- Arun Goswami
- 24 Sep, 2024
- Mumbai
Stocks in Mumbai edged slightly higher, but the rising tensions in the Middle East kept market enthusiasm in check on Dalal Street.
The Sensex index increased by 0.1% to 85,032.78, and the Nifty index edged up by 0.1% to 25,971.50.
On the Mumbai stock exchange, 190 stocks traded at their 52-week highs, and 20 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds inched lower to 6.70%, and the Indian rupee strengthened to 83.55 against the U.S. dollar.
Spicejet decreased 1.2% to ₹69.37, and the struggling discount airline said it has completed its ₹3,000 crore secondary issue.
Moreover, the company said it received an additional ₹736 crore from the previous fund-raising round.
Reliance Power gained 5% to ₹40.05, and the electric power company said it plans to raise ₹1,525 crore to accelerate its plans to expand its renewable energy business.
Punjab National Bank decreased 0.7% to ₹110.73, and the financial service provider set the terms of its upcoming ₹7,500 crore secondary issue for institutional investors.
The company set the floor price of ₹109.16 per share with a maximum discount of 5%.
Adani Power increased 0.04% to ₹672.30, and the company is looking to sell electric power from the Godda thermal power plant located in Jharkhand in the domestic market following the lack of payment from Bangladesh.
V2 Retail soared 5% to ₹1,284.85, and Lighthouse Advisors sold a 2% stake for ₹85 crore in the Kolkatta-based apparel and household goods retailer.
After the latest stake sale to a mutual fund controlled by Motilal Oswal, Lighthouse still controls 4.24% stake in the retailer.
NHPC decreased 0.2% to ₹94.02, and the hydroelectric power company paid a total of ₹1,286.33 crore, including the final dividend of 338.51 crore paid recently to the central government.
Samvardhana Motherson International decreased 0.4% to ₹206.55, and the automotive component manufacturer completed its secondary issue ₹6,438 crore.
The company plans to use the proceeds to repay its debt and for general corporate expenses.
- Alexander Garcia
- 23 Sep, 2024
- Miami
Stock market indexes traded in a tight range as investors digested the latest update on private sector activities.
Benchmark indexes rose sharply in the previous week after the Federal Reserve announced a bod rate cut.
Financial markets cheered the jumbo-sized 50 basis points rate cut after some initial hesitation, as investors hoped that the central bank was more likely to engineer a so-called "soft landing," a gradual economic slowdown without dipping the economy into a recession.
The rate cut was also seen as the Fed’s acknowledgement that labor market conditions are moderate and inflation is falling at a faster-than-expected pace.
However, the large rate cut may fan inflationary forces in the months ahead, prolonging higher inflation next year.
But for now, investors around the world cheered the Fed’s aggressive move and awaited additional rate cuts later in the year.
On Monday, the release of the manufacturing and service sector activities survey kicked-off a busy week of economic releases.
The S&P Global Flash U.S. Composite PMI declined to 54.4 in September from 54.6 in August.
On Monday, the manufacturing and service sector activities survey kicked off a busy week of economic releases.
The S&P Global Flash U.S. Composite PMI declined to 54.4 in September from 54.6 in August.
The private sector activity growth remained strong, suggesting a robust economic expansion in the third quarter.
Growth in the service sector remained strong, but it edged lower to 55.4 in September from 55.7 in August, but the contraction in manufacturing deepened to 47 from 47.9 in the previous month.
Prices for goods and services rose at the fastest pace since March; input costs advanced the most in a year.
Investors are looking forward to the release of the PCE price index, an alternative measure of inflation, amid expectations of a monthly increase of 0.2%.
Second quarter GDP growth revision, durable goods orders, and new and pending home sales data are also set to be released this week.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.2% to 5,718.05, the Nasdaq Composite rose 0.3% to 18,004.65, and the Russell 2000 index fell 0.4% to 2,219.22.
The yield on 2-year Treasury notes edged lower to 3.58%, 10-year Treasury notes inched up to 3.75%, and 30-year Treasury bonds inched higher to 4.10%.
WTI crude oil increased $0.11 to $71.11 a barrel, and natural gas prices edged up 6 cents to $2.50 a thermal unit.
Gold rose by $3.48 to $2,625.13 an ounce, and silver decreased by $0.41 to $30.75.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 100.94.
U.S. Stock Movers
Ciena Corp. jumped 4.2% to $61.31 after the networking software and system developer for optical connectivity was upgraded to "buy" from "sell," citing improving conditions in the telecom industry.
Intel Corp. increased 2.4% to $22.43 on a report that Apollo Global Management offered the chipmaker to make an equity-like investment of as much as $5 billion.
The news was first reported by Bloomberg News on Sunday.
Intel has fallen more than 60% from a high of $68.26 reached in early April 2021, as the advanced chipmaker struggled to make a transition to smaller and more powerful chips suitable for artificial intelligence applications amid rising competitions.
