Apple’s Earnings Beat, Ango rejects BHP bid

A massive $110 Billion share buyback program and iPhones sales dropping less than forecast have helped Apple shares rally in after hours trading. Anglo American has rejected a massive $39 billion all-stock takeover proposal from BHP. Elsewhere, the Japanese yen is on track for its best week since December 2022, after suspected interventions by Japanese authorities to bolster the currency.

Equities

On Thursday, the FTSE 100 saw a slight increase of 0.6%, reaching 8,172.15 points, approaching its recent peak. Shares in Shell climbed 1.9% following a quarterly profit announcement of $7.7 billion, surpassing expectations due to robust oil trading and higher refining margins. Standard Chartered also made significant gains, with its stock price jumping 8.8% to a six-month high after reporting a first-quarter pretax profit that exceeded estimates by 5.5%.

The FTSE 250 index also advanced, gaining 0.6%. Among the notable performers was Smurfit Kappa, whose shares increased by 5.8% after it reported a first-quarter core profit higher than the previous quarter, signalling a sustained demand for packaging.

Wall Street ended higher with positive movements across major indices, reflecting a more dovish stance from the Federal Reserve. The Dow Jones Industrial Average rose by 0.85%, adding 322.37 points to close at 38,225.66. The S&P 500 also saw an increase of 0.91%, gaining 45.81 points to reach 5,064.2. The Nasdaq Composite led the gains, up by 1.51% due to a strong performance from companies like Qualcomm.

Qualcomm saw its shares surge by 9.8% following a report of quarterly sales and profits that exceeded analysts’ expectations, which also provided a substantial boost to the chip sector and the Nasdaq.

Apple’s stockrose after reporting a smaller-than-expected decline in quarterly revenue, including in its key market China, and EPS ahead of forecasts in the latest quarter The standout news for investors was the massive new share buyback program of $110 Billion, up for $90 Billion last year and Apple raised its dividend by 4% to $0.25 per share.

Etsy saw a significant drop, with shares falling 15.0% after it missed Wall Street's expectations for first-quarter gross merchandise sales and profit. Similarly, DoorDash’s stock plummeted by 10.3% due to disappointing profit guidance.

Forex & Commodities

The Japanese yen is poised for its strongest weekly performance in over a year, appreciating 3.5% against the US dollar, which itself has faced downward pressure broadly. The yen's rally was partly driven by suspected market interventions by Tokyo, aiming to correct its descent to a 34-year low against the dollar.

In contrast, the US dollar is set for its worst week in nearly two months against a basket of currencies, dipping by 0.8%. Upcoming US nonfarm payrolls data is anticipated to provide further direction for the dollar.

The British pound experienced modest gains, rising 0.12% against the dollar and is on track for an over 0.4% increase for the week.

Turning to commodities, gold prices have been relatively stable, with a slight decrease of over 1% this week, as markets await further economic indicators from the US that could influence Federal Reserve policies.

Oil prices have also seen notable movements, with both Brent crude and West Texas Intermediate crude headed for their steepest weekly drops in three months.

Economic Calendar

• UK S&P PMI for April: Monitoring service sector growth
• Euro zone unemployment rate for March: Key indicator of economic health
• US non-farm payrolls report (April)
• Societe Generale Q1 earnings report
• Daimler Q1 earnings report
• Credit Agricole Q1 earnings report