European shares end the day higher, but the week is mostly lower

The UK FTSE is up on the week.

The European shares ending the day higher with the UK FTSE leading the way to the upside.  It rose 1.02% on the day. The German Dax was up 0.75%. France’s CAC and Italy’s FTSE MIB lagged. 

The UK FTSE is up on the week.

For the week, the major indices were mostly lower, however, with the excetption being thie UK FTSE which rose by 1.11%.  Spain’s Ibex was unchanged.

Below is a summary of the week moves (the US markets are obviously stilll open and moving).  The worst performer in Europe was the Portugal PSI20 which fell -1.64%. The German Dax fell -0.70% and France’s CAC fell -0.88%. US shares are also lower for the week with the Nasdaq index and small caps Russell 2000 down the most. 

  The weekly changes of the major EU and NA stock indices

The 

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Asian shares dip on mixed U.S. earnings, euro off two-year low as ECB holds

© Reuters. FILE PHOTO:  A man walks past an electronic stock quotation board outside a brokerage in Tokyo © Reuters. FILE PHOTO: A man walks past an electronic stock quotation board outside a brokerage in Tokyo

By Hideyuki Sano

TOKYO (Reuters) – Asian share prices dropped on Friday following mixed U.S. earnings reports and after the European Central Bank unexpectedly held interest rates steady, while the euro held above two-year lows struck overnight.

MSCI’s broadest index of Asia-Pacific shares outside Japan () dropped 0.45% while Japan’s Nikkei () lost 0.5%. Shanghai shares () ticked down 0.15%.

Wall Street shares fell from record highs on Thursday, with the S&P 500 () losing 0.53%, following a flurry of downbeat quarterly results from Ford Motor (N:) and other companies.

But several companies that announced results after the market had closed on Thursday generally beat expectations, and their shares rose in after-hours trade.

Google parent Alphabet (O:) jumped 7.9%, Intel Corp (O:) 5.1% and Starbucks (O:) 6.6%. Amazon (O:), however, dipped 1.6% on its first profit miss in two years.

U.S. stock futures () rose 0.2% in Asia.

“Some capital goods makers have reported soft earnings but otherwise U.S. earnings have been generally good, partly because investors had already lowered their expectations,” said Hitoshi Asaoka, senior strategist at Asset Management One.

“Still, with U.S. share prices already at record levels, further gains are likely to be limited unless we see clearer signs of recovery in global demand,” he said.

Uncertainties over whether Washington and Beijing will be able to settle gaping differences over trade, technology and even geopolitical ambitions, kept many investors on guard. Negotiators from the two sides will meet in Shanghai next week.

A rally in global bonds ran out of steam after European Central Bank President Mario Draghi cautioned about pulling the trigger too quickly on policy easing, even though he all but pledged to loosen monetary settings further as the growth outlook deteriorates.

Analysts had expected a rate cut by the ECB.

ECB officials told Reuters after the meeting that an interest rate cut in September appeared certain, while government bond purchases and a revamped policy message were also likely.

The euro’s overnight index swaps are pricing in a cut of more than 10 basis points in September, to minus 0.50 percent.

“An interest rate cut of 10 basis points in September looks like a done deal now,” said Hideki Kishida, fixed income strategist at Nomura Securities.

The 10-year German government bond yield () initially hit a record low of minus 0.463 percent but ended the day up slightly at minus 0.407 percent.

While European bond yields are likely to stay under pressure until the next ECB meeting on Sept 12, Brexit could become a central issue as investors look to the stance of Britain’s new government under Boris Johnson.

“If there are signs of easing tensions, we could see temporary rise in European bond yields,” Nomura’s Kishida said.

The U.S. 10-year Treasuries yield also rose 3 basis points to 2.079 percent () on Thursday and traded at 2.107 percent in the following Asian session.

Also helping to stem falls in bond yields, new orders for key U.S.-made capital goods surged in June, suggesting some improvement in business investment.

Despite that, investors expect the Federal Reserve to cut interest rates by 0.25 percentage point at its policy meeting ending on July 31 to protect the economy from potential damage from the protracted U.S.-China trade war.

