- Inga Muller
- 14 Nov, 2024
- Frankfurt
European markets rebounded after corporate and earnings news supported positive market sentiment.
The eurozone's third quarter GDP growth accelerated to 0.4% sequentially after rising 0.2% in the second quarter, matching the flash estimate, according to a report released by Eurostat on Thursday.
France's jobless rate in the third quarter edged up to 7.4% from 7.3% in the second quarter, according to the data released by the French statistical agency, or INSEE.
The DAX index increased by 1.1% to 19,217.99; the CAC-40 index rose by 1.0% to 7,285.61; and the FTSE 100 index rose by 0.4% to 8,060.07.
The yield on 10-year German bonds edged lower to 2.36%, French bonds inched lower to 3.11%, the UK gilts edged higher to 4.52%, and Italian bonds decreased to 3.59%.
The euro edged lower to $1.05; the British pound inched down to $1.26; and the U.S. dollar strengthened to 89.04 Swiss cents.
Brent crude decreased $0.92 to $74.60 a barrel, and the Dutch TTF natural gas rose by €1.12 to €39.40 per MWh.
Europe Stock Movers
ASML Holding NV soared 5% to €660.0 after the advanced chip equipment maker lifted its sales outlook over the next five years despite sales in the current financial year.
CEO Christophe Fouquet that the company's technology is capable of scaling over the next five years to "leverage the artificial intelligence opportunity."
The company guided revenue between 44 billion and 60 billion and gross margin between 56% and 60% by 2030.
The current forecast implies that sales are likely to rise annually between 8% and 14% over the next five years.
Aviva plc gained 4.5% to 476.61 pence after the UK-based insurance company reported meaningful gains in its key business units in the third quarter.
Burberry Group jumped 18.5% to 867.20 pence after the company's recently appointed chief executive, Joshua Schulman, pledged to stabilize the business with a turnaround plan.
Premier Foods plc decreased 0.4% to 187.0 pence after the company reported higher sales and earnings in the first half amid rising demand for its food brands.
Alstom SA soared 7.9% to €21.22 after the French mobility company reported higher-than-expected cash in its interim results driven by rising sales volume and cost savings initiatives.
Thales SA declined 0.6% to €155.55 despite the defense contractor estimating higher sales and growth driven by expansion of its cyber security management systems.
Siemens AG advanced 6% to €190.20 after the engineering conglomerate reported higher-than-expected fiscal fourth quarter earnings, but the company lowered its sales outlook for fiscal 2025 amid rising geopolitical uncertainties.
Deutsche Telekom AG jumped 4% to €28.97 after the German telephone company reported better-than-expected third quarter profit and raised its full-year core profit estimate.
Banca Monte dei Paschi di Siena SpA rose 12% to €6.21 after the Italian government sold a 15% stake in the bank to rival Banco BPM.
Banco BPM gained 2.6% to €6.72.
- Inga Muller
- 14 Nov, 2024
- Frankfurt
European markets rebounded after corporate and earnings news supported positive market sentiment.
The eurozone's third quarter GDP growth accelerated to 0.4% sequentially after rising 0.2% in the second quarter, matching the flash estimate, according to a report released by Eurostat on Thursday.
France's jobless rate in the third quarter edged up to 7.4% from 7.3% in the second quarter, according to the data released by the French statistical agency, or INSEE.
The DAX index increased by 1.1% to 19,217.99; the CAC-40 index rose by 1.0% to 7,285.61; and the FTSE 100 index rose by 0.4% to 8,060.07.
The yield on 10-year German bonds edged lower to 2.36%, French bonds inched lower to 3.11%, the UK gilts edged higher to 4.52%, and Italian bonds decreased to 3.59%.
The euro edged lower to $1.05; the British pound inched down to $1.26; and the U.S. dollar strengthened to 89.04 Swiss cents.
Brent crude decreased $0.92 to $74.60 a barrel, and the Dutch TTF natural gas rose by €1.12 to €39.40 per MWh.
Europe Stock Movers
ASML Holding NV soared 5% to €660.0 after the advanced chip equipment maker lifted its sales outlook over the next five years despite sales in the current financial year.
CEO Christophe Fouquet that the company's technology is capable of scaling over the next five years to "leverage the artificial intelligence opportunity."
The company guided revenue between 44 billion and 60 billion and gross margin between 56% and 60% by 2030.
The current forecast implies that sales are likely to rise annually between 8% and 14% over the next five years.
Aviva plc gained 4.5% to 476.61 pence after the UK-based insurance company reported meaningful gains in its key business units in the third quarter.
Burberry Group jumped 18.5% to 867.20 pence after the company's recently appointed chief executive, Joshua Schulman, pledged to stabilize the business with a turnaround plan.
Premier Foods plc decreased 0.4% to 187.0 pence after the company reported higher sales and earnings in the first half amid rising demand for its food brands.
Alstom SA soared 7.9% to €21.22 after the French mobility company reported higher-than-expected cash in its interim results driven by rising sales volume and cost savings initiatives.
Thales SA declined 0.6% to €155.55 despite the defense contractor estimating higher sales and growth driven by expansion of its cyber security management systems.
Siemens AG advanced 6% to €190.20 after the engineering conglomerate reported higher-than-expected fiscal fourth quarter earnings, but the company lowered its sales outlook for fiscal 2025 amid rising geopolitical uncertainties.
