- Arun Goswami
- 20 Aug, 2024
- Mumbai
Stocks in Mumbai advanced, the rupee recovered, and the yield on the Indian government bonds edged slightly lower.
The Sensex index increased by 1.0% to 79,885.57, and the Nifty index rose 0.9% to 24,363.20.
On the Mumbai stock exchange, 154 stocks traded at their 52-week highs, and 12 stocks traded at their 52-week lows.
Zomato Ltd. decreased 0.8% to ₹259.90 on reports that China-based Antfin, a unit of Alibaba Group, is planning to sell 13.6 crore shares, or 1.54% stake, through a block trade in the company today.
IndusInd Bank jumped 1.3% to ₹1,367.45, and the Reserve Bank of India has approved the company's plan to set up a wholly owned subsidiary for mutual funds management business.
Tata Consumer Products decreased 0.3% to ₹1,173.50, and the company's ₹3,000 crore rights issue priced at ₹818 per share closed on August 19.
DCM Shriram Industries decreased 0.5% to ₹1,135.55, and the company commissioned a new hydrogen peroxide plant with an annual capacity of 52,500 tons at its chemical complex in Bharuch, Gujarat.
Poly Medicure decreased 1.8% to ₹2,088.85, and the company launched an institutional offering to raise ₹1,000 crore with a floor price of ₹1,880.69 per share.
KEI Industries jumped 4.4% to ₹4,557.0 after UBS initiated coverage on the cable manufacturer with a target price of ₹6,150 over the next 12 months.
- Alexander Garcia
- 19 Aug, 2024
- Miami
Market indexes on Wall Street overcame morning doldrums and advanced above the flatline.
At the end of last week, stock indexes recovered for the second week in a row and erased losses for August, following wild market gyrations at the start of the month.
Earlier in the month, the S&P 500 index and the Nasdaq Composite tumbled in volatile trading amid growing worries of a U.S. economic slowdown after non-farm payrolls expanded at a slower-than-expected pace.
However, last week, market sentiment reversed and overcame worries of a slowdown after retail sales, inflation, and jobless claims data were ahead of market expectations.
On the economic front, investors are looking forward to the release of existing home sales at 3.8 million units and new home sales near 0.6 million in July.
The S&P 500 index and the Nasdaq Composite are approaching their record highs as set about five weeks ago amid growing optimism around possible rate cuts by the Federal Reserve.
Investors are hoping that policymakers are likely to cut rates by at least 25 basis points at the end of a two-day meeting on September 18.
Those hopes may not be realized if the Fed decides to hold rates because, despite eleven rate cuts over 2022 and 2023, inflation is still closer to 3% and not near the 2% target set by the policy committee.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.5% to 5,585.09, the Nasdaq Composite rose 0.7% to 17,751.23, and the Russell 2000 index advanced 0.8% to 2,159.30.
The yield on 2-year Treasury notes edged higher to 4.08%, 10-year Treasury notes increased to 3.89%, and 30-year Treasury bonds inched higher to 4.14%.
WTI crude oil decreased $2.13 to $74.44 a barrel, and natural gas prices edged up 9 cents to $2.21 a thermal unit.
Gold fell by $4.73 to $2,503.49 an ounce, and silver increased by $0.25 to $29.28.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 101.92.
U.S. Stock Movers
Icahn Enterprises decreased 6.2% to $15.93 after the Securities and Exchange Commission fined activist investor Carl Icahn for failing to disclose the company's stock as collateral for personal margin loans.
Carl Icahn and Icahn Enterprises agreed to pay $0.5 million and 1.5 million, respectively, according to the company announcement.
AMD increased 2.2% to $151.97, and the advanced semiconductor company agreed to acquire ZT Systems for $4.9 billion.
Estee Lauder Companies decreased 1.8% to $93.20, and the cosmetic company announced weaker-than-expected quarterly results.
Chief executive Fabirizio Freda said he plans to step down at the end of fiscal 2025, ending in June 2025, after leading the company for sixteen years.
Dutch Bros. declined 2.5% to $31.86 after Piper Sandler downgraded the stock to "neutral" from "overweight.'
European Indexes Wipe Out August Losses
European markets lost steam after rising for four days in a row, and the euro inched to an eight-month high.
Benchmark indexes in London, Paris, and Frankfurt struggled to advance after three hours of trading, and defense stocks led the decliners.
European markets advanced for the second consecutive week, tracking gains on Wall Street and easing worries of a U.S. economic slowdown.
Over the last week, market indexes recovered losses earlier in the month after a steep fall following the worries of the U.S. economic slowdown.
Those worries were set aside last week after U.S. weekly jobless claims, inflation, and retail sales were ahead of market expectations, powering the market rebound.
On the economic front, investors are looking forward to the release of construction output, an inflation update, and the current account balance in the Euro Area.
Europe Indexes and Yields
The DAX index increased by 0.5% to 18,421.69; the CAC-40 index rose by 0.7% to 7,502.01; and the FTSE 100 index rose 0.5% to 8,356.94.
The yield on 10-year German bonds edged higher to 2.22%, French bonds inched up to 2.94%, the UK gilts edged higher to 3.91%, and Italian bonds inched up to 3.59%.
The euro edged down to $1.10; the British pound inched higher to $1.292; and the U.S. dollar weakened to 86.50 Swiss cents.
Brent crude decreased $2.02 to $77.67 a barrel, and the Dutch TTF natural gas rose by €0.11 to €39.54 per MWh.
Europe Stock Movers
Aerospace and defense stocks led the decliners on a report that Germany is likely to cut its defense spending for military operations in Ukraine by half amid spending cuts.
BAE Systems decreased 1.9% to 1,324.50 pence, Rolls Royce plunged 0.7% to 497.60 pence, MTU Aero Engines declined 0.3% to €267.90, and Rheinmetall AG fell 1.8% to €552.20.
Plus500 Ltd. rose 5% to 2,555.59 pence after the online futures, options, and contract spread derivatives platform reported strong interim results and forecasted annual results to surpass market expectations.
