Nikkei 225 Halted 3-Day Rally, Household Spending Expanded In December but Fell In 2024

Stock market indexes in Tokyo trimmed weekly gains amid fears of a rate hike at the next policy meeting after household spending rose in December. 

The Nikkei 225 stock average and the TOPIX decreased 0.4% in Friday's trading, and they advanced about 0.5% in the week. 

Japan's household spending rose at a faster pace in December, increasing for the third month in a row amid rising food prices. 

Household spending in December advanced an annual 2.7% in December, the first increase in five months, driven by higher spending for vehicles boosted by winter bonuses.

Despite the jump in household spending in December, the average monthly spending in 2024 declined 1.1% after adjusting for inflation to 300,243 yen, or about $1,967.

The monthly survey of spending by households of two or more is released by the Ministry of Internal Affairs and Communications. 

Food spending, which accounts for the bulk of spending, declined 0.4%, the fifth annual fall in a row. Poor weather drove prices of rice to a record high.

Food expenses soared to 28.3% of total household spending and surged to the highest since record keeping began in 2000.

Spending for transportation and communications fell 4.1%, utilities declined 6.8%, but housing cost increases slowed to 15.8% from 18.7% in the previous month.

The latest household spending data supported the Bank of Japan's case for a virtuous cycle of rising prices and wages to support additional rate increases, and the yen strengthened to 151.78 against the U.S. dollar. 

Japan Indexes and Stock Movers 

The Nikkei 225 Stock Average declined 0.7% to 38,787.02, and the broader TOPIX fell 0.5% to 2,737.23.

Tokyo Electron Ltd. dropped 4.1% to ¥25,500.0 after the advanced semiconductor equipment company confirmed its expansion plans despite worries about intensifying competition and durability of industry growth. 

Konica Minolta declined 8% to ¥561.0, and the electronic goods maker said revenue increased but profit dropped in the nine-month period ending in December.

The medical imaging company said revenue increased 3.5% to 831.8 billion, net loss expanded to 13.2 billion yen from 4.4 billion yen, and diluted loss per share increased to 27.09 yen from 8.37 yen a year ago.

The company reiterated its full-year revenue increase estimate of 2.4% to 1.1 trillion yen and zero profit and earnings per share.

Tech Rally Powered Weekly Gains In China and Hong Kong Indexes

Stock market indexes in China and Hong Kong extended weekly gains following the sustained rally in tech stocks for the third day in a row. 

The Hang Seng index gained 0.4%, and the CSI index advanced nearly 1% as investors awaited clarity on previously announced stimulus measures. 

Tech stocks extended gains in the holiday-shortened week after investors returned from the weeklong Lunar New Year holidays. 

Chinese electronic products and systems makers are likely to be big winners from the availability of artificial intelligence technology and frameworks from DeepSeek. 

Mainland China investors bid up state-owned enterprises in the hopes that policymakers will announce additional measures to revive property market. 

China Indexes and Stock Movers

The Hang Seng index increased 0.4% to 20,967.80, and the mainland-focused CSI 300 index rose 0.9% to 3,876.08. 

Lenovo Group increased 5.7% to HK $12.16 in the hope that the personal computing equipment maker is likely to benefit from the availability of cheap artificial intelligence products from DeepSeek. 

Xiaomo Corp. advanced 4.5% to HK $41.90 after the company announced the release of a new smartphone and electric vehicle.

Electric vehicle makers advanced following a surge in tech stocks. 

Li Auto jumped 5.8% to HK $101.50, BYD gained 3.5% to HK $326.80, and Geely Automobile Holdings advanced 3.3% to HK $17.52.   

Tech Rally Powered Weekly Gains In China and Hong Kong Indexes

Stock market indexes in China and Hong Kong extended weekly gains following the sustained rally in tech stocks for the third day in a row. 

The Hang Seng index gained 0.4%, and the CSI index advanced nearly 1% as investors awaited clarity on previously announced stimulus measures. 

Tech stocks extended gains in the holiday-shortened week after investors returned from the weeklong Lunar New Year holidays. 

Chinese electronic products and systems makers are likely to be big winners from the availability of artificial intelligence technology and frameworks from DeepSeek. 

Mainland China investors bid up state-owned enterprises in the hopes that policymakers will announce additional measures to revive property market. 

China Indexes and Stock Movers

The Hang Seng index increased 0.4% to 20,967.80, and the mainland-focused CSI 300 index rose 0.9% to 3,876.08. 

Lenovo Group increased 5.7% to HK $12.16 in the hope that the personal computing equipment maker is likely to benefit from the availability of cheap artificial intelligence products from DeepSeek. 

Xiaomo Corp. advanced 4.5% to HK $41.90 after the company announced the release of a new smartphone and electric vehicle.

Electric vehicle makers advanced following a surge in tech stocks. 

Li Auto jumped 5.8% to HK $101.50, BYD gained 3.5% to HK $326.80, and Geely Automobile Holdings advanced 3.3% to HK $17.52.   

India Movers: Britannia, Bharti Airtel, Cochin Shipyard, Hero Motocorp, ITC, MRF, NCC, State Bank of India, Trent

Benchmark indexes in Mumbai trimmed weekly gains, and investors reviewed the latest earnings. 

The rupee hovered near a record low amid elevated trade tensions, interest rate path uncertainties, and persistent outflows of foreign funds.

The Sensex index decreased by 0.07% to 78,005.97, and the Nifty index declined by 0.09% to 23,582.05.

On the Mumbai stock exchange, 22 stocks traded at their 52-week highs, and 46 stocks traded at their 52-week lows.

Stock Movers 

Britannia Industries dropped 0.7% to ₹4,924.0, despite the food products maker reporting a nearly 5% increase in the December quarter.

LIC dropped 0.9% to ₹821.15 ahead of the life insurance company's quarterly results later in the day. 

Mahindra & Mahindra gained 3.2% to ₹3,187.15 ahead of the release of fiscal third quarter results amid expectations of higher unit sales in its tractor and passenger car divisions. 

Bharti Airtel Ltd. increased 4.7% to ₹1,696.15 after the wireless services provider reported a five-fold jump in its fiscal third quarter.

ITC Ltd. declined 1.8% to ₹433.0 after the diversified conglomerate reported a marginal increase in net income in the latest quarter.

Recent Earnings Movers 

State Bank of India decreased 1.2% to ₹743.35 despite the financial services company reporting a 67% jump in its earnings in the December quarter.

Consolidated revenue increased to ₹167,853.6 crore from ₹153,071.6 crore, after-tax profit rose to ₹19,175.4 crore from ₹11,282.7 crore, and diluted earnings per share advanced to ₹21.12 from ₹12.40 a year ago.

Trent Ltd. increased 0.7% to ₹5,310 after the parent company of Zudio and Star Bazaar reported a 33% surge from a year ago in the December quarter revenue.

Consolidated revenue in the December quarter advanced to ₹4,715.6 crore from ₹3,547 crore, net income increased to ₹496.5 crore from ₹370.6 crore, and diluted earnings per share rose to ₹13.99 from ₹10.53 a year ago. 

Bharti Airtel Limited jumped 4.4% to ₹1,690, and the telecommunications company reported a fivefold increase in earnings in the December quarter.

Consolidated revenue advanced to ₹45,599 crore from ₹38,339.3 crore, after-tax profit jumped to ₹16,134.6 crore from ₹2,876.4 crore, and diluted earnings per share rose to ₹24.65 from ₹4.17 a year ago.

