On 20 March, 2015 – European markets advanced on optimism for an agreement on an aid program for Greece

Most indices posted gains Friday thanks to higher oil prices. On the week however, the indices were mixed both before and after the FOMC announcement Wednesday.
United States
Stocks advanced Friday, helped by a recovery in oil prices and earnings reports from Darden Restaurants and Nike. On the week, the indices also gained. Both the Dow Jones industrials and the S&P gained 0.9% while the Nasdaq added 0.7%. On the week, the indices were up 2.1%, 2.7% and 3.2% respectively.
The Federal Reserve affected much of this week’s market movement. The Fed implied at the end of its two day meeting on Wednesday that its policy makers were in no hurry to raise interest rates with the economy still growing slowly and inflation extremely low. Friday’s rally was partly an extension of that according to analysts.
Nike jumped after it beat expectations, but investors focused more on foreign sales that remained strong despite the rising dollar and overseas market volatility. Tiffany retreated after it cut its full year profit forecast, saying the higher dollar was making its products less attractive to foreign buyers. Darden advanced after it said its same store sales rose 3.6% in the most recent quarter and lifted its outlook for the full year. Chinese travel booking site Ctrip jumped after reporting better than expected fourth quarter results and provided upbeat revenue growth guidance for the first quarter. KB Home advanced after reporting better than expected first quarter results. Simon Property Group said Friday it was making its “best and final offer” for rival mall owner Macerich, increasing the per share bid to US$95.50 from US$91. Simon’s shares advanced while Macerich retreated.
Gold at the afternoon London fixing was up US$17.10 to US$1,183.10. Copper futures were up 3.8% to US$2.76. WTI spot crude was up US$1.04 to US$46.57. Dated Brent spot crude was up 89 US cents to US$55.32. The US dollar continued to gyrate since the FOMC announcement. The currency was down against all of its major counterparts including the euro, yen, pound, Swiss franc and the Canadian and Australian dollars. The Dollar Index down 1.6%. The yield on US Treasury 30 year bond was down 4 basis points to 2.50% while the yield on the 10 year note declined 5 basis points to 1.93%.
Europe
Stocks here continued to climb. Investor optimism for an agreement on Greece was the driving force behind the gains. Greek Prime Minister Alexis Tsipras has agreed to submit a list of reforms within days. EU leaders sought more concrete steps on reforms and efforts to overcome the standstill on the aid program. Negotiations will continue during the Monday global market day in Berlin. The FTSE increased 0.9% and closed over the 7,000 level for the first time. The CAC was up 1.0%, the DAX climbed 1.2% and the SMI added 0.7%. On the week, the FTSE jumped 4.2%, the CAC climbed 1.5%, the DAX added 1.2% and the SMI was 2.6% higher.
Evotec surged after the biotech firm signed a definitive agreement with French drug maker Sanofi for a major multi-component strategic alliance over the next five years. Nordex gained after it announced that it had completed orders for 26 Generation Delta N131/3000 light-win turbines with a total capacity of 78MW in the first quarter. Banks including Deutsche Bank, Commerzbank, Société Générale, BNP Paribas and Crédit Agricole advanced.
Both E.ON and RWE gained. Lafarge climbed after it reached an agreement with Swiss cement giant Holcim on revised terms for the merger of equals. Holcim also was higher. Total and Technip were up. Tesco was up after it announced that it has regained sole ownership of 21 superstores in a transaction with British Land. Tullow Oil increased after the company announced that it had raised an additional US$450 million of capital from lenders. Miners advanced after a rebound in commodity prices.
Asia Pacific
Share indices were mixed Friday with Chinese shares extending recent gains on expectations of further monetary easing. The markets elsewhere fluctuated, tracking weak oil prices and a lackluster lead from US trading overnight as investors continue to speculate on the likely timing of a US interest rate increase given recent mixed economic data.
The Shanghai Composite was up 1.0% led by financials and property developers amid growing expectations that the government will unveil additional stimulus measures to stabilize the housing market and bolster growth. However, the Hang Seng retreated 0.4%. On the week, the Shanghai Composite soared 7.3% while the Hang Seng added 2.3%.
The Nikkei ended the day and week at a fresh 15 year high. The Nikkei was up 0.4% on the day and 1.6% on the week. Toshiba climbed — the company has started commercial production of T4K82, a 13-megapixel image sensor that allows smartphones and tablets to record HD video at a high frame rate. Honda Motor advanced after the automaker said on Thursday that it would recall an additional 105,000 vehicles in the US to fix airbag problems. Fast Retailing and SoftBank gained while Fanuc declined. Yahoo Japan rallied after increasing its dividend. Nintendo slumped on profit taking after climbing 36% in the previous two sessions.
Both the S&P/ASX and All Ordinaries added 0.4% on Friday for a fourth straight session as growing expectations of another RBA rate cut lifted bank stocks to fresh record highs. The former was up 2.8% while the latter added 2.5% on the week. The big four banks gained on the day. BHP Billiton and Rio Tinto advanced despite iron ore prices falling further to a new six year low of US$55 a ton overnight. The Kospi was virtually unchanged but was up 2.6% on the week. The Sensex lost 0.7% Friday and 0.8% on the week.
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 — The Eurozone posts the flash estimate of March EC consumer confidence. The US releases February existing home sales.
Tuesday — China, Japan, the Eurozone, France, Germany and the US report flash March manufacturing PMIs. The UK releases February consumer and producer price indices. The US posts February consumer prices. FHFA reports the February house price index. New home sales for February are also released.
Wednesday — Germany reports March Ifo index. The US releases February durable goods orders.
Thursday — France posts final estimate of fourth quarter GDP. The UK releases February retail sales. The Eurozone posts February M3 money supply. In the US, weekly jobless claims, money supply and Fed balance sheet will be reported.
Friday — Japan releases February unemployment, consumer prices, household spending and retail sales data. US posts the final estimate of fourth quarter GDP and final March consumer sentiment.
*Note — all releases are listed in local time.
Anne D PickerChief EconomistEconoday