Barratt Developments rose 0.9% to 540.80 pence and Redrow plc increased 2.3% to 777.53 pence after two UK-based home builders said in joint statements that the merger deal is scheduled to be completed later this week.
The weakness in tech stocks kept in check market gains in early trading despite the growing optimism that the U.S. Federal Reserve is more likely to cut interest rates between 50 basis points and 100 basis points before the year's end.
SAP SE decreased 0.5% to €195.82, ASML Holding NV fell 1% to €195.82, BE Semiconductor edged higher by 0.8% to €122.05, and STMicroelectronics added 0.3% to €27.87.
Tokyo Indexes Eased 1% Following Muti-year High Surge In the Last Week
Stocks in Tokyo succumbed to profit-taking after a sharp rebound of nearly 8% in the previous week.
The Nikkei index decreased 1.6% and the Topix dropped 1.7% after market sentiment recovered last week from wild swings earlier in the month.
Last week, investor sentiment rebounded after worries about the possible economic slowdown eased and the Bank of Japan deputy governor's comments calmed market nerves.
Uchida Shinichi commented that the central bank will refrain from raising rates when markets are not stable.
The yen rebounded 2% to 145.23 against the U.S. dollar after machinery orders rose from the previous week in June.
Japan's machinery orders, which exclude large but infrequent orders from shipping and power companies, rose 2.1% from the previous month in June, the Cabinet Office reported Monday.
Orders rebounded from a decrease of 3.2% in May, largely because of the rise in orders from the non-manufacturing sector.
On an annual basis, private-sector machinery orders unexpectedly declined 1.7% after surging 10.7% in May.
Japan Stock Movers
The Nikkei 224 Stock Average decreased 1.6% to 37,440.86, and the Topix index dropped 1.3% to 2,643.42.
Tech stocks and banks were among the leading decliners in Monday's trading. Tokyo Electron, Advantest, Screen Holdings, and GS Yuasa fell between 1% and 3%.
Sumitomo Mitsui Financial, Mitsubishi UFJ Financial, and Mizuho Financial declined between 1% and 2%.
Automakers also fell after investors took profit in leading industrial companies.
Toyota Motor decreased 3% to ¥2,660.50, Honda Motor fell 1.1% to ¥1,567.50, Nissan Motor declined 1.4% to ¥437.0, and Mitsubishi Motor eased 1.4% to ¥404.20.
China Stocks Advanced Ahead of Earnings Releases This Week
Domestic earnings optimism and waning fears of an economic slowdown in the U.S. supported the mark advance in Monday's trading in Hong Kong and Shanghai.
The Hang Seng index jumped 1% and the mainland-focused CSI 300 index gained 0.4%.
Market sentiment remained positive for the second week in a row following the largest single-day gain in Friday's trading in the Hang Seng index.
The tech stocks index in Hong Kong jumped nearly 2% after JD.com reported second-quarter earnings increased 92% from a year ago.
Investors are looking forward to earnings from leading corporations this week, including results from AIA on Thursday and Hong Kong Exchanges and Clearing on Wednesday.
Market sentiment in Hong Kong and Asia was bolstered by advances in Friday's trading in New York, driving the S&P 500 index in 2024 to its best weekly gain in 2024.
Investors have built up expectations of at least a 25 basis points rate cut at the end of the Fed's two-day policy meeting on September 18.
Consumer price inflation has steadily declined to just under 3%, but despite the eleven rate hikes over 2022 and 2024, the inflation rate is still far higher than the Fed's 2% target rate.
China Stock Movers
The Hang Seng index soared 1% to 17,614.62, and the CSI index rose 0.4% to 3,359.25.
JD.com jumped 5.4% to HK $114.0 and extended two-day gains to close to 10% after the diversified Internet conglomerate reported a 92% jump in earnings in the second quarter.
Other tech leaders traded higher of their earnings announcements, following the release of earnings from JD.com.
Baidu Inc. advanced 3.8% to HK $87.0 ahead of the search engine company's earnings on Thursday.
Xiaomi Corp increased 2.8% to HK$17.80, and Meituan advanced 1.6% to HK$109.40.
ASMPT Ltd. declined 0.3% to HK $85.40, and the stock jumped as much as 1.3% earlier in the day after the semiconductor company was selected to be included in the Hang Seng Tech Index.
- Scott Peters
- 19 Aug, 2024
- New York City
Icahn Enterprises decreased 6.2% to $15.93 after the Securities and Exchange Commission fined activist investor Carl Icahn for failing to disclose the company's stock as collateral for personal margin loans.
Carl Icahn and Icahn Enterprises agreed to pay $0.5 million and 1.5 million, respectively, according to the company announcement.
AMD increased 2.2% to $151.97, and the advanced semiconductor company agreed to acquire ZT Systems for $4.9 billion.
Estee Lauder Companies decreased 1.8% to $93.20, and the cosmetic company announced weaker-than-expected quarterly results.
Chief executive Fabirizio Freda said he plans to step down at the end of fiscal 2025, ending in June 2025, after leading the company for sixteen years.
Dutch Bros. declined 2.5% to $31.86 after Piper Sandler downgraded the stock to "neutral" from "overweight.'
- Barry Adams
- 19 Aug, 2024
- New York City
Stocks were little changed in early trading after indexes recovered for the second week in a row and erased losses for August.
Earlier in the month, the S&P 500 index and the Nasdaq Composite tumbled in volatile trading amid growing worries of a U.S. economic slowdown after non-farm payrolls expanded at a slower-than-expected pace.
However, market sentiment reversed and overcame worries of a slowdown after retail sales, inflation, and jobless claims data were ahead of market expectations.
On the economic front, investors are looking forward to the release of existing home sales at 3.8 million units and new home sales near 0.6 million for July.
The S&P 500 index and the Nasdaq Composite are approaching their record highs as set about five weeks ago amid growing optimism around possible rate cuts by the Federal Reserve.
Investors are hoping that policymakers are likely to cut rates by at least 25 basis points at the end of a two-day meeting on September 18.
