- Li Chen
- 12 Sep, 2024
- Hong Kong
Hong Kong stocks advanced and Shanghai stocks turned lower amid heightened market volatility in China.
The Hang Seng index jumped 1% on the expectations of a rate cut in Europe later today and in the U.S. next week, but the CSI 300 index struggled amid weak investor sentiment.
The Hang Seng index nearly erased August's 4% advance this month amid worries of an economic slowdown in the U.S.
However, market indexes rebounded in Thursday's trading as investors shifted their focus to monetary policy decisions from the European Central Bank and the U.S. Federal Reserve.
Moreover, crude oil prices hovered around a three-year low of $66 a barrel in New York, amid demand growth worries in China and the U.S.
The accelerated structural shift to renewable energy and faster adoption of electric vehicles in China is likely to curtail future demand for crude oil.
Moreover, China's rapid growth in exports of solar panels, windmills, and electric vehicles to the ASEAN region, Russia, Central Asia, and the rest of the world is also likely to negatively impact global crude oil demand.
Investors remained cautious as the domestic consumer demand remained weak in China amid job market uncertainties and a protracted property market slump.
Moreover, China's leadership has shifted its focus from supporting economic growth to investing in military technologies and modernizing its defense capabilities.
China Stock Movers
The Hang Seng index rebounded 1% to 17,274.72, and the CSI 300 index decreased 0.2% to 3,181.57.
Energy stocks were in focus for the second day in a row after Hurricane Francine made landfall in Louisiana, halting oil refinery operations and crude oil explorations in the Gulf of Mexico.
PetroChina declined 1% to HK $5.55, China Petroleum and Chemical fell 1% to HK $4.24, and CNOOC increased 0.1% to HK $18.0.
In Hong Kong, property developers were in focus ahead of the widely expected rate cut in the U.S. next week.
China Vanke increased 1.3% to HK $3.89, Longfor Holdings Group added 0.6% to HK $7.72, China Overseas Land declined 1.2% to HK $10.96, and Sun Hung Kai advanced 1.4% to HK $77.40.
Following the gains in overnight trading in New York, technology stocks advanced in Hong Kong but struggled in Shanghai and Shenzhen.
Alibaba Group edged up 1.1% to HK $83.50 as mainland investors snapped up HK11.6 billion worth of the company's stock on the first day of trading on the Stock Connect.
Tencent Holdings added 1.2% to HK $374.60, Baidu jumped 2.2% to HK $82.25, and Meituan advanced 4% to HK $124.20.
- Arun Goswami
- 12 Sep, 2024
- Mumbai
Market indexes on Dalal Street edged higher following a slight improvement in global market sentiment.
The Sensex and the Nifty indexes are struggling to advance after a sharp sell-off in the previous week.
The Sensex index increased by 0.5% to 81,930.18, and the Nifty index edged up by 0.6% to 25,069.65.
On the Mumbai stock exchange, 126 stocks traded at their 52-week highs, and 18 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds inched higher to 6.85%, and the Indian rupee weakened to 83.98 against the U.S. dollar.
Tata Steel decreased 0.7% to ₹148.38, and the company secured a £500 million grant from the UK government to install an electric arc furnace and reduce environmental pollution.
Bharat Petroleum Corporation declined 1.5% to ₹340.80, and the company's international subsidiary Urja Bharat won an energy exploration concession covering 6,162 km in Abu Dhabi.
Vehicle makers are in focus in Thursday's trading after the Union Cabinet approved two plans totaling 14,335 crore to boost use of electric vehicles, including ambulances, buses, and trucks.
Vedanta declined 3.2% to ₹426.25, and the iron ore mining company raised $900 million with a coupon rate of 10.875% through a bond offering to repay exiting debt.
Aurionpro Solutions dropped 5% to ₹1,816.05, and the company won a ₹200 contract to implement advanced surveillance technology from the Municipal Corporation of Panvel.
Engineers India Ltd. decreased 2.2% to ₹210.0, and the company said new orders in the first five months to September of the current fiscal year increased 37% from a year ago.
- Alexander Garcia
- 11 Sep, 2024
- Miami
Wall Street indexes lacked direction after the latest update on inflation dampened hopes of an aggressive rate cut next week.
U.S. benchmark indexes slipped as investors reviewed the inflation report and searched for clues about the health of the broader economy.
The S&P 500 index and the Nasdaq Composite traded in a tight range after consumer price inflation matched market expectations, but core inflation failed to improve.
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.
Prices of food and non-food items are still rising in larger nominal amounts, and the service costs are increasing at an elevated pace, stretching household budgets.
Moreover, if the Fed starts the rate cut cycle, as widely anticipated, at the end of the policy meeting next week, this will stoke inflationary pressures again, keeping the central bank away from its elusive but widely advertised goal of lowering inflation to 2%.
In other words, interest rates are still not restrictive, and they have not been despite the Federal Reserve raising rates eleven times over 2022 and 2023.
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 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 deepening poverty.
U.S. Indexes and Treasury Yields
The S&P 500 index decreased 0.1% to 5,496.11, the Nasdaq Composite rose 0.7% to 17,145.16, and the Russell 2000 index fell 0.5% to 2,087.23.
The yield on 2-year Treasury notes edged lower to 3.59%, 10-year Treasury notes inched down to 3.62%, and 30-year Treasury bonds inched lower to 3.93%.
WTI crude oil decreased $1.51 to $67.25 a barrel, and natural gas prices edged up 4 cents to $2.27 a thermal unit.
Gold rose by $3.15 to $2,518.74 an ounce, and silver increased by $0.36 to $28.80.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 101.43.
U.S. Stock Movers
GameStop Corp. dropped 11% to $20.86, and the video game retailer reported sharply lower revenue in its latest quarter.
Revenue in the second quarter dropped more than 20% to $798 million from $1.16 billion; net income was $14.8 million compared to a loss of $2.8 million; and diluted earnings per share were 4 cents compared to a loss of 1 cent.
