Retail and food services sales increased 0.1% from the previous month in August as consumers showed resilience despite growing anxieties about the economic slowdown. 

The sales data adjusted for seasonal and calendar effects but not for inflation. 

The monthly growth slowed sharply from the revised 1.1% increase in the previous month. 

On an annual basis, retail sales growth eased to 2.1%, a slowdown in growth for the third month in a row, the U.S. Commerce Department reported Tuesday.

Retail trade sales were up 0.1% from July and up 2.0% from last year, and nonstore retail sales were up 7.8%, while sales at food services and drinking places were up 2.7%, respectively. 

Sales at gasoline stores decreased 1.2% following the fall in gasoline prices, and electronics and appliance store sales eased 0.7%. 

Meanwhile, retail sales excluding food services, auto dealers, building materials stores, and gas stations, which are used to calculate GDP, were up 0.3%, following an upwardly revised 0.4% rise in July.

The Fed's lowering of inflation will only stoke inflationary forces in the months ahead, sending another ripple of higher prices.

 

Consumer price inflation in August slipped for the fifth month in a row to 2.5%, largely because of the weakness in energy prices, the Bureau of Labor Statistics reported Wednesday. 

Energy costs declined 4% compared to a rise of 1% in the previous month, overshadowed by the increase in housing inflation to 5.2% from 5.1% in July. 

On a monthly basis, inflation held steady at 0.2%, matching the rate in the previous month, driven by a 0.5% rise in shelter costs. 

Core inflation, which excludes volatile food and energy prices, steadied at a three-year low of 3.2%, indicating slow progress in weakening well-anchored inflation. 

After the inflation report, investors still held out for at least a 25 basis points rate cut next week. 

Despite the widely anticipated rate cut, inflation is well-anchored in the economy, and rates are far from restrictive, as the U.S. economy is still adding jobs above the long-term average and GDP is expanding at a faster rate than 2%. 

Moreover, an interest rate cut is not likely to alter the long-term structural issues with the economy, international trade competitiveness, widening inequality, and entrenched poverty. 

 

Cautious Optimism Drives S&P 500 Index to New Intraday High, Global Markets Trade Sideways

Benchmark indexes on Wall Street lacked direction, and retail sales were ahead of expectations. 

The S&P 500 index and the Nasdaq Composite traded in a tight range as investors reviewed the latest update on retail sales in August. 

The S&P 500 index edged lower after creating a new intraday high of 5,670.81. 

Investors are anticipating the Federal Reserve to lower rates by at least 25 basis points, and many on Wall Street are hoping for the Fed to take a bold stance and cut rates by 50 basis points. 

Despite eleven rate increases over 2022 and 2023, prices are still rising faster than the Fed's 2% target rate. 

Moreover, inflation is seeping deeper into the economy, and service sector inflation is well above 3%. 

In addition, even though the pace of price increases has slowed from a year ago, prices are rising from a higher base, hitting the consumers who are living on relatively fixed income. 

The decline in overall inflation is largely driven by the fall in goods inflation and a decline in energy prices, and very little of this could be credited to the Fed's policy and measures. 

August Retail Sales Surpassed Market Expectations 

Retail and food services sales increased 0.1% from the previous month in August as consumers showed resilience despite growing anxieties about the economic slowdown. 

The sales data adjusted for seasonal and calendar effects but not for inflation. 

The monthly growth slowed sharply from the revised 1.1% increase in the previous month. 

On an annual basis, retail sales growth eased to 2.1%, a slowdown in growth for the third month in a row, the U.S. Commerce Department reported Tuesday.

Retail trade sales were up 0.1% from July and up 2.0% from last year, and nonstore retail sales were up 7.8%, while sales at food services and drinking places were up 2.7%, respectively. 

Sales at gasoline stores decreased 1.2% following the fall in gasoline prices, and electronics and appliance store sales eased 0.7%. 

Meanwhile, retail sales excluding food services, auto dealers, building materials stores, and gas stations, which are used to calculate GDP, were up 0.3%, following an upwardly revised 0.4% rise in July.

The Fed's lowering of inflation will only stoke inflationary forces in the months ahead, sending another ripple of higher prices.

U.S. Indexes and Treasury Yields

The S&P 500 index decreased 0.3% to 5,618.74, the Nasdaq Composite fell 0.1% to 17,578.0, and the Russell 2000 index advanced 1.3% to 2,216.95. 

The yield on 2-year Treasury notes edged higher to 3.59%, 10-year Treasury notes inched down to 3.63%, and 30-year Treasury bonds inched lower to 4.0%.

WTI crude oil increased $1.73 to $71.81 a barrel, and natural gas prices edged up 3 cents to $2.41 a thermal unit.

Gold fell by $20.62 to $2,562.90 an ounce, and silver decreased by $0.11 to $30.63.

The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 100.75.

U.S. Stock Movers

Microsoft Corp. jumped 2.2% to $440.71 after the software developer announced a $60 billion stock buyback plan and increased its dividend by 10.7% to 83 cents per share. 

Intel Corp. advanced 2.4% to $21.42, and the advanced chipmaker said it plans to create a new entity for its foundry business, allowing the unit to raise its own capital. 

Hewlett Packard Enterprise jumped 5.5% to $18.17 after Bank of America upgraded the stock to "buy" from "neutral," citing several catalysts for the company's server demand. 

European Markets Advanced, German Investor Morale Dropped to 11-Month Low 

European markets advanced for the second consecutive day in a row and extended weekly gains ahead of key monetary policy decisions. 

Benchmark indexes in London, Paris, and Frankfurt advanced ahead of rate decisions from the U.S. Federal Reserve Bank, the Bank of England, the Norges Bank, and the Bank of Japan. 

Investors are hoping that the Federal Reserve will deliver a widely anticipated rate cut of at least 25 basis points, but the central banks of the U.K., Norway, and Japan are likely to hold rates steady. 

Consumer price inflation in the U.S. has slowed over the last eighteen months, but that decline is largely reflecting lower energy prices. 

Prices are still rising at a faster pace than the Fed's target rate of 2% and from a higher base, stretching consumer budgets for most families. 

Moreover, the service sector inflation is still above 4%, and many small and medium-sized businesses are still looking to pass on higher operating costs to consumers, which is likely to keep inflation at an elevated pace for several more months. 

