Producer price index increased 0.5% in April from the previous month and rose 2.2% from a year ago, the U.S. Bureau of Labor Statistics reported Tuesday. 

Nearly three quarter of increase in producer price inflation is linked to the increase in final demand for services.  

Goods costs rose 0.4% after falling 0.2% in March, and service prices increased 0.6% from the previous month, following the downwardly revised 0.1% decline in March. 

The index for final demand less foods, energy, and trade services moved up 0.4% in April after rising 0.2% in March. 

For the 12 months ended in April, prices for final demand less foods, energy, and trade services increased 3.1%, the largest advance since climbing 3.4% for the 12 months ended April 2023.

Producer Price Inflation Rebounded in April

Producer price index increased 0.5% in April from the previous month and rose 2.2% from a year ago, the U.S. Bureau of Labor Statistics reported Tuesday. 

Nearly three quarter of increase in producer price inflation is linked to the increase in final demand for services.  

Goods costs rose 0.4% after falling 0.2% in March, and service prices increased 0.6% from the previous month, following the downwardly revised 0.1% decline in March. 

The index for final demand less foods, energy, and trade services moved up 0.4% in April after rising 0.2% in March. 

For the 12 months ended in April, prices for final demand less foods, energy, and trade services increased 3.1%, the largest advance since climbing 3.4% for the 12 months ended April 2023.

Stock Movers: Alibaba Group, AMC Entertainment, GameStop, Games Global, Home Depot

Home Depot declined 0.9% to $338.0 after the home improvement retailer reported weaker-than-expected results in the first quarter. 

Comparable sales in the first quarter declined by 2.8%, and in the U.S. they fell by 3.2% from a year ago. 

Revenue in the first quarter ending in April declined 2.3% to $36.4 billion from $37.3 billion, net income dropped 7% to $3.6 billion from $3.87 billion, and diluted earnings per share fell to $3.63 from $3.82 a year ago. 

The specialty retailer said fiscal 2024 sales are likely to decrease 1.0%, including the 53rd week, but excluding the recent acquisition of SRS Distribution Inc. 

Home Depot anticipated comparable same-store sales to fall 1% for the 52-week period, but 53-week diluted earnings per share to increase 1.0%. The 53rd week is expected to contribute 30 cents of diluted earnings per share. 

Games Global Limited said it plans to postpone its initial public offering, citing uncertain market conditions, which was previously scheduled for May 14. 

The online casino game supplier was looking to sell 14.5 million shares at a price between $16 and $19 per share. 

Shares of AMC and GameStop shot up in early trading following the resumption of social media postings by "Roaring Kitty." 

GameStop catapulted 130% to $69.67, and AMC Entertainment Holdings soared 123% to $11.81. 

Alibaba Group declined 5% to $80.39 after the China-based online e-commerce platform operator reported higher-than-expected revenue and said net income plunged 86%, reflecting the investment in publicly listed companies. 

For the full-year 2023, revenue rose 8% to 941.2 billion yuan or $130.7 billion and net income advanced 10% to 79.7 billion yuan or $11 billion. 

The company's board also approved the plan to payout $4 billion in dividends to shareholders. 

Stocks and Treasury Yields Turned Volatile After Producer Price Inflation Rebounded

Stocks and benchmark indexes turned volatile after the producer price index rose more than expected in April. 

Investors are looking forward to two inflation reports: the producer price inflation report on Tuesday and the consumer price inflation report on Wednesday. 

Factory gate prices rose 0.5%, higher than the monthly increase of 0.3% estimated by the Ticker.com survey. 

The higher-than-expected producer price inflation dashed hopes that the Federal Reserve would lower rates toward the end of the year. 

Investors shifted their attention to the consumer price inflation report on Wednesday, and investors are anticipating monthly inflation to slow to 0.3% from 0.4% in March and the annual pace to ease to 3.6% from 3.8%, respectively. 

Investors also reviewed the latest batch of earnings, including results from Alibaba Group and Home Depot. 

Meme stocks soared after the man behind the "Roaring Kitty" social account, which powered the frenzy to buy stocks that are heavily shorted, posted for the first time in three years. 

Producer Prices Advanced in April

Producer price index increased 0.5% in April from the previous month and rose 2.2% from a year ago, the U.S. Bureau of Labor Statistics reported Tuesday. 

Goods costs rose 0.4% after falling 0.2% in March, and service prices increased 0.6% from the previous month, following the downwardly revised 0.1% decline in March. 

Core producer prices on a monthly basis rose 0.5% and advanced 2.4% on an annual basis from the downwardly revised 2.1% in March. 

U.S. Indexes and Treasury Yields

The S&P 500 index increased 0.02% to 5,222.78, and the Nasdaq Composite fell 0.3% to 16,394.49. 

The yield on 2-year Treasury notes edged lower to 4.85%, 10-year Treasury notes inched lower to 4.48%, and 30-year Treasury bonds edged lower to 4.63%.

WTI crude oil increased $0.14 to $79.15 a barrel, and natural gas prices decreased 3 cents to $2.34 a thermal unit.

Gold increased by $5.83 to $2,344.07 an ounce, and silver rose 9 cents to $28.36. 

The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 105.21.

U.S. Stock Movers

Home Depot declined 0.9% to $338.0 after the home improvement retailer reported weaker-than-expected results in the first quarter. 

