On 27 April, 2017 – Most European and Asian indices retreated Thursday

However US indices hovered around the unchanged mark in listless trading.
United States
US stocks edged higher in lackluster trading. Nasdaq added 0.4 percent to reach a new record closing high. The Dow Jones industrials inched up 6.24 points while the S&P edged up 0.1 percent.
In economic news, weekly initial jobless claims climbed 14,000 to 257,000 from the previous week’s revised level of 243,000. March durable goods orders climbed 0.7 percent in March after jumping by a revised 2.3 percent in February thanks to aircraft orders. Excluding a jump in transportation equipment orders, durable goods orders edged down by 0.2 percent after climbing by 0.7 percent in February.
Comcast advanced on the day after the telecom giant reported first quarter results that exceeded expectations. Bristol-Myers was higher after reporting first quarter results that were higher than expected. Southwest Airlines was lower after reporting first quarter earnings and revenues that came in below estimates. Ford was lower despite reporting better than expected first quarter results.
Amazon.com profits jumped 41.1 percent in first-quarter profit, driven by sustained growth in online retail sales and its profitable cloud business. The company said net income rose to $724 million or $1.48 per share from $513 million or $1.07 per share a year earlier. This marks the eighth straight quarter Amazon has posted a net profit. The company’s net sales rose 22.6 percent to $35.71 billion in the quarter ended March 31 from $29.13 billion.
Starbucks reported fiscal second-quarter profit of $652.8 million. Net income was 45 cents per share. The company posted revenue of $5.29 billion in the period.
Alphabet reported a 22.2 percent increase in quarterly revenue, driven by a surge in advertising on mobiles and its popular YouTube video service. Alphabet’s net income rose to $5.43 billion or $7.73 per Class A and B share and Class C capital stock in the first quarter ended March 31 from $4.21 billion or $6.02 per share a year earlier. The company’s consolidated revenue rose to $24.75 billion from $20.26 billion.
Intel reported a near 45 percent increase in first-quarter profit helped by strength in its data center business and a stabilizing personal computer market. The company’s net income rose to $2.96 billion or 61 cents per share in the quarter ended April 1 from $2.05 billion or 42 cents per share a year earlier. Revenue rose to $14.80 billion from $13.70 billion.
Microsoft reported a 27.8 percent increase in quarterly profit lifted by robust demand for its cloud computing services. The company’s net income rose to $4.80 billion or 61 cents per share in the third quarter ended March 31 from $3.76 billion or 47 cents per share a year earlier. Revenue on an adjusted basis climbed 6 percent to $23.56 billion.
These data reflect observations at 4:00 PM US ET. Gold at the afternoon London fixing was up 95 US cents to US$1,262.80. Copper futures were down 0.1 percent to US$2.60. WTI spot crude was down 42 US cents to US$49.20. Dated Brent spot crude was down 17 US cents to US$51.65. The US dollar was up against the yen, euro, Swiss franc and the Canadian and Australian dollars. The currency declined against the pound. The Dollar Index was up 0.1 percent. The yield on US Treasury 30 year bond was unchanged at 2.96 percent while the yield on the 10 year note edged down 1 basis point to 2.29 percent.
Europe
Most indices reversed direction and declined Thursday. Investors were disappointed after the European Central Bank again made no changes to its monetary policy. The FTSE tumbled 0.7 percent, the CAC retreated 0.3 percent and the DAX was 0.2 percent lower. However, the SMI added 0.2 percent.
As widely anticipated, the European Central Bank made no changes to its monetary policy at its April meeting. The benchmark refi rate remained at zero percent, the deposit rate at minus 0.40 percent and the rate on the marginal lending facility at 0.25 percent. The ECB also signaled no move on its forward guidance implying that interest rates are still expected to remain at present or lower levels for an extended period of time. The ECB also confirmed that monthly QE asset purchases have been reduced by €20 billion to €60 billion and will be held at this level at least through year-end, as forewarned last December. ECB President Mario Draghi’s press conference contained no surprises. He stressed the need for continued monetary accommodation in order to meet the medium-term near-2 percent inflation target but also suggested that downside risks are diminishing and are largely attributable to the global economy.
