Japanese shares closed purely red

European shares were negative during previous trading week

The April 25-29 week showed the continuation of a negative tendency of the stock market in Europe. Concerning the economic data, the Euro zone economy increased by 1.6% on a yearly pace in the first quarter, showing the same rate growth as in the preceding quarter. Inflation failed to keep pace, however, sliding 0.2% year over year while core inflation rose 0.8%.

The main Europe Stoxx 600 Index dropped 1.5% to 341.48 points last week, erasing the advance for past half a year. All the major sectors, which make up the index, registered a loss, with insurance and chemicals industries losing as much as 3.5% and 3.3%, respectively. Among the biggest losers, Cobham Plc, a leading global technology and services innovator plunged more than 27% to 154 pence per share, after the company released a profit warning announcement. Restaurant Group Plc, a United Kingdom-based company, followed with a 25.1% decrease to 275.10 pence, respectively. On the other hand, Tullow Oil Plc, managed to be among the gainers, despite mixed release for the first quarter of the year. Company shares advanced 15.4% to trade at 279.70 pence.

At the same time, German and British slowed down as well, finishing the previous week lower 2.4% and 0.3%.

 

US stock indices close mostly lower compared to the previous week

Equity market in the US traded mostly down during the week ended April 29, however, the price changes were insignificant. Meanwhile, the US Federal Reserve's Federal Open Market Committee made no move on interest rates this week sending mixed signals on the timing of its next hike. Seven weeks left until the next FOMC meeting in June, so the committee will have plenty of data to digest before it meets to set rates again.

The benchmark S&P 500 Index lost only 1.08% to trade at 2,065.30 points on Friday. Utilities and energy sectors expanded the most, while technology industry dropped 3.4%. Stericycle Inc., a global business-to-business services company, dropped 22.9% from Monday to Friday to $95.56 per share, as the company reported lackluster first-quarter earnings. On the other hand, ST Jude Medical Inc, a global medical device company, surged as much as 25.6% to close the last week at $76.20 per share, since American pharmaceutical company Abbott Laboratories has agreed to acquire St. Jude Medical Inc for $25 billion .

Meanwhile, the Dow Jones Industrial Average fell only 1.13% to trade at 17,773.64 points at market closing time on Friday. NASDAQ, in turn, dropped 2.4% to 4,775.35 points by April 29.

 

Japanese shares closed purely red

Stock prices of Japanese companies declined considerably during the previous week, while the yen soared since the Bank of Japan declined to add additional monetary stimulus despite slumping inflation data and a strong yen. The Japanese core consumer price index fell 0.3% in March, the largest decline since the latest easing cycle began three years ago.

Last week, the local equity market traded down to its lowest levels in five weeks, with Topix Index gaining 6.6% to 1,340.55 points, even pushing the overall trend for the last month to the green zone. All industries included in the gauge posted a drop during last five trading days, with miscellaneous/other and securities business companies losing the most in share value, namely 4.8% and 4.6%. Nihon Trim Co Ltd., a Japan-based company primarily engaged in the manufacture and sale of electrolyzed reduction water equipment, advanced 25.5% to trade at 7,460 yen on Friday’s evening. On the other hand, Yokogawa Bridge Holdings Corporation., climbed 25.5% to 993 yen, prolonging the upward trend started on August 1.

The second-largest Japanese benchmark, Nikkei 225, finished the week 7.9% higher and traded at 16,666.05 at the end of the trading session back on Friday.

 

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

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