Deutsche Telekom AG jumped 4% to €28.97 after the German telephone company reported better-than-expected third quarter profit and raised its full-year core profit estimate.
Banca Monte dei Paschi di Siena SpA rose 12% to €6.21 after the Italian government sold a 15% stake in the bank to rival Banco BPM.
Banco BPM gained 2.6% to €6.72.
- Bridgette Randall
- 14 Nov, 2024
- London
European markets advanced following positive earnings and corporate news from leading corporations in France, Germany, and Italy.
Moreover, market sentiment was bolstered after the third quarter's GDP growth in the eurozone was reaffirmed and the jobless rate edged up slightly in the third quarter.
Investors have been on edge after the U.S. election results amid rising worries of political and trade tensions between the U.S. and the eurozone over the next six months and growing uncertainty over the U.S. policy.
Moreover, the next U.S. administration is likely to shift the burden of NATO military spending to Europe and wind out war in Ukraine while cutting off aid and negotiating a quick settlement with Russia.
Eurozone Q3 GDP Growth Reaffirmed In Second Estimate
The eurozone's third quarter GDP growth accelerated to 0.4% sequentially after rising 0.2% in the second quarter, matching the flash estimate, according to a report released by Eurostat on Thursday.
On an annual basis, GDP growth accelerated to 0.9% from an annual rate of 0.6% in the second quarter, matching the preliminary estimate.
France's Jobless Rate Eased In The Third Quarter
France's jobless rate in the third quarter edged up to 7.4% from 7.3% in the second quarter, according to the data released by the French statistical agency, or INSEE.
The unemployed persons in the third quarter increased by 35,000 to 2.3 million, and the jobless rate among women edged lower by 0.2 basis points to 7.2% among women and increased by 0.3% to 7.6% among men.
The activity rate, which measures the number of people in the job market, increased by 0.3% to 74.8%.
The jobless rate among those between the ages of 25 and 49 decreased by 0.1% to 6.6%, and that between 18 and 24 increased by 1.8% to 19.7%.
Meanwhile, the jobless rate for people 50 years and older eased by 0.3% from the second quarter to 7.6%.
Europe Indexes and Yields
The DAX index increased by 1.1% to 19,217.99; the CAC-40 index rose by 1.0% to 7,285.61; and the FTSE 100 index rose by 0.4% to 8,060.07.
The yield on 10-year German bonds edged lower to 2.36%, French bonds inched lower to 3.11%, the UK gilts edged higher to 4.52%, and Italian bonds decreased to 3.59%.
The euro edged lower to $1.05; the British pound inched down to $1.26; and the U.S. dollar strengthened to 89.04 Swiss cents.
Brent crude decreased $0.92 to $74.60 a barrel, and the Dutch TTF natural gas rose by €1.12 to €39.40 per MWh.
Europe Stock Movers
ASML Holding NV soared 5% to €660.0 after the advanced chip equipment maker lifted its sales outlook over the next five years despite sales in the current financial year.
CEO Christophe Fouquet that the company's technology is capable of scaling over the next five years to "leverage the artificial intelligence opportunity."
The company guided revenue between 44 billion and 60 billion and gross margin between 56% and 60% by 2030.
The current forecast implies that sales are likely to rise annually between 8% and 14% over the next five years.
Aviva plc gained 4.5% to 476.61 pence after the UK-based insurance company reported meaningful gains in its key business units in the third quarter.
Burberry Group jumped 18.5% to 867.20 pence after the company's recently appointed chief executive, Joshua Schulman, pledged to stabilize the business with a turnaround plan.
Premier Foods plc decreased 0.4% to 187.0 pence after the company reported higher sales and earnings in the first half amid rising demand for its food brands.
Alstom SA soared 7.9% to €21.22 after the French mobility company reported higher-than-expected cash in its interim results driven by rising sales volume and cost savings initiatives.
Thales SA declined 0.6% to €155.55 despite the defense contractor estimating higher sales and growth driven by expansion of its cyber security management systems.
Siemens AG advanced 6% to €190.20 after the engineering conglomerate reported higher-than-expected fiscal fourth quarter earnings, but the company lowered its sales outlook for fiscal 2025 amid rising geopolitical uncertainties.
Deutsche Telekom AG jumped 4% to €28.97 after the German telephone company reported better-than-expected third quarter profit and raised its full-year core profit estimate.
Banca Monte dei Paschi di Siena SpA rose 12% to €6.21 after the Italian government sold a 15% stake in the bank to rival Banco BPM.
Banco BPM gained 2.6% to €6.72.
- Bridgette Randall
- 07 Nov, 2024
- London
European stock market indexes advanced as investors awaited the release of rate decisions from the Bank of England and the U.S. Federal Reserve.
Benchmark indexes in Paris, Milan, Frankfurt, and London advanced more than 1% as investors reviewed the latest batch of positive earnings.
German bond yields surged to 2.49% after the coalition government collapsed paving the way for snap election.
Chancellor Olaf Scholz sacked his finance minister Christian Lindner, ending the three-party coalition that relied on Lindner's pro-business party's support.
Lindner had rejected the spending increase proposed by Scholz's Social Democrats and environmental Green Party to finance investment and avoid cutting welfare spending.
Chancellor Scholz said he plans to seek vote of confidence on January 15 which could lead to early elections before March 15, ahead of the regular election in September 2025.