An advance reading of U.S. GDP, due at 8:30 a.m (1230 GMT), is expected to show the economy grew 1.8% in April-June, which would be the slowest growth in more than two years.

In the currency market, the euro bounced back to at $ 1.1149 () in Asian trade, after sinking to $ 1.1101 on Thursday, its lowest since May 2017.

The yen was little changed against the dollar at 108.57 yen per dollar .

Oil prices held firm on rising tensions between the West and Iran and a big decline in U.S. crude stockpiles, though gains were held in check by worries about slowing growth in major economies.

U.S. crude () ticked up 0.25% to $ 56.16 a barrel while Brent futures () was almost flat at $ 63.37 per barrel.

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European shares end the day mixed

Some up and some down to end the trading week

The European markets are closed and the major indices are ending the week with mixed results today.

The numbers are showing:

  • German DAX, -0.13%
  • France’s CAC, -0.13%
  • UK’s FTSE, -0.23%
  • Spain’s Ibex, unchanged
  • Italy’s FTSE MIB, +0.14%

For the week, the major indices are ending higher:

  • German DAX, +2.01%
  • France’s CAC, +2.99%
  • UK’s FTSE, +0.84%
  • Spain’s Ibex, +0.17%
  • Italy’s FTSE MIB, +3.77%

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Asian shares off five-week low, remain fragile on renewed U.S.-China trade worries

© Reuters. FILE PHOTO: An investor looks at an electronic board showing stock information at a brokerage house in Shanghai © Reuters. FILE PHOTO: An investor looks at an electronic board showing stock information at a brokerage house in Shanghai

By Tomo Uetake

SYDNEY (Reuters) – Asian shares staggered up from five-week lows on Tuesday but remained fragile after U.S. President Donald Trump’s latest threat to raise tariffs on Chinese goods shocked financial markets and fueled worries that trade talks may be derailed.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.5 percent, erasing earlier losses. It tumbled 2 percent on Monday after Trump unexpectedly jacked up pressure on Beijing in the midst of trade negotiations.

Chinese shares rose after their worst drop in more than three years on Monday. The benchmark advanced 0.6 percent, while the blue-chip CSI 300 climbed 1.0 percent. Hong Kong’s was up 0.7 percent.

Japan’s shed 0.8 percent, taking a delayed hit as the country’s financial markets opened after a 10-day break to mark the ascension of a new emperor.

U.S. stock futures for the declined as much as 0.8 percent in Asian trading hours on Tuesday as top U.S. trade officials said China had backtracked on commitments in trade talks.

Trump tweeted on Sunday that he would raise tariffs on $ 200 billion worth of Chinese goods to 25 percent from 10 percent by the end of the week, and would “soon” target the remaining Chinese imports with tariffs.

Yasuo Sakuma, chief investment officer at Libra Investments in Tokyo said believed stocks have entered a new downtrend, as investors had growing doubts over whether the United States and China would cut a deal on trade any time soon.

“Investors had been too complacent since the beginning of this year. Now it’s time for ‘sell in May and go away,'” he said.

Still, some investors are holding out hope that the tariff threats are a negotiating tactic.

U.S. Trade Representative Robert Lighthizer said he expected top Chinese negotiator Vice Premier Liu He would lead a delegation coming from Beijing for talks in Washington on Thursday and Friday.

“Markets are still not sure (whether Trump will go ahead with the tariff hikes,) and far from a panicky situation. We have to see how the talks will unfold this week,” said Naoki Iwami, fixed income chief investment officer at Whiz Partners in Tokyo.

There was little movement in the currency market, with the euro trading virtually flat at $ 1.1204, having held in a tight range for the past four sessions, while the dollar was steady at 110.70 yen.

China’s yuan rebounded off four-month lows touched previous day, with the offshore unit gaining 0.2 percent to 6.7864 per dollar and the rising 0.2 percent to 6.7727 per dollar.

The Australian dollar rose 0.2 percent to $ 0.6999 though investors remained cautious ahead of an interest rate decision from the country’s central bank later in the day.

