Stocks Traded Down in Mainland China, Hong Kong Prepares for the Arrival of Typhoon Yagi

Stocks in Shanghai and Shenzhen struggled to hold early morning gains, and investors turned cautious on the final trading day of the first week in September. 

Financial markets are closed in Hong Kong after the weather service issued its first severe storm alert of the year as Typhoon Yagi barreled towards Southern China with a maximum speed of 210 kilometers per hour. 

Hong Kong airport was closed and suspended its flight services, and commuter rail services were limited as the authorities prepared for severe weather on Friday. 

For the week, the Hang Seng index declined 3% and nearly wiped out the gains of August, following weak economic data and underwhelming corporate earnings results. 

On mainland China, stocks felt selling pressure as investors stayed on the sidelines ahead of the release of second quarter GDP data in Europe and nonfarm payroll data in the U.S. 

Global investors are on edge after U.S. manufacturing activities contracted for the fifth month in a row in August, and private sector payroll expanded at the slowest pace since January 2021. 

The yuan traded at 7.08 against the U.S. dollar and hovered at a one-year low amid persistent capital outflow and a lack of interest from foreign investors. 

A central bank official signaled that monetary policy easing is likely in the coming months to support economic growth in the second half of 2024. 

A cut in the bank's reserve ratio from the current 7% could increase liquidity and provide more funds for the economy, Zou Lan, the head of the monetary policy department at the People's Bank of China, commented at a press conference in Beijing on Thursday. 

Lan also said there are constraints in lowering deposit and lending rates because lower rates generally drive bank deposits away to asset management products and narrow bank interest rate margins. 

China Stock Movers 

The mainland China-focused CSI 300 index declined 0.3% to 3,249.04, and financial markets in Hong Kong were closed because of a typhoon. 

Stock brokerage firms were in focus after China said it plans to merge Guotai Junan with Haitong Securities to create a larger company that can compete with its overseas rivals. 

Beijing plans to create 10 large securities brokerage firms over the next ten years that are capable of competing with the leaders of Wall Street, according to a plan laid out by Wu Quing, the incoming chairman of the China Securities Regulatory Commission. 

The merger plan announcement lifted other leading brokerages higher in Shanghai trading. 

Sealand Securities soared daily limit of 10% to ¥3.19, and China Galaxy Securities jumped 6.6% to ¥11.70. 

India Movers: Adani Green Energy, Brigade Enterprises, Glenmark Pharma, Godfrey Philips, Max Financial, Mrs Bectors Food, Reliance Industries

The Nifty and Sensex indexes extended weekly losses after a tumultuous week of trading in global markets. 

The worries of the U.S. economic slowdown dragged down global market indexes for the second time in as many months. 

The Sensex index decreased by 0.2% to 82,201.16, and the Nifty index fell by 0.2% to 25,093.70. 

For the week, the Sensex declined 0.2% and the Nifty fell 0.6%. 

On the Mumbai stock exchange, 191 stocks traded at their 52-week highs, and 20 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.

Reliance Industries declined 0.3% to ₹2,991.0, and the company's board approved the 1-for-1 stock split during the annual general meeting held on Thursday. 

Adani Green Energy decreased 1.8% to ₹1,896.0, and the company is in discussion with international bankers to sell bonds worth $1.5 billion. 

Glenmark Pharmaceuticals gained 1% to ₹1,703.70, and the company's U.S. subsidiary settled for a $25 fine with the U.S. Department of Justice related to the generic drug pricing. 

The company agreed to pay the fine in six installments over five years. 

Godfrey Philips India advanced 0.3% to ₹6,385.0, and the Delhi High Court favored Bina Modi, which will facilitate her reappointment as managing director of the cigarette maker. 

Max Financial Services decreased 1.4% to ₹1,117.25, and the promoter entity Max Ventures Investment Holdings lowered its stake to 3.34% from 6.52%. 

The promoter group's company sold 1.1 crore shares at an average price of ₹1,107.37 crore per share. 

Mrs. Bectors Food Specialties gained 1% to ₹1,609.0, and the food product maker plans to raise 400 crore in a secondary offering to institutions. 

The company priced the offering at a 3.9% discount to ₹1,550 per share, and proceeds will be used to repay debt and production expansion. 

Sundaram Clayton rose 2.6% to ₹1,790.0, and the company has started commercial production of aluminum die castings at a new capacity in Tamil Nadu with an annual capacity of 7,750 tons. 

Brigade Enterprises gained 2.8% to ₹1,303.30, and the real estate development company completed its institutional offering priced at ₹1,150 per share and raised ₹1,500 crore. 

Growth Weary Investors Pin Hopes On Friday's Nonfarm Payroll Report

Another month, and another scare of economic slowdown. 

Wall Street stocks declined for the third day in a row after growth worries resurfaced after a weak manufacturing report on Tuesday, followed by a weak private sector payroll growth update today. 

Investors are sensitive to growth slowdowns, but the labor market and the economy have been humming at above-average rates for more than three years, and at some point growth is going to slowdown. 

Global financial markets have been in a holding pattern since Wednesday, awaiting the nonfarm payroll data, and any slowdown in hiring is likely to further exacerbate market volatility. 

Stocks on Wall Street plunged on August 5th after the release of July nonfarm payroll showed a sharp deceleration to 114,000 from 179,000 in June. 

Investors are estimating that August nonfarm payroll growth will at least exceed the previous month additions. 

Tech stocks continued to decline for the third day in a row as investors worried about the economic slowdown amid mixed signals. 

The S&P 500 index and the Nasdaq Composite declined in early trading as investors sold high-flying tech and chip stocks amid growing worries of an economic slowdown and weakening labor market. 

Private sector employment expanded below market estimates, according to the latest data released by ADP. 

Private corporations added 99,000 new jobs in August, lower than 111,000 in the previous month, following two years of above-normal growth. 

"Moreover, job gains were flat at 4.8% for existing employees and increased to 7.3% for those who switched jobs, the data showed. 

"The job market's downward drift brought us to slower-than-normal hiring after two years of outsized growth.," ADP chief economist Nela Richardson said in a statement. 

Initial weekly jobless claims declined last week, the Labor Department reported Thursday. 

Weekly jobless claims dropped by 5,000 from the previous week to 227,000 in the week ending on August 31. 

The initial claims fell to a new 7-week low, easing fears of a potential increase in jobless claims amid moderating labor market conditions. 

Continuing claims, which lag by one week, dropped by 22,000 to 1.838 million in the previous week. 

U.S. Indexes and Treasury Yields

The S&P 500 index decreased 0.6% to 5,485.54, the Nasdaq Composite fell 0.1% to 17,066.51, and the Russell 2000 index fell 0.9% to 2,126.40. 

The yield on 2-year Treasury notes edged lower to 3.73%, 10-year Treasury notes decreased to 3.74%, and 30-year Treasury bonds inched lower to 4.04%.

