Asian stock markets fell Tuesday ahead of U.S. Federal Reserve and Bank of Japan policy meetings, as commodity prices ran… Though the company reported a 79 percent slide in earnings, its share price spiked sharply higher as the results were better than anticipated.
Advertisement
KEEPING SCORE: The Dow Jones industrial average lost 25 points, or 0.1 percent, to 17,951 as of 10:50 a.m. Eastern time. In the first quarter of 2016, the country’s gross domestic product grew at just 0.4 percent – in line with expectations but down from 0.6 percent in the previous quarter.
The Bank of Japan will make its policy announcement on Thursday.
The yen USDJPY, +0.10% has risen more than 9% against the USA dollar since the BOJ’s January meeting. The Nasdaq composite index gained 1 point to 4,896.
USA stocks are rising Tuesday afternoon as energy companies climb in tandem with the price of crude oil.
Japan-based suppliers of iPhone parts fell in early trade after Apple Inc reported its first-ever decline in iPhone sales and its first revenue drop in over a decade overnight.
European shares also benefited from a less-bad-than-expected 80 per cent first quarter profit fall and an unchanged dividend from BP, as well as encouraging results from UPM.
Gold edged up about 0.1 percent to US$1,245 an ounce.
The dollar fell 0.2 percent against a basket of currencies as investors waited for a Federal Reserve decision on US rates at 1800 GMT.
DuPont picked up $1.58, or 2.4 percent, to $67.55.
BONDS, CURRENCIES: Bond prices were little changed and the yield on the 10-year U.S. Treasury note held steady at 1.92 percent.
Taiwan was higher but most markets in Southeast Asia finished lower.
In commodities, USA crude oil hovered near a five-month high hit overnight thanks to a gasoline market rally and data showing a surprise draw in United States crude stockpiles.
That helped energy stocks, and ConocoPhillips rose $1.81, or 3.9 percent, to $48.08 while Pioneer Natural Resources gained $11.86, or 7.7 percent, to $165.36. The Nasdaq composite dropped 23 points, or 0.5 percent, to 4,863.
The pan-European FTSEurofirst 300 stock index and Britain’s FTSE 100 both rose 0.3 percent. France’s CAC 40 also edged 0.1 percent higher, to 4,538.12. Rob Subbaraman, MD, Nomura believes that for the US Fed, the market may start pricing in a June hike in interest rate depending if Janet Yellen suggest something on those lines.
Asian stocks are mostly lower Wednesday as an overnight surge in oil prices raises questions about the outlook for the energy sector.
LONDON (AP) – Global stock markets were trading largely higher Tuesday as traders digested a raft of corporate earnings statements from around the world in the run-up to the latest policy decisions from the U.S. Federal Reserve and the Bank of Japan.
Although the Fed is widely expected to stand pat, expectations remain high for the BOJ to take easing steps.
Japan’s Topix index lost 0.8 per cent. Canon was the second- biggest drag on the Topix after cutting its full-year operating profit forecast by 17 per cent. A majority of analysts surveyed by Bloomberg predict the BOJ will boost its buying of exchange- traded funds on Thursday. Endo International fell 83 cents, or 2.8 percent, to $29.21.
The benchmark S&P/ASX 200 index fell 32.90 points or 0.63% to 5,187.70 and the broader All Ordinaries index closed 32.70 points or 0.62% lower at 5,250.90 The big four banks lost 2-3%.
Advertisement
OIL: Benchmark U.S. crude added 24 cents to $42.88 per barrel in NY. The euro rose to $1.1307 from $1.1261.
