A product of strong financial results and improved economic outlook saw major US indices rise. On the back of the earlier US Fed rate decision European equities saw mixed results. Hong Kong's tech sector, a diamond in the rough, as the rest of Asia stagnated. Australia and NZ held steady.
All major US indices rose as the Fed remained unchanged and focus is directed to job report released later this week. The Dow added +0.8%, S&P 500 +0.85%, and the NASDAQ +1.4%. Esty lost -13.8% as first-quarter profit expectations were missed. Carvana jumped +33.8% after the used-car seller forecast impressive returns for the present quarter. On the other hand, Door Dash lost -12.0% as forecasts were lower than the market anticipated. Apple added +1.5% in anticipation of its quarterly results release. A strong quarter in China saw MGM Resorts surpass Wall Street expectations and add +2.6%. In the session following the Fed's decision to hold, the US 2-year treasury bond yield fell -5 bps to 4.89% while the 10-year decreased -1 bp to 4.58%.
In Europe, the FTSE 100 was up +0.6% as strong earnings persist whilst the Stoxx 600 dropped a mere -0.2%. German retailer Hugo Boss dropped -3.0% despite outperforming market expectations with a strong financial outlook for the coming year. Standard Chartered added +5.4% after higher interest rate led growth drove strong reported first-quarter earnings. After launching its $3.5b share buyback program, energy distributor Shell added +1.2%. WorldLine jumped +10.2% following a +2.5% organic rise in first-quarter revenue.
A generally poor day for Asian markets as the KOSPI (-0.3%), Nikkei 225 (-0.1%), Shanghai Composite (-0.3%), and the CSI 300 (-0.5%) all dropped slightly. Conversely, the Hang Seng added +2.5% propelled by gains in the tech sector. In Australia, the ASX 200 was near flat at +0.2%. Fears of increased competition, looming inflation, and tighter customer spending over the coming 12 months pushed Woolworth’s stock down -4.2%. The report spread across the wider retail sector as Coles fell -1.9% despite impressing the market with first-quarter results earlier in the week. An increase in its share buyback plan and first-quarter cash earnings saw National Australia Bank gain +1.5%. Recent weakness in crude oil placed pressure on the energy sector, Woodside Energy dropped -1.2% and Santos, -0.8%. The NZX 50 remained finished the day +0.1%.
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This morning summary has been provided by Forsyth Barr Ltd and is for general information purposes only - your financial situation or goals have not been taken into account. If you would like more information or advice that is specific to you, talk to your financial adviser.