- Inga Muller
- 07 Oct, 2024
- Frankfurt
European markets were under pressure after Germany's factory orders declined and the slight increase in the Euro Area retail sales.
Higher bond yields also weighed on the market sentiment.
The DAX index increased by 0.2% to 19,046.54; the CAC-40 index rose by 0.5% to 7,515.22; and the FTSE 100 index declined by 0.2% to 8,245.95.
The yield on 10-year German bonds edged higher to 2.25%, French bonds inched higher to 3.02%, the UK gilts edged up to 4.20%, and Italian bonds increased to 3.56%.
Richemont SA increased 0.8% to CHF 131.95 after the Swiss luxury goods maker agreed to sell its online business Yoox Net-a-Porter to the German online retailer Mytheresa.
Richemont agreed to sell loss-making YNAP with a cash position of €555 million and provide additional revolving credit lines of €100 million in exchange for a 33% equity stake in the German online retailer.
The transaction is expected to close in the first half of 2025, and Richemont plans to take a 1.3 billion asset write down related to the transaction, including the cash to be left in the YNAP account.
Telecom Italia S.p.A. declined 0.2% to €0.26 after the company's board authorized chief executive officer Pietro Labriola to negotiate the purchase of TI Sparkle S.p.A.
3i Infrastructure PLC increased 0.6% to 343.50 pence, and the company received a binding offer for a 33% stake in Valorem, an independent European renewable energy company.
Heidelberg Materials AG increased 1.8% to €99.14 following a report that the German cement company has entered into negotiations to sell its cement operations in India for as much as $1.2 billion.
- Bridgette Randall
- 07 Oct, 2024
- London
Stock market indexes in Europe declined for the second session in a row, pressured by higher bond yields following the release of a robust U.S. jobs report last week.
Benchmark indexes in Paris, London, and Frankfurt struggled to advance, and investors reviewed the latest update of German factory orders and the Euro Area retail sales.
German Factory Orders Dragged Down by Volatile Large-scale Orders
Germany's factory orders declined at a faster-than-expected monthly pace of 5.8% in August from the upwardly revised increase of 3.9% in July, the Federal Statistical Office, Destatis, reported Monday.
The orders declined at the steepest face since January because of the weakness in large-scale orders for trains, planes, and ships.
Incoming orders declined 3.4% from July, excluding large-scale orders.
On an annual basis, calendar-adjusted orders fell 3.9% from the corresponding month last year.
In the capital goods and intermediate goods sectors, monthly incoming orders in August fell by 8.6% and 2.2%, respectively, while incoming orders for consumer goods fell by 0.9%.
Domestic orders fell 10.9%, foreign orders declined 2.2%, while orders from the eurozone decreased by 10.5%.
Euro Area Retail Sales Edged Up In August
Eurozone retail sales struggled to advance in August amid high costs of living as consumers restricted purchases to basic items.
Retail sales advanced 0.2% from the previous month, when sales growth was flat.
From a year ago, retail sales rose 0.8%, as a 2.5% increase in automotive fuel overwhelmed the decline of 0.2% in food, beverage, and tobacco sales.
Europe Indexes and Yields
The DAX index increased by 0.2% to 19,046.54; the CAC-40 index rose by 0.5% to 7,515.22; and the FTSE 100 index declined by 0.2% to 8,245.95.
The yield on 10-year German bonds edged higher to 2.25%, French bonds inched higher to 3.02%, the UK gilts edged up to 4.20%, and Italian bonds increased to 3.56%.
The euro edged lower to $1.09; the British pound inched lower to $1.30; and the U.S. dollar weakened to 85.73 Swiss cents.
Brent crude increased $1.81 to $79.85 a barrel, and the Dutch TTF natural gas fell by €0.44 to €40.31 per MWh.
Europe Stock Movers
Richemont SA increased 0.8% to CHF 131.95 after the Swiss luxury goods maker agreed to sell its online business Yoox Net-a-Porter to the German online retailer Mytheresa.
Richemont agreed to sell loss-making YNAP with a cash position of €555 million and provide additional revolving credit lines of €100 million in exchange for a 33% equity stake in the German online retailer.
The transaction is expected to close in the first half of 2025, and Richemont plans to take a 1.3 billion asset write down related to the transaction, including the cash to be left in the YNAP account.
Telecom Italia S.p.A. declined 0.2% to €0.26 after the company's board authorized chief executive officer Pietro Labriola to negotiate the purchase of TI Sparkle S.p.A.
3i Infrastructure PLC increased 0.6% to 343.50 pence, and the company received a binding offer for a 33% stake in Valorem, an independent European renewable energy company.
Heidelberg Materials AG increased 1.8% to €99.14 following a report that the German cement company has entered into negotiations to sell its cement operations in India for as much as $1.2 billion.
- Akira Ito
- 07 Oct, 2024
- Tokyo
Stock market indexes in Tokyo extended their winning streak for the third session in a row after the yen weakened sharply.
The Nikkei 225 stock average and the Topix index advanced more than 2% in Monday's trading after the yen dropped to a five-week low.
The yen traded at 148.45 against the U.S. dollar after the U.S. economy added jobs at the fastest pace in six months in September, easing pressure on the Bank of Japan to raise rates in the immediate future.
Investors are also anticipating that the Bank of Japan policymakers will hold rates steady on October 31, after the newly appointed prime minister Shigeru Ishiba made a U-turn and supported a gradual increase in interest rates.
