- Inga Muller
- 13 Aug, 2024
- Frankfurt
European markets struggled to advance amid rate path uncertainties and weakening investor sentiment.
The DAX index decreased by 0.2% to 17,689.34; the CAC-40 index fell by 0.3% to 7,233.12; and the FTSE 100 index decreased by 0.1% to 8,197.14.
The yield on 10-year German bonds edged lower to 2.20%, French bonds inched down to 2.95%, the UK gilts edged lower to 3.90%, and Italian bonds inched up to 3.61%.
Just Group soared 17% to 137.20 pence after the retirement income and services provider reported better-than-expected first-half results and lifted its 2024 estimates.
Dowlais Group decreased 8% to 53.85 pence after the UK-based automotive parts maker reported a wider loss in the first half and the company lowered its annual revenue outlook.
Valneva SE increased 5.2% to €3.23, and the French biotech company's net income in the first half swung to profit and confirmed its annual revenue outlook.
Brenntag SE declined 1% to €63.22, and the German chemical distributor lowered its full-year estimate.
Evotec SE gained 3.4% to €5.58, and the German drug maker achieved a significant milestone in its partnership with Bristol Myers Squibb, triggering a performance-based payment of $75 million.
HelloFresh SE jumped 10.9% to €5.99 after the meal-kit provider reported better-than-expected results in the second quarter.
- Bridgette Randall
- 13 Aug, 2024
- London
European markets lacked direction in Tuesday's trading, and investors awaited the release of key economic data in the eurozone, the U.S., and the U.K.
Benchmark indexes in Paris, London, and Frankfurt headed lower and extended recent losses amid rate path uncertainties and a weak economic outlook.
The U.K. jobless rate eased to 4.2% in the three months to June from 4.4% in the period to May, according to the latest data released by the Office for National Statistics.
Regular pay excluding bonuses increased 5.4% to £645 per week in three months to June, according to a separate report released by the ONS.
The weekly pay increase slowed from 5.8% in the previous three-month period ending in May.
Adjusted for inflation, regular weekly pay, excluding bonus, increased to 2.4%, slower than 2.5% in the previous three-month period.
The ZEW Indicator of Economic Sentiment for the eurozone decreased for the second month in a row in August 2024, falling 25.8 points to a nine-month low of 17.9.
The weakening domestic economic backdrop, rising tensions in the Middle East, and ongoing war in Ukraine contributed to the deterioration in sentiment for the second month in a row.
In the meantime, the indicator of the current economic situation increased by 3.7 points to -32.4, and inflation expectations edged up by 2 points to -39.1.
Europe Indexes and Yields
The DAX index decreased by 0.2% to 17,689.34; the CAC-40 index fell by 0.3% to 7,233.12; and the FTSE 100 index decreased by 0.1% to 8,197.14.
The yield on 10-year German bonds edged lower to 2.20%, French bonds inched down to 2.95%, the UK gilts edged lower to 3.90%, and Italian bonds inched up to 3.61%.
The euro edged down to $1.09; the British pound inched lower to $1.272; and the U.S. dollar weakened to 86.69 Swiss cents.
Brent crude decreased $0.69 to $82.03 a barrel, and the Dutch TTF natural gas fell by €0.41 to €39.41 per MWh.
Europe Stock Movers
Just Group soared 17% to 137.20 pence after the retirement income and services provider reported better-than-expected first-half results and lifted its 2024 estimates.
Dowlais Group decreased 8% to 53.85 pence after the UK-based automotive parts maker reported a wider loss in the first half and the company lowered its annual revenue outlook.
Valneva SE increased 5.2% to €3.23, and the French biotech company's net income in the first half swung to profit and confirmed its annual revenue outlook.
Brenntag declined 1% to €63.22, and the German chemical distributor lowered its full-year estimate.
Evotec SE gained 3.4% to €5.58, and the German drug maker achieved a significant milestone in its partnership with Bristol Myers Squibb, triggering a performance-based payment of $75 million.
HelloFresh SE jumped 10.9% to €5.99 after the meal-kit provider reported better-than-expected results in the second quarter.
- Akira Ito
- 13 Aug, 2024
- Tokyo
Investors bid up stocks after trading resumed following a three-day holiday as market sentiment stabilized after wild swings in the previous week.
The Nikkei 225 stock average gained 3%, and the Topix index gained 2.6%.
Market sentiment turned positive after a week of tumultuous trading that saw the Nikkei plunge 12.4%, recording the single-largest point decline, but managed to recover the losses in the following session, in the record point gains.
Bank of Japan's unexpected rate cut and hawkish rate outlook contributed to the wild swings in markets last week, forcing Deputy Governor of the Bank of Japan Shinichi Uchida to comment that the central bank will refrain from raising rates when markets are unstable, calming market nerves.