Eurozone Business Activities Contracted for the Fourth Month, Stocks and Euro Edged Lower
European markets traded down in cautious trading as investors reacted to the latest political developments in the region and weak business activity data.
Benchmark indexes in Paris, London, and Frankfurt were down between 0.2% and 0.5% after the business activity index declined for the fourth consecutive month in September.
The HCOB Flash Eurozone Composite PMI decreased to 48.9 in September from 51.0 in August and fell to the lowest level since January, according to the data released by S&P Global.
The service sector growth slowed to 50.5 from 52.9, and the manufacturing downturn extended to the 18th month in a row to 44.5 from 45.8 in the previous month, respectively.
The composite PMI fell at the fastest pace in 15 months after the Olympic games had temporarily boosted activities in France.
The euro dropped to $1.11 after the report, amid concerns that the European Central Bank may need to accelerate easing of its monetary policy and provide additional support.
The British pound jumped to a two-and-a-half years high of $1.33 as the UK's Labour Party kicked off its annual conference on Monday.
In political news, France's prime minister, Michel Barnier, said his government is open to increasing taxes for big businesses and the wealthiest citizens to tackle its large and widening budget deficit.
The Social Democratic Party, led by Olaf Scholz, narrowly defeated far-right party Alternative for Germany in an election in the east German state of Brandenburg.
Europe Indexes and Yields
The DAX index increased by 0.6% to 18,828.59; the CAC-40 index rose by 0.1% to 7,508.08; and the FTSE 100 index advanced by 0.4% to 8,259.71.
The yield on 10-year German bonds edged lower to 2.15%, French bonds inched higher to 2.93%, the UK gilts edged up to 3.91%, and Italian bonds decreased to 3.52%.
The euro edged lower to $1.11; the British pound inched higher to $1.33; and the U.S. dollar weakened to 84.94 Swiss cents.
Brent crude decreased $1.08 to $73.44 a barrel, and the Dutch TTF natural gas rose by €1.50 to €36.11 per MWh.
Europe Stock Movers
Rightmove Plc increased 1.2% to 682.60 pence after Australia's REA Group increased its offer for the UK-based property portal.
Commerzbank added 0.2% to €15.71, and the German government agency said in a statement that it has no plans to sell its remaining 12% stake in the bank.
Scout24 SE increased 2.3% to €77.30, and Germany's largest online property platform operator announced its plans to commence its stock buyback program worth €150 million.
The company plans to launch its stock buyback plan in the next few weeks and end in 2026.
UBS Group AG was nearly unchanged at CHF 25.46 on reports that the Swiss regulator is investigating the collapse of Credit Suisse ahead of its merger with the bank.
Siemens AG increased 0.4% to €167.26, and the company said it plans to separate its eMobility business.
China Lowered Short Term Rate, Hong Kong Indexes Hovered at 3-Month High
Stocks in Hong Kong and Shanghai advanced in Monday's trading following an unexpected rate cut by the People's Bank of China.
The Hang Seng increased 0.6%, and the mainland-focused CSI 300 index gained 0.7% in active trading.
The People's Bank of China unexpectedly lowered its 14-day reverse repurchase rate by 10 basis points to 1.85% from 1.95%. It also injected liquidity of 74.5 billion yuan into the financial system, according to a statement released by the central bank.
Last week, the central bank held steady 1-year and 5-year loan prime rates, despite the U.S. Federal Reserve Bank lowering its target rate range by 50 basis points to between 4.75% and 5.0%.
The latest move is likely to spur more lending to businesses and residential property developers, amid weak consumer confidence and domestic demand.
The central bank's move comes ahead of a 7-day National Day Holiday period starting October 1.
In other economic news, China's jobless rate among those between the ages of 16 and 24, excluding students, increased to 18.8% in August from 17.1% in July, the National Bureau of Statistics reported Monday.
The jobless rate increased to the highest since December, when the statistical agency revised its methodology after halting the release of data for four months.
The revised methodology vastly understates the jobless count among young applicants, according to most private economists.
Last week, the Hang Seng index advanced 5.1%, the most in five months, following the receding worries of the global economic slowdown.
However, financial market indexes in mainland China continued to struggle near five-year lows as corporate earnings growth outlook remained clouded.
Indexes in India traded at new record highs and gained 0.2%, and in Australia they edged down 0.5% but hovered near recent record highs.
In Friday's trading, benchmark indexes in New York and Europe closed mixed but extended weekly advance after the U.S. Federal Reserve lowered its target rate range and signaled possible rate declines in the year.
Japan's financial markets are closed on Monday for a holiday.
China Stock Movers
The Hang Seng index increased 0.6% to 18,359.38, and the CSI 300 index added 0.7% to 3,223.15.