Hero Motocorp Ltd. rose 0.7% to ₹4,258.25 after the two-wheeler maker reported a rise in revenue and net income in the December quarter.

Consolidated revenue advanced to ₹10,566.3 crore from ₹10,031.4 crore, net income increased to ₹1,108.3 crore from ₹1,091.1 crore, and diluted earnings per share rose to ₹55.31 from ₹54.59 a year ago.

ITC Ltd. fell 2.1% to ₹432 despite the diversified conglomerate reporting an 11% increase in the fiscal third quarter ending in December.

Consolidated revenue increased to ₹19,376.8 crore from ₹20,732.5 crore, after-tax profit rose to ₹5,638.3 crore from ₹5,078.4 crore, and diluted earnings per share advanced to ₹4.50 from ₹4.06 a year ago.

MRF Ltd. advanced 0.4% to ₹1,14,448.95 despite the tire maker reporting a 38% plunge in quarterly profit from a year ago.

Consolidated revenue in the December quarter increased to ₹7,098.9 crore from ₹6,240.1 crore, net income dropped to ₹315.5 crore from ₹509.7 crore, and diluted earnings per share fell to ₹743.80 from ₹1,201.81 a year ago.

Cochin Shipyard Ltd. decreased 3% to ₹1,370.95 after the shipbuilding & repair yard operator reported a 28% drop in profit in the December quarter from a year ago.

Consolidated revenue decreased to ₹1,194.4 crore from ₹1,244.3 crore, after-tax profit fell to ₹177 crore from ₹244.4 crore, and diluted earnings per share dropped to ₹6.73 from ₹9.29 a year ago.

NCC Limited dropped 12% to ₹209.20 after the infrastructure development company reported a slight increase in revenue and an 11% decline in profit in the December quarter.

Consolidated revenue increased to ₹5,382.9 crore from ₹5,247.8 crore, net income fell to ₹205 crore from ₹231 crore, and diluted earnings per share decreased to ₹3.08 from ₹3.51 a year ago.

India Movers: Britannia, Bharti Airtel, Cochin Shipyard, Hero Motocorp, ITC, MRF, NCC, State Bank of India, Trent

Benchmark indexes in Mumbai trimmed weekly gains, and investors reviewed the latest earnings. 

The rupee hovered near a record low amid elevated trade tensions, interest rate path uncertainties, and persistent outflows of foreign funds.

The Sensex index decreased by 0.07% to 78,005.97, and the Nifty index declined by 0.09% to 23,582.05.

On the Mumbai stock exchange, 22 stocks traded at their 52-week highs, and 46 stocks traded at their 52-week lows.

Stock Movers 

Britannia Industries dropped 0.7% to ₹4,924.0, despite the food products maker reporting a nearly 5% increase in the December quarter.

LIC dropped 0.9% to ₹821.15 ahead of the life insurance company's quarterly results later in the day. 

Mahindra & Mahindra gained 3.2% to ₹3,187.15 ahead of the release of fiscal third quarter results amid expectations of higher unit sales in its tractor and passenger car divisions. 

Bharti Airtel Ltd. increased 4.7% to ₹1,696.15 after the wireless services provider reported a five-fold jump in its fiscal third quarter.

ITC Ltd. declined 1.8% to ₹433.0 after the diversified conglomerate reported a marginal increase in net income in the latest quarter.

Recent Earnings Movers 

State Bank of India decreased 1.2% to ₹743.35 despite the financial services company reporting a 67% jump in its earnings in the December quarter.

Consolidated revenue increased to ₹167,853.6 crore from ₹153,071.6 crore, after-tax profit rose to ₹19,175.4 crore from ₹11,282.7 crore, and diluted earnings per share advanced to ₹21.12 from ₹12.40 a year ago.

Trent Ltd. increased 0.7% to ₹5,310 after the parent company of Zudio and Star Bazaar reported a 33% surge from a year ago in the December quarter revenue.

Consolidated revenue in the December quarter advanced to ₹4,715.6 crore from ₹3,547 crore, net income increased to ₹496.5 crore from ₹370.6 crore, and diluted earnings per share rose to ₹13.99 from ₹10.53 a year ago. 

Bharti Airtel Limited jumped 4.4% to ₹1,690, and the telecommunications company reported a fivefold increase in earnings in the December quarter.

Consolidated revenue advanced to ₹45,599 crore from ₹38,339.3 crore, after-tax profit jumped to ₹16,134.6 crore from ₹2,876.4 crore, and diluted earnings per share rose to ₹24.65 from ₹4.17 a year ago.

Hero Motocorp Ltd. rose 0.7% to ₹4,258.25 after the two-wheeler maker reported a rise in revenue and net income in the December quarter.

Consolidated revenue advanced to ₹10,566.3 crore from ₹10,031.4 crore, net income increased to ₹1,108.3 crore from ₹1,091.1 crore, and diluted earnings per share rose to ₹55.31 from ₹54.59 a year ago.

ITC Ltd. fell 2.1% to ₹432 despite the diversified conglomerate reporting an 11% increase in the fiscal third quarter ending in December.

Consolidated revenue increased to ₹19,376.8 crore from ₹20,732.5 crore, after-tax profit rose to ₹5,638.3 crore from ₹5,078.4 crore, and diluted earnings per share advanced to ₹4.50 from ₹4.06 a year ago.

MRF Ltd. advanced 0.4% to ₹1,14,448.95 despite the tire maker reporting a 38% plunge in quarterly profit from a year ago.

Consolidated revenue in the December quarter increased to ₹7,098.9 crore from ₹6,240.1 crore, net income dropped to ₹315.5 crore from ₹509.7 crore, and diluted earnings per share fell to ₹743.80 from ₹1,201.81 a year ago.

Cochin Shipyard Ltd. decreased 3% to ₹1,370.95 after the shipbuilding & repair yard operator reported a 28% drop in profit in the December quarter from a year ago.

Consolidated revenue decreased to ₹1,194.4 crore from ₹1,244.3 crore, after-tax profit fell to ₹177 crore from ₹244.4 crore, and diluted earnings per share dropped to ₹6.73 from ₹9.29 a year ago.

NCC Limited dropped 12% to ₹209.20 after the infrastructure development company reported a slight increase in revenue and an 11% decline in profit in the December quarter.

Consolidated revenue increased to ₹5,382.9 crore from ₹5,247.8 crore, net income fell to ₹205 crore from ₹231 crore, and diluted earnings per share decreased to ₹3.08 from ₹3.51 a year ago.

Positive Earnings Keep Market Rally Intact Across Atlantic, BoE Lowered Bank Rate

Wall Street indexes extended the rally to the third consecutive session, and investors overlooked tariff-caused trade tensions. 

The S&P 500 index edged up 0.2%, and the Nasdaq Composite advanced 0.3% as more than 70 companies released earnings since the closure of regular trading hours on Wednesday. 

Investors reacted to announcements from Ford Motor Company, Honeywell International, Qualcomm, Arm Holdings, Costco, T. Rowe Price, Cognizant, and Peloton. 

Despite the mild rebound, investor confidence is shaken in the incoming presidential administration after reversing several tariff measures announced just a week ago. 

The Trump administration appears to score political victories and force foreign governments to meet its demands using tariffs as a negotiating tool. 

