Energy stocks tumbled
The iShares MSCI United Kingdom ETF (EWU) slid by 0.4% on Monday, October 12, 2015. The major pullback sectors were the energy and mining sectors on the day. Energy stocks that rallied in the past week fell on Monday. Dollar-denominated Brent slumped 5.3% at $49.86 in London.
The above graph shows the performance of the iShares MSCI United Kingdom ETF and energy stocks BP (BP) and Royal Dutch Shell (RDS.A) (RDS.B) on October 12, 2015.
The Organization of the Petroleum Exporting Countries’s (or OPEC) monthly report revealed no major cut in oil production despite lowering oil prices.
OPEC’s Secretary General, Abdalla Salem El-Badri, stated at a conference in Kuwait City on Monday, October 12, 2015, that “OPEC produced 31.57 million barrels a day in September 2015, the most since 2012. Markets may be ‘balanced’ in 2016 as demand grows and non-OPEC supply shrinks.”
Key stocks of the day
The stocks at the top of the iShares MSCI United Kingdom ETF on Monday, October 12, 2015, were Smiths Group (SMIN), Coca-Cola (CCH), and Unilever (UL). The stocks gained 2.5%, 1.8%, and 1.1%, respectively, on the day.
Analysts at Sanford C. Bernstein reaffirmed their rating of “outperform” on Unilever. Barclays (BCS) rated the stock as “overweight.”
The stocks at the bottom of the iShares MSCI United Kingdom ETF were Glencore (GLEN), Anglo American (AAL), and Tullow Oil (TLW). These stocks yielded -6.2%, -4.8%, and -5.3%, respectively, on October 12.
Mining stock Glencore tumbled after the company announced its plan to sell two copper mines in Australia and Chile to reduce its debt burden.
October 13 is scheduled to report earnings of Johnson & Johnson (JNJ), Intel (INTC), and JPMorgan Chase (JPM). For detailed updates on the earning releases, visit Market Realist’s Post-Release Earnings Reports page.