Closer to home, the ZEW Indicator of Economic Sentiment for Germany plunged to 3.6 in September from 19.2 in August, the Center for European Economic Research announced Tuesday. 

The investor morale indicator declined for the third month in a row and fell to the lowest level since October 2023. 

Investors are widely discounting the hope for an economic rebound in Germany amid rising cost of living, elevated interest rates, and weakening labor market conditions. 

Europe Indexes and Yields

The DAX index increased by 0.5% to 18,730.69; the CAC-40 index rose by 0.5% to 7,487.42; and the FTSE 100 index increased by 0.4% to 8,309.56. 

The yield on 10-year German bonds edged lower to 2.10%, French bonds inched lower to 2.82%, the UK gilts edged down to 3.74%, and Italian bonds decreased to 3.44%.

The euro edged up to $1.11; the British pound inched higher to $1.32; and the U.S. dollar weakened to 84.46 Swiss cents.

Brent crude decreased $0.22 to $72.52 a barrel, and the Dutch TTF natural gas rose by €0.47 to €34.78 per MWh. 

Europe Stock Movers

Kingfisher plc increased 7.7% to 310.90 pence after the UK-based home improvement retailer raised the lower end of its fiscal 2025 profit estimate. 

Sales in the first half declined 1.8% to £6.7 billion from £6.9 billion, pre-tax income increased 2.3% to £324 million from £317 million, and earnings per share advanced 3.9% to 12.8 pence from 12.4 pence a year ago. 

The company blamed the sales weakness to a decline in sales of large tickets and unusual weather conditions. 

The retailer also lifted its annual profit-before-tax range to between £510 million and £550 million from the previous estimate between £490 million and £550 million. 

Barry Callebaut increased 6.9% to CHF 1,557.0 after Barclays upgraded the stock to "overweight" from "underweight," citing a decline in cocoa prices and the company's focus on improving its operating costs. 

The company has closed underperforming plants in Italy, Malaysia, and Germany and expressed confidence that it is on track to achieve its $250 million cost-cutting target by the end of fiscal year 2027. 

Essentra PLC plunged 18.2% to 136.80 pence after the UK-based manufacturing company lowered its annual outlook in the current fiscal year, citing market challenges. 

The company revised its annual profit estimate to between £40 million and £42 million, citing adverse market conditions and a negative foreign exchange impact of £2 million. 

The company reversed its previous outlook of an improvement in volume in the expectations of a rebound in demand in Europe, including Turkey. 

However, sales have lagged the company's expectations in the second half in the U.S. and APAC region. 

Japan Indexes Plunged Nearly 2% Ahead of Rate Decisions 

Benchmark indexes in Tokyo faced selling pressure ahead of the monetary policy decisions by the Bank of Japan on Friday. 

The Nikkei 225 stock average declined as much as 2% and the Topix index fell as much as 1.8%, and losses in tech stocks contributed to the market weakness. 

Investors turned cautious after a three-day holiday and reacted to the weak tech stocks on Wall Street ahead of rate decisions this week by the Federal Reserve Bank, the Bank of England, the Norges Bank, and the Bank of Japan. 

The Bank of Japan is widely anticipated to hold its interest rate range, but investors are looking forward to the central bank's rate outlook and the timing of future rate increases. 

The yield on 10-year Japanese bonds fell to a one-year low of 0.83%, ahead of the central bank's rate decisions. 

The Japanese yen traded at 140.34 against the U.S. dollar in Tokyo as investors turned cautious. 

Investors are also hoping that the Federal Reserve Bank will lower its key lending rates by at least 25 basis points, shrinking the gap with rates in Japan. 

Japan Stock Movers 

The Nikkei 225 stock average decreased 1% to 36,180.30, and the Topix index declined 0.7% to 2,554.52. 

Tech stocks led the losers in Tokyo following sharp losses in overnight trading in New York after investors worried that the Apple iPhone 16 sales may lag expectations. 

Tokyo Electron decreased 5.2% to ¥22,440.0, Advantest dropped 5.6% to ¥6,016.0, and Screen Holdings declined 2.9% to ¥9,577.0. 

Retailers were also among the leading decliners after the yen continued to advance. 

Seven & I Holdings declined 0.4% to ¥2,158.50, Isetan Mitsukoshi dropped 3% to ¥2,196.50, and Fast Retailing added 0.4% to ¥44,070.0. 

Banks accelerated losses for the second session in a row ahead of the Bank of Japan's rate decisions on Friday. 

Mizuho Financial Group declined 2.5% to ¥2,746.50, Sumitomo Mitsui decreased 2.6% to ¥8,750.0, and Mitsubishi UFJ dropped 2.2% to ¥1,419.0. 

Property Stocks Rebound In Hong Kong, Midea Group IPO Sizzles On Debut 

Stocks in Hong Kong advanced for the fourth day in a row, and property stocks led the gainers. 

The Hang Seng index soared more than 1.5%, and the financial markets in mainland China are set to resume trading on Wednesday after a 4-day weekend. 

Stocks advanced ahead of the possible rate cut by the U.S. Federal Reserve on Wednesday, and investors increased their bets that the central bank is more likely to cut rates by 50 basis points. 

Amid widespread speculation, investors are hoping that the Federal Reserve is expected to signal that the central bank is prepared to lower rates by as much as 100 basis points by the end of 2024. 

Rate cuts in the U.S. also automatically lower interest rates in Hong Kong to maintain the city's currency peg with the U.S. dollar. 

Moreover, the Bank of England is scheduled to hold its rate steady on Thursday, and the Bank of Japan is likely to keep its interest rate range unrevised on Friday. 

Market sentiment in Hong Kong was also boosted by the expectation that the Chinese government will provide additional stimulus following weak economic data over the weekend. 

China Stock Movers 

The Hang Seng index added 1.6% to 17,696.54, and financial markets in mainland China were closed for a holiday. 

Midea Group increased 10% to HK $59.30, and the Foshan-based electric appliance and household consumer electronics maker raised HK $31 billion in an offering last week. 

The company priced its Hong Kong initial public offering at HK $54.80 per share and raised $3.98 billion in the largest offering in three years. 

The company is likely to exercise its option to sell additional shares amid strong interest from international investors and increase its offering size to $4.6 billion. 

