On 19 March, 2015 – Most European markets rose on strong resources stocks

US stocks retreated due to the decline in oil prices, while Asian markets were mixed.
US
US stocks retreated on Thursday, taking a breather a day after a Federal Reserve-inspired rally sent the S&P 500 to its highest close in two weeks. The S&P 500 fell 0.5% as oil prices dropped. The Dow Jones Industrial Average declined nearly 0.7%, but the Nasdaq Composite bucked the negative trend, edging up by 0.2%.
Apple made its debut as a Dow Jones Industrial Average component. After rising at the start of the trading session, it shares were down 0.8% at market close. Transocean was one of the biggest decliners. Its shares slid after the offshore driller said it expects to book an after-tax charge of between $300 million and $325 million as it disposes of four rigs. Shares in steel company Nucor also retreated after it issued a warning about its first-quarter results.
On the economic front, the weekly report on jobless claims was a bit weaker than expected. First-time jobless claims for the week ended March 14 came in at 291,000, while expectations were for 290,000.
Europe
Most European stocks rose Thursday, pushing nearer to an all-time closing high, with natural-resources companies driving gains. The Stoxx Europe 600 rose 0.6%, France’s CAC 40 rose 0.1% and the UK’s FTSE 100 rose 0.3%, aided by the strong performance of resource companies and drug makers. However, Germany’s DAX 30 slipped 0.2%. Its gains were capped in part by Siemens, whose stock tumbled on after its CEO said its second-quarter operating profit will be weaker than anticipated.
Gains were led by the oil and gas sector, which managed to advance despite a fall in oil prices. Shares in Premier Oil surged, wiping out Wednesday’s decline. Ophir Energy was among the best performers after the Africa-focused oil-and-gas company swung to a yearly profit and said it is looking to purchase more exploration acreage in the wake of the recent oil-price slide.
Mining shares also rose, largely due to the decline in the US dollar, which fell due to expectations that the Federal Reserve may hold interest rates lower for longer. Precious metals miner Fresnillo and Randgold Resources were among the gainers.
On the economic front, central banks in Switzerland and Norway maintained their key interest rates. Norway’s decision was unexpected as analysts expected a 1% reduction in the key rate.
Asia Pacific
Hong Kong stocks weakened on Friday morning, with the Hang Seng Index down 0.3%. Index heavyweight China Mobile’s shares declined after it reported that its 2014 profit dropped 10%, slightly below market expectations. Major mainland Chinese banks also declined broadly, with China Merchants Bank and China Minsheng Banking leading the losses. However, shares in Tencent Holdings, the second-largest component of the benchmark index, advanced. Shares in Ping An also rose, driven by its strong earnings report. Meanwhile, mainland China’s Shanghai Composite Index was down 0.2%.
Japan’s Nikkei Average was up 0.1% in a choppy trading session on Friday. With the dollar rate unchanged, major technology and industrial stocks posted mixed performance – while shares in Sony and Panasonic rose, Hitachi and Kyocera declined. Meanwhile, shares in Toshiba rose as it announced the commercial production of a 13-megapixel image sensor for smartphones and tablets. Honda Motor also declined as it added more than 100,000 vehicles to its US recall due to faulty airbags.
Australia’s S&P/ASX 200 was up 0.3% on Friday. Banking shares were broadly weaker after a mostly negative lead from the US, with Commonwealth Bank of Australia, National Australia Bank and Westpac Banking Corp declining, However, Australia & New Zealand Banking Group managed to erase an early loss. A further decline in iron ore prices hit mining shares – Fortescue Metals Group and Mt. Gibson Iron were among the laggards. Plunging Brent oil prices also weighed on the energy sector, with shares in Santos, and Beach Energy posting losses.

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*
Germany posts February producer price index. The UK reports February public sector finances. Canada releases February consumer price index and January retail sales.
*Note — all releases are listed in local time.
Anne D PickerChief EconomistEconoday