Global shares were mostly higher for the week and April.
United States
Stocks declined Friday after the release of disappointing preliminary first quarter gross domestic product data. However, the Dow Jones industrials, S&P and Nasdaq advanced for the week and the month of April. The Dow and S&P lost 0.2 percent Friday while the Nasdaq was virtually unchanged (down1.33 points). For the week, the Dow was up 1.9 percent, the S&P gained 1.5 percent and the Nasdaq advanced 2.3 percent. During April, the Dow gained 1.3 percent, the S&P was up 0.9 percent and the Nasdaq jumped 2.3 percent. The Nasdaq, which earlier this week breached the 6,000 level for the first time, advanced for the sixth consecutive month.
First quarter preliminary gross domestic product was up an annualized rate of 0.7 percent, below the 1.1 percent estimated as consumer spending barely increased (up 0.3 percent) and businesses invested less in inventories. The weaker than expected increase was the worst performance since a 1.2 percent decline in the first quarter of 2014. First quarter growth has lagged for the last several years now because of weather and problems with the seasonal.
Amazon and Alphabet advanced after their quarterly results beat estimates. Intel declined after the company reported lower than expected quarterly revenue. Baidu was lower after the Chinese internet company forecast second quarter revenue largely below estimates. GoPro was lower after reporting a narrower than expected first quarter loss but also reported disappointing shipments. Cavium, Silicon Laboratories and Microsemi retreated. Chevron and Exxon Mobil climbed after the companies posted encouraging results. Qualcomm declined after the chip maker issued a profit warning, citing a longstanding patent-dispute with Apple. Western Digital was higher after the company reported revenue and profit that topped forecasts.
These data reflect observations at 4:00 PM US ET. Gold at the afternoon London fixing was up US$3.65 to US$1,266.45. Copper futures were up 0.6 percent to US$2.61. WTI spot crude was up 74 US cents to US$49.33. Dated Brent spot crude was up 23 US cents to US$52.05. The US dollar was up against the yen, Swiss franc and the Canadian dollar. The currency declined against the euro, pound and Australian dollar. The Dollar Index was down 0.1 percent. The yields on both the US Treasury 30 year bond and the 10 year note were down 1 basis point to 2.95 percent and 2.28 percent respectively.
Europe
Stocks were mostly lower Friday in choppy trading as they fluctuated around the unchanged mark. Investors seemed reluctant to make any major moves prior to Monday’s holiday. Investors were confronted with slew of corporate earnings results and economic reports Friday. The FTSE was down 0.5 percent, the CAC slipped 0.1 percent and the SMI was 0.4 percent lower on the day. The DAX was virtually unchanged (down 5.78 points). All indices gained on the week, primarily thanks to Monday’s gains. Only the FTSE (down 1.6 percent) retreated in April.
Among the many economic reports released Friday, flash April harmonized index of consumer prices increased 1.9 percent from the same month a year ago, bringing inflation within the European Central Bank’s target of ‘below, but close to 2 percent.’ First quarter preliminary gross domestic product in the UK expanded at the slowest pace in a year increasing only 0.3 percent on the quarter. French first quarter GDP also expanded a disappointing quarterly 0.3 percent. French consumer spending was lower for a second consecutive month in March.
Bayer rose after the company confirmed its outlook for 2017, citing significant sales and earnings growth achieved by Covestro in the first quarter. Linde climbed but the company warned once again that its revenue growth could decline in the year ahead due to challenging market conditions. Deutsche Post DHL Group advanced after the mail and logistics group confirmed its ambitious targets for fiscal 2017 and beyond. Renault gained after the carmaker reported a 25 percent rise in first quarter revenue. Sanofi advanced after it confirmed its earnings outlook for the year after reporting significantly higher profit in its first quarter.
Old Mutual was lower after the insurer said it had agreed to sell its 26 percent stake in Kotak Mahindra Old Mutual Life Insurance Limited to its joint venture partner Kotak Mahindra Bank. Royal Bank of Scotland Group climbed after the bank reported its first quarterly profit since 2015. However, Barclays retreated after posting a surprise drop in trading revenue. UBS advanced in Zurich after a turnaround in its wealth management business helped the Swiss bank to post a 79 percent jump in first quarter net profit. Electrolux was higher in Stockholm after it reported a bigger than expected rise in first-quarter earnings amid an improving trend across all of its business.
Asia Pacific
Stock indices in Asia were also mixed given recent mixed US earnings reports and US President Donald Trump’s warnings on North Korea weighing on markets. A slew of US earnings released after the closing bell on Thursday disappointed.
The Shanghai Composite edged up 0.1 percent but ended the week down 0.6 percent on concerns over tightening regulation and cooling economic growth. The Hang Seng lost 0.3 percent Friday but was 2.4 percent higher on the week. The Shanghai Composite was lower in April — down 2.1 percent while the Hang Seng added 2.1 percent for the month.
The Nikkei and Topix both lost 0.3 percent Friday in the wake of a barrage of Japanese economic data. However both indices advanced for the week and month. The Nikkei added 3.1 percent on the week and 1.5 percent on the month while the Topix was 2.9 percent and 1.3 percent higher respectively. Nintendo was up after the company said strong sales of its new Switch console will help it to double annual profits. Sony edged down marginally and Honda Motor retreated before releasing their earnings results after the market close. Industrial production dropped 2.1 percent in March after jumping 3.2 percent in February and household spending fell more than expected. Consumer price inflation remained stagnant at 0.2 percent on the year.
The S&P/ASX was virtually unchanged (up 2.58 points) and the All Ordinaries edged up 0.1 percent. Both indices advanced on the week (1.2 percent and 1.1 percent) and in April (1.0 percent and 0.7 percent). BHP Billiton retreated while Rio Tinto and Fortescue Metals Group climbed. Energy majors Oil Search and Origin Energy were lower while Santos rose. Banks ended narrowly mixed.
The Kospi was down 0.2 percent Friday but gained 1.9 percent for the week and 2.1 percent in April. The Sensex was down 0.4 percent Friday but added 1.9 percent and 1.0 percent for the week and month respectively.
Looking Forward

