Morning Message

Thursday Market Update

Thursday 13th April 2017

Ahead of the long Easter Weekend here are how markets were this morning…

US stocks declined as investors looked for defensive shares and other low risk assets amid lingering geopolitical concern. The Dow Jones Industrial (-0.29%), S&P 500 (-0.38%) and the NASDAQ Composite (-0.52%) declined. Investors are concerned that recent events in Syria could distract Trump from pursuing pro-business policies such as tax cuts, simpler regulations and higher infrastructure spending, promises that have powered Wall Street to record highs since his election in November. Delta Air Lines was up +0.5%, boosted by better than expected quarterly profit and an upbeat forecast for current quarter passenger unit revenue. Wells Fargo, Citigroup and JPMorgan are due to report results later today.

Asian markets closed mixed, with Japanese shares dropping amid a stronger yen against the dollar. The Nikkei 225 (-0.68%), Hang Seng (-0.21%) and S&P/ASX 200 (-0.74%) all retreated. China’s exports rose 16.4% in March, beating a Reuter’s analyst forecast of 3.2% to reverse a decline of 1.3% in February. Toshiba lost -5.02% after Western Digital warned that the troubled Japanese conglomerate will breach a joint venture contract if it sells its memory chip unit. Major resources producers were notably lower, with Rio Tinto down -4.43%, Fortescue down by -6.78% and BHP Billiton lower by -3.99%.

European shares fell this morning and looked set for a weekly loss as banking shares weighed on the indexes. The ESTX 50 (-0.49%), UK markets (-0.50%), Dax (-0.29%) and the CAC 40 (-0.55%) all posted losses in early trading. The banking index was down -0.9%, at a five week low, set for its fifth straight day of losses as investors globally fled risky assets. Banco Popular led losses, down -3.5%. Svenska Cellulosa Aktiebolaget jumped +5.6% after a Swedish paper said a group of private equity companies bid around 200 billion Swedish crowns for the hygiene arm of the tissue and forestry products firm. Centamin rose +5% as an increase in gold prices on rising political tensions and President Trump’s comments on the dollar’s strength provided a boost to gold miners.

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