- Barry Adams
- 17 Apr, 2024
- New York City
Benchmark indexes on Wall Street extended losses, and Treasury yields hovered near 3-month highs as investors awaited a fresh batch of earnings.
The S&P 500 index and the Nasdaq Composite declined and extended their losses to the fourth session in a row on interest rate uncertainties and rising tensions in the Middle East.
Treasury yields edged slightly lower, following a rebound in the previous five sessions, after Federal Reserve Chairman Jerome Powell said that policymakers would like to see "further progress on inflation" before the interest rate could be cut.
Powell's comments did little to persuade bond traders, and investors debated future rate paths, including the possibility of a rate increase if economic growth accelerates and higher-priced crude oil drives an inflation rebound.
The latest updates on retail sales, inflation, nonfarm payrolls, durable goods output, and housing market activities confirmed that the U.S. economy and labor markets are resilient, despite multiple rate hikes over the last eighteen months.
Moreover, service sector inflation is still running at a 4% annual rate, suggesting that the Federal Reserve will find it difficult to bring down inflation from above the 3% level to the target rate of 2%.
Consumer price inflation has stayed above 3% over the last nine months in a row.
U.S. Indexes and Yields
The S&P 500 index decreased 0.4% to 5,033.14, and the Nasdaq Composite fell 0.6% to 15,769.53.
The yield on 2-year Treasury notes edged higher to 4.98%, 10-year Treasury notes inched down to 4.66%, and 30-year Treasury bonds edged lower to 4.77%.
WTI crude oil decreased $1.23 to $84.12 a barrel, and natural gas prices decreased 6 cents to $1.66 a thermal unit.
Gold increased by $7.75 to $2,384.78 an ounce, and silver increased 39 cents to $28.57.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 106.19.
U.S. Stock Movers
United Airlines increased 4.9% to $43.56 after the international carrier reported stronger-than-expected first quarter results supported by sustained travel demand.
J.B. Hunt Transport Services declined 7% to $170.02 after the trucking and logistics firm reported weaker-than-expected revenue and earnings in its latest quarter.
The transport services company reported quarterly revenue of $2.94 billion and earnings per share of $1.22.
Autodesk declined 5.8% to $215.01 after the company said it would further delay its annual 10-K filing because of an ongoing internal investigation into the company's audit committee of the board of directors.
Travelers Companies declined 2.7% to $217.0 after the insurance company reported weaker-than-expected quarterly results.
Tesla Inc. increased 0.9% to $158.57 after the company said it would ask shareholders to revote the $56 billion pay package for the company's chief executive, Elon Musk.
European Markets Rebounded Following Positive Quarterly Results
European stock markets traded higher after a fresh batch of corporate results lifted the market mood.
Benchmark indexes in Frankfurt, Paris, and London advanced more than 0.5% after results from Adidas, LVMH, Rio Tinto, and ASML exceeded market estimates.
On the economic front, consumer price inflation in March rose 3.2%, the Office for National Statistics reported Wednesday.
The inflation slowed to the lowest level seen in September 2021 due to a slowdown in food inflation to 4.0% from 5.0% and a slower pace of increase in restaurant and hotel inflation to 5.8% from 6.0%.
Core inflation, which excludes volatile food and energy prices, slowed to 4.2% from 4.5% in February, the lowest since December 2021.
On a monthly basis, consumer prices rose at a rate of 0.6%, matching the rate in the previous month in February.
Europe Indexes and Yields
The DAX index increased by 0.2% to 17,792.78; the CAC-40 index rose by 0.8% to 7,999.43; and the FTSE 100 index inched higher by 0.4% to 7,847.99.
The yield on 10-year German bonds edged up to 2.48%; French bonds inched higher to 2.99%; the UK gilts edged higher to 4.29%; and Italian bonds inched lower to 3.88%.
The euro edged higher to $1.061; the British pound inched higher to $1.242; and the U.S. dollar edged higher to 91.07 Swiss cents.
Crude oil prices traded near five-month highs amid rising tensions between Iran and Israel, and investors worry about possible crude oil supply disruptions in the Red Sea.
Crude prices turned lower in the afternoon trading after the U.S. government report showed that inventories rose by 2.73 million barrels in the week ending on April 12, following a 5.8 million barrels increase in the previous week.
U.S. crude oil inventories rose more than 1.6 million increase estimated by several analysts.
Brent crude decreased $1.79 to $88.72. a barrel, and the Dutch TTF natural gas rose by €2.24 to €31.38 per MWh.
Europe Stock Movers
LVMH rose 4.4% to €815.50 after the luxury fashion group reported a slower than expected decline in sales in the first quarter.
The fashion company also offered an optimistic view about sales in Asia.
Total revenue in the first quarter declined 2% to €20.7 billion from €21.0 billion, and selective retailing increased 5% to €4.17 billion from €3.97 billion.
Fashion and leather goods sales declined 2% to €10.5 billion, and wine and spirits sales declined 16% to €1.4 billion. Watches and jewelry sales fell 5% to €2.4 billion, and perfumes and cosmetics sales rose 3% to €2.2 billion.
"Europe and the United States achieved growth on a constant currency and consolidation scope basis over the quarter; Japan recorded double-digit revenue growth; the rest of Asia reflected the strong growth in spending by Chinese customers in Europe and Japan," the company noted in an investor update.
Adidas increased 8.2% to €219.0 after the German athletic shoemaker upgraded its 2024 profit outlook.
Volvo AB rose 2.4% to SEK 289.30 after the Swedish truck maker reported a smaller-than-expected decline in its adjusted operating profit.
Rio Tinto Plc rose 3% to 5,415.0 pence, despite the mining company reporting a 5% decline in iron ore shipments in its latest quarter.