Earlier, Ishibara had supported hawkish monetary policy and aggressive rate hikes before assuming the leadership position.
Investors reviewed the retail sales and industrial production data released last week and reassessed the rate path outlook amid the rising prospects that the U.S. Federal Reserve is likely to achieve the so-called soft landing, where policymakers manage to cool inflation while keeping the economic growth intact.
Last week the government said Japan's annual retail sales growth slightly accelerated to 2.8% in August from 2.7% in July.
Retail sales increased for the 29th month in a row, supported by the increase in wages, which continue to support higher consumption of basic items.
Japan’s industrial production declined in August, and manufacturing extended contraction in September, but the sentiment among large manufacturers was steady in the third quarter.
Japan Stock Movers
The Nikkei 225 Stock Average increased 2.3% to 39,530.29, and the broader Topix index advanced 2.1% to 2,751.12.
Retail stocks were in focus ahead of the start of the earnings season this week.
Aeon Corp. declined 0.5% to¥3,960.0, Fast Retailing gained 3.3% to¥50,850.0, Isetan Mitsukoshi Holdings added 7.8% to¥2,489.50, and Seven & I jumped 2% to¥2,238.50.
Mitsubishi UFJ Financial added 3.9% to ¥1,537.50, Sumitomo Mitsui Financial increased 4% to ¥3,215.0, and Mizuho Financial Group gained 4.6% to ¥3,108.0.
Vehicle makers advanced despite the growing anxieties about Chinese electric vehicle makers making inroads in global markets.
Toyota Motor Corp. advanced 2.6% to ¥2,654.50, Honda Motor Corp. jumped 2.7% to ¥1,606.0, and Nissan Motor gained 1.7% to ¥421.30.
- Arun Goswami
- 07 Oct, 2024
- Mumbai
Stocks in Mumbai struggled to advance amid lingering worries of a rebound in crude oil prices contributing to inflation.
The Sensex index increased by 0.4% to 81,958.22, and the Nifty index fell by 0.2% to 25,058.65.
On the Mumbai stock exchange, 136 stocks traded at their 52-week highs, and 60 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds inched higher to 6.82%, and the Indian rupee eased to 83.96 against the U.S. dollar.
Godrej Properties increased 2.2% to ₹2,958.65, and the residential property developer said sales in the fiscal first half ending in September increased to ₹13,800 crore.
Macrotech Developers advanced 2.7% to ₹1,204.60, and the Mumbai-based residential developer said pre-sale in the fiscal second quarter ending in September increased 21% to 4,290 crore.
Cash deposits from buyers jumped 11% to ₹3,070 crore in the latest quarter.
SAMHI Hotels decreased 0.2% to₹195.50, and the company's board approved the purchase of Innmar Tourism and Hotels for₹205 crore.
Canara Bank declined 1% to ₹106.62, and the bank is looking to auction its holdings in three companies: NSL Sugar Ltd., NSL Krishnaveni Sugar Ltd., and NSL Textiles, with a total reserve price of ₹394.5 crore.
Bank of Maharashtra decreased 0.3% to ₹57.50, and the Life Insurance Corporation of India increased its stake in the regional bank to 7.1% from 4.05% after participating in the recent secondary offering.
The insurance company acquired a 3.376% stake in the bank at an average cost of ₹57.36 per share.
Adani Wilmar Ltd decreased 0.7% to ₹334.35, and the edible oil company estimated a 16% increase in sales in the September quarter, primarily driven by a recovery in retail prices.
- Brian Turner
- 04 Oct, 2024
- Washington, D.C.
The U.S. economy added 254,000 jobs in September from the upwardly revised 159,000 in August, the U.S. Bureau of Labor Statistics said in its monthly report.
Job additions in September were the strongest in the last six months and higher than the average over the prior 12 months.
Employment in food services and drinking places increased by 69,000, in healthcare by 45,000, in government by 31,000, and in social assistance by 27,000.
Employment changed little in financial activities, professional and business services, and transportation and warehousing.
In September, average hourly earnings for all employees on private nonfarm payrolls increased by 13 cents, or 0.4%, to $35.36, and average hourly earnings increased by 4.0% over the last 12 months.
The change in total nonfarm payroll employment for July was revised up by 55,000 to 144,000, and the change for August was revised up by 17,000 to 159,000.
With these revisions, employment in July and August combined is 72,000 higher than previously reported.
The unemployment rate increased to 4.1% from 3.8% a year ago, and the number of unemployed people rose to 6.8 million from 6.3 million, respectively.
Both the jobless rate and the number of unemployed people were changed little in September.
- Barry Adams
- 04 Oct, 2024
- New York City
U.S. stocks advanced in early trading on Friday after nonfarm payrolls in September rose sharply, surpassing market expectations.
The S&P 500 index gained 0.6% and the Nasdaq Composite advanced more than 1% after the strong jobs report shifted attention back to the U.S. economy.
After weeks of rising tensions in the Middle East, investors have been on the defensive, and the strike by dockworkers added to the market gloom at the start of October.
However, strong job gains in September reinforced the view that the labor market is resilient despite the elevated interest rates and high cost of living.
The unemployment rate edged lower to 4.1%, but wages are still rising at 4.0%, inconsistent with the Fed's inflation rate of 2%.