Deutsche Bank declined even though it more than doubled its first-quarter profit. However, revenue dropped due to the negative impact of credit spreads. Lufthansa tumbled after its first quarter net loss widened from last year. BASF retreated despite posting solid first quarter results. Bayer rallied — the firm raised its full-year outlook after reporting a 38 percent jump in first quarter profit. Airbus increased after reporting a 52 percent drop in first quarter profit which was hit by production glitches and higher costs on new models. Orange declined after the telecoms network operator reported muted growth in first-quarter operating profit. Total slipped despite reporting first quarter profit above estimates.
AstraZeneca edged higher after the drug giant reported weak profit and revenues in its first quarter amid declining sales of cholesterol treatment Crestor, which lost patent protection last year. Lloyds Banking Group climbed after it more than doubled its first-quarter profit despite challenging trading conditions and the HBOS scandal. Mediclinic soared after the Abu Dhabi government canceled a requirement for citizens to make co-payments for private medical treatment. Nokia advanced in Helsinki after the telecoms giant narrowed its first-quarter loss and said it was cautiously optimistic for the full year.
April Eurozone EU economic sentiment rose to its highest level since the middle of 2007 with strong improvements in all components. The economic sentiment indicator climbed to 109.6 from a revised 108 in March.
Asia Pacific
Asian stocks were mixed Thursday after the Trump administration unveiled the president’s highly anticipated tax reform plan that includes significant reductions in both individual and corporate income tax rates. The proposals were greeted as a starting point to simplify the US tax code.
The Shanghai Composite was up 0.4 percent after March profits earned by Chinese industrial firms climbed but at a slower pace than in the first two months of the year. Industrial profits jumped an annual 23.8 percent, well below the 31.5 percent surge in the January to February period. However, it was much faster than the 8.5 percent growth in the whole year 2016. The Hang Seng added 0.5 percent.
The Nikkei was down 0.2 percent while the Topix was virtually unchanged (down 0.74 point) after the Bank of Japan left its monetary policy unchanged but sounded more upbeat about the economy. Takata plummeted on reports that the airbag maker was considering filing for bankruptcy protection and then would sell its core operations. Canon advanced after lifting its fiscal year 2017 outlook.
The S&P/ASX was up 0.2 percent while the All Ordinaries was 0.1 percent higher. The big four banks advanced before they release earnings next week. Gold miners Evolution and Northern Star climbed as gold prices rebounded in Asia on skepticism over Trump’s proposed tax reform. Santos declined after the Australian government proposed a radical plan to restrict exports of liquefied natural gas (LNG) to address an energy shortage. Lower copper prices weighed on mining stocks, with BHP Billiton, Rio Tinto and Fortescue Metals Group all retreating.
The Kospi average edged up 0.1 percent after Bank of Korea data showed South Korea’s economy accelerated at a faster than expected pace in the first quarter thanks to strong exports and capital investment. The Sensex lost 0.3 percent.
Looking Forward
Japan releases March data for unemployment, consumer prices, household spending, industrial production and retail sales. Australia reports first quarter producer prices. France and the UK release first estimates of gross domestic product. Germany posts March retail sales while France releases March consumption of manufactured goods. The Eurozone posts March M3 money supply and flash April harmonized index of consumer prices. Canada reports February monthly gross domestic product. In the US, first estimate of first quarter gross domestic product, April Chicago PMI and final April consumer sentiment.
Global Stock Markets

*Note — all releases are listed in local time.

Source: Fidelity

Fidelity disclaimer:

The objective of this page is to present users with objective news, information, data and guidance on personal finance topics drawn from a diverse collection of sources including affiliated and non-affiliated financial services publications. Content is not intended to provide tax, legal, insurance or investment advice and should not be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any security or investment by any Fidelity entity or any third-party.

Jesmond Mizzi Financial Advisors Disclaimer:

This article, does not intend to give investment advice and the contents therein should not be construed as such. Jesmond Mizzi Financial Advisors Limited is licensed to conduct investment services by the MFSA and is a Member Firm of the Malta Stock Exchange. The directors or related parties, including the company, and their clients are likely to have an interest in securities mentioned in this article. For further information contact Jesmond Mizzi Financial Advisors Limited at 67, Level 3, South Street, Valletta, or on Tel: 21224410, or email [email protected]