Tech stocks led the gainers in Hong Kong following the rise in the sector in Friday's trading in New York.
Alibaba Group gained 0.5% to HK $87.70, JD.com gained 2% to $114.80, and Tencent Holdings declined 0.5% to HK $387.0.
Bank of China increased 1.1% to HK $3.54.0, China Minsheng Banking advanced 1.9% to HK $2.86, China Construction Construction Bank added 1.4% to HK $5.66, and Industrial and Commercial Bank of China added 1.6% to HK $4.46.
Property developers were in focus for the second day in a row after the People's Bank of China unexpectedly lowered short-term rates.
China Vanke gained 2.2% to HK $4.55, China Resources Land decreased 0.3% to HK $21.20, Longfor Group added 0.1% to HK $8.78, Henderson Land decreased 0.3% to HK $25.40, and Sun Hung Kai Properties added 0.7% to HK $81.95.
Xiaomi Corp. gained 3.9% to HK $20.65 after its chief executive confirmed the company's plans to launch its popular and expensive flip phone into the global market this month.
Kweichow Moutai increased 0.3% to ¥1,267.38 in Shanghai trading, and the liquor maker said it plans to repurchase up to 6 billion yuan of its own stock.
Kweichow Moutai stock is trading at a four-year low amid an economic slowdown and falling wholesale prices.
- Barry Adams
- 23 Sep, 2024
- New York City
Benchmark indexes looked higher following the sharp gains the previous week after the Federal Reserve announced a bod rate cut.
Financial markets cheered the jumbo-sized 50 basis points rate cut after some initial hesitation, as investors hoped that the central bank was more likely to engineer a so-called "soft landing," a gradual economic slowdown without dipping the economy into a recession.
The rate cut was also seen as the Fed’s acknowledgement that labor market conditions are moderate and inflation is falling at a faster-than-expected pace.
However, the large rate cut may fan inflationary forces in the months ahead, prolonging higher inflation next year.
But for now, investors around the world cheered the Fed’s aggressive move and awaited additional rate cuts later in the year.
On Monday, the release of the manufacturing and service sector activities survey is set to kick-off a busy week of economic releases.
Investors are hoping to get more insights into the growth drivers in the service sector, the main driver of the U.S. economy.
Investors are looking forward to the release of the PCE price index, an alternative measure of inflation, amid expectation of an increase of 0.2% from the previous month in August.
Second quarter GDP growth revision, durable goods orders, and new and pending home sales data are also set to be released this week.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.2% to 5,715.87, the Nasdaq Composite rose 0.1% to 17,968.59, and the Russell 2000 index fell 1.1% to 2,227.89.
The yield on 2-year Treasury notes edged lower to 3.58%, 10-year Treasury notes inched up to 3.75%, and 30-year Treasury bonds inched higher to 4.10%.
WTI crude oil increased $0.11 to $71.11 a barrel, and natural gas prices edged up 6 cents to $2.50 a thermal unit.
Gold rose by $3.48 to $2,625.13 an ounce, and silver decreased by $0.41 to $30.75.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 100.94.
U.S. Stock Movers
Ciena Corp. jumped 4.2% to $61.31 after the networking software and system developer for optical connectivity was upgraded to "buy" from "sell," citing improving conditions in the telecom industry.
Intel Corp. increased 2.4% to $22.43 on a report that Apollo Global Management offered the chipmaker to make an equity-like investment of as much as $5 billion.
The news was first reported by Bloomberg News on Sunday.
Intel has fallen more than 60% from a high of $68.26 reached in early April 2021, as the advanced chipmaker struggled to make a transition to smaller and more powerful chips suitable for artificial intelligence applications amid rising competitions.
- Inga Muller
- 23 Sep, 2024
- Frankfurt
Business activities in the European Union contracted for the fourth month in a row amid persistent weakness in the manufacturing sector.
Germany's SDP narrowly won an election in the Brandenburg state.
The DAX index increased by 0.5% to 18,824.07; the CAC-40 index fell by 0.3% to 7,480.31; and the FTSE 100 index declined by 0.1% to 8,219.74.
The yield on 10-year German bonds edged lower to 2.15%, French bonds inched higher to 2.93%, the UK gilts edged up to 3.91%, and Italian bonds decreased to 3.52%.
Rightmove Plc increased 1.2% to 682.60 pence after Australia's REA Group increased its offer for the UK-based property portal.
Commerzbank added 0.2% to €15.71, and the German government agency said in a statement that it has no plans to sell its remaining 12% stake in the bank.
Scout24 SE increased 2.3% to €77.30, and Germany's largest online property platform operator announced its plans to commence its stock buyback program worth €150 million.
The company plans to launch its stock buyback plan in the next few weeks and end in 2026.