Germany's economy is expected to shrink for the second consecutive year in 2024 amid weak consumer demand and exports.
Germany's exports declined and imports rose in September from a year ago, shrinking its trade surplus, the Federal Statistical Office, or Destatis, said on Thursday.
Seasonally and calendar adjusted exports decreased 0.2% to €128.2 billion, imports increased 1.3% to €111.3 billion, resulting in the decline of trade surplus to €17.0 billion.
Exports to the member states of the European Union increased 1.8% to €69.4 billion, to the United States rose 4.8% to €14.2 billion, to China fell 3.7% to €7.1 billion, and to the U.K. decreased 4.9% to 6.4 billion.
Europe Indexes and Yields
The DAX index increased by 0.9% to 19,430.32; the CAC-40 index rose by 1.4% to 7,512.89; and the FTSE 100 index rose by 1.2% to 8,270.27.
The yield on 10-year German bonds edged higher to 2.49%, French bonds inched higher to 3.26%, the UK gilts advanced to 4.55%, and Italian bonds decreased to 3.82%.
The euro edged higher to $1.07; the British pound inched higher to $1.29; and the U.S. dollar weakened to 87.65 Swiss cents.
Brent crude decreased $0.52 to $74.40 a barrel, and the Dutch TTF natural gas rose by €0.25 to €40.92 per MWh.
Europe Stock Movers
- Li Chen
- 07 Nov, 2024
- Hong Kong
Benchmark indexes in China and Hong Kong rebounded from morning losses as investors looked forward to fiscal stimulus announcements from the top legislative body on Friday.
The Hang Seng index gained 1.3%, and the CSI 300 index advanced 1.9% after recovering from losses at the opening.
Market indexes were under pressure following the losses in Chinese stocks listed in New York after former U.S. president Donald Trump secured a return to the White House.
Trump had campaigned on imposing as much as 60% tariffs on Chinese goods and implementing additional restrictions on U.S. investments in China.
However, tariffs are likely to have little effect on Chinese companies, as most of the import duties are paid by U.S. consumers.
Only 10% of the listed companies in China and Hong Kong are dependent on exporting to the U.S., buffeting most companies from the hostile environment for the Chinese goods in the U.S. and the European Union.
Investors are looking forward to announcements from the standing committee of the People's National Congress on Friday, and economists are estimating that the lifting of the debt ceiling will provide between 2 trillion yuan ($281 billion) and 7 trillion yuan for fiscal stimulus measures.
China's Surging Exports Drive Trade Surplus Higher In October
China's exports in October rose 12.7% to $309.1 billion; imports decreased 2.3% to $213.3 billion as exporters frontloaded sales ahead of likely tariffs in the U.S. and Europe.
Exports advanced for the seventh month in a row and rose at the fastest pace since July 2022 as exports front loaded sales ahead of punitive tariffs in the U.S. and EU.
Exports to the U.S. increased 8.1%, shipments to the European Union advanced 12.7%, and the ASEAN region gained 15.8% compared with a year earlier.
Exports to Russia jumped 26.7% amid rising sales of passenger cars, appliances, and electronics products.
Trade surplus increased to $95.3 billion in October from $81.7 billion in the previous month and $56.1 billion a year earlier, driven by lower interest rates that contributed to the rising global demand.
Sales for the first ten months in 2024 increased 5.1% to $2.93 trillion, boosted by higher demand for passenger cars, semiconductors and related products, and household appliances.
Chinese exporters are bracing for as much as 60% tariffs in the U.S., which could drive down overall exports by more than 5% in 2025.
China Stock Movers
The Hang Seng index rose 1.3% to 20,800.13, and the CSI 300 index advanced 1.9% to 4,101.89.
Export-driven technology companies, appliance makers, electric vehicle makers, and travel and entertainment companies were in focus.
Midea Group declined 1.8% to HK $69.60, Haidilao International increased 8% to HK $17.72, ANTA Sports increased 3.6% to HK $88.90, and Galaxy Entertainment Group advanced 4.6% to HK $36.20.
BYD declined 2% to HK $277.20, Li Auto gained 1.4% to HK $97.0, and Xpeng Inc. gained 1.2% to HK $50.0.
- Li Chen
- 07 Nov, 2024
- Hong Kong
Benchmark indexes in China and Hong Kong rebounded from morning losses as investors looked forward to fiscal stimulus announcements from the top legislative body on Friday.
The Hang Seng index gained 1.3%, and the CSI 300 index advanced 1.9% after recovering from losses at the opening.
Market indexes were under pressure following the losses in Chinese stocks listed in New York after former U.S. president Donald Trump secured a return to the White House.
Trump had campaigned on imposing as much as 60% tariffs on Chinese goods and implementing additional restrictions on U.S. investments in China.
However, tariffs are likely to have little effect on Chinese companies, as most of the import duties are paid by U.S. consumers.
Only 10% of the listed companies in China and Hong Kong are dependent on exporting to the U.S., buffeting most companies from the hostile environment for the Chinese goods in the U.S. and the European Union.
Investors are looking forward to announcements from the standing committee of the People's National Congress on Friday, and economists are estimating that the lifting of the debt ceiling will provide between 2 trillion yuan ($281 billion) and 7 trillion yuan for fiscal stimulus measures.
China Stock Movers
The Hang Seng index rose 1.3% to 20,800.13, and the CSI 300 index advanced 1.9% to 4,101.89.