The yen traded at 147.67 against the U.S. dollar and weakened from the eight-month high as investors worried that the Bank of Japan's reluctance to lift rates will continue to keep pressure on the yen.
Market sentiment was also bolstered after the producer price index increased 3% in July, the Bank of Japan reported Tuesday.
Producer prices increased after energy costs rose, driven by the ending of government subsidies.
Producer prices accelerated for the sixth month in a row and increased to 3% for the first time since August 2023, after the yen-denominated costs of imported goods and materials soared 10.8%.
Producer price inflation in June was 2.9%.
Weaker yen has contributed to higher prices for imported food, fuel, and materials, but the recent rebound in the yen may slow inflation in the months ahead.
Japan Stock Movers
The Nikkei 225 stock average jumped 3% to 36,096.44, and the Topix index advanced 2.6% to 2,546.76.
Tech stocks were among the leading gainers Tuesday's trading following the rebound in artificial intelligence-linked stocks in New York.
Tokyo Electron gained 6.3% to ¥27,430.0, Advantest Corp. jumped 7.3% to ¥6,217.0, and Screen Holdings increased 7.3% to ¥10,390.0.
Rakuten Group advanced 8.8% to ¥847.90, and Trend Micro jumped 5.4% to ¥8157.0.
Mitsubishi UFJ Financial increased 1.7% to ¥1,435.0, Sumitomo Mitsui advanced 3.6% to ¥9,296.0, and Mizuho Financial gained 2.7% to ¥2,855.0.
Sharp Corp. declined 5.7% to ¥817.60 and Nippon Express declined 2.5% to ¥6,717.0.
Meiji Holdings dropped 5.2% to ¥3,452.0, and the company reported better-than-expected June quarter revenue of 279 billion yen and earnings per share of 50.23 yen.
- Li Chen
- 13 Aug, 2024
- Hong Kong
Benchmark indexes in Shanghai and Hong Kong struggled to advance amid ongoing economic growth worries and mixed corporate performance.
The Hang Seng Index added 0.2%, but the CSI 300 index edged down 0.2% as investors awaited the release of a flood of economic data later in the week.
The Hang Seng index extended gains for the fifth session in a row, and the benchmark index rebounded but hovered near its three-month low.
Moreover, trading contracted on the Hong Kong Stock Exchange, and stock trading volume dropped to a six-month low of HK $70.3 billion or US$9 billion on Monday, according to the data available from the exchange.
China's statistics bureau is scheduled to release retail sales, industrial output, fixed asset investment, and home price data later in the week.
Market sentiment has been cautious after consumer price inflation advanced for the sixth month in a row in July, but producer price inflation declined for the 22nd month in a row, confirming the deflation trend.
Investors are also worried that the recent gains in exports may come to a halt in the second half as punitive tariffs kick in in the U.S. and Europe, contributing to the economic slowdown in the period.
China Stock Movers
The Hang Seng index increased 0.3% to 17,155.99, and the CSI 300 index fell 0.2% to 3,320.61.
Tencent Holdings jumped 1% to HK $378.60, and the diversified Internet services provider is scheduled to release its earnings on Wednesday.
Investors are estimating earnings to jump more than 50% in the second quarter compared to a year ago.
Country Garden Services decreased 5.5% to HK $4.44, and the company said profit in the first half declined 37% from a year ago to 1.7 billion yuan, or $237 million.
Country Garden Services estimated first-half revenue between 20.9 billion yuan and 21.2 billion yuan and net income between 1.47 billion yuan and 1.65 billion yuan.
The company said it lowered its revenue estimate because of property market weakness and reduced investment income.
Despite the current market weakness, the company expects over $12.2 billion in cash reserves at the end of the first half, as it plans to tighten its risk management and cut costs to improve profitability.
- Arun Goswami
- 13 Aug, 2024
- Mumbai
Consumer price inflation slowed in July because of a higher food price base effect, and industrial output slowed in June, driven by a slowdown in government spending during the national election period.
The Sensex index decreased by 0.2% to 79,504.21, and the Nifty index fell 0.2% to 24,301.20.
On the Mumbai stock exchange, 122 stocks traded at their 52-week highs, and 10 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds inched lower to 6.88%, and the Indian rupee weakened to ₹83.95 against the U.S. dollar.
Power Grid Corporation increased 0.3% to ₹342.0, and the company said it won a contract to build and operate a power transmission network connecting Rajasthan REZ Phase II for a 20 GW power supply.
Balrampur Chini Mills gained 0.2% to ₹497.15, and the sugar producer reported a decline in profit in the June quarter because of the shortage of sugarcane crops.
Revenue increased 2.3% to ₹1,421.6 crore from ₹1,389.6 crore, but net income declined 4.6% to ₹70.2 crore from ₹73.50 crore a year ago.
Hindustan Copper added 4.2% to ₹315.45, and the mining company said consolidated net income in the June quarter more than doubled.