Nonfarm Payrolls Expanded at the Fastest Pace in Six Months
The U.S. economy added 254,000 jobs in September from the upwardly revised 159,000 in August, the U.S. Bureau of Labor Statistics said in its monthly report.
Job additions in September were the strongest in the last six months and higher than the average over the prior 12 months.
Employment in food services and drinking places increased by 69,000, in healthcare by 45,000, in government by 31,000, and in social assistance by 27,000.
Employment changed little in financial activities, professional and business services, and transportation and warehousing.
In September, average hourly earnings for all employees on private nonfarm payrolls increased by 13 cents, or 0.4%, to $35.36, and average hourly earnings increased by 4.0% over the last 12 months.
The change in total nonfarm payroll employment for July was revised up by 55,000 to 144,000, and the change for August was revised up by 17,000 to 159,000.
With these revisions, employment in July and August combined is 72,000 higher than previously reported.
The unemployment rate increased to 4.1% from 3.8% a year ago, and the number of unemployed people rose to 6.8 million from 6.3 million, respectively.
Both the jobless rate and the number of unemployed people were changed little in September.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.7% to 5,739.55, the Nasdaq Composite rose 1.1% to 18,109.96, and the Russell 2000 index fell 0.6% to 2,180.55.
The yield on 2-year Treasury notes edged higher to 3.88%, 10-year Treasury notes inched up to 3.97%, and 30-year Treasury bonds inched higher to 4.27%.
WTI crude oil increased $0.97 to $74.68 a barrel, and natural gas prices edged up 2 cents to $2.99 a thermal unit.
Gold rose by $1.85 to $2,657.45 an ounce, and silver increased by $0.09 to $32.13.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 101.86.
U.S. Stock Movers
ZIM Integrated Shipping Services Ltd. plunged 11.4% to $19.21 after the port workers' union called off its strike following a tentative agreement.
The news weighed on other shipping companies in Europe and Japan, and Denmark-based A P Moeller-Maersk dropped more than 8%, Hapag Lloyd plunged 13%, and Nippon Yusen and Mitsui O.S.K. Lines declined more than 9%.
Rivian Automobile declined 6.8% to $10.04 after the luxury electric vehicle maker trimmed its annual production outlook.
The company estimated its annual production to range between 47,000 and 49,000, lower than its previous guidance of 57,000.
The company blamed the production revision on a shortage of key components.
Spirit Airlines plunged 32% to $1.52 after a Wall Street Journal report said that the company is considering filing for bankruptcy protection from its lenders.
- Inga Muller
- 04 Oct, 2024
- Frankfurt
European markets are on track to extend weekly losses between 1% and 3% amid rising tensions in the Middle East.
Crude oil prices rebounded 8% this week, stoking fears of resurgent inflation.
The DAX index increased by 0.2% to 19,046.54; the CAC-40 index rose by 0.5% to 7,515.22; and the FTSE 100 index declined by 0.2% to 8,245.95.
The yield on 10-year German bonds edged higher to 2.18%, French bonds inched higher to 2.97%, the UK gilts edged up to 4.07%, and Italian bonds increased to 3.50%.
Container shipping companies and port terminal operators in Europe fell sharply following the rapidly deteriorating situation in the Middle East.
AP Moeller-Maersk A/S decreased 5.3% to DKK 9,718.0, and Hapag Lloyd AG dropped 12% to €144.20.
Oil and gas explorers advanced after crude oil prices extended weekly gains to 8% amid worsening situations in the Middle East.
BP plc increased 1% to 413.35 pence, Shell PLC advanced 0.3% to 2,570.50 pence, TotalEnergies SE added 1.3% to €62.34, and Repsol jumped 5% to €12.19.
Eni SpA increased 1.6% to €14.34, and the Italian energy company won a contract for the Liverpool Bay CO2 transportation and storage project.
DSV A/S increased 7.3% to DKK 1,514.0 after the Danish logistics company raised €5 billion to partly finance its acquisition of Schenker.
Last month, DSV agreed to acquire Schenker from Deutsche Bahn in a transaction valued at €14.3 billion at enterprise value.
Hexagon Purus ASA dropped 15.5% to €0.81 after the Norwegian green automotive products provider mutually agreed to terminate its agreement with the Daimler Truck's U.S. subsidiary to provide battery-operated electric vocational vehicles.
Alstom SA soared 4.4% to €19.55 after the French rail mobility company reaffirmed its annual operating earnings margin of 6.5%, an improvement of 80 basis points from the previous year.
The company said EBIT margins are improving because of tighter cost control, higher sales, and a better product mix.
- Bridgette Randall
- 04 Oct, 2024
- London
European markets lacked direction, the euro held firm, and crude oil prices advanced in Friday's trading.
Benchmark indexes in London, Paris, Frankfurt, and Milan struggled to advance after the prospect of a wider and prolonged war in the Middle East escalated.
Crude oil prices soared more than 8% in London and approached $79 a barrel after Israel escalated its attacks on Beirut and expanded its incursion in southern Lebanon.
President Joe Biden told reporters in Washington that the U.S. government is in "discussion" with Israel about the potential Israeli strike targeting Iranian oil infrastructure.
“I don’t believe there’s going to be an all-out war. I think we can avoid it,” President Biden told reporters as he returned to the White House after surveying the area damaged by Hurricane Helene.