The company also announced the sale of up to 20 million shares at an "at-the-market" price.
Dave & Buster's jumped 14% to $34.13 after the entertainment company reported better-than-expected quarterly results.
Revenue in the second quarter ending on August 6 gained 2.8% to $557.1 million, net income jumped to $40.3 million from $25.9 million, and diluted earnings advanced to 99 cents from 60 cents a year ago.
Comparable store sales declined 6.3% from the same calendar period in the year earlier.
Petco Health and Wellness jumped 7.2% to $3.20, and the pet food retailer reported revenue meeting investor expectations.
Revenue declined 0.5% to $1.52 billion, net loss expanded 70% to $24.8 from $14.6 billion, and diluted earnings per share rose 66% to 9 cents from 5 cents.
Cautious Optimism Prevailed In European Markets Ahead of ECB Rate Decisions
European markets were mixed ahead of the closely watched monetary policy decision on Thursday.
Benchmark indexes in Paris, London, and Frankfurt edged higher as investors anticipated a rate cut by the European Central Bank tomorrow.
The ECB has been signaling that policymakers are likely to lower rates following the weakening in inflation over the last eighteen months.
Investors are also keenly awaiting the release of economic projections for the rest of the year and next year, amid weak consumer demand and a high cost of living.
On the economic front, the UK's GDP stagnated for the second month in a row in July, after the growth in service output was overshadowed by the weakness in manufacturing and construction.
Production output weakened by 0.8% in July, following a growth of 0.8% in June, and decreased by 0.1% in the three months to July 2024.
Construction output decreased by 0.4% in July, following a growth of 0.5% in June, but expanded by 1.2% in the three months to July, its first positive three-month growth since September 2023.
Over the three months to July, the real economy expanded by 0.5% from the previous three-month period with a strong contribution from service output, the Office for National Statistics reported Wednesday.
GDP growth in the three-month period slowed from a 0.6% increase in the previous period ending in July.
Europe Indexes and Yields
The DAX index increased by 0.3% to 18,330.27; the CAC-40 index fell by 0.2% to 7,396.83; and the FTSE 100 index fell by 0.2% to 8,193.94.
The yield on 10-year German bonds edged lower to 2.13%, French bonds inched lower to 2.83%, the UK gilts edged down to 3.78%, and Italian bonds increased to 3.49%.
The euro edged down to $1.10; the British pound inched higher to $1.30; and the U.S. dollar weakened to 84.62 Swiss cents.
Brent crude increased $1.72 to $70.91 a barrel, and the Dutch TTF natural gas rose by €0.61 to €36.17 per MWh.
Europe Stock Movers
Commerzbank soared 16.8% to €14.73, and the German government agreed to sell its 4.5% stake in the bank to Italian lender UniCredit.
UniCredit said it plans to seek permission to acquire an additional stake in the German bank, according to sources in the German finance ministry.
The Italian lender acquired the entire stake priced at €13.20 per share for €702 million, making UniCredit the largest shareholder in the German bank.
Santander Bank Polska declined 7.9% to 463.0 zloty after parent company Banco Santander sold a 5.2% stake in the Polish bank.
Rightmove Plc increased 0.3% to 673.0 pence after the UK-based property platform rejected an acquisition offer from the Australia-based REA Group.
Ricardo plc declined 1.5% to 508.0 pence despite the renewable energy-focused company announcing improved financial results in fiscal year 2024.
Rentokil Initial plc plunged 18.5% to 385.90 pence after the pest control company issued a profit warning.
Inditex increased 4.4% to €48.30 after the Spanish apparel company reported strong first-half results.
Sales in the first-half increased to 7.2% to €18.1 billion and net income advanced 10.1% to €2.8 billion.
The increase in sales were driven by the success of its Spring/Summer collections.
Total sales, including store sales and online sales, between August 1 and September 8 rose 11% from a year ago, suggesting positive impact on its results in the third quarter.
Japan Averages Drop Neary 2% Following Hawkish Comments from BoJ Official
Stocks in Tokyo extended losses of the previous session after hawkish comments from the Bank of Japan official lifted the yen.
The Nikkei 225 stock average dropped 1.6%, and the broader Topix index fell 1.8%.
The Bank of Japan board member Junko Nakagawa said that the central bank is prepared to lift rates if inflation and economic data meet targets set by the policymakers.
Nakagawa's comments lifted the yen to this year's high of 141.35 against the U.S. dollar.
Manufacturing sentiment in Japan dropped to a seven-month low amid ongoing demand weakness from China.
Reuters Tankan sentiment index for manufacturers in Japan fell to +4 in September from +10 in August, on the worries of demand weakness from China, global electric vehicle demand slowdown, and raw material price inflation.
Investors also reviewed the sharp fall in crude oil prices in international trading amid demand growth outlook in the U.S. and China.
Texas crude oil dropped to a three-year low of $66.85 a barrel, despite the likely supply disruption in the Gulf of Mexico following the expected landfall of Hurricane Francine later today.
Japan Stock Movers
The Nikkei 225 stock average declined 1.6% to 35,585.24, and the Topix index dropped 1.8% to 2,529.33.
Tokyo Gas declined 5.4% to ¥3,346.0, and Osaka Gas fell 4.9% to ¥3,348.0.
Financial stocks were in focus after the yen jumped to this year's high following hawkish comments from the Bank of Japan official.
Sumitomo Mitsui Financial decreased 1.7% to ¥8,880.0, Mitsubishi UFJ Financial dropped 1.3% to ¥1,427.50, and Mizuho Financial fell 2.4% to ¥2,765.50.
Energy explorers and distributors fell following a sharp decline in crude oil prices.
Idemitsu Kosan declined 3.7% to ¥968.0, Cosmo Energy Holdings fell 5.1% to ¥7,150.0, and Eneos Holdings decreased 3.4% to ¥721.20.
Hang Seng Index Dropped to One-Month Low After Crude Oil Prices Signaled Global Weakness
Stocks in Shanghai and Hong Kong dropped following renewed worries about the health of the economy after crude oil prices dropped 4%.