Those hopes may not be realized if the Fed decides to hold rates because, despite eleven rate cuts over 2022 and 2023, inflation is still closer to 3% and not near the 2% target set by the policy committee.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.1% to 5,558.92, the Nasdaq Composite fell 0.1% to 17,623.03, and the Russell 2000 index rose 0.4% to 2,149.63.
The yield on 2-year Treasury notes edged higher to 4.08%, 10-year Treasury notes increased to 3.89%, and 30-year Treasury bonds inched higher to 4.14%.
WTI crude oil decreased $0.03 to $76.61 a barrel, and natural gas prices edged up 5 cents to $2.18 a thermal unit.
Gold advanced by $17.49 to $2,490.84 an ounce, and silver increased by $0.02 to $29.04.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 102.21.
U.S. Stock Movers
Icahn Enterprises decreased 6.2% to $15.93 after the Securities and Exchange Commission fined activist investor Carl Icahn for failing to disclose the company's stock as collateral for personal margin loans.
Carl Icahn and Icahn Enterprises agreed to pay $0.5 million and 1.5 million, respectively, according to the company announcement.
AMD increased 2.2% to $151.97, and the advanced semiconductor company agreed to acquire ZT Systems for $4.9 billion.
Estee Lauder Companies decreased 1.8% to $93.20, and the cosmetic company announced weaker-than-expected quarterly results.
Chief executive Fabirizio Freda said he plans to step down at the end of fiscal 2025, ending in June 2025, after leading the company for sixteen years.
Dutch Bros. declined 2.5% to $31.86 after Piper Sandler downgraded the stock to "neutral" from "overweight.'
- Inga Muller
- 19 Aug, 2024
- Frankfurt
European markets retained an upward bias after indexes advanced for four days in a row.
Defense stocks were under pressure from the worry that Germany may halve its Ukraine defense spending amid broad budget spending cuts.
The DAX index increased by 0.2% to 18,315.56; the CAC-40 index rose by 0.4% to 7,480.17; and the FTSE 100 index was nearly unchanged at 8,311.59.
The yield on 10-year German bonds edged higher to 2.22%, French bonds inched up to 2.94%, the UK gilts edged higher to 3.91%, and Italian bonds inched up to 3.59%.
Aerospace and defense stocks led the decliners on a report that Germany is likely to cut its defense spending for military operations in Ukraine by half amid spending cuts.
BAE Systems decreased 1.9% to 1,324.50 pence, Rolls Royce plunged 0.7% to 497.60 pence, MTU Aero Engines declined 0.3% to €267.90, and Rheinmetall AG fell 1.8% to €552.20.
Plus500 Ltd. rose 5% to 2,555.59 pence after the online futures, options, and contract spread derivatives platform reported strong interim results and forecasted annual results to surpass market expectations.
Barratt Developments rose 0.9% to 540.80 pence and Redrow plc increased 2.3% to 777.53 pence after two UK-based home builders said in joint statements that the merger deal is scheduled to be completed later this week.
The weakness in tech stocks kept in check market gains in early trading despite the growing optimism that the U.S. Federal Reserve is more likely to cut interest rates between 50 basis points and 100 basis points before the year's end.
SAP SE decreased 0.5% to €195.82, ASML Holding NV fell 1% to €195.82, BE Semiconductor edged higher by 0.8% to €122.05, and STMicroelectronics added 0.3% to €27.87.
- Bridgette Randall
- 19 Aug, 2024
- London
European markets lost steam after rising for four days in a row, and the euro inched to an eight-month high.
Benchmark indexes in London, Paris, and Frankfurt struggled to advance after three hours of trading, and defense stocks led the decliners.
European markets advanced for the second consecutive week, tracking gains on Wall Street and easing worries of a U.S. economic slowdown.
Over the last week, market indexes recovered losses earlier in the month after a steep fall following the worries of the U.S. economic slowdown.
Those worries were set aside last week after U.S. weekly jobless claims, inflation, and retail sales were ahead of market expectations, powering the market rebound.
On the economic front, investors are looking forward to the release of construction output, an inflation update, and the current account balance in the Euro Area.
Europe Indexes and Yields
The DAX index increased by 0.2% to 18,315.56; the CAC-40 index rose by 0.4% to 7,480.17; and the FTSE 100 index was nearly unchanged at 8,311.59.
The yield on 10-year German bonds edged higher to 2.22%, French bonds inched up to 2.94%, the UK gilts edged higher to 3.91%, and Italian bonds inched up to 3.59%.
The euro edged down to $1.10; the British pound inched higher to $1.292; and the U.S. dollar weakened to 86.50 Swiss cents.
Brent crude decreased $0.59 to $79.04 a barrel, and the Dutch TTF natural gas rose by €0.45 to €39.88 per MWh.
Europe Stock Movers
Aerospace and defense stocks led the decliners on a report that Germany is likely to cut its defense spending for military operations in Ukraine by half amid spending cuts.
BAE Systems decreased 1.9% to 1,324.50 pence, Rolls Royce plunged 0.7% to 497.60 pence, MTU Aero Engines declined 0.3% to €267.90, and Rheinmetall AG fell 1.8% to €552.20.
Plus500 Ltd. rose 5% to 2,555.59 pence after the online futures, options, and contract spread derivatives platform reported strong interim results and forecasted annual results to surpass market expectations.
Barratt Developments rose 0.9% to 540.80 pence and Redrow plc increased 2.3% to 777.53 pence after two UK-based home builders said in joint statements that the merger deal is scheduled to be completed later this week.
The weakness in tech stocks kept in check market gains in early trading despite the growing optimism that the U.S. Federal Reserve is more likely to cut interest rates between 50 basis points and 100 basis points before the year's end.
SAP SE decreased 0.5% to €195.82, ASML Holding NV fell 1% to €195.82, BE Semiconductor edged higher by 0.8% to €122.05, and STMicroelectronics added 0.3% to €27.87.
