On 27 April, 2015 – European markets rose on optimism that it would be able to avert a default

Stocks were mixed Friday and for the week as investors continued to monitor earnings reports and react to mediocre economic data.
United States
Stocks edged lower Monday, led by losses in the Nasdaq and biotech shares. The Nasdaq lost 0.6%, the Dow Jones industrials were down 0.2% and the S&P declined 0.4%. With virtually no economic data, investors focused on earnings and especially those that would be released after the market closed for the day.
Amgen dropped after the US Food and Drug Administration said Amgen’s skin cancer immunotherapy cannot be considered for an accelerated review at this time, citing concerns over the design and results of a key study. Celladon dropped hitting a record low after it announced layoffs and cost cuts after the company’s lead experimental gene therapy to treat heart failure failed a key trial. And another out of the healthcare sector as Mylan declined after it rejected Teva Pharmaceutical’s unsolicited US$40 billion takeover offer saying it “grossly undervalues” the company. Teva retreated as well. Applied Materials and Tokyo Electron called off their US$10 billion merger. The companies said they ran into trouble getting approval from antitrust regulators in the United States.
US investors are preparing for the Federal Reserve policy meeting during which policymakers may consider increasing the fed funds rate from the near-zero level for the first time in six and a half years. While the Fed has no plans to update its forecasts, the meeting will be closely watched to see if markets have been too eager to push out Fed rate increase expectations.
Apple posted revenue growth of 27 percent to US$58 billion thanks to stronger than anticipated iPhone sales which were up 40 percent to 61.2 million units. Net profit for the quarter ending in March was US$13.6 billion, boosting earnings per share to US$2.33.Apple also said that it would expand its dividends and buyback scheme to return a total of US$200 billion to shareholders by the end of March 2017, up from the US$130 billion program of a year ago.
Gold at the afternoon London fixing was up US$17.00 to US$1,200.00. Copper futures were up 1.0% to US$2.78. WTI spot crude was down 33 US cents to US$56.82. Dated Brent spot crude was down 58 US cents to US$64.70. The US dollar was up against the yen and Swiss franc. It declined against the euro, pound and the Canadian and Australian dollars. However, it declined against the yen and the Swiss franc. The dollar Index was down 0.3%. The yield on US Treasury 30 year bond was unchanged at 2.61% while the yield on the 10 year note was up 1 basis point to 1.92%.
Europe
Stocks advanced Monday, largely due to optimism that a resolution to Greece’s debt problems will be reached. The FTSE and SMI were up 0.5% while the CAC and DAX added 1.3% and 1.9%, respectively.
On Monday, Greece reshuffled its team that is negotiating the bailout, raising hopes that it will be able to avert a default. Some see the shake-up as a way to reduce the clout of Finance Minister Yanis Varoufakis, who has been criticized for failing to put together a list of changes that the country’s European creditors want before they release new loans. Greece’s government is expected to run out of money to pay its bills in another few weeks.
Deutsche Bank declined after it reported a 50% decline in its first quarter profit, despite clocking double digit revenue growth. It recorded hefty legal charges over allegations of rate rigging. Its peer Commerzbank advanced however. Volkswagen climbed after its Chairman and grandson of the company’s founder, Ferdinand Piech, resigned from his position as well as all other responsibilities within the Group with immediate effect. This follows a failed move to oust Chief Executive Martin Winterkorn.
Automakers Daimler and BMW advanced. CapGemini gained after announcing the acquisition of US-based iGATE for US$4 billion. The company also lifted its revenue outlook. Both Société Générale and Crédit Agricole advanced. HSBC gained after the lender is said to be considering the spin-off of its UK retail bank. Standard Chartered also gained. Sports Direct International was up on a broker upgrade. Posting a decline was Nokia which denied reports it intends to manufacture consumer handsets out of a R&D facility in China. The stock finished lower by 0.70% in Helsinki.
Asia Pacific
Stocks were mixed at the beginning of the week despite the strong performance of US shares on Friday. While Australian shares tracked a sharp rebound in iron ore prices, Chinese and Hong Kong shares continued their bull run, ignoring weak data. Japanese and Korean shares declined slightly as caution set in ahead of the meetings of the Bank of Japan and Federal Reserve. The FOMC will release a monetary policy statement following its two-day meeting on Wednesday, while the Bank of Japan concludes its two day policy meeting on Thursday.
The Shanghai Composite jumped 3.0%, hitting a fresh seven year high as weak industrial profit data added to pressure on policymakers to unveil more stimulus to boost growth. The Hang Seng gained 1.3% to close at 28,433.59 — its highest level since December 12. The Shanghai Composite soared after local reports that China is planning a new wave of mergers in the state sector, reducing the number of companies owned by the central government by nearly two-thirds.
The Nikkei slipped 0.2% thanks to a firmer yen that more than offset another record close in the US on Friday. Investors remained cautious ahead of earnings season here, with more than 300 domestic companies expected to unveil their results this week. Sony slid on a Nikkei report that its group operating profit will reach about ¥300 billion for the year ending March 2016 which is below estimates. Mazda Motor retreated after it forecast a modest 3.5% increase in operating profit in the year ahead. Sharp, Advantest and Inpex declined, while Mitsubishi Materials, J Front Retailing and Mitsubishi Chemical Holdings climbed. NEC rallied nearly 5% on news that the company plans to launch a cloud computing business in China.
Both the S&P/ASX and All Ordinaries gained 0.8%, led by miners in response to a sharp rebound in iron ore prices. BHP Billiton, Rio Tinto and Fortescue Metals Group soared after iron ore prices surged more than 14% last week, extending a rally over the past two weeks. The Kospi slipped 0.1% as renewed worries about Greece’s ability to pay its creditors prompted investors to lock in some profits at higher levels after recent sharp gains. The Sensex tumbled 1.0% on the back of broad based selling pressure as concerns over retrospective taxation and mixed earnings reports damped investors’ appetite for risk.
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*
Japan posts March retail sales. The UK releases its first estimate of first quarter gross domestic product. In the US, February S&P Case Shiller price index will be posted along with April consumer confidence and Richmond Fed manufacturing survey.
*Note — all releases are listed in local time.