The Hang Seng index dropped 1.4% and the mainland-focused CSI 300 index fell 0.4% as investors struggled to understand the latest decline in oil prices.
Crude oil prices fell below $69 a barrel amid worries of lack of demand growth from the U.S. and China, and the OPEC trimmed its global demand growth outlook for 2024 and 2025.
Crude oil prices are now trading at a three-year low after OPEC lowered its global demand growth estimate for 2024 by 80,000 barrels per day to 2 million bpd.
The lowered demand growth primarily reflected demand weakness in China, as the second-largest economy relied more on renewable energy and electric vehicles.
Market sentiment in Hong Kong and Shanghai was dented after consumer price and producer price inflation data confirmed the ongoing demand weakness.
China Stock Movers
The Hang Seng Index dropped 1.4% to 16,992.42, and the mainland-focused CSI 300 index fell 0.4%.
CNOOC fell 3.6% to HK $18.46, PetroChina decreased 4% to HK $5.46, and China Petroleum and Chemical dropped 4% to HK $4.24.
Wuxi AppTec rose 4.8% to HK $33.75 after the company said it plans to buyback stocks worth one billion yuan.
Wuxi Biologics rose 2% to HK $11.12.
Li Ning Co. Ltd. dropped 6.8% to HK $12.64 after Citigroup lowered its opinion on stock to "neutral" from "buy" and lowered its price target by 27%.
Flaircomm Microelectronics opened more than 60% on its first day of trading to 65.89 yuan in Shenzhen.
Tech stocks were also under pressure and led the declines in Hong Kong.
Alibaba Group declined 0.9% to HK $80.95, Tencent Holdings fell 0.5% to HK $366.60, and Meituan decreased 0.8% to HK $117.90.
- Scott Peters
- 11 Sep, 2024
- New York City
GameStop Corp. dropped 11% to $20.86, and the video game retailer reported sharply lower revenue in its latest quarter.
Revenue in the second quarter dropped more than 20% to $798 million from $1.16 billion; net income was $14.8 million compared to a loss of $2.8 million; and diluted earnings per share were 4 cents compared to a loss of 1 cent.
The company also announced the sale of up to 20 million shares at an "at-the-market" price.
Dave & Buster's jumped 14% to $34.13 after the entertainment company reported better-than-expected quarterly results.
Revenue in the second quarter ending on August 6 gained 2.8% to $557.1 million, net income jumped to $40.3 million from $25.9 million, and diluted earnings advanced to 99 cents from 60 cents a year ago.
Comparable store sales declined 6.3% from the same calendar period in the year earlier.
Petco Health and Wellness jumped 7.2% to $3.20, and the pet food retailer reported revenue meeting investor expectations.
Revenue declined 0.5% to $1.52 billion, net loss expanded 70% to $24.8 from $14.6 billion, and diluted earnings per share rose 66% to 9 cents from 5 cents.
- Barry Adams
- 11 Sep, 2024
- New York City
U.S. benchmark indexes slipped in early trading as investors reviewed the inflation report and searched for clues about the health of the broader economy.
The S&P 500 index decreased 0.1% and the Nasdaq Composite dropped 0.2% after consumer price inflation matched market expectations.
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.
U.S. Indexes and Treasury Yields
The S&P 500 index decreased 0.3% to 5,486.63, the Nasdaq Composite eased 0.4% to 16,960.21, and the Russell 2000 index fell 0.1% to 2,095.90.
The yield on 2-year Treasury notes edged lower to 3.59%, 10-year Treasury notes inched down to 3.62%, and 30-year Treasury bonds inched lower to 3.93%.
WTI crude oil decreased $1.51 to $67.25 a barrel, and natural gas prices edged up 4 cents to $2.27 a thermal unit.
Gold rose by $3.15 to $2,518.74 an ounce, and silver increased by $0.36 to $28.80.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 101.43.
U.S. Stock Movers
GameStop Corp. dropped 11% to $20.86, and the video game retailer reported sharply lower revenue in its latest quarter.
Revenue in the second quarter dropped more than 20% to $798 million from $1.16 billion; net income was $14.8 million compared to a loss of $2.8 million; and diluted earnings per share were 4 cents compared to a loss of 1 cent.
The company also announced the sale of up to 20 million shares at an "at-the-market" price.
Dave & Buster's jumped 14% to $34.13 after the entertainment company reported better-than-expected quarterly results.
Revenue in the second quarter ending on August 6 gained 2.8% to $557.1 million, net income jumped to $40.3 million from $25.9 million, and diluted earnings advanced to 99 cents from 60 cents a year ago.
Comparable store sales declined 6.3% from the same calendar period in the year earlier.
Petco Health and Wellness jumped 7.2% to $3.20, and the pet food retailer reported revenue meeting investor expectations.
Revenue declined 0.5% to $1.52 billion, net loss expanded 70% to $24.8 from $14.6 billion, and diluted earnings per share rose 66% to 9 cents from 5 cents.
- Inga Muller
- 11 Sep, 2024
- Frankfurt
European markets lacked direction ahead of the release of monetary policy decisions and economic projections on Thursday. The UK's GDP stagnated for the second month in a row in July.
The DAX index increased by 0.3% to 18,340.93; the CAC-40 index rose by 0.3% to 7,429.59; and the FTSE 100 index rose by 0.1% to 8,211.59.
The yield on 10-year German bonds edged lower to 2.13%, French bonds inched lower to 2.83%, the UK gilts edged down to 3.78%, and Italian bonds increased to 3.49%.
Commerzbank soared 16.8% to €14.73, and the German government agreed to sell its 4.5% stake in the bank to Italian lender UniCredit.
UniCredit said it plans to seek permission to acquire an additional stake in the German bank, according to sources in the German finance ministry.
The Italian lender acquired the entire stake priced at €13.20 per share for €702 million, making UniCredit the largest shareholder in the German bank.