UBS Group AG was nearly unchanged at CHF 25.46 on reports that the Swiss regulator is investigating the collapse of Credit Suisse ahead of its merger with the bank.
Siemens AG increased 0.4% to €167.26, and the company said it plans to separate its eMobility business.
- Bridgette Randall
- 23 Sep, 2024
- London
European markets traded down in cautious trading as investors reacted to the latest political developments in the region and weak business activity data.
Benchmark indexes in Paris, London, and Frankfurt were down between 0.2% and 0.5% after the business activity index declined for the fourth consecutive month in September.
The HCOB Flash Eurozone Composite PMI decreased to 48.9 in September from 51.0 in August and fell to the lowest level since January, according to the data released by S&P Global.
The service sector growth slowed to 50.5 from 52.9, and the manufacturing downturn extended to the 18th month in a row to 44.5 from 45.8 in the previous month, respectively.
The composite PMI fell at the fastest pace in 15 months after the Olympic games had temporarily boosted activities in France.
The euro dropped to $1.11 after the report, amid concerns that the European Central Bank may need to accelerate easing of its monetary policy and provide additional support.
The British pound jumped to a two-and-a-half years high of $1.33 as the UK's Labour Party kicked off its annual conference on Monday.
In political news, France's prime minister, Michel Barnier, said his government is open to increasing taxes for big businesses and the wealthiest citizens to tackle its large and widening budget deficit.
The Social Democratic Party, led by Olaf Scholz, narrowly defeated far-right party Alternative for Germany in an election in the east German state of Brandenburg.
Europe Indexes and Yields
The DAX index increased by 0.5% to 18,824.07; the CAC-40 index fell by 0.3% to 7,480.31; and the FTSE 100 index declined by 0.1% to 8,219.74.
The yield on 10-year German bonds edged lower to 2.15%, French bonds inched higher to 2.93%, the UK gilts edged up to 3.91%, and Italian bonds decreased to 3.52%.
The euro edged lower to $1.11; the British pound inched higher to $1.33; and the U.S. dollar weakened to 84.94 Swiss cents.
Brent crude increased $0.18 to $74.66 a barrel, and the Dutch TTF natural gas rose by €0.20 to €34.80 per MWh.
Europe Stock Movers
Rightmove Plc increased 1.2% to 682.60 pence after Australia's REA Group increased its offer for the UK-based property portal.
Commerzbank added 0.2% to €15.71, and the German government agency said in a statement that it has no plans to sell its remaining 12% stake in the bank.
Scout24 SE increased 2.3% to €77.30, and Germany's largest online property platform operator announced its plans to commence its stock buyback program worth €150 million.
The company plans to launch its stock buyback plan in the next few weeks and end in 2026.
UBS Group AG was nearly unchanged at CHF 25.46 on reports that the Swiss regulator is investigating the collapse of Credit Suisse ahead of its merger with the bank.
Siemens AG increased 0.4% to €167.26, and the company said it plans to separate its eMobility business.
- Li Chen
- 23 Sep, 2024
- Hong Kong
Stocks in Hong Kong and Shanghai advanced in Monday's trading following an unexpected rate cut by the People's Bank of China.
The Hang Seng increased 0.6%, and the mainland-focused CSI 300 index gained 0.7% in active trading.
The People's Bank of China unexpectedly lowered its 14-day reverse repurchase rate by 10 basis points to 1.85% from 1.95%. It also injected liquidity of 74.5 billion yuan into the financial system, according to a statement released by the central bank.
Last week, the central bank held steady 1-year and 5-year loan prime rates, despite the U.S. Federal Reserve Bank lowering its target rate range by 50 basis points to between 4.75% and 5.0%.
The latest move is likely to spur more lending to businesses and residential property developers, amid weak consumer confidence and domestic demand.
The central bank's move comes ahead of a 7-day National Day Holiday period starting October 1.
Last week, the Hang Seng index advanced 5.1%, the most in five months, following the receding worries of the global economic slowdown.
However, financial market indexes in mainland China continued to struggle near five-year lows as corporate earnings growth outlook remained clouded.
Indexes in India traded at new record highs and gained 0.2%, and in Australia they edged down 0.5% but hovered near recent record highs.
In Friday's trading, benchmark indexes in New York and Europe closed mixed but extended weekly advance after the U.S. Federal Reserve lowered its target rate range and signaled possible rate declines in the year.
Japan's financial markets are closed on Monday for a holiday.
China Stock Movers
The Hang Seng index increased 0.6% to 18,359.38, and the CSI 300 index added 0.7% to 3,223.15.
Tech stocks led the gainers in Hong Kong following the rise in the sector in Friday's trading in New York.
Alibaba Group gained 0.5% to HK $87.70, JD.com gained 2% to $114.80, and Tencent Holdings declined 0.5% to HK $387.0.
