U.S markets experienced their steepest drop in 2 months on Friday following better than expected labour data. The Nonfarm Payrolls came out at 295,000, much stronger than the expected 240,000 and the Unemployment rate fell to 5.5%. The data boosted speculation that the Fed will increase interest rates in June or at the very least remove their ‘patient’ stance at their next meeting. Higher rates reduced disposable income and results in a cut back in spending; which is generally bearish for stocks. At session close, the S&P 500 was 1.4% lower at 2,071.26 and the Dow Jones was 1.5% lower at 18,056.78.
Asian markets were mixed today. The Nikkei lost 0.95% despite the fact that the Dollar was trading much higher against the Yen. Traders reacted to weaker than expected Japanese GDP figures; the quarterly GDP increased by just 0.4%, below the expected increase of 0.6% and the Yearly GDP increased by just 1.5%, below the expected 2.2%. Losses were led by Astellas Pharma which lost 3.65%, Kansai Electric Power Co which lost 3.53% and Sumitomo Realty & Development Co which lost 3.22%. The Hang Seng lost 0.16% as traders followed the direction of U.S markets and China bank released a reform plan to expand their territory into brokerage businesses. According to Reuters, brokerages slumped as this intensifies competition. In the index, Galaxy Entertainment Group lost 2.25%, China Merchants Holdings International Co lost 2.13% and Lenovo Group lost 1.96%. The Shanghai Composite, however, climbed 1.89% as banks actually gained from the news as it offers a new revenue stream for lenders. In addition, China’s trade balance was released over the weekend and showed a surplus of 60.60 billion. Exports also increased by 48.3% during the past year.
European markets are lower today as Greece comes back in focus. Eurogroup meetings are being held today and the main topic is expected to be the debt crisis in Greece. The Chairman of the Eurogroup, Jeroen Dijsselbloem, reported over the weekend that the economic reform proposed by Greece were not complete. In addition, Greece may be nearing a referendum on whether to accept the terms of the financial aid. Currently, the FTSE 100 is 0.55% lower, the DAX is even and the CAC 40 is 0.39% lower. In the FTSE, CRH PLC is 2.95% lower, Royal Bank of Scotland is 2.5% lower and Ashtead Group is 2.24% lower. In the DAX, Bayer AG is 1.99% higher, and Deutsche Telekom is 0.96% higher.
March 9, 2015 – Indices News
U.S markets experienced their steepest drop in 2 months on Friday following better than expected labour data. The Nonfarm Payrolls came out at 295,000, much stronger than the expected 240,000 and the Unemployment rate fell to 5.5%. The data boosted speculation that the Fed will increase interest rates in June or at the very least remove their ‘patient’ stance at their next meeting. Higher rates reduced disposable income and results in a cut back in spending; which is generally bearish for stocks. At session close, the S&P 500 was 1.4% lower at 2,071.26 and the Dow Jones was 1.5% lower at 18,056.78.
Asian markets were mixed today. The Nikkei lost 0.95% despite the fact that the Dollar was trading much higher against the Yen. Traders reacted to weaker than expected Japanese GDP figures; the quarterly GDP increased by just 0.4%, below the expected increase of 0.6% and the Yearly GDP increased by just 1.5%, below the expected 2.2%. Losses were led by Astellas Pharma which lost 3.65%, Kansai Electric Power Co which lost 3.53% and Sumitomo Realty & Development Co which lost 3.22%. The Hang Seng lost 0.16% as traders followed the direction of U.S markets and China bank released a reform plan to expand their territory into brokerage businesses. According to Reuters, brokerages slumped as this intensifies competition. In the index, Galaxy Entertainment Group lost 2.25%, China Merchants Holdings International Co lost 2.13% and Lenovo Group lost 1.96%. The Shanghai Composite, however, climbed 1.89% as banks actually gained from the news as it offers a new revenue stream for lenders. In addition, China’s trade balance was released over the weekend and showed a surplus of 60.60 billion. Exports also increased by 48.3% during the past year.
European markets are lower today as Greece comes back in focus. Eurogroup meetings are being held today and the main topic is expected to be the debt crisis in Greece. The Chairman of the Eurogroup, Jeroen Dijsselbloem, reported over the weekend that the economic reform proposed by Greece were not complete. In addition, Greece may be nearing a referendum on whether to accept the terms of the financial aid. Currently, the FTSE 100 is 0.55% lower, the DAX is even and the CAC 40 is 0.39% lower. In the FTSE, CRH PLC is 2.95% lower, Royal Bank of Scotland is 2.5% lower and Ashtead Group is 2.24% lower. In the DAX, Bayer AG is 1.99% higher, and Deutsche Telekom is 0.96% higher.
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