Comparable sales in the first quarter declined by 2.8%, and in the U.S. they fell by 3.2% from a year ago. 

Revenue in the first quarter ending in April declined 2.3% to $36.4 billion from $37.3 billion, net income dropped 7% to $3.6 billion from $3.87 billion, and diluted earnings per share fell to $3.63 from $3.82 a year ago. 

The specialty retailer said fiscal 2024 sales are likely to decrease 1.0%, including the 53rd week, but excluding the recent acquisition of SRS Distribution Inc. 

Home Depot anticipated comparable same-store sales to fall 1% for the 52-week period, but 53-week diluted earnings per share to increase 1.0%. The 53rd week is expected to contribute 30 cents of diluted earnings per share. 

Games Global Limited said it plans to postpone its initial public offering, citing uncertain market conditions, which was previously scheduled for May 14. 

The online casino game supplier was looking to sell 14.5 million shares at a price between $16 and $19 per share. 

Shares of AMC and GameStop shot up in early trading following the resumption of social media postings by "Roaring Kitty." 

GameStop catapulted 130% to $69.67, and AMC Entertainment Holdings soared 123% to $11.81. 

Alibaba Group declined 5% to $80.39 after the China-based online e-commerce platform operator reported higher-than-expected revenue and said net income plunged 86% as the company stepped up investment in artificial intelligence tools. 

Europe Movers: Anglo American, Delivery Hero, Flutter Entertainment, Rheinmetall, Veolia, Vodafone Group

European markets traded around the flatline, bond yield edged higher, and the euro inched up in Tuesday's trading.  

The DAX index decreased by 0.2% to 18,711.13; the CAC-40 index fell by 0.1% to 8,204.76; and the FTSE 100 index inched higher by 0.03% to 8,417.63.

The yield on 10-year German bonds edged up to 2.51%; French bonds inched higher to 3.02%; the UK gilts edged higher to 4.16%; and Italian bonds inched higher to 3.87%.

Anglo American declined 2% to 2,650.50 pence after the mining company announced its plans to sell several units as part of a turnaround effort. 

Vodafone Group increased 3.4% to 72.42 pence after the international wireless telecom carrier said organic earnings in 2024 rose 2.2%. 

Flutter Entertainment declined 2.4% to 15,800 pence after the sports betting and gambling company reported a wider quarterly net loss. 

Hannover Re fell 3.4% to €227.20 despite the reinsurance company announcing strong first quarter results and confirming its 2024 outlook. 

Delivery Hero SE soared 22% to €30.93 after Uber Technologies agreed to acquire the company's Foodpanda delivery business in Taiwan for $950 million in cash. 

Rheinmetall AG decreased 3.2% to €519.20 after the German arms manufacturer missed its sales and earnings estimate in the first quarter. 

Veolia Environnement SA gained 3.1% after the French waste and water management company met first quarter core profit expectations. 

The company also announced winning a $320 million contract for a desalination plant in the United Arab Emirates. 

German CPI Holds Steady In April, UK Wages Rose Faster than Inflation for the 10th Month

European markets traded around the flatline, and the euro edged higher in Tuesday's trading. 

Benchmark indexes in Paris, London, and Frankfurt edged up, and bond yield advanced amid interest rate uncertainty as investors debated reviewed the latest update on German inflation and UK's labor market update. 

German CPI Holds Steady in April

Germany's consumer price inflation was confirmed at 2.2% in April, matching the annual rate in March, and the preliminary report released on April 29 was unrevised, the Federal Statistical Office, or Destatis, reported Tuesday. 

Retail inflation dropped to the lowest level since May 2021, while the EU harmonized inflation inched slightly higher to 2.4% from 2.3% in the preliminary estimate. 

German Investor Morale Improves to a 26-month High

German investor morale improved and surged to the highest level in May since February 2022, the Centre for European Economic Research reported Tuesday. 

The ZEW Indicator of Economic Sentiment increased to 47.1 in May from 42.9 in April, the tenth consecutive month of improving confidence among financial experts, driven in part by the indications of German economic recovery and better-than-expected first-quarter GDP growth.

The British pound held steady after the latest update on the labor market showed improving conditions. 

UK Real Wages Advance 10th Consecutive Month 

Regular pay in the UK increased 6% from a year ago in the March quarter to £637 per week, the Office for National Statistics reported Tuesday. 

Wage gains matched the annual increase in the previous three-month period ending in February and held at the 2022 lows. 

Total pay, which includes bonuses, rose 5.7% in the period from a year ago. 

The jobless rate edged higher for the third month in a row to 4.3%. 

Adjusted for inflation, real total wages increased 1.7%, and real total pay advanced 2.0%. 

Europe Indexes and Yields

The DAX index decreased by 0.2% to 18,711.13; the CAC-40 index fell by 0.1% to 8,204.76; and the FTSE 100 index inched higher by 0.03% to 8,417.63.

The yield on 10-year German bonds edged up to 2.51%; French bonds inched higher to 3.02%; the UK gilts edged higher to 4.16%; and Italian bonds inched higher to 3.87%.

The euro edged higher to $1.079; the British pound inched higher to $1.254; and the U.S. dollar edged higher to 90.78 Swiss cents.

Brent crude increased $0.01 to $83.36 a barrel, and the Dutch TTF natural gas rose by €0.30 to €29.96 per MWh.

