- Li Chen
- 14 May, 2024
- Hong Kong
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.
- Arun Goswami
- 14 May, 2024
- Mumbai
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.
- Alexander Garcia
- 13 May, 2024
- Mumbai
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.
- Scott Peters
- 13 May, 2024
- New York City
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.
- Barry Adams
- 13 May, 2024
- New York City
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.
- Inga Muller
- 13 May, 2024
- Frankfurt
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.
- Bridgette Randall
- 13 May, 2024
- Frankfurt
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.
- Akira Ito
- 13 May, 2024
- Tokyo
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.
- Li Chen
- 13 May, 2024
- Hong Kong
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.
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.
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.
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.
- Arun Goswami
- 13 May, 2024
- Mumbai
Benchmark indexes in Mumbai dropped nearly 1% in early trading following weak market sentiment in Asia after tensions rose between the U.S. and China.
The Sensex index increased by 0.7% to 72,917.27, and the Nifty index rose by 0.7% to 22,117.40.
On the Mumbai stock exchange, 129 stocks traded at their 52-week highs, and 37 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 ₹83.51 against the U.S. dollar.
India Tourism Development Corporation jumped 2.5% to ₹629.45 after the company reported better-than-expected quarterly results.
Revenue in the March quarter declined 3.8% to ₹147.8 crore, and after-tax profit increased 68% to ₹32.4 crore from a year ago, respectively.
APL Apollo Tubes declined 1.8% to ₹1,509.0 after the company reported a decline in profit in the latest quarter.
Revenue in the March quarter rose 7.6% to 4,765.7 crore, and after-tax income declined 15.6% to 170.4 crore from a year ago, respectively.
JK Cement increased 1.3% to ₹3,892.05 after the company reported a rise in revenue and earnings in the latest quarter.
Revenue in the March quarter increased 11.8% to 3,105.8 crore, and after-tax income doubled to 219.7 crore from a year ago, respectively.
Bharat Earth Movers, or BEML, jumped 4.5% to ₹3,356.0 after the company reported a rise in earnings and sales in its latest quarter.
Revenue in the March quarter rose 9.1% to 1,513.7 crore, and net profit soared 62.8% to 256.8 crore from a year ago, respectively.
Tata Motors dropped 8.5% to ₹956.15 despite the automotive company reporting strong quarterly results.
Revenue in the March quarter rose 14.3% to ₹1.2 lakh crore, and net profit soared 222% to ₹17,407.2 crore from a year ago, respectively.
The company's board proposed a final dividend of ₹6 per share and ₹6.20 for class A shares.
Union Bank of India declined 6.2% to ₹133.15 despite the bank reporting a 19% increase in quarterly profit.
- Barry Adams
- 10 May, 2024
- New York City
Stocks wavered in early trading on Wall Street after investors digested the latest update on consumer sentiment.
The S&P 500 index and the Nasdaq Composite struggled to stay above the flatline after the University of Michigan Consumer Sentiment declined to 67.4 from 77.2 in April.
Consumer sentiment fell to a six-month low, and inflation expectation for the year-ahead reached 3.5% from 3.2% in the previous month, according to the preliminary estimate.
Consumers are worried that unemployment, inflation, and interest rates are moving in an unfavorable direction in the next 12 months.
The latest consumer sentiment report dented rate-cut expectations in the summer, as policymakers may keep interest rates higher for longer to drive inflation towards the 2% target rate.
For the week, the S&P 500 index rose 1.1% and the Nasdaq Composite advanced 0.4%.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.1% to 5,220.39, and the Nasdaq Composite fell 0.1% to 16,331.89.
The yield on 2-year Treasury notes edged lower to 4.86%, 10-year Treasury notes inched lower to 4.51%, and 30-year Treasury bonds edged lower to 4.64%.
WTI crude oil increased $0.19 to $79.45 a barrel, and natural gas prices decreased 1 cent to $2.28 a thermal unit.