However, Trump was forced to cave in and "delay" imposing tariffs on goods from Mexico and Canada with little to show in return. 

The U.S. Postal Service was also forced to halt processing inbound shipments from China and Hong Kong, only to suspend the block hours later. 

Moreover, higher tariffs on foreign goods are stoking inflation, forcing the Federal Reserve to hold higher rates for longer.

U.S. Stock Movers 

Arm Holdings PLC decreased 3.9% to $166.50 despite the advanced semiconductor chip designers reporting better-than-expected revenue and adjusted earnings in the fiscal third quarter. 

Qualcomm dropped 4.5% to $168.0 despite the advanced chipmaker reporting better-than-expected revenue and earnings in the fiscal first quarter. 

Ford Motor declined 5.5% to $9.47 after the passenger car and vehicle maker estimated a difficult 2025 amid rising tariffs on parts shipped from foreign locations. 

Honeywell International Inc. declined 3.5% to $215.49 after the automation company's revenue and earnings outlook fell short of some investors expectations. 

The company estimated fiscal year revenue between $39.6 billion and $40.6 billion and earnings per share between $10.10 and $10.50.

European Markets Hovered Near Record Highs

Stock market indexes across Europe advanced, and investors reviewed the latest batch of corporate results. 

Benchmark indexes in Frankfurt and London hovered near record highs amid optimism about earnings, despite a weak outlook for growth in economic activities and exports. 

Investors shifted their focus to corporate results and reviewed the latest earnings from 90 companies, including Volvo Cars, Arcelor Mittal, Siemens Healthineers, Societe Generale, ING, and Maersk.

World markets have experienced heightened volatility after the newly appointed U.S. presidential administration announced and then dropped the threat of tariffs on Mexico and Canada and made a U-turn on trade restrictions on China. 

The U.S. trade policy uncertainty weighed on the market sentiment, and investors are bracing for a possible list of trade restrictions and tariffs on goods shipped from the European Union.

Crude oil prices eased for the second day in a row amid a supply glut and a lack of demand growth, and gold hovered near record highs as investors feared Trump's tariff war would support higher inflation. 

BoE Lowered Rates and Retained Gradual Bias

The Bank of England lowered its benchmark rate by 25 basis points to 4.5%, and the central bank cut the rate for the third time since the rate-cutting campaign started in August last year.  

The central bank reiterated its goal of reducing rates gradually as the need to control stubborn service inflation outweighs the mounting economic growth worries. 

German Factory Orders Rebounded In December but Dropped In 2024

On the economic front, German factory orders rebounded 6.9% from the previous month in December, according to the latest data from Destatis, the federal statistical office. 

A 55% surge in transportation orders lifted the overall orders, and orders rebounded from a downwardly revised 5.2% decline in November.

For the full year 2024, seasonally adjusted factory orders decreased 3.0%.

Europe Indexes and Yields

The DAX index increased by 0.70% to 21,737.00, the CAC-40 index rose 0.69% to 7,946.14, and the FTSE 100 index advanced by 1.13% to 8,721.09. 

The yield on 10-year German bonds inched higher to 2.37%, French bonds increased to 3.09%, the UK gilts moved up to 4.60%, and Italian bonds edged higher to 3.45%.

The euro decreased to $1.04; the British pound was lower at $1.24; and the U.S. dollar was higher and traded at 90.51 Swiss cents.

Brent crude increased $0.47 to $75.08 a barrel, and the Dutch TTF natural gas was higher by €0.17 to €49.91 per MWh.

Europe Stock Movers 

A.P. Moeller Maersk soared 9.2% to DKK 11,885.0 after the Danish shipping company and port terminal operator reported better-than-expected fourth quarter results.

ArcelorMittal SA jumped 1.7% to €24.40 after the second-largest steel company's fourth quarter results surpassed market expectations. 

The losses in the quarter shrank to $390 million from $2.9 billion, and steel production advanced to 14 million tons from 13.7 million tons a year ago, respectively.

In the full year 2024, the company's net income advanced to $1.3 billion from $919 million a year ago.

Volvo Car AB dropped 9.2% to 21.50 krona after the vehicle maker reported a decrease in operating profit in the fourth quarter, and the company estimated turbulent 2025 amid market uncertainties. 

Siemens Healthineers AG jumped 5.3% to €57.16 after the German medical equipment company's fiscal first quarter sales surpassed market expectations.

In addition, the company reiterated its fiscal 2025 outlook. 

ING Groep NV declined 2.9% to €15.51 after the Dutch bank said annual total income in 2025 is likely to be flat compared to the previous year. 

Société Générale SA surged 9.2% to €33.79 after the French bank said fourth-quarter profit doubled on higher revenues.

Pernod Ricard SA advanced 2.7% to €104.90 despite the French wine and spirit maker lowering its outlook for the current fiscal year. 

Japan Rally Extends to Third Day

Stock market indexes in Tokyo advanced for the third day in a row, tracking gains in tech stocks on Wall Street. 

The Nikkei 225 stock average and the TOPIX advanced between 0.3% and 0.6% as investors shifted their attention away from tariff threats to corporate earnings. 

Investors reacted to the latest batch of earnings, including results from Toyota Motor, Renesas Electronics, Tokyo Electron, Nippon Electric Glass, Nomura Holdings, and Yamaha. 

In addition, Honda and Nissan were in focus amid reports that the two companies may walk away from the merger deal after Honda proposed to acquire Nissan and operate as one of its subsidiaries. 

Despite the recent gains in benchmark indexes, investors were cautious amid worries of possible new trade restrictions in the U.S., after the newly appointed presidential administration slapped additional 10% tariffs on goods shipped from China and Hong Kong. 

Japan Indexes and Stocks; Marubeni, Nippon Electric Glass, Renesas Electronics In Focus 

The Nikkei 225 Stock Average increased 0.6% to 39,066.53, and the TOPIX advanced 0.3% to 2,752.20. 

Honda Motor declined 4% to ¥1,440.0, and Nissan Motor jumped 7% to ¥415.10 after the two companies ended their merger talks, and

Honda instead proposed to acquire Nissan.

Renesas Electronics jumped 12.6% to ¥2,305.50 after the advanced semiconductor chipmaker reported full-year 2024 results. 

Consolidated revenue decreased 8.2% to 1.4 trillion yen, and profit plunged 35% to 219.4 billion yen from 337.3 billion yen.

This was mainly attributable to a decrease in revenue from the industrial, infrastructure, and IoT business driven by weakening demand, although revenue increase in the automotive business was driven by weakening yen and channel inventory expansion.

Nippon Electric Glass soared 9% to ¥3,702.0 after the company announced a stock repurchase plan. 

The company said it plans to acquire 7 million common shares, or 8.7% of total outstanding shares, for about 20 billion yen, between February 6 and December 23, 2025.

Marubeni Corp. increased 4% to ¥2,399.50, and the diversified conglomerate reported better-than-expected results in the fiscal third quarter ending in December. 

Revenue increased 9% to 1.83 trillion yen, and net income advanced 56% to 187.06 billion yen.

The company raised its estimate for annual dividends to 95 yen from 90 yen and the full-year net income estimate to 500 billion yen from the previous estimate of 480 billion yen.

The company announced a stock buyback program worth up to 30 billion yen or 30 million shares between February 6 and June 30.

