On 21 May, 2015 – European markets rose modestly despite weak eurozone data

Stocks were mixed as investors evaluated the FOMC minutes released late in the Wednesday global market day. Issues with Greece continued to weigh on investors’ morale.
United States
Stocks advanced Thursday — the price of oil climbed, boosting energy stocks. The S&P closed at yet another record high. Stocks have gained this month on speculation that Federal Reserve policy makers will refrain from raising interest rates until later this year at the earliest. The Fed has kept its benchmark rate close to zero for more than six years, boosting the value of stocks and bonds. Before surprisingly weak first quarter growth, many investors were expecting rate increases by the middle of this year. The Dow Jones industrials were virtually unchanged while the S&P and Nasdaq added 0.2% and 0.4% respectively.
Salesforce.com gained after reporting results that beat forecasts. Best Buy also jumped after reporting strong earnings. The electronics retailer said sales of mobile phones, big televisions and major appliances helped sales, offsetting weakness in tablets and computers. CVS Health agreed to buy pharmacy-benefits provider Omnicare. Both companies rallied on the news. Dollar Tree gave a muted outlook for its current quarter and said it expects its deal to buy Family Dollar Stores to close in July.
Hewlett-Packard reported adjusted fiscal second quarter earnings of 87 US cents per share on revenue of US$25.45 billion. H-P estimated adjusted earnings of 83 US cents to 87 US cents per share for the fiscal third quarter and US$3.53 to US$3.73 a share for the year.
Jobless claims were up 10,000 to 274,000 last week though the number of applications remains at a historically low level that is consistent with a healthy job market. The four-week average, a less volatile figure, declined to a 15-year low of 266,250. US May flash manufacturing PMI eased to a reading of 53.8, down from 54.2 in April.
Gold at the afternoon London fixing was down US$5.50 to US$1,205.00. Copper futures were up 0.7% to US$2.85. WTI spot crude was up US$1.72 to US$60.70. Dated Brent spot crude was up US$1.48 to US$66.51. The US dollar was up against the Canadian dollar. It was virtually unchanged against the Swiss franc. However, it declined against the euro, yen, pound and the Australian dollar. The Dollar Index was down 0.3%. The yield on US Treasury 30 year bond was down 8 basis points to 2.98% while the yield on the 10 year note declined 7 basis points to 2.19%. 
Europe
Most European markets ended Thursday’s session with modest gains. The markets were under pressure in early trading following the release of some soft Chinese data and the disappointing Eurozone private sector PMI report. The positive performance of US markets provided some support in the afternoon. The FTSE and DAX edged up 0.1% while the CAC added 0.3% and the SMI, 0.5%.
According to May flash PMI data, the Eurozone economy lost growth momentum for a second successive month. The composite purchasing managers’ index was 53.4, down from 53.9 in April. Germany’s private sector grew at the slowest pace in five months. The flash composite output index declined to 52.8 — a 5-month low — from 54.1 in April. Despite signaling an expansion, the rate of growth was the weakest in 2015 so far. In France, the flash composite output index rose to 51 from 50.6 in April.
According to the minutes from the April 14 to 15 Governing Council meeting, the European Central Bank agreed that a steady course of monetary policy with a focus on the firm implementation of its stimulus measures must be pursued more intently. The Governing Council reaffirmed its intention to conduct purchases until the end of September 2016 and, in any case, until a sustained adjustment was visible in the path of inflation consistent with the Governing Council’s aim of achieving inflation rates below, but close to, 2% over the medium term.
Commerzbank and Deutsche Bank were down. Deutsche Telecom, which held its annual meeting today, closed higher. BMW, Volkswagen and Peugeot retreated but Renault gained on the day. Both Technip and Total advanced. Booker Group surged after the company reported that its fiscal 2015 profit before tax climbed 14% to £138.8 million from last year’s £122.1 million. The company’s Board recommended a final dividend of 3.14 pence per share, an increase of 14%.
UK retail sales rebounded 1.2% on the month and more than reversing a 0.7% drop in March.
Asia Pacific
Stocks here were mixed Thursday. Investors interpreted weak Chinese data as signs of continued weakness in the economy and only served to boost expectations of more stimulus. While minutes from the Federal Reserve’s April meeting contained no outright surprises, investors were relieved that a rate increase is not imminent.
The Shanghai Composite added 1.9% and hit a seven year high as weak data spurred stimulus bets. However, the Hang Seng retreated 0.2%, extending losses into a second consecutive session. China’s manufacturing sector continued to contract in May, albeit at a slower pace. The May flash manufacturing PMI reading was 49.1, a two month high.
The Nikkei was virtually unchanged (up 6.31 points) after hitting a fresh 15-year high early in the day. The safe haven yen was slightly firmer against the dollar after preliminary results from a monthly survey published by JMMA and Markit showed Japanese manufacturing activity swung back to expansion in May, with a PMI score of 50.9 and up from 49.9 in April. Banks advanced. Panasonic rallied on news that it intends to increase investment in its automotive business by 60% to about ¥100 billion. Takata dropped, extending Wednesday’s loss, after the auto parts supplier said it would double a recall of potentially defective air bags to nearly 34 million vehicles in the US.
Both the S&P/ASX and All Ordinaries rallied 0.9% as investors purchased stocks after recent sharp losses. Shares have been hurt by weak commodity prices, concerns about the health of the Chinese economy and speculation that the monetary easing cycle has come to an end. The Kospi declined 0.8% while the Sensex eased 0.1%. Disappointing quarterly results from Tata Steel, downbeat Chinese manufacturing data and renewed worries over Greece offset investor optimism that the Federal Reserve is unlikely to raise interest rates anytime soon.
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*
The Bank of Japan announces its monetary policy decision. Germany Ifo survey for May will be posted. In the US, April consumer price index will be released.
*Note — all releases are listed in local time.