Member access

4-Traders Homepage  >  News

News

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesHot NewsMost Read NewsRecomm.Business LeadersVideosCalendar 

Asian stocks muted, Europe shows more life

04/29/2014 | 02:56am US/Eastern

Asian share markets put in an indecisive performance on Tuesday as caution ahead of some major events this week overshadowed a late rally on Wall Street, though futures pointed to opening gains for European stocks.

The Eurostoxx 50 contract was up 0.5 percent, while the FTSE rose 0.3 percent and the DAX 0.7 percent. Deutsche Bank reported a 30 percent drop in profit but still managed to beat forecasts.

Among currencies, the euro made promising progress on the yen and Australian dollar even as a holiday in Tokyo sapped market liquidity elsewhere.

Activity in Asia had been very much muted with MSCI's broadest index of Asia-Pacific shares outside Japan drifting off 0.25 percent.

Australia's market did hit a six-year peak early, only to run into profit-taking ahead of earnings results from the major local banks.

In South Korea, Samsung Electronics slipped 2 percent after reporting its second straight fall in quarterly profit as weakness in flat-screen panels and the maturing high-end smartphone business weighed on earnings.

The company held out the hope that the football World Cup in Brazil would help boost sales of screens and smartphones as fans invest in fancy gadgets to watch the action.

In contrast, shares in competitor LG Electronics jumped almost 4 percent after its operating profit rose 44 percent on a year earlier as growth in sales of high-end TV models helped offset losses from its handset business.

After an erratic performance on Tuesday, Wall Street had mostly ended in the black. The Dow firmed 0.53 percent and the S&P 500 0.32 percent. The Nasdaq finished flat amid falls in Amazon and Facebook.

The gains owed much to the M&A fever in pharmaceuticals after Pfizer Inc said it approached AstraZeneca Plc to reignite a potential $100 billion bid.

ECB IN NO HURRY

The potential, albeit distant, that Pfizer might need pounds to pay for the bid gave speculators a reason to go long on sterling. The currency climbed to a four-and-a-half year peak on the dollar at $1.6856 before fading to $1.6813.

The euro followed the pound higher to as far as $1.3879, aided in part by a Reuters report playing down the chance of any near-term easing in euro zone monetary policy.

European Central Bank President Mario Draghi told lawmakers from Germany's ruling coalition on Monday that low inflation would persist but quantitative easing remains some way off, according to a source who took part in the meeting.

On Tuesday, the euro was holding at $1.3866 and still well within the $1.3783/$1.3905 band that has held for the last couple of weeks. It did manage to break chart resistance on both the yen and Australian dollar which could open the way to further gains.

The dollar was hovering at 102.54 yen as investors waited to see if this week's Federal Reserve policy meeting or U.S. jobs data provided the impetus to break the range.

The Bank of Japan holds its policy meeting on Wednesday, while a raft of economic data are due over the next few days including euro zone inflation and GDP from the UK and U.S.

In commodity markets, Brent crude oil added 21 cents to $108.33 a barrel, but that followed a drop over a dollar on Monday when Libya paved the way to restart exports at a second port after a deal with rebels to unblock major terminals.

U.S. crude gained 18 cents to $101.02 a barrel.

Spot gold faded to $1,295.11 an ounce after failing to break resistance around $1,306.00.

(Editing by Shri Navaratnam)

By Wayne Cole

React to this article
Latest news
Date Title
<1m ago CLECAT COMITÉ DE LIAISON EUROPÉEN : 4th Railway Package - Open letter to Transport Council
<1m ago SHUI ON LAND : to Form a JV with Middle East Institutional Investor to Capture New Knowledge Community Opportunities in China
<1m ago ADVANCED COMPUTER SOFTWARE : Housing Group saves £50,000 a year and improves employee engagement with mobile HR solution from Advanced
<1m ago FIRST CHINA FINANCIAL NETWORK : Circulars -
<1m ago ISTAT ISTITUTO NAZIONALE DI STATISTICA : Employment and unemployment (monthly)
<1m ago AUTO ITALIA : Change of Principal Place of Business in Hong Kong and Non-Compliance with Rules 3.10(1), 3.10A, 3.21 and 3.25 of the Listing Rules
<1m ago FIRST CHINA FINANCIAL NETWORK : Announcements and Notices -
<1m ago ISTAT ISTITUTO NAZIONALE DI STATISTICA : Employment and unemployment (quarterly)
<1m ago FIRST CHINA FINANCIAL NETWORK : Proxy Forms
<1m ago ABTERRA : Resignation And Appointment Of Financial Controller
Latest news
Advertisement
Hot News 
DIXONS CARPHONE : Currys PC World stands poised for one order every second on Black Friday
MJ GLEESON : Expects Results To Beat Expectations On Strong Homes Unit
YOUGOV : Stresses of modern life keeping women awake
BG : *traders: nomura cuts bg group to 'reduce'
POWERLAND POWERLAND CONTINUES SUSTAINABLE RECOVERY WITH STRONG THIRD QUARTER RESULT : Powerland AG: Powerland continues sustainable recovery with strong third quarter results (DGAP News)
Most Read News
1d ago WHOLE FOODS MARKET : Jordan named president of Whole Foods’ Rockies division
1d ago GLENCORE : invests in Congo hydropower as solution to blackouts
1d ago SIMON PROPERTY : May Be Looking to Buy Macerich, Recent Transactions Indicate
1d ago MACERICH : 10 Must Reads for the CRE Industry Today (November 20, 2014)
1d ago NAVISTAR : New disaster-relief truck design unveiled
Most recommended articles
4m agoDJManaging Asia's Wealth The HSBC Way -- Barron's Asia
5m ago FTSE hits one-week low as energy stocks slump
6m ago ECB's Nouy says banks must show they can make profits
8m ago ECB's Nouy says banks must show they can make profits
9m agoDJPalm Oil Could Put Cash In Hand -- Barron's Asia
Dynamic quotes  
ON
| OFF