In Asia stocks fell fas mixed economic data did nothing to assuage concerns about global growth, keeping sovereign bonds well supported as a hedge against deflation risks. Markets in Japan were shut for a public holiday. The Shanghai Composite Index eased 0.19%, while Hong Kong’s Hang Seng index was last down 0.41%. The Caixin/Markit services purchasing managers’ index (PMI) fell to 51.8, from 52.2 in March, but at least stayed in growth territory.
The dollar was supported by optimism the U.S. economy could bounce back after nearly stalling in the first quarter. The dollar edged up 0.1% to 107.13 yen. The euro rose to 123.03 yen. The euro held steady at $1.1485, continuing to consolidate after a run-up to an eight-month peak of $1.1616 earlier in the week. The Australian dollar edged up 0.5% to $0.7499, helped by upbeat Australian data, including a better-than-expected rise in retail sales in March.
Oil prices jumped as a huge wildfire in Canada disrupted its oil sands production, while escalating fighting in Libya threatened the North African nation’s output. International benchmark Brent crude futures were trading at $45.32 per barrel, up 1.6% from their last close. U.S. WTI crude futures rose 2% to $44.69. Traders said that WTI prices were driven up by uncontrolled wildfires in Canada that disrupted oil production in the province of Alberta. Brent was pushed higher by escalating fighting in Libya.
In the U.S. stocks declined amid mixed data and lingering concerns weak global growth will weigh on the American economy. The S&P 500 fell 0.6% to 2,051.12. Under Armour Inc (NYSE:UA). fell 7.5% after announcing the departures of two top executives, raising concern that the athletic-gear maker is losing management talent in key growth areas. Intercontinental Exchange Inc. (NYSE:ICE) rose 7.3% after abandoning its potential offer for London Stock Exchange Group Plc (LON:LSE).
Economic Calendar
- 09:30 GMT+1 UK Services PMI
- 13:30 GMT+1 US Unemployment Claims
- 16:30 GMT+1 US FOMC Member Bullard Speaks
European Equity Pre-Market Earnings
- BT (LON:BT) – Q4 sales GBP 5.66bln vs. Exp. GBP 5.67bln, FY Adj. EPS GBP 0.315, Co. announce Final dividend of GBP 0.096.
- Sage (LON:SGE) – H1 Organic revenue increases 6.2% to GBP 747mln vs. Exp GBP 730mln. H1 organic operating profit rose 1.9% to GBP 189mln. Co. also state they are confident of reaching FY target.
- Smith & Nephew (LON:SN) – Q1 revenue USD 1.14bln vs. Exp. USD1.17bln, reiterate forecast of good underlying revenue growth in 2016.
- WM Morrisons (LON:MRW) – Q1 LFL sales ex-fuel +0.7% vs. Exp. +0.2%, Co. expect continued deflation and improvement in customer satisfaction.
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.