Wed, 16 Jun 2021

NEW YORK, New York - Stock markets were sharply divided on Monday with the technology sector losing ground, while industrials made sizeable gains.

The U.S. Department of Commerce reported that U.S. spending on construction projects rose 0.2 percent in March to a seasonally adjusted annual rate of 1.51 trillion dollars. Economists had been expecting a 1.8 percent gain.

The seasonally adjusted IHS Markit U.S. Manufacturing Purchasing Managers' Index posted at 60.5 in April, broadly in line with the earlier flash estimate of 60.6.

"We've seen a slight change in the pace of value stocks outperforming growth stocks year-to-date," Rod von Lipsey, managing director at UBS Private Wealth Management told Reuters Thomson Monday.

"We still continue to believe that value will be a source of outperformance during increased mobility and recovery."

By the close on Monday, the Dow Jones industrials had risen 238.38 points or 0.70 percent to 34,113.23.

The Standard and Poor's 500 added 11.49 points or 0.27 percent to 4,192.66.

The tech-laden Nasdaq Composite, going against the trend, shed 67.56 points or 0.48 percent to 13,895.12.

U.S. bond yields fell, pushing the price of Treasuries higher, and the dollar lower.

The euro shot up to 1.2064 by the New York close Monday. The British pound strengthened to 1.3907. The Japanese yen was sharply higher at 109.09. The Swiss franc firmed to 0.9113.

The Canadian dollar rose to 1.2279. The Australian and New Zealand dollars jumped to 0.7763 and 0.7204 respectively.

On overseas markets, German stocks rose Monday, with the benchmark DAX index jumping 100.56 points, or 0.66 percent, to close at 15,236.47 points.

According to the Xinhua news agency, material manufacturer Covestro won the most among the blue chips, with its shares up 2.65 percent. Automotive manufacturer Volkswagen and German insurance and financial services company Allianz gained by 1.87 percent and 1.62 percent respectively.

Deutsche Bank, aircraft engine manufacturer MTU Aero and multinational chemical and pharmaceutical company Bayer were the top three losers among the blue chips, by falling 1.81 percent, 0.57 percent and 0.46 percent respectively.

Allianz was the most traded share with a turnover of 194.56 million euros (234.33 million U.S. dollars).

China's Haier, a leading global household appliances manufacturer listed in Frankfurt in 2018, lost 1.43 percent to close at 1.814 euros per share on Monday, the Xinhua report said.

Meantime in London, the FTSE 100 added 8.33 points or 0.12 percent to 6,969.81.

In Paris, France, the CAC 40 rose 38.42 points or 0.61 percent to 6,307.90.

On Asian markets, in Japan, the Nikkei 225 plummeted 241.37 points or 0.83 percent to 28,812.63.

The Hang Seng in Hong Kong dropped 367.34 points or 1.28 percent to close at 28,357.54, while China's Shanghai Composite sank 28.04 points or 0.81 percent to 3,446.86.

The Australian market's slide was softened by a spectacular rise in the earnings of one of Australia's four biggest banks, Westpac, which reported a half-year profit of $3.5 billion, 256 percent ahead of the same period last year. The bank on Monday announced a 58c interim dividend, pushing the shares to a $26.23 close, a gain of 5 percent.

The Australian All Ordinaries dropped 3.90 points or 0.05 percent to 7,286.80.

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