Export-driven technology companies, appliance makers, electric vehicle makers, and travel and entertainment companies were in focus.
Midea Group declined 1.8% to HK $69.60, Haidilao International increased 8% to HK $17.72, ANTA Sports increased 3.6% to HK $88.90, and Galaxy Entertainment Group advanced 4.6% to HK $36.20.
BYD declined 2% to HK $277.20, Li Auto gained 1.4% to HK $97.0, and Xpeng Inc. gained 1.2% to HK $50.0.
- Arun Goswami
- 07 Nov, 2024
- Mumbai
Stocks in Mumbai traded down and extended weekly losses after the latest batch of earnings fell short of market expectations.
The rupee traded at a new record low after the U.S. dollar rebounded following the results of the latest presidential and congressional elections.
The Sensex index decreased by 1.0% to 79,592.61, and the Nifty index dropped by 1.0% to 24,237.80.
On the Mumbai stock exchange, 134 stocks traded at their 52-week highs, and 10 stocks traded at their 52-week lows.
Apollo Hospital increased 6.5% to ₹7,421.0 after the company reported quarterly results.
Revenue in the September quarter increased to ₹5,590 crore from ₹4,850 crore, and net income advanced to ₹380 crore from ₹233 crore a year ago.
Kansai Nerolac Paints declined 2.1% to ₹279.65 after the company reported a decline in quarterly profit.
Revenue in the September quarter increased to ₹1,860 crore from ₹1,845 crore and net income declined to ₹130 crore from ₹180 crore a year ago.
Power Grid Corporation declined 1.3% to ₹314.30 after the power distribution company reported a decline in revenue and earnings in the September quarter.
Revenue in the September quarter decreased to ₹10,260 crore from ₹10,400 crore and net income declined to ₹3,700 crore from ₹3,800 crore a year ago.
The company declared an interim dividend of ₹4.50 per share.
Blue Star Ltd. declined 7.60% to ₹1,739.95 after the company reported weaker-than-expected revenue in the September quarter.
Revenue increased to ₹2,280 crore from ₹1,890 crore, and net income advanced to ₹96.2 crore from ₹70.7 crore a year ago.
Sonata Software declined 1.3% to ₹623.75 after the company reported a decline in profit in the September quarter.
Revenue increased to ₹2,170 crore from ₹1,913 crore, and net income declined ₹110 crore from ₹124 crore a year ago, respectively.
- Arun Goswami
- 07 Nov, 2024
- Mumbai
Stocks in Mumbai traded down and extended weekly losses after the latest batch of earnings fell short of market expectations.
The rupee traded at a new record low after the U.S. dollar rebounded following the results of the latest presidential and congressional elections.
The Sensex index decreased by 1.0% to 79,592.61, and the Nifty index dropped by 1.0% to 24,237.80.
On the Mumbai stock exchange, 134 stocks traded at their 52-week highs, and 10 stocks traded at their 52-week lows.
Apollo Hospital increased 6.5% to ₹7,421.0 after the company reported quarterly results.
Revenue in the September quarter increased to ₹5,590 crore from ₹4,850 crore, and net income advanced to ₹380 crore from ₹233 crore a year ago.
Kansai Nerolac Paints declined 2.1% to ₹279.65 after the company reported a decline in quarterly profit.
Revenue in the September quarter increased to ₹1,860 crore from ₹1,845 crore and net income declined to ₹130 crore from ₹180 crore a year ago.
Power Grid Corporation declined 1.3% to ₹314.30 after the power distribution company reported a decline in revenue and earnings in the September quarter.
Revenue in the September quarter decreased to ₹10,260 crore from ₹10,400 crore and net income declined to ₹3,700 crore from ₹3,800 crore a year ago.
The company declared an interim dividend of ₹4.50 per share.
Blue Star Ltd. declined 7.60% to ₹1,739.95 after the company reported weaker-than-expected revenue in the September quarter.
Revenue increased to ₹2,280 crore from ₹1,890 crore, and net income advanced to ₹96.2 crore from ₹70.7 crore a year ago.
Sonata Software declined 1.3% to ₹623.75 after the company reported a decline in profit in the September quarter.
Revenue increased to ₹2,170 crore from ₹1,913 crore, and net income declined ₹110 crore from ₹124 crore a year ago, respectively.
- Alexander Garcia
- 06 Nov, 2024
- Miami
Stock market indexes jumped amid a surge of investor enthusiasm following the presidential and congressional election results.
Former president Donald Trump's return to the White House and the U.S. Senate's control switching back to the Republicans raised hopes that the next administration will enact more business-friendly policies.
The S&P 500 index and the Nasdaq Composite advanced more than 2%, and the U.S. dollar advanced against all major currencies.
Former president Donald Trump defeated his democratic opponent Kamala Harris in a hotly contested presidential election as a Republican wave swept the nation and the congressional election.
Donald Trump is expected to secure 276 Electoral College votes, more than the minimum 270 needed to win the presidential election, including wins in key swing states of North Carolina, Pennsylvania, Georgia, and Wisconsin.
The control of the U.S. Senate also switched to the Republican Party, while the control of the House is still in question.
Companies seen as beneficiaries under the Trump presidency soared in Wall Street trading, and Trump supporter Elon Musk-led Tesla advanced as much as 13%.
Cryptocurrency-linked stocks also soared, and Bitcoin jumped to a record high of $75,000 in the hopes that the relaxed regulation could benefit the sector.