Israel is widely reported to be preparing for an air strike in retaliation to Tuesday's ballistic missile attack, which could include Iran's nuclear power facilities and oil infrastructure.
Shipping companies in Europe traded down on twin worries of rising tensions in the Middle East and the ongoing dockworkers strike at key U.S. ports on the East and Gulf Coasts.
Late Thursday, the port workers union and the United States Maritime Alliance, in a tentative deal, agreed to extend the current contract till January 15.
The tentative agreement averted the deepening disruptions to the supply chain that involved the shipment of fruits, pharmaceuticals, automobiles, and wood products, among other goods.
For the week, the FTSE 100 index is down about 1%, the DAX index 2%, and the CAC-40 index about 3%.
Europe Indexes and Yields
The DAX index increased by 0.2% to 19,046.54; the CAC-40 index rose by 0.5% to 7,515.22; and the FTSE 100 index declined by 0.2% to 8,245.95.
The yield on 10-year German bonds edged higher to 2.18%, French bonds inched higher to 2.97%, the UK gilts edged up to 4.07%, and Italian bonds increased to 3.50%.
The euro edged lower to $1.10; the British pound inched lower to $1.31; and the U.S. dollar weakened to 85.23 Swiss cents.
Brent crude increased $1.13 to $78.75 a barrel, and the Dutch TTF natural gas rose by €0.08 to €39.83 per MWh.
Europe Stock Movers
Leading container shipping companies and port terminal operators in Europe fell sharply following the rapidly deteriorating situation in the Middle East.
AP Moeller-Maersk A/S decreased 5.3% to DKK 9,718.0, and Hapag Lloyd AG dropped 12% to €144.20.
Oil and gas explorers advanced after crude oil prices extended weekly gains to 8% amid worsening situations in the Middle East.
BP plc increased 1% to 413.35 pence, Shell PLC advanced 0.3% to 2,570.50 pence, TotalEnergies SE added 1.3% to €62.34, and Repsol jumped 5% to €12.19.
Eni SpA increased 1.6% to €14.34, and the Italian energy company won a contract for the Liverpool Bay CO2 transportation and storage project.
DSV A/S increased 7.3% to DKK 1,514.0 after the Danish logistics company raised €5 billion to partly finance its acquisition of Schenker.
Last month, DSV agreed to acquire Schenker from Deutsche Bahn in a transaction valued at €14.3 billion at enterprise value.
Hexagon Purus ASA dropped 15.5% to €0.81 after the Norwegian green automotive products provider mutually agreed to terminate its agreement with the Daimler Truck's U.S. subsidiary to provide battery-operated electric vocational vehicles.
Alstom SA soared 4.4% to €19.55 after the French rail mobility company reaffirmed its annual operating earnings margin of 6.5%, an improvement of 80 basis points from the previous year.
The company said EBIT margins are improving because of tighter cost control, higher sales, and a better product mix.
- Akira Ito
- 04 Oct, 2024
- Tokyo
Stock market indexes in Tokyo advanced, and the yen dropped to a one-month low as investors overlooked rising tensions in the Middle East and the sharp rise in the crude oil prices.
The Nikkei 225 stock average increased 0.5% and the Topix index gained 0.4%, and both benchmark indexes advanced nearly 1.5% in the week.
Market indexes traded higher despite rising tensions in the Middle East and crude oil prices soaring as much as 5% in international trading.
For the week, crude oil prices have surged more than 8% as Israel stepped up its bombing attacks in Lebanon and escalated its land-grabbing activities in Gaza.
Moreover, the ongoing worker strike at 14 key ports on the U.S. East and Gulf Coasts has also impacted sentiment for Japanese exports to the region.
The yen weakened 0.5% to 146.08 following comments from the newly elected prime minister, Shigeru Ishiba, supporting a gradual increase in the interest rate.
The unexpected comments from Ishiba's cast doubt about the possibility of another rate cut this year as the Bank of Japan awaits additional rate cuts in the U.S. and Europe.
The large swings in the yen with a spillover effect on the stock market confirm that investors are still nervous about the future rate outlook and fiscal spending outlook under the new leadership.
Japan Stock Movers
The Nikkei 225 stock average added 0.5% to 38,630.54, and the broader Topix index edged up 0.4% to 2,694.21.
Tech stocks led the gainers in Tokyo trading and extended weekly gains following the rebound in semiconductor-related stocks.
Advantest Corp. increased 1.2% to ¥6,950.0, Tokyo Electron fell 2% to ¥25,245.0, Lasertec added 0.04% to ¥23,715.0, and Shin-Etsu Chemical Company decreased 0.7% to ¥6,001.0.
Shipping companies plunged following the escalation of violence in the Middle East and the ongoing dockworker strike in the U.S. East and Gulf Coasts.
Nippon Yusen plunged 9.3% to ¥4,977.0, Mitsui O.S.K. Lines dropped 6.3% to ¥4,820.0, and Kawasaki Kisen Kaisha declined 9.6% to ¥2,070.0.
Retailers participated in the market rebound as the weaker yen boosted demand from foreign tourists.
Seven & I Holdings increased 3.5% to ¥2,194.50, Fast Retailing advanced 1.4% to ¥49,140.0, and Isetan Mitsukoshi added 0.5% to ¥2,309.0.