ASML Holding decreased 3.2% to €884.60 after the Dutch chipmaking equipment maker reported fewer-than-expected new orders in the first quarter.
New orders in the quarter totaled €3.6 billion, compared to a consensus of €5.4 billion estimated by analysts surveyed by Reuters.
Revenue in the first quarter declined to €5.29 billion, compared to €7.23 billion in the fourth quarter of 2023.
Net income fell to €1.2 billion from €2.04 billion and diluted earnings per share dropped to €3.11 from €5.21 a year ago, respectively.
The company said sales in the second half are likely to pick up a faster pace, and the chipmaking equipment maker reiterated its annual sales estimate to match last year's sales of €27.6 billion.
Nikkei Extends Weekly Losses, Yen Sank to a New 34-year Low
Stocks in Tokyo traded down, tracking overnight losses in Europe and the U.S.
Market indexes traded down amid rising tensions in the Middle East and worries of government intervention in the currency market.
The Japanese yen traded at 154.65 against the U.S. dollar in Tokyo at 1.25 p.m.
The yield on 10-year Japanese government bonds hovered near 0.88% and on 2-year bonds approached 0.27%, and investors worried that the bond yield may have to rise after the hawkish comments from the Federal Reserve chairman, Jerome Powell.
Global bond markets have lacked direction after the latest string of U.S. economic data suggested that the Federal Reserve is likely to keep rates higher.
The higher-for-longer U.S. interest rates are likely to support higher rates around the world, as bond market yields in developed and developing economies reference the U.S. bond markets.
Japan market indexes traded down after U.S. Federal Reserve Chairman Jerome Powell confirmed at a panel discussion that policymakers need more time before lowering interest rates.
“Given the strength of the labor market and progress on inflation so far, it is appropriate to allow restrictive policy further time to work and let the data and the evolving outlook guide us,” Powell added.
The Nikkei 225 Stock Average declined 0.5% to 38,293.27, and the Topix index decreased 0.7% to 2,677.18.
Banks were among the leading decliners in Tokyo.
Mitsubishi UFJ, Sumitomo Mitsui Financial, and Mizuho Financial declined between 1% and 2%.
Tech stocks traded mixed, and Softbank fell 1%, but Tokyo Electron, Screen Holdings, Advantest, Sakura Internet, and Lasertec Corp. fell between 1% and 4%.
Resonac Holdings jumped 13.7% to ¥3,940.0 after the company lifted its profit outlook following a strong demand for chip materials.
After the close on Tuesday, Resonac said 2024 revenue is expected to increase by 5.5% to 1.36 trillion yen, and net income is expected to swing to 25 billion yen from a loss of 18.99 billion yen in 2023.
The chemical company had previously projected a 2024 profit of 10 billion yen.
Shanghai and Hong Kong Stock Market Indexes Diverge
Benchmark indexes in Shanghai edged higher, and the reference index in Hong Kong edged lower on the prospects of rates staying higher for longer.
Market indexes in Hong Kong decreased after U.S. Federal Reserve chairman Jerome Powell struck a hawkish interest rate tone.
Traders dialed down rate expectations in Hong Kong after Powell's comments because the Hong Kong dollar is liked by the U.S. dollar, and the Hong Kong Monetary Authority adjusted rates in lockstep with the U.S. interest rate changes.
The CSI 300 index advanced 0.7% to 3,535.36, and the Hang Seng index decreased 0.1% to 16,238.09.
Electric vehicle makers advanced after investors searched for bargains in recently beaten-down stocks.
Li Auto advanced 2.3% to HK$113.20, BYD gained as much as 1% before falling down 1% to $203.0, and Xpeng gained 1.3% to $28.0.
Banks advanced as investors returned after the Chinese economy expanded at a faster-than-expected 5.3% in the first quarter, but gains were limited after Fitch Ratings lowered its view on the sector.
Fitch lowered its credit rating outlook to negative from stable for Chinese banks, citing worries about China's public finances and cloudy economic outlook.
ICBC gained 0.7% to HK$4.03, Bank of China jumped HK$3.29, and China Construction Bank advanced 0.4% to $4.78.
HSBC Holdings declined 0.7% to HK$61.95, Agriculture Bank of China declined 0.5% to ¥4.41.
Home builders traded mixed on the worries that the government is not likely to provide meaningful stimulus and may let some of the large state-controlled developers go under or force consolidation in the industry.
Longfor Group declined 0.4% to HK$9.21, China Vanke gained 1.1% to HK$3.93, China Resources Land added 1% to $23.35, Henderson Land Development fell 2.2% to HK$22.55, and Sun Hung Kai Properties added 0.7% to HK$22.55.
- Scott Peters
- 17 Apr, 2024
- New York City
United Airlines increased 4.9% to $43.56 after the international carrier reported stronger-than-expected first quarter results supported by sustained travel demand.
J.B. Hunt Transport Services declined 7% to $170.02 after the trucking and logistics firm reported weaker-than-expected revenue and earnings in its latest quarter.
The transport services company reported quarterly revenue of $2.94 billion and earnings per share of $1.22.
Autodesk declined 5.8% to $215.01 after the company said it would further delay its annual 10-K filing because of an ongoing internal investigation into the company's audit committee of the board of directors.
Travelers Companies declined 2.7% to $217.0 after the insurance company reported weaker-than-expected quarterly results.
Tesla Inc. increased 0.9% to $158.57 after the company said it would ask shareholders to revote the $56 billion pay package for the company's chief executive, Elon Musk.
ASML Holding decreased 3.2% to €884.60 after the Dutch chipmaking equipment maker reported fewer-than-expected new orders in the first quarter.