U.S. Trade Policy Uncertainty Weighed On Market Sentiment In China

 Stock market indexes in China and Hong Kong rebounded, and investors remained cautious amid U.S. trade policy uncertainty.

The Hang Seng index increased 0.5%, and the CSI 300 index advanced 0.8%, and investors pinned their hopes that trade tensions between the U.S. and China will ease in the months ahead. 

Despite the loud rhetoric from the Trump administration and an increase in U.S. tariffs, China's exports have continued to rise over the last eight years, including in the first 4-year term of Donald Trump. 

However, markets are bracing for heightened volatility amid policy reversal and chaotic U.S. presidential administration. 

The U.S. Postal Service reversed its plans to halt processing goods shipped from China and Hong Kong only hours after implementing it. 

The move will avoid duty on Chinese goods worth less than $800 under the "de minimis" rule, which will continue the flow of cheap goods sourced from online markets operated by Chinese e-commerce companies.

Nearly half of all goods entering the U.S. and processed under the de minimis policy originated from China and Hong Kong, according to a U.S. Congressional Research Service report released in June 2023.

About $245 billion worth of Chinese goods were shipped annually to the U.S., and about 3 million packages arrive daily to the U.S. from China and Hong Kong, according to estimates from industry sources. 

Despite the removal of the temporary block on processing inbound shipments from China, tensions remained high, and investors are bracing for additional trade barriers for Chinese goods shipped via Mexico, Vietnam, and other third countries. 

China Indexes and Stock Movers 

The Hang Seng index advanced 0.5% to 20,700.30, and the CSI 300 index gained 0.8% to 3,825.81.

E-commerce companies were in focus after the U.S. Postal Service made a U-turn on processing inbound shipments from China and Hong Kong. 

Alibaba Group increased 0.2% to $97.75, Meituan decreased 0.2% to HK $149.20, JD.com added 0.3% to HK $157.0, and Tencent Holdings declined 0.3% to HK $416.80.

China Literature Ltd increased 8.1% to HK $29.15, and the Tencent-backed e-book seller extended this year's gains to 19%. 

Semiconductor stocks advanced in the hopes that Chinese companies will find a way around the U.S. sanctions to continue to improve their production capabilities.

Hua Hong Semiconductor advanced 5.2% to HK $26.55, and SMIC advanced 5.5% to HK $47.25.

Positive Earnings Keep Market Rally Intact Across Atlantic, BoE Lowered Bank Rate

Wall Street indexes extended the rally to the third consecutive session, and investors overlooked tariff-caused trade tensions. 

The S&P 500 index edged up 0.2%, and the Nasdaq Composite advanced 0.3% as more than 70 companies released earnings since the closure of regular trading hours on Wednesday. 

Investors reacted to announcements from Ford Motor Company, Honeywell International, Qualcomm, Arm Holdings, Costco, T. Rowe Price, Cognizant, and Peloton. 

Despite the mild rebound, investor confidence is shaken in the incoming presidential administration after reversing several tariff measures announced just a week ago. 

The Trump administration appears to score political victories and force foreign governments to meet its demands using tariffs as a negotiating tool. 

However, Trump was forced to cave in and "delay" imposing tariffs on goods from Mexico and Canada with little to show in return. 

The U.S. Postal Service was also forced to halt processing inbound shipments from China and Hong Kong, only to suspend the block hours later. 

Moreover, higher tariffs on foreign goods are stoking inflation, forcing the Federal Reserve to hold higher rates for longer.

U.S. Stock Movers 

Arm Holdings PLC decreased 3.9% to $166.50 despite the advanced semiconductor chip designers reporting better-than-expected revenue and adjusted earnings in the fiscal third quarter. 

Qualcomm dropped 4.5% to $168.0 despite the advanced chipmaker reporting better-than-expected revenue and earnings in the fiscal first quarter. 

Ford Motor declined 5.5% to $9.47 after the passenger car and vehicle maker estimated a difficult 2025 amid rising tariffs on parts shipped from foreign locations. 

Honeywell International Inc. declined 3.5% to $215.49 after the automation company's revenue and earnings outlook fell short of some investors expectations. 

The company estimated fiscal year revenue between $39.6 billion and $40.6 billion and earnings per share between $10.10 and $10.50.

European Markets Hovered Near Record Highs

Stock market indexes across Europe advanced, and investors reviewed the latest batch of corporate results. 

Benchmark indexes in Frankfurt and London hovered near record highs amid optimism about earnings, despite a weak outlook for growth in economic activities and exports. 

Investors shifted their focus to corporate results and reviewed the latest earnings from 90 companies, including Volvo Cars, Arcelor Mittal, Siemens Healthineers, Societe Generale, ING, and Maersk.

World markets have experienced heightened volatility after the newly appointed U.S. presidential administration announced and then dropped the threat of tariffs on Mexico and Canada and made a U-turn on trade restrictions on China. 

The U.S. trade policy uncertainty weighed on the market sentiment, and investors are bracing for a possible list of trade restrictions and tariffs on goods shipped from the European Union.

Crude oil prices eased for the second day in a row amid a supply glut and a lack of demand growth, and gold hovered near record highs as investors feared Trump's tariff war would support higher inflation. 

BoE Lowered Rates and Retained Gradual Bias

The Bank of England lowered its benchmark rate by 25 basis points to 4.5%, and the central bank cut the rate for the third time since the rate-cutting campaign started in August last year.  

The central bank reiterated its goal of reducing rates gradually as the need to control stubborn service inflation outweighs the mounting economic growth worries. 

German Factory Orders Rebounded In December but Dropped In 2024

On the economic front, German factory orders rebounded 6.9% from the previous month in December, according to the latest data from Destatis, the federal statistical office. 

A 55% surge in transportation orders lifted the overall orders, and orders rebounded from a downwardly revised 5.2% decline in November.

For the full year 2024, seasonally adjusted factory orders decreased 3.0%.

Europe Indexes and Yields

The DAX index increased by 0.70% to 21,737.00, the CAC-40 index rose 0.69% to 7,946.14, and the FTSE 100 index advanced by 1.13% to 8,721.09. 

The yield on 10-year German bonds inched higher to 2.37%, French bonds increased to 3.09%, the UK gilts moved up to 4.60%, and Italian bonds edged higher to 3.45%.

The euro decreased to $1.04; the British pound was lower at $1.24; and the U.S. dollar was higher and traded at 90.51 Swiss cents.

Brent crude increased $0.47 to $75.08 a barrel, and the Dutch TTF natural gas was higher by €0.17 to €49.91 per MWh.

Europe Stock Movers 

A.P. Moeller Maersk soared 9.2% to DKK 11,885.0 after the Danish shipping company and port terminal operator reported better-than-expected fourth quarter results.

ArcelorMittal SA jumped 1.7% to €24.40 after the second-largest steel company's fourth quarter results surpassed market expectations. 

The losses in the quarter shrank to $390 million from $2.9 billion, and steel production advanced to 14 million tons from 13.7 million tons a year ago, respectively.

In the full year 2024, the company's net income advanced to $1.3 billion from $919 million a year ago.

Volvo Car AB dropped 9.2% to 21.50 krona after the vehicle maker reported a decrease in operating profit in the fourth quarter, and the company estimated turbulent 2025 amid market uncertainties. 

Siemens Healthineers AG jumped 5.3% to €57.16 after the German medical equipment company's fiscal first quarter sales surpassed market expectations.

