On 31 March, 2015 – European markets declined on weak eurozone unemployment data

Stock indices mostly declined Tuesday on profit taking. Most indices globally were up for the month of March with the exception of those in the US — they declined.
United States
US stocks veered lower in late afternoon trading on profit taking on this last day of the quarter. Health care stocks were among the biggest decliners. Oil prices extended their slide. The Dow Jones industrials were down 1.1% while both the S&P and Nasdaq lost 0.9%. Nine of 10 sectors in the S&P were down. For the month, the Dow was down 2.0%, the S&P declined 1.7% and the Nasdaq retreated 1.3%. For the first quarter, only the Dow declined. According to traders, Tuesday’s focus was on Friday’s March employment report, even though the stock market will be closed for the Good Friday holiday. Many investors are waiting on the sidelines ahead of its release.
The Conference Board’s consumer confidence index climbed to 101.3 in March from a revised 98.8 reading in February. The improvement reflects a pickup in hiring. Home prices increased in January. The January S&P/Case-Shiller 20-city home price index was up 4.6% from a year ago. The increase in US home prices comes amid a decline in homes for sale in many markets, which pushes prices higher.
Synta Pharmaceuticals tumbled after the biotechnology company priced a public offering of 22 million shares of common stock below the prior day’s closing price. Charter Communications jumped on news the company has agreed to buy fellow cable operator Bright House Networks in a deal valued at US$10.4 billion. Movado Group surged after the luxury watch maker reported better than expected fourth-quarter profits and raised its quarterly dividend by 10%. The Bermuda insurer Endurance Specialty Holdings said that it had agreed to acquire the property and casualty reinsurer Montpelier Re Holdings for US$1.83 billion. The deal is expected to expand Endurance’s product distribution and give it access to the Lloyds of London insurance marketplace, in which syndicates of specialist companies join together to share the risk in underwriting policies. The transaction would combine two companies that in total wrote gross premiums of US$3.6 billion in 2014, Endurance said.
Gold at the afternoon London fixing was up US$1.50 to US$1,187.00. Copper futures were down 1.6% to US$2.54. WTI spot crude was down US$1.13 to US$47.55. Dated Brent spot crude was down US$1.08 to US$55.21. The US dollar was up against the euro, Swiss franc and the Australian dollars. However, it declined against the pound, yen and the Canadian dollar. The Dollar Index was up 0.5%. The yield on US Treasury 30 year bond was down 1 basis point to 2.54% while the yield on the 10 year note declined 3 basis points to 1.93%.
Europe
Markets here ended the day, month and quarter on a downward note. Investor concerns over the situation in Greece weighed on markets as did Eurozone unemployment data. Unemployment remains high at 11.3%. On the day, the FTSE lost 1.7%, the SMI declined 0.8% and both the CAC and DAX were 1.0% lower. In March, the FTSE lost 2.5% while the CAC gained 1.7%, the DAX was up 6.6% and the SMI added 1.3%.
The debt crisis in Greece remains unresolved, as the nation scrambles to secure financing ahead of the April 20th deadline. The Greek government and its international creditors have yet to come to an agreement on reforms. According to media reports, talks between the two sides in Brussels have ended without an agreement. However, talks could reportedly resume next week.
Automakers Daimler, Volkswagen and BMW retreated. Renault and Peugeot also declined. Deutsche Bank was down on a broker downgrade. Commerzbank also declined. Both RWE and E.ON were down. Technip and Total were lower. Kingfisher climbed after it reported full year results. Thomas Cook gained after the tour operator said its trading was in line with management expectations. Meggitt was down on a broker downgrade. Miners including Anglo American, Fresnillo, Randgold Resources and BHP Billiton finished lower.
The February Eurozone unemployment rate dropped to the lowest since May 2012 as companies stepped up employment amid strengthening confidence. Nonetheless, the jobless rate remained at an elevated level of 11.3%. Although Eurozone inflation remained negative for the fourth consecutive month, the price decline in March was the slowest for the period. The harmonized index of consumer prices slipped 0.1% on the in March.
Asia Pacific
Shares were mixed Tuesday despite a strong US finish on Monday. The markets pared early gains on worries about whether Greece can secure aid before it runs out of cash by April 20. The Japanese and Chinese markets surrendered early gains to close lower as investors grew cautious after sharp gains the day before amid optimism central banks from Europe to Asia are expanding stimulus.
The Shanghai Composite hit a new seven year high in early trading before erasing all gains and then some to end the session down 1.0%. The benchmark index dropped as much as 1.7% in afternoon trading before closing the session off its day’s lows. Banks and property developers bore the brunt of the selling as investors locked in profits after recent gains. The Shanghai Composite soared 13.2% in March. The Hang Seng added 0.2% on the day and added 0.3% on the month.
The Nikkei surrendered early gains ahead of the Bank of Japan’s tankan survey due Wednesday. The Nikkei ended a choppy session down 1.1%. The index added 2.2% in March. Railway -related stocks underperformed, with Central Japan Railway and West Japan Railway retreating. ANA Holdings were down on a Nikkei report that it will focus on destinations that no Japanese airlines currently go including South American and African routes. Honda Motor dropped after the automaker said it would start selling the all-new Honda S660 from Thursday. Nissan Motor and Toyota Motor retreated as industry data showed automobile production in Japan declined for the eighth consecutive month in February. Sumitomo Metal Mining declined after London-listed Antofagasta and Teck Resources denied media speculation that the two were in merger talks to create a copper producer giant.
Both the S&P/ASX and All Ordinaries were up 0.8% on expectations of further interest rate cuts by the Reserve Bank of Australia underpinning sentiment. Both lost 0.6% on the month. BHP Billiton, Rio Tinto and Fortescue Metals Group advanced on expectations of more infrastructure spending and policy stimulus in China. The four big banks advanced as well. The Kospi added 0.5% and 2.8% in March. The Sensex slipped 0.1% on the day and was down 4.3% on the month.
Global Stock Market Recap

Please remember, the value of investments and the income from them can do down as well as up. Funds that invest in overseas markets may be subject to currency fluctuations. Investments in small and emerging markets can be more volatile than other overseas markets. Reference in this document to specific securities should not be construed as a recommendation to buy or sell these securities, but is included for the purposes of illustration only.
Looking forward*
China posts March CFLP manufacturing PMI and Markit/HSBC manufacturing PMI. Japan’s manufacturing PMI also will be released along with the BoJ’s first quarter Tankan survey. Manufacturing PMIs also will be reported for the Eurozone, France, Germany, UK and US. The March ISM manufacturing survey, February construction spending and the ADP employment report will be reported in the US.
*Note — all releases are listed in local time.
Anne D PickerChief EconomistEconoday