- Arun Goswami
- 16 Apr, 2024
- Mumbai
Market indexes in Mumbai trading faced selling pressure for the second day in a row this week amid rising tensions in the Middle East and a deepening war between Iran and Israel.
The U.S. President Joe Biden's administration has stepped up diplomatic efforts in the region and is urging Israel to exercise restraint and the worry of a wider war in the Middle East that could disrupt crude oil supplies and stoke more attacks in the Red Sea.
The Sensex index decreased by 0.4% to 73,103.08, and the Nifty index declined by 0.5% to 22,197.50.
On the Mumbai stock exchange, 66 stocks traded at their 52-week highs, and 10 stocks traded at their 52-week lows.
Jio Financial Services declined 1.9% to ₹364.90, and the company is looking to expand the activities of its joint venture with BlackRock into online stock brokerage and wealth management services.
Vodafone Idea decreased 2.2% to ₹12.85, and the company's chief executive, Akshaya Moondra, said the company plans to invest ₹5,720 crore to launch its 5G network over the next two years.
The wireless telecom network operator is in the middle of raising ₹18,000 crore from the anchor investor, Aditya Birla Group.
Vedanta Ltd. rose 0.6% to ₹372.60, and the company secured an 11-year term loan worth ₹3,918 crore from Power Finance Corporation to expedite the completion of power projects.
Aster DM rose 0.3% to ₹524.35 after the hospital chain operator said it plans to invest ₹1,000 crore and expand its capacity by 1,700 to 6,000 beds over the next three years.
Bank of India added 0.3% to ₹139.20, and the financial services company signed an agreement with the Indian Mortgage Guarantee Corporation to provide insured home loans for affordable housing borrowers.
Brigade Enterprises advanced 1.4% to ₹996.65 after the real estate developer entered into a joint development agreement to build an office complex with the Chennai-based Agni Estates & Foundations.
Brigade said it plans to invest ₹400 crore to develop the office complex.
Ambuja Cements increased 0.4% to ₹609.30, and the company said it acquired a cement processing unit in Tamil Nadu for ₹414 crore from My Home Industries.
- Brian Turner
- 15 Apr, 2024
- New York City
The U.S. retail and food services sales for March rose more than expected as consumers continued to splurge.
Retail and food service sales, adjusted for seasonal variation and holiday and trading-day differences, rose 0.7% from the previous month to $709.6 billion.
Despite higher inflation and elevated interest rates, consumers continue to spend, largely because of a resilient labor market and rising wages.
Retail sales and food service data are not adjusted for price changes, meaning they are not adjusted for inflation.
March's total retail sales from a year ago were up 4%, and total retail sales in the first quarter increased 2.1% from a year ago.
February monthly total retail sales were revised to a 0.9% increase from the previous estimate of an increase of 0.6%.
Retail trade sales were up 0.8% from February 2024 and up 3.6% above last year.
Nonstore retailers were up 11.3% from last year, while food services and drinking places were up 6.5% from March 2023.
From the previous month, sales at nonstore retailers increased by 2.7%, gasoline stations rose by 2.1%, miscellaneous store retailers rose by 2.1%, general merchandise stores rose by 1.1%, and building materials and garden stores advanced by 0.7%.
Sales at food and beverage stores rose 0.5%, personal and healthcare stores rose 0.4%, and food services and drinking places increased 0.4%.
Meanwhile, sales at sporting goods, hobby, musical instruments, and book stores declined 1.8%, apparel stores eased 1.6%, electronics and appliance stores fell 1.2%, and automotive dealers fell 0.9%.
Core retail sales, which exclude sales at food services, auto dealers, gasoline stations, and building materials stores, advanced 1.1%.
Core retail sales are used in the calculation of gross domestic product, and the latest retail sales data is likely to prompt most economists to revise their estimates for first quarter economic growth.
Strong retail sales in March followed robust employment and accelerations in inflation reports last week, suggesting that the Federal Reserve could wait longer before lowering rates in the second quarter.
- Barry Adams
- 15 Apr, 2024
- Select
Benchmark indexes on Wall Street erased morning gains after Treasury yields rose following yet another economic report indicating strong economic fundamentals.
Retail sales March rose faster than expected, supporting the case for the Federal Reserve to keep higher rates for longer.
The S&P 500 index and the Nasdaq Composite advanced in Monday's trading after registering a loss in the previous two weeks in a row.