Bank of China increased 1.1% to HK $3.54.0, China Minsheng Banking advanced 1.9% to HK $2.86, China Construction Construction Bank added 1.4% to HK $5.66, and Industrial and Commercial Bank of China added 1.6% to HK $4.46.
Property developers were in focus for the second day in a row after the People's Bank of China unexpectedly lowered short-term rates.
China Vanke gained 2.2% to HK $4.55, China Resources Land decreased 0.3% to HK $21.20, Longfor Group added 0.1% to HK $8.78, Henderson Land decreased 0.3% to HK $25.40, and Sun Hung Kai Properties added 0.7% to HK $81.95.
Xiaomi Corp. gained 3.9% to HK $20.65 after its chief executive confirmed the company's plans to launch its popular and expensive flip phone into the global market this month.
Kweichow Moutai increased 0.3% to ¥1,267.38 in Shanghai trading, and the liquor maker said it plans to repurchase up to 6 billion yuan of its own stock.
Kweichow Moutai stock is trading at a four-year low amid an economic slowdown and falling wholesale prices.
- Arun Goswami
- 23 Sep, 2024
- Mumbai
India indexes advanced in Monday's trading following positive market sentiment amid receding worries of a global economic slowdown.
The Sensex and Nifty indexes traded at new intraday highs following the sustained new fund flows from domestic investors.
The Sensex index increased by 0.3% to 84,752.44, and the Nifty index edged up by 0.4% to 25,881.35.
On the Mumbai stock exchange, 147 stocks traded at their 52-week highs, and 17 stocks traded at their 52-week lows.
Punjab & Sind Bank gained 1% to ₹54.65, and the company plans to raise as much as ₹3,000 crore through a bond offering, following other large offerings from state-controlled banks.
Dreamfolks Services increased 1.3% to ₹501.45, and the company has halted providing lounge services at airports operated by Adani Group.
Signature Global advanced 3.2% to ₹1,529.90, and the residential real estate developer placed a 320 crore order with ACC India for its luxury housing project in Gurugram.
Religare Enterprises inched up 1.2% to ₹274.25, and the company was in focus after it postponed its annual general meeting following the allegations of insider trading by executive chairperson Rashmi Saluja.
Reliance Infrastructure soared 11% to ₹316.0, and the company announced fund raising of ₹1,100 crore from promoters and ₹1,900 crore from an investment company as part of its efforts to raise as much as 6,000 crore through a secondary offering.
Tata Steel increased 1.7% to ₹152.10, and the company initiated a new blast furnace operation at a plant in Odisha that will expand its capacity to 8 million tons from 3 million tons.
Adani Total Gas advanced 1.8% to ₹790.0, and the local gas distribution network operator said it has completed raising $315 million or ₹2,632 crore from international lenders.
The company plans to raise a total of $375 million, or 3,134 crore, from a consortium of international lenders over the next few weeks.
HDFC Bank increased 2.4% to ₹1,749.0, and the company's subsidiary HDB Financial Services plans to raise as much as ₹2,500 crore through an initial public offering.
- Scott Peters
- 20 Sep, 2024
- New York City
FedEx decreased 13% to $261.50, and the parcel delivery company reported a sharp fall in earnings and the company lowered its annual outlook.
Nike increased 8.3% to $87.68, and the athletic footwear maker said chief executive John Donahoe would step down from the office on October 13.
Elliott Hill, a Nike veteran, would return to the company to assume the leading role.
MillerKnoll declined 7.9% to $25.30, and the office furniture maker reported weaker-than-expected revenue and earnings in its latest quarter.
Revenue in the fiscal first quarter ending in August decreased 6.1% to $851.5 million from $917.7 million, net income swung to a loss of $0.5 million from $16.1 million, and diluted earnings per share were a loss of 1.2 cents compared to a profit of 16.1 cents a year earlier.
Chewy declined 2.9% to $25.30 after the online pet products store disclosed its plans to raise $500 million through a public offering of Class A stock.
- Barry Adams
- 20 Sep, 2024
- New York City
Market indexes traded around the flatline on Wall Street as investors focused on the positives of the Fed's jumbo-sized rate cut on Wednesday.
The S&P 500, the Nasdaq Composite, and the Dow Jones Industrial Average traded at or near record highs, boosted by the market enthusiasm over the Fed's latest cut and signaling of additional cuts in the year.
Market indexes rallied on Thursday after initial jobless claims last week dropped to the lowest level since May, confirming that labor market conditions are moderating and the Federal Reserve is more likely to engineer a soft landing, averting a recession.
Jumbo-sized rate cuts are positive for consumers and businesses as they increase demand for goods and services, but lower rates also stoke inflationary forces.
After a week of tumultuous trading, the S&P 500 and the Nasdaq Composite are set to close to advance in the week between 1% and 2%.