WTI crude oil increased $0.15 to $69.05 a barrel, and natural gas prices edged up 12 cents to $2.27 a thermal unit.

Gold rose by $11.15 to $2,507.03 an ounce, and silver increased by $0.42 to $28.68.

The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 101.15.

U.S. Stock Movers

Topgolf Callaway Brands increased 1.1% to $10.90 after the company said it plans to separate into two companies. The company will separate its golf equipment and lifestyle business from its entertainment business. 

C3.ai declined 11.5% to $20.42, and the company reported sharply lower-than-expected subscription revenue in its latest quarter. 

Total revenue in the fiscal first quarter increased 21% to $87.2 million from $72.4 million, and subscription revenue advanced 20% to $73.5 million from $61.4 million a year ago. 

The weaker-than-expected growth in its subscription revenue negatively impacted the stock. 

Net loss in the quarter shrank to $62.8 million from $64.3 million, and diluted loss per share fell to 50 cents from 56 cents a year earlier. 

AeroVironment declined by 3.5% to $186.60 despite the defense contractor reporting better-than-expected revenue and earnings in the fiscal first quarter. 

Revenue in the first quarter ending in July increased by 24% to $189.5 million from $152.3 million, net income edged slightly lower to $21.2 million from $21.8 million, and diluted earnings per share fell to 75 cents from 84 cents a year ago. 

European Markets On Hold Amid Global Rate Path and Economic Growth Uncertainties 

European markets lacked direction, and investors debated economic growth outlook and future interest rate path. 

Benchmark indexes in Paris, London, and Frankfurt traded sideways, and investors reviewed the latest updates on German factory orders and retail sales in the Euro Area.

Jittery investors have been selling stocks amid growing anxieties about the economic growth outlook in the U.S., China, and the Euro Area. 

Investors are on edge after a private manufacturing survey showed weakening activities for the fifth month in a row, and job openings also dropped to the level last seen in 2021. 

In the eurozone, consumer price inflation fell closer to the 2% target level set by the central bank largely because of the decline in energy prices, and consumer spending remains depressed amid high cost of living and weak wage growth. 

Moreover, consumer demand remains weak in China, once the key driver of demand for luxury goods from Europe, amid a protracted slump in the property market and growing uncertainty in the labor market. 

Large Transportation Orders Lift Germany's Factory Orders In July 

Closer to home, Germany's factory orders rose 2.9% in July, following an upwardly revised 4.6% increase in June, the Federal Statistical Office, or Destatis, reported Thursday. 

Orders unexpectedly rose for the second consecutive month, driven by an 86.5% jump in orders for transportation equipment and an 18.6% rise in electrical equipment. 

While domestic orders were unchanged in the month, orders from other countries increased 5.1%, driven by a 5.9% rise in orders from the eurozone and a 4.6% advance from outside the currency union. 

Incoming orders on an annual basis rose 3.7%, and excluding large orders, they fell 0.4% from June. 

Lack of Retail Sales Growth Highlights Weak consumer demand 

Retail sales in the Euro Area in July increased 0.1% from the previous month when sales were revised to a decline of 0.4%, Eurostat reported Thursday. 

The fuel sales declined 1% and outweighed the increase of 0.4% in food, beverage, and tobacco product sales and the 0.1% rise in non-food product sales. 

Euro Area retail sales in July declined 0.1% from a year ago as consumers limited purchases to basic items amid a cost of living crisis and high interest rates. 

Europe Indexes and Yields

The DAX index increased by 0.02% to 18,595.51; the CAC-40 index fell by 0.9% to 7,431.56; and the FTSE 100 index declined by 0.3% to 8,241.71. 

The yield on 10-year German bonds edged lower to 2.22%, French bonds inched down to 2.95%, the UK gilts edged down to 3.94%, and Italian bonds decreased to 3.59%.

The euro edged down to $1.10; the British pound inched higher to $1.31; and the U.S. dollar strengthened to 84.62 Swiss cents.

Brent crude increased $0.01 to $72.67 a barrel, and the Dutch TTF natural gas rose by €0.34 to €35.96 per MWh. 

Europe Stock Movers

Volvo AB Class B increased by 0.2% to SEK 261.70 despite the automaker lowering its sales and profit estimates. 

Associated British Foods decreased 5% to 2,365.18 pence after the parent company of Primark said wet weather negatively impacted its second-half retail sales. 

Vistry Group PLC jumped 5.6% to 1,392.76 pence after the UK-based home builder said it plans to buyback £130 million worth of its own stock. 

Churchill China declined 9.2% to 981.0 pence after the UK-based pottery company reported a sharp decline in revenue in its first half, driven by weakness in sales in the UK and Europe. 

Revenue plunged 7.8% to £40.6 million, net income increased 3.1% to £3.5 million, and earnings per share rose 2.8% to 32.8 pence from 31.9 pence a year earlier. 

The company announced to increase its interim dividend by 4.5% to 11.5 pence from 11.0 pence a year ago. 

Ashmore Group gained 6.8% to 184.70 pence, and the emerging markets-focused fund manager reported slightly better-than-expected annual results.

Rising Wages and Yen Keep Stocks in Japan In Check 

Market sentiment in Tokyo remained negative, benchmark indexes extended weekly losses after the yen edged higher, and the latest jobs data supported the case for a rate hike. 

The Nikkei 225 stock average decreased 1%, and the broader Topix index fell 0.5%. 

Nominal wage growth in July slowed from the previous month, the Ministry of Health, Labour, and Welfare reported Thursday. 

The nominal cash wage increase slowed to 3.6% in July from a 4.5% growth in June, which was the largest since 1997. 

Wages have been rising faster than the core inflation rate of 2.7% for the second month in a row, supporting the case for the Bank of Japan to increase interest rates at the end of its policy meeting later in the month. 

Mining industry wages increased 14.8% and construction wages advanced 9.6%, but wages in information and communication fell 0.8% and transportation and postal services decreased 0.7%.

Nominal wages have been on the rise for 30th month in a row, but real wages have been on the rise only for the last three months. 

The Japanese yen edged higher to 143.17 against the U.S. dollar and extended this week's advance to 2%. 

Japan Stock Movers 

The Nikkei 225 stock average declined 1% to 36,678.0, and the broader Topix index fell 0.5% to 2,620.05. 

Tech stocks declined in Tokyo for the third session in a row amid persistent weakness on Wall Street. 

Tokyo Electron decreased 2.5% to ¥22,425.0, Advantest Corp. dropped 2.9% to ¥5,950.0, SoftBank Group edged up 0.6% to ¥7,835.0, and Screen Holdings fell 1% to ¥9,575.0. 

Banks were in focus after the yen gained against the U.S. dollar amid rising expectations of a rate hike later in the month. 

Mitsubishi UFJ Financial Group decreased 1.5% to ¥1,485.50, Sumitomo Mitsui declined 1% to ¥9,324.0, and Mizuho Financial Group fell 0.4% to ¥2,962.0. 

