Glencore and Energy Stocks Rose to New Heights
Glencore (GLEN) rose 21.05% on Monday, October 5. The commodity trader rose due to the company’s talks to split off its agricultural division.
The rally in the US market boosted stock markets across the globe. The United Kingdom’s stock market stayed afloat on Monday, October 5.
The mining companies that gained the broad market’s momentum on October 5 were Alcoa, Allegheny Technologies, Freeport-McMoran, and Newmont.
The stock markets continued their rally on October 5. The markets rebounded when the rate hike uncertainty settled down and boosted the commodity prices.
On Monday, October 5, two key economic indicators were released for September—the US Services PMI and the ISM’s Non-Manufacturing Index.
The uptrend in mining stocks continued on October 2, 2015, as 85 of 109 stocks in the iShares MSCI United Kingdom ETF returned positive gains on the day.
Though the energy sector of the SPDR S&P 500 ETF gained the most on Friday, October 2, 2015, the top gainer of the day was Wynn Resorts.
Materials and mining stocks outperformed The materials and mining sector rebounded by 2.45% on October 2, 2015, as per the S&P 500 Index. The SPDR S&P 500 ETF’s (SPY) constituent…
Friday, October 2, saw Wall Street turn bullish over stocks and bonds. The prices of commodities such as oil and precious metals such as gold also rose.
New orders for factory goods decreased $8.2 billion, or 1.7%, to $473.0 billion in August. This is well below the prior revised level of 0.2% in July 2015.
US non-farm payrolls added 142,000 jobs in September compared to 173,000 in August, below the consensus estimate of 203,000. The unemployment rate remained unchanged at 5.1%.
The final reading for September’s US Manufacturing PMI indicated further easing in US business conditions, making investors wary of their holdings.
In his Investment Outlook for October 2015, Bill Gross highlights how the ZIRP (zero interest rate policy) acts as a “sinker” to economy growth.
Companies are using the low-cost capital to fund their buybacks and acquisition sprees. It proves Bill Gross’ belief that “every asset price is artificially elevated.”
Bill Gross advised the Fed to use Ray Dalio’s brilliant model instead of the Phillips curve and the Taylor rule to measure economic data.
Over the past six years, the US economy (SPY) has reaped the benefits of the zero-bound interest rate. Increased business spends translates to more household spends.
In his Investment Outlook October 2015, Bill Gross accepts that “low interest rates help asset prices stabilize.”
Bill Gross expressed his views on the markets and on the Fed’s decision to delay the rate hike in his Investment Outlook October 2015.
Chinese consumer sentiment rose to its highest in over a year in September 2015. The reading increased by 1.5% to 118.2 in September from August.
The UK stock market cheered owing to positive rallies across the Asian and US stock markets. The iShares MSCI United Kingdom ETF (EWU) rose by 2.31%.