New orders in the quarter totaled €3.6 billion, compared to a consensus of €5.4 billion estimated by analysts surveyed by Reuters.
Revenue in the first quarter declined to €5.29 billion, compared to €7.23 billion in the fourth quarter of 2023.
Net income fell to €1.2 billion from €2.04 billion and diluted earnings per share dropped to €3.11 from €5.21 a year ago, respectively.
The company said sales in the second half are likely to pick up a faster pace, and the chipmaking equipment maker reiterated its annual sales estimate to match last year's sales of €27.6 billion.
- Barry Adams
- 17 Apr, 2024
- New York City
Benchmark indexes on Wall Street advanced in early trading as investors awaited a fresh batch of earnings.
The S&P 500 index and the Nasdaq Composite edged higher after falling for three days in a row on interest rate uncertainties and rising tensions in the Middle East.
Treasury yields edged slightly lower after rebounding in the previous five sessions, after Federal Reserve Chairman Jerome Powell said that policymakers would like to see "further progress on inflation" before the interest rate could be cut.
Powell's comments did little to persuade bond traders, and investors debated future rate paths.
The latest updates on retail sales, inflation, nonfarm payrolls, durable goods output, and housing market activities confirmed that the U.S. economy and labor markets are resilient, despite multiple rate hikes over the last eighteen months.
Moreover, service sector inflation is still running at a 4% annual rate, suggesting that the Federal Reserve will find it difficult to bring down inflation from above the 3% level to the target rate of 2%.
Consumer price inflation has stayed above 3% over the last nine months in a row.
U.S. Indexes and Yields
The S&P 500 index increased 0.3% to 5,083.14, and the Nasdaq Composite rose 0.2% to 15,985.31.
The yield on 2-year Treasury notes edged higher to 4.98%, 10-year Treasury notes inched down to 4.66%, and 30-year Treasury bonds edged lower to 4.77%.
WTI crude oil decreased $0.51 to $84.85 a barrel, and natural gas prices decreased 6 cents to $1.66 a thermal unit.
Gold increased by $10.65 to $2,388.28 an ounce, and silver fell 30 cents to $28.48.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 106.17.
U.S. Stock Movers
United Airlines increased 4.9% to $43.56 after the international carrier reported stronger-than-expected first quarter results supported by sustained travel demand.
J.B. Hunt Transport Services declined 7% to $170.02 after the trucking and logistics firm reported weaker-than-expected revenue and earnings in its latest quarter.
The transport services company reported quarterly revenue of $2.94 billion and earnings per share of $1.22.
Autodesk declined 5.8% to $215.01 after the company said it would further delay its annual 10-K filing because of an ongoing internal investigation into the company's audit committee of the board of directors.
Travelers Companies declined 2.7% to $217.0 after the insurance company reported weaker-than-expected quarterly results.
Tesla Inc. increased 0.9% to $158.57 after the company said it would ask shareholders to revote the $56 billion pay package for the company's chief executive, Elon Musk.
- Inga Muller
- 17 Apr, 2024
- Frankfurt
Stock market indexes in Europe rebounded following better-than-expected corporate results, the euro held firm, and bond yields in the region stayed near their recent levels.
The DAX index increased by 0.5% to 17,855.71; the CAC-40 index rose by 1.1% to 8,016.46; and the FTSE 100 index inched higher by 0.4% to 7,855.95.
The yield on 10-year German bonds edged up to 2.48%; French bonds inched higher to 2.99%; the UK gilts edged higher to 4.29%; and Italian bonds inched lower to 3.88%.
LVMH rose 4.4% to €815.50 after the luxury fashion group reported a slower than expected decline in sales in the first quarter.
The fashion company also offered an optimistic view about sales in Asia.
Total revenue in the first quarter declined 2% to €20.7 billion from €21.0 billion, and selective retailing increased 5% to €4.17 billion from €3.97 billion.
Fashion and leather goods sales declined 2% to €10.5 billion, and wine and spirits sales declined 16% to €1.4 billion. Watches and jewelry sales fell 5% to €2.4 billion, and perfumes and cosmetics sales rose 3% to €2.2 billion.
"Europe and the United States achieved growth on a constant currency and consolidation scope basis over the quarter; Japan recorded double-digit revenue growth; the rest of Asia reflected the strong growth in spending by Chinese customers in Europe and Japan," the company noted in an investor update.
Adidas increased 8.2% to €219.0 after the German athletic shoemaker upgraded its 2024 profit outlook.
Volvo AB rose 2.4% to SEK 289.30 after the Swedish truck maker reported a smaller-than-expected decline in its adjusted operating profit.
Rio Tinto Plc rose 3% to 5,415.0 pence, despite the mining company reporting a 5% decline in iron ore shipments in its latest quarter.
ASML Holding decreased 3.2% to €884.60 after the Dutch chipmaking equipment maker reported fewer-than-expected new orders in the first quarter.
New orders in the quarter totaled €3.6 billion, compared to a consensus of €5.4 billion estimated by analysts surveyed by Reuters.
Revenue in the first quarter declined to €5.29 billion, compared to €7.23 billion in the fourth quarter of 2023.
Net income fell to €1.2 billion from €2.04 billion and diluted earnings per share dropped to €3.11 from €5.21 a year ago, respectively.
The company said sales in the second half are likely to pick up a faster pace, and the chipmaking equipment maker reiterated its annual sales estimate to match last year's sales of €27.6 billion.
- Bridgette Randall
- 17 Apr, 2024
- Frankfurt
European stock markets traded higher after a fresh batch of corporate results lifted the market mood.