Revenue increased to ₹500.4 crore from ₹384.7 crore, and net income soared to ₹113.4 crore from ₹47.3 crore a year ago, respectively.
NMDC advanced 1% to ₹232.09, and the iron ore mining company reported flat consolidated revenue in the June quarter.
Demand for iron ore was driven by higher infrastructure spending by the government.
Revenue stood at ₹5,414.2 crore, and net income increased 19% to ₹1,971 crore from ₹1,652.2 crore a year ago.
IRFC gained 2.2% to ₹188.52, and the railway finance company reported a slight increase in earnings in the June quarter.
Revenue increased 1.4% to ₹6,765.63 crore from ₹6,673.87 crore, and net income advanced 1.6% to ₹1,576.83 crore from ₹1,551.27 crore a year ago, respectively.
- Alexander Garcia
- 12 Aug, 2024
- Miami
Market indexes in New York struggled to extend gains after a week of wild gyration and heightened volatility.
Earlier in previous the week, benchmark indexes extended the previous week's losses to 10%, but they recovered and reversed all losses as market sentiment stabilized.
Last week's global market rout was rooted in worries about the U.S. economic slowdown after nonfarm payrolls in July rose at a slower than expected pace and the tightening of labor market conditions.
However, market sentiment recovered after initial jobless claims fell more than expected, suggesting the labor market is still healthier than previously estimated.
This week, investors are looking forward to the release of producer price inflation on Tuesday, consumer price inflation on Wednesday, and retail sales on Thursday.
Investors are hoping that the Federal Reserve is set to start the rate-cut cycle with the first cut after the September meeting; however, those hopes may be dashed if inflation stays near or above 3%, as it has for several months now.
Federal Reserve Chair Jerome Powell has confirmed after the latest policy meeting that policymakers are open to trimming interest rates if inflation continues to follow a downward path to its target rate of 2%.
However, despite multiple rate hikes over 2022 and 2023, inflation has slowed from as high as nearly 9% to 3%.
July’s consumer price inflation is estimated at 2.9%, and core inflation is estimated to stay near 3.2%, higher than the Fed’s target rate of 2%.
Retail sales, unadjusted for inflation but adjusted for calendar and seasonal factors, in July are likely to expand by 0.3%.
U.S. Indexes and Treasury Yields
The S&P 500 index gained 0.2% to 5,354.41, the Nasdaq Composite advanced 0.5% to 16,829.33, and the Russell 2000 index declined 1.0% to 2,059.10.
The yield on 2-year Treasury notes edged higher to 4.08%, 10-year Treasury notes increased to 3.96%, and 30-year Treasury bonds inched lower to 4.24%.
WTI crude oil increased $2.31 to $79.15 a barrel, and natural gas prices edged up 4 cents to $2.18 a thermal unit.
Gold increased by $33.84 to $2,464.44 an ounce, and silver increased by $0.48 to $27.93.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 103.16.
U.S. Stock Movers
Starbucks increased 2.3% to $76.82 after The Wall Street Journal reported that activist investor Starboard Value acquired a stake in a coffee retail store chain to seek a higher stock price.
JetBlue Airways dropped 10.8% to $5.41, and the regional airline said it plans to issue $400 million of convertible senior notes in 2029.
KeyCorp jumped 16.6% to $17.04, and The Bank of Nova Scotia acquired a 14.9% stake in the Cleveland-based bank for $2.8 billion in cash.
European Indexes Trim Early Gains Amid Rate Path Anxieties
European markets attempted to shake off economic growth anxieties after a week of wild gyrations.
Benchmark indexes in London, Paris, and Frankfurt traded around flatline as investors looked forward to the release of key economic data in the U.S. and Europe later in the week.
The Euro Area’s second-quarter GDP is expected to grow by 0.3%, as confirmed by the second estimate scheduled to be released next week, and the international trade balance in the Eurozone is expected to show a modest increase in its surplus.
In the UK, investors are looking forward to the release of second-quarter GDP growth of 0.6%, and the jobless rate is estimated at 4.5%.
In the U.S., consumer price and producer price inflation reports and retail sales updates are expected to shed more light on the future interest rate course.
July’s consumer price inflation is estimated at 2.9%, and core inflation is estimated to stay near 3.2%, higher than the Fed’s target rate of 2%.
Retail sales, unadjusted for inflation but adjusted for calendar and seasonal factors, in July are likely to expand by 0.3%.
In the absence of economic data, investors reacted to the latest corporate earnings announcements from Hanover Re, Munich Re, L'Occitane, Remy Cointreau, British Land Company, and Severn Trent.
Europe Indexes and Yields
The DAX index increased by 0.02% to 17,726.47; the CAC-40 index fell by 0.3% to 7,250.67; and the FTSE 100 index advanced by 0.5% to 8,210.25.