- Akira Ito
- 19 Aug, 2024
- Tokyo
Stocks in Tokyo succumbed to profit-taking after a sharp rebound of nearly 8% in the previous week.
The Nikkei index decreased 1.6% and the Topix dropped 1.7% after market sentiment recovered last week from wild swings earlier in the month.
Last week, investor sentiment rebounded after worries about the possible economic slowdown eased and the Bank of Japan deputy governor's comments calmed market nerves.
Uchida Shinichi commented that the central bank will refrain from raising rates when markets are not stable.
The yen rebounded 2% to 145.23 against the U.S. dollar after machinery orders rose from the previous week in June.
Japan's machinery orders, which exclude large but infrequent orders from shipping and power companies, rose 2.1% from the previous month in June, the Cabinet Office reported Monday.
Orders rebounded from a decrease of 3.2% in May, largely because of the rise in orders from the non-manufacturing sector.
On an annual basis, private-sector machinery orders unexpectedly declined 1.7% after surging 10.7% in May.
Japan Stock Movers
The Nikkei 224 Stock Average decreased 1.6% to 37,440.86, and the Topix index dropped 1.3% to 2,643.42.
Tech stocks and banks were among the leading decliners in Monday's trading. Tokyo Electron, Advantest, Screen Holdings, and GS Yuasa fell between 1% and 3%.
Sumitomo Mitsui Financial, Mitsubishi UFJ Financial, and Mizuho Financial declined between 1% and 2%.
Automakers also fell after investors took profit in leading industrial companies.
Toyota Motor decreased 3% to ¥2,660.50, Honda Motor fell 1.1% to ¥1,567.50, Nissan Motor declined 1.4% to ¥437.0, and Mitsubishi Motor eased 1.4% to ¥404.20.
- Li Chen
- 19 Aug, 2024
- Hong Kong
Domestic earnings optimism and waning fears of an economic slowdown in the U.S. supported the mark advance in Monday's trading in Hong Kong and Shanghai.
The Hang Seng index jumped 1% and the mainland-focused CSI 300 index gained 0.4%.
Market sentiment remained positive for the second week in a row following the largest single-day gain in Friday's trading in the Hang Seng index.
The tech stocks index in Hong Kong jumped nearly 2% after JD.com reported second-quarter earnings increased 92% from a year ago.
Investors are looking forward to earnings from leading corporations this week, including results from AIA on Thursday and Hong Kong Exchanges and Clearing on Wednesday.
Market sentiment in Hong Kong and Asia was bolstered by advances in Friday's trading in New York, driving the S&P 500 index in 2024 to its best weekly gain in 2024.
Investors have built up expectations of at least a 25 basis points rate cut at the end of the Fed's two-day policy meeting on September 18.
Consumer price inflation has steadily declined to just under 3%, but despite the eleven rate hikes over 2022 and 2024, the inflation rate is still far higher than the Fed's 2% target rate.
China Stock Movers
The Hang Seng index soared 1% to 17,614.62, and the CSI index rose 0.4% to 3,359.25.
JD.com jumped 5.4% to HK $114.0 and extended two-day gains to close to 10% after the diversified Internet conglomerate reported a 92% jump in earnings in the second quarter.
Other tech leaders traded higher of their earnings announcements, following the release of earnings from JD.com.
Baidu Inc. advanced 3.8% to HK $87.0 ahead of the search engine company's earnings on Thursday.
Xiaomi Corp increased 2.8% to HK$17.80, and Meituan advanced 1.6% to HK$109.40.
ASMPT Ltd. declined 0.3% to HK $85.40, and the stock jumped as much as 1.3% earlier in the day after the semiconductor company was selected to be included in the Hang Seng Tech Index.
- Barry Adams
- 16 Aug, 2024
- New York City
Stocks struggled to advance on Friday, but market indexes are set to close higher for the week as fears of an economic slowdown subsided.
The S&P 500 index and the Nasdaq Composite edged slightly lower after strong advances in Thursday's trading.
The recovery rally gathered momentum this week after retail sales, jobless claims, and inflation data suggested stable economic growth with low inflation.
For the week, the Nasdaq Composite advanced 5% and the S&P 500 index has added 3%, the best weekly gain in nine months.
Earlier in the month, a weaker-than-expected increase in payroll and a rise in weekly jobless claims sparked a global sell-off and pushed indexes into correction territory.
Market sentiment stabilized after a string of positive economic indicators this week, proving those fears of an economic slowdown to be overblown.
On the economic front, housing starts in July plunged 16% from a year ago to 1.238 million, housing completions increased 13.8% to 1.529 million, and building permits rose 7% to 1.396 million.
Housing permits declined 4%, housing starts dropped 6.8%, and housing completions eased 9.8% from the previous month, respectively.
U.S. Indexes and Treasury Yields
The S&P 500 index decreased 0.2% to 5,531.38, the Nasdaq Composite fell 0.3% to 17,539.48, and the Russell 2000 index rose 2.2% to 2,131.50.
The yield on 2-year Treasury notes edged higher to 4.06%, 10-year Treasury notes increased to 3.90%, and 30-year Treasury bonds inched higher to 4.15%.
WTI crude oil decreased $1.21 to $76.24 a barrel, and natural gas prices edged down 2 cents to $2.16 a thermal unit.
Gold advanced by $37.38 to $2,494.75 an ounce, and silver increased by $0.07 to $28.42.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 102.67.
U.S. Stock Movers
Applied Materials declined 2.9% to $205.63, despite the advanced semiconductor equipment company reporting better-than-expected fiscal third-quarter earnings.
JD.com jumped 5.6% to $28.53, and the Chinese e-commerce platform operator reported a sharp jump in net income in the second quarter despite intense price competition.
Revenue increased 1.2% to 291.4 billion yuan, and net income soared to 92% to 12.6 billion yuan.
- Inga Muller
- 16 Aug, 2024
- Frankfurt
European markets extended gains for the second week in a row after global markets recovered from sharp losses the previous week.
