U.S Markets climbed as they reopened from a 3 day weekend. Sentiment appeared to be boosted by expectations that the interest rate hike would be delayed due to recent weak U.S data. Friday’s Nonfarm Payrolls report, in particular, showed a much lower than expected figure; analysts had expected 245K but the actual figure was 126K. A speech from FOMC Member, William Dudley, added to this speculation as he stated that the timing of the hike will remain data dependent but is also uncertain as the future of the economy cannot be anticipated. Other pieces of labour data, however, have not been so bad. The Unemployment Rate remained constant at 5.5% and Jobless Claims data beat expectations. This suggests that the weak NFP figure could be a result of recent bad weather and not indicative of a slowdown in the economy. Consequently, a rate hike is still expected but at a slower rate than previously thought. At session close, the S&P 500 was 0.7% higher at 2,080.66 and the Dow Jones was 0.7% higher at 17,881.12.
Asian markets moved higher today. The Hang Seng remained closed for another holiday but the Nikkei added 1.25%. Gains were seen as the Dollar moved higher against the Yen; the Dollar traded at 119.8 at the session close compared to 119 at the same time a day earlier. Traders also followed the positive sentiment seen in the U.S due to new expectations of a later interest rate hike. Finally, analysts at Nomura Holdings also noted that “This year’s spring wage negotiations have indeed resulted in higher wage increases than seen last year, and we attribute this to greater corporate willingness to distribute earnings to workers.” Therefore, the Japanese economy is expected to recover on corporate profits and wages. Nippon Light Metal Holdings added 6.25%, Tokyu Fudosan Holdings added 5.93% and Nisshin Steel Co added 5.74%.
European markets are higher today following an extended 4 day weekend. The FTSE 100 is up 1.51% as all sectors increase. Sentiment was boosted by U.K Services PMI data which jumped to 58.9, analysts had predicted to see 57.0. BG Group is leading gains with its shares climbing 5.38% on the back of higher oil prices. Coca-Cola HBC is up 4.3%, J Sainsbury is up 3.46% and Royal Dutch Shell is up 3.03%. The DAX is up 1.18% and the CAC 40 is up 1.54% as investors react to Mergers and Acquisitions news. In the DAX, RWE AG is up 4.11%, E.ON is up 3.76% and BASF SE is up 2.49%.
April 7, 2015 – Indices News
U.S Markets climbed as they reopened from a 3 day weekend. Sentiment appeared to be boosted by expectations that the interest rate hike would be delayed due to recent weak U.S data. Friday’s Nonfarm Payrolls report, in particular, showed a much lower than expected figure; analysts had expected 245K but the actual figure was 126K. A speech from FOMC Member, William Dudley, added to this speculation as he stated that the timing of the hike will remain data dependent but is also uncertain as the future of the economy cannot be anticipated. Other pieces of labour data, however, have not been so bad. The Unemployment Rate remained constant at 5.5% and Jobless Claims data beat expectations. This suggests that the weak NFP figure could be a result of recent bad weather and not indicative of a slowdown in the economy. Consequently, a rate hike is still expected but at a slower rate than previously thought. At session close, the S&P 500 was 0.7% higher at 2,080.66 and the Dow Jones was 0.7% higher at 17,881.12.
Asian markets moved higher today. The Hang Seng remained closed for another holiday but the Nikkei added 1.25%. Gains were seen as the Dollar moved higher against the Yen; the Dollar traded at 119.8 at the session close compared to 119 at the same time a day earlier. Traders also followed the positive sentiment seen in the U.S due to new expectations of a later interest rate hike. Finally, analysts at Nomura Holdings also noted that “This year’s spring wage negotiations have indeed resulted in higher wage increases than seen last year, and we attribute this to greater corporate willingness to distribute earnings to workers.” Therefore, the Japanese economy is expected to recover on corporate profits and wages. Nippon Light Metal Holdings added 6.25%, Tokyu Fudosan Holdings added 5.93% and Nisshin Steel Co added 5.74%.
European markets are higher today following an extended 4 day weekend. The FTSE 100 is up 1.51% as all sectors increase. Sentiment was boosted by U.K Services PMI data which jumped to 58.9, analysts had predicted to see 57.0. BG Group is leading gains with its shares climbing 5.38% on the back of higher oil prices. Coca-Cola HBC is up 4.3%, J Sainsbury is up 3.46% and Royal Dutch Shell is up 3.03%. The DAX is up 1.18% and the CAC 40 is up 1.54% as investors react to Mergers and Acquisitions news. In the DAX, RWE AG is up 4.11%, E.ON is up 3.76% and BASF SE is up 2.49%.
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