Global News April 26, 2016

  1. Bloomberg News
  2. Global News April 26, 2016

Bloomberg Business

-Stocks: The Stoxx Europe 600 Index rose 0.4 percent as of 8:49 a.m. New York time. BP rallied 4.6 percent and Standard Chartered jumped 12 percent in London after the bank reported a decline in loan impairments and capital increased more than some analysts estimated. Futures on the Standard & Poor’s 500 Index added 0.2 percent. Apple, the world’s most valuable company, forecast in January that quarterly revenue would drop for the first time in more than a decade as iPhone sales slowed. The company’s projection of $50 billion to $53 billion for the three months through March compares with an average estimate of $52 billion in a Bloomberg survey of analysts. The MSCI Emerging Markets Index rebounded 0.1 percent, after losing 0.4 percent, as stocks in China, India and South Korea advanced.

-Currencies: The pound strengthened rose 0.4 percent to 77.47 pence per euro, after touching the strongest level since March 14. A measure of risks to sterling following the June 23 vote on EU membership has tumbled by the most since last year’s general election. The yen strengthened 0.2 percent to 110.88 per dollar, having touched a three-week low of 111.91 on Monday. Nikkei newspaper reported that Japan’s $1.3 trillion Government Pension Investment Fund will start hedging to protect its foreign assets against an appreciating yen, a move Bank of America Merrill Lynch strategist Shusuke Yamada said could boost the local currency.

-Commodities: Copper dropped 1.1 percent in London. Stockpiles in London Metal Exchange-tracked warehouses rose for a fifth day and are up 5.4 percent in the past week, a sign that supplies may be becoming more ample. Nickel fell 0.6 percent and lead slid 0.7 percent. West Texas Intermediate crude rose 1.5 percent to $43.26 a barrel, after falling on Monday for the first time in a week. U.S. crude stockpiles probably expanded by 1.5 million barrels last week, according to a Bloomberg survey before Energy Information Administration data on Wednesday. Oil markets are signaling that prices have bottomed, even as growth in demand is forecast to slow this year, according to a senior executive at Vitol Group, an energy trader.

-Bonds: Treasuries were little changed with the 10-year yield at 1.90 percent. Monday’s closing level was the highest this month, underscoring speculation that the Fed will keep its outlook for gradual rate increases. While futures show there’s no chance of a move this week, traders have boosted the probability of a rate increase in 2016 to 64 percent from 49 percent last week. The U.S. is scheduled to sell $34 billion of five-year debt Tuesday and plans to auction seven-year notes and two-year floating-rate securities on April 28.


CNN Money

-Earnings: There are so many companies reporting earnings it’s hard to read the list without pausing for breath. Here are some of the biggest names due this morning: BP (BP), Hershey (HSY), T-Mobile US (TMUS), Office Depot (ODP), Procter & Gamble (PG), Coach (COH), Fiat Chrysler (FCAM), Jetblue Airways (JBLU), Spirit Airlines (SAVE), 3M (MMM), Barrick Gold (ABX) and Thomson Reuters (TRI). (Phew!) Then after the trading day ends, we’ll hear from the likes of Apple (AAPL, Tech30), Twitter (TWTR, Tech30), Chipotle Mexican Grill (CMG), eBay (EBAY) and AT&T (T, Tech30). Investors will be watching Apple’s earnings closely. The company is expected to say that its sales and profit both fell last quarter — that would make them the worst set of results in 13 years. Meanwhile, investors are keeping an eye on Twitter since shares in the firm have tanked by about 26% since the start of the year. Investors are worried about the company’s ability to be a standalone, viable social network.

– Global stock market overview: It looks like Tuesday will be a positive day, provided earnings season doesn’t kill the mood. U.S. stock futures are holding steady as European markets move higher in early trading. Asian markets ended the day with mixed results.

– Stock market movers — Mitsubishi Motors, BP: Shares in Mitsubishi Motors have hit a fresh low after falling by about 50% since it admitted to cheating on fuel economy tests last week. The company admitted on Tuesday that it has been using improper fuel testing methods since 1991. The shares fell 10% on Tuesday. BP (BP) shares gained 3% in London despite an 80% slump in first quarter profit. The numbers weren’t as bad as expected.

– Monday market recap: It was a relatively uneventful, uninspiring day in the markets on Monday. The Dow Jones industrial average, S&P 500, and Nasdaq each shed 0.2%.