Benchmark indexes in Frankfurt, Paris, and London advanced more than 0.5% after results from Adidas, LVMH, Rio Tinto, and ASML exceeded market estimates.
On the economic front, consumer price inflation in March rose 3.2%, the Office for National Statistics reported Wednesday.
The inflation slowed to the lowest level seen in September 2021 due to a slowdown in food inflation to 4.0% from 5.0% and a slower pace of increase in restaurant and hotel inflation to 5.8% from 6.0%.
Core inflation, which excludes volatile food and energy prices, slowed to 4.2% from 4.5% in February, the lowest since December 2021.
On a monthly basis, consumer prices rose at a rate of 0.6%, matching the rate in the previous month in February.
Europe Indexes and Yields
The DAX index increased by 0.5% to 17,855.71; the CAC-40 index rose by 1.1% to 8,016.46; and the FTSE 100 index inched higher by 0.4% to 7,855.95.
The yield on 10-year German bonds edged up to 2.48%; French bonds inched higher to 2.99%; the UK gilts edged higher to 4.29%; and Italian bonds inched lower to 3.88%.
The euro edged higher to $1.061; the British pound inched higher to $1.242; and the U.S. dollar edged higher to 91.07 Swiss cents.
Crude oil prices traded near five-month highs amid rising tensions between Iran and Israel, and investors worry about possible crude oil supply disruptions in the Red Sea.
Brent crude decreased $0.57 to $89.43. a barrel, and the Dutch TTF natural gas rose by €1.23 to €32.38 per MWh.
Europe Stock Movers
LVMH rose 4.4% to €815.50 after the luxury fashion group reported a slower than expected decline in sales in the first quarter.
The fashion company also offered an optimistic view about sales in Asia.
Total revenue in the first quarter declined 2% to €20.7 billion from €21.0 billion, and selective retailing increased 5% to €4.17 billion from €3.97 billion.
Fashion and leather goods sales declined 2% to €10.5 billion, and wine and spirits sales declined 16% to €1.4 billion. Watches and jewelry sales fell 5% to €2.4 billion, and perfumes and cosmetics sales rose 3% to €2.2 billion.
"Europe and the United States achieved growth on a constant currency and consolidation scope basis over the quarter; Japan recorded double-digit revenue growth; the rest of Asia reflected the strong growth in spending by Chinese customers in Europe and Japan," the company noted in an investor update.
Adidas increased 8.2% to €219.0 after the German athletic shoemaker upgraded its 2024 profit outlook.
Volvo AB rose 2.4% to SEK 289.30 after the Swedish truck maker reported a smaller-than-expected decline in its adjusted operating profit.
Rio Tinto Plc rose 3% to 5,415.0 pence, despite the mining company reporting a 5% decline in iron ore shipments in its latest quarter.
ASML Holding decreased 3.2% to €884.60 after the Dutch chipmaking equipment maker reported fewer-than-expected new orders in the first quarter.
New orders in the quarter totaled €3.6 billion, compared to a consensus of €5.4 billion estimated by analysts surveyed by Reuters.
Revenue in the first quarter declined to €5.29 billion, compared to €7.23 billion in the fourth quarter of 2023.
Net income fell to €1.2 billion from €2.04 billion and diluted earnings per share dropped to €3.11 from €5.21 a year ago, respectively.
The company said sales in the second half are likely to pick up a faster pace, and the chipmaking equipment maker reiterated its annual sales estimate to match last year's sales of €27.6 billion.
- Akira Ito
- 17 Apr, 2024
- Tokyo
Japan's exports rose for the fourth month in a row in March, reflecting higher prices and flat volumes.
Exports in March rose 7.3% to 9.46 trillion yen, or $61 billion, and imports declined 4.9% to 9.1 trillion yen, or $58.8 billion, the Ministry of Finance reported Wednesday.
The trade balance swung to a surplus of 366.5 billion yen or $2.3 billion, compared to a deficit of 750.8 billion yen in the same month a year ago.
The international trade balance was positive for the first time in three months.
Exports of vehicles rose 7.1%, and electronic parts and semiconductors advanced 11.3%.
The falling prices of energy imports played a key role in lowering overall imports in the month.
Imports of coal plunged by 35% and liquefied natural gas by 9.5%.
The international trade picture becomes cloudier when viewed by volume measure; overall exports eased 2.1% and overall imports declined 9.4%.
Rising prices drove exports, but overall export volume fell, driven by a decline in shipments to Asia and the European Union.
China exports rose 12.6% to 1.74 billion yen, but only 0.9% in volume terms.
- Akira Ito
- 17 Apr, 2024
- Tokyo
Stocks in Tokyo traded down, tracking overnight losses in Europe and the U.S.
Market indexes traded down amid rising tensions in the Middle East and worries of government intervention in the currency market.
The Japanese yen traded at 154.65 against the U.S. dollar in Tokyo at 1.25 p.m.
The yield on 10-year Japanese government bonds hovered near 0.88% and on 2-year bonds approached 0.27%, and investors worried that the bond yield may have to rise after the hawkish comments from the Federal Reserve chairman, Jerome Powell.
Global bond markets have lacked direction after the latest string of U.S. economic data suggested that the Federal Reserve is likely to keep rates higher.
The higher-for-longer U.S. interest rates are likely to support higher rates around the world, as bond market yields in developed and developing economies reference the U.S. bond markets.
Japan market indexes traded down after U.S. Federal Reserve Chairman Jerome Powell confirmed at a panel discussion that policymakers need more time before lowering interest rates.
“Given the strength of the labor market and progress on inflation so far, it is appropriate to allow restrictive policy further time to work and let the data and the evolving outlook guide us,” Powell added.