In addition, the company reiterated its fiscal 2025 outlook. 

ING Groep NV declined 2.9% to €15.51 after the Dutch bank said annual total income in 2025 is likely to be flat compared to the previous year. 

Société Générale SA surged 9.2% to €33.79 after the French bank said fourth-quarter profit doubled on higher revenues.

Pernod Ricard SA advanced 2.7% to €104.90 despite the French wine and spirit maker lowering its outlook for the current fiscal year. 

Japan Rally Extends to Third Day

Stock market indexes in Tokyo advanced for the third day in a row, tracking gains in tech stocks on Wall Street. 

The Nikkei 225 stock average and the TOPIX advanced between 0.3% and 0.6% as investors shifted their attention away from tariff threats to corporate earnings. 

Investors reacted to the latest batch of earnings, including results from Toyota Motor, Renesas Electronics, Tokyo Electron, Nippon Electric Glass, Nomura Holdings, and Yamaha. 

In addition, Honda and Nissan were in focus amid reports that the two companies may walk away from the merger deal after Honda proposed to acquire Nissan and operate as one of its subsidiaries. 

Despite the recent gains in benchmark indexes, investors were cautious amid worries of possible new trade restrictions in the U.S., after the newly appointed presidential administration slapped additional 10% tariffs on goods shipped from China and Hong Kong. 

Japan Indexes and Stocks; Marubeni, Nippon Electric Glass, Renesas Electronics In Focus 

The Nikkei 225 Stock Average increased 0.6% to 39,066.53, and the TOPIX advanced 0.3% to 2,752.20. 

Honda Motor declined 4% to ¥1,440.0, and Nissan Motor jumped 7% to ¥415.10 after the two companies ended their merger talks, and

Honda instead proposed to acquire Nissan.

Renesas Electronics jumped 12.6% to ¥2,305.50 after the advanced semiconductor chipmaker reported full-year 2024 results. 

Consolidated revenue decreased 8.2% to 1.4 trillion yen, and profit plunged 35% to 219.4 billion yen from 337.3 billion yen.

This was mainly attributable to a decrease in revenue from the industrial, infrastructure, and IoT business driven by weakening demand, although revenue increase in the automotive business was driven by weakening yen and channel inventory expansion.

Nippon Electric Glass soared 9% to ¥3,702.0 after the company announced a stock repurchase plan. 

The company said it plans to acquire 7 million common shares, or 8.7% of total outstanding shares, for about 20 billion yen, between February 6 and December 23, 2025.

Marubeni Corp. increased 4% to ¥2,399.50, and the diversified conglomerate reported better-than-expected results in the fiscal third quarter ending in December. 

Revenue increased 9% to 1.83 trillion yen, and net income advanced 56% to 187.06 billion yen.

The company raised its estimate for annual dividends to 95 yen from 90 yen and the full-year net income estimate to 500 billion yen from the previous estimate of 480 billion yen.

The company announced a stock buyback program worth up to 30 billion yen or 30 million shares between February 6 and June 30.

U.S. Trade Policy Uncertainty Weighed On Market Sentiment In China

 Stock market indexes in China and Hong Kong rebounded, and investors remained cautious amid U.S. trade policy uncertainty.

The Hang Seng index increased 0.5%, and the CSI 300 index advanced 0.8%, and investors pinned their hopes that trade tensions between the U.S. and China will ease in the months ahead. 

Despite the loud rhetoric from the Trump administration and an increase in U.S. tariffs, China's exports have continued to rise over the last eight years, including in the first 4-year term of Donald Trump. 

However, markets are bracing for heightened volatility amid policy reversal and chaotic U.S. presidential administration. 

The U.S. Postal Service reversed its plans to halt processing goods shipped from China and Hong Kong only hours after implementing it. 

The move will avoid duty on Chinese goods worth less than $800 under the "de minimis" rule, which will continue the flow of cheap goods sourced from online markets operated by Chinese e-commerce companies.

Nearly half of all goods entering the U.S. and processed under the de minimis policy originated from China and Hong Kong, according to a U.S. Congressional Research Service report released in June 2023.

About $245 billion worth of Chinese goods were shipped annually to the U.S., and about 3 million packages arrive daily to the U.S. from China and Hong Kong, according to estimates from industry sources. 

Despite the removal of the temporary block on processing inbound shipments from China, tensions remained high, and investors are bracing for additional trade barriers for Chinese goods shipped via Mexico, Vietnam, and other third countries. 

China Indexes and Stock Movers 

The Hang Seng index advanced 0.5% to 20,700.30, and the CSI 300 index gained 0.8% to 3,825.81.

E-commerce companies were in focus after the U.S. Postal Service made a U-turn on processing inbound shipments from China and Hong Kong. 

Alibaba Group increased 0.2% to $97.75, Meituan decreased 0.2% to HK $149.20, JD.com added 0.3% to HK $157.0, and Tencent Holdings declined 0.3% to HK $416.80.

China Literature Ltd increased 8.1% to HK $29.15, and the Tencent-backed e-book seller extended this year's gains to 19%. 

Semiconductor stocks advanced in the hopes that Chinese companies will find a way around the U.S. sanctions to continue to improve their production capabilities.

Hua Hong Semiconductor advanced 5.2% to HK $26.55, and SMIC advanced 5.5% to HK $47.25.

U.S. Movers: Cognizant, Costco, Toyota Motor, Yum Brands

Costco Wholesale Corp. gained 2.1% to $1,042.9 after the wholesale retailer reported strong January 2025 sales.

Net sales increased 9.2% to $19.51 billion from $17.87 billion a year ago.

Comparable sales in January jumped 7.5%, and e-commerce sales climbed 13.6% from a year earlier.

Excluding the changes in gasoline prices and foreign exchange, comparable sales increased 9.8%, and e-commerce sales jumped 15.2% year-over-year.

Yum! Brands Inc. gained 2.3% to $134.25 after the fast food chain reported rising Taco Bell, KFC, and Pizza Hut sales in the fourth quarter ending in December, but earnings declined.

Revenue surged 16% to $2.36 billion from $2.04 billion, net income fell 9% to $423 million from $463 million, and earnings per diluted share dropped 8% to $1.49 from $1.62 a year ago.

Same-store sales worldwide rose 1% in the fourth quarter ending in December, led by Taco Bell sales with a 5% increase, while Pizza Hut same-store sales declined 1%, and KFC remained flat.

The company swung to an operating profit of $2 million in the Habit Burger & Grill division, compared to a loss of $10 million a year ago.

Yum! The brand's board approved a 6% increase in the quarterly cash dividend to 71 cents from 67 cents per share, payable on March 7 to shareholders of record on February 21.

Toyota Motors Corp. gained 4.1% to $195.35 after the passenger car manufacturer posted improved sales for the nine-month period from April to December 2024, driven by higher demand for its hybrid electric vehicles.

Revenue in the period increased to ¥35.67 trillion from ¥34.02 trillion, and net income jumped to ¥4.1 trillion from ¥3.95 trillion a year ago.

Sales in Japan and North America decreased, but in Europe and Asia, they increased.

For the fiscal year ending on March 31, Toyota estimated revenues of ¥47 trillion, compared to its previous forecast of ¥46 trillion.

Net income is seen at ¥4.52 trillion, compared to the company’s previous forecast of ¥3.57 trillion.