The yield on 10-year German bonds edged higher to 2.24%, French bonds inched higher to 2.99%, the UK gilts inched higher to 3.96%, and Italian bonds inched up to 3.66%.
The euro edged down to $1.09; the British pound inched lower to $1.272; and the U.S. dollar weakened to 86.92 Swiss cents.
Brent crude increased $1.59 to $81.55 a barrel, and the Dutch TTF natural gas fell by €0.15 to €39.91 per MWh.
Europe Stock Movers
Hanover Re rose 4.7% to €226.30, and the reinsurance company reported higher sales and earnings and confirmed its annual outlook.
Munich Re gained 1.2% to €440.0, and the German reinsurance company reported better-than-expected second quarter sales and earnings.
Revenue increased 12% to €15.4 billion, and net income soared 41% to €1.62 billion, driven by a higher profit margin of 11% compared to 8.4% a year ago.
China-linked luxury stocks traded down amid ongoing economic slowdown worries and a protracted property market slump.
Kering SA dropped 1.4% to €250.90, LVMH decreased 0.01% to €636.10, and Remy Cointreau fell 1% to €70.45.
Land Securities Group decreased 0.3% to 618.50 pence, and British Land Company declined 0.6% to 395.0 pence.
Investors Brace for Volatile Yen Amid BoJ's Reluctance to Lift Rates
Benchmark indexes in Japan rebounded in Friday's trading as market sentiment stabilized after a week of wild swings, sharp declines, and rebounds.
Financial markets are closed on Monday to celebrate the Mountain Day holiday.
In Friday's trading, the Nikkei 225 stock average gained 0.6% and the Topix index jumped close to 1% as investors reassessed the future rate path and its implications for the yen.
The yen traded at 147.23 against the U.S. dollar after the Bank of Japan's unexpected rate increase lifted the currency to an eight-month high last week.
Despite the two-day rebound in stock market indexes, investors are expecting the yen to resume its slide toward the 160 level because of the yawning gap between Japan and U.S. government bond yields.
Moreover, corporate earnings have been in focus as investors look forward to the release of quarterly results from leading industrial and financial companies later this week.
On the economic front, investors are looking ahead to the release of Japan’s second quarter GDP to show a slight pick-up from the first quarter, driven by an increase in exports and higher domestic demand for industrial goods.
Japan Stock Movers
The Nikkei 225 stock average increased 0.6% to 35,025.0, and the Topix index gained 0.9% to 2,483.30.
Technology and chip-related stocks led the gainers in Monday's trading as investors returned to increase exposure to advanced semiconductor equipment makers.
Advantest, Screen Holdings, and Lasertec fell between 0.5% and 0.9%, but Tokyo Electron advanced 0.7%.
Toyota Motor and Nissan Motor declined 0.5%, and Honda Motor advanced 0.3% in muted trading on Friday.
China Stocks Resume Downward Slide
Stocks in Hong Kong and Shanghai struggled to advance in Monday's trading as investors awaited key economic data later in the week.
The Hang Seng index and the CSI 300 index traded around the flatline amid hopes of more policy support from the People's Bank of China.
Retail sales in July are expected to show an increase of 2.5%, and industrial output is likely to increase more than 5%, according to an informal survey of nine economists in Shanghai and Hong Kong conducted by Ticker.com.
Chinese stocks have been under pressure, and benchmark indexes have erased this year's gains amid persistent worries about weak consumer demand growth, the protracted real estate market crisis, and the uneven and fragile economic recovery.
The People's Bank of China is expected to cut its reserve ratio for banks by 25 basis points to facilitate the sale of long-term bonds by the Chinese government.
Corporate earnings so far in the quarter have lagged market expectations amid weak domestic demand growth and falling investment in property-related industry sectors.
China's current account surplus narrowed to $54.9 billion in the second quarter from $59.3 billion in the corresponding quarter in the previous year, according to data released by the China's State Administration of Foreign Exchange.
The international goods surplus widened to $167.1 billion from $160.3 billion, but service deficit widened to $61.7 billion from $49.2 billion in the period a year ago.
China Stock Movers
The Hang Seng index edged up 0.01% to 17,095.06, and the CSI 300 index decreased 0.1% to 3,327.74.
Guangzhou R&F Properties was nearly unchanged at HK 79 cents, and the real estate development company said in a filing with an exchange that its unit missed interest payments of $147 million.
The company said it is in negotiations with its lender to find a workable solution and may revise its future payment plans.
Galaxy Entertainment Group decreased 4.9% to HK$29.30 after local authorities planned to crackdown on unlicensed money exchange service providers for gambling.
Technology stocks traded volatile in Hong Kong following a muted rebound in Friday's trading in New York.
Alibaba Group jumped 0.8% to HK $78.45, Baidu decreased 1% to HK $82.35, and Meituan dropped 2.7% to $103.30.
