Global stock indices increased as economic data and merger activity in the US and Europe improved investor sentiments.
Commodities
At the London afternoon fixing, gold declined $10.25 to
$1185.50, and copper futures were up 0.6% to reach $2.78. In oil, Dated Brent
spot crude decreased $0.28 to reach $56.13 and WTI spot crude dropped $0.39 to
reach $48.48.
Currencies
The Dollar Index increased 0.7% as the USD increased
relative to the EUR, JPY, GBP, CAD, AUD and CHF.
United States Equities
United States Equities
Stocks in the US peaked on Monday as Fed Chair Janet Yellen
announced that continued improvement in the US economy will reflect an increase
in the Fed’s key interest rate in the near future, albeit gradually. The Dow
Jones industrials increased 1.5%, the S&P climbed 1.2% and the Nasdaq rose
1.15%.
UnitedHealth Group advanced on news that it has agreed to buy pharmacy benefits manager Catamaran. Catamaran gained on the day. Auspex Pharmaceuticals gained after it agreed to be acquired by Teva Pharmaceuticals Industries for an approximately $3.2 billion cash payment. Horizon Pharma added 15% on news that it is buying Hyperion Therapeutics for $1.1 billion. Both companies advanced on the day. BioDelivery Sciences International lost after the drug developer said its potential treatment for pain related to diabetic neuropathy did not meet its main goal in a key study. Fujifilm Holdings agreed to acquire Cellular Dynamics International for $307 million.
European Equities
Over in Europe, equities markets were up. Eurozone economic
sentiment improved with optimism for a resolution to the financial situation in
Greece. Greece is set to resubmit a list of economic reform proposals to
international creditors today after Prime Minister Alexis Tsipras' previous
proposal met resistance from EU leaders. Germany's consumer prices increased
for the second straight month in March and Italy's consumer confidence and
business confidence climbed strongly in March, strengthening hopes of recovery
in the economy.The London FTSE was up 0.5%, the French CAC gained 1.0%, the
German DAX advanced 1.8%, while the Swiss SMI increased 1.3%. The Italian MIB and
Spanish Ibex edged up 1.2% and 0.9% respectively.
In terms of individual stocks, Adidas edged up on a broker
upgrade. Deutsche Bank, Commerzbank, Société Générale, Crédit Agricole and BNP
Paribas all gained on the day. Daimler, BMW, Volkswagen, Peugeot and Renault
all climbed on the day. WPP was up on a broker upgrade.
Asia Pacific Equities
Equities markets in the Asia Pacific region were up as the
JPY declined and commentary from People's Bank of China Governor Zhou Xiaochuan
supported the case for further monetary easing. Investor sentiment was also
improved following Federal Reserve Chair Janet Yellen’s talk on Friday that
emphasized a gradual return to normal interest rates. In China, the Shanghai
Composite increased 2.6%, while in Hong Kong the Hang Seng index was up 1.5%.
In Japan, the Nikkei increased 0.7%. Honda Motor, Canon,
Sony, Nissan Motor and Kyocera advanced as did Fast Retailing and Fanuc.
Kikkoman surged after reporting that it will record operating profit of about
¥24.7 billion.
In Australia, the S&P/ASX 200 and the All Ordinaries decreased 1.2%.
Macro Themes and Looking Ahead
Germany will be releasing February retail sales and March
unemployment. The UK will report its final revision for fourth quarter GDP.
Canada plans to post February monthly gross domestic product. Also to be
released are March consumer confidence and Chicago PMI.