Gold increased by $17.68 to $2,364.96 an ounce, and silver fell 11 cents to $28.22.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 105.35.
U.S. Stock Movers
Sweetgreen soared 39% to $32.95 after the salad chain reported higher-than-expected revenue in the first quarter.
Revenue in the first quarter increased by 26% to $157.9 million from $125.1 million, driven by the same store sales increase of 5% from a year ago.
Net loss in the quarter decreased to $26.1 million from $33.6 million, and diluted loss per share fell to 23 cents from 30 cents a year ago.
Akamai Technologies decreased 9.1% to $94.06 after the internet infrastructure company estimated weaker-than-expected second quarter earnings.
Revenue in the first quarter increased 8% to $987 million from $915.7 million, net income rose to $175.4 million from $97.1 million, and diluted earnings per share advanced to $1.11 from 62 cents a year ago.
The company estimated a second-quarter revenue range between $967 million and $986 million and full-year revenue between $3.95 billion and $4.02 billion.
Array Technologies rose 2.9% to $12.88 after the company reported better-than-expected adjusted earnings.
Revenue in the first quarter decreased to $153.4 million from $376.8 million, net income swung to a loss of $11.3 million from $17.2 million, and diluted earnings per share were a loss of 7 cents compared to a profit of 11 cents a year ago.
The company reaffirmed its annual revenue range of $1.25 billion to $1.4 billion and adjusted earnings per share to range between $1.0 and $1.15 billion.
Novavax soared 124% to $10.02 after the company announced a multi-billion-dollar deal with Sanofi to co-commercialize its COVID vaccine starting as early as 2025.
Sanofi agreed to pay Novavax an upfront licensing fee of $500 million and an additional fee of $700 million based on reaching certain milestones.
- Scott Peters
- 10 May, 2024
- San Francisco
Sweetgreen soared 39% to $32.95 after the salad chain reported higher-than-expected revenue in the first quarter.
Revenue in the first quarter increased by 26% to $157.9 million from $125.1 million, driven by the same store sales increase of 5% from a year ago.
Net loss in the quarter decreased to $26.1 million from $33.6 million, and diluted loss per share fell to 23 cents from 30 cents a year ago.
Akamai Technologies decreased 9.1% to $94.06 after the internet infrastructure company estimated weaker-than-expected second quarter earnings.
Revenue in the first quarter increased 8% to $987 million from $915.7 million, net income rose to $175.4 million from $97.1 million, and diluted earnings per share advanced to $1.11 from 62 cents a year ago.
The company estimated a second-quarter revenue range between $967 million and $986 million and full-year revenue between $3.95 billion and $4.02 billion.
Array Technologies rose 2.9% to $12.88 after the company reported better-than-expected adjusted earnings.
Revenue in the first quarter decreased to $153.4 million from $376.8 million, net income swung to a loss of $11.3 million from $17.2 million, and diluted earnings per share were a loss of 7 cents compared to a profit of 11 cents a year ago.
The company reaffirmed its annual revenue range of $1.25 billion to $1.4 billion and adjusted earnings per share to range between $1.0 and $1.15 billion.
Novavax soared 124% to $10.02 after the company announced a multi-billion-dollar deal with Sanofi to co-commercialize its COVID vaccine starting as early as 2025.
Sanofi agreed to pay Novavax an upfront licensing fee of $500 million and an additional fee of $700 million based on reaching certain milestones.
- Inga Muller
- 10 May, 2024
- Frankfurt
European market indexes inched further into record territory as investors raised expectations for a rate cut in the summer.
For the week, the DAX rose 4.3%, the CAC advanced 3.2%, and the FTSE 100 index gained 3.4%.
In Friday's trading, the DAX index increased by 0.5% to 18,771.51; the CAC-40 index rose by 0.7% to 18,771.51; and the FTSE 100 index inched higher by 0.8% to a new intraday record of 8,447.45.