Mitsubishi Logistics gained 5.4% to ¥5,157.0, Hitachi Zosen Group gained 2.9% to ¥971.0, and GS Yuasa Corp. gained 4.2% to ¥2,870.0. 

Toray Industries and Mitsubishi Chemical Group advanced more than 3%. 

China Indexes Wavered; Property Developers, Oil Producers and Tech Stocks In Focus 

Stocks in Hong Kong and mainland China lacked direction after falling in the previous three trading sessions. 

The Hang Seng index decreased 0.6% and extended the three-day loss to over 3% after soaring 4% in August. 

The CSI 300 index traded around the flatline amid a lack of interest from retail investors on the mainland.

The August rally stalled over the last three days as worries of an economic slowdown in the U.S. resurfaced following a weak reading on the manufacturing sector. 

The latest update on the U.S. labor market also showed weakening market conditions after new job openings shrank in July to the lowest level since January 2021. 

The number of job openings declined 237,000 to 7.673 million from the downwardly revised 7.91 million in June, the U.S. Bureau of Labor Statistics reported Wednesday. 

Amid widespread belief that the Federal Reserve is likely to lower its key lending rates by at least 25 basis points at the end of a two-day policy meeting on September 18,. 

The move by the Federal Reserve would also lead to a similar rate cut in Hong Kong, as the city maintains its currency peg with the U.S. dollar. 

Property developers in Hong Kong advanced in the hopes that the interest rates are heading lower in the near future, supporting a rebound in property sales. 

China Stock Movers 

The Hang Seng index decreased 0.6% to 17,359.37, and the CSI 300 index edged down 0.01% to 3,251.83. 

Oil producers were in focus for the third day in a row amid weakening crude oil prices in international markets. 

Crude oil prices dropped below $70 a barrel and hovered near $69.35 amid demand growth worries in the U.S. and China and rising supply from OPEC+ countries. 

CNOOC decreased 0.7% to HK $19.74, Petro China fell 3.7% to HK $6.27, and China Petroleum and Chemical Corp. declined 6.5% to HK $4.63. 

Property developers advanced in the hopes of rate cuts in the near future. 

Sun Hung Kai Properties gained 2% to HK $75.25, Henderson Land Development increased 1.8% to HK $23.70, and CK Hutchison Holdings added 2.2% to HK $42.90. 

Tech stocks remained under pressure for the fourth day in a row amid weakness in semiconductor stocks and online platforms. 

Alibaba Group was in focus after the e-commerce platform operator said it may consider accepting payments originating on the WeChat service operated by the rival Tencent Holding. 

Tencent Holding declined 0.2% to HK $369.0, Alibaba Group decreased 0.6% to HK $79.60, JD.com 1.9% to $103.80, and Meituan fell 0.4% to HK $118.80. 

U.S. Movers: AeroVironment, C3.ai, Topgolf Callaway Brands

Topgolf Callaway Brands increased 1.1% to $10.90 after the company said it plans to separate into two companies. The company will separate its golf equipment and lifestyle business from its entertainment business. 

C3.ai declined 11.5% to $20.42, and the company reported sharply lower-than-expected subscription revenue in its latest quarter. 

Total revenue in the fiscal first quarter increased 21% to $87.2 million from $72.4 million, and subscription revenue advanced 20% to $73.5 million from $61.4 million a year ago. 

The weaker-than-expected growth in its subscription revenue negatively impacted the stock. 

Net loss in the quarter shrank to $62.8 million from $64.3 million, and diluted loss per share fell to 50 cents from 56 cents a year earlier. 

AeroVironment declined by 3.5% to $186.60 despite the defense contractor reporting better-than-expected revenue and earnings in the fiscal first quarter. 

Revenue in the first quarter ending in July increased by 24% to $189.5 million from $152.3 million, net income edged slightly lower to $21.2 million from $21.8 million, and diluted earnings per share fell to 75 cents from 84 cents a year ago. 

Tech Stock Weakness Overshadow Wall Street Trading Ahead of Nonfarm Payroll Data

Tech stocks continued to decline for the third day in a row as investors worried about the economic slowdown amid mixed signals. 

The S&P 500 index and the Nasdaq Composite declined in early trading as investors sold high-flying tech and chip stocks amid growing worries of an economic slowdown and weakening labor market. 

Private sector employment expanded below market estimates, according to the latest data released by ADP. 

Private corporations added 99,000 new jobs in August, lower than 111,000 in the previous month, following two years of above-normal growth. 

"Moreover, job gains were flat at 4.8% for existing employees and increased to 7.3% for those who switched jobs, the data showed. 

"The job market's downward drift brought us to slower-than-normal hiring after two years of outsized growth.," ADP chief economist Nela Richardson said in a statement. 

Initial weekly jobless claims declined last week, the Labor Department reported Thursday. 

Weekly jobless claims dropped by 5,000 from the previous week to 227,000 in the week ending on August 31. 

The initial claims fell to a new 7-week low, easing fears of a potential increase in jobless claims amid moderating labor market conditions. 

Continuing claims, which lag by one week, dropped by 22,000 to 1.838 million in the previous week. 

U.S. Indexes and Treasury Yields

The S&P 500 index decreased 0.1% to 5,523.07, the Nasdaq Composite fell 0.4% to 17,067.71, and the Russell 2000 index fell 3.1% to 2,144.59. 

The yield on 2-year Treasury notes edged lower to 3.73%, 10-year Treasury notes decreased to 3.74%, and 30-year Treasury bonds inched lower to 4.04%.

WTI crude oil increased $0.51 to $69.75 a barrel, and natural gas prices edged up 4 cents to $2.18 a thermal unit.

Gold rose by $25.41 to $2,520.58 an ounce, and silver increased by $0.55 to $28.81.

The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 101.15.

U.S. Stock Movers

Topgolf Callaway Brands increased 1.1% to $10.90 after the company said it plans to separate into two companies. The company will separate its golf equipment and lifestyle business from its entertainment business. 

C3.ai declined 11.5% to $20.42, and the company reported sharply lower-than-expected subscription revenue in its latest quarter. 

Total revenue in the fiscal first quarter increased 21% to $87.2 million from $72.4 million, and subscription revenue advanced 20% to $73.5 million from $61.4 million a year ago. 

The weaker-than-expected growth in its subscription revenue negatively impacted the stock. 

Net loss in the quarter shrank to $62.8 million from $64.3 million, and diluted loss per share fell to 50 cents from 56 cents a year earlier. 

AeroVironment declined by 3.5% to $186.60 despite the defense contractor reporting better-than-expected revenue and earnings in the fiscal first quarter. 

Revenue in the first quarter ending in July increased by 24% to $189.5 million from $152.3 million, net income edged slightly lower to $21.2 million from $21.8 million, and diluted earnings per share fell to 75 cents from 84 cents a year ago. 

