World markets overnight: Nasdaq's six-day run ends

Stocks on Wall Street edged lower as declines in biotechnology shares weighed on the Nasdaq Composite.

The Dow Jones Industrial Average shed 13 points, or 0.1%, to 18,066 and the S&P 500 slipped five points, or 0.2%, to 2113.

The Nasdaq Composite lost 27 points, or 0.5%, to 5065. The Nasdaq Biotechnology Index declined 3.7%, on track for its second straight session of losses.

The pullback in the Nasdaq snapped a five-day winning streak. The S&P and Nasdaq both closed at records last Friday, marking the sixth for the S&P and the second for the Nasdaq this year.

Several economic reports are scheduled for release this week, including the first reading on first-quarter US economic growth, consumer spending for March and the Federal Reserve’s preferred inflation gauge.

The Fed’s statement on monetary policy, due on Wednesday, will also attract attention.

Earnings will continue to stream in this week. Including results from 201 companies in the S&P 500, earnings are on track to decline 2.8% from a year earlier, according to FactSet.

A decline in year-over-year earnings in the first quarter would be the first since the third quarter of 2012, when earnings fell 1%.

Analysts have slashed forecasts as they expect the strong US dollar and weak oil prices to weigh on profits and revenues.

About 73% of companies have beat those lowered profit expectations, while just 47% of companies have topped revenue estimates, according to FactSet.

International markets
European stocks rose after Greece reshuffled its team for bailout negotiations. Time is running out for Greece and its creditors to reach a new bailout deal, with the loans Greece owes to the International Monetary Fund due in early May.

The Stoxx Europe 600 closed 1.0% higher, building on the previous week’s gains, and Greece’s Athex Composite index surged 4.4%, led by bank stocks.

Germany’s DAX shrugged off small early losses to climb 1.9%, France’s CAC 40 rose 1.3%, while the UK’s FTSE 100 advanced 0.5%.

Asian markets rose, with Australia’s S&P ASX 200 taking another stab at an elusive seven-year high with the help of gains in mining stocks.

It finished less than 20 points short of 6000, a level not breached since January 2008, though it has come close more than once in recent weeks. The index ended the day up 49.4 points, or 0.8%, at 5982.7. 

In China, Shanghai shares jumping on the latest rhetoric from Beijing on reform.

The Shanghai Composite Index finished 3% higher at 4527.40, after local reports that China is planning a new wave of mergers in the state sector, reducing the number of companies owned by the central government by nearly two-thirds.

Monday’s rise was the second-biggest of the year and continued seven straight weeks of gains.

Commodities and currencies
Gold futures rose 2.4% to $1203.60 an ounce.

Light, sweet crude for June delivery settled down 16USc, or 0.3%, at $US56.99 a barrel in New York. Brent crude, the global benchmark, fell 45USc, or 0.7%, to $US64.83.

US treasury prices rose slightly, pushing the 10-year yield down to 1.907% from 1.917%.

In currency markets, the euro rose 0.2% against the dollar to $US1.0893 and the UK pound gained 0.3% against the buck to $1.5229.