Europe Stock Movers

Anglo American declined 2% to 2,650.50 pence after the mining company announced its plans to sell several units as part of a turnaround effort. 

Vodafone Group increased 3.4% to 72.42 pence after the international wireless telecom carrier said organic earnings in 2024 rose 2.2%. 

Flutter Entertainment declined 2.4% to 15,800 pence after the sports betting and gambling company reported a wider quarterly net loss. 

Hannover Re fell 3.4% to €227.20 despite the reinsurance company announcing strong first quarter results and confirming its 2024 outlook. 

Delivery Hero SE soared 22% to €30.93 after Uber Technologies agreed to acquire the company's Foodpanda delivery business in Taiwan for $950 million in cash. 

Rheinmetall AG decreased 3.2% to €519.20 after the German arms manufacturer missed its sales and earnings estimate in the first quarter. 

Veolia Environnement SA gained 3.1% after the French waste and water management company met first quarter core profit expectations. 

The company also announced winning a $320 million contract for a desalination plant in the United Arab Emirates. 

Earnings and Yen Weakness Dominate Market Sentiment In Tokyo Trading, Furukawa Electric and Obayashi Jump

Market indexes in Tokyo edged higher in nervous trading as the yen struggled to hold above the flatline. 

The Nikkei 225 and the Topix inched higher in active trading following the lackluster trading in the previous session. 

The movement in the yen and the latest batch of earnings dominated market sentiment in Tokyo. 

The yen gained 0.45 to 146.58 against the U.S. dollar as traders continued to bet against the yen on the wide gap between the U.S. and Japan bond yields. 

Traders in Tokyo are estimating the yen to resume its steady decline after two days of suspected intervention last week that cost the Bank of Japan at least $35 billion. 

The trading sentiment in the Japanese yen is driven by the expectations of the U.S. interest rates staying higher for longer and the Bank of Japan in no hurry to lift its policy rate much higher from the current rate near zero. 

Japan Stock Movers 

The Nikkei 225 Stock Average rose 0.4% to 38,333.17, and the Topix gained 0.2% to 2,729.78. 

Tech stocks were in focus following the slight rebound in tech stocks in overnight trading in New York. 

Tokyo Electron decreased 0.4%, Advantest rose 2.6%, Screen Holdings dropped 2.6%, and Socionext fell 2.2%. 

Sumitomo Mitsui Fudosan, Mitsubishi UFJ, and Mizuho Financial edged up between 0.2% and 0.6%. 

Toyota Motor, Honda Motor, and Nissan Motor gained between 0.1% and 1.3%. 

Furukawa Electric soared 18.6% to ¥4,092.0 after the company reported financial results that were ahead of market expectations. 

Revenue in the fiscal year 2024 ending in March declined 0.9% to 1.056 trillion yen from 1.06 trillion yen, net income attributable to shareholders decreased to 6.5 billion yen from 15.6 billion yen, and earnings per share fell to 92.40 yen from 225.80 yen a year ago. 

Obayashi Corp. increased 13.4% to ¥1,901.0 after the construction company reported a strong increase in annual sales. 

Revenue in the fiscal year 2024 ending in March rose 17.2% to 2.3 trillion yen, net income attributable to shareholders rose to 75 billion yen, and consolidated orders received 13.1% to 2.5 trillion yen. 

China Indexes Lose Momentum, Yuan Under Pressure from Competitive Devaluation Worries

Stocks in Shanghai and Hong Kong lacked direction, and investors awaited the release of earnings from Alibaba Group and Tencent Holdings. 

Benchmark indexes in Shanghai have rebounded after Chinese regulators and policymakers announced market-supportive measures and regional governments eased mortgage restrictions for new home buyers. 

The Hang Seng index extended 4-week gains to a nine-month high in the hopes that policymakers would follow through with more concrete measures to support the faltering property market in mainland China and that state-controlled financial organizations would step up their buying of domestic stocks. 

The yuan was also in focus and traded at 7.24 against the U.S. dollar on the growing worries of a string of competitive devaluations sparked by the sharp decline in the Japanese yen. 

Moreover, the widening gap between the U.S. and Japan interest rates is weighing on the Japanese yen, and traders are bracing for the yen to drop to as low as 170 against the U.S. dollar.

The persistent decline in the yen is likely to set in motion a chain of events that could force China, Taiwan, and Korea to devalue their currencies. 

The Japanese yen has fallen to the lowest level since 1992 against the yuan, trading at a low since 2008 against the Korean won, and the currency is hovering at a 31-year low against the Taiwanese dollar.

The Japanese yen inched 20 cents higher to 156.43 against the U.S. dollar in late Monday's trading in Tokyo.

China Stock Movers 

The CSI 300 index decreased 0.3% to 3,654.77, and the Hang Seng index dropped 0.1% to 19,089.83. 

ESR Group jumped 24.4% to HK$12.44 after the logistics group received a non-binding offer to go private. Warburg Pincus, the largest investor in the company, is not part of the consortium, but the company welcomed the takeover proposal. 

The consortium of private equity groups led by Starwood Capital Partners, Sixth Street, and SSW proposed to take the company private. 

The conditional offer was reported by the company in a filing with the exchange but the offer did not disclose the price.  