The Nikkei 225 Stock Average declined 0.5% to 38,293.27, and the Topix index decreased 0.7% to 2,677.18.
Banks were among the leading decliners in Tokyo.
Mitsubishi UFJ, Sumitomo Mitsui Financial, and Mizuho Financial declined between 1% and 2%.
Tech stocks traded mixed, and Softbank fell 1%, but Tokyo Electron, Screen Holdings, Advantest, Sakura Internet, and Lasertec Corp. fell between 1% and 4%.
Resonac Holdings jumped 13.7% to ¥3,940.0 after the company lifted its profit outlook following a strong demand for chip materials.
After the close on Tuesday, Resonac said 2024 revenue is expected to increase by 5.5% to 1.36 trillion yen, and net income is expected to swing to 25 billion yen from a loss of 18.99 billion yen in 2023.
The chemical company had previously projected a 2024 profit of 10 billion yen.
- Li Chen
- 17 Apr, 2024
- Hong Kong
Benchmark indexes in Shanghai edged higher, and the reference index in Hong Kong edged lower on the prospects of rates staying higher for longer.
Market indexes in Hong Kong decreased after U.S. Federal Reserve chairman Jerome Powell struck a hawkish interest rate tone.
Traders dialed down rate expectations in Hong Kong after Powell's comments because the Hong Kong dollar is liked by the U.S. dollar, and the Hong Kong Monetary Authority adjusted rates in lockstep with the U.S. interest rate changes.
The CSI 300 index advanced 0.7% to 3,535.36, and the Hang Seng index decreased 0.1% to 16,238.09.
Electric vehicle makers advanced after investors searched for bargains in recently beaten-down stocks.
Li Auto advanced 2.3% to HK$113.20, BYD gained as much as 1% before falling down 1% to $203.0, and Xpeng gained 1.3% to $28.0.
Banks advanced as investors returned after the Chinese economy expanded at a faster-than-expected 5.3% in the first quarter, but gains were limited after Fitch Ratings lowered its view on the sector.
Fitch lowered its credit rating outlook to negative from stable for Chinese banks, citing worries about China's public finances and cloudy economic outlook.
ICBC gained 0.7% to HK$4.03, Bank of China jumped HK$3.29, and China Construction Bank advanced 0.4% to $4.78.
HSBC Holdings declined 0.7% to HK$61.95, Agriculture Bank of China declined 0.5% to ¥4.41.
Home builders traded mixed on the worries that the government is not likely to provide meaningful stimulus and may let some of the large state-controlled developers go under or force consolidation in the industry.
Longfor Group declined 0.4% to HK$9.21, China Vanke gained 1.1% to HK$3.93, China Resources Land added 1% to $23.35, Henderson Land Development fell 2.2% to HK$22.55, and Sun Hung Kai Properties added 0.7% to HK$22.55.
- Brian Turner
- 16 Apr, 2024
- New York City
Rising mortgage rates and elevated home prices negatively impacted housing market activities in March.
Housing permits, starts, and completions fell in the month as buyers struggled with affordability issues.
Housing starts declined 14.7% to a seasonally adjusted annual rate of 1.32 million, permits declined 4.3% to an annual rate of 1.46 million, and completions decreased 13.5% to an annual pace of 1.47 million from the previous month, respectively.
The U.S. Census Bureau and the U.S. Department of Housing and Urban Development jointly announced the residential construction update.
A year ago, building permits increased by 1.5%, housing starts declined by 4.3%, and completions fell by 3.9%.
- Barry Adams
- 16 Apr, 2024
- New York City
Stocks lacked direction as investors weighed positive earnings from banks with rising Treasury yields and escalating tensions in the Middle East.
The S&P 500 index and the Nasdaq Composite were little changed after Bank of America, Morgan Stanley, and UnitedHealth Group reported better-than-expected quarterly results.
Crude oil futures hovered near their five-month high amid rising tensions in the Middle East as Israel mulls over new actions after Iran's missiles and drones attacked Israel.
Moreover, shipping companies are still avoiding Red Sea lanes because of worries about Houthi rebel attacks, elongating shipping delivery times, and lifting shipping freight rates.
Investors generally stayed on the sidelines and debated future rate paths after strong economic data over the last two weeks suggested a resilient U.S. labor market and economic conditions.
The ongoing interest rate debate among investors is now focused on possible rate hikes instead of rate cuts if inflation stays above 3% due to the rebound in energy prices.
Moreover, service sector wages are still rising at an annual pace of 4%, not commensurate with the Federal Reserve's goal of bringing down overall inflation to 2%.
Housing Permits and Construction Fall
Rising mortgage rates and elevated home prices negatively impacted housing market activities in March.
Housing permits, starts, and completions fell in the month as buyers struggled with affordability issues.
Housing starts declined 14.7% to a seasonally adjusted annual rate of 1.32 million, permits declined 4.3% to an annual rate of 1.46 million, and completions decreased 13.5% to an annual pace of 1.47 million from the previous month, respectively.
The U.S. Census Bureau and the U.S. Department of Housing and Urban Development jointly announced the residential construction update.
A year ago, building permits increased by 1.5%, housing starts declined by 4.3%, and completions fell by 3.9%.
U.S. Indexes and Yields
The S&P 500 index increased 0.005% to 5,062.58, and the Nasdaq Composite rose 0.03% to 15,890.97.
The yield on 2-year Treasury notes edged higher to 4.98%, 10-year Treasury notes inched up to 4.68%, and 30-year Treasury bonds edged up to 4.80%.
Crude oil prices hovered near five-month highs as tensions in the Middle East escalated and Israel prepared for the next round of actions targeting Iran-controlled assets and territory.