Central Bank activities

May 2

Australia

Reserve Bank of Australia Monetary Policy Announcement

May 2 & 3

United States

FOMC Meeting and Monetary Policy Announcement

The following indicators will be released this week…

Europe

May 2

Eurozone

Manufacturing PMI (April)

 

 

Unemployment Rate (March)

 

Germany

Manufacturing PMI (April)

 

France

Manufacturing PMI (April)

UK

Manufacturing PMI (April)

May 3

Eurozone

Gross Domestic Product (Q1.2017 flash)

 

 

Producer Price Index (March)

May 4

Eurozone

Retail Sales (February)

 

Eurozone

Composite & Services PMI (April)

 

Germany

Composite & Services PMI (April)

 

France

Composite & Services PMI (April)

 

UK

Services PMI (April)

Asia Pacific

May 1

Japan

Manufacturing PMI (April)

May 2

China

Manufacturing PMI (April)

May 3

Japan

Services PMI (April)

May 4

Australia

Merchandise Trade Balance (March)

Americas

May 1

United States

Personal Income & Spending (March)

 

 

Manufacturing PMI (April)

 

 

ISM Manufacturing Survey (April)

 

 

Construction Spending (March)

May 3

United States

Services PMI (April)

ADP Private Employment Report (April)

ISM Nonmanufacturing Survey (April)

May 4

Canada

Merchandise Trade Balance (March)

United States

Initial Unemployment Claims (week ending prior Saturday)

International Trade (March)

Factory Orders (March)

May 5

United States

Employment Situation Report (April)

Canada

Labour Force Survey (April)

Global Stock Markets

*Note — all releases are listed in local time.

Source: Fidelity

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