The DAX index increased by 0.6% to 18,285.28; the CAC-40 index rose by 0.2% to 7,440.21; and the FTSE 100 index eased by 0.5% to 8,308.86.
The yield on 10-year German bonds edged higher to 2.21%, French bonds inched up to 2.94%, the UK gilts edged higher to 3.89%, and Italian bonds inched up to 3.59%.
Nibe Industries AB jumped 3.5% to SEK 48.86, and the sustainable energy products maker reported better-than-expected second quarter results.
The heat pump maker said sales in the first half declined 16.8% to SEK 19.5 billion from SEK 23.5 billion, adjusted profit after tax dropped to SEK 250 million from SEK 2.5 billion, and earnings per share plunged to SEK 0.13 from SEK 1.28 a year ago.
The company said sales were negatively affected by the lowering of inventories by distributors, but the company said demand is expected to "gradually improve" in the second half.
Higher interest rates have negatively impacted the new construction of homes and commercial property, driving down the demand for the company's products.
Bayer AG soared 11.1% to €29.19 after the German agrochemical company won a legal victory against U.S. claims that its Roundup weed killer caused cancer.
An appeals court in Philadelphia, Pennsylvania, found that Monsanto Corporation, which the company acquired in 2018, failed to label that the company's products may cause cancer, violating state laws.
UBS AG increased 0.3% to CHF 26.32, and the Swiss bank announced its plans to close a $2 billion real estate fund acquired during the purchase of Credit Suisse.
- Bridgette Randall
- 16 Aug, 2024
- London
European markets advanced for the fourth session in a row amid easing worries of an economic slowdown in the world's largest economy.
Market indexes in Paris, London, and Frankfurt edged higher after the latest updates on U.S. retail sales and jobless claims allayed fears of an economic slowdown, followed by softer inflation reports earlier in the week.
World markets were roiled about two weeks ago after the U.S. payroll increase fell sharply in July, stoking fears of an unexpected economic slowdown.
Last week, European markets plunged as much as 7% after the U.S. benchmark indexes slumped 10% following the weak labor market updates.
However, market sentiment recovered this week after positive updates on U.S. retail sales, inflation, and jobless claims soothed investor fears, confirming that the economy is on track for steady growth with low inflation.
Closer to the region, UK retail sales rebounded by 0.5% in July after contracting by 0.9% in June, the Office for National Statistics reported on Friday.
On a yearly basis, UK retail sales increased 1.4% in July, reversing the 0.3% decline in the previous month.
Summer discounting and sporting events drove non-food store sales, specifically at department stores and sporting goods stores, up by 1.4%.
In addition, poor weather negatively impacted sales in the month a year ago.
Europe Indexes and Yields
The DAX index increased by 0.6% to 18,285.28; the CAC-40 index rose by 0.2% to 7,440.21; and the FTSE 100 index eased by 0.5% to 8,308.86.
The yield on 10-year German bonds edged higher to 2.21%, French bonds inched up to 2.94%, the UK gilts edged higher to 3.89%, and Italian bonds inched up to 3.59%.
The euro edged down to $1.09; the British pound inched higher to $1.29; and the U.S. dollar weakened to 86.73 Swiss cents.
Brent crude increased $2.02 to $78.99 a barrel, and the Dutch TTF natural gas rose by €0.39 to €39.21 per MWh.
Europe Stock Movers
Nibe Industries AB jumped 3.5% to SEK 48.86, and the sustainable energy products maker reported better-than-expected second quarter results.
The heat pump maker said sales in the first half declined 16.8% to SEK 19.5 billion from SEK 23.5 billion, adjusted profit after tax dropped to SEK 250 million from SEK 2.5 billion, and earnings per share plunged to SEK 0.13 from SEK 1.28 a year ago.
The company said sales were negatively affected by the lowering of inventories by distributors, but the company said demand is expected to "gradually improve" in the second half.
Higher interest rates have negatively impacted the new construction of homes and commercial property, driving down the demand for the company's products.
Bayer AG soared 11.1% to €29.19 after the German agrochemical company won a legal victory against U.S. claims that its Roundup weed killer caused cancer.
An appeals court in Philadelphia, Pennsylvania, found that Monsanto Corporation, which the company acquired in 2018, failed to label that the company's products may cause cancer, violating state laws.
UBS AG increased 0.3% to CHF 26.32, and the Swiss bank announced its plans to close a $2 billion real estate fund acquired during the purchase of Credit Suisse.
- Akira Ito
- 16 Aug, 2024
- Tokyo
Benchmark indexes in Tokyo soared more than 3% and extended their weekly surge to over 7% after the latest U.S. economic data allayed fears of a slowdown.
The Nikkei 225 and the Topix index extended gains for the fifth session in a row and extended weekly gains following a surge in stocks in overnight trading in New York.
Market sentiment improved in Tokyo after U.S. retail sales rose more than expected and weekly jobless claims eased from the one-year high for the second week in a row, easing concerns of weakening labor market conditions.
Tech and financial stocks led the gainers this week following the sharp advance in tech stocks in New York.
The gains in markets were also supported by the faster-than-expected increase in GDP growth in the second quarter, driven in large part by higher consumer spending on durable goods.
The yen drifted lower to 148.92 against the U.S. dollar on the worries that the Bank of Japan may not lift rates after the next policy meeting on September 19.
The monetary policy committee is set to meet three times before the year's end, with two additional meetings on October 30 and December 18.
Japan Stock Movers
The Nikkei 225 Stock Average jumped 3.8% to 38,115.55, and the Topix index advanced 3% to 2,679.36.
Tech stocks in Tokyo closed higher tracking gains in overnight trading in New York after the Nasdaq Composite jumped more than 2.3%.
Tokyo Electron, Advantest, Disco Corp., Lasertec, and SoftBank gained between 3% and 7%.
Three leading financial services companies jumped following the broad market advance.
Mitsubishi UFJ Financial, Sumitomo Mitsui Financial, and Mizuho Financial advanced between 3% and 5%.