The company is the largest maker of white goods, and the appliance maker also owns Germany-based industrial robot company Kuka. 

The company's stock in Hong Kong traded at a 20% discount to its closing price in Shenzhen at ¥63.51.

Tech stocks advanced in Hong Kong trading, tracking gains on Wall Street in overnight trading. 

Alibaba Group gained 1.6% to HK $82.95, Tencent Holdings jumped 0.9% to HK $381.20, and Baidu gained 1% to HK $83.50. 

Henderson Land Development increased 3.2% to HK $24.55, Sun Hung Kai Properties gained 2.2% to HK $80.80, and CK Asset Holdings gained 4.4% to HK $32.30. 

U.S. Movers: Hewlett Packard Enterprise, Intel, Microsoft

Microsoft Corp. jumped 2.2% to $440.71 after the software developer announced a $60 billion stock buyback plan and increased its dividend by 10.7% to 83 cents per share. 

Intel Corp. advanced 2.4% to $21.42, and the advanced chipmaker said it plans to create a new entity for its foundry business, allowing the unit to raise its own capital. 

Hewlett Packard Enterprise jumped 5.5% to $18.17 after Bank of America upgraded the stock to "buy" from "neutral," citing several catalysts for the company's server demand. 

S&P 500 and Nasdaq Composite Traded Higher After Retail Sales Advanced

Benchmark indexes on Wall Street advanced after retail sales were ahead of expectations. 

The S&P 500 index and the Nasdaq Composite gained 0.1% as investors reviewed the latest update on retail sales in August. 

Investors are anticipating the Federal Reserve to lower rates by at least 25 basis points, and many on Wall Street are hoping for the Fed to take a bold stance and cut rates by 50 basis points. 

Despite eleven rate increases over 2022 and 2023, prices are still rising faster than the Fed's 2% target rate. 

Moreover, inflation is seeping deeper into the economy, and service sector inflation is well above 3%. 

In addition, even though the pace of price increases has slowed from a year ago, prices are rising from a higher base, hitting the consumers who are living on relatively fixed income. 

The decline in overall inflation is largely driven by the fall in goods inflation and a decline in energy prices, and very little of this could be credited to the Fed's policy and measures. 

August Retail Sales Surpassed Market Expectations 

Retail and food services sales increased 0.1% from the previous month in August as consumers showed resilience despite growing anxieties about the economic slowdown. 

The sales data adjusted for seasonal and calendar effects but not for inflation. 

The monthly growth slowed sharply from the revised 1.1% increase in the previous month. 

On an annual basis, retail sales growth eased to 2.1%, a slowdown in growth for the third month in a row, the U.S. Commerce Department reported Tuesday.

Retail trade sales were up 0.1% from July and up 2.0% from last year, and nonstore retail sales were up 7.8%, while sales at food services and drinking places were up 2.7%, respectively. 

Sales at gasoline stores decreased 1.2% following the fall in gasoline prices, and electronics and appliance store sales eased 0.7%. 

Meanwhile, retail sales excluding food services, auto dealers, building materials stores, and gas stations, which are used to calculate GDP, were up 0.3%, following an upwardly revised 0.4% rise in July.

The Fed's lowering of inflation will only stoke inflationary forces in the months ahead, sending another ripple of higher prices.

U.S. Indexes and Treasury Yields

The S&P 500 index increased 0.5% to 5,657.95, the Nasdaq Composite rose 0.8% to 17,728.08, and the Russell 2000 index advanced 0.9% to 2,207.92. 

The yield on 2-year Treasury notes edged higher to 3.59%, 10-year Treasury notes inched down to 3.63%, and 30-year Treasury bonds inched lower to 4.0%.

WTI crude oil increased $0.15 to $70.25 a barrel, and natural gas prices edged up 3 cents to $2.41 a thermal unit.

Gold fell by $6.0 to $2,577.67 an ounce, and silver increased by $0.04 to $30.79.

The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 100.75.

U.S. Stock Movers

Microsoft Corp. jumped 2.2% to $440.71 after the software developer announced a $60 billion stock buyback plan and increased its dividend by 10.7% to 83 cents per share. 

Intel Corp. advanced 2.4% to $21.42, and the advanced chipmaker said it plans to create a new entity for its foundry business, allowing the unit to raise its own capital. 

Hewlett Packard Enterprise jumped 5.5% to $18.17 after Bank of America upgraded the stock to "buy" from "neutral," citing several catalysts for the company's server demand. 

Europe Movers: Barry Callebaut, Essentra, Kingfisher

European markets advanced ahead of rate decisions from major central banks later in the week. 

German investor sentiment dropped to an 11-month low amid faltering economic recovery and growing problems in the automobile sector.   

The DAX index increased by 0.9% to 18,794.30; the CAC-40 index rose by 0.9% to 7,514.68; and the FTSE 100 index increased by 7% to 8,339.07. 

The yield on 10-year German bonds edged lower to 2.10%, French bonds inched lower to 2.82%, the UK gilts edged down to 3.74%, and Italian bonds decreased to 3.44%.

Kingfisher plc increased 7.7% to 310.90 pence after the UK-based home improvement retailer raised the lower end of its fiscal 2025 profit estimate. 

Sales in the first half declined 1.8% to £6.7 billion from £6.9 billion, pre-tax income increased 2.3% to £324 million from £317 million, and earnings per share advanced 3.9% to 12.8 pence from 12.4 pence a year ago. 

The company blamed the sales weakness to a decline in sales of large tickets and unusual weather conditions. 

The retailer also lifted its annual profit-before-tax range to between £510 million and £550 million from the previous estimate between £490 million and £550 million. 

Barry Callebaut increased 6.9% to CHF 1,557.0 after Barclays upgraded the stock to "overweight" from "underweight," citing a decline in cocoa prices and the company's focus on improving its operating costs. 

The company has closed underperforming plants in Italy, Malaysia, and Germany and expressed confidence that it is on track to achieve its $250 million cost-cutting target by the end of fiscal year 2027. 

Essentra PLC plunged 18.2% to 136.80 pence after the UK-based manufacturing company lowered its annual outlook in the current fiscal year, citing market challenges. 

The company revised its annual profit estimate to between £40 million and £42 million, citing adverse market conditions and a negative foreign exchange impact of £2 million. 