Toyota estimated vehicle sales in 2025 to decline to 10.85 million from 11.09 million units last year.

The company proposed to repurchase up to 530 million shares for a maximum of ¥1.2 trillion from May 9, 2024 until April 30, 2025.

Cognizant Technology Solutions Corp dropped 1.9% to $82.01 after the IT consulting and outsourcing company reported lower-than-expected profit in the fourth quarter ending in December.

Revenue increased to $5.08 billion from $4.76 billion, net income declined to $546 million from $558 million, and earnings per diluted share fell to $1.10 from $1.11 a year ago.

Order bookings in the fourth quarter increased 11% from a year ago.

The company’s health sciences segment surged 10.4% to $1.54 billion, products and resources was up 11.3% to $1.29 billion, financial services jumped 2.8% to $1.43 billion, and communications, media, and technology was up 0.4% to $811 million.

Sales in North America jumped 3.1%, while U.K. sales were down 5.1%.

For the current quarter, the company estimated revenue growth of 6.5% to 8% in the range of $5.0 billion to $5.1 billion in constant currency.

Full-year 2025 revenue is expected to increase by 3.5% to 6% from $20.3 billion to $20.8 billion, and earnings per share are expected to be between $4.90 and $5.06.

Cognizant repurchased 1.8 million shares for $140 million during the fourth quarter, and as of December 31, there was $1.2 billion remaining under its share repurchase authorization.

The company proposed a quarterly cash dividend increase of 3% to 31 cents per share, payable on February 26 to shareholders of record on February 18.

U.S. Movers: Cognizant, Costco, Toyota Motor, Yum Brands

Wall Street Indexes Extended Rally to Third Day Amid Trump Tariff Chaos

Wall Street indexes extended the rally to the third consecutive session, and investors overlooked tariff-caused trade tensions. 

The S&P 500 index edged up 0.1%, and the Nasdaq Composite advanced 0.2% as more than 70 companies released quarterly results since the closure of regular trading hours on Wednesday. 

Investors reacted to announcements from Ford Motor Company, Honeywell International, Qualcomm, Arm Holdings, Costco, T. Rowe Price, Cognizant, and Peloton. 

Despite the mild rebound, investor confidence is shaken in the incoming presidential administration after reversing several tariff measures announced just a week ago. 

The Trump administration appears to score political victories and force foreign governments to meet its demands using tariffs as a negotiating tool. 

However, Trump was forced to cave in and "delay" imposing tariffs on goods from Mexico and Canada with little to show in return. 

The U.S. Postal Service was also forced to halt processing inbound shipments from China and Hong Kong, only to suspend the block hours later. 

Moreover, higher tariffs on foreign goods are stoking inflation, forcing the Federal Reserve to hold higher rates for longer.

U.S. Stock Movers 

Arm Holdings PLC decreased 3.9% to $166.50 despite the advanced semiconductor chip designers reporting better-than-expected revenue and adjusted earnings in the fiscal third quarter. 

Qualcomm dropped 4.5% to $168.0 despite the advanced chipmaker reporting better-than-expected revenue and earnings in the fiscal first quarter. 

Ford Motor declined 5.5% to $9.47 after the passenger car and vehicle maker estimated a difficult 2025 amid rising tariffs on parts shipped from foreign locations. 

Honeywell International Inc. declined 3.5% to $215.49 after the automation company's revenue and earnings outlook fell short of some investors expectations. 

The company estimated fiscal year revenue between $39.6 billion and $40.6 billion and earnings per share between $10.10 and $10.50.

Wall Street Indexes Extended Rally to Third Day Amid Trump Tariff Chaos

Wall Street indexes extended the rally to the third consecutive session, and investors overlooked tariff-caused trade tensions. 

The S&P 500 index edged up 0.1%, and the Nasdaq Composite advanced 0.2% as more than 70 companies released since the closure of regular trading hours on Wednesday. 

Investors reacted to announcements from Ford Motor Company, Honeywell International, Qualcomm, Arm Holdings, Costco, T. Rowe Price, Cognizant, and Peloton. 

Despite the mild rebound, investor confidence is shaken in the incoming presidential administration after reversing several tariff measures announced just a week ago. 

The Trump administration appears to score political victories and force foreign governments to meet its demands using tariffs as a negotiating tool. 

However, Trump was forced to cave in and "delay" imposing tariffs on goods from Mexico and Canada with little to show in return. 

The U.S. Postal Service was also forced to halt processing inbound shipments from China and Hong Kong, only to suspend the block hours later. 

Moreover, higher tariffs on foreign goods are stoking inflation, forcing the Federal Reserve to hold higher rates for longer.

U.S. Stock Movers 

Arm Holdings PLC decreased 3.9% to $166.50 despite the advanced semiconductor chip designers reporting better-than-expected revenue and adjusted earnings in the fiscal third quarter. 

Qualcomm dropped 4.5% to $168.0 despite the advanced chipmaker reporting better-than-expected revenue and earnings in the fiscal first quarter. 

Ford Motor declined 5.5% to $9.47 after the passenger car and vehicle maker estimated a difficult 2025 amid rising tariffs on parts shipped from foreign locations. 

Honeywell International Inc. declined 3.5% to $215.49 after the automation company's revenue and earnings outlook fell short of some investors expectations. 

The company estimated fiscal year revenue between $39.6 billion and $40.6 billion and earnings per share between $10.10 and $10.50.

Europe Movers: Amundi, Assa Abloy, L'Oreal, Novo Nordisk, Siemens Healhineers, Vestas

European markets advanced after investors shifted their focus to a fresh batch of earnings. German factory orders rebounded in December, driven by a surge in volatile transportation orders. 

The DAX index increased by 0.70% to 21,737.00, the CAC-40 index rose 0.69% to 7,946.14, and the FTSE 100 index advanced by 1.13% to 8,721.09. 

The yield on 10-year German bonds inched higher to 2.37%, French bonds increased to 3.09%, the UK gilts moved up to 4.60%, and Italian bonds edged higher to 3.45%.

Recent Earnings Movers

Amundi gained 0.3% to €67.35 after the French asset management company beat fourth-quarter expectations on strong net flows and revenue growth.

Revenue increased 14.6% to €924 million from €806 million, net income climbed 17% to €349 million from €299 million, and earnings per share rose 16.7% to €1.70 from €1.46 a year ago.

The company proposed a dividend of €4.25 per share to the annual meeting on March 27, with ex-dividend date on June 10, and payments to begin on June 12.

Vestas Wind Systems A/S surged 8.4% to 109.50 Danish krone after the wind turbine maker reported strong power solutions and services revenues in the fiscal year 2024.

Total revenue increased to €17.29 billion from €15.38 billion, profit surged to €494 million from €78 million, and earnings per diluted share rose to 49 cents from 8 cent a year ago.

Vestas received government grants of €130 million, compared to €56 million last year.

For fiscal 2025, the company estimated revenue of €18 billion to €20 billion, with an EBIT margin before special items of 4% to 7%.

The service segment is expected to grow to €700 million, and the company plans investments of €1.2 billon in 2025.

Vestas proposed a dividend of €75 million, or 7 cents per share (0.55 Danish krone), and also recommended a share buyback of €100 million.

Assa Abloy dropped 1.2% to 329.50 krona despite the Swedish verification systems provider reporting growth in its fourth quarter ending in December.

