European stocks declined on uncertainty over Greece
Equity market in Europe traded in a mixed environment, mostly declining over the last five trading days, since concerns over Greece’s ability to complete a deal and avert its exit from the Euro zone weighed on markets. Nevertheless, Euro zone economic confidence remained near a four-year high in May. The confidence rose among manufacturers, retailers, service providers and construction firms. Consumers also remained relatively upbeat, albeit slightly less optimistic about the economic outlook and their job prospects.
The main Eurostoxx 600 gauge advanced 2.42% to 399.87 points at the end of the working week. Unfortunately, all the industries included in the gauge dropped in value, with automobiles & part and insurance dropped the most by 3.7% and 3.1%, respectively. Nevertheless, quarterly growth are still in the green zone. Concerning the weekly gainers, Piraeus Bank SA and Eurobank Ergasias SA, a Greek multinational financial services companies, soared 10.9% and 9.3%, to trade at 0.507 euros and 0.152 euros, respectively. Ryanair Holdings PLC, an Ireland-based, low-cost airline, rose 6.4% to 11.60 euros per share, after the low-cost carrier more than tripled its target for additional passengers, since net profit for the year to the end of March hiked 66% to 867million euros. As for the weekly losers, shares of Delta Lloyd NV, a Dutch insurer, plunged the most by 9.7% to 15.84 euros.
Alongside, other European indexes went up as well, as German DAX grew 1.9% to 11,413.50 points, while British FTSE 100 gained 0.9% to close at 6,984.43 points.
US shares weakened despite positive economic data
In course of the previous working week, all major US indexes fell slightly. They were largely influenced by broad global weakness of different economics. Concerning the fundamental data, demand for durable goods built to last three or more years fell 0.5% in April, after a revised 5.1% gain in March. April orders for nondefense capital goods excluding aircraft — the core indicator of company spending on equipment and software — increased 1%, while March core orders were revised up to 1.5%. Meanwhile, the US economy contracted in the first quarter by 0.7% annualized, revised down from the initial estimate of 0.2%. Key factors were the larger trade deficit, smaller inventory accumulation and weaker consumer spending than first estimated.
The largest S&P 500 Index, which colligates data for 500 biggest companies in the US, plunged 1.02% to 2,107.39 points by the end of the trading week. Similar to Europe, all the industries included in the gauge faced losses except health care sector. The worst performance was showed by energy and industrials. Humana Inc., a US based health insurance company, was among the leaders this week, amid reports the health insurer is considering a sale of the company. Therefore, the shares soared 20.08% to $214.65. On the other hand, Michael Kors Holdings Ltd plummeted as much as 24.1%, to trade at $46.50.The sales of accessories brand, fell 5.8% in the three months ended March 28, driven by a 6.7% decline in North America and a 5.6% drop in Europe.
Meanwhile, the Dow Jones Industrial Average decreased 1.5% during the previous trading week to 18,010.68 points, while NASDAQ lost 0.17% to reach the 5,070.02 mark.
Japanese strengthened on strong economic data
Japanese shares performed in the relatively successful way among major financial markets during the last trading week. While the Japanese economy grew faster than expected during the Q1, posting fastest pace in a year, Japanese retail trade counted on a yearly basis did not reach the expectations, growing 5% in April compared to 5.4% expected. Meanwhile, job vacancies in Japan are at their highest level in 23 years, while the unemployment rate fell to its lowest mark since the late 1990s as the labour market tightens. According to data released on Friday, the ratio of jobs to applicants rose to 1.17 times in April — up from 1.15 times the month before, while the unemployment rate fell to 3.3%.
The benchmark Topix Index increased 0.8% to close at 1,673.65 points in the end of the last week. The industries in their gains divided almost equally, as the best performance was showed by rubber products and iron & steel sectors, after they gained 5.5% and 4.4%. Tasaki & Co Ltd, a Japanese manufacturer of jewelry, rose 22.7% to 3,195 yen per share, while Voltage Inc., continued its previous week’s trend and added 21.8% to trade at 1,889 yen. On the other hand, Emori Group Holdings Co Ltd, a Japan based company engaged in chemical and machinery facility businesses, dropped 32% to 17 yen per stock, while Financial Group Holdings Co Ltd followed with a loss of 15.4% to 2.89 yen.
The second-largest stock index of the country, Nikkei 225, rose slightly 0.73% to 20,563.15 points, while on the basis of last three months the gauge is showing a strong 9.3% increase in value.
