Asian markets traded mixed on Tuesday. The Nikkei dropped .8% to 9468, and the Kospi declined .5% to 19163, a 3 month low. Inflation data from Australia came in far below expectations, pushing down the Australian dollar and lifting stocks. The ASX 200 rose .2% to 4360. China’s Shanghai Composite closed flat, while the Hang Seng edged up .3%, as the Bank of Beijing rallied nearly 4 on solid earnings.
European markets rallied, led by banks, which bounced 2% after Monday’s 3% slide. The CAC40 jumped 2.3%, the DAX climbed 1%, and the FTSE rose .8%.
US indexes closed mixed, as the Dow rose 74 points to 13002, the S&P 500 rose .4%, and the Nasdaq slipped .3%.
Apple shares dropped 2% to 560.28, ahead of its earnings report. After the close, the stock soared 7.8% to 603.81, following another set of impressive profit and revenue data.
Apple's Recent Slide Due To Earnings Concerns
Radio Shack tumbled 10.6% after reporting a loss, dropping to its lowest level in more than 30-years.
Currencies
The currency markets traded in relatively narrow ranges on Tuesday, and the dollar declined modestly. The pound edged up .1% to 1.6138, the euro gained .2% to 1.3189, and the Swiss franc rose .3% to 1.0977. The Australian dollar slipped .2% to 1.0299, largely recovering from an earlier drop down to 1.0249, while the Japanese yen declined .2% to 81.31.
Economic Outlook
New home sales fell to 328K from 353K, dropping less than expected. Home price data was conflicted, as the FHFA Home price Index showed an increase of .3%, better than forecast, while the Case-Shiller Home Price Index showed an annual drop of 3.5% in prices.
Apple’s Blowout Earnings Lift US Stocks
EquitiesApple’s sterling earnings reports pushed up Asian markets at the open, but the indexes closed mixed. The Nikkei climbed 1% to 9561, and the Shanghai Composite gained .8% to 2507. On the losing side, the Hang Seng slipped .2% and the Kospi eased .1%.
Mainland European markets rallied on Wednesday, with the CAC40 up 2%, and the DAX up 1.8%, while the UK’s FTSE closed flat. Automakers rallied after Peugeot Citroen and Valeo reported solid profits, climbing 4.6%, and 8.7% respectively.
US stocks advanced, particularly tech shares, following Apple’s earnings report. The Nasdaq surged 2.3% to 3030, the S&PP 500 jumped 1.4%, and the Dow added 89 points to 13091.
Apple shares popped 8.9% to 610 after blowing past analyst estimates. 14 brokerages upgraded the stock.
Currencies
The dollar slipped on Wednesday as Fed chairman, Bernanke, reiterated his commitment to additional easing, if needed. The pound, Swiss franc, and euro each rose .2%. The Australian dollar gained .3% to 1.0353, and the Canadian dollar rallied .4% to .9836, while the yen closed little changed at 81.34.
Economic Outlook
Durable goods orders fell 4.2% , far more than forecast, while the less volatile core durable goods orders unexpectedly dropped 1.1%. The Fed raised its projection for economic growth to 2.4%-2.9% from January’s 2.2%-2.7% forecast.
Stocks Gain On Strong Housing Data
EquitiesAsian markets traded mostly higher on Thursday. The Kospi inched up .1% to 1964, despite a 6.2% drop in LG Electronics, and the ASX 200 gained .3% to 4375. The Hang Seng rallied .8% to 20810, while the Shanghai Composite eased .1%, and the Nikkei closed flat.
European markets closed mixed, as banks fell 2.3% following lackluster earnings from Deutsche Bank. The FTSE and DA advanced .5%, while the CAC40 declined .1%. Automakers extended their gains from the previous session, rising 2.7%, after Volkswagen reported strong earnings, pushing the stock up 7.8%.
US stocks rallied, as the Dow jumped 114 points to 13205, ad the Nasdaq and S&P 500 both climbed .7%.
Dow Tacks On 114 Points
H&R Block tumbled 10.7% to 14.95 after announcing it would close stores and layoff employees to cut costs.
Currencies
The dollar declined against global currencies on Thursday. The pound edged up .2% to 1.6195, while the euro and Swiss franc inched up .1%. The yen spiked .5% to 80.95, and the Australian dollar climbed .3% to 1.0396.
Economic Outlook
Weekly unemployment claims dropped by 1K to 388K, significantly worse than expectations for a drop to 374K. However, pending home sales surged by 4.1%, blowing past analyst forecasts for a 1.2% gain.
Stocks Rise Despite GDP Disappointment And Ratings Cuts
EquitiesThe Bank of Japan announced it would expand its current asset purchase program by another $124 billion, but the news had little lasting impact on the region’s markets. The Nikkei closed down .4% to 9521, surrendering a brief gain following the announcement. The Kospi rose .6%, boosted by Samsung Electronics 2.5% gain, after announcing a record $5.2 billion profit for the first quarter. The Shanghai Composite slipped .4% to 2396, and both the Hang Seng and ASX 200 declined .3%.
S&P cut its debt ratings on peripheral European countries by 2 notches, although the equity markets failed to notice. Spain’s IBEX jumped 1.7%, the CAC40 gained 1.1%, and the DAX rose .9%. Trailing behind, the FTSE posted a respectable .5% gain. Superb earnings by Swedish engineering firm, Sandvik, helped push stocks higher, as the stock rose 12.5%.
US stocks closed higher, despite disappointing GDP data. The Dow added 24 points to 13228, the Nasdaq climbed .6% to 3069, and the S&P 500 gained .2% to 1403. The Nasdaq rallied 2.3% this week, its biggest gain in 3 months.
Currencies
The dollar fell against all major currencies on Friday. The yen and Australian dollar both jumped an impressive .9%, to 80.29 and 1.0467, respectively. Meanwhile, the Swiss franc, euro, Canadian dollar, and pound moved up .5% in an unusually synchronized effort.
Economic Outlook
US GDP grew at an annualized 2.2% rate in the first quarter, slower than the 2.6% expected. On a brighter note, consumer sentiment climbed to 76.4, exceeding forecasts.
European Shares Sink As Spain Slips Into A Recession
EquitiesAsian markets opened the week solidly, led by Hong Kong’s Hang Seng, which rallied 1.7% to 21094, a 6-week high. The ASX 200 climbed .8% to 4397, and the Kospi gained .3% to 1982. Markets in Japan and mainland China were closed for holidays.
GDP data from Spain showed the economy shrunk by .3% in the first quarter, indicating it had slipped into a recession. The news sent the IBEX down 1.9%, and pressured European stocks across the region. The CAC40 fell 1.6%, the FTSE dropped .7%, and the DAX slid .6%.
France's CAC40 Drops 1.6%
US stocks snapped a 4-day winning streak, closing moderately lower. The Dow erased 15 points to 13214, the S&P 500 shed .4% to 1398, while the Nasdaq skipped .7% to 3046.
Currencies
The dollar traded mostly higher on Monday. The euro eased .1% to 1.3232, and both the pound and Swiss franc declined .2%. The Australian dollar sank .5% to 1.0415 ahead of the central bank’s rate decision, and the Canadian dollar dropped .6%, following disappointing GDP data. The Japanese yen rallied .6%, breaking through the 80 price barrier to 79.83.
Economic Outlook
Midwest business activity slowed last month according to the Chicago PMI report, which fell to 56.2 from 62.2. Personal income rose .4%, more than expected, while personal spending rose .3%, less than expected.