Santander Bank Polska declined 7.9% to 463.0 zloty after parent company Banco Santander sold a 5.2% stake in the Polish bank.
Rightmove Plc increased 0.3% to 673.0 pence after the UK-based property platform rejected an acquisition offer from the Australia-based REA Group.
Ricardo plc declined 1.5% to 508.0 pence despite the renewable energy-focused company announcing improved financial results in fiscal year 2024.
Rentokil Initial plc plunged 18.5% to 385.90 pence after the pest control company issued a profit warning.
Inditex increased 4.4% to €48.30 after the Spanish apparel company reported strong first-half results.
Sales in the first-half increased 7.2% to €18.1 billion and net income advanced 10.1% to €2.8 billion.
The increase in sales were driven by the success of its Spring/Summer collections.
Total sales, including store sales and online sales, between August 1 and September 8 rose 11% from a year ago, suggesting positive impact on its results in the third quarter.
- Bridgette Randall
- 11 Sep, 2024
- London
European markets were mixed ahead of the closely watched monetary policy decision on Thursday.
Benchmark indexes in Paris, London, and Frankfurt edged higher as investors anticipated a rate cut by the European Central Bank tomorrow.
The ECB has been signaling that policymakers are likely to lower rates following the weakening in inflation over the last eighteen months.
Investors are also keenly awaiting the release of economic projections for the rest of the year and next year, amid weak consumer demand and a high cost of living.
On the economic front, the UK's GDP stagnated for the second month in a row in July, after the growth in service output was overshadowed by the weakness in manufacturing and construction.
Production output weakened by 0.8% in July, following a growth of 0.8% in June, and decreased by 0.1% in the three months to July 2024.
Construction output decreased by 0.4% in July, following a growth of 0.5% in June, but expanded by 1.2% in the three months to July, its first positive three-month growth since September 2023.
Over the three months to July, the real economy expanded by 0.5% from the previous three-month period with a strong contribution from service output, the Office for National Statistics reported Wednesday.
GDP growth in the three-month period slowed from a 0.6% increase in the previous period ending in July.
Europe Indexes and Yields
The DAX index increased by 0.3% to 18,340.93; the CAC-40 index rose by 0.3% to 7,429.59; and the FTSE 100 index rose by 0.1% to 8,211.59.
The yield on 10-year German bonds edged lower to 2.13%, French bonds inched lower to 2.83%, the UK gilts edged down to 3.78%, and Italian bonds increased to 3.49%.
The euro edged down to $1.10; the British pound inched higher to $1.30; and the U.S. dollar weakened to 84.62 Swiss cents.
Brent crude increased $1.44 to $70.62 a barrel, and the Dutch TTF natural gas rose by €0.03 to €35.53 per MWh.
Europe Stock Movers
Commerzbank soared 16.8% to €14.73, and the German government agreed to sell its 4.5% stake in the bank to Italian lender UniCredit.
UniCredit said it plans to seek permission to acquire an additional stake in the German bank, according to sources in the German finance ministry.
The Italian lender acquired the entire stake priced at €13.20 per share for €702 million, making UniCredit the largest shareholder in the German bank.
Santander Bank Polska declined 7.9% to 463.0 zloty after parent company Banco Santander sold a 5.2% stake in the Polish bank.
Rightmove Plc increased 0.3% to 673.0 pence after the UK-based property platform rejected an acquisition offer from the Australia-based REA Group.
Ricardo plc declined 1.5% to 508.0 pence despite the renewable energy-focused company announcing improved financial results in fiscal year 2024.
Rentokil Initial plc plunged 18.5% to 385.90 pence after the pest control company issued a profit warning.
Inditex increased 4.4% to €48.30 after the Spanish apparel company reported strong first-half results.
Sales in the first-half increased to 7.2% to €18.1 billion and net income advanced 10.1% to €2.8 billion.
The increase in sales were driven by the success of its Spring/Summer collections.
Total sales, including store sales and online sales, between August 1 and September 8 rose 11% from a year ago, suggesting positive impact on its results in the third quarter.
- Akira Ito
- 11 Sep, 2024
- Tokyo
Stocks in Tokyo extended losses of the previous session after hawkish comments from the Bank of Japan official lifted the yen.
The Nikkei 225 stock average dropped 1.6%, and the broader Topix index fell 1.8%.
The Bank of Japan board member Junko Nakagawa said that the central bank is prepared to lift rates if inflation and economic data meet targets set by the policymakers.
Nakagawa's comments lifted the yen to this year's high of 141.35 against the U.S. dollar.
Manufacturing sentiment in Japan dropped to a seven-month low amid ongoing demand weakness from China.
Reuters Tankan sentiment index for manufacturers in Japan fell to +4 in September from +10 in August, on the worries of demand weakness from China, global electric vehicle demand slowdown, and raw material price inflation.
Investors also reviewed the sharp fall in crude oil prices in international trading amid demand growth outlook in the U.S. and China.
Texas crude oil dropped to a three-year low of $66.85 a barrel, despite the likely supply disruption in the Gulf of Mexico following the expected landfall of Hurricane Francine later today.
Japan Stock Movers
The Nikkei 225 stock average declined 1.6% to 35,585.24, and the Topix index dropped 1.8% to 2,529.33.
Tokyo Gas declined 5.4% to ¥3,346.0, and Osaka Gas fell 4.9% to ¥3,348.0.
Financial stocks were in focus after the yen jumped to this year's high following hawkish comments from the Bank of Japan official.
Sumitomo Mitsui Financial decreased 1.7% to ¥8,880.0, Mitsubishi UFJ Financial dropped 1.3% to ¥1,427.50, and Mizuho Financial fell 2.4% to ¥2,765.50.
Energy explorers and distributors fell following a sharp decline in crude oil prices.
Idemitsu Kosan declined 3.7% to ¥968.0, Cosmo Energy Holdings fell 5.1% to ¥7,150.0, and Eneos Holdings decreased 3.4% to ¥721.20.