The company reversed its previous outlook of an improvement in volume in the expectations of a rebound in demand in Europe, including Turkey. 

However, sales have lagged the company's expectations in the second half in the U.S. and APAC region. 

European Markets Advanced Ahead of Rate Decisions, German Investor Morale Dropped to 11-Month Low

European markets advanced for the second consecutive day in a row and extended weekly gains ahead of key monetary policy decisions. 

Benchmark indexes in London, Paris, and Frankfurt advanced ahead of rate decisions from the U.S. Federal Reserve Bank, the Bank of England, the Norges Bank, and the Bank of Japan. 

Investors are hoping that the Federal Reserve will deliver a widely anticipated rate cut of at least 25 basis points, but the central banks of the U.K., Norway, and Japan are likely to hold rates steady. 

Consumer price inflation in the U.S. has slowed over the last eighteen months, but that decline is largely reflecting lower energy prices. 

Prices are still rising at a faster pace than the Fed's target rate of 2% and from a higher base, stretching consumer budgets for most families. 

Moreover, the service sector inflation is still above 4%, and many small and medium-sized businesses are still looking to pass on higher operating costs to consumers, which is likely to keep inflation at an elevated pace for several more months. 

Closer to home, the ZEW Indicator of Economic Sentiment for Germany plunged to 3.6 in September from 19.2 in August, the Center for European Economic Research announced Tuesday. 

The investor morale indicator declined for the third month in a row and fell to the lowest level since October 2023. 

Investors are widely discounting the hope for an economic rebound in Germany amid rising cost of living, elevated interest rates, and weakening labor market conditions. 

Europe Indexes and Yields

The DAX index increased by 0.9% to 18,794.30; the CAC-40 index rose by 0.9% to 7,514.68; and the FTSE 100 index increased by 0.7% to 8,339.07. 

The yield on 10-year German bonds edged lower to 2.10%, French bonds inched lower to 2.82%, the UK gilts edged down to 3.74%, and Italian bonds decreased to 3.44%.

The euro edged up to $1.11; the British pound inched higher to $1.32; and the U.S. dollar weakened to 84.46 Swiss cents.

Brent crude decreased $0.22 to $72.52 a barrel, and the Dutch TTF natural gas rose by €0.47 to €34.78 per MWh. 

Europe Stock Movers

Kingfisher plc increased 7.7% to 310.90 pence after the UK-based home improvement retailer raised the lower end of its fiscal 2025 profit estimate. 

Sales in the first half declined 1.8% to £6.7 billion from £6.9 billion, pre-tax income increased 2.3% to £324 million from £317 million, and earnings per share advanced 3.9% to 12.8 pence from 12.4 pence a year ago. 

The company blamed the sales weakness to a decline in sales of large tickets and unusual weather conditions. 

The retailer also lifted its annual profit-before-tax range to between £510 million and £550 million from the previous estimate between £490 million and £550 million. 

Barry Callebaut increased 6.9% to CHF 1,557.0 after Barclays upgraded the stock to "overweight" from "underweight," citing a decline in cocoa prices and the company's focus on improving its operating costs. 

The company has closed underperforming plants in Italy, Malaysia, and Germany and expressed confidence that it is on track to achieve its $250 million cost-cutting target by the end of fiscal year 2027. 

Essentra PLC plunged 18.2% to 136.80 pence after the UK-based manufacturing company lowered its annual outlook in the current fiscal year, citing market challenges. 

The company revised its annual profit estimate to between £40 million and £42 million, citing adverse market conditions and a negative foreign exchange impact of £2 million. 

The company reversed its previous outlook of an improvement in volume in the expectations of a rebound in demand in Europe, including Turkey. 

However, sales have lagged the company's expectations in the second half in the U.S. and APAC region. 

Japan's Nikkei 225 and Topix Plunged Nearly 2% Ahead of Rate Decisions

Benchmark indexes in Tokyo faced selling pressure ahead of the monetary policy decisions by the Bank of Japan on Friday. 

The Nikkei 225 stock average declined as much as 2% and the Topix index fell as much as 1.8%, and losses in tech stocks contributed to the market weakness. 

Investors turned cautious after a three-day holiday and reacted to the weak tech stocks on Wall Street ahead of rate decisions this week by the Federal Reserve Bank, the Bank of England, the Norges Bank, and the Bank of Japan. 

The Bank of Japan is widely anticipated to hold its interest rate range, but investors are looking forward to the central bank's rate outlook and the timing of future rate increases. 

The yield on 10-year Japanese bonds fell to a one-year low of 0.83%, ahead of the central bank's rate decisions. 

The Japanese yen traded at 140.34 against the U.S. dollar in Tokyo as investors turned cautious. 

Investors are also hoping that the Federal Reserve Bank will lower its key lending rates by at least 25 basis points, shrinking the gap with rates in Japan. 

Japan Stock Movers 

The Nikkei 225 stock average decreased 1% to 36,180.30, and the Topix index declined 0.7% to 2,554.52. 

Tech stocks led the losers in Tokyo following sharp losses in overnight trading in New York after investors worried that the Apple iPhone 16 sales may lag expectations. 

Tokyo Electron decreased 5.2% to ¥22,440.0, Advantest dropped 5.6% to ¥6,016.0, and Screen Holdings declined 2.9% to ¥9,577.0. 

Retailers were also among the leading decliners after the yen continued to advance. 

Seven & I Holdings declined 0.4% to ¥2,158.50, Isetan Mitsukoshi dropped 3% to ¥2,196.50, and Fast Retailing added 0.4% to ¥44,070.0. 

Banks accelerated losses for the second session in a row ahead of the Bank of Japan's rate decisions on Friday. 

Mizuho Financial Group declined 2.5% to ¥2,746.50, Sumitomo Mitsui decreased 2.6% to ¥8,750.0, and Mitsubishi UFJ dropped 2.2% to ¥1,419.0. 

Property Stocks Rebound In Hong Kong Ahead of Expected Fed Rate Cut, Midea Group IPO Sizzles On Debut

Stocks in Hong Kong advanced for the fourth day in a row, and property stocks led the gainers. 

The Hang Seng index soared more than 1.5%, and the financial markets in mainland China are set to resume trading on Wednesday after a 4-day weekend. 

Stocks advanced ahead of the possible rate cut by the U.S. Federal Reserve on Wednesday, and investors increased their bets that the central bank is more likely to cut rates by 50 basis points. 