The yield on 10-year German bonds edged down to 2.48%; French bonds inched lower to 2.98%; the UK gilts edged lower to 4.12%; and Italian bonds inched higher to 3.81%
Resource stocks advanced after copper, iron ore, gold, and silver prices edged higher in the hopes of demand recovery in China.
Anglo American, Glencore, and Antofagasta advanced between 1% and 2%.
Energy explorers advanced in trading after Brent crude oil prices advanced to one-week highs.
CRH PLC soared 4.7% to 6,710.0 pence after the building materials provider reaffirmed its annual outlook.
Cairn Homes PLC gained 3.9% to 146.60 pence after the Irish home builder said demand for homes across price ranges and types remains "exceptionally high."
Iveco Group gained 3.3% to €12.08 after the truck and bus maker reported better-than-expected quarterly results.
Revenue in the fiscal second quarter ending in March held steady at €3.36 billion, after-tax net income rose to €12 million from €10 million, and diluted earnings per share advanced to 6 cents from 2 cents a year ago.
International Consolidated Airlines Group soared 0.4% to 183.45 pence after the parent of British Air and Iberian Air said operating profit in the first quarter rose to 68 million from 9 million a year ago.
Chief Executive Luis Gallego said the company is "well positioned for the summer," indicating strong booking for the upcoming travel season.
Revenue in the first quarter increased to €6.4 billion from €5.9 billion, after-tax loss shrank to €4 million from €87 million, and basic loss per share eased to 0.1 cent from 1.8 cents.
- Bridgette Randall
- 10 May, 2024
- Frankfurt
European markets advanced and extended further into record territory in the hopes that the major central banks are more likely to cut rates this summer.
Benchmark indexes in Paris, London, and Frankfurt inched higher and extended their weekly gains as traders estimated major central banks are ready to cut rates as early as June, after the cooler U.S. jobs report and dovish guidance from the Bank of England.
The U.K. GDP advanced 0.6% in the first quarter, higher than estimated by the Bank of England.
The GDP rose at a faster pace than in the previous quarter, when the economy shrank by 0.3%, the Office for National Statistics reported Friday.
With the latest increase, the UK economy ended its technical recession after shrinking to 0.1% in the third quarter and 0.3% in the fourth quarter of 2023.
On an annual basis, the U.K. GDP expanded at a slower pace of 0.2%.
On Thursday, the Bank of England held its key lending rate at a 16-year high for the sixth time in a row at 5.25% and hinted that a rate cut is likely if incoming inflation data warrants the move.
The U.S. weekly jobless claims rose above 200,000 to the highest level since August 2023, indicating that the job market is moderating and providing additional room for the central bank to lower rates.
Europe Indexes and Yields
For the week, the DAX rose 4.3%, the CAC advanced 3.2%, and the FTSE 100 index gained 3.4%.
In Friday's trading, the DAX index increased by 0.5% to 18,771.51; the CAC-40 index rose by 0.7% to 8,218.26; and the FTSE 100 index inched higher by 0.8% to a new intraday record of 8,447.45.
The yield on 10-year German bonds edged down to 2.48%; French bonds inched lower to 2.98%; the UK gilts edged lower to 4.12%; and Italian bonds inched higher to 3.81%.
The euro edged higher to $1.077; the British pound inched higher to $1.252; and the U.S. dollar edged higher to 90.69 Swiss cents.
Brent crude increased $0.43 to $84.31 a barrel, and the Dutch TTF natural gas fell by €0.61 to €30.35 per MWh.
Europe Stock Movers
Resource stocks advanced after copper, iron ore, gold, and silver prices edged higher in the hopes of demand recovery in China.
Anglo American, Glencore, and Antofagasta advanced between 1% and 2%.
Energy explorers advanced in trading after Brent crude oil prices advanced to one-week highs.
CRH PLC soared 4.7% to 6,710.0 pence after the building materials provider reaffirmed its annual outlook.
Cairn Homes PLC gained 3.9% to 146.60 pence after the Irish home builder said demand for homes across price ranges and types remains "exceptionally high."