On 24 April, 2015 – European markets rose on strong German business confidence data

Stocks were mixed Friday and for the week as investors continued to monitor earnings reports and react to mediocre economic data.
United States
Stocks advanced Friday as investors cheered the quarterly results of three large technology companies — Google, Microsoft and Amazon. The modest gains helped close out a relatively strong week for US stocks. The Dow Jones industrials edged 0.1% higher Friday (1.4% on the week). The S&P gained 0.2% on the day and 1.8% for the week. Nasdaq outperformed the Dow and S&P and added 0.7% and 3.2%. Both the S&P and the Nasdaq closed at new nominal highs. Trading was somewhat subdued ahead of Wednesday’s FOMC announcement.
Microsoft, Amazon and Google all were up sharply after releasing their quarterly results. Amazon jumped in heavy trading after it reported a quarterly loss. Amazon reported that sales jumped 49% in Amazon Web Services, its cloud computing division. The promise that cloud computing could bolster Amazon’s bottom line was enough to send investors flooding into the stock. Microsoft advanced after its results beat expectations, and like Amazon, showed promising growth in its cloud computing business. Google advanced even though the company missed expectations. The company had strong growth in mobile advertising. Xerox dropped after it cut its 2015 profit forecast, blaming the strong dollar. Time Warner Cable jumped on news Charter Communications representatives reached out to begin discussions on a potential merger. Comcast earlier abandoned its proposed US$45 billion merger with Time Warner Cable.
March durable goods orders surged 4.0% on the month after slumping by 1.4% in February. However, excluding a 13.5% jump in orders for transportation equipment, durable goods orders slipped 0.2% after dropping 1.3% in February.
Gold at the afternoon London fixing was down US$2.75 to US$1,183.00. Copper futures were up 1.9% to US$2.75. WTI spot crude was down 59 US cents to US$57.17. Dated Brent spot crude was up 43 US cents to US$65.28. The US dollar declined against euro, yen, pound, Swiss franc and the Australian dollar However, it advanced against the Canadian dollar. The Dollar Index was down 0.5%. The yield on US Treasury 30 year bond was down 3 basis points to 2.61% while the yield on the 10 year note declined 4 basis points to 1.91%.
Europe
Most stock indices gained Friday. The markets had been decidedly higher in early trading on optimism around a Greek debt deal at the meeting of Eurozone finance ministers in Latvia and strong German business confidence data. However, stocks pared their gains after the meeting concluded without an agreement. Discussions will continue at the next Eurogroup meeting on May 11. The FTSE was up 0.2% and 1.1% on the week. The CAC and DAX advanced 0.4% and 0.7% while the SMI retreated 0.4%. On the week, the CAC also was up 1.1% while the DAX gained 1.0% and the SMI was 0.6% higher.
German Chancellor Angela Merkel stated that she had a “constructive” meeting with Greek Prime Minister Alexis Tsipras. On Friday, Eurogroup Chairman Jeroen Dijsselbloem said there were still wide differences to bridge with Greek authorities and funds will not be disbursed without a comprehensive deal. Greek banks can avail emergency liquidity as long as they remain solvent according to European Central Bank President Mario Draghi. However, Draghi pointed out that higher yields caused by the lingering uncertainty were eroding the value of the collateral banks offer in return for loans.
RWE sank after its chief executive Peter Terium said Thursday that the latest plans by the Federal Ministry for Economic Affairs and Energy to introduce a so-called “climate contribution” for conventional power stations affects the company’s very existence. The contribution would mean immediate closure for the majority of RWE’s lignite mines and lignite-fired power stations. Volkswagen, Daimler and Peugeot advanced. Renault rallied after the carmaker reported growth in first quarter revenues. Air Liquid declined after it reported quarterly revenues. Banks including Crédit Agricole, BNP Paribas, Société Générale and Standard Chartered were up. HSBC increased after the company said that it is reviewing whether it should move its headquarters out of Britain. BAE Systems gained due to buying interest for some of its US based businesses. AstraZeneca retreated after the company’s first quarter sales and earnings declined.
Asia Pacific
Stock indices were mixed both on Friday and for the week. Optimism that the Federal Reserve will delay its increase in the fed funds rate thanks to weak economic data buoyed shares. The Shanghai Composite was up for a seventh week. On the day, the index retreated 0.5% while on the week it was 2.5% higher on the week. The Hang Seng added 0.8% and for the week, 1.5%.
The Nikkei retreated 0.8% as investors cashed in on the mid-week rally before Japanese corporate earnings reports and the Bank of Japan’s announcement on April 30. On the week however, the index added 1.9%. Investors were wary prior to the Eurozone’s finance ministers meeting regarding Greece that would take place later in the global market day. Air transport led declines by industry group on fuel cost concerns as crude oil prices jumped after Saudi Arabia-led forces continued airstrikes against Houthi rebels in Yemen. Japan Airlines retreated. Real estate and warehousing issues also were down. Nippon Telegraph and Telephone advanced after the Nikkei business daily quoted the company’s president as saying the telecommunications group plans a stock split to facilitate buying of its shares by individual investors.
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*
Monday — April UK CBI industrial trends survey will be posted. The Dallas Fed releases its April manufacturing survey.
Tuesday — Japan posts March retail sales. The UK releases its first estimate of first quarter gross domestic product. In the US, February S&P Case Shiller price index will be posted along with April consumer confidence and Richmond Fed manufacturing survey.
Wednesday — The Eurozone releases March M3 money supply data and April EC economic sentiment. The UK posts April’s CBI distributive trades survey. The Federal Reserve Open Market Committee (FOMC) announces its latest monetary policy decision. The US posts its first estimate of first quarter gross domestic product. April pending home sales also will be released.
Thursday — The Bank of Japan announces its latest monetary policy decision. Japan posts March industrial production data. Germany releases March retail sales and April unemployment. France reports March consumer spending of manufactured goods and producer price index. The Eurozone releases April flash harmonized index of consumer prices and March unemployment. Italy posts March producer price index and April consumer price index. In the US, March personal income and expenditures and first quarter employment cost index are on tap. April Chicago PMI and Kansas City Fed survey will be released along with weekly jobless claims, money supply and Fed balance sheet.
Friday — Japan posts March consumer price index, household spending, unemployment rate and April’s manufacturing PMI. Australia releases first quarter producer price index. The UK posts its manufacturing PMI and M4 money supply. In the US, manufacturing PMI and ISM manufacturing indices will be reported along with final April consumer sentiment and March construction spending.
*Note — all releases are listed in local time.