European market opened strongly after positive economic data from U.S and Germany which could lead to higher fuel demand – pushing oil prices up. FTSE is currently up 0.7% at 6177 and DAX is up a 1% at 9602.
UK News
The Markit/REC Report on Jobs pointed out: “The number of people placed in permanent jobs continued to increase during March. That said, the rate of growth eased to a six-month low. Temporary/contract staff billings on the other hand rose at the sharpest pace in four months. March data pointed to softer growth of demand for staff. The latest increase in overall vacancy numbers was the least marked for 33 months.”
British Airways is negotiating a deal to codeshare Europe-China flights with China Eastern Airlines (NYSE:CEA) and China Southern Airlines (NYSE:ZNH), reported Dow Jones citing IAG (LON:ICAG) CEO Willie Walsh.
BAE Systems (LON:BAES) said it has secure a contract to produce 30 Assault Amphibious Vehicles for the Japanese military. Financial terms were not disclosed.
AstraZeneca (LON:AZN) and Eli Lilly and Co (NYSE:LLY) announced that they will continue the pivotal clinical trial on AZD3293, “an oral beta secretase cleaving enzyme (BACE) inhibitor currently in development as a potential treatment for early Alzheimer’s disease”.
Associated British Foods (LON:ABF) said it has acquired the remaining 48.65% stake in Johannesburg-listed Illovo Sugar Ltd (JO:ILVJ) for rand 25 per share or rand 5.6B in total (£262M) in cash.
Global News
In Asia stocks extended losses to three-week lows on Friday, while the yen rose to a 17-month high against the dollar as investors bet Japan would be hard pressed to drive down its currency in the face of widespread foreign opposition. Nikkei pared earlier losses to near-two-month lows to trade 0.6% lower. China’s Shanghai Composite index fell 0.9%.
The dollar rose about 0.4% to 108.67 yen after falling as low as 107.67 on Thursday, its weakest since October 2014. The euro added about 0.3% against the yen to 123.47 yen. The euro edged down about 0.1% against the dollar to $1.1366 .
Oil prices edged up early on Friday, lifted by firm economic indicators from the United States and Germany which could support fuel demand, but analysts warned that crude markets were threatened by another downturn because of ongoing oversupply. Front month U.S. WTI crude futures were trading at $37.64 per barrel, up 38 cents from their last close. International Brent futures were up 24 cents at $39.67 a barrel. Iraq said on Thursday that exports from its southern ports had hit almost 3.5 million bpd by April, up from an average of 3.29 million bpd in March, putting doubts on the feasibility of a planned meeting by major producers on April 17 to freeze output levels.
In US Equity Markets stocks fell on Thursday as oil prices decreased and worries about the global economy resurfaced, dragging down the dollar against the yen and causing investors to flee riskier assets. The S&P 500 lost 1.2%. Verizon Communications Inc (NYSE:VZ) shares were down 2.8% after Bloomberg reported Verizon plans to make a first-round bid for Yahoo Inc’s web business next week. Yahoo (NASDAQ:YHOO) was down 1.3%. After the bell, shares of Gap (NYSE:GPS) fell 9.1% following the release of its March sales results.
Economic Calendar
09:30 GMT+1 UK Manufacturing Production m/m
13:30 GMT+1 CAD Employment Change
13:30 GMT+1 CAD Unemployment Rate
13:30 GMT+1 US FOMC Member Dudley Speaks
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