On 30 April, 2015 – European markets rose on news that Greece is in talks with lenders for reform packages

Stocks were mixed as investors evaluated the latest economic data in the US and what the data may mean for a Federal Reserve rate increase going forward.
United States
Stocks sold off in late trading on Thursday as Apple declined and economic data reignited concerns about the outlook for interest rates. The Dow Jones industrials were down 1.1% and the S&P declined 1.0% while the Nasdaq dropped 1.6%. The losses deepened prior to the close of trading, with biotechnology stocks and shares of small companies leading the declines. Stocks that have been among the market’s biggest gainers in recent months have reversed course in the last several sessions. For April as a whole, the Dow gained 0.4%, the S&P added 0.9% and the Nasdaq advanced 0.8%.
Celgene was down after it reported lower than expected quarterly revenue. Apple retreated and was the biggest drag on the Dow, S&P and the Nasdaq indices. The company limited the availability of the Apple Watch after a key component was found to be defective, according to the Wall Street Journal. Yelp declined after the consumer review website operator forecast second quarter revenue below analysts’ expectations. Baidu declined after China’s dominant Internet search engine provider posted its slowest quarterly revenue growth rate in almost seven years. Exxon Mobil retreated after it posted sharp declines in profit and revenue in the first quarter as it contends with the slump in oil prices. Viacom dropped after the media company said it swung to a loss in its March quarter and took a hefty charge to restructure its business. Harman International reported earnings that fell short of expectations and lowered its own forecast for revenue and earnings. The company cited the impact of the appreciating dollar and weaker growth.
LinkedIn said it expected sales in the range of US$670 million to US$675 million in the second quarter, below estimates for US$718.3 million. it forecast earnings of about 28 US cents a share, below forecasts for 74 US cents.
The number of new jobless claims tumbled to a 15-year low suggesting the economy is picking up. It comes just a day after the Federal Reserve said economic weakness early in the year was due to temporary factors, pointing to a pick up for the second quarter. Consumer spending was up 0.4% on the month in March. The April Chicago PMI rebounded to 52.3 from a contractionary reading of 46.3 in March.
Gold at the afternoon London fixing dropped US$28.75 to US$1,180.25. Copper futures were up 2.8% to US$2.87. WTI spot crude was up 89 US cents to US$59.47. Dated Brent spot crude was up 73 US cents to US$66.57. The US dollar was up against the yen, pound and the Canadian and Australian dollars. However, it declined against the euro and the Swiss franc. The Dollar Index was down 0.5%. The yield on US Treasury 30 year bond was unchanged at 2.75% while the yield on the 10 year note slipped 1 basis point to 2.04%.
Europe
Most stock indices advanced Thursday. The markets had been under pressure earlier in the session due to a strengthening euro, mixed economic reports and earnings. However, the markets staged a comeback in late trading on reports that Greece is willing to make concessions to achieve a deal with its international lenders. The FTSE and DAX were up 0.2% and the CAC edged up 0.1%. The SMI retreated 0.3%. For the month of April, only the FTSE (up 2.8%) and the CAC (up 0.3%) advanced. The DAX lost 4.3% and the SMI, 0.6%.
With time running short, the Greek government is holding talks with its lenders in Brussels on a reform package. Athens has reportedly signaled that it is willing to sell a majority stake in its two biggest ports. Greece is also said to be willing to compromise on value added tax rates and some pension reforms. The talks are expected to continue through the weekend. The Greek government hopes to form an interim agreement by next week.
Deutsche Börse climbed after the stock exchange operator raised its full year revenue and earnings forecasts and after reporting double digit revenue growth in the first quarter. Bayer gained after raising its full year earnings forecast. Vallourec dropped after it slipped to a net loss in the first quarter and unveiled plans to cut around 20% of its European workforce. Alcatel-Lucent sank after Nokia’s weak first quarter report. Nokia is in the process of taking over Alcatel-Lucent. BNP Paribas declined despite posting better than expected 17.5% growth in first quarter net income, driven by strong performance at its corporate and investment banking business. Shire increased after its first quarter profit came in stronger than expected. Royal Dutch Shell gained after its first quarter earnings climbed. Royal Bank of Scotland dropped after it posted a loss for the first quarter.
Eurozone March unemployment rate remained unchanged at 11.3% for a third straight month — its lowest level in nearly three years. April flash harmonized index of consumer prices was unchanged at zero on the year after slipping 0.1% in March. Germany’s retail sales unexpectedly declined for a second straight month in March. Retail sales fell a calendar and seasonally adjusted 2.3% from February, when they slipped 0.1%. March consumer spending in France declined for the first time in five months and at a faster than expected pace, mainly due to a slump in energy consumption. Household consumption of goods dropped 0.6% from February, when they grew 0.2%, which was revised up from 0.1%. Spain’s first quarter GDP was up 0.9% on the quarter and 2.6% from a year ago.
Asia Pacific
Shares retreated Thursday as weak US GDP data, a fresh decline in iron ore prices and disappointing earnings from Honda Motor and others sapped investors’ appetite for risk. Traders also parsed the latest FOMC statement — but it offered little new information on the timing of the first rate increase in nearly a decade. Japanese shares led the region’s losses on a firmer yen after the Bank of Japan held off from expanding its monetary stimulus.
The Nikkei toppled 2.7% thanks to lackluster earnings from Honda Motor and surprisingly soft US growth data as trading resumed after the Showa Day holiday. For the month of April the Nikkei was up 1.6%. The markets extended losses after the Bank of Japan refrained from boosting monetary stimulus and pushed back the timeframe for its ambitious inflation target. Fast Retailing and Softbank were down. Takeda Pharmaceutical declined after the company said it would pay US$2.37 billion to resolve US lawsuits related to its Actos diabetes drug. NTT DoCoMo plummeted after the country’s largest mobile network operator NTT reported a 22% fall in operating profit for the fiscal year ended March 31. Honda Motor slumped after it reported a 43% decline in fourth quarter profit and forecast a scant 0.4% increase in net profit for the year that began on April 1. Toyota Motor, Nissan and Suzuki Motor also were down. March industrial output was down 0.3% from the previous month, beating expectations for a decline of 2.2% after a 3.1% contraction in February. On a yearly basis, industrial production shed 2.9%.
Both the S&P/ASX and All Ordinaries were down 0.8%, dragged down by miners and banks as the recent rally in iron ore prices came to an abrupt end and speculation grew that the Reserve Bank of Australia might keep its policy cash rate steady at its monetary policy meeting on May 5. The S&P/ASX was down 1.7% in April while the All Ordinaries lost 1.5%. Energy stocks were mixed, with Woodside Petroleum declining while Santos and Oil Search gained.
The Shanghai Composite dropped 0.8% while the Hang Seng declined 0.9%. The indices were up 18.5% and 13.0% in April. The Kospi was down 0.7% Thursday but up 4.2% in April. The Sensex was 0.8% lower on the day and down 3.4% for the month. This was the Sensex’s second monthly decline.
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*
Japan posts March consumer price index, household spending, unemployment rate and April’s manufacturing PMI. Australia releases the 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.