Mitsubishi UFJ Financial increased 2.2% to ¥1,480.50, Sumitomo Mitsui added 1.9% to ¥3,089.0, and Mizuho Financial gained 1.6% to ¥2,966.50.
- Li Chen
- 04 Oct, 2024
- Hong Kong
Hong Kong stocks advanced, overcoming morning jitters as investors poured more money into large-cap stocks.
The Hang Seng index rebounded from the morning losses of nearly 2% as investors increased exposure to tech stocks, banks, property developers, and oil explorers.
Market indexes in Hong Kong advanced as new domestic and international fund flows drove demand for large-cap stocks.
Investors bid up stocks for the third consecutive week in a row in the hopes that the Chinese authorities are preparing for a big and bold fiscal stimulus package targeting the residential property market.
The Hang Seng index is set to increase 9% in the current week, following a 13% increase in the previous week, the sharpest two consecutive weeks of gains in 26 years.
Financial markets in China have rebounded a whopping 23% since the announcement of monetary stimulus measures on September 24; however, the real economy continues to lag market expectations amid ongoing weakness in manufacturing.
Moreover, investor enthusiasm may be misplaced, as the stock market rally petered out following the expectations of an economic rebound after the ending of coronavirus restrictions at the end of January 2023.
China Stock Movers
The Hang Seng Index increased 1.9% to 22,529.97, and financial markets in mainland China are set to resume trading next Tuesday.
Alibaba Group jumped 3.2% to HK $113.50, Tencent Holdings advanced 2.1% to HK $476.0, Meituan jumped 3.2% to HK $212.0, and Baidu Inc. added 1.1% to HK $110.10.
Longfor Group added 1.4% to HK $17.22, China Vanke decreased 5.2% to HK $11.24, China Resources Land advanced 1.5% to HK $30.20, and Sun Hung Kai Properties fell 0.8% to HK $89.30.
Bank of China added 0.5% to HK $3.83, China Merchants Bank gained 0.4% to HK $45.55, and HSBC was unchanged at HK $69.40.
PetroChina advanced 3% to HK $6.74, CNOOC added 2.2% to HK $21.40, China Petroleum and Chemical gained 2.2% to HK $5.31, and China Shenhua increased 2.7% to HK $36.35.
- Arun Goswami
- 04 Oct, 2024
- Mumbai
Stocks in Mumbai extended weekly losses as violence escalated in the Middle East.
Crude oil jumped 5% in international trading and extended weekly gain to over 8% amid growing worries of a potential Israeli strike on Iran's oil infrastructure.
The Sensex index decreased by 0.5% to 82,096.24, and the Nifty index fell by 0.3% to 25,166.60.
On the Mumbai stock exchange, 70 stocks traded at their 52-week highs, and 40 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds inched higher to 6.77%, and the Indian rupee eased to 83.96 against the U.S. dollar.
The gold price decreased by 0.1% to ₹75,872 per ten grams, and silver edged up by 0.5% to ₹92,870 per kilo.
Crude oil increased by 4.0% to ₹6,174 per barrel, and natural gas was up 2.5% to ₹249.60 per thermal unit.
Piramal Enterprises declined 4.5% to ₹1,052.95, and the financial services company plans to increase its retail assets under management to one lakh crore rupees from the current ₹50,000 crore over the next three years.
Ola Electric Mobility declined 2.5% to ₹100.0, and the company said its September unit sales fell to the lowest monthly amount in the year so far.
Ashok Leyland increased 0.5% to ₹232.0, and the company entered into a joint venture with the Japan-based Nidec Corporation to develop advanced electric drive systems for commercial vehicles.
Refex Industries increased 3% to ₹557.0, and the company said it plans to raise ₹927.8 crore through a preferential equity offering.
The company's promoter group plans to invest ₹372 crore and the company is seeking ₹530 crore from high-net-worth individuals.
Bank of Baroda increased 1.1% to ₹247.81, and the company plans to sell its Oman-based operations to Bank Dhofar to rationalize its operations.
Bank of Baroda's Oman business generates 113.4 million Omani Rials.
Reliance Power decreased 4.2% to ₹51.30, and the renewable energy company is planning to raise ₹4,135 crore through the sale of foreign currency convertible bonds yielding 5%.
Biocon Ltd. decreased 0.8% to ₹353.80, and the company's subsidiary refinanced its $1 billion in long-term debt through the sale of senior secured notes due 2029 with a coupon rate of 6.67% per year.
With the help of the offering, the company will be able to defer $250 million in loan payment by five years and improve its liquidity after the offering.
- Alexander Garcia
- 03 Oct, 2024
- Miami
Stocks struggled to advance on Wall Street amid rising tensions in the Middle East, and investors awaited the release of nonfarm payrolls data on Friday.
The S&P 500 index decreased 0.4%, the 4asdaq Composite declined 0.3%, and the crude oil price extended its weekly gain to 5% amid escalating tensions in the Middle East.
Tensions in the Middle East rose after Israel escalated its attack on Beirut and continued its ground offensive in Gaza.
Market sentiment soured on the growing worries that Israel is likely to target the oil infrastructure of Iran, further lifting oil prices and stoking inflation.
Losses on Wall Street were muted after the service sector index showed its strongest performance in September, according to the latest update by the Institute of Supply Management.
The ISM Service Index showed that 54.9% of businesses reported expansion, up from 51.9% in August and the best reading since February 2023.