- Li Chen
- 11 Sep, 2024
- Hong Kong
Stocks in Shanghai and Hong Kong dropped following renewed worries about the health of the economy after crude oil prices dropped 4%.
The Hang Seng index dropped 1.4% and the mainland-focused CSI 300 index fell 0.4% as investors struggled to understand the latest decline in oil prices.
Crude oil prices fell below $69 a barrel amid worries of lack of demand growth from the U.S. and China, and the OPEC trimmed its global demand growth outlook for 2024 and 2025.
Crude oil prices are now trading at a three-year low after OPEC lowered its global demand growth estimate for 2024 by 80,000 barrels per day to 2 million bpd.
The lowered demand growth primarily reflected demand weakness in China, as the second-largest economy relied more on renewable energy and electric vehicles.
Market sentiment in Hong Kong and Shanghai was dented after consumer price and producer price inflation data confirmed the ongoing demand weakness.
China Stock Movers
The Hang Seng Index dropped 1.4% to 16,992.42, and the mainland-focused CSI 300 index fell 0.4%.
CNOOC fell 3.6% to HK $18.46, PetroChina decreased 4% to HK $5.46, and China Petroleum and Chemical dropped 4% to HK $4.24.
Wuxi AppTec rose 4.8% to HK $33.75 after the company said it plans to buyback stocks worth one billion yuan.
Wuxi Biologics rose 2% to HK $11.12.
Li Ning Co. Ltd. dropped 6.8% to HK $12.64 after Citigroup lowered its opinion on stock to "neutral" from "buy" and lowered its price target by 27%.
Flaircomm Microelectronics opened more than 60% on its first day of trading to 65.89 yuan in Shenzhen.
Tech stocks were also under pressure and led the declines in Hong Kong.
Alibaba Group declined 0.9% to HK $80.95, Tencent Holdings fell 0.5% to HK $366.60, and Meituan decreased 0.8% to HK $117.90.
- Arun Goswami
- 11 Sep, 2024
- Mumbai
Stocks in Mumbai headed lower, and the rupee hovered near its record low. Crude oil prices fell to a three-year low amid global demand growth worries in the U.S. and China.
The Sensex index decreased by 0.2% to 81,751.50, and the Nifty index fell by 0.2% to 24,991.75.
On the Mumbai stock exchange, 126 stocks traded at their 52-week highs, and 18 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds inched higher to 6.85%, and the Indian rupee weakened to 83.96 against the U.S. dollar.
Coal India increased 1.4% to ₹491.50, and the coal mining company plans to invest ₹67,000 crore and build power plants near its mining operations.
The company plans to generate 4.7 gigawatts of power over the next six to seven years.
Axis Bank decreased 1.3% to ₹1,186.55, and the financial service company was fined by ₹1.91 crore by the Reserve Bank of India for the lack of compliance.
Axis Bank has struggled over the last few years with its compliance practices, poor customer service, and outdated information system.
The Reserve Bank of India also fined HDFC Bank ₹1 crore for non-compliance.
Century Textiles and Industries jumped 5.6% to ₹2,487.0, and the company agreed to acquire a 10-acre plot of land in Mumbai from Wadia Group.
Vodafone Idea Group jumped 1.5% to ₹13.58, and the company struggled to convince its bankers for an additional loan of ₹35,000 crore.
Spicejet added 0.6% to ₹65.94, and the company agreed to a refinancing deal with its aircraft lessor that could strengthen its financial stability.
The commercial aviation unit of the U.S.-based private equity group, Carlyle, agreed to write off $40.2 million and convert the additional $30 million outstanding payment to equity.
- Alexander Garcia
- 10 Sep, 2024
- Miami
Stocks struggled to rise for the second day in a row after Wall Street indexes rebounded on Monday from their worst week this year.
The S&P 500 index and the Nasdaq Composite lacked direction in sluggish trading as investors awaited key inflation data later in the week.
Both indexes gained more than 1% in Monday's trading as investors searched for bargains in beaten-down tech and semiconductor stocks.
Oracle surged as much as 6% after the database company reported better-than-expected fiscal first-quarter results.
Investors are on edge after Friday's payroll report showed that the U.S. economy added less-than-expected 142,000 jobs in August.
The smaller increase in the payroll additions drove market indexes sharply lower in Friday's trading and extended weekly losses to between 4% and 6% amid worries of an economic slowdown.
Moreover, investors are hoping that the Federal Reserve will provide an additional boost to the economy and lower its key lending rates by at least 25 basis points at the end of its two-day meeting on September 18.
Despite the recent cooling of inflation, consumer prices are still rising faster than the Fed's target rate of 2%, and the recent decline in inflation is entirely driven by the weakness in energy and gasoline prices.
The Federal Reserve is in a difficult spot; if rates are lowered too soon, that could stoke inflationary pressures in the months ahead, and if policymakers wait too long, then the economy may dip into a recession.
Crude Oil Prices Drop to 2021-Lows
Oil exploration stocks were in focus as Tropical Storm Francine is expected to strengthen into a hurricane in the western Gulf of Mexico later today.
Hurricane Francine is expected to make landfall in Louisiana on Wednesday, and sustained maximum wind with more than 70 mph speed packed with rain is expected to disrupt life and energy production activities in the larger area of the Gulf Coast.
Despite the worries of potential supply disruption, crude oil prices plunged 3% to below $66 a barrel, a low not seen since November 2021, after OPEC cut its demand forecast for the second time in two months.
The cartel lowered its 2024 global oil demand growth estimate by 80,000 barrels per day to 2 million barrels per day.
The organization also trimmed its 2025 demand growth estimate by 40,000 barrels per day to 1.7 million bpd.
The latest revision is largely driven by the lower demand in China as the country shifts to renewable energy, and electric vehicle sales continue to grow in the second-largest economy in the world.
U.S. Indexes and Treasury Yields
The S&P 500 index decreased 0.01% to 5,470.83, the Nasdaq Composite rose 0.2% to 16,910.03, and the Russell 2000 index fell 0.4% to 2,089.16.