U.S. Indexes and Treasury Yields
The S&P 500 index decreased 0.2% to 5,703.66, the Nasdaq Composite fell 0.01% to 18,013.92, and the Russell 2000 index advanced 2.1% to 2,252.70.
The yield on 2-year Treasury notes edged lower to 3.62%, 10-year Treasury notes inched down to 3.73%, and 30-year Treasury bonds inched lower to 4.06%.
WTI crude oil decreased $0.46 to $70.68 a barrel, and natural gas prices edged up 2 cents to $2.37 a thermal unit.
Gold rose by $29.19 to $2,816.98 an ounce, and silver increased by $0.16 to $31.37.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 100.75.
U.S. Stock Movers
FedEx decreased 13% to $261.50, and the parcel delivery company reported a sharp fall in earnings and the company lowered its annual outlook.
Nike increased 8.3% to $87.68, and the athletic footwear maker said chief executive John Donahoe would step down from the office on October 13.
Elliott Hill, a Nike veteran, would return to the company to assume the leading role.
MillerKnoll declined 7.9% to $25.30, and the office furniture maker reported weaker-than-expected revenue and earnings in its latest quarter.
Revenue in the fiscal first quarter ending in August decreased 6.1% to $851.5 million from $917.7 million, net income swung to a loss of $0.5 million from $16.1 million, and diluted earnings per share were a loss of 1.2 cents compared to a profit of 16.1 cents a year earlier.
Chewy declined 2.9% to $25.30 after the online pet products store disclosed its plans to raise $500 million through a public offering of Class A stock.
- Inga Muller
- 20 Sep, 2024
- Frankfurt
European markets trimmed weekly gains after luxury goods and vehicle makers with significant exposure to China led the decliners.
Germany's producer price inflation extended its yearlong decline in August, and the UK's retail sales accelerated after warmer weather boosted demand for food and apparel.
The DAX index decreased by 0.8% to 18,850.71; the CAC-40 index fell by 0.7% to 7,565.09; and the FTSE 100 index declined by 0.4% to 8,294.19.
The yield on 10-year German bonds edged higher to 2.20%, French bonds inched higher to 2.93%, the UK gilts edged up to 3.89%, and Italian bonds increased to 3.55%.
Vehicle makers were among the leading decliners in Friday's trading after Mercedes-Benz lowered its annual outlook following a rapid deterioration in its business in China.
Mercedes-Benz Group dropped 6.4% to €55.24, and the luxury automaker said it plans to invest over $2 billion in China with local partners and accelerate its transition to electric vehicle manufacturing.
The company said its adjusted operating earnings before interest and tax were "significantly below" last year's level amid a rapid decline in sales in China.
The company-added return on sales is likely to fall in the range between 7.5% and 8.5% from the previously estimated range between 10% and 11%.
Following the Mercedes-Benz announcement, stocks of other leading automakers declined in the region.
Porsche Automobil decreased 2.6% to €39.90, Volvo declined 1.5% to SEK 260.60, Stellantis fell 2.4% to €13.63, BMW dropped 3% to €73.86, and Volkswagen eased 2.4% to €91.62.
Luxury goods makers were also on the slide on the worry of their exposure to China.
Hermes International declined 2.8% to €1,937.0, LVMH fell 2.8% to €597.40, and Kering SA, the parent of Gucci, decreased 3.5% to €224.95.
Burberry Group declined 4.8% to 596.60 pence after Goldman Sachs lowered its target price to €235 from €270 and assigned a "neutral" rating.
Among other widely held stocks, Deutsche Post, Infineon, Puma, Adidas, Essilor, and L'Oreal fell between 2% and 3% amid market weakness.
- Bridgette Randall
- 20 Sep, 2024
- London
European markets traded down and trimmed weekly gains as investors reassessed global economic growth outlook and rate path after rate decisions from major central banks this week.
Benchmark indexes in Paris, London, and Frankfurt decreased in Friday's trading but traded higher in the week after rate decisions from the Bank of Japan, the People's Bank of China, the Bank of England, the Norges Bank, and the U.S. Federal Reserve.
The jumbo-sized rate cut by the U.S. Federal Reserve on Wednesday surprised many market participants, and investors hoped that the central bank is more likely to engineer the so-called soft landing and avoid a recession.
On Friday, the Bank of Japan held steady its short-term lending rate, and the People's Bank of China surprisingly held steady its short- and medium-term rates.
However, market sentiment was cautious amid luxury automobile stocks after Mercedes-Benz lowered its annual outlook, citing weakness in China.
Closer to home, the producer price index in Germany decreased annually by 0.8% in August, matching the decline in the previous month, the statistical agency, destatis, reported Friday.
Factory gate prices have been declining since July 2023, primarily reflecting the fall in energy prices.
Confidence among French manufacturers remained stable in September after rising in the previous month, the statistical office INSEE reported Friday.
