Save from as low as €40 per month Change modify pause
Markets Bounce
Global markets managed to bounce on Wednesday after a dismal start to the week. Biotech drug companies made their biggest gains in almost five years, leading the recovery together with energy stocks which got a boost from recovering oil prices. Markets have held on to the gains this morning and have continued to trade higher, although the upcoming earnings period is likely to limit further gains for the moment.
The oil rebound, triggered in part by an unexpected fall in US crude inventories, came on the back of renewed pressure on the US dollar after minutes of the US Federal Reserve's most recent policy meeting offered little optimism over the state of global growth and the prospect of a rise in interest rates in June. This also helped precious metals such as gold rally. With policy makers not rushing to raise rates, gold benefits as it becomes more attractive against interest-bearing assets. Silver, platinum and palladium also registered gains.
The weaker dollar also contributed to a rise in China’s foreign-exchange reserves. Many analysts had expected a further decline but the world’s largest currency pile rose after capital outflow pressure eased and the yuan steadied. Authorities have stemmed a record tide of departing money with stricter currency rules and repeated statements they don’t want a big devaluation in the yuan. The People’s Bank of China also released the reserves denominated in Special Drawing Rights, or SDR, for the first time last month in Paris. The yuan will be added to the International Monetary Fund’s SDR basket, which is composed of the dollar, euro, yen and pound, later this year.
Top Stock Stories
Sales of the new Galaxy S7 boosted sales and profits for Samsung as much as 10% in the first quarter of the year. The South Korean tech giant’s figures for first-quarter operating profit came in well above market forecasts, boosting hopes of a first annual profit gain from its mobile business in three years. A full breakdown of the results will not be released until late April.
Analysts are doubting whether this is a turning point or a peak for Samsung, as rivals Apple and Huawei prepare the launch their latest flagship smartphones. Just one year ago, sales of the highly-praised Galaxy S6 flopped after rivals launched their offerings and the decision by Samsung to launch earlier than usual may have just brought forward sales revenue.
ZTE Corp.’s shares plunged as much as 16% Thursday upon resuming trading following a month-long suspension, as the Chinese telecommunications giant announced an overhaul of its top management, replacing three of its most senior executives including its chief executive.
ZTE, which sells smartphones as well as networking equipment, is trying to rebuild its business and reputation after the U.S. Commerce Department last month slapped trade sanctions on the company, alleging it had violated rules that restrict exports of American technological goods to Iran and other nations. On Tuesday, ZTE. The Shenzhen-based company said it cannot fully assess the potential legal liabilities or their impact on its financial conditions stemming from the continuing probe by US authorities.
Honda has recalled approximately 143,000 vehicles after an airbag failed to deploy in a car collision. The airbag, fitted with an inflator made by Daicel had an ‘inappropriate propellant’ according to a Honda spokesperson. This recall, although unrelated, follows another broad-based US recall due to airbags supplied by Takata Corp. In the latter case, the airbags fitted by Takata were inflating with excessive force, causing the airbag to rupture and injure drivers and passengers.
Pfizer Inc, the biggest US-based drug-maker has called off the acquisition of Allergan which would have seen it moving to Ireland – on paper. The deal, worth $160 billion, was terminated ‘by mutual agreement’ but was the result of stricter rules by the Treasury department which is clamping down on tax avoidance. The takeover bid was not a hostile one, but Pfizer has agreed to pay Dublin-based Allergan $150 million for reimbursement of its deal-related expenses.
Long-time McDonalds chairman Andrew McKenna will be stepping down after 25 years at the helm of the hamburger chain. McKenna h ad first planned to leave McDonald’s board in 2003 when he reached McDonald’s mandatory retirement age for directors of 73, but he stayed on as McDonald’s went through a CEO transition. The age limit was removed later. McKenna will have the title of Chairman Emeritus after his retirement, and the board will elect a new independent chairman following the election of directors by shareholders at the annual meeting on May 26.
You are signing up to receive news, updates, general market announcement, articles and product or service marketing. By signing up you are consenting to our privacy policy and can unsubscribe at any time.