On 6 May, 2015 – European markets were mixed ahead of UK’s general election

Stocks declined in Asia Pacific but mostly advanced in Europe. However, US shares dropped on disappointing economic data and remarks from Fed Chair Janet Yellen.
United States
Stocks fell broadly Wednesday after the release of weak US economic reports and mixed corporate earnings results. Yields on US government bond yields rose to their highest levels in two months and oil prices continued to climb. The Dow Jones industrials declined 0.5% while both the S&P and Nasdaq lost 0.4%. Stocks briefly tumbled to deeper losses after Fed Chair Janet Yellen said stock market valuations were “quite high” in response to a question about risks to financial stability at a conference in Washington.
Oil drillers and other energy related companies inched up on higher energy prices. Synageva BioPharma, a maker of rare disease treatments, soared after Alexion Pharmaceuticals said it would pay a huge premium to buy the company in an US$8.4 billion deal. Synageva has no products on the market and lost nearly US$60 million in the first quarter. Both Electronic Arts and LendingClub advanced after each reported results on Tuesday that beat expectations. News Corporation declined after its results, released Tuesday, missed forecasts. Noodles & Company plunged after also reporting disappointing results.
According to ADP, hiring slowed in April to its weakest pace in nearly a year and a half, as a strong dollar dragged down overseas sales and energy companies cut back on spending. A separate government report showed US worker productivity declined in the first three months of the year as labor costs jumped and output stalled.
Gold at the afternoon London fixing was down US$2.75 to US$1,194.25. Copper futures were down 0.3% to US$2.93. WTI spot crude was up 27 US cents to US$60.67. Dated Brent spot crude was up 4 US cents to US$67.56. The US dollar dropped against all of its major counterparts including the euro, yen, pound, Swiss franc and the Canadian and Australian dollars. The Dollar Index dropped 1.3%. The yield on US Treasury 30 year bond was up 10 basis points to 2.99% while the yield on the 10 year note was up 7 basis points to 2.24%. 
Europe
European stock indices were mixed Wednesday. Mixed economic reports, concerns over Greece and uncertainty prior to Thursday’s British general election weighed on investor sentiment. The FTSE edged up 0.1% while both the CAC and DAX added 0.2%. The SMI dropped 1.5%.
Greece announced Wednesday that it has made a loan repayment of €200 million to the International Monetary Fund. However, the country must still repay €750 million to the IMF by May 12. Talks continue between Greece and its lenders over reforms. The European Central Bank’s Governing Council is meeting in Frankfurt to discuss emergency funding for Greek banks.
Allianz increased after the insurer confirmed its full year profit guidance after posting an 11% increase in net profit in the first three months of the year. BMW dropped even though it beat market expectations with a 4% increase in quarterly profit on sharply higher sales. Volkswagen retreated. Both RWE and E.ON advanced. Société Générale tumbled after reporting a loss at its struggling Russian unit. Prudential declined after reporting a 6% drop in new business profit for the first quarter. HSBC Holdings advanced after the lender announced that its unit HSBC Trust Company will sell its UK probate services business to Simplify Channel for an undisclosed sum. Imperial Tobacco gained after its profit for the first half of the year climbed. Sage Group advanced after it reported results for the first half of the year and affirmed its 2015 guidance. J. Sainsbury declined despite its better than expected full year profit.
Eurozone retail sales declined in March for the first time in six months as both food and non-food product turnover declined from February. Retail sales volume dropped 0.8% on the month, reversing a 0.1% increase in February. Eurozone private sector growth slowed slightly less than initially estimated in April. The composite output index slipped to 53.9 in April from 54 in March.
Many traders are focused on Thursday’s UK election, where polls show the two main parties — Labour and the Conservatives — running neck-and-neck, with neither likely to command a majority in parliament. Nerves over the election have hit sterling, but the stock market reaction has been more muted.
Asia Pacific
Shares were down across the board Wednesday as fresh signs of weakness in the US economy and worries about surging oil prices sapped investors’ appetite for risk. Investors were also spooked by a sudden jump in sovereign bond yields and lingering uncertainty surrounding Greece’s fate in the Eurozone. Markets in Japan remained closed for the Golden Week holidays.
The Shanghai Composite dropped 1.6% as fears over tighter margin requirements and worries over new share issues overshadowed positive data showing modest growth in China’s services sector in April. The Hang Seng was down 0.4%. Activity in China’s services sector expanded at an accelerated pace in April with the HSBC PMI score of 52.9, up from 52.3 in March and marking the fourth consecutive monthly increase.
The S&P/ASX dropped 2.3% and the All Ordinaries was down 2.2% with sentiment hurt by weak global news and expectations that the Reserve Bank of Australia is approaching the end of its easing cycle. While bank stocks fell on disappointing quarterly results from Commonwealth Bank of Australia, smaller miners rallied amid the recent uptick in iron-ore prices from a decade low. Commonwealth Bank posted a flat A$2.2 billion cash profit for the third quarter with margins coming under pressure due to higher costs and strong competition for loans. ANZ, NAB and Westpac retreated. BHP Billiton was down ahead of a shareholder meet o vote upon the demerger of the company into two new entities. Rio Tinto also declined while BC Iron and Fortescue Metals Group climbed. Australian retail sales were up 0.3% in March, slightly below expectations of a 0.4% increase.
The Kospi slipped 0.3% as rising bond yields on both sides of the Atlantic and continuing uncertainty over Greece’s future dented demand for riskier assets. The Sensex tumbled 2.7% to its lowest level of the year so far. The Indian market dropped as rising oil prices, weak services sector data and renewed foreign fund selling on concerns over retrospective tax issues sapped 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’s April composite PMI is on tap. The UK general election will be held. German March manufacturers’ orders will be reported along with March French industrial production and merchandise trade. In the US, March consumer credit and weekly jobless claims, Fed balance sheet and money supply will be posted. 
*Note — all releases are listed in local time