- Barry Adams
- 12 Aug, 2024
- New York City
Stocks lacked direction in early trading on Monday as investors reassessed wild swings from the previous week.
Earlier in the week, benchmark indexes extended the previous week's losses to 10%, but they recovered and reversed all losses as market sentiment stabilized.
Last week's global market rout was rooted in worries about the U.S. economic slowdown after nonfarm payrolls in July rose at a slower than expected pace and the tightening of labor market conditions.
However, market sentiment recovered after initial jobless claims fell more than expected, suggesting the labor market is still healthier than previously estimated.
This week, investors are looking forward to the release of producer price inflation on Tuesday, consumer price inflation on Wednesday, and retail sales on Thursday.
Investors are hoping that the Federal Reserve is set to start the rate-cut cycle with the first cut after the September meeting; however, those hopes may be dashed if inflation stays near or above 3%, as it has for several months now.
Federal Reserve Chair Jerome Powell has confirmed after the latest policy meeting that policymakers are open to trimming interest rates if inflation continues to follow a downward path to its target rate of 2%.
However, despite multiple rate hikes over 2022 and 2023, inflation has slowed from as high as nearly 9% to 3%.
July’s consumer price inflation is estimated at 2.9%, and core inflation is estimated to stay near 3.2%, higher than the Fed’s target rate of 2%.
Retail sales, unadjusted for inflation but adjusted for calendar and seasonal factors, in July are likely to expand by 0.3%.
U.S. Indexes and Treasury Yields
The S&P 500 index gained 0.1% to 5,344.58, the Nasdaq Composite advanced 0.2% to 16,772.65, and the Russell 2000 index declined 0.2% to 2,080.92.
The yield on 2-year Treasury notes edged higher to 4.08%, 10-year Treasury notes increased to 3.96%, and 30-year Treasury bonds inched lower to 4.24%.
WTI crude oil increased $1.06 to $77.89 a barrel, and natural gas prices edged up 7 cents to $2.22 a thermal unit.
Gold increased by $14.09 to $2,444.67 an ounce, and silver increased by $0.38 to $27.82.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 103.25.
U.S. Stock Movers
Starbucks increased 2.3% to $76.82 after The Wall Street Journal reported that activist investor Starboard Value acquired a stake in a coffee retail store chain to seek a higher stock price.
JetBlue Airways dropped 10.8% to $5.41, and the regional airline said it plans to issue $400 million of convertible senior notes in 2029.
KeyCorp jumped 16.6% to $17.04, and The Bank of Nova Scotia acquired a 14.9% stake in the Cleveland-based bank for $2.8 billion in cash.
- Inga Muller
- 12 Aug, 2024
- Frankfurt
European market indexes struggled to advance after a week of wild gyrations in global markets.
Hannover Re and Munch Re reported better-than-expected financial results.
The DAX index increased by 0.2% to 17,766.44; the CAC-40 index rose by 0.03% to 7,272.09; and the FTSE 100 index advanced by 0.6% to 8,214.71.
The yield on 10-year German bonds edged higher to 2.24%, French bonds inched higher to 2.99%, the UK gilts inched higher to 3.96%, and Italian bonds inched up to 3.66%.
Hanover Re rose 4.7% to €226.30, and the reinsurance company reported higher sales and earnings and confirmed its annual outlook.
Munich Re gained 1.2% to €440.0, and the German reinsurance company reported better-than-expected second quarter sales and earnings.
Revenue increased 12% to €15.4 billion, and net income soared 41% to €1.62 billion, driven by a higher profit margin of 11% compared to 8.4% a year ago.
China-linked luxury stocks traded down amid ongoing economic slowdown worries and a protracted property market slump.
Kering SA dropped 1.4% to €250.90, LVMH decreased 0.01% to €636.10, and Remy Cointreau fell 1% to €70.45.
Land Securities Group decreased 0.3% to 618.50 pence, and British Land Company declined 0.6% to 395.0 pence.
- Bridgette Randall
- 12 Aug, 2024
- London
European markets attempted to shake off economic growth anxieties after a week of wild gyrations.
Benchmark indexes in London, Paris, and Frankfurt traded around flatline as investors looked forward to the release of key economic data in the U.S. and Europe later in the week.
The Euro Area’s second-quarter GDP is expected to grow by 0.3%, as confirmed by the second estimate scheduled to be released next week, and the international trade balance in the Eurozone is expected to show a modest increase in its surplus.
In the UK, investors are looking forward to the release of second-quarter GDP growth of 0.6%, and the jobless rate is estimated at 4.5%.
In the U.S., consumer price and producer price inflation reports and retail sales updates are expected to shed more light on the future interest rate course.
July’s consumer price inflation is estimated at 2.9%, and core inflation is estimated to stay near 3.2%, higher than the Fed’s target rate of 2%.
