Asian markets fell on Thursday as mounting fears of a global slowdown weight on investors’ nerves. The Nikkei slid .7% to 10115, the Kospi slumped .9%, and the ASX 200 eased .1%. The Shanghai Composite tumbled for a second day, skidding 1.4% to 2252, and the Hang Seng sank 1.3% to 20609.
Selling pressure intensified in Europe, as the DAX tanked 1.8% to 6875, the CAC40 fell 1.4%, and the FTSE dropped 1.2%. Financial shares fell nearly 3%, and Italy’s MIB index plunged 3.3%.
Germany's DAX Drops 1.8%
In contrast, US stocks continued to show their resilience, as the major indexes bounced back from a 1% slide to close mixed. The Dow rose 20 points to 13146, 113 points off its low for the day. The Nasdaq declined .3%, and the S&P 500 eased .2% to 1403.
Currencies
The currency markets traded mixed with no clear direction. The yen advanced .5% to 82.44, the pound rose .4% to 1.5952, and the Canadian dollar edged up .2% to .9965. The euro, Swiss franc, and Australian dollar all slipped .1%.
Economic Outlook
Weekly unemployment claims fell to 359K, a 4-week low, but fell short of analyst forecasts for 351K. GDP for the 4th quarter rose at 3%, as expected.
US Stocks Complete Best Quarter Since The 90′s
EquitiesAsian markets closed mixed on Friday, while ending the quarter with strong gains. The Nikkei eased 31 points to 10084, up 19.3 for the first quarter, and the Kospi settled flat, cementing a gain of 10% for the first quarter. The Hang Seng slipped .3% to 20556, climbing 11.8% in the first quarter, and the Shanghai Composite rose .5%, inching up a mere 2.9% in the first 3 months of the year. Finally, the ASX 200 edged down .1%, up 7% for the quarter.
In Europe, stocks rallied as finance ministers agreed to expand the region’s rescue fund., as concerns over Spain’s debt troubled escalated. The CAC40 advanced 1.3%, the DAX climbed 1%, while the FTSE rose a more modest .5%. Gains in Europe were more muted than elsewhere, as the FTSE rose just 3.5% for the quarter.
US stocks closed mixed. The Dow rose .5% to 13212, the S&P 500 gained .4% to 1408, while the Nasdaq eased .1% to 3092. For the quarter the Dow gained 8%, the S&P climbed 12%, and the Nasdaq surged 18.7%. All three indexes had their best showing since the 1990′s.
Nasdaq Climbs 18.7% In First Quarter, Largest Gain Since 1991
Research in Motion shares jumped 7.1% even though the company posted a loss, after suggesting the company will launch an internal review which may involve a sale of the company.
Currencies
European currencies advanced, encouraged by the expansion of the rescue fund to 700 billion euros. The euro rose .3% to 1.3340, the pound gained .4 to 1.6012, and the Swiss franc climbed .5% to 1.1086. The yen slid .5% to 82.86, the Australian dollar declined .3 to 1.0342, and the Canadian dollar eased .2 to .9987.
Economic Outlook
Personal income rose .2%, less than forecast, while personal income jumped .8%, exceeding forecasts. Chicago PMI declined slightly to 62.2 from 64, while consumer sentiment jumped to 76.2, its highest level in more than a year.
Solid PMI Data From China And US Energizes Stocks
EquitiesPMI data from China exceeded analyst forecasts, rising to an 11-month high of 53.1, lifting some Asian markets. The Nikkei rose .3% to 10110, led by car makers, and the Kospi climbed .8% to 2029. Moody’s raised its credit rating on South Korea’s sovereign debt, boosting financial stocks. The Hang Seng slipped .2% to 20522, and the ASX 200 eased .1%, while the Shanghai Composite was closed for a holiday which will extend through Wednesday.
European markets traded sharply higher, as the upbeat news from China, and solid US data lifted investor optimism. The FTSE rallied 1.9%, the DAX climbed 1.6%, and the CAC40 gained 1.1%. The gains came despite a disappointing manufacturing report from the eurozone, indicating the region is in the midst of another recession.
Afternoon Rally Boosts FTSE 1.9%
US stocks gained, with the Dow ticking up 52 points to 13264, the Nasdaq jumping .9% to 3120, and the S&P 500 climbing .7% to 1419.
Currencies
The yen climbed 1% to 82.03 in a steady day-long rally, and the commodity currencies gained, with both the Australian dollar and the Canadian dollar up .8%. The euro eased .1% to 1.3326, the Swiss franc declined .2% to 1.1067, while the pound edged up .1% to 1.6032.
Economic Outlook
Monday’s economic data was mixed. ISM manufacturing PMI rose to 53.4 from last month’s 52.4 reading, slightly above forecasts. However, construction spending unexpectedly fell 1.1%, extending last month’s decline.
FOMC Minutes Suggest No More Easing
EquitiesAsian markets traded mostly higher, following Monday’s advance in Western shares. The Hang Seng climbed 1.3% to 20791, and the Kospi gained 1% to 2049. The ASX 200 edged up .2%, as the country’s central bank held rates steady. Lagging behind, the Nikkei slipped .6% to 10050, as the yen spiked to a 3-week high against the dollar, hurting exporters.
European stocks slumped, as concerns over Spanish debt weighed on investors. The CAC40 tanked 1.4%, the DAX sank .8%, and the FTSE fell .4%.
US stocks mostly recovered from their losses, but still ended down. The Dow dropped 65 points to 13200, the S&P 500 fell .4% to 1413, and the Nasdaq declined .2% to 3114. Following the release of the minutes from the FOMC’s last meeting, the indexes briefly tumbled 1%. The minutes indicated it is unlikely the Fed will authorize another round of easing, thanks to an improving economy.
Dow Drops 65 Points But Well Off Lows
GM shares tumbled 4.6% after monthly sales fell short of estimates, despite posting an impressive 11.8% increase.
Currencies
The dollar rallied against global currencies. The yen fell 1% to 82.90, erasing Monday’s gains, and the Australian dollar fell .9% to 1.0318. The pound, euro, and Swiss franc all dropped .8%. The Canadian dollar largely escaped the downtrend, easing less than .1% to .9914.
Economic Outlook
US factory orders rose by 1.3%, slightly below forecasts for a 1.5% gain. Monthly auto sales also fell short of forecasts, as the annual rate declined to 14.4M from last month’s 15.1M reading.