On 10 April, 2015 – European markets rose as Greece repaid a loan to the International Monetary Fund

Stocks were mostly higher Friday thanks to corporate deals and anticipated easing by the People’s Bank of China.
United States
Stocks were up Friday and for a second straight week. Investors were encouraged by the latest corporate deal news. The Dow Jones industrials were up 0.6% (1.7% for the week), the S&P gained 0.5% (1.7%) and the Nasdaq added 0.4% (2.2%). Many investors view the latest earnings season as the next potential catalyst for the stock market. But these money managers also say they are waiting for first quarter results and guidance from companies before making any shifts to their share portfolios. Most of the week’s gains can be attributed to the Federal Reserve. After the disappointing March jobs report released April 3, traders now believe that the Fed is not going to raise interest rates until September instead of the originally anticipated June time frame.
General Electric soared after the company said it would sell most of GE Capital and shift its focus back to its industrial business. GE Capital was a huge business until the financial crisis when new regulations made being a non-bank company in the lending business more difficult. GE spun off its credit card operation into a new company last year called Synchrony Financial. Citrix Systems declined after it cut its first quarter profit and sales outlook noting the negative impact of a strong US dollar. Gap declined after it said its same store sales for March rose more than expected on strong sales at Old Navy Stores but the namesake chain disappointed as same store sales drop from a month prior.
JP Morgan, Intel, Bank of America, Wells Fargo, Netflix, Goldman Sachs, American Express, and GE are among the companies due to release their quarterly results in the coming days.
Gold at the afternoon London fixing was up US$12.55 to US$1,207.55. Copper futures were up 0.2% to US$2.73. WTI spot crude was up 85 US cents to US$51.64. Dated Brent spot crude was up US$1.30 to US$57.87. The US dollar was up against the euro, pound, Swiss franc and the Australian dollar. However, it declined against the yen and the Canadian dollar. The Dollar Index was up 0.5%. The yield on US Treasury 30 year bond was down 2 basis points to 2.58% while the yield on the 10 year note was unchanged at 1.95%.
Europe
Stock markets here advanced on the day and for the week. Investors breathed a sigh of relief after Greece repaid a €450 million loan to the International Monetary Fund Thursday. IMF Chief Christine Lagarde said Athens would be afforded “flexibility” over its cash for reforms program. The FTSE was up 1.1% (3.8% on the week), the CAC gained 0.6% (3.3%), the DAX jumped 1.7% (3.4%) and the SMI added 0.8% (3.7%).
Deutsche Post finished higher on a broker upgrade. Fresenius and Fresenius Medical Care advanced as did Bayer and Merck. Carrefour rose after it reported growth in first quarter sales. Technip and Total gained. Shire surged after the US FDA accepted its New Drug Application for lifitegrast and granted a Priority Review designation. Taylor Wimpey, Persimmon and Barratt Developments were up on broker upgrades. Vedanta Resources retreated after fourth quarter oil and gas production declined from last year. Givaudan finished lower after the company reported a marginal growth in first quarter sales. ITV climbed to a I5-year high on a broker upgrade. However, mining stocks including Anglo American, Glencore and Rio Tinto declined, hit by a renewed slide in prices for iron ore.
Asia Pacific
Asian stocks closed mostly higher Friday after Greece repaid a €450 million loan it owed the International Monetary Fund. Continued hopes that the People’s Bank of China could ease its monetary policy further underpinned investor sentiment heading into the weekend.
The Shanghai Composite jumped 1.9% hitting a fresh seven year high as tepid inflation data bolstered the case for more stimulus measures. March annual consumer inflation stayed flat at 1.4%, coming in well below Beijing’s target of around 3% for this year. Producer prices fell slightly less than expected, contracting 4.6% on the year. The Hang Seng added 1.2%, extending a rally of more than 6% over the past two days. The buying frenzy was sparked by strong capital flows from mainland investors to Hong Kong. On the holiday shortened week, the Shanghai Composite and Hang Seng were up 4.4% and 7.9% respectively.
The Nikkei index breached the 20,000 level for the first time in 15 years on hopes for larger shareholder returns and a recovery in domestic consumption. However, with investors taking profits, the index erased all gains to end the session down 0.2%. On the week, the Nikkei was up 2.4%.
Both the S&P/ASX and All Ordinaries added 0.6% Friday after oil prices regained some ground on Thursday on uncertainty about negotiations on Iran’s nuclear program. For the week, the S&P/ASX was 1.2% higher and the All Ordinaries, 1.1%. The Kospi jumped 1.4% and was up 2.1% on the week. The Sensex was virtually unchanged on the day and added 2.2% 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 ─ China posts March merchandise trade balance. Japan releases February machine orders and March producer price index. India reports March consumer prices. The US Treasury budget is released.
Tuesday ─ India posts March WPI. The European Central Bank publishes its lending survey for the first quarter. The UK reports consumer and producer prices for March. The Eurozone releases February industrial production. In the US, March PPI and retail sales will be released along with the NFIB survey and February business inventories.
Wednesday ─ China reports first quarter gross domestic product and March industrial production and retail sales. The Eurozone posts February merchandise trade balance. The European Central Bank and Bank of Canada publish their respective monetary policy decisions. In the US, April Empire State survey and March industrial production will be reported. February Treasury international capital will be posted. The Federal Reserve will publish its Beige Book in preparation for its FOMC meeting on April 28 and 29.
Thursday ─ Australia posts its March labour force survey. The US releases March housing starts, the April Philadelphia Fed survey and the weekly money supply and Fed balance sheet.
Friday ─ the UK posts its March labour market report. The Eurozone releases the final harmonized index of consumer prices. Both Canada and the US release their respective March consumer price indices. Canada also posts February retail sales. The US reports preliminary consumer sentiment and March leading indicators.
*Note — all releases are listed in local time.
Anne D PickerChief EconomistEconoday