Fujikura Ltd. soared 11.2% to ¥3,974.0, Sumitomo Pharma advanced 10.5% to ¥554.0, and Renesas Electronics Corp. jumped 7.5% to ¥2,509.50.
Murata Manufacturing, TDK, Taiyo Yuden, and Furukawa Electric added more than 5%.
- Li Chen
- 16 Aug, 2024
- Hong Kong
Stocks in Hong Kong and Shanghai diverged as investors reacted to earnings reports and reviewed the latest comments from the People's Republic of China governor.
The Hang Seng index jumped more than 1.5% after JD.com and Alibaba Group reported their quarterly results.
Stock market sentiment has wavered in recent months following the weak macroeconomic and earnings outlook, but market sentiment rebounded after global market sentiment improved and leading tech companies reported a sharp jump in earnings.
Positive results from residential developers, banks, and tech leaders also bolstered market sentiment in Hong Kong over the last two weeks.
People's Bank of China Governor Pan Gongsheng said in an interview with CCTV on Thursday that the central bank will take measures to effectively implement policy measures announced earlier in the year to achieve the growth target set by the politburo.
The Hang Seng index advanced for the second week in a row amid positive earnings from tech companies, but market sentiment has been more cautious in mainland China trading.
For the week, the Hang Seng index advanced 2% and the CSI 300 index gained 0.4%.
Global market sentiment improved after U.S. retail sales were ahead of expectations, following softer increases in consumer and producer price inflation, easing worries of a U.S. economic slowdown.
The S&P 500 index and Nasdaq Composite inched closer to record highs in mid-July and recovered sharp losses from the previous two weeks, which sparked a global rout.
China Stock Movers
The Hang Seng index advanced 1.7% to 17,397.61, and the CSI 300 index gained 0.1% to 3,343.21.
JD.com jumped 8.2% to $107.50, and the online retailer reported a sharp jump in income in the second quarter, despite the intense price competition.
Revenue increased 1.2% to 291.4 billion yuan, and net income soared to 12.6 billion yuan.
Alibaba Group advanced 4.7% to HK $80.0, and the e-commerce platform and cloud service provider reported a 4% increase in revenue in its latest quarter.
Revenue in the second quarter increased 4% to 243.2 billion yuan, and net income declined 29% to 24.3 billion yuan.
Cloud division revenue rose less-than-expected by 6% to 26.5 billion yuan.
- Arun Goswami
- 16 Aug, 2024
- Mumbai
Market rally in New York powered strong advances in Mumbai and Asian markets amid improving global market sentiment.
The Sensex index increased by 1.0% to 79,885.57, and the Nifty index rose 0.9% to 24,363.20.
On the Mumbai stock exchange, 51 stocks traded at their 52-week highs, and 12 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds inched lower to 6.85%, and the Indian rupee weakened to 83.93 against the U.S. dollar.
Reliance Power increased 2.3% to ₹30.44, and the electric power producer reported net loss narrowed in the June quarter.
Net revenue increased 6% to ₹2,069.1 crore and net loss narrowed to ₹97.9 crore from ₹296.3 crore a year ago.
Hindustan Aeronautics advanced 1.3% to ₹4,723.85, and the military aircraft manufacturer reported a rise in net profit and revenue in the June quarter.
Total revenue increased 18% to ₹5,083 crore from ₹4,325 crore, and net income soared 77% to ₹1,437 crore from ₹814 crore a year earlier.
Last month, the company's board declared a final dividend of ₹13 per share following the interim cash dividend of ₹22 per share.
Hindustan Zinc declined 6.4% to ₹535.0, and the company's promoter group Vedanta is set to sell a 3.17% stake in the company between August 16 and August 19 at a floor price of ₹486 per share.
Hinduja Global Solutions decreased 0.3% to ₹727.15, and the tech-enabled business services provider reported weak revenue growth in the June quarter.
Revenue increased 3.7% to ₹1,091.9 crore, and net income jumped to ₹165.6 crore from ₹14.9 crore a year ago.
Spicejet decreased 0.6% to ₹54.87, and the discount airline reported a decline in revenue and profit in the June quarter.
Revenue dropped 14.7% to 1,708 crore from 2,003.6 crore and net income declined 19.9% to 158.2 crore from 197.6 crore a year ago.
- Alexander Garcia
- 15 Aug, 2024
- Miami
Stock market indexes on Wall Street rose sharply after retail sales and weekly jobless data showed resilient consumer spending and a healthy labor market condition.
The S&P 500 index and the Nasdaq Composite advanced more than 1% after retail sales jumped more than expected and weekly jobless claims eased for the second week in a row from a one-year high.
Market indexes are now trading higher than the August 2 closing level, before the global markets plunged in Monday's trading on August 5.
Retail Sales Growth In July Surpassed Expectations
Retail and food services sales, adjusted for calendar and seasonal factors but not for inflation, increased from the previous month to 1.1% in July, the Bureau of Economic Analysis reported Thursday.
Retail sales are closely watched to gauge the level and direction of consumer spending, which dictates about two-thirds of the gross domestic product.
Retail and food services sales rose 2.7% from last year.
Retail trade sales were up 1.1% from June and 2.6% from last year.
Nonstore retailers were up 6.7% from last year, while food services and drinking places were up 3.4% from July 2023.
Retail and food services sales rose the most since January 2023, with sales at motor vehicles and parts dealers rising the most by 3.6%.
Initial jobless claims decreased from 7,000 to 227,000 in the week ending August 10, the U.S. Department of Labor reported Thursday.
The weekly jobless claims declined for the second consecutive week after reaching a near one-year high of 250,000 in the week ending on July 27.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 1.5% to 5,534.14, the Nasdaq Composite advanced 2.2% to 17,560.29, and the Russell 2000 index surged 2.7% to 2,140.77.
The yield on 2-year Treasury notes edged higher to 3.97%, 10-year Treasury notes increased to 3.86%, and 30-year Treasury bonds inched higher to 4.14%.
WTI crude oil increased $1.29 to $78.27 a barrel, and natural gas prices edged up 2 cents to $2.24 a thermal unit.