But market enthusiasm faded after Treasury yields edged higher following the release of stronger-than-expected retail sales in March.
U.S. retail sales in March rose 4% from a year ago and advanced 0.8% from the previous month, according to the U.S. Census Bureau.
The larger-than-expected increase in retail sales helped market sentiment overcome the worries of a widening war in the Middle East, but rising Treasury yields pushed stock market indexes into negative territory.
Global markets advanced despite rising prospects of a wider war in the Middle East after Iran conducted its first-ever direct attack on Israel. Stronger-than-expected retail sales supported a rise in U.S. Treasury yields and a decline in U.S. stocks.
Iran conducted its first-ever direct missile and drone attacks targeting Israeli territory over the weekend, retaliating for Israel's military strike on Iran's embassy in Syria on April 1.
The prospect of a wider war in the Middle East raised worries about crude oil supply disruptions and more attacks in the Red Sea.
Crude oil futures prices traded volatile amid growing worries of supply disruptions in the Middle East, and Brent crude oil prices hovered near a five-month high of $84.62 a barrel in New York.
Investors are hoping that Israel's prime minister, Benjamin Netanyahu, will avoid a retaliatory strike and prevent the conflict from further escalating after U.S. President Joe Biden's administration urged Israel to restrain and exercise caution.
U.S. Indexes and Yields
The S&P 500 index decreased 0.9% to 5,074.52, and the Nasdaq Composite fell 1.5% to 15,935.59.
The yield on 2-year Treasury notes edged higher to 4.95%, 10-year Treasury notes inched up to 4.63%, and 30-year Treasury bonds edged up to 4.73%.
Crude oil prices surged after Iran conducted its first-ever direct attack on Israel in response to Israel's attack on Iran's embassy in Syria on April 1.
WTI crude oil decreased $0.31 to $85.33 a barrel, and natural gas prices decreased 8 cents to $1.68 a thermal unit.
Gold increased by $23.56 to $2,366.53 an ounce, and silver rose 88 cents to $28.74.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 106.11.
U.S. Stock Movers
Tesla declined 2.8% to $166.26 on the news that the electric vehicle maker is planning to cut 10% of its global headcount.
"We have done a thorough review of the organization and made the difficult decision to reduce our headcount by more than 10% globally.
There is nothing I hate more, but it must be done. This will enable us to be lean, innovative, and hungry for the next growth phase cycle," said chief executive Elon Musk in a memo sent to employees.
The electric vehicle industry news publication Electrek first reported on Tesla's internal memo.
Charles Schwab increased 4% to $72.83 after the company reported better-than-expected quarterly results.
Net revenue in the March quarter declined 7% to $4.7 billion from $5.1 billion, net income fell 15% to $1.36 billion from $1.60 billion, and diluted earnings per share dropped 18% to 68 cents from 73 cents a year ago.
Net interest margin increased by 13 basis points from the previous quarter to 2.02% due to greater margin balance utilization and a decline in outstanding supplemental funding.
Asset management and administration fees increased by 21% over the prior year to a record $1.3 billion.
Goldman Sachs Group increased 3.8% to $404.40 after the financial services provider reported better-than-expected quarterly results.
Net revenue in the first quarter rose 16% to $14.2 billion; net earnings increased 28% to $4.1 billion from $3.2 billion; and diluted earnings per share advanced 32% to $11.58 from $8.79 a year ago.
European Markets Trim Gains, Eurozone Industrial Production Rebounded
European markets rebounded in Monday's trading, and the euro held firm amid rising geopolitical tensions in the Middle East.
Benchmark stock indexes in Frankfurt, Paris, and London edged higher in volatile trading, but bond yields in the eurozone traded in a tight range despite rising tensions in the Middle East.
Industrial production in the Euro Area increased 0.8% from the previous month and contracted 6.6% from a year ago in February, Eurostat reported Monday.
Production of capital goods rebounded to 1.2% from a decline of 15.5% in January; durable consumer goods recovered to 1.4% from a decline of 1.2%; and intermediate goods output expanded at a slower pace of 0.5% from a 2.3% increase in the previous month, respectively.
Meanwhile, non-durable consumer goods output fell 0.9% compared to 0.2%, and energy output decreased 3.0% after rising 0.4% in the previous month, respectively.