Retail sales, unadjusted for inflation but adjusted for calendar and seasonal factors, in July are likely to expand by 0.3%.
In the absence of economic data, investors reacted to the latest corporate earnings announcements from Hanover Re, Munich Re, L'Occitane, Remy Cointreau, British Land Company, and Severn Trent.
Europe Indexes and Yields
The DAX index increased by 0.2% to 17,766.44; the CAC-40 index rose by 0.03% to 7,272.09; and the FTSE 100 index advanced by 0.6% to 8,214.71.
The yield on 10-year German bonds edged higher to 2.24%, French bonds inched higher to 2.99%, the UK gilts inched higher to 3.96%, and Italian bonds inched up to 3.66%.
The euro edged down to $1.09; the British pound inched lower to $1.272; and the U.S. dollar weakened to 86.92 Swiss cents.
Brent crude increased $0.67 to $80.33 a barrel, and the Dutch TTF natural gas fell by €1.99 to €42.05 per MWh.
Europe Stock Movers
Hanover Re rose 4.7% to €226.30, and the reinsurance company reported higher sales and earnings and confirmed its annual outlook.
Munich Re gained 1.2% to €440.0, and the German reinsurance company reported better-than-expected second quarter sales and earnings.
Revenue increased 12% to €15.4 billion, and net income soared 41% to €1.62 billion, driven by a higher profit margin of 11% compared to 8.4% a year ago.
China-linked luxury stocks traded down amid ongoing economic slowdown worries and a protracted property market slump.
Kering SA dropped 1.4% to €250.90, LVMH decreased 0.01% to €636.10, and Remy Cointreau fell 1% to €70.45.
Land Securities Group decreased 0.3% to 618.50 pence, and British Land Company declined 0.6% to 395.0 pence.
- Akira Ito
- 12 Aug, 2024
- Tokyo
Benchmark indexes in Japan rebounded in Friday's trading as market sentiment stabilized after a week of wild swings, sharp declines, and rebounds.
Financial markets are closed on Monday to celebrate the Mountain Day holiday.
In Friday's trading, the Nikkei 225 stock average gained 0.6% and the Topix index jumped close to 1% as investors reassessed the future rate path and its implications for the yen.
The yen traded at 147.23 against the U.S. dollar after the Bank of Japan's unexpected rate increase lifted the currency to an eight-month high last week.
Despite the two-day rebound in stock market indexes, investors are expecting the yen to resume its slide toward the 160 level because of the yawning gap between Japan and U.S. government bond yields.
Moreover, corporate earnings have been in focus as investors look forward to the release of quarterly results from leading industrial and financial companies later this week.
On the economic front, investors are looking ahead to the release of Japan’s second quarter GDP to show a slight pick-up from the first quarter, driven by an increase in exports and higher domestic demand for industrial goods.
Japan Stock Movers
The Nikkei 225 stock average increased 0.6% to 35,025.0, and the Topix index gained 0.9% to 2,483.30.
Technology and chip-related stocks led the gainers in Monday's trading as investors returned to increase exposure to advanced semiconductor equipment makers.
Advantest, Screen Holdings, and Lasertec fell between 0.5% and 0.9%, but Tokyo Electron advanced 0.7%.
Toyota Motor and Nissan Motor declined 0.5%, and Honda Motor advanced 0.3% in muted trading on Friday.
- Li Chen
- 12 Aug, 2024
- Hong Kong
Stocks in Hong Kong and Shanghai struggled to advance in Monday's trading as investors awaited key economic data later in the week.
The Hang Seng index and the CSI 300 index traded around the flatline amid hopes of more policy support from the People's Bank of China.
Retail sales in July are expected to show an increase of 2.5%, and industrial output is likely to increase more than 5%, according to an informal survey of nine economists in Shanghai and Hong Kong conducted by Ticker.com.
Chinese stocks have been under pressure, and benchmark indexes have erased this year's gains amid persistent worries about weak consumer demand growth, the protracted real estate market crisis, and the uneven and fragile economic recovery.
The People's Bank of China is expected to cut its reserve ratio for banks by 25 basis points to facilitate the sale of long-term bonds by the Chinese government.
Corporate earnings so far in the quarter have lagged market expectations amid weak domestic demand growth and falling investment in property-related industry sectors.
China's current account surplus narrowed to $54.9 billion in the second quarter from $59.3 billion in the corresponding quarter in the previous year, according to data released by the China's State Administration of Foreign Exchange.
The international goods surplus widened to $167.1 billion from $160.3 billion, but service deficit widened to $61.7 billion from $49.2 billion in the period a year ago.
China Stock Movers
The Hang Seng index edged up 0.01% to 17,095.06, and the CSI 300 index decreased 0.1% to 3,327.74.
Guangzhou R&F Properties was nearly unchanged at HK 79 cents, and the real estate development company said in a filing with an exchange that its unit missed interest payments of $147 million.