Gold advanced by $5.54 to $2,454.24 an ounce, and silver increased by $0.74 to $28.32.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 102.99.
U.S. Stock Movers
Cisco Systems jumped 7.9% to $49.03, and the networking equipment maker reported better-than-expected fiscal fourth quarter results.
Revenue declined 10% to $13.6 billion from $15.2 billion, net income plunged 45% to $2.2 billion from $4.0 billion, and diluted earnings per share dropped to 54 cents from 97 cents a year ago.
For the full-year fiscal 2024, revenue dropped 6% to $53.8 billion from $57.0 billion, net income plunged 18% to $10.3 billion from $12.6 billion, and diluted earnings per share decreased to $2.54 from $3.07 a year ago.
Cisco declared a quarterly dividend of 40 cents per share payable on October 23 to shareholders on record on October 2.
The company guided fiscal 2025 first quarter revenue to fall between $13.65 billion and $13.85 billion and earnings per share between 35 cents and 42 cents.
The company also announced its plans to cut 7% of its global workforce.
Walmart Inc. soared 8.8% to $74.70, and the discount retailer reported better-than-expected revenue and earnings in its latest quarter. The company lifted its annual estimate.
Consolidated revenue in the second quarter increased 4.8% to $169.3 billion from $161.6 billion, net income plunged to $4.7 billion from $8.1 billion, and diluted earnings per share dropped to 56 cents from 97 cents a year ago.
Walmart U.S. sales increased by 4.1% to $115.3 billion from $110.9 billion, driven by comparable sales excluding fuel sales at stores rising by 4.2%, the number of transactions increasing by 3.6%, and the average ticket size advancing by 0.6%.
The retailer guided fiscal third-quarter sales of $159.4 billion, operating income of $6.2 billion, and adjusted earnings per share of 51 cents.
Ulta Beauty soared 12.7% to $370.11 after Berkshire Hathaway acquired a stake in the cosmetic retailer worth $266 million.
Snowflake Inc. declined 3.2% to $123.17 after Berkshire Hathaway sold its entire stake in the cloud service provider, according to its latest regulatory filing.
European Markets Extended 3-day Rally, UK GDP Growth Slowed In Second Quarter
European markets were little changed in Thursday's trading, and investors reviewed the latest GDP update in the UK and key economic data released by China.
Benchmark indexes in Frankfurt, Paris, and London traded around the flatline amid weak investor sentiment and rate path uncertainties.
The U.K.'s gross domestic product in the second quarter slowed to an increase of 0.6% after rising 0.7% in the first quarter, the Office for National Statistics reported Thursday.
The broad-based increase in the service sector contributed to the increase in the second quarter.
The service sector expanded by 0.8%, with scientific and research activities soaring by 11%; manufacturing sector activities decreased by 0.1%, driven by a fall in transportation equipment by 1.8%; and textile, apparel, and leather products declined by 6.6%.
Construction activities shrank by 0.1% in the second quarter.
Government spending increased by 1.4%, and household spending rose by 0.2%.
Investors also reviewed China's retail sales, industrial output, and new home price updates.
Retail sales rebounded to an increase of 2.7% from a year ago, after falling to a 2% increase in June from 3.7% in May, the National Bureau of Statistics reported.
Retail sales rose for the 18th month in a row, driven by a rising demand for beverages, sports and recreational goods, and communication equipment.
Industrial output edged slightly lower to 5.1% in July from 5.3% in June, the statistical agency reported in a separate report on Thursday.
New home prices in 70 of the largest cities declined 4.9% from a year ago in July, extending the decline to the 13th month in a row, the statistical agency said in a note on Thursday.
Europe Indexes and Yields
The DAX index increased by 1.6% to 18,183.24; the CAC-40 index rose by 1.2% to 7,423.37; and the FTSE 100 index advanced by 0.8% to 8,347.35.
The yield on 10-year German bonds edged lower to 2.19%, French bonds inched down to 2.92%, the UK gilts edged lower to 3.85%, and Italian bonds inched up to 3.57%.
The euro edged down to $1.10; the British pound inched lower to $1.281; and the U.S. dollar weakened to 86.62 Swiss cents.
Brent crude increased $1.25 to $81.24 a barrel, and the Dutch TTF natural gas rose by €0.73 to €39.60 per MWh.
Europe Stock Movers
Admiral Group soared 7% to 3,009.0 pence after the home and vehicle insurer reported better-than-expected first-half results.
Rank Group jumped 7.2% to 75.05 pence, and the parent company of Bingo Mecca swung to profit in the year ending in June, driven by higher revenue.
Adyen NV advanced 8.7% to €1,236.80, and the Dutch payment solution provider reported strong first-half results and announced its plans to expand its business in India.
Orsted AS decreased 6.8% to DKK 393.60, and the largest offshore wind farm operator reported weaker-than-expected results because of significant impairment charges.
Net loss in the second quarter expanded to DKK 1.7 billion from DKK 538 million, driven by impairment losses of DKK 3.2 billion linked to the FlagshipONE project in Northern Sweden and delays related to the onshore substation Revolution Wind project near the shores of Rhode Island, U.S.A.
Geberit AG dropped 3.5% to CHF 509.80 after the Swiss sanitary products maker reported quarterly results.
Revenue in the second quarter increased by 4.4% to CHF 800.7 million from CHF 769.1 million, net income advanced by 4.1% to CHF 159.8 million from CHF 153.5 million, and earnings per share rose to CHF 4.82 from CHF 4.55 a year ago.
The sanitary products company estimated 2024 sales in local currencies to match the previous year and the EBITDA margin to ease to 29%.
The company also announced a stock buyback plan of CHF 300 million over the next two years.
Japan's Second Quarter GDP Rebounds as Private Consumption Rises
Japan market indexes extended gains for the fourth session in a row after economic growth rebounded in the second quarter.
The Nikkei 225 Stock Average and the Topix index advanced 0.8% after the faster-than-expected increase in GDP growth in the second quarter bolstered market sentiment.