WTI crude oil decreased $0.12 to $85.28 a barrel, and natural gas prices decreased 2 cents to $1.66 a thermal unit.
Gold increased by $23.80 to $2,389.74 an ounce, and silver rose 25 cents to $28.27.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 106.22.
U.S. Stock Movers
UnitedHealth Group rose 6.6% to $475.39 after the health insurance company reported first quarter revenue that surpassed market expectations.
Revenue in the first quarter increased to $99.8 billion, and diluted earnings per share rose to $6.91.
Johnson & Johnson declined 2.4% to $144.05 after the company reported better-than-expected first quarter earnings of $.271 per share on revenues of $21.38 billion.
Bank of America declined 3.3% to $34.74 after the company reported better-than-expected quarterly results driven by an increase in net interest income and investment banking activities.
Revenue increased to $25.46 billion, driven by net interest income of $14.19 billion.
Morgan Stanley increased 3.3% to $89.86 after the financial services company reported first quarter revenue of $15.1 billion and diluted earnings per share of $2.02; both measures were ahead of market expectations.
European Indexes Drop 1% Amid Rising Tensions In the Middle East
Stock market indexes in Europe declined more than 1% on the worry of escalating tensions between Israel and Iran.
Benchmark indexes in Frankfurt, Paris, and London dropped more than 1% as Israel's kept its options open to conduct a retaliatory strike after Iran's first-ever direct attack on Israeli territory.
Closer to home, on the economic front. Germany's wholesale inflation decreased 3.0% from a year ago in March, matching the rate in February, Destatis reported Tuesday.
The U.K.'s jobless rate increased to 4.2% in three months to February from 3.9% in the three months to January, the Office for National Statistics said in a report on Tuesday.
Eurozone Trade Surplus Expanded After Energy Imports Contracted
The eurozone goods trade surplus widened in February to €23.6 billion from €3.6 billion a year ago, Eurostat reported Tuesday.
Exports increased by 0.3% to €235.0 billion due to higher shipments of raw materials, food, beverages, and miscellaneous manufactured products.
Imports in the region declined by 8.4% to €211.4 billion, driven by a widespread decline in demand for raw materials, crude materials, manufactured items, machinery, and transport equipment.
The goods trade surplus soared after energy imports declined sharply and the shipment of machinery and vehicles nearly doubled from a year ago.
In February, the European Union's trade surplus with the U.S. increased to €15.0 billion from €13.0 billion and with the UK expanded to 14.9 billion from 11.6 billion a year ago, respectively.
Trade deficits with China shrank to €20.5 billion from €22.5 billion and with Norway contracted to €4.2 billion from €5.0 billion a year ago, respectively.
Europe Indexes and Yields
The DAX index decreased by 1.5% to 17,766.23, the CAC-40 index fell by 1.4% to 7,932.61, and the FTSE 100 index inched lower by 1.8% to 7,820.32.
The yield on 10-year German bonds edged up to 2.406; French bonds inched higher to 2.99%; the UK gilts edged higher to 4.28%; and Italian bonds inched lower to 3.88%.
The euro edged higher to $1.062; the British pound inched higher to $1.244; and the U.S. dollar edged higher to 91.30 Swiss cents.
Brent crude decreased $0.07 to $90.01. a barrel, and the Dutch TTF natural gas rose by €2.12 to €33.62 per MWh.
Europe Stock Movers
LM Ericsson rose 6.5% to SEK 57.22 after the telecom equipment company reported first-quarter operating profit increased 7% from a year ago to SEK 4.6 billion, excluding restructuring charges.
Beiersdorf AG increased 1.6% to €134.50 after the German skincare company lifted its 2024 sales estimate.
Superdry PLC plunged 33% to 5.33 pence after the struggling retailer said it plans to delist the company from the London Stock Exchange as a part of the company restructuring.
Wise PLC declined 7.7% to 842.50 pence after the company's revenue in the fiscal fourth quarter fell short of market expectations.
Dr. Martens plunged 33% to 63.69 pence after the shoemaker announced difficult market conditions in fiscal 2025 and the company said its chief executive Kenny Wilson has resigned.
Vallourec SA decreased 1.6% to €17.68 after the steel tubular products maker launched a debt offering to raise $820 million in senior debt maturing in 2032.
China Economic Data Point to Headwinds Ahead
Markets in Asia generally traded lower, and the benchmark indexes in Tokyo and Seoul declined 2.1% and 2.4%, respectively, tracking losses on Wall Street.
Benchmark indexes in Shanghai and Hong Kong fell over 1.7% after China's gross domestic product figure in the first quarter surpassed expectations, but retail sales and industrial production data fell short of market expectations.
Gross domestic product in the first quarter rose 5.3%, following the 5.2% increase in the fourth quarter of last year.
The steady rebound in the service sector and rising exports boosted economic growth in the first quarter.
China's economy expanded 1.6% in the first quarter from the previous quarter, when it grew 1.2%.
Despite the rebound in the service sector, economists are worried that China's economic growth is likely to lag behind the government's target rate of 5% increase in 2024.
Retail sales, industrial production, and property prices showed an uneven and fragile economic recovery in the first quarter.
Retail sales rose less-than-expected 3.1%, and industrial production advanced 4.5% in March from a year ago, respectively.
On a monthly basis, retail sales rose 0.26% from the previous month, and industrial production dropped by 0.08% from February, when activities were disrupted because of the Lunar New Year.
Fixed asset investment increased 4.5%, and property investment declined 9.5% amid an ongoing slump in the residential property market.
The unemployment rate in urban areas increased to 5.2% in the first quarter, compared to an increase of 5.3% in the first two months of the year.