The company said it is in negotiations with its lender to find a workable solution and may revise its future payment plans.
Galaxy Entertainment Group decreased 4.9% to HK$29.30 after local authorities planned to crackdown on unlicensed money exchange service providers for gambling.
Technology stocks traded volatile in Hong Kong following a muted rebound in Friday's trading in New York.
Alibaba Group jumped 0.8% to HK $78.45, Baidu decreased 1% to HK $82.35, and Meituan dropped 2.7% to $103.30.
- Arun Goswami
- 12 Aug, 2024
- Mumbai
Stocks in Mumbai struggled to advance in Monday's trading as investors reviewed a fresh batch of corporate results.
After the close, investors are looking forward to the release of industrial output and inflation data.
Grasim Industries increased 0.3% to ₹2,585.70, and the diversified specialty chemical company reported better-than-expected June quarter results.
Revenue rose 9% from a year ago to ₹33,861 crore, but net profit declined 23.4% to ₹1,208 crore from a year ago.
The company also announced a capital expenditure plan of ₹4,533 crore in the current financial year.
Berger Paints advanced 2.2% to ₹542.90, and the paint and chemical company reported a weaker-than-expected sales increase in the June quartet.
Revenue edged up 2% to ₹3,091 crore from ₹3,029 crore, and net income edged slightly lower to ₹353.5 crore from ₹354.3 crore a year ago, respectively.
The India-based paint company operates manufacturing plants in India, Bangladesh, Nepal, Russia, and Poland.
Inox Wind jumped 6% to ₹184.80, and the renewable energy company reported a surge in profit in the June quarter.
Revenue increased 85% to ₹651 crore from ₹352 crore, and net income swung to a profit of ₹50 crore from a loss of ₹65 crore a year ago.
Aurobindo Pharma edged up 1% to ₹1,462.0, and the generic pharmaceutical company reported a strong increase in profit in the June quarter.
Revenue increased 10.5% to ₹7,567 crore from ₹6,850 crore, and net income jumped 61.3% to ₹918 crore from ₹569 crore a year ago.
The surge in profit was partly driven by an increase in sales across all key markets.
Sales in the U.S. increased 13.3% to ₹3,555 crore; in Europe, they advanced 8% to ₹1.982 crore; in other international markets, they soared 49% to ₹709 crore; and in India, they were ₹61 crore.
Active pharmaceutical ingredient revenue edged up 5.6% from a year ago to ₹1,092 crore.
Sterling & Wilson Renewable Energy edged up 1.3% to ₹682.35, and the company said in an exchange filing that it won a 550 crore order to design and build a solar power plant project in Rajasthan.
Trent Ltd advanced 1.3% to ₹6,364.40, and the diversified specialty retailer reported a sharp jump in earnings in the June quarter.
Revenue in the quarter increased 56% to 4,228 crore to 2,704 crore, and pre-tax income jumped 133% to 450 crore from 193 crore a year ago.
The company's grocery-focused Star Bazaar unit with more than 66 stores in 38 cities accounting for roughly 20% of total sales, reported a 29% increase in sales from a year ago, and a 20% rise in comparable store sales.
The company also operates 228 Westside, a diversified general merchandise stores and 559 Zudio, a discount apparel stores.
The company's stock advanced for the fourth session in a row and extended gains to close to 25%.
- Barry Adams
- 09 Aug, 2024
- New York City
Stocks on Wall Street seesawed in early trading on Friday amid a lack of economic catalysts and corporate news.
The S&P 500 index and the Nasdaq Composite struggled to advance following a surge in the previous session after jobless claims rose less than expected.
Earlier in the week, stocks turned volatile after nonfarm payrolls rose at a slower-than-expected pace in July, stoking fears that weakening labor market conditions are signaling a possible economic slowdown.
Those fears were compounded by fewer new job openings in June and worries about the possible slowdown in capital spending for artificial intelligence infrastructure.
However, market indexes attempted to rebound after weekly jobless claims in the previous week rose less-than-expected by 233,000, soothing fears of an imminent economic slowdown.
U.S. Indexes and Treasury Yields
The S&P 500 index gained 0.2% to 5,327.20, the Nasdaq Composite advanced 0.2% to 16,693.24, and the Russell 2000 index declined 0.3% to 2,077.57.
The yield on 2-year Treasury notes edged higher to 4.02%, 10-year Treasury notes increased to 3.93%, and 30-year Treasury bonds inched lower to 4.22%.
WTI crude oil increased $0.35 to $76.51 a barrel, and natural gas prices edged up 2 cents to $2.15 a thermal unit.
Gold increased by $6.71 to $2,431.13 an ounce, and silver increased by $0.01 to $27.52.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 103.13.
U.S. Stock Movers
Expedia Group increased 10.3% to $130.10 after the online travel agency reported better-than-expected revenue of $3.56 billion and earnings per share of $3.51 in its latest quarter.