GDP in the second quarter expanded by 0.8% on a quarterly basis, reversing the 0.6% decline in the first quarter, the Cabinet Office reported Thursday.
The second quarter data is preliminary, and the estimate is likely to be revised in the coming months.
On an annualized basis, economic growth rebounded to an increase of 3.1% in the second quarter from the decline in the first quarter of 2.3%.
The first quarter annualized growth rate was revised from a decrease of 2.9%.
Private consumption, which includes consumer spending, increased 1.0% from the previous quarter and expanded for the first time in five quarters.
Durable goods purchases, including appliances and automobiles, soared 8.1%, and the purchase of non-durable goods, which includes food and beverage items, edged up 0.8%.
However, service spending was unchanged in the quarter.
The faster rise in imports was a drag on the economy, after exports rose 1.4% and imports advanced 1.7%.
Government spending inched slightly higher by 0.1%, and public investment expanded by 4.5%.
Japan has struggled to regain its economic growth momentum since the collapse of the asset bubble nearly three decades ago, and the economy continues to bounce between periods of decline and short spurts of growth.
The yen held firm at 147.23 against the U.S. dollar after the release of the GDP data.
Japan Movers
The Nikkei 225 stock average increased 0.8% to 36,721.55, and the Topix index advanced 0.8% to 2,602.50.
Tech companies advanced following the softer increase in consumer price inflation data in the U.S.
Advantest, Tokyo Electron, Socionext, Lasertec, and Screen Holdings increased between 1% and 5%.
Financial stocks also participated in the market advance in the hopes that the faster GDP increase may provide additional support to policymakers looking to increase interest rates.
Sumitomo Mitsui Financial, Mitsubishi UFJ, and Mizuho Financial gained between 0.5% and 1.4%.
Kawasaki Heavy Industries soared 7.3% to ¥4,845.0 after the company reported a record June quarter profit amid rising demand and reiterated its annual outlook.
Dentsu Group soared 10.3% to ¥4,266.0 despite the advertising agency lowering its annual outlook.
The company lowered its annual earnings outlook and now expects net income of 36.7 billion yen compared to the previous estimate of 61.7 billion yen.
However, the company retained its annual sales outlook at 1.36 trillion yen.
Net sales for the second quarter increased 17% to 348.03 billion yen, and net income plunged to 10 million yen from 3.44 billion in the quarter a year ago.
China Indexes Advance After Key Earnings and Economic Reports
Stocks in Shanghai and Hong Kong advanced following a mixed batch of key economic data.
The Hang Seng index gained 0.4% and the CSI 300 index advanced more than 1% after China's statistical agency released retail sales, industrial output, and home price data for July on Thursday.
Retail sales rebounded to an increase of 2.7% from a year ago, after falling to a 2% increase in June from 3.7% in May, the National Bureau of Statistics reported.
China Retail Sales Growth Expanded 18th Consecutive Month
Retail sales rose for the 18th month in a row, driven by a rising demand for beverages, sports and recreational goods, and communication equipment.
On a monthly basis, retail sales rebounded to 0.4% in July from a downwardly revised 0.1% decline in June.
Retail sales have been under pressure after rising between 7% and 20% a year between 2001 and 20219, as consumer confidence continues to decline following the protracted property market collapse.
Industrial output edged slightly lower to 5.1% in July from 5.3% in June, the statistical agency reported in a separate report on Thursday.
China New Home Price Decline Accelerated to Nine-Year High
New home prices in 70 of the largest cities declined 4.9% from a year ago in July, extending the decline to the 13th month in a row, the statistical agency said in a note on Thursday.
The prices declined at the fastest pace since June 2015, and the property market rout spread from the second-tier cities to the top-tier cities.
The decline in home prices accelerated in Beijing to 3.3% from 2.4% in the previous month, in Shenzhen to 8.0% from 7.3%, in Guangzhou to 9.9% from 9.3%, and in Chongqing to 4.9% from 3.4%.
Shanghai recorded a price increase of 4.4%, matching the rate of increase in the previous month.
Monthly home prices eased for the third month in a row (0.7% in July), and the decrease was the largest since October 2014.
The residential property market is likely to remain depressed for the rest of the decade, amid falling demand, a lack of policy support for new construction, weak financial positions of property developers, and shifting demographic patterns.
China Stock Movers
The Hang Seng index increased 0.4% to 17,171.01, and the CSI 300 index advanced 1.1% to 3,347.40.
Samsonite SA dropped 12.8% to HK $18.52, and the travel goods maker plans a second listing in the U.S., expands its investor base, and improves stock liquidity.
Samsonite stock has fallen about 25% in the year so far and plunged nearly 40% from its peak in March.
CK Infrastructure Holdings declined 0.8% to HK $55.90 after the largest infrastructure company based in Hong Kong received approval for a secondary stock listing in London.
Last week, a consortium led by the company's energy unit agreed to acquire a portfolio of 32 wind farms located in England, Scotland, and Wales from insurer Aviva for £350 million.
The company also reported a 2% increase in its earnings in the first half, driven by higher sales in its UK-based portfolio of properties.
UK-based infrastructure assets accounted for the largest earnings driver for the company and generated 36% of the company's earnings.
Tencent Holdings Net Income Jumped 79% In Second Quarter
Tencent Holdings declined 0.8% to HK $370.80, despite the diversified Internet platform company reporting a 79% increase in profit in its latest quarter.
Revenue in the second quarter increased 8% to 161.1 billion yuan, or $22.6 billion; profit jumped 79% to 48.4 billion yuan, or $6.8 billion; and free cash flow soared to 40.4 billion yuan, or $5.7 billion.
In the second quarter, diluted earnings per share increased to 4.99 yuan from 2.69 yuan in the period a year ago.
During the second quarter, the company repurchased approximately 103.7 million shares on the Hong Kong Stock Exchange for approximately HK$ 37.5 billion and paid HK$ 31.7 billion for the final dividend in respect of the year ended December 2023.