Electric vehicle makers, financial services providers, and Internet-driven companies were in focus in Tuesday's trading. 

Tencent Holdings increased 0.9% to HK$381.60, Meituan jumped 0.7% to HK$123.20, Alibaba Group rose 2.2% to HK$82.95, and Baidu advanced 1.1% to HK$108.60.

BYD advanced 0.3% to HK$223.40, Li Auto dropped 1.7% to HK$103.20, and Xpeng added 1.3% to HK$31.15. 

Bank of China decreased 0.7% to HK$3.70, China Construction Bank dropped 1.1% to HK$5.57, and ICBC declined 1.1% to HK$4.49. 

CATL dropped 0.2% to ¥199.05, and the company is preparing to invest about US$7.9 billion to build its manufacturing plant in Hungary and meet the demands of its customers in the European Union. 

India Movers: DLF, Maruti Suzuki, Sanofi, Shriram Finance, Zomato

Stocks in Mumbai edged higher in cautious trading, and investors reviewed the fresh batch of earnings and inflation update. 

Consumer price inflation in April dipped to 4.83% from 4.85% in March but stayed above the RBI's preferred range between 2% and 4% for the 55th month in a row. 

The Sensex index increased by 0.1% to 72,851.68, and the Nifty index rose by 0.1% to 22,125.80. 

On the Mumbai stock exchange, 34 stocks traded at their 52-week highs, and 4 stocks traded at their 52-week lows.

The yield on the 10-year Indian government bonds inched higher to 7.12%, and the Indian rupee edged lower at ₹83.50 against the U.S. dollar.

Shriram Finance gained 3.5% to ₹2,391.45 after the company agreed to sell its subsidiary Shriram Housing Finance for ₹4,630 crore to Warburg Pincus. 

Zomato Ltd. declined 6.2% to ₹184.35 after the food delivery company swung to a profit in its latest quarter. 

Revenue in the March quarter rose 73% to ₹3,562 crore from ₹2,062 crore, and net income swung to a profit of ₹175 crore from a loss of ₹189 crore a year ago. 

The company said it plans to issue 18 crore shares, worth about ₹3,500 crore at the current stock price, to reward employees over the next five years. 

Consolidated revenue in fiscal 2024 rose to ₹12,114 crore from ₹7,079 crore, and net income swung to a profit of ₹351 crore from a loss of ₹971 crore a year ago. 

The financial results are not comparable in two years because of the acquisition of Blink Commerce Pvt. Ltd., the quick delivery service provider. 

DLF Ltd. declined 0.7% to ₹832.30 despite the Delhi-based residential real estate developer reporting a rise in revenue and earnings. 

Revenue in the March quarter rose 46.6% to ₹2,135 crore, and net income soared 61.5% to ₹920.7 crore from ₹570 crore a year ago. 

Maruti Suzuki India increased 0.1% to ₹12,691.75, and the largest vehicle maker announced two new passenger car models priced at 8.9 lakh and 9.4 lakh, respectively. 

Sanofi India increased 0.9% to ₹8,065.55 after the pharmaceutical company reported sharply lower quarterly revenue. 

Revenue in the March quarter dropped 74.3% to ₹732.4 crore from ₹2,851.1 crore, and net income swung to a loss of ₹26.7 crore compared to a gain of ₹17.8 crore a year ago. 

Investors Fear Fed May Abandon Inflation Target Amid Stubborn Price Increases

Benchmark indexes lacked direction in Monday's trading as investors debated the strength of inflationary forces and the Fed's future steps in keeping its promise of lowering inflation to a target rate of 2%. 

The S&P 500 index and the Nasdaq Composite edged higher amid interest rate uncertainty and worries of resurgent inflation. 

Consumer price inflation has slowed from a peak of over 9% to close to 3%, but prices are still rising despite multiple rate hikes. 

Investors are increasingly worried that the Federal Reserve may not be able to bring down inflation without further increasing interest rates, which could slow down the economy and dent labor markets. 

Annual consumer price inflation in April is expected to rise to 3.3%, and core inflation is estimated to advance to 3.5%, according to a survey of economists conducted by Ticker.com. 

The Federal Reserve has clarified that rates are not likely to rise, at least for now, but policymakers have struggled to bring down inflation to its long-term goal of 2%. 

Moreover, wage inflation is still close to 4.5% over the last year, inconsistent with the Federal Reserve's inflation goal. 

Investors are still hoping that the Federal Reserve will lower interest rates, despite several recent updates on economic metrics. 

Retail sales, durable goods orders, new home sales, nonfarm payrolls, and GDP growth suggested that the economy is still expanding at a healthier pace and labor market conditions are still tight but moderating. 

U.S. Indexes and Treasury Yields

The S&P 500 index increased 0.1% to 5,223.85, and the Nasdaq Composite fell 0.3% to 16,394.69. 

The yield on 2-year Treasury notes edged lower to 4.86%, 10-year Treasury notes inched lower to 4.48%, and 30-year Treasury bonds edged lower to 4.63%.

WTI crude oil increased $0.54 to $78.80 a barrel, and natural gas prices decreased 1 cent to $2.24 a thermal unit.

Gold increased by $15.12 to $2,344.03 an ounce, and silver rose 17 cents to $28.27. 

The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 105.35.