Europe Movers: Ashmore Group, Associated British Foods, Churchill China, Vistry Group, Volvo

European markets lacked direction and hovered near two-week lows amid the global rate path and economic growth uncertainties. 

Retail sales in the eurozone declined in July from a year ago, but Germany's factory orders rose unexpectedly. 

The DAX index increased by 0.1% to 18,608.88; the CAC-40 index fell by 0.6% to 7,454.52; and the FTSE 100 index declined by 0.1% to 8,256.73. 

The yield on 10-year German bonds edged lower to 2.22%, French bonds inched down to 2.95%, the UK gilts edged down to 3.94%, and Italian bonds decreased to 3.59%.

Volvo AB Class B increased by 0.2% to SEK 261.70 despite the automaker lowering its sales and profit estimates. 

Associated British Foods decreased 5% to 2,365.18 pence after the parent company of Primark said wet weather negatively impacted its second-half retail sales. 

Vistry Group PLC jumped 5.6% to 1,392.76 pence after the UK-based home builder said it plans to buyback £130 million worth of its own stock. 

Churchill China declined 9.2% to 981.0 pence after the UK-based pottery company reported a sharp decline in revenue in its first half, driven by weakness in sales in the UK and Europe. 

Revenue plunged 7.8% to £40.6 million, net income increased 3.1% to £3.5 million, and earnings per share rose 2.8% to 32.8 pence from 31.9 pence a year earlier. 

The company announced to increase its interim dividend by 4.5% to 11.5 pence from 11.0 pence a year ago. 

Ashmore Group gained 6.8% to 184.70 pence, and the emerging markets-focused fund manager reported slightly better-than-expected annual results. 

European Markets On Hold Amid Global Rate Path and Economic Growth Uncertainties

European markets lacked direction, and investors debated economic growth outlook and future interest rate path. 

Benchmark indexes in Paris, London, and Frankfurt traded sideways, and investors reviewed the latest updates on German factory orders and retail sales in the Euro Area.

Jittery investors have been selling stocks amid growing anxieties about the economic growth outlook in the U.S., China, and the Euro Area. 

Investors are on edge after a private manufacturing survey showed weakening activities for the fifth month in a row, and job openings also dropped to the level last seen in 2021. 

In the eurozone, consumer price inflation fell closer to the 2% target level set by the central bank largely because of the decline in energy prices, and consumer spending remains depressed amid high cost of living and weak wage growth. 

Moreover, consumer demand remains weak in China, once the key driver of demand for luxury goods from Europe, amid a protracted slump in the property market and growing uncertainty in the labor market. 

Large Transportation Orders Lift Germany's Factory Orders In July 

Closer to home, Germany's factory orders rose 2.9% in July, following an upwardly revised 4.6% increase in June, the Federal Statistical Office, or Destatis, reported Thursday. 

Orders unexpectedly rose for the second consecutive month, driven by an 86.5% jump in orders for transportation equipment and an 18.6% rise in electrical equipment. 

While domestic orders were unchanged in the month, orders from other countries increased 5.1%, driven by a 5.9% rise in orders from the eurozone and a 4.6% advance from outside the currency union. 

Incoming orders on an annual basis rose 3.7%, and excluding large orders, they fell 0.4% from June. 

Lack of Retail Sales Growth Highlights Stretched Consumer 

Retail sales in the Euro Area in July increased 0.1% from the previous month when sales were revised to a decline of 0.4%, Eurostat reported Thursday. 

The fuel sales declined 1% and outweighed the increase of 0.4% in food, beverage, and tobacco product sales and the 0.1% rise in non-food product sales. 

Euro Area retail sales in July declined 0.1% from a year ago as consumers limited purchases to basic items amid a cost of living crisis and high interest rates. 

Europe Indexes and Yields

The DAX index increased by 0.1% to 18,608.88; the CAC-40 index fell by 0.6% to 7,454.52; and the FTSE 100 index declined by 0.1% to 8,256.73. 

The yield on 10-year German bonds edged lower to 2.22%, French bonds inched down to 2.95%, the UK gilts edged down to 3.94%, and Italian bonds decreased to 3.59%.

The euro edged down to $1.10; the British pound inched higher to $1.31; and the U.S. dollar strengthened to 84.62 Swiss cents.

Brent crude increased $0.47 to $73.19 a barrel, and the Dutch TTF natural gas rose by €0.74 to €36.36 per MWh. 

Europe Stock Movers

Volvo AB Class B increased by 0.2% to SEK 261.70 despite the automaker lowering its sales and profit estimates. 

Associated British Foods decreased 5% to 2,365.18 pence after the parent company of Primark said wet weather negatively impacted its second-half retail sales. 

Vistry Group PLC jumped 5.6% to 1,392.76 pence after the UK-based home builder said it plans to buyback £130 million worth of its own stock. 

Churchill China declined 9.2% to 981.0 pence after the UK-based pottery company reported a sharp decline in revenue in its first half, driven by weakness in sales in the UK and Europe. 

Revenue plunged 7.8% to £40.6 million, net income increased 3.1% to £3.5 million, and earnings per share rose 2.8% to 32.8 pence from 31.9 pence a year earlier. 

The company announced to increase its interim dividend by 4.5% to 11.5 pence from 11.0 pence a year ago. 

Ashmore Group gained 6.8% to 184.70 pence, and the emerging markets-focused fund manager reported slightly better-than-expected annual results. 

Rising Wages and Yen Keep Stocks in Japan In Check

Market sentiment in Tokyo remained negative, benchmark indexes extended weekly losses after the yen edged higher, and the latest jobs data supported the case for a rate hike. 

The Nikkei 225 stock average decreased 1%, and the broader Topix index fell 0.5%. 

Nominal wage growth in July slowed from the previous month, the Ministry of Health, Labour, and Welfare reported Thursday. 

The nominal cash wage increase slowed to 3.6% in July from a 4.5% growth in June, which was the largest since 1997. 

Wages have been rising faster than the core inflation rate of 2.7% for the second month in a row, supporting the case for the Bank of Japan to increase interest rates at the end of its policy meeting later in the month. 

Mining industry wages increased 14.8% and construction wages advanced 9.6%, but wages in information and communication fell 0.8% and transportation and postal services decreased 0.7%.

Nominal wages have been on the rise for 30th month in a row, but real wages have been on the rise only for the last three months. 

The Japanese yen edged higher to 143.17 against the U.S. dollar and extended this week's advance to 2%. 

Japan Stock Movers 

The Nikkei 225 stock average declined 1% to 36,678.0, and the broader Topix index fell 0.5% to 2,620.05. 

Tech stocks declined in Tokyo for the third session in a row amid persistent weakness on Wall Street. 

Tokyo Electron decreased 2.5% to ¥22,425.0, Advantest Corp. dropped 2.9% to ¥5,950.0, SoftBank Group edged up 0.6% to ¥7,835.0, and Screen Holdings fell 1% to ¥9,575.0. 