The yield on 2-year Treasury notes edged lower to 3.66%, 10-year Treasury notes inched down to 3.71%, and 30-year Treasury bonds inched lower to 4.01%.
WTI crude oil decreased $3.22 to $65.50 a barrel, and natural gas prices edged up 3 cents to $2.20 a thermal unit.
Gold rose by $10.16 to $2,516.71 an ounce, and silver increased by $0.06 to $28.33.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 101.64.
U.S. Stock Movers
Oracle Corp. jumped 10.4% to $154.90, and database developer and cloud infrastructure company reported better than expected quarter results.
Revenue in the quarter ending in August increased 7% to $13.3 billion, net income rose to $2.9 billion from $2.4 billion, and diluted earnings per share advanced to $1.03 from 86 cents a year ago.
Cloud services revenues were up 21% from a year ago to and up 22% in constant currency to $5.6 billion.
Cloud license and on-premise license revenues were up 7% and up 8% in constant currency to $870 million.
“As Cloud Services became Oracle’s largest business, both our operating income and earnings per share growth accelerated,” said Oracle CEO, Safra Catz.
Hewlett-Packard Enterprise fell 7.7% to $16.22, and the company plans to sell $1.35 billion of Series C mandatory convertible preferred stock.
Apple declined 1.6% to $216.89, and investors reviewed the latest new products released by the mobile computing device maker.
On Monday, Apple released the iPhone 16 and iPhone 16 Plus, and both devices are packed with artificial intelligence features, a larger screen, and enhanced battery life.
The latest iPhone models are priced between $800 and $1,200.
Separately, the European Court of Justice ruled that Apple owes Є13 billion in back taxes, in a dispute that has been running since at least 2007.
The latest court ruling forces the company to pay for taxes on profits generated from the licensing or sale of intellectual properties.
German Inflation Softened In August, UK Jobless Rate Eased to 4.1%
European markets lacked direction and attempted to rebound for the second session in a row after falling in the previous five sessions.
Benchmark indexes in Paris, London, and Frankfurt traded in a tight range around the flatline as investors reviewed the latest update on inflation in Germany and the labor market in the U.K.
German inflation softened to 1.9% in August from 2.3% in July, according to final data released by the Federal Statistical Office, or Destatis, on Tuesday.
The final estimate matched the preliminary estimate released by the statistical agency, confirming the weakening price trend largely driven by falling energy prices.
The British pound strengthened against the U.S. dollar and the euro after wage growth and jobless rate updates matched market expectations.
The unemployment rate dropped to 4.1% in the three-month period to July from 4.2% in the previous three-month period ending in June, the Office for National Statistics reported Tuesday.
In addition, regular pay, which excludes bonuses, increased at a slower pace of 5.1% from 5.4% in the previous three-month period ending in June.
Spain's industrial output fell by 0.4% from a year ago in July following a downwardly revised 0.2% increase in the previous month, the National Statistics Institute reported Tuesday.
A decline in capital goods overshadowed the increase in intermediate goods, energy, and consumer goods.
Industrial output fell for the first time after inching slightly higher in the previous two consecutive months and struggling since August 2023.
Europe Indexes and Yields
The DAX index decreased by 0.9% to 18,280.83; the CAC-40 index fell by 0.2% to 7,408.95; and the FTSE 100 index declined by 0.8% to 8,205.98.
The yield on 10-year German bonds edged lower to 2.17%, French bonds inched lower to 2.89%, the UK gilts edged down to 3.87%, and Italian bonds increased to 3.54%.
The euro edged down to $1.10; the British pound inched higher to $1.30; and the U.S. dollar weakened to 84.76 Swiss cents.
Brent crude decreased $3.09 to $68.82 a barrel, and the Dutch TTF natural gas rose by €1.97 to €35.27 per MWh.
Europe Stock Movers
Centamin PLC soared 23.9% to 148.10 pence after AngloAshanti offered to acquire the gold miner for $2.5 billion, or 44.6 billion rands.
AstraZeneca declined 3.9% to 12,214.0 pence after its lung cancer showed mixed results in a late-stage trial.
Gamma Communications PLC increased 9.5% to 1,644.52 pence after communication company reported acquisitions supported the increase in revenue and earnings in the first half.
Capgemini SE advanced 6.5% to €192.25 after Oracle reported better-than-expected revenue and earnings in its latest quarter.
Amplifon dropped 4.8% to €26.64 after Apple announced its latest AirPods will have integrated hearing aids.
Muted Gains In Tokyo Stocks Ahead of Interim Dividends Payments
Stocks in Tokyo advanced and recouped some of the losses in the previous session, and investors kept a close eye on the currency movement.
Investors seeking interim dividend payments added exposure to companies announcing dividends, but overall market sentiment remained cautious.
The Nikkei 225 stock average and the Topix index advanced 0.4%, and the yen edged slightly lower to 143.51 against the U.S. dollar.
The Nikkei 225 plunged more than 6% in the previous week, tracking losses on Wall Street following the growing worries of an U.S. economic slowdown.
However, market indexes rebounded this week after investors searched for bargains amid beaten-down tech and semiconductor stocks.
Investors also reviewed the latest update on China's international trade data for August, and exports rose more-than-expected to 8.7% to $308.7 billion and imports rose 0.5% to $217.6 billion.
China's rising exports to the U.S., European Union, and ASEAN region are putting additional pressure on Japan's export competitiveness.
Market sentiment has been cautious in Tokyo as the latest household spending, retail sales, and inflation data supported the case for the Bank of Japan to hike interest rates.
Japan Stock Movers
The Nikkei 225 stock average increased 0.4% to 36,347.80, and the Topix index gained 0.4% to 2,589.94.
Tokyo Electron jumped 3.9% to ¥22,340.0, Advantest Corp. gained 1.9% to ¥5,924.0, and Screen Holdings added 3.7% to ¥9,920.0.