The manufacturing sentiment remained stable at 99.0, matching the level in August and just below the long-term average of 100.
Separately, UK retail sales rose more than expected after warmer weather boosted demand for food and apparel, the Office for National Statistics reported Friday.
Retail sales growth accelerated to 1% on a monthly basis in August from a 0.7% rise in July, and on an annual basis, sales advanced 2.5% from the revised annual 1.4% rise in the previous month.
Europe Indexes and Yields
The DAX index decreased by 0.8% to 18,850.71; the CAC-40 index fell by 0.7% to 7,565.09; and the FTSE 100 index declined by 0.4% to 8,294.19.
The yield on 10-year German bonds edged higher to 2.20%, French bonds inched higher to 2.93%, the UK gilts edged up to 3.89%, and Italian bonds increased to 3.55%.
The euro edged up to $1.11; the British pound inched higher to $1.32; and the U.S. dollar weakened to 84.91 Swiss cents.
Brent crude decreased $0.46 to $74.40 a barrel, and the Dutch TTF natural gas fell by €1.26 to €34.31 per MWh.
Europe Stock Movers
Vehicle makers were among the leading decliners in Friday's trading after Mercedes-Benz lowered its annual outlook following a rapid deterioration in its business in China.
Mercedes-Benz Group dropped 6.4% to €55.24, and the luxury automaker said it plans to invest over $2 billion in China with local partners and accelerate its transition to electric vehicle manufacturing.
The company said its adjusted operating earnings before interest and tax were "significantly below" last year's level amid a rapid decline in sales in China.
The company-added return on sales is likely to fall in the range between 7.5% and 8.5% from the previously estimated range between 10% and 11%.
Following the Mercedes-Benz announcement, stocks of other leading automakers declined in the region.
Porsche Automobil decreased 2.6% to €39.90, Volvo declined 1.5% to SEK 260.60, Stellantis fell 2.4% to €13.63, BMW dropped 3% to €73.86, and Volkswagen eased 2.4% to €91.62.
Luxury goods makers were also on the slide on the worry of their exposure to China.
Hermes International declined 2.8% to €1,937.0, LVMH fell 2.8% to €597.40, and Kering SA, the parent of Gucci, decreased 3.5% to €224.95.
Burberry Group declined 4.8% to 596.60 pence after Goldman Sachs lowered its target price to €235 from €270 and assigned a "neutral" rating.
Among other widely held stocks, Deutsche Post, Infineon, Puma, Adidas, Essilor, and L'Oreal fell between 2% and 3% amid market weakness.
- Akira Ito
- 20 Sep, 2024
- Tokyo
Benchmark indexes in Tokyo advanced, extending gains from the previous session and following a surge in overnight trading in New York.
The Nikkei 225 stock average jumped 1.6% and the Topix index gained 1.3% as investors reviewed the latest update on inflation and the Bank of Japan's rate decisions.
The Bank of Japan kept its short-term rate at 0.25% and left its yield curve unchanged after a policy meeting on Friday and reiterated its hawkish outlook.
The central bank decided to take a wait-and-see approach after lifting rates twice this year, in March and July. The policy committee said it needs more time to evaluate the impact of its hawkish stand on the economy and financial markets before it decides its next move.
The policy board also reiterated that the economy is gradually recovering, despite patches of weakness, and private consumption is on an upward trend amid improving corporate profits and rising wages.
The yen edged 0.5% higher to 142.15 against the U.S. dollar and hovered near 2024's high.
Japan's overall consumer price inflation rate increased to 3.0% from 2.8% in the previous three months and is increasing to the highest level since October 2023, the Ministry of Internal Affairs and Communications said Friday.
Core inflation, which excludes volatile food by including energy prices, accelerated for the fourth month in a row to 2.8% after the cost of electricity soared 26.2% following the ending of household subsidies.
Japan Stock Movers
The Nikkei 225 Stock Average gained 1.6% to 37,773.11, and the broader Topix index added 1.3% to 2,649.57.
Banks were in focus after the Bank of Japan reiterated its plan to lift rates gradually.
Mitsubishi UFJ Financial increased 3.2% to ¥1,489.50, Sumitomo Mitsui Financial added 2.7% to ¥9,191.0, and Mizuho Financial advanced 3.1% to ¥2,916.0.
Vehicle makers advanced following the rise in the yen after the Bank of Japan held rates steady.
Hino Motors jumped 2.5% to ¥452.40, Toyota Motor advanced 0.7% to ¥2,629.50, Honda Motor gained 1% to ¥1,558.0, and Nissan Motor edged up 1.2% to ¥406.90.
Tokai Carbon soared 7.2% to ¥932.90, Fanuc gained 3.7% to ¥3,966.0, and Taiyo Yuden added 2.4% to ¥2,913.50.
Tech stocks were among the leading gainers in Friday's trading, following the surge in New York in overnight trading.