Banks were in focus after the yen gained against the U.S. dollar amid rising expectations of a rate hike later in the month. 

Mitsubishi UFJ Financial Group decreased 1.5% to ¥1,485.50, Sumitomo Mitsui declined 1% to ¥9,324.0, and Mizuho Financial Group fell 0.4% to ¥2,962.0. 

Mitsubishi Logistics gained 5.4% to ¥5,157.0, Hitachi Zosen Group gained 2.9% to ¥971.0, and GS Yuasa Corp. gained 4.2% to ¥2,870.0. 

Toray Industries and Mitsubishi Chemical Group advanced more than 3%. 

China Indexes Wavered; Property Developers, Oil Producers and Tech Stocks In Focus

Stocks in Hong Kong and mainland China lacked direction after falling in the previous three trading sessions. 

The Hang Seng index decreased 0.6% and extended the three-day loss to over 3% after soaring 4% in August. 

The CSI 300 index traded around the flatline amid a lack of interest from retail investors on the mainland.

The August rally stalled over the last three days as worries of an economic slowdown in the U.S. resurfaced following a weak reading on the manufacturing sector. 

The latest update on the U.S. labor market also showed weakening market conditions after new job openings shrank in July to the lowest level since January 2021. 

The number of job openings declined 237,000 to 7.673 million from the downwardly revised 7.91 million in June, the U.S. Bureau of Labor Statistics reported Wednesday. 

Amid widespread belief that the Federal Reserve is likely to lower its key lending rates by at least 25 basis points at the end of a two-day policy meeting on September 18,. 

The move by the Federal Reserve would also lead to a similar rate cut in Hong Kong, as the city maintains its currency peg with the U.S. dollar. 

Property developers in Hong Kong advanced in the hopes that the interest rates are heading lower in the near future, supporting a rebound in property sales. 

China Stock Movers 

The Hang Seng index decreased 0.6% to 17,359.37, and the CSI 300 index edged down 0.01% to 3,251.83. 

Oil producers were in focus for the third day in a row amid weakening crude oil prices in international markets. 

Crude oil prices dropped below $70 a barrel and hovered near $69.35 amid demand growth worries in the U.S. and China and rising supply from OPEC+ countries. 

CNOOC decreased 0.7% to HK $19.74, Petro China fell 3.7% to HK $6.27, and China Petroleum and Chemical Corp. declined 6.5% to HK $4.63. 

Property developers advanced in the hopes of rate cuts in the near future. 

Sun Hung Kai Properties gained 2% to HK $75.25, Henderson Land Development increased 1.8% to HK $23.70, and CK Hutchison Holdings added 2.2% to HK $42.90. 

Tech stocks remained under pressure for the fourth day in a row amid weakness in semiconductor stocks and online platforms. 

Alibaba Group was in focus after the e-commerce platform operator said it may consider accepting payments originating on the WeChat service operated by the rival Tencent Holding. 

Tencent Holding declined 0.2% to HK $369.0, Alibaba Group decreased 0.6% to HK $79.60, JD.com 1.9% to $103.80, and Meituan fell 0.4% to HK $118.80. 

India Movers: Adani Enterprises, Allied Blenders and Distillers, Canara Bank, GIC, Prestige Estates, Reliance Industries, Suzlon Energy

Stocks in Mumbai edged higher amid mixed signals from global markets. Crude oil prices dropped to an 8-month low amid demand growth worries in the U.S. and China. 

The rupee hovered near a record low as the Reserve Bank of India showed no interest in defending the currency. 

The Sensex index increased by 0.1% to 82,391.07, and the Nifty index rose by 0.1% to 25,220.80. 

On the Mumbai stock exchange, 191 stocks traded at their 52-week highs, and 20 stocks traded at their 52-week lows.

The yield on the 10-year Indian government bonds inched higher to 6.87%, and the Indian rupee weakened to 83.97 against the U.S. dollar.

Canara Bank increased 0.05% to ₹108.65, and the financial services company sold bonds to international investors worth $300 million, paying an interest rate of 4.89%. 

Allied Blenders and Distillers gained 1.1% to ₹353.10, and the company's board approved the purchase of a stake of as much as 80% for 70 crore in a venture with movie star Ranveer Singh. 

Suzlon Energy increased 2.2% to ₹74.95, and the company has sold its Pune headquarter building for 440 crore to improve its liquidity and focus on its core manufacturing business. 

OE Business Park Private Limited agreed to a sale-and-leaseback deal with an option to sell the property to Suzlon in the future. 

Prestige Estates Projects decreased 1.4% to₹1,846.65, and the residential real estate developer raised₹5,000 crore in an institutional offering through the sale of about 2.9 crore shares at an average price of₹1,674 crore. 

General Insurance Corporation of India declined 0.2% to ₹397.15, and the company received fewer-than-expected bids worth 2,300 crore on the first day of its offering on Wednesday. 

The central government may sell only a 3.4% stake in the current offering and sell the additional 3.4% stake at a later date. 

Adani Enterprises decreased 0.2% to ₹3,004.55, and the company said its first retail bond issue worth ₹800 crore was fully subscribed. 

The company also plans to bid for Nairobi, Kenya's airport, with a potential investment of $810 million. 

Reliance Industries gained 0.1% to ₹3,032.85, and the company's board is scheduled to meet on September 5 to discuss the 1-to-1 bonus issue. 

Global Markets Traded Sideways Ahead of Friday's Nonfarm Payroll Data

Stocks were in a holding pattern, and investors are on edge after economic slowdown worries resurfaced. 

U.S. stock stocks struggled to stay above the flatline as tech stocks continued to decline.

The S&P 500 index and the Nasdaq Composite traded in a tight range as investors shifted their attention to the release of nonfarm payroll data on Friday. 

Wall Street indexes posted their worst losses on Tuesday since the steep market loss on August 5 as chip stocks continue to underperform. 

The latest update on the labor market showed job openings in July declined to the lowest level since January 2021. 

The number of job openings declined 237,000 to 7.673 million from the downwardly revised 7.91 million in June, the U.S. Bureau of Labor Statistics reported Wednesday. 

Job openings declined the most in healthcare, warehousing, transportation, and state and local government. 

Nvidia dropped as much as 2% after a Bloomberg report noted that the U.S. Justice Department served subpoenas to the company amid a widening investigation of its antitrust practices. 

AMD, Qualcomm, Micron Tech, and other chipmakers were down following the decline in Nvidia. 

Meta Platforms, Microsoft, Amazon, and Apple declined between 0.5% and 1.4%. 

Investors are preparing for more volatile days ahead in September, historically a weak month for stocks, and market participants are awaiting the release of nonfarm payroll data on Friday. 