Sumitomo Mitsui Financial Group added 1% to ¥9,069.0, Mitsubishi UFJ Financial Group advanced 0.5% to ¥1,450.0, and Mizuho Financial Group increased 0.04% to ¥2,839.50.
Seven & I Holdings declined 0.1% to ¥2,183.50, Isetan Mitsukoshi gained 0.3% to ¥2,176.0, Aeon Co Ltd. added 1.5% to ¥3,917.0, and Fast Retailing fell 0.7% to ¥43,610.0.
Toyota Motor added 0.1% to ¥2,503.0, Honda Motor inched lower 1.4% to ¥1,488.0, and Nissan Motor fell 1.2% to ¥403.30.
Daiichi Sankyo Co. Ltd. plunged 8.5% to ¥5,275.0, and the company's lung cancer drug candidate failed to show significant improvement in some disease conditions.
China Exports Growth Failed to Lift Shanghai Indexes, Hong Kong Stocks Advanced
Market indexes in Shanghai and Hong Kong diverged as investors reacted to the latest update on international traded data.
The Hang Seng index gained 0.3%, but the mainland-focused CSI 300 index declined 0.5%, and domestic economic worries overshadowed strong export performance.
China's exports in August jumped 8.7% to $308.7 billion; imports advanced 0.5% to $217.6 billion, resulting in a trade surplus of $91.0 billion, an increase from $84.6 billion in July.
China's exports to the U.S., European Union, and Association of Southeast Nations continued to advance, reflecting its strong competitiveness and lack of alternatives.
Exports to the EU rose 13%, to the ASEAN region advanced 7.8%, and to the U.S. gained by 4.9%.
Exports to the U.S. advanced for the third month in a row, amid rising demand for electronics, industrial intermediary products, and higher prices driven by inflation.
Despite rising geopolitical tensions, China's exports have continued to advance in nine of the last ten months, driven in part by a surge in exports of automobiles, consumer electronics, and ship vessels.
Passenger vehicle exports soared 40% to 610,000, smart phone exports advanced 6.7%, and ship vessel shipments jumped 40% from a year ago.
The increase in passenger vehicle exports was driven in large part by the surge in exports to Russia and increased shipments of electric vehicles to the ASEAN region.
In the year to August, China's exports rose 4.6% to $2.31 trillion, imports increased by 2.5% to $1.71 trillion, and trade surplus jumped 11.2% to $608.5 billion.
Crude oil volume fell 7% in August, highlighting weak domestic demand and partly reflecting China's shift to renewable energy sources.
China Stock Movers
The Hang Seng index increased 0.3% to 17,244.67 and the CSI 300 index fell 0.5% to 3,176.33.
Alibaba Group jumped 4.6% to $81.90 after the company's stock was available for trading by mainland investors on the Stock Connect platform.
Meanwhile, other leading tech stocks lacked direction amid weak demand from investors.
Tencent Holdings edged down 0.7% to HK $368.60, JD.com added 1.1% to HK $102.40, Meituan increased 0.6% to HK $119.40, and Baidu advanced 1.8% to HK $80.50.
Wuxi Biologics declined 3.2% to HK $10.98 and Wuxi Apptech fell 7.8% to HK $33.15 after the U.S. House of Representatives placed additional restrictions on the companies citing national security concerns.
- Scott Peters
- 10 Sep, 2024
- New York City
Oracle Corp. jumped 10.4% to $154.90, and database developer and cloud infrastructure company reported better than expected quarterly results.
Revenue in the quarter ending in August increased 7% to $13.3 billion, net income rose to $2.9 billion from $2.4 billion, and diluted earnings per share advanced to $1.03 from 86 cents a year ago.
Cloud services revenues were up 21% from a year ago to and up 22% in constant currency to $5.6 billion.
Cloud license and on-premise license revenues were up 7% and up 8% in constant currency to $870 million.
“As Cloud Services became Oracle’s largest business, both our operating income and earnings per share growth accelerated,” said Oracle CEO, Safra Catz.
Hewlett-Packard Enterprise fell 7.7% to $16.22, and the company plans to sell $1.35 billion of Series C mandatory convertible preferred stock.
Apple declined 1.6% to $216.89, and investors reviewed the latest new products released by the mobile computing device maker.
On Monday, Apple released the iPhone 16 and iPhone 16 Plus, and both devices are packed with artificial intelligence features, a larger screen, and enhanced battery life.
The latest iPhone models are priced between $800 and $1,200.
Separately, the European Court of Justice ruled that Apple owes Є13 billion in back taxes, in a dispute that has been running since at least 2007.
The latest court ruling forces the company to pay for taxes on profits generated from the licensing or sale of intellectual properties.
Southwest Airlines dropped 3.4% to $28.71, and the regional airline's chairman, Gary Kelly, plans to retire next year after activist investor Elliott Investment pushed for a leadership change.
- Barry Adams
- 10 Sep, 2024
- New York City
Stocks attempted to rise for the second day in a row after Wall Street indexes rebounded from their worst week this year.
The S&P 500 index and the Nasdaq Composite advanced as investors awaited key inflation data later in the week.
Both indexes gained more than 1% in Monday's trading as investors searched for bargains in beaten-down tech and semiconductor stocks.
Oracle surged as much as 6% after the database company reported better-than-expected fiscal first-quarter results.
Investors are on edge after Friday's payroll report showed that the U.S. economy added less-than-expected 142,000 jobs in August.
The smaller increase in the payroll additions drove market indexes sharply lower in Friday's trading and extended weekly losses to between 4% and 6% amid worries of an economic slowdown.
Moreover, investors are hoping that the Federal Reserve will provide an additional boost to the economy and lower its key lending rates by at least 25 basis points at the end of its two-day meeting on September 18.
Despite the recent cooling of inflation, consumer prices are still rising faster than the Fed's target rate of 2%, and the recent decline in inflation is entirely driven by the weakness in energy and gasoline prices.
