On 7 May, 2015 – European markets were mixed as investors continued to monitor the situation in Greece

Stocks were mixed globally. Investors were cautious ahead of the US employment report for April due Friday morning US ET.
United States
Stocks advanced Thursday, but investors remained cautious following comments a day earlier from Federal Reserve Chair Janet Yellen who suggested that stock valuations were high. Shares rebounded on bargain hunting after two days of selling wiped more than US$320 billion from the market valuations of the companies within the benchmark S&P. Both the Dow Jones industrials and Nasdaq were up 0.5% while the S&P added 0.4%.
Stocks slid on Tuesday and Wednesday, following large swings lower in European fixed income markets that many strategists say were sparked by a combination of thin trading and rising volatility. That, coupled with commentary from Ms Yellen sent stocks lower. The indices slumped after Ms Yellen said market valuations were generally “quite high” in response to a question about risks to financial stability at a conference in Washington. Britain’s general election added a dose of uncertainty to markets. It is not expected to deliver a majority for either of the two big political parties, the Conservatives or Labour. Days, if not weeks, of uncertainty are anticipated.
Whole Foods Markets retreated after the company reported sales growth for the first quarter that was weaker than expected. Alibaba advanced after the company announced a new CEO, Daniel Zhang, and also said quarterly revenue rose 45% from a year earlier. Yelp gained after The Wall Street Journal reported that the online review website is exploring a sale. Lennar, Vulcan Materials and Ryland Group turned in some of the housing sector’s best performances on the day.
Gold at the afternoon London fixing was down US$7.25 to US$1,187.00. Copper futures were down 0.4% to US$2.92. WTI spot crude was down US$2.10 to US$58.83. Dated Brent spot crude was down US$2.32 to US$65.45. The US dollar was up against the euro, yen, Swiss franc and the Canadian and Australian dollars. However, it declined against pound. The Dollar Index was virtually up 0.6%. The yield on US Treasury 30 year bond was down 8 basis points to 2.91% while the yield on the 10 year note declined 6 basis points to 2.18%.
Europe
European markets rebounded from early weakness Thursday, but ended the day with mixed results. The CAC declined 0.3% and the SMI lost 0.2% while the DAX added 0.5%. The FTSE retreated 0.7% as the nation voted for a new national government. According to opinion polls neither the major Labour or Conservative party could win enough seats for an outright majority in Parliament. With no clear winner in sight, another coalition government is a highly probable outcome of the election. Some traders said the risk of a ‘hung’ parliament was weighing on the FTSE (and the pound).
Investors continue to monitor the situation in Greece. The Greek government is holding firm on its refusal to negotiate on pension and labor issues. Eurozone finance ministers will hold a meeting to discuss the country’s debt on Monday.
HeidelbergCement increased after its first quarter results topped expectations. Beiersdorf gained after the company reported that its profit after tax profit for the first-quarter rose to €181 million from €166 million in the prior year. Commerzbank and Deutsche Bank advanced. Automakers Volkswagen, Daimler, BMW, Peugeot and Renault gained. Allianz dropped after gaining sharply on Wednesday after the company confirmed its full year profit guidance. AXA gained after it announced a global partnership with Endeavor. Both Technip and Total were lower. Wm Morrison Supermarkets dropped after it reported a decrease in first quarter sales. BT Group slipped despite its better than expected fourth quarter profit. Aviva climbed after the company announced that new business in the first quarter increased by 14%.
March manufacturers’ orders were up 0.9% after sinking in January and February. French March industrial production dropped unexpectedly. Industrial production dropped 0.3% after increasing a revised 0.5% in February.
Asia Pacific
Stocks retreated Thursday across the board Thursday, following US shares lower after Fed Chair Janet Yellen warned that stock valuations were high during a panel discussion with the head of the International Monetary Fund, Christine Lagarde.
The Nikkei, returning from the three day Golden Week holiday, dropped to a five week low as the global selloff in government bonds spurred speculation borrowing costs will rise. The Nikkei lost 1.2%. During Japan’s long holidays, European and US government bond yields rose rapidly and stocks declined — a pattern that extended to Japan Thursday. Investor sentiment in Tokyo was hit further by concerns over US economic recovery after a spate of recent weak indicators. Stock losses in Tokyo were limited with traders wary of making bold moves amid a two-day trading week. Air transportation led declines, dragged down by the increase in crude oil prices over the past several days. ANA Holdings and Japan Airlines were down. Benesse Holdings dropped after reporting the first-ever group net loss for the fiscal year that ended in March. The education services firm booked a special loss of ¥26 billion to cover the costs of dealing with a massive leak of customer data last year. Dai-ichi Life Insurance advanced after it revised up its net profit and dividend forecasts for the last fiscal year that ended in March.
The Shanghai Composite was down 2.7% after losing 5.6% in the past two sessions. The Hang Seng was lower for a sixth consecutive day. This time, the index lost 1.3%. Both the S&P/ASX and All Ordinaries were down 0.8%. Australia’s April labour force survey said that employment slipped 2,900 after gaining over 86,000 jobs in February and March. The Kospi was 0.6% lower while the Sensex retreated 0.4%.
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*
March industrial production and merchandise trade balance will be released for Germany. Italy posts March industrial production and the UK, merchandise trade. Canada reports its April labour force survey. In the US, the employment situation report for April will be released. 
*Note — all releases are listed in local time