Amid widespread speculation, investors are hoping that the Federal Reserve is expected to signal that the central bank is prepared to lower rates by as much as 100 basis points by the end of 2024. 

Rate cuts in the U.S. also automatically lower interest rates in Hong Kong to maintain the city's currency peg with the U.S. dollar. 

Moreover, the Bank of England is scheduled to hold its rate steady on Thursday, and the Bank of Japan is likely to keep its interest rate range unrevised on Friday. 

Market sentiment in Hong Kong was also boosted by the expectation that the Chinese government will provide additional stimulus following weak economic data over the weekend. 

China Stock Movers 

The Hang Seng index added 1.6% to 17,696.54, and financial markets in mainland China were closed for a holiday. 

Midea Group increased 10% to HK $59.30, and the Foshan-based electric appliance and household consumer electronics maker raised HK $31 billion in an offering last week. 

The company priced its Hong Kong initial public offering at HK $54.80 per share and raised $3.98 billion in the largest offering in three years. 

The company is likely to exercise its option to sell additional shares amid strong interest from international investors and increase its offering size to $4.6 billion. 

The company is the largest maker of white goods, and the appliance maker also owns Germany-based industrial robot company Kuka. 

The company's stock in Hong Kong traded at a 20% discount to its closing price in Shenzhen at ¥63.51.

Tech stocks advanced in Hong Kong trading, tracking gains on Wall Street in overnight trading. 

Alibaba Group gained 1.6% to HK $82.95, Tencent Holdings jumped 0.9% to HK $381.20, and Baidu gained 1% to HK $83.50. 

Henderson Land Development increased 3.2% to HK $24.55, Sun Hung Kai Properties gained 2.2% to HK $80.80, and CK Asset Holdings gained 4.4% to HK $32.30. 

India Movers: Adani Wilmar, Adani Energy, BPCL, Bajaj Housing Finance, Bharat Forge, Reliance Infra, Reliance Power, Strides Pharma

Stocks in Mumbai traded around the flatline, and investors reviewed the impact of the recent decline in crude oil prices on domestic inflationary forces. 

The Sensex index decreased by 0.1% to 82,916.07, and the Nifty index edged down by 0.1% to 25,369.95. 

On the Mumbai stock exchange, 110 stocks traded at their 52-week highs, and 9 stocks traded at their 52-week lows.

Adani Wilmar declined 0.6% to ₹363.30, and Adani Enterprise and Wilmar International plan to sell a 13% stake in the listed joint venture to meet the regulatory requirements. 

After the sale, two companies will lower their combined stake from 88% to 75%, meeting the minimum public holding requirement of 25%. 

Adani Energy Solutions increased 0.4% to ₹983.95, and Kenya Electricity Transmission clarified that the company has still not finalized its deal to build three high-voltage power lines. 

Bjajaj Housing Finance increased 7.7% to ₹177.75, and the company priced its stock at ₹70 per share and sold a total of 92.6 crore shares and raised ₹6,500 crore.

The company provides consumer loans and 82% of its 308,693 active customers have home loans.    

The company's initial public offering was oversubscribed by nearly 64 times. 

Bharat Forge declined 0.8% to ₹1,588.40 and Kalyani Forge added 1.4% to ₹531.90, and family feud between Baba Kalyani and Gaurishankar Kalyani deepened. 

Baba, 75, rejected his 70-year-old brother Gaurishankar's claim of a second will by their mother as "misinformation campaign." 

Strides Pharma declined 2% to ₹1,368.80, and the company received a U.S. Food and Drug Administration's regulatory approval to manufacture generic Fluoxetine tablets. 

Fluoxetine is used to treat depression, panic attacks, and eating disorders. 

Reliance Power gained 2% to ₹31.69, and the company won an order to build a battery storage solution from Solar Energy Corporation of India. 

Reliance Infrastructure soared 6.4% to ₹229.80, and the company's board is scheduled to meet on September 19 to discuss additional fund raising. 

Three years ago, the company raised ₹550 crore through the placement of a preferred stock offering. 

BPCL declined 0.4% to ₹339.30, and the Central Pollution Control Board issued a preliminary warning for the lack of vapor recovery system at the company's 28 storage terminals. 

The regulatory board threatened to fine one crore rupees if the company fails to provide an adequate response by September 19. 

Wall Street Indexes Head Lower Ahead of Rate Decisions This Week

Stocks traded around the flatline in Monday's trading as investors awaited the Fed's rate decisions and economic projections later in the week. 

The S&P 500 index increased 0.2% and the Nasdaq Composite decreased 0.8%, and investors are hoping that the rate-setting committee is ready to start its rate-cut cycle as early as this week. 

The S&P500 index and the Nasdaq Composite staged a sharp rebound last week after falling in the previous two weeks in a row, following two inflation reports that confirmed weakening inflationary forces. 

Investors are on edge, and the recent decline in inflation and comments from Fed Chair Powell and other officials have raised hopes of a rate cut of at least 25 basis points at the end of the policy meeting on Wednesday. 

Last week, investors raised hopes that the Fed may lower the rate by 50 basis points after consumer price inflation dropped to a three-year low and crude oil prices fell to this year's low. 

Moreover, the European Central Bank lowered its three key lending rates by 25 basis points following the easing of inflation below 2%. 

The Federal Reserve Bank is set to announce its rate decisions and economic projections at the end of its 2-day meeting on Wednesday. 

The Bank of England and the Norges Bank are expected to hold their rates steady on Thursday, and the Bank of Japan is likely to hold its rate range unrevised on Friday. 

U.S. Indexes and Treasury Yields

The S&P 500 index decreased 0.1% to 5,619.35, the Nasdaq Composite fell 0.8% to 17,544.28, and the Russell 2000 index rose 0.2% to 2,186.91. 

The yield on 2-year Treasury notes edged lower to 3.58%, 10-year Treasury notes inched down to 3.66%, and 30-year Treasury bonds inched lower to 3.98%.

WTI crude oil increased $1.20 to $69.83 a barrel, and natural gas prices edged up 6 cents to $2.36 a thermal unit.

Gold rose by $4.81 to $2,583.29 an ounce, and silver increased by $0.05 to $30.76.

The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 100.70.