The service sector activities expanded for the 49th month in 52 months, highlighting the strength in new orders and business activity expansion.
Initial jobless claims increased by 6,000 to 225,000 in the last week, and continuing claims were little changed at 1.826 million, the U.S. Department of Labor reported Thursday.
The initial claims rose to a record high, confirming the labor market softening trend and supporting the case for a possible rate cut at each of the remaining policy meetings in the year.
U.S. Indexes and Treasury Yields
The S&P 500 index decreased 0.4% to 5,709.83, the Nasdaq Composite fell 0.4% to 17,855.19, and the Russell 2000 index fell 0.7% to 2,179.05.
The yield on 2-year Treasury notes edged higher to 3.70%, 10-year Treasury notes inched up to 3.80%, and 30-year Treasury bonds inched higher to 4.17%.
WTI crude oil increased $3.73 to $73.82 a barrel, and natural gas prices edged up 8 cents to $2.92 a thermal unit.
Gold fell by $1.52 to $2,658.70 an ounce, and silver increased by $0.25 to $32.10.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 101.96.
U.S. Stock Movers
Levi Strauss dropped 7.2% to $19.49, and the denim maker reported mixed results in the third quarter.
Bank of America declined 0.9% to $38.91 after Warren Buffett Controlled Berkshire Hathaway continued to lighten its holding in the bank.
Berkshire sold 8.5 million shares over the last three days for $338 million, according to the latest SEC filing.
Berkshire, the diversified conglomerate, started selling its holding in the bank since mid-July and now lowered its stake to 10.2%.
Hims & Hers Health dropped 14% to $16.30, and investors fear a sharp fall in demand for its pharmaceutical preparation as an alternative to Eli Lilly's GLP-1 treatment.
The Food and Drug Administration said that the GLP-1 treatment shortage has been resolved, which is likely to reduce the addressable market for Hims & Hers compounds.
Hims & Hers sells injections of semaglutide, a key ingredient used in Wegovy, the rival drug made by Novo Nordisk, which remains on the FDA's shortage list.
Nvidia Corp. jumped 3.1% to $122.59, and the company's chief executive confirmed that Blackwell, its next generation artificial intelligence processor, "is in full production."
“Blackwell is in full production, Blackwell is as planned, and the demand for Blackwell is insane,” CEO Jensen Huang said in an interview with CNBC on Wednesday.
Crude oil explorers traded higher after crude oil prices extended their weekly rise to above 5% after tensions escalated in the Middle East.
Exxon Mobil jumped 1% to $122.96, Chevron rose 0.7% to $122.96, and Occidental Petroleum added 1.6% to $54.30.
European Markets Turn Lower Amid Rising Middle East Tensions
Stock market indexes in Europe turned lower as tensions in the Middle East rose and the stimulus rally in China faded.
Benchmark indexes in Paris, Frankfurt, Milan, and London headed lower as investors reviewed the latest economic updates in the region.
Investors turned cautious after Israel stepped up its military offensive in Beirut and vowed to mount a solid retaliatory response to recent missile attacks from Iran.
The escalating tensions between Iran and Israel raised the prospect of crude oil supply disruptions in the Middle East.
Eurozone Producer Price Inflation Eases in August
Eurozone producer price inflation continued to ease in August, driven by weaker energy prices.
Producer price inflation in the currency union slowed to 0.6% in August, following a downwardly revised 0.7% increase in July, according to a report released by Eurostat.
On an annual basis, producer price inflation fell 2.3% from a downwardly revised 2.2% decline in the previous month.
Excluding energy, producer price inflation held steady at 0.3% in August.
Among the four largest economies in the currency union, producer prices on a monthly basis rose 0.2% in Germany and France, 1.2% in Italy, and 1.5% in Spain.
Swiss Inflation Drops to a 3-Year Low
Consumer price inflation in Switzerland decelerated to 0.8% in September from 1.1% in August, the Swiss Federal Statistical Office reported Thursday.
The inflation fell to the lowest level since September 2021, and dropped below 1% for the first time in three years.
Eurozone Private Sector Activities Contracted in September
The private sector activities contracted in the Euro Area for the first time in 2024, according to data compiled by S&P Global.
The final HCOB Eurozone Composite PMI Output Index fell to 49.6 in September from a three-month high of 51.0 in the previous month. The output index was estimated at 48.9 in the preliminary estimate.
Private sector activities contracted month-to-month simultaneously in Germany, France, and Italy for the first time in 2024 so far.
The German private sector output contracted for the third month in a row and fell at the fastest pace since February, and contraction resumed in France after the Olympic Games boost in August.
Italy's private sector activities index decreased for the first time in September, but the decline was marginal, and the index of activities eased to 49.7 from 50.7 in August.
Spain's private sector growth accelerated to a four-month high in September, driven by an increase in manufacturing and service sector activities.
The composite output index increased to 56.3 in September, up from 53.5 in August.
Europe Indexes and Yields
The DAX index decreased by 0.8% to 19,015.41; the CAC-40 index fell by 1.3% to 7,477.78; and the FTSE 100 index rose by 0.1% to 8,282.52.
The yield on 10-year German bonds edged higher to 2.14%, French bonds inched higher to 2.92%, the UK gilts edged up to 4.03%, and Italian bonds increased to 3.50%.