Tokyo Electron increased 5.4% to ¥24,315.0, Advantest gained 1.2% to ¥6,289.0, Screen Holdings declined 1.5% to ¥9,956.0, and Disco Corp. advanced 2.4% to ¥36,260.0.
- Li Chen
- 20 Sep, 2024
- Hong Kong
Stock market indexes in Hong Kong headed higher, but they declined in Shanghai after the People's Bank of China in a surprise move kept its short- and medium-term rates unchanged.
The Hang Seng index soared 1.5% and extended this week's gains to over 5%, the best weekly gain since April 26.
The CSI 300 index edged down 0.3% and extended weekly losses to a fraction in a holiday-shortened week as market sentiment remained weak.
The central bank in Beijing, in a surprise move, announced its plan to hold rates steady despite weak economic momentum and a stable exchange rate.
Investors were widely anticipating a rate cut following a jumbo-sized 50 basis points cut by the U.S. Federal Reserve on Wednesday.
The People's Bank of China held steady its one-year loan prime rate at 3.35% and five-year loan prime rate at 3.85%.
Economists still held out for the central bank to lower rates in the months ahead, following the latest string of weak retail sales, industrial output growth, and falling investment in the property sector.
In other economic news in Asia, the Bank of Japan held its short-term lending rate unrevised between 0.25% and 1.0%, meeting market expectations.
China Stock Movers
The Hang Seng Index jumped 1.5% to 18,275.14, and the CSI 300 index fell 0.3% to 3,187.38.
Tech stocks in Hong Kong jumped, tracking a higher closing in New York in overnight trading.
Alibaba Group gained 2.5% to HK $87.80, Tencent Holdings advanced 0.3% to HK $392.20, JD.com jumped 0.5% to HK $112.30, and Baidu added 0.2% to HK $85.45.
Banks were in focus after the People's Bank of China, in a surprise move, held steady its short- and medium-term loan rates.
Bank of China added 1.1% to HK $3.49, Agriculture Bank of China jumped 1.9% to HK$3.66, and China Construction Bank increased 1% to HK $5.62.
Mainland-focused residential property sectors were in focus for the second day in a row, after the HKMA lowered its base rate and the People's Bank of China held steady interest rates.
China Vanke jumped 1% to HK $4.41, China Resources Land gained 2.4% to HK $21.40, and Longfor Group advanced 1.9% to HK $8.84.
Zhejiang Zhongxin Environmental Protection Technology Group soared 55% to 40.08 yuan on its first day of trading in Shanghai.
The food packaging company priced its public offering at 26.80 yuan per share and raised 677 million in its initial public offering.
- Arun Goswami
- 20 Sep, 2024
- Mumbai
Benchmark indexes in Mumbai advanced to new record highs and extended this year's string of multiple record highs amid solid demand from domestic and foreign investors.
The Sensex index increased by 0.3% to 83,399.27, and the Nifty index edged up by 0.3% to 25,498.40.
On the Mumbai stock exchange, 91 stocks traded at their 52-week highs, and 18 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds inched lower to 6.74%, and the Indian rupee strengthened to 83.61 against the U.S. dollar.
FSN E-commerce Ventures gained 0.7% to ₹201.09, and the cosmetic retailer said it has expanded its same-day or next-day delivery service to 110 cities.
The cosmetic retailer added that about 60% of orders are fulfilled on the same day.
Shapoorji Pallonji Group of companies is likely to receive an investment of ₹2,100 crore, arranged by Deutsche Bank, ahead of the company's debt repayments. The company is also preparing to list Afcons Infrastructure on Mumbai stock exchanges through a public offering as early as next year.
The group companies include Eureka Forbes, Forbes & Company, Gokak Textiles, Vascon Engineers, and Sterling & Wilson Renewable Energy.
SJVN increased 0.2% to ₹129.0, and the renewable power company announced better-than-expected quarterly results.
Standalone revenue increased to 2,533.59, and after-tax profit rose to 908.40 crore.
The company said it has expanded its project portfolio to a record 56.8 GW, driven by 89 projects and three transmission lines.
The power projects include 5.1 GW hydropower projects in Arunachal Pradesh, 2.4 GW Darzo Lui Pumped Storage Project in Mizoram, and securing 16 renewable projects totaling 4.5 GW of power generation capacity.
MSTC Ltd. increased 2.2% to ₹739.0, and the government approved the sale of the company's subsidiary Ferro Scrap Nigam to Japan's Konoike Transport Company for ₹320 crore.
IDFC First Bank increased 0.7% to ₹74.34, and the Reserve Bank of India approved the reappointment of the company's managing director, V. Vaidyanathan, effective December 19.
Reliance Infrastructure increased 3.3% to ₹293.0, and the company's board approved its plans to raise 3,014 crore through a preferential issue.