U.S. Stock Movers

Apple declined 3% to $215.79 amid worries that the company's new iPhone 16 may fall short of its sales target amid weak demand in China. 

Oil service and exploration company stocks advanced after the crude oil prices rebounded in Monday's trading for the second consecutive day in a row. 

Exxon Mobil jumped 0.9% to $112.15, Chevron jumped 0.6%, Transocean gained 1.3% to $4.26, and Hess Corp. added 1.2% to $129.08. 

Weak China Data Weigh On European Markets, Italy's Trade Surplus Jumps to 3-Year High 

European markets struggled in Monday's trading, and investors reviewed the latest economic updates in China. 

Market indexes rebounded between 1% and 2% in the previous week, tracking gains on Wall Street amid growing hopes of a 50 basis points rate cut by the Federal Reserve this week. 

Luxury goods and vehicle makers were under pressure after China's key economic data fell short of market expectations. 

China's retail sales and industrial output rose less-than-expected in August, and the jobless rate edged higher. 

Moreover, foreign direct investment plunged 31.5% to $81.8 billion in the first eight months to August. 

Moreover, new home prices across 70 largest cities plunged 5.7%, the fastest pace in nine years, indicating weak consumer demand. 

Closer to home, Italy's trade surplus widened to €6.7 billion in July from €6.1 billion in the period a year ago, the statistical agency, ISTAT, reported Monday. 

Exports rose 6.8% to €57.2 billion, driven by a 21.4% rise in pharmaceutical products, a 15.4% increase in food products and beverages, and a 15.3% rise in chemicals. 

Imports rose 6.3% to €50.4 billion, driven by a decline in apparel imports by 7.2% and natural gas by 6.5%, offsetting the increase in pharmaceuticals by 24.6%, food products and beverages by 16.2%, and chemicals by 15.9%. 

In the week ahead, investors are also awaiting monetary policy decisions from the Bank of England, the U.S. Federal Reserve, the Bank of Japan, and the Norges Bank. 

Europe Indexes and Yields

The DAX index decreased by 0.4% to 18,633.11; the CAC-40 index fell by 0.2% to 7,449.44; and the FTSE 100 index increased by 0.1% to 8,278.44. 

The yield on 10-year German bonds edged higher to 2.14%, French bonds inched lower to 2.83%, the UK gilts edged down to 3.77%, and Italian bonds decreased to 3.49%.

The euro edged up to $1.11; the British pound inched higher to $1.31; and the U.S. dollar weakened to 84.48 Swiss cents.

Brent crude increased $0.92 to $72.53 a barrel, and the Dutch TTF natural gas fell by €1.40 to €34.31 per MWh. 

Europe Stock Movers

Eni SpA increased 0.1% to €14.03 after a report suggested that the Italian oil company is seeking to sell more shares in its renewable energy arm, Plenitude. 

UniCredit SA advanced 0.4% to €37.07, and the Italian lender announced its plans to start repurchasing €1.7 billion of its own stock. 

Ispen SA gained 5.5% to €111.50, and the French drug maker said it has aborted its plans to commercialize its prostate cancer treatment after the late-stage trial failed to meet its main goals. 

Phoenix Group Holdings PLC decreased 3.4% to 557.0 pence after the British insurance company reported strong first-half results and halted its plans to sell its SunLife business. 

IFRS loss in the first half widened to £698 million from £245 million a year ago, reflecting higher global interest rates and adverse equities. 

IFRS adjusted operating profit increased 15% to £360 million from £313 million because of higher income in its pension and savings and retirement solutions divisions. 

In addition, the company's board approved an increase of 2.5% in cash dividends in the first half to 26.55 pence per share. 

Playtech PLC jumped 13.5% to 742.0 pence after the UK-based gambling technology company said its adjusted core profit is likely to be ahead of market expectations. 

Vossloh AG jumped 2.7% to €47.25, and the German rail technology company said it secured a €100 million contract from DB InfraGo AG, a unit of Deutsche Bahn AG. 

Mercedes Benz decreased 0.9% to €56.25, VW fell 1.6% to €90.92, and BMW dropped 0.8% to €72.72. 

Kering SA fell 0.8% to €226.85, LVMH fell 0.03% to €607.90, and Hermes International dropped 0.9% to €1,899.50. 

Rexel SA increased 8.7% to €24.97 after the electrical supplies distributor said it received and rejected an unsolicited acquisition offer from billionaire Brad Jacobs-led QXO. 

China's Faltering Economic Growth Data Highlight Struggling Consumer and Weakening Labor Market 

Stocks in Hong Kong struggled in Monday's trading as investors reviewed the latest flood of economic updates from the mainland. 

The Hang Seng index declined as much as 0.5% in Monday's trading after the key economic data fell short of market expectations, setting off alarms of rapidly faltering economic activities. 

China's retail sales in August rose 2.1%, industrial output advanced at a five-year low annual rate of 4.5%, fixed investment slowed at 3.4%, and foreign direct investment plunged 31.5% to $81.8 billion in the period between January and August, respectively. 

Retail sales slowed from 2.7% in the previous month, and fixed investment in the eight-month period to August slowed to 3.4% from the first seven months in the year, the National Bureau of Statistics reported over the weekend. 

Property investment dropped 10.2% in the eight-month period to August, matching the decline in the seven-month period ending in July. 

Industrial output growth slowed to 4.5% from a 5.1% increase in July, as domestic demand growth continues to wane. 

The urban jobless growth rate edged higher to 5.3% in August from 5.2% in July, but the jobless data are widely suspected to understate by a wide margin the weakness in the labor market. 

China's weak growth data confirmed the uneven economic recovery and the government's flexibility to stimulate the economy because of sky-high debt levels at the federal and local government levels. 

Moreover, new home prices across 70 cities declined 5.7% in August, faster than 5.3% in July, according to the latest data released by the National Bureau of Statistics. 

New home prices fell at the fastest pace since May 2015 as the federal government's piecemeal approach to reviving weak property markets failed. 

Prices in Tier-1 cities, which generally act as a barometer of a nation's health, declined 0.3% from the previous month, reversing a trend of rising prices for years. 

Moreover, prices declined 0.7% in the Tier-2 and Tier-3 cities, amid a lack of demand and a string of failed and unfinished residential investment projects. 