The U.S. dollar advanced against all major currencies on speculation that Trump's proposed tariffs against major trading partners, including China, the European Union, and Mexico, could boost the currency.
The 10-year Treasury yield jumped to 4.43% on the assumption that the proposed spending plan by Trump would reignite inflationary pressures and may force the Federal Reserve to keep higher interests for longer.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 2.1% to 5,904.53, the Nasdaq Composite rose 2.4% to 18,881.61, and the Russell 2000 index rose 4.9% to 2,371.95.
The yield on 2-year Treasury notes edged higher to 4.27%, 10-year Treasury notes inched higher to 4.45%, and 30-year Treasury bonds increased to 4.61%.
WTI crude oil decreased $0.03 to $71.98 a barrel, and natural gas prices edged up 8 cents to $2.76 a thermal unit.
Gold decreased by $82.94 to $2,662.29 an ounce, and silver declined by $1.60 to $31.05.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 105.12.
U.S. Stock Movers
Banks traded higher as investors speculated that the large and medium-sized banks are likely to benefit from Trump's economic policies.
JPMorgan Chase jumped 5.2% to $233.15, Wells Fargo advanced 8.4% to $69.44, Citigroup increased 7.2% to $68.59, and Regions Financial edged higher 7.2% to $25.31.
Discount retailers fell on the worry that the new administration would impose universal tariffs on all imported goods and 60% tariffs on imports from China.
Dollar Tree declined 2.2% to $65.30, Dollar General fell 1.2% to $80.58, and Five Below plunged 10.8% to $84.0.
Cryptocurrency-linked stocks soared after Bitcoin jumped to a record high of $75,000.
MicroStrategy Inc. soared 10% to $252.80, MARA Holding advanced 8.2% to $17.57, and Riot Platforms jumped 7.3% to $10.44.
Trump's Return to White House May Pose Multiple Challenges for the EU
European markets advanced and bond yields edged lower as investors reviewed the latest batch of earnings and economic releases.
Benchmark indexes in Paris, Milan, Frankfurt, and London advanced, and the former U.S. president Donald Trump was presumed to be the winner of the latest U.S. presidential election.
Trump's win may prove to be trickier for European businesses and politicians, as the new administration is likely to ramp up trade barriers and push European nations to pay a higher share of the NATO budget.
The Trump administration is also likely to impose new trade barriers with the European Union and demand member nations import more from the world's largest economy and lower persistent trade surpluses.
German Factory Orders Rebounded
Germany's factory orders rebounded at a faster-than-expected pace in September after demand for military vehicles, aircraft, ships, and trains soared 117.1%.
Automotive orders increased 2.9%, but the metal production and processing sector declined 10%, and mechanical engineering fell 3.6%.
Factory orders increased 4.2% from the previous month and advanced 1% from a year ago in September, following a downwardly revised 5.4% decrease in the previous month.
Excluding large orders, incoming orders rose 2.2% from the previous month.
Europe Indexes and Yields
The DAX index decreased by 1.1% to 19,039.31; the CAC-40 index declined by 0.5% to 7,369.61; and the FTSE 100 index fell by 0.1% to 8,166.68.
The yield on 10-year German bonds edged lower to 2.36%, French bonds inched lower to 3.11%, the UK gilts edged higher to 4.51%, and Italian bonds decreased to 3.62%.
The euro edged higher to $1.07; the British pound inched higher to $1.29; and the U.S. dollar weakened to 87.57 Swiss cents.
Brent crude decreased $0.21 to $75.32 a barrel, and the Dutch TTF natural gas rose by €0.33 to €40.70 per MWh.
Europe Stock Movers
Credit Agricole SA declined 5.7% to €13.49 after the French bank reported mixed quarterly results as record revenue in its investment banking unit overshadowed weakness in its retail business.
Puma SE dropped 5.7% to €40.0 after the German footwear company reported lower-than-expected sales in the third quarter.
BMW AG declined 6.8% to €67.66, and the German luxury automaker reported third quarter net income plunged 61%.
Siemens Healthineers rose 6.6% to €51.58 after the German media technology company reported financial results that matched investor expectations.
Marks & Spencer Group increased 4.4% to 400.70 pence after the UK-based retailer reported higher-than-expected profit in the first half.
Japan Indexes Extended 2-Day Gains and Large Business Sentiment Index Weakened
Stock market indexes in Tokyo advanced for the second day in a row as investors attempted to decipher possible impacts of Donald Trump's win in the U.S. presidential election.
The Nikkei 225 stock average soared 2.6% and the broader Topix index added 1.9% as investors reviewed the sentiment index among large businesses.
Donald Trump's administration is likely to impose higher tariffs on goods imported from Asia and China and also raise trade barriers that could negatively impact Japanese corporations.
Moreover, Japanese politicians may face demand from the Trump administration to bear a larger financial burden of security arrangements to defend the nation from aggression from China, Russia, or North Korea.
On the economic front, the Reuters Tankan sentiment index for Japan's manufacturers eased to +5 in November from +7 in October.
The sentiment weakened amid growing worries over the economic slowdown in China and rising domestic inflationary pressures.
Japan's service sector activity index was revised higher in October, indicating that the contraction was less severe than previously estimated.
Services PMI was revised to 49.7 in October from the preliminary estimate of 49.3, and the index declined for the first time since June amid renewed pressures on export orders.