U.S. Stock Movers

GameStop Corp. soared 33% to $23.30 after the 2021 meme stock rally leader with the screen name "Roaring Kitty" posted his first social media post since 2021. 

SquareSpace soared 13% to $43.15 after the e-commerce platform operator agreed to go private in an all-cash deal valued at $6.9 billion. 

The company's board agreed to a $44-a-share cash offer, and the company's chief executive, Anthony Casalena, will continue to lead the company and the board. 

Microsoft, Amazon.com, Accenture, Morgan Stanley, Pfizer, AstraZeneca, and GSK were among several leading companies announcing their plans to invest a total of Є15 billion in France. 

The investment plans were announced at an annual gathering of 180 chief executives during an annual summit of Choose France held in Paris. 

In 2023, several companies at the summit announced plans to invest Є13 billion in France. 

European Markets Struggled to Advance Beyond Previous Week's Record Highs 

European markets edged lower in Monday's trading after advancing by 4% in the previous week and reaching new record highs. 

Benchmark indexes in Frankfurt, Paris, and London edged lower in early trading as investors debated the economic data released last week and the interest rate path after the dovish comments from the Bank of England. 

European markets advanced in the previous three consecutive weeks and extended year-to-date gains to between 9% and 10% as investors held out for an interest rate cut in the eurozone and the UK as early as next month. 

Last week, the Federal Statistical Office reported a surge in Germany's trade surplus. 

Germany’s seasonally adjusted goods exports rose 1.2% and imports fell 3%, resulting in a trade balance increase of 29.6% to €22.3 billion.

The calendar and seasonally adjusted surplus stood at €21.4 billion in February 2024 and €17.2 billion in March 2023.

China slipped to the second trading partner position as the country started making several products, including vehicles that it had previously imported from Germany.

In March, combined exports and imports between Germany and the U.S. totaled €21.9 billion, and those between Germany and China added to €22.0 billion. 

However, in the first quarter, combined exports between Germany and the U.S. totaled €63 billion, compared to €60 billion in two-way trade between Germany and China. 

Europe Indexes and Yields

The DAX index decreased by 0.2% to 18,739.21; the CAC-40 index fell by 0.2% to 8,205.66; and the FTSE 100 index inched higher by 0.03% to a new intraday record of 8,437.07. 

In the previous week, the DAX rose 4.3%, the CAC advanced 3.2%, and the FTSE 100 index gained 3.4%. 

The yield on 10-year German bonds edged up to 2.50%; French bonds inched higher to 3.00%; the UK gilts edged higher to 4.14%; and Italian bonds inched higher to 3.83%.

The euro edged higher to $1.078; the British pound inched higher to $1.252; and the U.S. dollar edged higher to 90.77 Swiss cents.

Brent crude increased $0.08 to $82.87 a barrel, and the Dutch TTF natural gas fell by €0.30 to €29.56 per MWh.

Europe Stock Movers

Diploma PLC increased 5.8% to 4,132.0 pence after the wire and cable supplier reported strong first-half results. 

Revenue in the first half rose 10% to £638.3 million, adjusted operating profit increased 14% to £125.4 million, and basic earnings per share fell to 43.1 pence from 47.3 pence a year ago. 

The company raised its full-year revenue outlook to 16% in constant currency, driven by a 5-percent increase in organic sales and a 10-percent increase through acquisition. 

Annual earnings per share are estimated to rise by 15%, reflecting a strong contribution from recent acquisitions. 

Victrex plc added 1.5% to 1,302.69 pence after the high-performance polymer group reported earnings in the first half declined by a third, but the company held out for earnings improvement in the second half. 

Adesso SE declined 3% to €103.20 after the IT service provider suffered a loss of €3.3 million in the first quarter compared to a profit of €2.02 million in the corresponding period a year ago. 

Ceconomy AG increased 3.8% to €2.31 after the electronics retailer headquartered in Dusseldorf, Germany, said adjusted annual earnings are likely to exceed market expectations. 

Revenue in the fiscal second quarter ending in March increased 6.5% after adjusting for currency and portfolio effects, driven by a 5.1% increase in same-store sales. 

The company now estimates adjusted operating earnings between €290 million and €310 million, surpassing the consensus estimate of €273 million. 

The electronics retailer had previously guided "clear improvement" in adjusted earnings before interest and taxes from the prior year's €243 million in 2023, but the company had not provided a specific range. 

Mission Group PLC fell 5.2% to 23.88 pence after the digital marketing agency rejected a takeover approach from rival Brave Bison. 

Brave Bison increased by 2.0% to 2.58 pence. 

Nikkei In Tokyo Edged Lower Ahead of GDP Report

Benchmark indexes in Tokyo eased, and investors turned cautious ahead of the GDP report later in the week. 

Market indexes reversed gains from the previous session as investors looked forward to the release of the first quarter economic growth update later in the week. 

Investors are estimating first-quarter seasonally adjusted GDP growth to decrease by 0.2% from the previous quarter, primarily because of production disruptions in January and February. 

Japan Stock Movers 

The Nikkei 225 Stock Average decreased 0.2% to 38,152.90, and the Topix index dropped 0.2% to 2,722.22. 

The yen hovered above 155 against the U.S. dollar as currency traders digested a summary of the Bank of Japan's policy meeting minutes held in April. 

The Bank of Japan's suspected two-day intervention last week lifted the battered yen from a low of 160 to 153, but the persistent weakness in the yen likely to bring the currency closer to 160. 