Revenue increased to SEK 39.57 billion from SEK 36.97 billion, net income jumped to SEK 4.25 billion from SEK 3.98 billion, and earnings per share rose to SEK 3.81 from SEK 3.56 a year ago.

The company’s board proposed a dividend of SEK 5.90 per share, up from SEK 5.40 a year ago, to be distributed in two equal installments.

After the approval by shareholders, the first payment is expected on April 30, and the second payment on November 14.

Novo Nordisk A/S surged 4.5% to 619.50 Danish krone after the pharmaceutical company beat fiscal 2024 profit expectations.

Revenue jumped 25% to DKK 290.4 billion from DKK 232.3 billion, net profit surged 21% to DKK 100.99 billion from DKK 83.68 billion, and earnings per diluted share rose 22% to DKK 22.63 from DKK 18.62 a year ago.

For fiscal 2025, the company estimated sales growth in constant currencies of 19% to 27%, operating profit to increase between 19% and 27%, free cash glow between DKK 75 billion and 85 billion, and a net loss of DKK 9 billion.

Since February 2024, Novo Nordisk repurchased B shares at DKK 806.37 per B share, for DKK 20 billion.

Arm Holdings Plc plunged 5.4% to €157 after the British advanced chip technologies provider narrowed its full-year forecast.

Revenue in the third quarter of 2025 increased to $983 million from $824 million, net income surged to $252 million from $87 million, and earnings per diluted share rose to 24 cents from 8 cents a year ago.

For the current fiscal fourth quarter, Arm forecast revenue between $1.18 billion and $1.28 billion, with a midpoint of $1.23 billion.

For the full year, Arm narrowed its revenue guidance to a range of $3.94 billion to $4.04 billion from a previous estimate for $3.8 billion to $4.1 billion.

L’Oréal gained 0.2% to €346.40 after the Paris-based cosmetics company agreed to sell approximately 29.6 million of Sanofi shares to Sanofi for €101.5 per share, for a total of €3 billion.

Upon completion of the transaction and cancellation of the repurchased shares, L’Oréal will own 7.2% of Sanofi’s share capital and 13.1% of its voting rights.

Siemens Healthineers AG surged 5.7% to €57.40 after the German medical technology company reported higher-than-expected sales in its first quarter ending in December, despite order delays from China.

Revenue increased 5.9% to €5.48 billion from €5.18 billion, net income jumped 11% to €478 million from €432 million, and basic earnings per share rose 10% to 42 cents from 39 cents a year ago.

In the EMEA, Asia Pacific and Japan regions, revenue rose strongly on a comparable basis, while in the Americas region, sales fell slightly, and in China, sales declined by a mid-single-digit percentage.

Sales in the company’s diagnostics segment rose 1.6% in the first quarter to €1.1 billion, in the Varian segment they were up 6.2% to €1.0 billion, and in the advanced therapies division revenue rose 5.1% to €499 million.

In the imaging segment, adjusted external revenue increased to €2.90 billion from €2.69 billion a year ago.

For fiscal year 2025, the company estimated comparable revenue growth of 5% to 6% year-over-year, and adjusted basic earnings per share of between €2.35 and €2.50.

Europe Movers: Amundi, Assa Abloy, L'Oreal, Novo Nordisk, Siemens Healhineers, Vestas

European markets advanced after investors shifted their focus to a fresh batch of earnings. German factory orders rebounded in December, driven by a surge in volatile transportation orders. 

The DAX index increased by 0.70% to 21,737.00, the CAC-40 index rose 0.69% to 7,946.14, and the FTSE 100 index advanced by 1.13% to 8,721.09. 

The yield on 10-year German bonds inched higher to 2.37%, French bonds increased to 3.09%, the UK gilts moved up to 4.60%, and Italian bonds edged higher to 3.45%.

Recent Earnings Movers

Amundi gained 0.3% to €67.35 after the French asset management company beat fourth-quarter expectations on strong net flows and revenue growth.

Revenue increased 14.6% to €924 million from €806 million, net income climbed 17% to €349 million from €299 million, and earnings per share rose 16.7% to €1.70 from €1.46 a year ago.

The company proposed a dividend of €4.25 per share to the annual meeting on March 27, with ex-dividend date on June 10, and payments to begin on June 12.

Vestas Wind Systems A/S surged 8.4% to 109.50 Danish krone after the wind turbine maker reported strong power solutions and services revenues in the fiscal year 2024.

Total revenue increased to €17.29 billion from €15.38 billion, profit surged to €494 million from €78 million, and earnings per diluted share rose to 49 cents from 8 cent a year ago.

Vestas received government grants of €130 million, compared to €56 million last year.

For fiscal 2025, the company estimated revenue of €18 billion to €20 billion, with an EBIT margin before special items of 4% to 7%.

The service segment is expected to grow to €700 million, and the company plans investments of €1.2 billon in 2025.

Vestas proposed a dividend of €75 million, or 7 cents per share (0.55 Danish krone), and also recommended a share buyback of €100 million.

Assa Abloy dropped 1.2% to 329.50 krona despite the Swedish verification systems provider reporting growth in its fourth quarter ending in December.

Revenue increased to SEK 39.57 billion from SEK 36.97 billion, net income jumped to SEK 4.25 billion from SEK 3.98 billion, and earnings per share rose to SEK 3.81 from SEK 3.56 a year ago.

The company’s board proposed a dividend of SEK 5.90 per share, up from SEK 5.40 a year ago, to be distributed in two equal installments.

After the approval by shareholders, the first payment is expected on April 30, and the second payment on November 14.

Novo Nordisk A/S surged 4.5% to 619.50 Danish krone after the pharmaceutical company beat fiscal 2024 profit expectations.

Revenue jumped 25% to DKK 290.4 billion from DKK 232.3 billion, net profit surged 21% to DKK 100.99 billion from DKK 83.68 billion, and earnings per diluted share rose 22% to DKK 22.63 from DKK 18.62 a year ago.

For fiscal 2025, the company estimated sales growth in constant currencies of 19% to 27%, and a loss of DKK 9 billion.

Since February 2024, Novo Nordisk repurchased B shares at DKK 806.37 per B share, for DKK 20 billion.

Arm Holdings Plc plunged 5.4% to €157 after the British advanced chip technologies provider narrowed its full-year forecast.

Revenue in the third quarter of 2025 increased to $983 million from $824 million, net income surged to $252 million from $87 million, and earnings per diluted share rose to 24 cents from 8 cents a year ago.

For the current fiscal fourth quarter, Arm forecast revenue between $1.18 billion and $1.28 billion, with a midpoint of $1.23 billion.

For the full year, Arm narrowed its revenue guidance to a range of $3.94 billion to $4.04 billion from a previous estimate for $3.8 billion to $4.1 billion.

L’Oréal gained 0.2% to €346.40 after the Paris-based cosmetics company agreed to sell approximately 29.6 million of Sanofi shares to Sanofi for €101.5 per share, for a total of €3 billion.

Upon completion of the transaction and cancellation of the repurchased shares, L’Oréal will own 7.2% of Sanofi’s share capital and 13.1% of its voting rights.

Siemens Healthineers AG surged 5.7% to €57.40 after the German medical technology company reported higher-than-expected sales in its first quarter ending in December, despite order delays from China.