The Bank of Japan's latest policy meeting minutes showed that most committee members were in agreement in continuing to raise rates, and inflation and economic conditions align with the central bank's goals.
However, most members preferred to raise rates gradually according to the minutes of the September 19-20 monetary policy meeting.
Japan Stock Movers: IHI Lifts Dividend, Mercari Sales Plunged
The Nikkei 225 Stock Average jumped 2.6% to 39,480.67, and the broader Topix index added 1.9% to 2,715.92.
Mercari Inc. plunged 16% to ¥1,824.0 after the e-commerce company reported weaker-than-expected quarterly results.
Revenue in the September quarter increased 1.5% to 44.9 billion yen from 44.3 billion yen, net income rose 7.9% to 3.04 billion yen from 2.8 billion yen, and diluted earnings per share rose to 17.44 yen from 16.54 a year ago.
The company estimated revenue in the fiscal year 2025 ending in June between 200 billion and 210 billion yen, an increase between 6.7% and 12.1%.
The company guided annual core operating profit between 22 billion and 25 billion yen, an increase between 16.6% and 32.5%.
IHI Corp. soared 19.1% to ¥9,280.0 after the heavy-duty engineering company reported its financial results and raised its dividend and profit outlook for the current year.
Consolidated revenue in the six months ended September rose 61.1% to 757.5 billion yen from 470.31 billion yen, net income swung to a profit of 40.9 billion from a loss of 135.6 billion yen, and diluted earnings per share were 259.69 yen compared to a loss of 909.25 yen.
The company estimated full-year revenue to increase 21% to 1.6 trillion yen, profit attributable to shareholders to rise to 85 billion yen, and basic earnings per share of 559.55 yen.
The company estimated the full-year dividend to increase to 120 yen from 100 yen in the previous year.
Hong Kong Stocks Drop 2% as Goods from China Face Higher Tariffs Under Trump Administration
Hong Kong Stocks Drop 2% as China Goods Face Higher Tariffs Under Trump Administration
Stock market indexes in China and Hong Kong traded volatile as the U.S. presidential election results rolled in.
The Hang Seng index dropped 2% and the mainland-focused CSI 300 index advanced a fraction as investors attempted to understand broad implications of the U.S. election results.
Vice President Kamala Harris is trailing in the key battleground states of Michigan, Wisconsin, and Pennsylvania, which could tip the election in favor of former president Donald Trump.
Regardless of who wins the White House and control of the U.S. Congress, China's exports are likely to face higher tariffs and additional trade barriers for goods shipped routed through Vietnam and Mexico.
The Hang Seng index has advanced 27% between the announcement of stimulus measures on September 11 and October 7, but the market index has lost about 9% since then.
The Standing Committee of the People's National Congress is set to approve raising the government debt ceiling, which will pave the way for the previously announced fiscal measures to support local government finances.
China Stock Movers
The Hang Seng index declined 2% to 20,588.66, and the CSI 300 index increased 0.2% to 4,051.35.
Tech stocks traded down in Hong Kong amid a broad selloff in Chinese stocks.
Alibaba Group declined 3.4% to HK $95.10, JD.com fell 3.9% to HK $152.50, and Tencent Holdings fell 1.7% to HK $420.40.
- Barry Adams
- 06 Nov, 2024
- Miami
Stock market indexes jumped amid a surge of investor enthusiasm following the presidential and congressional election results.
Former president Donald Trump's return to the White House and the U.S. Senate's control switching back to the Republicans raised hopes that the next administration will enact more business-friendly policies.
The S&P 500 index and the Nasdaq Composite advanced more than 2%, and the U.S. dollar advanced against all major currencies.
Former president Donald Trump defeated his democratic opponent Kamala Harris in a hotly contested presidential election as a Republican wave swept the nation and the congressional election.
Donald Trump is expected to secure 276 Electoral College votes, more than the minimum 270 needed to win the presidential election, including wins in key swing states of North Carolina, Pennsylvania, Georgia, and Wisconsin.
The control of the U.S. Senate also switched to the Republican Party, while the control of the House is still in question.
Companies seen as beneficiaries under the Trump presidency soared in Wall Street trading, and Trump supporter Elon Musk-led Tesla advanced as much as 13%.
Cryptocurrency-linked stocks also soared, and Bitcoin jumped to a record high of $75,000 in the hopes that the relaxed regulation could benefit the sector.
The U.S. dollar advanced against all major currencies on speculation that Trump's proposed tariffs against major trading partners, including China, the European Union, and Mexico, could boost the currency.
The 10-year Treasury yield jumped to 4.43% on the assumption that the proposed spending plan by Trump would reignite inflationary pressures and may force the Federal Reserve to keep higher interests for longer.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 2.1% to 5,904.53, the Nasdaq Composite rose 2.4% to 18,881.61, and the Russell 2000 index rose 4.9% to 2,371.95.
The yield on 2-year Treasury notes edged higher to 4.27%, 10-year Treasury notes inched higher to 4.45%, and 30-year Treasury bonds increased to 4.61%.
WTI crude oil decreased $0.03 to $71.98 a barrel, and natural gas prices edged up 8 cents to $2.76 a thermal unit.
Gold decreased by $82.94 to $2,662.29 an ounce, and silver declined by $1.60 to $31.05.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 105.12.
U.S. Stock Movers
Banks traded higher as investors speculated that the large and medium-sized banks are likely to benefit from Trump's economic policies.