The wide gap between the U.S. and Japan is likely to keep downward pressure on the yen as the U.S. Federal Reserve is likely to keep the fed funds rate range between 5.25% and 5.5% longer than previously estimated. 

Tech stocks were among the leading decliners in Monday's trading. 

Tokyo Electron and Advantest rose about 0.5%, but Disco Corp., Socionext, and Screen Holdings decreased between 0.5% and 1.2%. 

Mitsui Fudosan declined 6.5% to ¥1,482.0 after the real estate company reported weaker-than-expected quarterly results. 

Kubota Corp. dropped 5.3% to ¥2,353.50 after the farm equipment maker's earnings met investors expectations. 

Revenue in the first quarter declined 0.8% to 775.2 billion yen, net income rose 5.3% to 79.2 billion yen, and diluted earnings per share advanced to 62.06 yen from 58.11 yen a year ago. 

China Stocks Advance Overlooking Possible U.S. Tariff Hikes

Benchmark indexes in Shanghai and Hong Kong rebounded on Monday on earnings optimism. 

Market sentiment was cautiously optimistic in early trading after investors shifted their focus to earnings announcements from Alibaba.com and Tencent Holdings. 

Investors are expecting Tencent earnings to advance by 34% and Alibaba earnings to fall by less than 39% in the first quarter. 

Investors also took note of a possible increase in U.S. tariffs for China's electric vehicles, batteries, and solar cells as early as next week. 

Market sentiment was weak in Monday's trading after U.S. President Joe Biden's administration proposed to increase tariffs on electric vehicles and a range of new energy products, including solar panels and batteries. 

The news was first reported by the Wall Street Journal and independently confirmed by Ticker.com from sources in Washington, D.C. 

The tariffs are expected to be announced as early as next week, and tariffs are expected to rise to as much as 100% from the current 27% on most of the new energy products. 

China's Consumer Inflation Accelerates In April

On the economic front, China's annual consumer price inflation rose by 0.3% in April, the National Bureau of Statistics reported over the weekend. 

Inflation accelerated from a 0.1% rise in March and rose for the third month in a row, driven largely by the increase in non-food prices. 

Producer price inflation fell annually by 2.5% in April, and the measure of wholesale inflation declined for the 19th month in a row. 

Weak Demand Keeps New Bank Loans In Check 

China's aggregate lending in April declined by 200 billion yuan, or about $28 billion, the People's Bank of China reported over the weekend. 

The broad measure of credit and liquidity decreased from 4.87 trillion yuan in March, reflecting seasonal weakness in April.

The new loans issued by Chinese banks dropped to 730 billion yuan, sharply lower than 3.1 trillion yuan in March and the smallest amount since July 2023. 

China Stock Movers 

The CSI 300 index increased 0.01% to 3,666.88, and the Hang Seng index advanced 0.5% to 19,049.09. 

New energy product makers were among the leading decliners following the news of a possible tariff hike in the U.S. 

CATL declined 1.8% to 199.88 yuan in Shanghai trading. 

BYD declined 0.1% to HK$223.20, Li Auto decreased 0.3% to HK$102.80, and Xpeng fell 2% to HK$31.30. 

Tencent Holdings rose 1.8% to HK$377.80, and Alibaba Group jumped 4.6% to HK$81.55. 

U.S. Movers: Amazon, GameStop, Intel, Microsoft, SquareSpace

GameStop Corp. soared 33% to $23.30 after the 2021 meme stock rally leader with the screen name "Roaring Kitty" posted his first social media post since 2021. 

SquareSpace jumped 13% to $43.15, and the e-commerce platform operator agreed to go private in an all-cash deal valued at $6.9 billion. 

The company's board agreed to a $44-a-share cash offer, and the company's chief executive, Anthony Casalena, will continue to lead the company and the board. 

Microsoft, Amazon.com, Accenture, Morgan Stanley, Pfizer, AstraZeneca, and GSK were among several leading companies announcing their plans to invest a total of Є15 billion in France. 

The investment plans were announced at an annual gathering of 180 chief executives during an annual summit of Choose France held in Paris. 

In 2023, several companies at the summit announced plans to invest Є13 billion in France. 

Microsoft Corp. gained 0.4% to $416.56 after the company said it plans to invest as much as $4 billion and expand its cloud and AI infrastructure in France. 

Microsoft plans to build a data center in Mulhouse, France, a city close to the border of Germany and Switzerland. 

Amazon.com Inc. gained 0.01% to $187.50 after the e-commerce retailer and cloud infrastructure provider said it plans to invest 1.2 billion in France. 

Amazon.com said it will add as many as 3,000 jobs in the Paris area to strengthen its cloud infrastructure. 

Intel Corp. advanced 1% to $30.17 after private equity investor Apollo Global and the company are in advanced talks to build a manufacturing facility in Ireland. 

Apollo is likely to invest $11 billion in the manufacturing facility, the Wall Street Journal reported Monday. 

Intel is in the midst of a $100 billion investment spree as the company plays catch-up with Taiwan Semiconductor and diversifies its business model to provide foundry services to other fabless chip makers. 

U.S. Major Averages Advance In Cautious Trading Ahead of Inflation Reports

Market sentiment in New York was positive in Monday's trading as investors looked forward to the release of inflation reports later in the week. 