Revenue increased 5.9% to €5.48 billion from €5.18 billion, net income jumped 11% to €478 million from €432 million, and basic earnings per share rose 10% to 42 cents from 39 cents a year ago.

In the EMEA, Asia Pacific and Japan regions, revenue rose strongly on a comparable basis, while in the Americas region, sales fell slightly, and in China, sales declined by a mid-single-digit percentage.

Sales in the company’s diagnostics segment rose 1.6% in the first quarter to €1.1 billion, in the Varian segment they were up 6.2% to €1.0 billion, and in the advanced therapies division revenue rose 5.1% to €499 million.

In the imaging segment, adjusted external revenue increased to €2.90 billion from €2.69 billion a year ago.

For fiscal year 2025, the company estimated comparable revenue growth of 5% to 6% year-over-year, and adjusted basic earnings per share of between €2.35 and €2.50.

European Markets Hovered Near Record Highs, German Factory Orders Rebounded

Stock market indexes across Europe advanced, and investors reviewed the latest batch of corporate results. 

Benchmark indexes in Frankfurt and London hovered near record highs amid optimism about earnings, despite a weak outlook for growth in economic activities and exports. 

Investors shifted their focus to corporate results and reviewed the latest earnings from 90 companies, including Volvo Cars, Arcelor Mittal, Siemens Healthineers, Societe Generale, ING, and Maersk.

World markets have experienced heightened volatility after the newly appointed U.S. presidential administration announced and then dropped the threat of tariffs on Mexico and Canada and made a U-turn on trade restrictions on China. 

The U.S. trade policy uncertainty weighed on the market sentiment, and investors are bracing for a possible list of trade restrictions and tariffs on goods shipped from the European Union.

Crude oil prices eased for the second day in a row amid a supply glut and a lack of demand growth, and gold hovered near record highs as investors feared Trump's tariff war would support higher inflation. 

On the economic front, German factory orders rebounded 6.9% from the previous month in December, according to the latest data from Destatis, the federal statistical office. 

A 55% surge in transportation orders lifted the overall orders, and orders rebounded from a downwardly revised 5.2% decline in November.

For the full year 2024, seasonally adjusted factory orders decreased 3.0%.

Europe Indexes and Yields

The DAX index increased by 0.70% to 21,737.00, the CAC-40 index rose 0.69% to 7,946.14, and the FTSE 100 index advanced by 1.13% to 8,721.09. 

The yield on 10-year German bonds inched higher to 2.37%, French bonds increased to 3.09%, the UK gilts moved up to 4.60%, and Italian bonds edged higher to 3.45%.

The euro decreased to $1.04; the British pound was lower at $1.24; and the U.S. dollar was higher and traded at 90.51 Swiss cents.

Brent crude increased $0.47 to $75.08 a barrel, and the Dutch TTF natural gas was higher by €0.17 to €49.91 per MWh.

Europe Stock Movers 

A.P. Moeller Maersk soared 9.2% to DKK 11,885.0 after the Danish shipping company and port terminal operator reported better-than-expected fourth quarter results.

ArcelorMittal SA jumped 1.7% to €24.40 after the second-largest steel company's fourth quarter results surpassed market expectations. 

The losses in the quarter shrank to $390 million from $2.9 billion, and steel production advanced to 14 million tons from 13.7 million tons a year ago, respectively.

In the full year 2024, the company's net income advanced to $1.3 billion from $919 million a year ago.

Volvo Car AB dropped 9.2% to 21.50 krona after the vehicle maker reported a decrease in operating profit in the fourth quarter, and the company estimated turbulent 2025 amid market uncertainties. 

Siemens Healthineers AG jumped 5.3% to €57.16 after the German medical equipment company's fiscal first quarter sales surpassed market expectations.

In addition, the company reiterated its fiscal 2025 outlook. 

ING Groep NV declined 2.9% to €15.51 after the Dutch bank said annual total income in 2025 is likely to be flat compared to the previous year. 

Société Générale SA surged 9.2% to €33.79 after the French bank said fourth-quarter profit doubled on higher revenues.

Pernod Ricard SA advanced 2.7% to €104.90 despite the French wine and spirit maker lowering its outlook for the current fiscal year. 

European Markets Hovered Near Record Highs, German Factory Orders Rebounded

Stock market indexes across Europe advanced, and investors reviewed the latest batch of corporate results. 

Benchmark indexes in Frankfurt and London hovered near record highs amid optimism about earnings, despite a weak outlook for growth in economic activities and exports. 

Investors shifted their focus to corporate results and reviewed the latest earnings from 90 companies, including Volvo Cars, Arcelor Mittal, Siemens Healthineers, Societe Generale, ING, and Maersk.

World markets have experienced heightened volatility after the newly appointed U.S. presidential administration announced and then dropped the threat of tariffs on Mexico and Canada and made a U-turn on trade restrictions on China. 

The U.S. trade policy uncertainty weighed on the market sentiment, and investors are bracing for a possible list of trade restrictions and tariffs on goods shipped from the European Union.

Crude oil prices eased for the second day in a row amid a supply glut and a lack of demand growth, and gold hovered near record highs as investors feared Trump's tariff war would support higher inflation. 

On the economic front, German factory orders rebounded 6.9% from the previous month in December, according to the latest data from Destatis, the federal statistical office. 

A 55% surge in transportation orders lifted the overall orders, and orders rebounded from a downwardly revised 5.2% decline in November.

For the full year 2024, seasonally adjusted factory orders decreased 3.0%.

Europe Indexes and Yields

The DAX index increased by 0.70% to 21,737.00, the CAC-40 index rose 0.69% to 7,946.14, and the FTSE 100 index advanced by 1.13% to 8,721.09. 

The yield on 10-year German bonds inched higher to 2.37%, French bonds increased to 3.09%, the UK gilts moved up to 4.60%, and Italian bonds edged higher to 3.45%.

The euro decreased to $1.04; the British pound was lower at $1.24; and the U.S. dollar was higher and traded at 90.51 Swiss cents.

Brent crude increased $0.47 to $75.08 a barrel, and the Dutch TTF natural gas was higher by €0.17 to €49.91 per MWh.

Europe Stock Movers 

A.P. Moeller Maersk soared 9.2% to DKK 11,885.0 after the Danish shipping company and port terminal operator reported better-than-expected fourth quarter results.

ArcelorMittal SA jumped 1.7% to €24.40 after the second-largest steel company's fourth quarter results surpassed market expectations. 

The losses in the quarter shrank to $390 million from $2.9 billion, and steel production advanced to 14 million tons from 13.7 million tons a year ago, respectively.

In the full year 2024, the company's net income advanced to $1.3 billion from $919 million a year ago.

Volvo Car AB dropped 9.2% to 21.50 krona after the vehicle maker reported a decrease in operating profit in the fourth quarter, and the company estimated turbulent 2025 amid market uncertainties. 

Siemens Healthineers AG jumped 5.3% to €57.16 after the German medical equipment company's fiscal first quarter sales surpassed market expectations.

In addition, the company reiterated its fiscal 2025 outlook. 

ING Groep NV declined 2.9% to €15.51 after the Dutch bank said annual total income in 2025 is likely to be flat compared to the previous year. 

Société Générale SA surged 9.2% to €33.79 after the French bank said fourth-quarter profit doubled on higher revenues.

Pernod Ricard SA advanced 2.7% to €104.90 despite the French wine and spirit maker lowering its outlook for the current fiscal year.