The euro edged lower to $1.10; the British pound inched lower to $1.31; and the U.S. dollar weakened to 85.05 Swiss cents.
Brent crude increased $3.82 to $77.72 a barrel, and the Dutch TTF natural gas fell by €0.88 to €38.77 per MWh.
Europe Stock Movers
Deutsche Lufthansa increased 0.2%, and the German state-controlled carrier said it is resuming flights to certain destinations in the Middle East.
The international flight operator also said the carrier plans to avoid airspace used by Iran and Iraq due to ongoing conflicts in the region.
Alstom SA increased 2.4% to €18.79 after the French mobility company received orders from supply chain procurement company Proxima for 12 high-speed trains.
SAP SE decreased 1.3% to €201.45, and the Germany company is under investigation by the U.S. Department of Justice for the alleged price-fixing practices.
Vonovia SE declined 1.5% to €33.11, and the German residential landlord confirmed total cash inflow of about €4 billion in 2024, matching the level in the previous year.
LANXESS AG declined 1.8% to €28.76, and the German chemical company agreed to sell its Urethane Systems business to Japan-based UBE Corporation.
Tesco PLC increased 2.3% to 363.10 pence after the British grocery company reported an increase in revenue and profit in the first half and lifted its annual outlook.
British Land Company declined 1.1% to 433.0 pence, and the property firm said it acquired seven retail properties for £441 million.
Japan Indexes Rebounded After Rate-Hike Worries Eased
Stock market sentiment rebounded in Tokyo after falling sharply in the previous session amid rising tensions in the Middle East.
The Nikkei 225 stock average jumped 2% and the Topix index increased more than 1% as the yen fell to a one-month low of 146.55 against the U.S. dollar.
The recently appointed prime minister, Shigeru Ishiba, said it is too soon to raise the interest rate after a meeting with Bank of Japan Governor Kazuo Ueda.
Prime Minister Ishiba's comments weakened the yen and pushed export heavy stocks higher in Tokyo.
On the economic front, the au Jibun Bank Japan Services PMI for September was revised lower to 53.1 from the preliminary estimate of 53.9.
Despite the slight easing of activities in the service sector, the index expanded for the third month in a row. but new orders rose modestly amid weak growth in export orders.
On the price front, input costs increased, driven by higher import costs because of the yen's weakness and rising wages; however, the increase was the lowest in six months.
Japan Stock Movers
The Nikkei 225 stock average rose 2% to 38,581.96, and the broader Topix index advanced 1.2% to 2,685.42.
Tech stocks led the gainers in Tokyo as investors overlooked the growing prospects of a wider war in the Middle East.
Tokyo Electron increased 2.7% to ¥25,760.0, Advantest Corp. gained 4.7% to ¥6,865.0, and Lasertec Corp. added 4% to ¥23,705.0.
Banks and financial services companies advanced after the yen weakened to a one-month low.
Mitsubishi UFJ Financial increased 0.1% to ¥1,448.50, Sumitomo Mitsui Financial added 0.2% to ¥3,032.0, but Mizuho Financial edged down 1.3% to ¥2,919.0.
Shipping companies were in focus for the second week in a row, as the U.S. port workers strike showed no sign of ending in the near future.
Nippon Yusen jumped 3.5% to ¥5,485.0, Kawasaki Kisen Kaisha added 3.6% to ¥2,290.0, and Mitsui O.S.K. Lines increased 2.5% to ¥5,149.0.
Hong Kong Indexes Plunged 4% as Market Rally Ran Out of Steam
Hong Kong market indexes declined for the first time in seven days after investors turned cautious.
Benchmark indexes in Hong Kong declined as much as 4% and halted a 6-day rally that saw indexes soar more than 23%.
Financial markets in mainland China are closed for the Golden Week holidays, and trading is set to resume next Tuesday.
The $3 trillion rally over the last six trading sessions in China indexes was powered by a raft of monetary policy measures to revive investor confidence and facilitate residential property market transactions.
Initial market enthusiasm turned into a market frenzy after local governments in Shanghai, Shenzhen, and Guangzhou eased home buying restrictions and lowered down payment requirements.
Property stocks soared as much as 60% over the last six sessions as retail investors rushed to increase exposure to residential property developers and companies linked to the construction industry.
China's president Xi Jinping signaled big fiscal stimulus at a hastily arranged Politburo meeting last week, stoking the market rally further.
The People's Bank of China's $141 billion package to revive investor confidence and the property market is likely to fall far short of what is needed to revive consumer confidence.
Moreover, the announced monetary stimulus measures are not deep and broad enough to change the nature of the business cycle, consumer mood, and revive the flailing job market.
Investors are still holding out for more gains after the release of fiscal measures over the next two weeks, but previous measures by the government have failed to change China's growth trajectory.
China Stock Movers
The Hang Seng index decreased 2.8% to 21,818.41, and financial markets in mainland China are set to resume trading next week.
Property stocks trimmed gains of the previous session after investors questioned the strength of the market rally.
China Vanke increased 0.7% to HK $12.08, China Resources Land plunged 5.9% to HK $29.80, Longfor Group dropped 8.5% to HK $17.14, and Sun Hung Kai Properties declined 1.6% to HK $89.70.
Electric vehicle makers erased gains of the previous session, despite five leading makers reporting a sharp gain in September unit sales.