China's economic data are generally viewed with a lot of skepticism by international investors, as state-controlled businesses and local provincial governments lack transparency and verifiable processes in economic data collection.
The CSI 300 index declined 1.0% to 3,512.89, and the Hang Seng index dropped 1.9% to 16,279.56.
Real estate developers fell after home prices fell 0.34% in March from the previous month and extended losses to the tenth month in a row.
Longfor Group dropped 3.1% to HK$9.10, China Resources Land decreased 3% to $22.60, and China Vanke decreased 2.4% to $3.73.
So far in the year, the Hang Seng index is down 3.3% and the CSI 300 index has advanced 3.2%, indicating diverging market sentiment in two markets.
- Scott Peters
- 16 Apr, 2024
- New York City
UnitedHealth Group rose 6.6% to $475.39 after the health insurance company reported first quarter revenue that surpassed market expectations.
Revenue in the first quarter increased to $99.8 billion, and diluted earnings per share rose to $6.91.
Johnson & Johnson declined 2.4% to $144.05 after the company reported better-than-expected first quarter earnings of $.271 per share on revenues of $21.38 billion.
Bank of America declined 3.3% to $34.74 after the company reported better-than-expected quarterly results driven by an increase in net interest income and investment banking activities.
Revenue increased to $25.46 billion, driven by net interest income of $14.19 billion.
Morgan Stanley increased 3.3% to $89.86 after the financial services company reported first quarter revenue of $15.1 billion and diluted earnings per share of $2.02; both measures were ahead of market expectations.
AMD increased 1.8% to $163.26 after the advanced microprocessor maker announced its latest chip to power personal computers to process artificial intelligence applications.
- Barry Adams
- 16 Apr, 2024
- Mumbai
Stocks rested in early trading on Wall Street as investors reviewed the latest batch of earnings.
The S&P 500 index and the Nasdaq Composite were little changed after Bank of America, Morgan Stanley, and UnitedHealth Group reported better-than-expected quarterly results.
Crude oil futures hovered near their five-month high amid rising tensions in the Middle East as Israel mulls over new actions after Iran's missiles and drones attacked Israel.
Moreover, shipping companies are still avoiding Red Sea lanes because of worries about Houthi rebel attacks, elongating shipping delivery times, and lifting shipping freight rates.
Investors generally stayed on the sidelines and debated future rate paths after strong economic data over the last two weeks suggested resilient U.S. economy and labor market conditions.
Housing Permits and Construction Fall
Rising mortgage rates and elevated home prices negatively impacted housing market activities in March.
Housing permits, starts, and completions fell in the month as buyers struggled with affordability issues.
Housing starts declined 14.7% to a seasonally adjusted annual rate of 1.32 million, permits declined 4.3% to an annual rate of 1.46 million, and completions decreased 13.5% to an annual pace of 1.47 million from the previous month, respectively.
The U.S. Census Bureau and the U.S. Department of Housing and Urban Development jointly announced the residential construction update.
A year ago, building permits increased by 1.5%, housing starts declined by 4.3%, and completions fell by 3.9%.
U.S. Indexes and Yields
The S&P 500 index decreased 0.09% to 5,057.49, and the Nasdaq Composite rose 0.03% to 15,889.95.
The yield on 2-year Treasury notes edged higher to 4.98%, 10-year Treasury notes inched up to 4.68%, and 30-year Treasury bonds edged up to 4.80%.
Crude oil prices hovered near five-month highs as tensions in the Middle East escalated and Israel prepared for the next round of actions targeting Iran-controlled assets and territory.
WTI crude oil decreased $0.35 to $85.05 a barrel, and natural gas prices decreased 0.1 cent to $1.68 a thermal unit.
Gold increased by $15.32 to $2,368.21 an ounce, and silver fell 87 cents to $28.05.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 106.22.
U.S. Stock Movers
UnitedHealth Group rose 6.6% to $475.39 after the health insurance company reported first quarter revenue that surpassed market expectations.
Revenue in the first quarter increased to $99.8 billion, and diluted earnings per share rose to $6.91.
Johnson & Johnson declined 2.4% to $144.05 after the company reported better-than-expected first quarter earnings of $.271 per share on revenues of $21.38 billion.
Bank of America declined 3.3% to $34.74 after the company reported better-than-expected quarterly results driven by an increase in net interest income and investment banking activities.
Revenue increased to $25.46 billion, driven by net interest income of $14.19 billion.
Morgan Stanley increased 3.3% to $89.86 after the financial services company reported first quarter revenue of $15.1 billion and diluted earnings per share of $2.02; both measures were ahead of market expectations.
- Inga Muller
- 16 Apr, 2024
- Frankfurt
European stocks turned lower, and the euro weakened against the U.S. dollar amid escalating tensions between Iran and Israel.
The DAX index decreased by 1.5% to 17,773.53, the CAC-40 index fell by 1.3% to 7,940.42, and the FTSE 100 index inched lower by 1.4% to 7,851.21.
The yield on 10-year German bonds edged up to 2.406; French bonds inched higher to 2.99%; the UK gilts edged higher to 4.28%; and Italian bonds inched lower to 3.88%.
LM Ericsson rose 6.5% to SEK 57.22 after the telecom equipment company reported first-quarter operating profit increased 7% from a year ago to SEK 4.6 billion, excluding restructuring charges.
Beiersdorf AG increased 1.6% to €134.50 after the German skincare company lifted its 2024 sales estimate.
Superdry PLC plunged 33% to 5.33 pence after the struggling retailer said it plans to delist the company from the London Stock Exchange as a part of the company restructuring.
Wise PLC declined 7.7% to 842.50 pence after the company's revenue in the fiscal fourth quarter fell short of market expectations.