Asia-Pacific stock markets grew to erase recent losses
Asia-Pacific equities were mixed last week; however, managed to show the best result among other equity markets. China’s manufacturing sector continued to expand, with the official gauge hitting the highest level in six months in May. Meanwhile, China’s official manufacturing PMI, in turn, climbed to 50.2 points in May from 50.1 points in April. However, the final manufacturing PMI reading compiled by HSBC and Markit came in at 49.2 points, in line with expectations and showing a slight improvement from the 49.1 as forecasted. Moreover, according to the survey, production contracted for the first time in 2015 partly due to a fall in new export work, which was the sharpest in two years.
The benchmark S&P/ASX200 Index added 0.9% to 5,777.20 points last week, as almost all the industries included in the gauge posted a positive movement. Utilities and technology gained the most of 2.8% and 2.3%, respectively. Among market movers, Skilled Group Ltd, an Australian recruiting company, jumped 17.4% to $1.445 per share, after a proposal from a company-competitor Programmed Maintenance Services Limited about a potential merger. On the contrast, Independence Group, a mining company based in Australia, slipped 3.2% to $4.85, since some Independence investors are unhappy with merger price of $1.8 billion .
Meanwhile, the Hang Seng Index dropped 1.8% to 27,424.19 points last week, while the NZX 50 gauge of New Zealand added 0.8% to close at 5,844.94 points back on May 28.
EXPLANATIONS
Indexes
Standard & Poor's 500 Index (S&P 500) or (SPX) - U.S. stock market index consisting of the 500 large-cap shares widely traded on the New York Stock Exchange and the NASDAQ.
Dow Jones Industrial Average Index (INDU) - U.S. stock market index consisting of the 30 large publicly owned U.S. companies , primarily industrials
NASDAQ Composite Index - U.S. stock market index representing all the stocks that are traded on the Nasdaq stock market, mostly technology and Internet-related
New Zealand Exchange 50 Gross Index (NZX 50) - stock market index consisting of the top 50 companies listed on the New Zealand Stock exchange
S&P/ASX 200-a market - capitalization weighted stock market index of stocks listed on the Australian Securities Exchange from Standard and Poor’s
Hang Seng Index (HI) - Hong Kong’s stock market index consisting of 48 largest companies listed on the Hong Kong Exchange
Japan’s Nikkei Stock Average (Nikkei 225 Index) or (NKY) - Japanese stock market index consisting of the 225 largest companies listed on Tokyo Stock Exchange
FTSE 100 Index (UKX) - U.K. stock market index consisting of the 100 most capitalized U.K. companies trading on the London Stock Exchange
DAX Index (DAX) - German stock market index consisting of the 30 largest and most liquid German companies trading on the Frankfurt Stock Exchange
Eurostoxx 600 - stock market index, derived from the Stoxx Europe Total Market Index, consisting of 600 large, mid – and small-sized companies from 18 European countries
Chart
Correlation - statistical measure of the linear relationship between two random variables. It is defined as the covariance divided by the standard deviation of two variables.
Historical price changes - chart reflecting the historical price changes of particular region’s stock indices
Indicators
Industry performance - weekly performance of industries within the particular stock market index
Top performers - companies within a particular stock market index showing the best or worst weekly performance
Performance - relative historical change of stock market index value
This overview can be used only for informational purposes. Dukascopy SA is not responsible for any losses arising from any investment based on any recommendation, forecast or other information herein contained.
Recommended Content
Editors’ Picks
AUD/USD holds above 0.6500 in thin trading
The Australian Dollar managed to recover ground against its American rival after AUD/USD fell to 0.6484. The upbeat tone of Wall Street underpinned the Aussie despite broad US Dollar strength and tepid Australian data.
EUR/USD comfortable below 1.0800 lower lows at sight
The EUR/USD pair lost ground on Thursday and settled near a fresh March low of 1.0774. Strong US data and hawkish Fed speakers comments lead the way ahead of the release of the US PCE Price Index on Friday.
Gold pulls away from daily highs, holds above $2,200
Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Thursday. The benchmark 10-year US Treasury bond yield stays near 4.2% after upbeat US data and makes it difficult for XAU/USD to gather further bullish momentum.
Google starts indexing Bitcoin addresses
Bitcoin address data is live on Google search results after users realized on Thursday that the tech giant started indexing Bitcoin blockchain data. However, mixed reactions have followed the tech giant's reversed stance on the cryptocurrency.
A Hollywood ending for fourth quarter GDP
The latest revisions put Q4 GDP at 3.4%, the second fastest quarterly growth rate in two years. Much of the upside was attributable to stronger consumer spending, yet fresh profits data affirmed it was a good quarter for the bottom line as well with profits up by the most since the Q2-2022.