Li Auto declined 3.7% to HK $117.0, BYD fell 1% to HK $296.40, NIO jumped 6% to HK $55.60, and Xpeng dropped 6.3% to HK $51.55.
Alibaba Group dropped 4% to HK $110.40, Tencent Holding declined 1.1% to HK $464.80, and Baidu Inc. dropped 4.7% to HK $109.80.
- Scott Peters
- 03 Oct, 2024
- New York City
Levi Strauss dropped 7.2% to $19.49, and the denim maker reported mixed results in the third quarter.
Bank of America declined 0.9% to $38.91 after Warren Buffett Controlled Berkshire Hathaway continued to lighten its holding in the bank.
Berkshire sold 8.5 million shares over the last three days for $338 million, according to the latest SEC filing.
Berkshire, the diversified conglomerate, started selling its holding in the bank since mid-July and now lowered its stake to 10.2%.
Hims & Hers Health dropped 14% to $16.30, and investors fear a sharp fall in demand for its pharmaceutical preparation as an alternative to Eli Lilly's GLP-1 treatment.
The Food and Drug Administration said that the GLP-1 treatment shortage has been resolved, which is likely to reduce the addressable market for Hims & Hers compounds.
Hims & Hers sells injections of semaglutide, a key ingredient used in Wegovy, the rival drug made by Novo Nordisk, which remains on the FDA's shortage list.
Nvidia Corp. jumped 3.1% to $122.59, and the company's chief executive confirmed that Blackwell, its next generation artificial intelligence processor, "is in full production."
“Blackwell is in full production, Blackwell is as planned, and the demand for Blackwell is insane,” CEO Jensen Huang said in an interview with CNBC on Wednesday.
Crude oil explorers traded higher after crude oil prices extended their weekly rise to above 5% after tensions escalated in the Middle East.
Exxon Mobil jumped 1% to $122.96, Chevron rose 0.7% to $122.96, and Occidental Petroleum added 1.6% to $54.30.
- Barry Adams
- 03 Oct, 2024
- New York City
Stocks wavered on Wall Street amid rapidly escalating tensions in the Middle East, and the dockworkers strike showed no signs of easing.
The S&P 500 index decreased 0.1%, the Nasdaq Composite declined 0.2%, and the crude oil price extended its weekly gain to 5% amid escalating tensions in the Middle East.
Tensions in the Middle East rose after Israel escalated its attack on Beirut and continued its ground offensive in Gaza.
Market sentiment soured on the growing worries that Israel is likely to target the oil infrastructure of Iran, further lifting oil prices and stoking inflation.
Losses on Wall Street were muted after the service sector index showed its strongest performance in September, according to the latest update by the Institute of Supply Management.
The ISM Service Index showed that 54.9% of businesses reported expansion, up from 51.9% in August and the best reading since February 2023.
The service sector activities expanded for the 49th month in 52 months, highlighting the strength in new orders and business activity expansion.
Initial jobless claims increased by 6,000 to 225,000 in the last week, and continuing claims were little changed at 1.826 million, the U.S. Department of Labor reported Thursday.
The initial claims rose to a record high, confirming the labor market softening trend and supporting the case for a possible rate cut at each of the remaining policy meetings in the year.
U.S. Indexes and Treasury Yields
The S&P 500 index decreased 0.1% to 5,709.83, the Nasdaq Composite fell 0.2% to 17,941.08, and the Russell 2000 index fell 0.5% to 2,183.22.
The yield on 2-year Treasury notes edged higher to 3.70%, 10-year Treasury notes inched up to 3.80%, and 30-year Treasury bonds inched higher to 4.17%.
WTI crude oil increased $3.32 to $73.29 a barrel, and natural gas prices edged up 7 cents to $2.96 a thermal unit.
Gold fell by $10.66 to $2,649.42 an ounce, and silver decreased by $0.08 to $31.76.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 101.93.
U.S. Stock Movers
Levi Strauss dropped 7.2% to $19.49, and the denim maker reported mixed results in the third quarter.
Bank of America declined 0.9% to $38.91 after Warren Buffett Controlled Berkshire Hathaway continued to lighten its holding in the bank.
Berkshire sold 8.5 million shares over the last three days for $338 million, according to the latest SEC filing.
Berkshire, the diversified conglomerate, started selling its holding in the bank since mid-July and now lowered its stake to 10.2%.
Hims & Hers Health dropped 14% to $16.30, and investors fear a sharp fall in demand for its pharmaceutical preparation as an alternative to Eli Lilly's GLP-1 treatment.
The Food and Drug Administration said that the GLP-1 treatment shortage has been resolved, which is likely to reduce the addressable market for Hims & Hers compounds.
Hims & Hers sells injections of semaglutide, a key ingredient used in Wegovy, the rival drug made by Novo Nordisk, which remains on the FDA's shortage list.
Nvidia Corp. jumped 3.1% to $122.59, and the company's chief executive confirmed that Blackwell, its next generation artificial intelligence processor, "is in full production."
“Blackwell is in full production, Blackwell is as planned, and the demand for Blackwell is insane,” CEO Jensen Huang said in an interview with CNBC on Wednesday.
Crude oil explorers traded higher after crude oil prices extended their weekly rise to above 5% after tensions escalated in the Middle East.
Exxon Mobil jumped 1% to $122.96, Chevron rose 0.7% to $122.96, and Occidental Petroleum added 1.6% to $54.30.