U.S markets declined as traders reacted to weak U.S GDP and an unexpectedly hawkish FOMC statement. Last quarter’s GDP increased by 2.2% and as analysts recognized weakness in the economy, they had predicted the rate to drop and increase by 1%. The figure was more disappointing, however, and increased by just 0.2%, hitting sentiment. The release was followed later in the day by the FOMC statement. The Fed showed that they didn’t take recent weak data too seriously and that the slowdown is most likely temporary. The same stance was held regarding increasing rates and the statement was mostly the same as March except no specific month was ruled out. The release was taken as slightly hawkish and speculation began that the rate hike is still on the table before September. At session close the S&P 500 was 0.4% lower at 2,106.85 and the Dow Jones was 0.4% lower at 18,035.53. In stocks news, Twitter dropped almost 9% after reporting reduced revenue, and Go Pro rallied 13% after reporting a jump of 52% in profits.
Asian markets were lower today. The Nikkei declined by 2.69% as companies suffered on the back of the stronger Yen; the Dollar traded around 118.6 towards the end of the session. The Bank of Japan has a press conference and cut their forecast for economic growth and inflation. However, they maintained their current rate of stimulus and didn’t increase it. Ricoh Co lost 8.995, Sumitomo Heavy Industries lost 7.64% and Shin-Etsu Chemical Co lost 7%. The Hang Seng lost 0.94% following weak earnings. In the index, China Unicom Hong Kong is 5.82% lower, China Mengnui Dairy Co lost 4.62% and BOC Hong Kong Holdings lost 4.44%.
European markets are mixed today. The FTSE 100 is 0.2% lower as RBS dropped after reporting a net loss of 446 million pounds after litigation charges and restructuring. In the index, Royal Mail is up 5.63% due to expansion talks, Sports Direct International is up 2.15% and Associated British Foods is up 2.04%. The DAX is up 0.34% despite releasing weak German Unemployment Change data. Fresenius SE & Co is up 4.16%, Deutsche Boerse is up 1.65% and Deutsche Post is up 1.445. The CAC 40 is even.
April 30, 2015 – Indices News
U.S markets declined as traders reacted to weak U.S GDP and an unexpectedly hawkish FOMC statement. Last quarter’s GDP increased by 2.2% and as analysts recognized weakness in the economy, they had predicted the rate to drop and increase by 1%. The figure was more disappointing, however, and increased by just 0.2%, hitting sentiment. The release was followed later in the day by the FOMC statement. The Fed showed that they didn’t take recent weak data too seriously and that the slowdown is most likely temporary. The same stance was held regarding increasing rates and the statement was mostly the same as March except no specific month was ruled out. The release was taken as slightly hawkish and speculation began that the rate hike is still on the table before September. At session close the S&P 500 was 0.4% lower at 2,106.85 and the Dow Jones was 0.4% lower at 18,035.53. In stocks news, Twitter dropped almost 9% after reporting reduced revenue, and Go Pro rallied 13% after reporting a jump of 52% in profits.
Asian markets were lower today. The Nikkei declined by 2.69% as companies suffered on the back of the stronger Yen; the Dollar traded around 118.6 towards the end of the session. The Bank of Japan has a press conference and cut their forecast for economic growth and inflation. However, they maintained their current rate of stimulus and didn’t increase it. Ricoh Co lost 8.995, Sumitomo Heavy Industries lost 7.64% and Shin-Etsu Chemical Co lost 7%. The Hang Seng lost 0.94% following weak earnings. In the index, China Unicom Hong Kong is 5.82% lower, China Mengnui Dairy Co lost 4.62% and BOC Hong Kong Holdings lost 4.44%.
European markets are mixed today. The FTSE 100 is 0.2% lower as RBS dropped after reporting a net loss of 446 million pounds after litigation charges and restructuring. In the index, Royal Mail is up 5.63% due to expansion talks, Sports Direct International is up 2.15% and Associated British Foods is up 2.04%. The DAX is up 0.34% despite releasing weak German Unemployment Change data. Fresenius SE & Co is up 4.16%, Deutsche Boerse is up 1.65% and Deutsche Post is up 1.445. The CAC 40 is even.
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