Europe Indexes and Yields
The DAX index increaed by 0.5% to 18,026.58, the CAC-40 index rose by 0.4% to 8,045.11, and the FTSE 100 index inched lower by 0.4% to 7,965.53.
Last week, the DAX index decreased 0.7%, the CAC 40 index fell 0.1%, and the FTSE 100 index added 1.5%.
The yield on 10-year German bonds edged up to 2.40%; French bonds inched higher to 2.91%; the UK gilts edged higher to 4.24%; and Italian bonds inched lower to 3.77%.
The euro edged higher to $1.065; the British pound inched higher to $1.245; and the U.S. dollar edged lower to 91.27 Swiss cents.
Brent crude decreased $0.61 to $89.92. a barrel, and the Dutch TTF natural gas rose by €0.72 to €31.54 per MWh.
Europe Stock Mover
Temenos soared 20% to CHF 74.15 after the Swiss software company confirmed that a special committee by the board confirmed that the accusations levied by the U.S.-based short seller Hindenburg lacked merit and were misleading.
Telenor ASA rose 0.5% to €10.42 after the Norwegian telecom company said its chief financial officer, Tone Hegland Bachke, plans to leave the company and join SHV Holdings NV.
Mitie Group soared 6.6% to 119.0 pence after the company launched a stock buyback plan.
Ageas increased 3.6% to €44.02 after Fosun Group agreed to sell its 9% stake in the Belgian insurance company for €730 million.
Glanbia advanced 3.7% to €17.52 after the UK-based nutrition company agreed to acquire the U.S.-based Flavor Producers LLC for an initial consideration of $300 million.
Ashmore Group declined 3% to 182.30 pence after the emerging markets fund manager said assets under management declined 4% from the previous quarter.
Inchcape increased 5.3% to 735.50 pence after the UK-based automotive distributor agreed to sell its UK retail operations to Group 1 Automotive UK for £346 million.
China Stocks Face Headwinds Ahead of Tuesday's Economic Reports
Stocks in Shanghai and Hong Kong diverged amid rising tensions in the Middle East.
Iran conducted its missile and drone attacks targeting Israeli territory over the weekend, retaliating for Israel's military strike on Iran's embassy in Syria.
The prospect of a wider war in the Middle East raised worries about crude oil supply disruptions and more attacks in the Red Sea.
Crude oil futures prices traded volatile amid growing worries of supply disruptions in the Middle East, and Brent crude oil prices advanced to a five-month high of $90.16 a barrel in Singapore trading.
The CSI 300 index increased 2.2% to 3,549.08, and the Hang Seng index decreased 0.7% to 16,613.29.
The Hang Seng index decreased to a three-week low amid weak market sentiment as investors await the release of first quarter gross domestic product, March retail sales, and jobless rate data on Tuesday.
China has set a target rate of 5% for the economy to expand in 2025, but investors are worried that the second-largest economy in the world may face headwinds in meeting its lofty goal.
Last week, China reported that exports declined 7.5% in March and consumer prices rose 0.1%, confirming a fragile recovery and weak consumer demand.
China property prices were in focus, after China Vanke said it has sufficient funds to meet its liquidity requirements.
S&P Global downgraded the real estate developer's long-term credit rating, following similar moves by Fitch Ratings and Moody's earlier in the month.
The company also denied that travel restrictions were imposed on its key executives and rejected the idea that the company's anchor shareholders were siphoning off funds from the company's accounts.
Chairman Yu Liang and President Zhu Jiusheng said during the meeting held on Sunday that the company is working on its plan to lower its debt by 100 billion yuan or $13.8 billion by next year.
The company also confirmed that it has support of its largest shareholder Shenzhen Metro and state asset regulator of Shenzhen, according to a regulatory filing.
Moreover, the company is set to complete and deliver apartment homes in a timely manner.
China Vanke decreased 1.3% to HK$3.80, China Resources Land fell 3.3% to HK$33.30, and Longfor Group eased 0.7% to HK$9.34.
Zhiejiang Honxing Technology soared more than 260%, and the electric vehicle wheelmaker listed its stock on the Shenzhen stock exchange at 38.69 yuan per share.
- Scott Peters
- 15 Apr, 2024
- New York City
Tesla declined 2.8% to $166.26 on the news that the electric vehicle maker is planning to cut 10% of its global headcount.
"We have done a thorough review of the organization and made the difficult decision to reduce our headcount by more than 10% globally.