A slim majority of economists polled by Reuters expects the central bank to keep rates at a record low although calls for a rate cut have grown louder after disappointingly weak first-quarter inflation.

In the commodity market, oil prices were mixed as U.S. sanctions on oil exporters Iran and Venezuela kept markets on edge, while concerns that the escalating Sino-U.S. trade dispute could slow the global economy also kept crude somewhat in check.

U.S. West Texas Intermediate (WTI) crude futures were marginally up at $ 62.27 per barrel while futures inched 0.1 percent lower at $ 71.14.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

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Shares claw higher before U.S. jobs data, oil sinks again

© Reuters. A man looks at an electronic board showing the Nikkei stock index outside a brokerage in Tokyo © Reuters. A man looks at an electronic board showing the Nikkei stock index outside a brokerage in Tokyo

By Marc Jones

LONDON (Reuters) – World stocks were battling to avoid their first weekly fall in six weeks on Friday, as investors waited to see whether key U.S. jobs data later would give the Federal Reserve another reason to dismiss rate cut calls.

Europe’s bourses nudged fractionally higher early on as earnings from banks HSBC and Societe Generale (PA:) cheered traders and encouraging Adidas profits (DE:) sent the German sportswear firm’s shares leaping 7 percent to a record high.

The dollar was also trying to end the week on a firmer note having seen markets scale back bets on a U.S. rate cut this week. As well as the jobs figures later, there are no less than eight Federal Reserve policymakers due to speak.

Bond and commodity markets remained firmly on the backfoot however with most benchmark government bond yields up on the day and slipping back toward $ 70 a barrel again for what will be its worst week in over two months.

Fund manager UBP strategist Koon Chow said it all pointed to a little bit of the steam coming out of the markets after a flying start to the year.

“For the last four months it has been the unwinding the extreme pessimism that had built up (last year)” he said, referring to trade war nerves and the slowdown in many of the world’s largest economies.

“So here we are now in search of the next big thing, and I think today, and for the last few weeks, it is a views and portfolio repositioning exercise.”

U.S. employment figures are due at 1230 GMT, which are forecast to show 185,000 net new jobs were added in April and the unemployment rate at a steady 3.8 percent.

A report by payrolls processor ADP (NASDAQ:) on Wednesday showed U.S. private employers added 275,000 jobs last month.

A solid official reading later would bolster the notion the world’s biggest economy remains on track for its longest expansion ever, further boosting the dollar potentially and the prospects for corporate earnings.

Overnight Asian trading had remained thin with both Japan and China traders still enjoying holidays. Hong Kong was in though and climbed 0.4 percent , the Australian market gained 0.1 percent, while Korea’s slipped 0.5 percent.

Overnight on Wall Street, major indices,, had given up an initial attempt to regain their record highs and closed in the red, weighed down by energy shares.

Oil prices had plunged again after production output set a new record, though the losses were capped by the intensifying political crisis in Venezuela and the stopping of Iranian oil sanction waivers by Washington.[O/R]

U.S. crude was still in the red in early London trade down 0.3 percent at $ 61.65 a barrel, while Brent slipped 0.5 percent to $ 70.42.

PRESSURE DOWN UNDER

In the currency markets, Australian and New Zealand dollars both fell as speculators wagered both countries could see interest cuts next week. [FRX/]

The slipped below psychological support of $ 0.7000 overnight to the lowest since early January while the dollar drifted closer to a recent five-month trough of $ 0.6581.

The weakness in the antipodean currencies also came as the U.S. dollar gained on remarks by U.S. Federal Reserve Chair Jerome Powell earlier this week that a recent weakness in inflation owed to “transitory” factors.

That led traders to start paring expectations for a Fed rate cut. Futures now imply about a 49 percent probability of an easing at year-end, down from 61 percent late on Wednesday, according to CME Group’s FedWatch program.

The held at 97.842, inching toward a two-year peak of 98.33 touched last week.

