The FTSE 100 is projected to decline 0.4% in early trade to give back most of yesterday’s 0.5% gain after Google (NASDAQ: GOOG) released positive Q1 results, which, however, still fell short of investors’ expectations. Stocks were buoyant on Thursday after a Philly Fed index update revealed a rise from 18.9 to 20.2 in March, signalling higher levels of industrial activity in Philadelphia.
Gains in European and US markets were limited after today’s weekly jobless claims update that came out in the US showed that initial claims added increased by 24,000 to 484,000 last week after adding 18,000 in the previous week.
Today’s economic data will include a housing starts update in the US and the University of Michigan consumer sentiment index.
Bank HSBC (LSE: HSBA) and oil and gas engineering firm Petrofac (LSE: PFC) led the blue chips with gains of 3%. Another banking group Barclays (LSE: BARC) followed, tacking on 2.6%. Pharmaceutical company Shire (LSE: SHP) and part-nationalised bank RBS (LSE: RBS) added 2.3%. Telecom group BT (LSE: BT.A) and cruise operator Carnival Corp (LSE: CCL) gained slightly more than 2%.
Credit information group Experian (LSE: EXPN) declined 2.9% to slide to the bottom of the pile after revealing a 3% revenue increase in the first half. Home Retail Group (LSE: HOME) declined 2.2%. British American Tobacco (LSE: BATS) lost 1.7%, while Associated British Foods (LSE: ABF), turbine manufacturer Rolls-Royce (LSE: RR) and security services group G4S (LSE: GFS) declined 1.2%.
US stocks closed higher. The Dow Jones Industrial Average added 0.2%, the broader S&P 500 index tacked on 0.1% and the technology heavy NASDAQ composite advanced 0.4%.
Asian stocks were lower. Hong Kong’s Hang Seng declined 1.3%, China’s Shanghai Composite Index declined 0.8%, Japan’s benchmark Nikkei 225 dropped 1.5%, South Korea’s KOSPI slid 0.55% and Australia’s S&P/ASX 200 dropped 0.35%.
Commodities
Oil prices retreated after making gains yesterday. June Brent Crude rose to US$87.08/barrel, while US light, sweet crude for June delivery declined to US$86.07/barrel.
Precious metals were in decline. Gold slid to US$1,152/oz, while silver and platinum dropped to US$18.25/oz and US$1,711/oz respectively.
Base metals headed in different directions as while copper and zinc declined to US$3.57/lb and US$1.11/lb, while nickel improved to US$12.35/lb.