JPMorgan Chase jumped 5.2% to $233.15, Wells Fargo advanced 8.4% to $69.44, Citigroup increased 7.2% to $68.59, and Regions Financial edged higher 7.2% to $25.31.
Discount retailers fell on the worry that the new administration would impose universal tariffs on all imported goods and 60% tariffs on imports from China.
Dollar Tree declined 2.2% to $65.30, Dollar General fell 1.2% to $80.58, and Five Below plunged 10.8% to $84.0.
Cryptocurrency-linked stocks soared after Bitcoin jumped to a record high of $75,000.
MicroStrategy Inc. soared 10% to $252.80, MARA Holding advanced 8.2% to $17.57, and Riot Platforms jumped 7.3% to $10.44.
Trump's Return to White House May Pose Multiple Challenges for the EU
European markets advanced and bond yields edged lower as investors reviewed the latest batch of earnings and economic releases.
Benchmark indexes in Paris, Milan, Frankfurt, and London advanced, and the former U.S. president Donald Trump was presumed to be the winner of the latest U.S. presidential election.
Trump's win may prove to be trickier for European businesses and politicians, as the new administration is likely to ramp up trade barriers and push European nations to pay a higher share of the NATO budget.
The Trump administration is also likely to impose new trade barriers with the European Union and demand member nations import more from the world's largest economy and lower persistent trade surpluses.
German Factory Orders Rebounded
Germany's factory orders rebounded at a faster-than-expected pace in September after demand for military vehicles, aircraft, ships, and trains soared 117.1%.
Automotive orders increased 2.9%, but the metal production and processing sector declined 10%, and mechanical engineering fell 3.6%.
Factory orders increased 4.2% from the previous month and advanced 1% from a year ago in September, following a downwardly revised 5.4% decrease in the previous month.
Excluding large orders, incoming orders rose 2.2% from the previous month.
Europe Indexes and Yields
The DAX index decreased by 1.1% to 19,039.31; the CAC-40 index declined by 0.5% to 7,369.61; and the FTSE 100 index fell by 0.1% to 8,166.68.
The yield on 10-year German bonds edged lower to 2.36%, French bonds inched lower to 3.11%, the UK gilts edged higher to 4.51%, and Italian bonds decreased to 3.62%.
The euro edged higher to $1.07; the British pound inched higher to $1.29; and the U.S. dollar weakened to 87.57 Swiss cents.
Brent crude decreased $0.21 to $75.32 a barrel, and the Dutch TTF natural gas rose by €0.33 to €40.70 per MWh.
Europe Stock Movers
Credit Agricole SA declined 5.7% to €13.49 after the French bank reported mixed quarterly results as record revenue in its investment banking unit overshadowed weakness in its retail business.
Puma SE dropped 5.7% to €40.0 after the German footwear company reported lower-than-expected sales in the third quarter.
BMW AG declined 6.8% to €67.66, and the German luxury automaker reported third quarter net income plunged 61%.
Siemens Healthineers rose 6.6% to €51.58 after the German media technology company reported financial results that matched investor expectations.
Marks & Spencer Group increased 4.4% to 400.70 pence after the UK-based retailer reported higher-than-expected profit in the first half.
Japan Indexes Extended 2-Day Gains and Large Business Sentiment Index Weakened
Stock market indexes in Tokyo advanced for the second day in a row as investors attempted to decipher possible impacts of Donald Trump's win in the U.S. presidential election.
The Nikkei 225 stock average soared 2.6% and the broader Topix index added 1.9% as investors reviewed the sentiment index among large businesses.
Donald Trump's administration is likely to impose higher tariffs on goods imported from Asia and China and also raise trade barriers that could negatively impact Japanese corporations.
Moreover, Japanese politicians may face demand from the Trump administration to bear a larger financial burden of security arrangements to defend the nation from aggression from China, Russia, or North Korea.
On the economic front, the Reuters Tankan sentiment index for Japan's manufacturers eased to +5 in November from +7 in October.
The sentiment weakened amid growing worries over the economic slowdown in China and rising domestic inflationary pressures.
Japan's service sector activity index was revised higher in October, indicating that the contraction was less severe than previously estimated.
Services PMI was revised to 49.7 in October from the preliminary estimate of 49.3, and the index declined for the first time since June amid renewed pressures on export orders.
The Bank of Japan's latest policy meeting minutes showed that most committee members were in agreement in continuing to raise rates, and inflation and economic conditions align with the central bank's goals.
However, most members preferred to raise rates gradually according to the minutes of the September 19-20 monetary policy meeting.
Japan Stock Movers: IHI Lifts Dividend, Mercari Sales Plunged
The Nikkei 225 Stock Average jumped 2.6% to 39,480.67, and the broader Topix index added 1.9% to 2,715.92.
Mercari Inc. plunged 16% to ¥1,824.0 after the e-commerce company reported weaker-than-expected quarterly results.
Revenue in the September quarter increased 1.5% to 44.9 billion yen from 44.3 billion yen, net income rose 7.9% to 3.04 billion yen from 2.8 billion yen, and diluted earnings per share rose to 17.44 yen from 16.54 a year ago.
The company estimated revenue in the fiscal year 2025 ending in June between 200 billion and 210 billion yen, an increase between 6.7% and 12.1%.
The company guided annual core operating profit between 22 billion and 25 billion yen, an increase between 16.6% and 32.5%.