The S&P 500 index and the Nasdaq Composite edged 0.3% higher in early trading amid interest rate uncertainty and worries of resurgent inflation. 

Consumer price inflation has slowed from a peak of over 9% to close to 3%, but prices are still rising despite multiple rate hikes. 

Annual consumer price inflation in April is expected to rise to 3.3%, and core inflation is estimated to advance to 3.5%, according to a survey of economists conducted by Ticker.com. 

The Federal Reserve has clarified that rates are not likely to rise, at least for now, but policymakers have struggled to bring down inflation to its long-term goal of 2%. 

Moreover, wage inflation is still close to 4.5% over the last year, inconsistent with the Federal Reserve's inflation goal. 

Investors are still hoping that the Federal Reserve will lower interest rates, despite the several recent updates on retail sales, durable goods orders, new home sales, nonfarm payrolls, and GDP suggesting healthy economic growth and moderating but tight labor market conditions. 

U.S. Indexes and Treasury Yields

The S&P 500 index increased 0.2% to 5,254.09, and the Nasdaq Composite fell 0.3% to 16,384.14. 

The yield on 2-year Treasury notes edged lower to 4.86%, 10-year Treasury notes inched lower to 4.48%, and 30-year Treasury bonds edged lower to 4.63%.

WTI crude oil increased $0.54 to $78.80 a barrel, and natural gas prices decreased 1 cent to $2.24 a thermal unit.

Gold increased by $15.12 to $2,344.03 an ounce, and silver rose 17 cents to $28.27. 

The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 105.35.

U.S. Stock Movers

GameStop Corp. soared 33% to $23.30 after the 2021 meme stock rally leader with the screen name "Roaring Kitty" posted his first social media post since 2021. 

SquareSpace soared 13% to $43.15 after the e-commerce platform operator agreed to go private in an all-cash deal valued at $6.9 billion. 

The company's board agreed to a $44-a-share cash offer, and the company's chief executive, Anthony Casalena, will continue to lead the company and the board. 

Europe Movers: Adesso, Ceconomy, Diploma, Mission Group, Victrex

European markets struggled to advance in Monday's trading, and benchmark indexes in Paris, London, and Frankfurt edged lower. 

The DAX index decreased by 0.2% to 18,739.21; the CAC-40 index fell by 0.2% to 8,205.66; and the FTSE 100 index inched higher by 0.03% to a new intraday record of 8,437.07. 

In the previous week, the DAX rose 4.3%, the CAC advanced 3.2%, and the FTSE 100 index gained 3.4%. 

The yield on 10-year German bonds edged up to 2.50%; French bonds inched higher to 3.00%; the UK gilts edged higher to 4.14%; and Italian bonds inched higher to 3.83%.

Diploma PLC increased 5.8% to 4,132.0 pence after the wire and cable supplier reported strong first-half results. 

Revenue in the first half rose 10% to £638.3 million, adjusted operating profit increased 14% to £125.4 million, and basic earnings per share fell to 43.1 pence from 47.3 pence a year ago. 

The company raised its full-year revenue outlook to 16% in constant currency, driven by a 5-percent increase in organic sales and a 10-percent increase through acquisition. 

Annual earnings per share are estimated to rise by 15%, reflecting a strong contribution from recent acquisitions. 

Victrex plc added 1.5% to 1,302.69 pence after the high-performance polymer group reported earnings in the first half declined by a third, but the company held out for earnings improvement in the second half. 

Adesso SE declined 3% to €103.20 after the IT service provider suffered a loss of €3.3 million in the first quarter compared to a profit of €2.02 million in the corresponding period a year ago. 

Revenue in the first quarter increased 15% to 317.1 million, and the number of full-time equivalent employee rose 17% to 9,926. 

Revenue in Germany increased by 17% and outside Germany, revenue increased by 6%. 

Revenue in the Netherlands and Italy surged by 20% and 21% respectively. 

Ceconomy AG increased 3.8% to €2.31 after the electronics retailer headquartered in Dusseldorf, Germany, said adjusted annual earnings are likely to exceed market expectations. 

Revenue in the fiscal second quarter ending in March increased 6.5% after adjusting for currency and portfolio effects, driven by a 5.1% increase in same-store sales. 

The company now estimates adjusted operating earnings between €290 million and €310 million, surpassing the consensus estimate of €273 million. 

The electronics retailer had previously guided "clear improvement" in adjusted earnings before interest and taxes from the prior year's €243 million in 2023, but the company had not provided a specific range. 

Mission Group PLC fell 5.2% to 23.88 pence after the digital marketing agency rejected a takeover approach from rival Brave Bison. 

Brave Bison increased by 2.0% to 2.58 pence. 

European Markets Struggled to Advance Beyond Previous Week's Record Highs

European markets edged lower in Monday's trading after advancing by 4% in the previous week and reaching new record highs. 

Benchmark indexes in Frankfurt, Paris, and London edged lower in early trading as investors debated the economic data released last week and the interest rate path after the dovish comments from the Bank of England. 

European markets advanced in the previous three consecutive weeks and extended year-to-date gains to between 9% and 10% as investors held out for an interest rate cut in the eurozone and the UK as early as next month. 

Last week, the Federal Statistical Office reported a surge in Germany's trade surplus. 