Dr. Martens plunged 33% to 63.69 pence after the shoemaker announced difficult market conditions in fiscal 2025 and the company said its chief executive Kenny Wilson has resigned.
Vallourec SA decreased 1.6% to €17.68 after the steel tubular products maker launched a debt offering to raise $820 million in senior debt maturing in 2032.
- Bridgette Randall
- 16 Apr, 2024
- Frankfurt
Stock market indexes in Europe declined more than 1% on the worry of escalating tensions between Israel and Iran.
Benchmark indexes in Frankfurt, Paris, and London dropped more than 1% as Israel's kept its options open to conduct a retaliatory strike after Iran's first-ever direct attack on Israeli territory.
Closer to home, on the economic front. Germany's wholesale inflation decreased 3.0% from a year ago in March, matching the rate in February, Destatis reported Tuesday.
The U.K.'s jobless rate increased to 4.2% in three months to February from 3.9% in the three months to January, the Office for National Statistics said in a report on Tuesday.
Eurozone Trade Surplus Expanded After Energy Imports Contracted
The eurozone goods trade surplus widened in February to €23.6 billion from €3.6 billion a year ago, Eurostat reported Tuesday.
Exports increased by 0.3% to €235.0 billion due to higher shipments of raw materials, food, beverages, and miscellaneous manufactured products.
Imports in the region declined by 8.4% to €211.4 billion, driven by a widespread decline in demand for raw materials, crude materials, manufactured items, machinery, and transport equipment.
The goods trade surplus soared after energy imports declined sharply and the shipment of machinery and vehicles nearly doubled from a year ago.
In February, the European Union's trade surplus with the U.S. increased to €15.0 billion from €13.0 billion and with the UK expanded to 14.9 billion from 11.6 billion a year ago, respectively.
Trade deficits with China shrank to €20.5 billion from €22.5 billion and with Norway contracted to €4.2 billion from €5.0 billion a year ago, respectively.
Europe Indexes and Yields
The DAX index decreased by 1.5% to 17,773.53, the CAC-40 index fell by 1.3% to 7,940.42, and the FTSE 100 index inched lower by 1.4% to 7,851.21.
The yield on 10-year German bonds edged up to 2.406; French bonds inched higher to 2.99%; the UK gilts edged higher to 4.28%; and Italian bonds inched lower to 3.88%.
The euro edged higher to $1.062; the British pound inched higher to $1.244; and the U.S. dollar edged higher to 91.30 Swiss cents.
Brent crude decreased $0.41 to $89.68. a barrel, and the Dutch TTF natural gas rose by €0.99 to €32.55 per MWh.
Europe Stock Movers
LM Ericsson rose 6.5% to SEK 57.22 after the telecom equipment company reported first-quarter operating profit increased 7% from a year ago to SEK 4.6 billion, excluding restructuring charges.
Beiersdorf AG increased 1.6% to €134.50 after the German skincare company lifted its 2024 sales estimate.
Superdry PLC plunged 33% to 5.33 pence after the struggling retailer said it plans to delist the company from the London Stock Exchange as a part of the company restructuring.
Wise PLC declined 7.7% to 842.50 pence after the company's revenue in the fiscal fourth quarter fell short of market expectations.
Dr. Martens plunged 33% to 63.69 pence after the shoemaker announced difficult market conditions in fiscal 2025 and the company said its chief executive Kenny Wilson has resigned.
Vallourec SA decreased 1.6% to €17.68 after the steel tubular products maker launched a debt offering to raise $820 million in senior debt maturing in 2032.
- Li Chen
- 16 Apr, 2024
- Hong Kong
Markets in Asia generally traded lower, and the benchmark indexes in Tokyo and Seoul declined 2.1% and 2.4%, respectively, tracking losses on Wall Street.
Benchmark indexes in Shanghai and Hong Kong fell over 1.7% after China's gross domestic product figure in the first quarter surpassed expectations, but retail sales and industrial production data fell short of market expectations.
Gross domestic product in the first quarter rose 5.3%, following the 5.2% increase in the fourth quarter of last year.
The steady rebound in the service sector and rising exports boosted economic growth in the first quarter.
China's economy expanded 1.6% in the first quarter from the previous quarter, when it grew 1.2%.
Despite the rebound in the service sector, economists are worried that China's economic growth is likely to lag behind the government's target rate of 5% increase in 2024.
Retail sales, industrial production, and property prices showed an uneven and fragile economic recovery in the first quarter.
Retail sales rose less-than-expected 3.1%, and industrial production advanced 4.5% in March from a year ago, respectively.
On a monthly basis, retail sales rose 0.26% from the previous month, and industrial production dropped by 0.08% from February, when activities were disrupted because of the Lunar New Year.
Fixed asset investment increased 4.5%, and property investment declined 9.5% amid an ongoing slump in the residential property market.
The unemployment rate in urban areas increased to 5.2% in the first quarter, compared to an increase of 5.3% in the first two months of the year.
China's economic data are generally viewed with a lot of skepticism by international investors, as state-controlled businesses and local provincial governments lack transparency and verifiable processes in economic data collection.
The CSI 300 index declined 1.0% to 3,512.89, and the Hang Seng index dropped 1.9% to 16,279.56.
Real estate developers fell after home prices fell 0.34% in March from the previous month and extended losses to the tenth month in a row.
Longfor Group dropped 3.1% to HK$9.10, China Resources Land decreased 3% to $22.60, and China Vanke decreased 2.4% to $3.73.
So far in the year, the Hang Seng index is down 3.3% and the CSI 300 index has advanced 3.2%, indicating diverging market sentiment in two markets.