The Federal Reserve is in a difficult spot; if rates are lowered too soon, that could stoke inflationary pressures in the months ahead, and if policymakers wait too long, then the economy may dip into a recession.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.3% to 5,486.63, the Nasdaq Composite rose 0.4% to 16,960.21, and the Russell 2000 index fell 0.1% to 2,095.90.
The yield on 2-year Treasury notes edged lower to 3.66%, 10-year Treasury notes inched down to 3.71%, and 30-year Treasury bonds inched lower to 4.01%.
WTI crude oil decreased $0.57 to $68.13 a barrel, and natural gas prices edged up 6 cents to $2.23 a thermal unit.
Gold rose by $3.15 to $2,509.71 an ounce, and silver increased by $0.16 to $28.49.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 101.64.
U.S. Stock Movers
Oracle Corp. jumped 10.4% to $154.90, and database developer and cloud infrastructure company reported better than expected quarter results.
Revenue in the quarter ending in August increased 7% to $13.3 billion, net income rose to $2.9 billion from $2.4 billion, and diluted earnings per share advanced to $1.03 from 86 cents a year ago.
Cloud services revenues were up 21% from a year ago to and up 22% in constant currency to $5.6 billion.
Cloud license and on-premise license revenues were up 7% and up 8% in constant currency to $870 million.
“As Cloud Services became Oracle’s largest business, both our operating income and earnings per share growth accelerated,” said Oracle CEO, Safra Catz.
Hewlett-Packard Enterprise fell 7.7% to $16.22, and the company plans to sell $1.35 billion of Series C mandatory convertible preferred stock.
Apple declined 1.6% to $216.89, and investors reviewed the latest new products released by the mobile computing device maker.
On Monday, Apple released the iPhone 16 and iPhone 16 Plus, and both devices are packed with artificial intelligence features, a larger screen, and enhanced battery life.
The latest iPhone models are priced between $800 and $1,200.
Separately, the European Court of Justice ruled that Apple owes Є13 billion in back taxes, in a dispute that has been running since at least 2007.
The latest court ruling forces the company to pay for taxes on profits generated from the licensing or sale of intellectual properties.
- Inga Muller
- 10 Sep, 2024
- Frankfurt
European markets lacked direction and attempted to rebound for the second session in a row after falling in the previous five sessions.
Germany's inflation in August was confirmed at 1.9%, and the U.K.'s wage growth and jobless rate matched market expectations.
The DAX index decreased by 0.3% to 18,397.50; the CAC-40 index rose by 0.3% to 7,446.79; and the FTSE 100 index fell by 0.5% to 8,226.27.
The yield on 10-year German bonds edged lower to 2.17%, French bonds inched lower to 2.89%, the UK gilts edged down to 3.87%, and Italian bonds increased to 3.54%.
Centamin PLC soared 23.9% to 148.10 pence after AngloAshanti offered to acquire the gold miner for $2.5 billion, or 44.6 billion rands.
AstraZeneca declined 3.9% to 12,214.0 pence after its lung cancer showed mixed results in a late-stage trial.
Gamma Communications PLC increased 9.5% to 1,644.52 pence after communication company reported acquisitions supported the increase in revenue and earnings in the first half.
Capgemini SE advanced 6.5% to €192.25 after Oracle reported better-than-expected revenue and earnings in its latest quarter.
Amplifon dropped 4.8% to €26.64 after Apple announced its latest AirPods will have integrated hearing aids.
- Bridgette Randall
- 10 Sep, 2024
- Mexico City
European markets lacked direction and attempted to rebound for the second session in a row after falling in the previous five sessions.
Benchmark indexes in Paris, London, and Frankfurt traded in a tight range around the flatline as investors reviewed the latest update on inflation in Germany and the labor market in the U.K.
German inflation softened to 1.9% in August from 2.3% in July, according to final data released by the Federal Statistical Office, or Destatis, on Tuesday.
The final estimate matched the preliminary estimate released by the statistical agency, confirming the weakening price trend largely driven by falling energy prices.
The British pound strengthened against the U.S. dollar and the euro after wage growth and jobless rate updates matched market expectations.
The unemployment rate dropped to 4.1% in the three-month period to July from 4.2% in the previous three-month period ending in June, the Office for National Statistics reported Tuesday.
In addition, regular pay, which excludes bonuses, increased at a slower pace of 5.1% from 5.4% in the previous three-month period ending in June.
Spain's industrial output fell by 0.4% from a year ago in July following a downwardly revised 0.2% increase in the previous month, the National Statistics Institute reported Tuesday.
A decline in capital goods overshadowed the increase in intermediate goods, energy, and consumer goods.
Industrial output fell for the first time after inching slightly higher in the previous two consecutive months and struggling since August 2023.
Europe Indexes and Yields
The DAX index decreased by 0.3% to 18,397.50; the CAC-40 index rose by 0.3% to 7,446.79; and the FTSE 100 index fell by 0.5% to 8,226.27.
The yield on 10-year German bonds edged lower to 2.17%, French bonds inched lower to 2.89%, the UK gilts edged down to 3.87%, and Italian bonds increased to 3.54%.
The euro edged down to $1.10; the British pound inched higher to $1.30; and the U.S. dollar weakened to 84.76 Swiss cents.
Brent crude decreased $0.69 to $71.47 a barrel, and the Dutch TTF natural gas rose by €0.63 to €36.57 per MWh.
Europe Stock Movers
Centamin PLC soared 23.9% to 148.10 pence after AngloAshanti offered to acquire the gold miner for $2.5 billion, or 44.6 billion rands.
AstraZeneca declined 3.9% to 12,214.0 pence after its lung cancer showed mixed results in a late-stage trial.
Gamma Communications PLC increased 9.5% to 1,644.52 pence after communication company reported acquisitions supported the increase in revenue and earnings in the first half.
Capgemini SE advanced 6.5% to €192.25 after Oracle reported better-than-expected revenue and earnings in its latest quarter.
Amplifon dropped 4.8% to €26.64 after Apple announced its latest AirPods will have integrated hearing aids.