Existing home sales did not fare any better, and prices plunged 0.9% across the top 70 cities, the statistics bureau reported over the weekend.

China's households are increasingly parking their savings in banks amid weak consumer confidence and a rapidly weakening labor market outlook. 

China's retail bank deposits increased by 9.65 trillion yuan in the eight months to August, with 710 billion yuan rising in August alone, the People's Bank of China reported on Friday. 

China Stock Movers 

The Hang Seng index decreased 0.04% to 17,362.17, and financial markets on the mainland were closed for the celebration of the Mid-Autumn festival. 

Residential property developers extended recent losses after the release of new home price data over the weekend. 

China Resources Land decreased 2.7% to HK $19.04, China Vanke decreased 2.5% to HK $3.83, Longfor Group Holdings dropped 2.6% to HK $7.81, but Sun Hung Kai Properties rose 1.1% to HK $78.70. 

Tech stocks lacked direction and headed lower in Monday's trading. 

Alibaba Group fell 1.03% to HK $81.90, Tencent Holdings gained 0.7% to HK $377.60, and Baidu added 0.7% to HK $82.65. 

S&P 500 and Nasdaq Hover Near Flatline, 10-Year Treasury Yield Hold at 15-Month Low

Stocks struggled to advance in Monday's trading as investors awaited the Fed's rate decisions and economic projections later in the week. 

The S&P 500 index increased 0.1% and the Nasdaq Composite decreased 0.4%, and investors are hoping that the rate-setting committee is ready to start its rate-cut cycle.

Investors are on edge, and the recent decline in inflation and comments from Fed Chair Powell and other officials have raised hopes of a rate cut of at least 25 basis points. 

Last week, investors raised hopes that the Fed may lower the rate by 50 basis points after consumer price inflation dropped to a three-year low and crude oil prices fell to this year's low. 

Moreover, the European Central Bank lowered its three key lending rates by 25 basis points following the easing of inflation below 2%. 

The Federal Reserve Bank is set to announce its rate decisions and economic projections at the end of its 2-day meeting on Wednesday. 

The Bank of England and the Norges Bank are expected to hold their rates steady on Thursday, and the Bank of Japan is likely to hold its rate range unrevised on Friday. 

U.S. Indexes and Treasury Yields

The S&P 500 index increased 0.1% to 5,631.52, the Nasdaq Composite fell 0.4% to 17,608.19, and the Russell 2000 index rose 0.3% to 2,188.49. 

The yield on 2-year Treasury notes edged lower to 3.58%, 10-year Treasury notes inched down to 3.66%, and 30-year Treasury bonds inched lower to 3.98%.

WTI crude oil increased $1.90 to $70.54 a barrel, and natural gas prices edged down 4 cents to $2.34 a thermal unit.

Gold rose by $3.11 to $2,581.70 an ounce, and silver increased by $0.09 to $30.86.

The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 100.70.

U.S. Stock Movers

Apple declined 3% to $215.79 amid worries that the company's new iPhone 16 may fall short of its sales target amid weak demand in China. 

Oil service and exploration company stocks advanced after the crude oil prices rebounded in Monday's trading for the second consecutive day in a row. 

Exxon Mobil jumped 0.9% to $112.15, Chevron jumped 0.6%, Transocean gained 1.3% to $4.26, and Hess Corp. added 1.2% to $129.08. 

Europe Movers: Eni, Ispen, Phoenix Group, Playtech, Rexel, UniCredit, Vossloh

European markets struggled to advance as investors anticipated monetary policy decisions from several major central banks this week. 

The DAX index decreased by 0.2% to 18,658.57; the CAC-40 index rose by 0.03% to 7,467.89; and the FTSE 100 index decreased by 0.01% to 8,265.69. 

The yield on 10-year German bonds edged higher to 2.14%, French bonds inched lower to 2.83%, the UK gilts edged down to 3.77%, and Italian bonds decreased to 3.49%.

Eni SpA increased 0.1% to €14.03 after a report suggested that the Italian oil company is seeking to sell more shares in its renewable energy arm, Plenitude. 

UniCredit SA advanced 0.4% to €37.07, and the Italian lender announced its plans to start repurchasing €1.7 billion of its own stock. 

Ispen SA gained 5.5% to €111.50, and the French drug maker said it has aborted its plans to commercialize its prostate cancer treatment after the late-stage trial failed to meet its main goals. 

Phoenix Group Holdings PLC decreased 3.4% to 557.0 pence after the British insurance company reported strong first-half results and halted its plans to sell its SunLife business. 

IFRS loss in the first half widened to £698 million from £245 million a year ago, reflecting higher global interest rates and adverse equities. 

IFRS adjusted operating profit increased 15% to £360 million from £313 million because of higher income in its pension and savings and retirement solutions divisions. 

In addition, the company's board approved an increase of 2.5% in cash dividends in the first half to 26.55 pence per share. 

Playtech PLC jumped 13.5% to 742.0 pence after the UK-based gambling technology company said its adjusted core profit is likely to be ahead of market expectations. 

Vossloh AG jumped 2.7% to €47.25, and the German rail technology company said it secured a €100 million contract from DB InfraGo AG, a unit of Deutsche Bahn AG. 

Luxury goods and vehicle makers declined after China's latest economic data fell short of market expectations. 

Mercedes Benz decreased 0.9% to €56.25, VW fell 1.6% to €90.92, and BMW dropped 0.8% to €72.72. 

Kering SA fell 0.8% to €226.85, LVMH fell 0.03% to €607.90, and Hermes International dropped 0.9% to €1,899.50. 

Rexel SA increased 8.7% to €24.97 after the electrical supplies distributor said it received and rejected an unsolicited acquisition offer from billionaire Brad Jacobs-led QXO. 

Weak China Data Weigh On European Markets, Italy's Trade Surplus Jumps to 3-Year High

European markets struggled in Monday's trading, and investors reviewed the latest economic updates in China. 

Market indexes rebounded between 1% and 2% in the previous week, tracking gains on Wall Street amid growing hopes of a 50 basis points rate cut by the Federal Reserve this week. 

Luxury goods and vehicle makers were under pressure after China's key economic data fell short of market expectations. 

China's retail sales and industrial output rose less-than-expected in August, and the jobless rate edged higher. 

Moreover, foreign direct investment plunged 31.5% to $81.8 billion in the first eight months to August. 