There is nothing I hate more, but it must be done. This will enable us to be lean, innovative, and hungry for the next growth phase cycle," said chief executive Elon Musk in a memo sent to employees.
The electric vehicle industry news publication Electrek first reported on Tesla's internal memo.
Charles Schwab increased 4% to $72.83 after the company reported better-than-expected quarterly results.
Net revenue in the March quarter declined 7% to $4.7 billion from $5.1 billion, net income fell 15% to $1.36 billion from $1.60 billion, and diluted earnings per share dropped 18% to 68 cents from 73 cents a year ago.
Net interest margin increased by 13 basis points from the previous quarter to 2.02% due to greater margin balance utilization and a decline in outstanding supplemental funding.
Asset management and administration fees increased by 21% over the prior year to a record $1.3 billion.
Goldman Sachs Group increased 3.8% to $404.40 after the financial services provider reported better-than-expected quarterly results.
Net revenue in the first quarter rose 16% to $14.2 billion; net earnings increased 28% to $4.1 billion from $3.2 billion; and diluted earnings per share advanced 32% to $11.58 from $8.79 a year ago.
Salesforce declined 5.2% to $279.02 after the customer service software company is looking to acquire Informatica, according to news reports by The Wall Street Journal and Reuters.
- Barry Adams
- 15 Apr, 2024
- New York City
Stocks on Wall Street headed higher after investors reviewed the latest update on retail sales and a fresh batch of earnings and hoped that tensions in the Middle East would not escalate.
The S&P 500 index and the Nasdaq Composite advanced in Monday's trading after registering a loss in the previous two weeks in a row.
Market sentiment was positive after U.S. retail sales in March rose 4% from a year ago and advanced 0.8% from the previous month, according to the U.S. Census Bureau.
The larger-than-expected increase in retail sales helped market sentiment overcome the worries of a widening war in the Middle East.
Iran conducted its missile and drone attacks targeting Israeli territory over the weekend, retaliating for Israel's military strike on Iran's embassy in Syria on April 1.
The prospect of a wider war in the Middle East raised worries about crude oil supply disruptions and more attacks in the Red Sea.
Crude oil futures prices traded volatile amid growing worries of supply disruptions in the Middle East, and Brent crude oil prices hovered near a five-month high of $84.62 a barrel in New York.
Investors are hoping that Israel's prime minister, Benjamin Netanyahu, will avoid a retaliatory strike and prevent the conflict from further escalating after U.S. President Joe Biden's administration urged Israel to restrain and exercise caution.
U.S. Indexes and Yields
The S&P 500 index increased 0.4% to 5,141.18, and the Nasdaq Composite advanced 0.1% to 16,197.63.
The yield on 2-year Treasury notes edged higher to 4.95%, 10-year Treasury notes inched up to 4.63%, and 30-year Treasury bonds edged up to 4.73%.
Crude oil prices surged after Iran conducted its first-ever direct attack on Israel in response to Israel's attack on Iran's embassy in Syria on April 1.
WTI crude oil decreased $0.97 to $84.72 a barrel, and natural gas prices decreased 5 cents to $1.71 a thermal unit.
Gold increased by $7.89 to $2,350.27 an ounce, and silver rose 78 cents to $28.62.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 106.11.
U.S. Stock Movers
Tesla declined 2.8% to $166.26 on the news that the electric vehicle maker is planning to cut 10% of its global headcount.
"We have done a thorough review of the organization and made the difficult decision to reduce our headcount by more than 10% globally.
There is nothing I hate more, but it must be done. This will enable us to be lean, innovative, and hungry for the next growth phase cycle," said chief executive Elon Musk in a memo sent to employees.
The electric vehicle industry news publication Electrek first reported on Tesla's internal memo.
Charles Schwab increased 4% to $72.83 after the company reported better-than-expected quarterly results.
Net revenue in the March quarter declined 7% to $4.7 billion from $5.1 billion, net income fell 15% to $1.36 billion from $1.60 billion, and diluted earnings per share dropped 18% to 68 cents from 73 cents a year ago.
Net interest margin increased by 13 basis points from the previous quarter to 2.02% due to greater margin balance utilization and a decline in outstanding supplemental funding.
Asset management and administration fees increased by 21% over the prior year to a record $1.3 billion.
Goldman Sachs Group increased 3.8% to $404.40 after the financial services provider reported better-than-expected quarterly results.
