Europe opened marginally lower for the start of a new quarter, with the FTSE 100 down 0.96% and the DAX down 1.3% following weaker oil prices and poor business sentiment coming from Japan. Expectations of it worsening have led to increased fear – adding further pressure to the Bank of Japan to help further aid the economy.
UK News
Vodafone (LON:VOD) is negotiating the sale of a 49% stake in it payments bank division in India to the Piramal Group and HDFC Bank, according to the Economic Times.
Old Mutual\ (LON:OML) may sell its wealth management unit in Italy, reported Reuters, citing sources familiar with the situation.
Sainsbury's (LON:SBRY) said on Friday its 1.4 billion-pound ($2 billion) offer for Argos-owner Home Retail Group had been recommended by the board of the catalogue retailer.
Standard Life (LON:SL) said it has obtained all necessary regulatory approvals for its proposed stake increase in HDFC Standard Life Insurance Co to 35% from 26% for £179M.
British house prices rose at their fastest annual pace in more than a year in March, as buyers of properties to rent and second homes tried to beat the introduction of a new tax, mortgage lender Nationwide said on Friday.
Global News
In Asia markets were lower on Friday as a gloomy suite of surveys on Japanese manufacturing sparked heavy fund selling and overshadowed upbeat news from China’s vast factory sector. The Nikkei fell 2.9% to 16,271.76 in mid-morning trade, after hitting as low as 16,262.68 earlier, the lowest since March 1. Shanghai’s market fell 1%. China’s manufacturing activity unexpectedly expanded in March for the first time in nine months, an official survey showed on Friday, adding to hopes that downward pressure on the world’s second-largest economy is easing.
Business sentiment among Japan’s big manufacturers deteriorated to the lowest in nearly three years and is expected to worsen in the coming quarter, heightening pressure on Prime Minister Shinzo Abe and the Bank of Japan to do more to shore up the ailing economy.
Oil futures fell in Asian trade as oversupply, a strengthening dollar and falls in regional stock markets all weighed on sentiment. But another fall in U.S. oil output in January helped to limit the losses.
US stocks ended the first quarter with a whimper on Thursday after a seven-week rally that rescued the S&P 500 from its worst start to a year since 2009. The S&P 500 lost 0.2% to 2,059.74. Shares of Best Buy (NYSE:BBY) added 2.76% after Barclays (LON:BARC) initiated coverage of the stock with an “overweight” rating. Data on Thursday showed U.S. jobless claims rose unexpectedly last week but remained well below the 300,000 mark, denoting a healthy labor market.
Global Market Data:
09:30 GMT+1 UK Manufacturing PMI
13:30 GMT+1 US Average Hourly Earnings m/m
13:30 GMT+1 US Non-Farm Employment Change
13:30 GMT+1 US Unemployment Rate
15:00 GMT+1 US ISM Manufacturing PMI
Disclaimer: The above is not considered financial advice or any endorsement to use any particular service. If you wish to use any of the services mentioned, please seek independent advice.
Risk warning: Spread betting, CFD, futures and options trading carries a high level of risk to your capital and can result in losses that exceed your initial deposit. They may not be suitable for everyone, so please ensure that you fully understand the risks involved. Past performance of a managed service is not a guide to future performance.