Germany’s seasonally adjusted goods exports rose 1.2% and imports fell 3%, resulting in a trade balance increase of 29.6% to €22.3 billion.

The calendar and seasonally adjusted surplus stood at €21.4 billion in February 2024 and €17.2 billion in March 2023.

China slipped to the second trading partner position as the country started making several products, including vehicles that it had previously imported from Germany.

In March, combined exports and imports between Germany and the U.S. totaled €21.9 billion, and those between Germany and China added to €22.0 billion. 

However, in the first quarter, combined exports between Germany and the U.S. totaled €63 billion, compared to €60 billion in two-way trade between Germany and China. 

China's consumer price inflation increased for the third month in a row by 0.3% in April, but producer price inflation declined by 2.5% in the month, the National Bureau of Statistics reported over the weekend. 

Producer price inflation, a measure of wholesale inflation, fell for the 19th month in a row, suggesting ongoing weakness in demand amid fragile economic recovery after the end of the pandemic era restrictions last year. 

Europe Indexes and Yields

The DAX index decreased by 0.2% to 18,739.21; the CAC-40 index fell by 0.2% to 8,205.66; and the FTSE 100 index inched higher by 0.03% to a new intraday record of 8,437.07. 

In the previous week, the DAX rose 4.3%, the CAC advanced 3.2%, and the FTSE 100 index gained 3.4%. 

The yield on 10-year German bonds edged up to 2.50%; French bonds inched higher to 3.00%; the UK gilts edged higher to 4.14%; and Italian bonds inched higher to 3.83%.

The euro edged higher to $1.078; the British pound inched higher to $1.252; and the U.S. dollar edged higher to 90.77 Swiss cents.

Brent crude increased $0.08 to $82.87 a barrel, and the Dutch TTF natural gas fell by €0.30 to €29.56 per MWh.

Europe Stock Movers

Diploma PLC increased 5.8% to 4,132.0 pence after the wire and cable supplier reported strong first-half results. 

Revenue in the first half rose 10% to £638.3 million, adjusted operating profit increased 14% to £125.4 million, and basic earnings per share fell to 43.1 pence from 47.3 pence a year ago. 

The company raised its full-year revenue outlook to 16% in constant currency, driven by a 5-percent increase in organic sales and a 10-percent increase through acquisition. 

Annual earnings per share are estimated to rise by 15%, reflecting a strong contribution from recent acquisitions. 

Victrex plc added 1.5% to 1,302.69 pence after the high-performance polymer group reported earnings in the first half declined by a third, but the company held out for earnings improvement in the second half. 

Adesso SE declined 3% to €103.20 after the IT service provider suffered a loss of €3.3 million in the first quarter compared to a profit of €2.02 million in the corresponding period a year ago. 

Ceconomy AG increased 3.8% to €2.31 after the electronics retailer headquartered in Dusseldorf, Germany, said adjusted annual earnings are likely to exceed market expectations. 

Revenue in the fiscal second quarter ending in March increased 6.5% after adjusting for currency and portfolio effects, driven by a 5.1% increase in same-store sales. 

The company now estimates adjusted operating earnings between €290 million and €310 million, surpassing the consensus estimate of €273 million. 

The electronics retailer had previously guided "clear improvement" in adjusted earnings before interest and taxes from the prior year's €243 million in 2023, but the company had not provided a specific range. 

Mission Group PLC fell 5.2% to 23.88 pence after the digital marketing agency rejected a takeover approach from rival Brave Bison. 

Brave Bison increased by 2.0% to 2.58 pence. 

Nikkei In Tokyo Edged Lower Ahead of GDP Report, Mitsui Fudosan and Kubota In Focus

Benchmark indexes in Tokyo eased, and investors turned cautious ahead of the GDP report later in the week. 

Market indexes reversed gains from the previous session as investors looked forward to the release of the first quarter economic growth update later in the week. 

Investors are estimating first-quarter seasonally adjusted GDP growth to decrease by 0.2% from the previous quarter, primarily because of production disruptions in January and February. 

The Nikkei 225 Stock Average decreased 0.2% to 38,152.90, and the Topix index dropped 0.2% to 2,722.22. 

The yen hovered above 155 against the U.S. dollar as currency traders digested a summary of the Bank of Japan's policy meeting minutes held in April. 

The Bank of Japan's suspected two-day intervention last week lifted the battered yen from a low of 160 to 153, but the persistent weakness in the yen likely to bring the currency closer to 160. 

The wide gap between the U.S. and Japan is likely to keep downward pressure on the yen as the U.S. Federal Reserve is likely to keep the fed funds rate range between 5.25% and 5.5% longer than previously estimated. 

Tech stocks were among the leading decliners in Monday's trading. 

Tokyo Electron and Advantest rose about 0.5%, but Disco Corp., Socionext, and Screen Holdings decreased between 0.5% and 1.2%. 

Mitsui Fudosan declined 6.5% to ¥1,482.0 after the real estate company reported weaker-than-expected quarterly results. 

Kubota Corp. dropped 5.3% to ¥2,353.50 after the farm equipment maker's earnings met investors expectations. 

Revenue in the first quarter declined 0.8% to 775.2 billion yen, net income rose 5.3% to 79.2 billion yen, and diluted earnings per share advanced to 62.06 yen from 58.11 yen a year ago.