Against the Japanese yen, the dollar was little changed at 111.48 having spent the entire week in a tight 111.03-111.89 range, while the euro stayed closed to $ 1.12

(Graphic: US ADP non farm datastream, https://tmsnrt.rs/2DFqpOn)

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Asian shares off nine-month peak, European PMIs in focus

© Reuters. FILE PHOTO:  A man looks at an electronic board showing the Nikkei stock index outside a brokerage in Tokyo © Reuters. FILE PHOTO: A man looks at an electronic board showing the Nikkei stock index outside a brokerage in Tokyo

By Daniel Leussink

TOKYO (Reuters) – Asian shares slipped on Thursday after losses on Wall Street but trade was subdued as investors awaited business surveys in Europe and largely stayed on the sidelines ahead of the long Easter weekend holiday.

MSCI’s broadest index of Asia-Pacific shares outside Japan lost 0.2 percent, reversing course after brushing its highest since late July 2018 early in the trading session.

Australian shares held steady while Japan’s was down nearly half a percent and Chinese blue chips dipped 0.3 percent.

Wall Street shares drifted lower on Wednesday, with the giving up 0.2 percent as a drop in healthcare equities outweighed upbeat economic data from the United States and China. ()

The U.S. trade deficit fell to an eight-month low in February as imports from China plunged, data on Wednesday showed.

Separate figures from China earlier in the day showed the world’s second-largest economy grew at a steady 6.4 percent pace in the first quarter, defying forecasts for a slowdown. Attention is now turning to how much more stimulus Beijing will apply without triggering more financial risks.

“We’re in this kind of hiatus in the global economy,” said Chris Weston, head of research at foreign exchange brokerage Pepperstone in Melbourne.

“People are starting to believe that we’re going to see better times in the second quarter and probably into the third quarter as well, and that perhaps the first quarter has been that trough.”

Investors’ immediate focus turned to the release of Purchasing Managers Indexes (PMIs) for the manufacturing and service sectors in Europe later on Thursday to provide more clues on the strength of the euro zone economy.

“It’s going to be interesting to see if we see some stabilization there in line with what we’ve been seeing in the stabilization in the Chinese data flow,” said Weston.

Japanese manufacturing activity contracted at a slightly slower pace in April thanks to a pick up in hiring, a flash PMI showed, but new export orders fell at the fastest pace in almost three years in a sign slow global demand remains a major pressure point for the economy.

YEN NEAR 2019 LOW

Market participants are also eyeing signs of progress in U.S.-China trade negotiations.

Washington and Beijing set a tentative timeline for a fresh round of face-to-face meetings ahead of a possible signing ceremony in late May or early June, according to a Wall Street Journal report.

Attorney General William Barr is set to hold a news conference at 1330 GMT to discuss the release of Special Counsel Robert Mueller’s report on Russian interference in the 2016 U.S. presidential race.

“The lack of love for the yen, I suppose, is just telling us that people aren’t seeing this as a general risk event,” said Pepperstone’s Weston.

“It’s probably worth keeping a beady eye in case something really does come out that shocks market into life.”

In the currency market, the safe-haven yen was slightly up at 111.94 yen per dollar, but well within reach of a near four-month low of 112.17 brushed overnight.

The euro ticked up to $ 1.1294, adding to the previous day’s gain of 0.1 percent after investors bought the single currency on the back of the positive Chinese data.

“A recovering Chinese economy is also good news for the German economy, and thus positive for the euro,” said Junichi Ishikawa, senior FX strategist at IG Securities in Tokyo.

“The ongoing surge in bund yields amid ‘risk on’ is a key factor supporting the euro,” he added.

The 10-year German bund yield hit a one-month high of 0.102 percent overnight, in a sharp rebound from a 2-1/2-year low of minus 0.094 percent set late last month.

The Australian dollar held steady at $ 0.7178 as traders bet Australia’s central bank will not rush to ease rates after a rise in new jobs underlined strength in the country’s labor market.

The held steady at 97.033 after ending the previous session basically unchanged.

In commodity markets, oil prices were slightly lower as U.S. government data overnight showed inventories drew down less than an industry report had suggested on Tuesday. [O/R]

was last down 8 cents at $ 63.67 a barrel, while global benchmark futures dipped 20 cents to $ 71.42.

was last down 0.15 percent at $ 1,272.30 per ounce after briefly touching a new low for the year.