The U.S. trade deficit in July widened to $78.8 billion, and exports rose at a faster pace than imports, the Bureau of Economic Analysis reported Wednesday. 

Exports increased 0.5% to $266.6 billion, and imports advanced 2.1% to $345.4 billion, widening the deficit to $78.8 billion. 

Higher imports of computer accessories, transport services, and charges for use of intellectual property contributed to the increase in imports. 

The deficit with China increased $4.9 billion to $27.2 billion after exports declined $1.0 billion to $11.5 billion and imports rose $3.9 billion to $38.7 billion. 

U.S. Indexes and Treasury Yields

The S&P 500 index decreased 0.1% to 5,520.73, the Nasdaq Composite fell 0.1% to 17,108.71, and the Russell 2000 index rose 0.2% to 2,153.40. 

The yield on 2-year Treasury notes edged lower to 3.87%, 10-year Treasury notes decreased to 3.84%, and 30-year Treasury bonds inched lower to 4.13%.

WTI crude oil decreased $0.45 to $69.72 a barrel, and natural gas prices edged up 4 cents to $2.14 a thermal unit.

Gold rose by $2.77 to $2,495.99 an ounce, and silver increased by $0.12 to $28.19.

The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 101.62.

U.S. Stock Movers

Nvidia Corp. declined 1.0% to $106.91, AMD rose 2.5% to $140.48, Qualcomm added 1.2% to $165.28, and Micron Technology gained 0.5% to $89.07. 

Microsoft fell 0.6% to $407.07, Meta Platforms decreased 0.3% to $510.47, and Amazon.com Inc. declined 1% to $174.39. 

Dollar Tree plunged 19% to $66.20, and the deep discount retailer reported weaker-than-expected second quarter results and the retailer lowered its full-year outlook. 

The company guided its full-year adjusted earnings per share to range between $5.20 and $5.60 from the previous estimate between $6.50 and $7.0. 

Dick's Sporting Goods dropped 8.6% to $212.16, despite the sporting goods retailer reporting better-than-expected second quarter results and raising its full-year earnings estimate. 

The specialty retailer revised its full-year earnings per share to between $13.55 and $13.90 from the previous estimate between $13.35 and $13.75. 

European Markets Extended Losses by 1% Amid Growth Worries In the U.S. and China 

European markets extended losses on Wednesday as investors worried about economic growth in the U.S. and China. 

Benchmark indexes in Paris, London, and Frankfurt declined around 1% and extended losses for the second day in a row after U.S. manufacturing sector activities contracted for the fifth month in a row in August and fell in 21 out of 22 months. 

Moreover, a private survey in China showed service sector expansion moderated last month, despite the peak summer travel season. 

Meanwhile, the Euro Area's private sector economic growth accelerated in August from the previous month, according to a survey compiled by S&P Global. 

HCOB's Euro Area Composite PMI accelerated to 51.0 in August from 50.2 in July and expanded at the fastest pace in three months, driven by an upturn in service sector activities. 

The final reading for the composite index was revised slightly lower from the initial estimate of 51.2. 

The composite index's increase was driven entirely by the increase in the service sector, and the manufacturing sector contraction deepened and extended the decline to the 17th consecutive month. 

Producer prices in the Euro Area increased 0.8% from the previous month and declined 2.1% from the previous year in July, Eurostat reported Wednesday. 

The wholesale price increase in the month was driven by the surge in energy prices, while costs declined for intermediate, durable, and non-durable goods. Excluding energy, producer prices decreased 0.1%. 

Europe Indexes and Yields

The DAX index decreased by 0.8% to 18,590.95; the CAC-40 index fell by 1.0% to 7,500.97; and the FTSE 100 index declined by 0.4% to 8,269.60. 

The yield on 10-year German bonds edged lower to 2.22%, French bonds inched down to 2.96%, the UK gilts edged down to 3.96%, and Italian bonds decreased to 3.63%.

The euro edged down to $1.10; the British pound inched higher to $1.31; and the U.S. dollar strengthened to 85.01 Swiss cents.

Brent crude decreased $0.49 to $73.11 a barrel, and the Dutch TTF natural gas fell by €1.35 to €35.66 per MWh. 

Europe Stock Movers

Semiconductor companies led the decliners in Wednesday's trading, following heavy losses in the sector in New York on Tuesday. 

Market sentiment weakened after the U.S. Justice Department sent subpoenas to AI-chipmaker Nvidia as a part of its deepening probe into the company's antitrust practices. 

ASML Holding declined 5.4% to €737.10, STMicroelectronics dropped 2.5% to €26.67, and NXP Semiconductors plunged 5.4% to €211.0. 

Commerzbank AB dropped 1.8% to €12.85 after a Bloomberg report suggested that the German government is planning to sell between a 3% and 5% stake in the lender. 

Telia AB declined 0.5% to SEK 32.45, and the Swedish telecom company announced a restructuring plan. 

Direct Line Insurance Group declined 1.0% to 191.40 pence after the company reported weaker-than-expected first-half results. 

Oil explorers traded volatile for the second day in a row, and crude oil prices hovered near a nine-month low, weighed down by concerns over rising supply and a weakening demand outlook. 

BP plc decreased 0.1% to 415.95 pence, Shell PLC dropped 0.6% to 2,597.0 pence, and TotalEnergies edged up 0.1% to €60.59. 

Barratt Developments declined 2.2% to 509.0 pence, and the UK-based housebuilder said profit declined 75% in the year ending in June. 

Japan Indexes Plunged 4% After U.S. Tech Stocks Dived 

Japan's market indexes dropped sharply following overnight losses in New York led by tech stocks after an economic slowdown worries resurfaced. 

The Nikkei 225 plunged as much as 5.3% and the Topix index dropped nearly 4% as investors sold stocks after semiconductor equipment makers led the decliners. 

Market sentiment in Tokyo weakened following the losses in overnight trading in New York and Europe after a private survey of manufacturing activities showed weakening growth for the fifth month in a row. 

The S&P 500 index dropped more than 2%, the technology-focused Nasdaq Composite declined more than 3%, and indexes in Europe dropped as much as 1% in active trading. 

The fears of an economic slowdown gripped market sentiment again after five weeks, when a slowdown in payroll additions plunged market indexes around the world. 

However, those fears of an economic slowdown in the U.S. were set aside over the next three weeks after a string of positive data suggested that the economy continues to expand and inflation remains subdued. 

Investors shifted their attention to the release of the nonfarm payroll report on Friday, and if the U.S. economy adds less than 125,000 net new jobs in August, market indexes may face additional selling pressure. 

Closer to home, Japan's service sector growth moderated in August, according to the final estimate conducted by au Jibun Bank. 

The au Jibun Bank Japan Services PMI moderated to 53.7 from the preliminary estimate of 54.0, S&P Global said in a report released Wednesday. 

The service sector activities expanded for the seventh month in a row, and the rate of change matched the previous month's rate. 