Moreover, new home prices across 70 largest cities plunged 5.7%, the fastest pace in nine years, indicating weak consumer demand. 

Closer to home, Italy's trade surplus widened to €6.7 billion in July from €6.1 billion in the period a year ago, the statistical agency, ISTAT, reported Monday. 

Exports rose 6.8% to €57.2 billion, driven by a 21.4% rise in pharmaceutical products, a 15.4% increase in food products and beverages, and a 15.3% rise in chemicals. 

Imports rose 6.3% to €50.4 billion, driven by a decline in apparel imports by 7.2% and natural gas by 6.5%, offsetting the increase in pharmaceuticals by 24.6%, food products and beverages by 16.2%, and chemicals by 15.9%. 

In the week ahead, investors are also awaiting monetary policy decisions from the Bank of England, the U.S. Federal Reserve, the Bank of Japan, and the Norges Bank. 

Europe Indexes and Yields

The DAX index decreased by 0.2% to 18,658.57; the CAC-40 index rose by 0.03% to 7,467.89; and the FTSE 100 index decreased by 0.01% to 8,265.69. 

The yield on 10-year German bonds edged higher to 2.14%, French bonds inched lower to 2.83%, the UK gilts edged down to 3.77%, and Italian bonds decreased to 3.49%.

The euro edged up to $1.11; the British pound inched higher to $1.31; and the U.S. dollar weakened to 84.48 Swiss cents.

Brent crude increased $0.32 to $71.92 a barrel, and the Dutch TTF natural gas fell by €1.57 to €34.13 per MWh. 

Europe Stock Movers

Eni SpA increased 0.1% to €14.03 after a report suggested that the Italian oil company is seeking to sell more shares in its renewable energy arm, Plenitude. 

UniCredit SA advanced 0.4% to €37.07, and the Italian lender announced its plans to start repurchasing €1.7 billion of its own stock. 

Ispen SA gained 5.5% to €111.50, and the French drug maker said it has aborted its plans to commercialize its prostate cancer treatment after the late-stage trial failed to meet its main goals. 

Phoenix Group Holdings PLC decreased 3.4% to 557.0 pence after the British insurance company reported strong first-half results and halted its plans to sell its SunLife business. 

IFRS loss in the first half widened to £698 million from £245 million a year ago, reflecting higher global interest rates and adverse equities. 

IFRS adjusted operating profit increased 15% to £360 million from £313 million because of higher income in its pension and savings and retirement solutions divisions. 

In addition, the company's board approved an increase of 2.5% in cash dividends in the first half to 26.55 pence per share. 

Playtech PLC jumped 13.5% to 742.0 pence after the UK-based gambling technology company said its adjusted core profit is likely to be ahead of market expectations. 

Vossloh AG jumped 2.7% to €47.25, and the German rail technology company said it secured a €100 million contract from DB InfraGo AG, a unit of Deutsche Bahn AG. 

Mercedes Benz decreased 0.9% to €56.25, VW fell 1.6% to €90.92, and BMW dropped 0.8% to €72.72. 

Kering SA fell 0.8% to €226.85, LVMH fell 0.03% to €607.90, and Hermes International dropped 0.9% to €1,899.50. 

Rexel SA increased 8.7% to €24.97 after the electrical supplies distributor said it received and rejected an unsolicited acquisition offer from billionaire Brad Jacobs-led QXO. 

China's Faltering Economic Growth Data Highlight Struggling Consumer and Weakening Labor Market

Stocks in Hong Kong struggled in Monday's trading as investors reviewed the latest flood of economic updates from the mainland. 

The Hang Seng index declined as much as 0.5% in Monday's trading after the key economic data fell short of market expectations, setting off alarms of rapidly faltering economic activities. 

China's retail sales in August rose 2.1%, industrial output advanced at a five-year low annual rate of 4.5%, fixed investment slowed at 3.4%, and foreign direct investment plunged 31.5% to $81.8 billion in the period between January and August, respectively. 

Retail sales slowed from 2.7% in the previous month, and fixed investment in the eight-month period to August slowed to 3.4% from the first seven months in the year, the National Bureau of Statistics reported over the weekend. 

Property investment dropped 10.2% in the eight-month period to August, matching the decline in the seven-month period ending in July. 

Industrial output growth slowed to 4.5% from a 5.1% increase in July, as domestic demand growth continues to wane. 

The urban jobless growth rate edged higher to 5.3% in August from 5.2% in July, but the jobless data are widely suspected to understate by a wide margin the weakness in the labor market. 

China's weak growth data confirmed the uneven economic recovery and the government's flexibility to stimulate the economy because of sky-high debt levels at the federal and local government levels. 

Moreover, new home prices across 70 cities declined 5.7% in August, faster than 5.3% in July, according to the latest data released by the National Bureau of Statistics. 

New home prices fell at the fastest pace since May 2015 as the federal government's piecemeal approach to reviving weak property markets failed. 

Prices in Tier-1 cities, which generally act as a barometer of a nation's health, declined 0.3% from the previous month, reversing a trend of rising prices for years. 

Moreover, prices declined 0.7% in the Tier-2 and Tier-3 cities, amid a lack of demand and a string of failed and unfinished residential investment projects. 

Existing home sales did not fare any better, and prices plunged 0.9% across the top 70 cities, the statistics bureau reported over the weekend.

China's households are increasingly parking their savings in banks amid weak consumer confidence and a rapidly weakening labor market outlook. 

China's retail bank deposits increased by 9.65 trillion yuan in the eight months to August, with 710 billion yuan rising in August alone, the People's Bank of China reported on Friday. 

China Stock Movers 

The Hang Seng index decreased 0.04% to 17,362.17, and financial markets on the mainland were closed for the celebration of the Mid-Autumn festival. 

Residential property developers extended recent losses after the release of new home price data over the weekend. 

China Resources Land decreased 2.7% to HK $19.04, China Vanke decreased 2.5% to HK $3.83, Longfor Group Holdings dropped 2.6% to HK $7.81, but Sun Hung Kai Properties rose 1.1% to HK $78.70. 

Tech stocks lacked direction and headed lower in Monday's trading. 

Alibaba Group fell 1.03% to HK $81.90, Tencent Holdings gained 0.7% to HK $377.60, and Baidu added 0.7% to HK $82.65.