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US shares end higher. S&P and Nasdaq close at the highest level since October 3rd

Dow closes week with marginal losses. S&P and Nasdaq up about 0.5%

The US major indices are ending the session higher and nearer the highs for the day. 

The final numbers are showing:

  • S&P index, +19.09 points or 0.66% at 2907.41
  • NASDAQ index of 36.805 points or 0.46% at 7984.16
  • Dow industrial average +269.25 points or 1.03% at 26412.30

For the week, the Dow ended near unchanged, while the S&P and NASDAQ close with modest gains for the week:

  • S&P index, +0.51%
  • NASDAQ composite index +0.57%
  • Dow industrial average -0.05%

The big winner today was Disney which rose 11.54% on the news it would enter the streaming video market.  Netflix suffered as a result of the increased competition and was down -4.49%.

Another big winner today was J.P. Morgan Chase after they kicked off the earnings season for financials with stellar earnings above expectations.  Their stock rose $ 4.98 or 4.69% to $ 111.21.

Anadarko Petroleum surged on the back of a bid by Chevron valued at $ 33B.  The price of the stock ended up $ 15 or 32.05%

Other winners today included:

  • Anadarko Petroleum, +32.05%
  • Morgan Stanley, +4.25%
  • Bank of America +3.78%
  • PNC financial, +3.78%
  • Boeing, +2.55%
  • Charles Schwab, +2.49%
  • Goldman Sachs, +2.48%
  • Citigroup, +2.31%
  • Alibaba, +2.11%
  • United Technologies, +1.84%
  • 3M, +1.82%
  • Caterpillar, +1.69%
  • Cisco, +1.24%

Some losers today included:

  • UnitedHealth, -5.17%
  • Chevron, -4.91%
  • Gilead, -1.55%
  • Stryker, -1.36%
  • Pfizer, -1.32%
  • Exxon Mobil, -1.24%
  • Nvidia -0.8%
  • Micron, -0.64%
  • Twitter, -0.61%
  • Merck, -0.56%

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European shares rise on trade optimism; Michelin inflates tire makers, autos

© Reuters. Pedestrians pass the London Stock Exchange in London © Reuters. Pedestrians pass the London Stock Exchange in London

LONDON (Reuters) – European shares opened higher on Tuesday as investors cheered signs of a compromise in the standoff over the U.S. government funding and positive signals around U.S.-China trade talks, while Michelin’s results pumped up tire stocks.

The pan-European was up 0.6 percent at 0841 GMT, with Germany’s trade-sensitive up 1.2 percent and Paris’ up 0.7 percent.

Automakers and their suppliers were the biggest gainers, up 2.2 percent after Michelin (PA:) delivered better-than-expected results and pledged further gains in operating profit this year despite challenging conditions.

The French tire maker’s shares rallied more than 10 percent and were on track for their best day in nearly a decade.

Italy’s Pirelli and Germany’s Continental topped the leader board in their domestic markets and were among the biggest gainers on the STOXX 600.

In a sign of the high expectations for luxury brand earnings following solid numbers from the sector, including LVMH last week, Gucci owner Kering (PA:) fell even after its better-than-expected sales and upbeat comments about Chinese demand.

Investors questioned whether the results were as solid in China as its rivals and Citigroup (NYSE:) analysts said the numbers might not be enough to please demanding market expectations. The shares were down 3.3 percent.

Thyssenkrupp (DE:) shares fell 2.6 percent after its mixed report. The German steel-to-elevator maker stood by its 2018/19 targets, but warned the global economic environment is darkening after reporting a big drop in first-quarter results.

Investors continued to punish TUI as the tour operator reported a widening loss in its quarter to end-December. That follows its profit warning last week.

Online trading platform Plus500 lost more than a third of its value after the company issued a profit and revenue warning, blaming tightening EU regulation on its retail business. The news dragged peer IG with it.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

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Deutsche Bank looking for China shares to lead Asia higher in 2019

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