The company also said travel demand softened in July because of a challenging macroeconomic environment.
Paramount Global advanced 4.1% to $10.63 after the media company reported better-than-expected 54 cents per share earnings in the second quarter.
The company also announced its plan to cut 15% of its U.S. employees ahead of its merger with Skydance Media.
Unity Software jumped 6.5% to $15.30, and video game developers reported better-than-expected second quarter results.
The company estimated revenue for the third quarter to range between $415 million and $420 million, below market expectation of $445 million.
Take Two Interactive increased 3.5% to $143.65, and the video game developer reported fiscal first-quarter revenue of $1.3 billion compared to $1.26 billion, net loss expanded to $262 million from $206 million, and diluted loss per share increased to $1.52 from $1.22 a year ago.
The company guided full-year net bookings between $5.55 billion and $5.65 billion.
- Inga Muller
- 09 Aug, 2024
- Frankfurt
European markets closed higher after a turbulent week of trading and a batch of mixed corporate earnings.
France's jobless rate dropped in the second quarter, and Norway's consumer price inflation accelerated in July.
The DAX index increased by 0.3% to 17,730.30; the CAC-40 index rose by 0.5% to 7,280.94; and the FTSE 100 index advanced by 0.5% to 8,182.85.
The yield on 10-year German bonds edged lower to 2.23%, French bonds inched lower to 2.97%, the UK gilts inched higher to 3.94%, and Italian bonds decreased to 3.65%.
Hargreaves Lansdown advanced 2% to 1,099.50 pence after the UK-based investment platform agreed to be acquired by a consortium of private equity firms led by CVC Capital Partners for £5.44 billion or $6.94 billion.
Generali Group increased 0.2% to €22.16 after the Italian insurance company reported mixed results in the first half of 2024.
Jenoptik AG increased 9.8% to €27.48 after the German optics company reported an increase in sales and earnings in the second quarter.
RTL Group declined 0.5% to €28.25, and the German television and radio station operator controlled by Bertelsmann reported a 4.7% increase in advertising revenue in the first half of 2024.
Lanxess AG added 5.8% to €22.96, and the German specialty chemical company reiterated its full-year outlook despite reporting a 6% decline in second quarter sales.
- Bridgette Randall
- 09 Aug, 2024
- London
European markets attempted to advance in Friday's trading after a week of wild trading and historic volatility.
Benchmark indexes in Paris, London, and Frankfurt increased more than 0.3% and extended weekly gains to as much as 3%.
Investor confidence was bolstered after worries about the U.S. economy subsided following a smaller-than-expected increase in jobless claims.
Market sentiment was also supported by an additional batch of positive earnings in the U.S. and Europe.
Closer to home on the domestic economic front, France's jobless rate eased to 7.3% in the second quarter from 7.5% in the first quarter, the statistical office, INSEE, reported Friday.
The number of jobless increased by 40,000 to 2.3 million, and the youth jobless rate among those between the ages of 15 and 24 eased by 0.4 percentage points to 17.7%.
Consumer price inflation accelerated to 2.8% in July from a 42-month low of 2.6% in June, Statistics Norway reported Friday.
Meanwhile, consumer inflation, adjusted for tax changes and excluding energy prices, increased by 3.3% lower than 3.4% in the previous year and dropped to the lowest level since April 2022.
Europe Indexes and Yields
The DAX index increased by 0.3% to 17,730.30; the CAC-40 index rose by 0.5% to 7,280.94; and the FTSE 100 index advanced by 0.5% to 8,182.85.
The yield on 10-year German bonds edged lower to 2.23%, French bonds inched lower to 2.97%, the UK gilts inched higher to 3.94%, and Italian bonds decreased to 3.65%.
The euro edged down to $1.09; the British pound inched lower to $1.272; and the U.S. dollar weakened to 86.48 Swiss cents.
Brent crude increased $0.20 to $79.36 a barrel, and the Dutch TTF natural gas fell by €0.41 to €39.90 per MWh.
Europe Stock Movers
Hargreaves Lansdown advanced 2% to 1,099.50 pence after the UK-based investment platform agreed to be acquired by a consortium of private equity firms led by CVC Capital Partners for £5.44 billion or $6.94 billion.
Generali Group increased 0.2% to €22.16 after the Italian insurance company reported mixed results in the first half of 2024.
Jenoptik AG increased 9.8% to €27.48 after the German optics company reported an increase in sales and earnings in the second quarter.
RTL Group declined 0.5% to €28.25, and the German television and radio station operator controlled by Bertelsmann reported a 4.7% increase in advertising revenue in the first half of 2024.
Lanxess AG added 5.8% to €22.96, and the German specialty chemical company reiterated its full-year outlook despite reporting a 6% decline in second quarter sales.