20 trading days, according to Thomson Reuters data. The Dow Jones industrial average fell 13.43 points, or 0.08 percent, to 17,217.11, the S&P 500 lost 2.89 points, or 0.14 percent, to 2,030.77, and the Nasdaq Composite dropped 24.50 points, or 0.5 percent, to 4,880.97.
Nikkei edges up as telecoms gain in cautious trade
Japanese shares edged up on Tuesday as investors adopted a cautious approach ahead of October policy meetings at big central banks, kicking off on Thursday when the European Central Bank meets. Japanese telecoms added significantly to the index after reports from Deutsche Bank and Barclays highlighted the sector's rebound potential following the first meeting of a government task force on rate and service reforms, held Monday. The Nikkei share average gained 0.4 percent to close at 18,207.15.
Seoul shares end higher on institutional buying
South Korean stocks closed slightly higher Tuesday as institutions snapped up beaten-down shares, with autos leading the gain. The South Korean won fell sharply against the U.S. dollar. Market watchers said major exporters in the auto and tech sectors advanced to support the overall market, while their gains were offset by losses in the steel and heavy industries as weak Chinese growth data fueled concerns over the global economic outlook. The benchmark Korea Composite Stock Price Index (KOSPI) added 9.08 points, or 0.45 percent, to 2,039.35.
Hong Kong stocks fall on profit-taking after strong rebound
Hong Kong stocks fell on Tuesday as investors took profits after a three-week rebound that boosted the benchmark Hang Seng Index by more than 13 percent. In Hong Kong, all main sectors lost ground on Tuesday, getting no inspiration from a last-hour share price jump on the mainland. The Hang Seng index ended down 0.4 percent at 22,989.22 points.
Gold up after 3-day drop; dollar slips before ECB meet
Gold rose on Tuesday for the first time in four sessions as the dollar slipped after solid European lending data boosted the euro ahead of a central bank meeting that could add to the European single currency's appeal. Technical buying also buoyed bullion in New York trade as it settled above the $1,170-an-ounce support it initially strayed under. Gold was also supported on Tuesday by expectations that the Federal Reserve will push the first U.S. interest rate rise in nearly a decade back to next year. An increase would raise the opportunity cost of holding non-yielding gold.