Japan Stock Movers 

The Nikkei 225 Stock Average plunged 4.3% to 37,011.80, and the broader Topix index declined 3.7% to 2,632.80. 

Tech-led sell-off in Tokyo quickly spread to other sectors amid worries of strengthening the yen. 

Tokyo Electron declined 8.6% to ¥22,995.0, Advantest fell 7.7% to ¥6,129.0, Screen Holdings plunged 9% to ¥9,668.0, and SoftBank Group decreased 7.7% to ¥7,781.0. 

Renesas Electronics dropped 8.9% to ¥2,265.0 and Socionext fell 9.1% to ¥2,837.50. 

Sumitomo Mitsui Financial Group decreased 4.5% to ¥9,415.0, Mitsubishi UFJ Financial Group dropped 5.6% to ¥1,509.0, and Mizuho Financial Group eased 5.2% to ¥2,974.0. 

The yen strengthened to 145.09 after the Bank of Japan reiterated its hawkish stance and said that the central bank is prepared to lift rates if inflation data warrants such a move. 

Toyota Motor decreased 3.5% to ¥2,674.0, Honda Motor declined 4.6% to ¥1,530.0, and Nissan Motor plunged 3.8% to ¥413.50. 

Hang Seng Index Drops 1.3% Following Overnight Losses In New York 

Market indexes in Hong Kong and Shanghai dropped following overnight losses in New York after fears of a U.S. economic slowdown resurfaced. 

The Hang Seng index dropped 1% and the mainland China-focused CSI 300 index declined 0.4%, tracking losses on Wall Street and that rippled to markets in Europe and Asia. 

The S&P 500 index dropped more than 2% and the technology-focused Nasdaq Composite declined more than 3% after a private survey tracking manufacturing activities showed a contraction for the fifth month in a row in August. 

The fears of an economic slowdown gripped market sentiment, and only five weeks ago world markets plunged more than 5% after the U.S. labor markets signaled a possible slowdown. 

However, those fears were set aside over the next three weeks after a string of positive economic data suggested that the economy continues to expand amid weakening inflation. 

Investors shifted their attention to the release of the nonfarm payroll report on Friday, and if the U.S. economy adds less than 125,000 net new jobs in August, market indexes may face additional selling pressure. 

Closer to home, a private survey tracking service sector activity growth moderated in August. 

The Caixin General Service Purchasing Managers' Index slowed to 51.6 in August from 52.1 in July, indicating a slowdown in growth in the sector's activities. 

New order growth eased and input costs increased at the fastest pace in a year; however, the final price for services fell for the first time in seven months amid intense competition and discounts. 

The service sector expanded for the 20th consecutive month, according to the report released by S&P Global. 

China Stock Movers 

The Hang Seng index declined 1.1% to 17,462.25 and the CSI 300 index dropped 0.4% to 3,260.34, tracking losses in Asia and Europe as investors switched to risk-on mode. 

Oil exploration companies fell sharply in Hong Kong and Shanghai after crude oil prices plunged as much as 5% to $69.55 a barrel. 

CNOOC Ltd. decreased 5.5% to HK $20.05 and Petro China declined 5.9% to HK $6.52. 

Tech stocks traded down, following sharp losses in artificial intelligence-linked stocks in overnight trading in New York, and semiconductor stocks were among the leading decliners. 

Tencent Holdings declined 1.2% to $373.60, Meituan edged up 0.5% to HK $119.50, Alibaba Group inched higher 0.5% to HK $80.30, Baidu dropped 1% to HK $80.50, and JD.com rose 1.1% to HK $106.10. 

SMIC fell 2% to HK $16.04, Sense Time Group fell 2.6% to HK $1.11, and Wingtech Technology decreased 0.4% to 24,90 yuan. 

Hong Kong Exchanges and Clearing Limited declined 1.1% to HK $230.20 and approached its five-year low. 

U.S. Movers: Dick's Sporting Goods, Dollar Tree, Nvidia, Tech Stocks

Wall Street indexes are posting the worst losses since the steep market loss on August 5 as chip stocks continue to underperform. 

Nvidia dropped as much as 2% after a Bloomberg report noted that the U.S. Justice Department served subpoenas to the company amid a widening investigation of its antitrust practices. 

AMD, Qualcomm, Micron Tech, and other chipmakers were down following the decline in Nvidia. 

Meta Platforms, Microsoft, Amazon, and Apple declined between 0.5% and 1.4%. 

Investors are preparing for more volatile days ahead in September, historically a weak month for stocks, and investors are awaiting the release of nonfarm payroll data on Friday. 

Nvidia Corp. declined 1.0% to $106.91, AMD rose 2.5% to $140.48, Qualcomm added 1.2% to $165.28, and Micron Technology gained 0.5% to $89.07. 

Microsoft fell 0.6% to $407.07, Meta Platforms decreased 0.3% to $510.47, and Amazon.com Inc. declined 1% to $174.39. 

Dollar Tree plunged 19% to $66.20, and the deep discount retailer reported weaker-than-expected second quarter results and the retailer lowered its full-year outlook. 

The company guided its full-year adjusted earnings per share to range between $5.20 and $5.60 from the previous estimate between $6.50 and $7.0. 

Dick's Sporting Goods dropped 8.6% to $212.16, despite the sporting goods retailer reporting better-than-expected second quarter results and raising its full-year earnings estimate. 

The specialty retailer revised its full-year earnings per share to between $13.55 and $13.90 from the previous estimate between $13.35 and $13.75. 

Volatile Tech Stocks Drive Wall Street Indexes Lower, U.S. Trade Deficit Widened In July

U.S. stocks opened lower and extended losses of the previous session, as tech stocks continue to decline. 

The S&P 500 index decreased 0.1% and the Nasdaq Composite dropped 0.4% as investors worried about the possible economic slowdown. 

Wall Street indexes are posting the worst losses since the steep market loss on August 5 as chip stocks continue to underperform. 

Nvidia dropped as much as 2% after a Bloomberg report noted that the U.S. Justice Department served subpoenas to the company amid a widening investigation of its antitrust practices. 

AMD, Qualcomm, Micron Tech, and other chipmakers were down following the decline in Nvidia. 

Meta Platforms, Microsoft, Amazon, and Apple declined between 0.5% and 1.4%. 

Investors are preparing for more volatile days ahead in September, historically a weak month for stocks, and investors are awaiting the release of nonfarm payroll data on Friday. 

The U.S. trade deficit in July widened to $78.8 billion, and exports rose at a faster pace than imports, the Bureau of Economic Analysis reported Wednesday. 

Exports increased 0.5% to $266.6 billion, and imports advanced 2.1% to $345.4 billion, widening the deficit to $78.8 billion. 

Higher imports of computer accessories, transport services, and charges for use of intellectual property contributed to the increase in imports. 

The deficit with China increased $4.9 billion to $27.2 billion after exports declined $1.0 billion to $11.5 billion and imports rose $3.9 billion to $38.7 billion. 