IHI Corp. soared 19.1% to ¥9,280.0 after the heavy-duty engineering company reported its financial results and raised its dividend and profit outlook for the current year.
Consolidated revenue in the six months ended September rose 61.1% to 757.5 billion yen from 470.31 billion yen, net income swung to a profit of 40.9 billion from a loss of 135.6 billion yen, and diluted earnings per share were 259.69 yen compared to a loss of 909.25 yen.
The company estimated full-year revenue to increase 21% to 1.6 trillion yen, profit attributable to shareholders to rise to 85 billion yen, and basic earnings per share of 559.55 yen.
The company estimated the full-year dividend to increase to 120 yen from 100 yen in the previous year.
Hong Kong Stocks Drop 2% as Goods from China Face Higher Tariffs Under Trump Administration
Hong Kong Stocks Drop 2% as China Goods Face Higher Tariffs Under Trump Administration
Stock market indexes in China and Hong Kong traded volatile as the U.S. presidential election results rolled in.
The Hang Seng index dropped 2% and the mainland-focused CSI 300 index advanced a fraction as investors attempted to understand broad implications of the U.S. election results.
Vice President Kamala Harris is trailing in the key battleground states of Michigan, Wisconsin, and Pennsylvania, which could tip the election in favor of former president Donald Trump.
Regardless of who wins the White House and control of the U.S. Congress, China's exports are likely to face higher tariffs and additional trade barriers for goods shipped routed through Vietnam and Mexico.
The Hang Seng index has advanced 27% between the announcement of stimulus measures on September 11 and October 7, but the market index has lost about 9% since then.
The Standing Committee of the People's National Congress is set to approve raising the government debt ceiling, which will pave the way for the previously announced fiscal measures to support local government finances.
China Stock Movers
The Hang Seng index declined 2% to 20,588.66, and the CSI 300 index increased 0.2% to 4,051.35.
Tech stocks traded down in Hong Kong amid a broad selloff in Chinese stocks.
Alibaba Group declined 3.4% to HK $95.10, JD.com fell 3.9% to HK $152.50, and Tencent Holdings fell 1.7% to HK $420.40.
- Scott Peters
- 06 Nov, 2024
- New York City
Banks traded higher as investors speculated that the large and medium-sized banks are likely to benefit from Trump's economic policies.
JPMorgan Chase jumped 5.2% to $233.15, Wells Fargo advanced 8.4% to $69.44, Citigroup increased 7.2% to $68.59, and Regions Financial edged higher 7.2% to $25.31.
Discount retailers fell on the worry that the new administration would impose universal tariffs on all imported goods and 60% tariffs on imports from China.
Dollar Tree declined 2.2% to $65.30, Dollar General fell 1.2% to $80.58, and Five Below plunged 10.8% to $84.0.
Cryptocurrency-linked stocks soared after Bitcoin jumped to a record high of $75,000.
MicroStrategy Inc. soared 10% to $252.80, MARA Holding advanced 8.2% to $17.57, and Riot Platforms jumped 7.3% to $10.44.
CVS Health Corp. jumped 10.5% to $61.26 after the drug retailer reported mixed quarterly results.
Revenue in the third quarter increased 6.3% to $95.4 billion from $89.7 billion, net income plunged to $71 million from $2.3 billion, and diluted earnings per share declined to 7 cents from $1.75 a year ago.
During the third quarter, the company recorded restructuring charges of approximately $1.2 billion, comprised of a $607 million store impairment charge for additional retail pharmacy stores it plans to close in 2025, $293 million of costs associated with workforce, including severance and employee-related costs, and $269 million of other asset impairments and related charges associated with the discontinuation of certain non-core assets.
The company also withdrew its guidance, citing elevated medical costs in the remainder of the year.
- Scott Peters
- 06 Nov, 2024
- New York City
Banks traded higher as investors speculated that the large and medium-sized banks are likely to benefit from Trump's economic policies.
JPMorgan Chase jumped 5.2% to $233.15, Wells Fargo advanced 8.4% to $69.44, Citigroup increased 7.2% to $68.59, and Regions Financial edged higher 7.2% to $25.31.
Discount retailers fell on the worry that the new administration would impose universal tariffs on all imported goods and 60% tariffs on imports from China.
Dollar Tree declined 2.2% to $65.30, Dollar General fell 1.2% to $80.58, and Five Below plunged 10.8% to $84.0.
Cryptocurrency-linked stocks soared after Bitcoin jumped to a record high of $75,000.
MicroStrategy Inc. soared 10% to $252.80, MARA Holding advanced 8.2% to $17.57, and Riot Platforms jumped 7.3% to $10.44.
CVS Health Corp. jumped 10.5% to $61.26 after the drug retailer reported mixed quarterly results.
Revenue in the third quarter increased 6.3% to $95.4 billion from $89.7 billion, net income plunged to $71 million from $2.3 billion, and diluted earnings per share declined to 7 cents from $1.75 a year ago.
During the third quarter, the company recorded restructuring charges of approximately $1.2 billion, comprised of a $607 million store impairment charge for additional retail pharmacy stores it plans to close in 2025, $293 million of costs associated with workforce, including severance and employee-related costs, and $269 million of other asset impairments and related charges associated with the discontinuation of certain non-core assets.
The company also withdrew its guidance, citing elevated medical costs in the remainder of the year.