U.S. Indexes and Treasury Yields

The S&P 500 index decreased 0.1% to 5,523.07, the Nasdaq Composite fell 0.4% to 17,067.71, and the Russell 2000 index fell 3.1% to 2,144.59. 

The yield on 2-year Treasury notes edged lower to 3.87%, 10-year Treasury notes decreased to 3.84%, and 30-year Treasury bonds inched lower to 4.13%.

WTI crude oil decreased $0.35 to $69.98 a barrel, and natural gas prices edged up 4 cents to $2.14 a thermal unit.

Gold rose by $5.96 to $2,487.96 an ounce, and silver decreased by $0.01 to $28.10.

The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 101.62.

U.S. Stock Movers

Nvidia Corp. declined 1.0% to $106.91, AMD rose 2.5% to $140.48, Qualcomm added 1.2% to $165.28, and Micron Technology gained 0.5% to $89.07. 

Microsoft fell 0.6% to $407.07, Meta Platforms decreased 0.3% to $510.47, and Amazon.com Inc. declined 1% to $174.39. 

Dollar Tree plunged 19% to $66.20, and the deep discount retailer reported weaker-than-expected second quarter results and the retailer lowered its full-year outlook. 

The company guided its full-year adjusted earnings per share to range between $5.20 and $5.60 from the previous estimate between $6.50 and $7.0. 

Dick's Sporting Goods dropped 8.6% to $212.16, despite the sporting goods retailer reporting better-than-expected second quarter results and raising its full-year earnings estimate. 

The specialty retailer revised its full-year earnings per share to between $13.55 and $13.90 from the previous estimate between $13.35 and $13.75. 

Europe Movers: Barratt Developments, Commerzbank, Direct Line Insurance, Oil Stocks, Semiconductor Stocks, Telia

European markets extended losses amid economic growth worries in the U.S. and China. 

Private sector activities in the Euro Area accelerated in August, driven by an upturn in service sector activities. 

The DAX index decreased by 0.6% to 18,628.44; the CAC-40 index fell by 0.9% to 7,509.29; and the FTSE 100 index declined by 0.6% to 8,249.01. 

The yield on 10-year German bonds edged lower to 2.22%, French bonds inched down to 2.96%, the UK gilts edged down to 3.96%, and Italian bonds decreased to 3.63%.

Semiconductor companies led the decliners in Wednesday's trading, following heavy losses in the sector in New York on Tuesday. 

Market sentiment weakened after the U.S. Justice Department sent subpoenas to AI-chipmaker Nvidia as a part of its deepening probe into the company's antitrust practices. 

ASML Holding declined 5.4% to €737.10, STMicroelectronics dropped 2.5% to €26.67, and NXP Semiconductors plunged 5.4% to €211.0. 

Commerzbank AB dropped 1.8% to €12.85 after a Bloomberg report suggested that the German government is planning to sell between a 3% and 5% stake in the lender. 

Telia AB declined 0.5% to SEK 32.45, and the Swedish telecom company announced a restructuring plan. 

Direct Line Insurance Group declined 1.0% to 191.40 pence after the company reported weaker-than-expected first-half results. 

Oil explorers traded volatile for the second day in a row, and crude oil prices hovered near a nine-month low, weighed down by concerns over rising supply and a weakening demand outlook. 

BP plc decreased 0.1% to 415.95 pence, Shell PLC dropped 0.6% to 2,597.0 pence, and TotalEnergies edged up 0.1% to €60.59. 

Barratt Developments declined 2.2% to 509.0 pence, and the UK-based housebuilder said profit declined 75% in the year ending in June. 

European Markets Extended Losses by 1% Amid Growth Worries In the U.S. and China

European markets extended losses on Wednesday as investors worried about economic growth in the U.S. and China. 

Benchmark indexes in Paris, London, and Frankfurt declined around 1% and extended losses for the second day in a row after U.S. manufacturing sector activities contracted for the fifth month in a row in August and fell in 21 out of 22 months. 

Moreover, a private survey in China showed service sector expansion moderated last month, despite the peak summer travel season. 

Meanwhile, the Euro Area's private sector economic growth accelerated in August from the previous month, according to a survey compiled by S&P Global. 

HCOB's Euro Area Composite PMI accelerated to 51.0 in August from 50.2 in July and expanded at the fastest pace in three months, driven by an upturn in service sector activities. 

The final reading for the composite index was revised slightly lower from the initial estimate of 51.2. 

The composite index's increase was driven entirely by the increase in the service sector, and the manufacturing sector contraction deepened and extended the decline to the 17th consecutive month. 

Producer prices in the Euro Area increased 0.8% from the previous month and declined 2.1% from the previous year in July, Eurostat reported Wednesday. 

The wholesale price increase in the month was driven by the surge in energy prices, while costs declined for intermediate, durable, and non-durable goods. Excluding energy, producer prices decreased 0.1%. 

Europe Indexes and Yields

The DAX index decreased by 0.6% to 18,628.44; the CAC-40 index fell by 0.9% to 7,509.29; and the FTSE 100 index declined by 0.6% to 8,249.01. 

The yield on 10-year German bonds edged lower to 2.22%, French bonds inched down to 2.96%, the UK gilts edged down to 3.96%, and Italian bonds decreased to 3.63%.

The euro edged down to $1.10; the British pound inched higher to $1.31; and the U.S. dollar strengthened to 85.01 Swiss cents.

Brent crude decreased $0.99 to $74.66 a barrel, and the Dutch TTF natural gas fell by €0.25 to €36.72 per MWh. 

Europe Stock Movers

Semiconductor companies led the decliners in Wednesday's trading, following heavy losses in the sector in New York on Tuesday. 

Market sentiment weakened after the U.S. Justice Department sent subpoenas to AI-chipmaker Nvidia as a part of its deepening probe into the company's antitrust practices. 

ASML Holding declined 5.4% to €737.10, STMicroelectronics dropped 2.5% to €26.67, and NXP Semiconductors plunged 5.4% to €211.0. 

Commerzbank AB dropped 1.8% to €12.85 after a Bloomberg report suggested that the German government is planning to sell between a 3% and 5% stake in the lender. 

Telia AB declined 0.5% to SEK 32.45, and the Swedish telecom company announced a restructuring plan. 

Direct Line Insurance Group declined 1.0% to 191.40 pence after the company reported weaker-than-expected first-half results. 

Oil explorers traded volatile for the second day in a row, and crude oil prices hovered near a nine-month low, weighed down by concerns over rising supply and a weakening demand outlook. 

BP plc decreased 0.1% to 415.95 pence, Shell PLC dropped 0.6% to 2,597.0 pence, and TotalEnergies edged up 0.1% to €60.59. 

Barratt Developments declined 2.2% to 509.0 pence, and the UK-based housebuilder said profit declined 75% in the year ending in June.