Net revenue in the first quarter rose 16% to $14.2 billion; net earnings increased 28% to $4.1 billion from $3.2 billion; and diluted earnings per share advanced 32% to $11.58 from $8.79 a year ago.
- Inga Muller
- 15 Apr, 2024
- Frankfurt
European stock markets advanced, bond yields edged higher, and the euro held firm in Monday's trading after the prospects of a wider war in the Middle East rose.
The DAX index increased by 0.8% to 18,070.63, the CAC-40 index rose by 0.7% to 8,065.54, and the FTSE 100 index inched lower by 0.4% to 7,961.44.
Last week, the DAX index decreased 0.7%, the CAC 40 index fell 0.1%, and the FTSE 100 index added 1.5%.
The yield on 10-year German bonds edged up to 2.40%; French bonds inched higher to 2.91%; the UK gilts edged higher to 4.24%; and Italian bonds inched lower to 3.77%.
Temenos soared 20% to CHF CHF 74.15 after the Swiss software company confirmed that a special committee by the board confirmed that the accusations levied by the U.S.-based short seller Hindenburg lacked merit and were misleading.
Telenor ASA rose 0.5% to €10.42 after the Norwegian telecom company said its chief financial officer, Tone Hegland Bachke, plans to leave the company and join SHV Holdings NV.
Mitie Group soared 6.6% to 119.0 pence after the company launched a stock buyback plan.
Ageas increased 3.6% to €44.02 after Fosun Group agreed to sell its 9% stake in the Belgian insurance company for €730 million.
Glanbia advanced 3.7% to €17.52 after the UK-based nutrition company agreed to acquire the U.S.-based Flavor Producers LLC for an initial consideration of $300 million.
Ashmore Group declined 3% to 182.30 pence after the emerging markets fund manager said assets under management declined 4% from the previous quarter.
Inchcape increased 5.3% to 735.50 pence after the UK-based automotive distributor agreed to sell its UK retail operations to Group 1 Automotive UK for £346 million.
- Bridgette Randall
- 15 Apr, 2024
- Frankfurt
European markets rebounded in Monday's trading, and the euro held firm amid rising geopolitical tensions in the Middle East.
Benchmark stock indexes in Frankfurt, Paris, and London edged higher in volatile trading, but bond yields in the eurozone traded in a tight range despite rising tensions in the Middle East.
Industrial production in the Euro Area increased 0.8% from the previous month and contracted 6.6% from a year ago in February, Eurostat reported Monday.
Production of capital goods rebounded to 1.2% from a decline of 15.5% in January; durable consumer goods recovered to 1.4% from a decline of 1.2%; and intermediate goods output expanded at a slower pace of 0.5% from a 2.3% increase in the previous month, respectively.
Meanwhile, non-durable consumer goods output fell 0.9% compared to 0.2%, and energy output decreased 3.0% after rising 0.4% in the previous month, respectively.
Europe Indexes and Yields
The DAX index increased by 0.8% to 18,070.63, the CAC-40 index rose by 0.7% to 8,065.54, and the FTSE 100 index inched lower by 0.4% to 7,961.44.
Last week, the DAX index decreased 0.7%, the CAC 40 index fell 0.1%, and the FTSE 100 index added 1.5%.
The yield on 10-year German bonds edged up to 2.40%; French bonds inched higher to 2.91%; the UK gilts edged higher to 4.24%; and Italian bonds inched lower to 3.77%.
The euro edged higher to $1.065; the British pound inched higher to $1.245; and the U.S. dollar edged lower to 91.27 Swiss cents.
Brent crude decreased $0.85 to $89.68. a barrel, and the Dutch TTF natural gas rose by €0.78 to €30.06 per MWh.
Europe Stock Mover
Temenos soared 20% to CHF 74.15 after the Swiss software company confirmed that a special committee by the board confirmed that the accusations levied by the U.S.-based short seller Hindenburg lacked merit and were misleading.
Telenor ASA rose 0.5% to €10.42 after the Norwegian telecom company said its chief financial officer, Tone Hegland Bachke, plans to leave the company and join SHV Holdings NV.
Mitie Group soared 6.6% to 119.0 pence after the company launched a stock buyback plan.
Ageas increased 3.6% to €44.02 after Fosun Group agreed to sell its 9% stake in the Belgian insurance company for €730 million.
Glanbia advanced 3.7% to €17.52 after the UK-based nutrition company agreed to acquire the U.S.-based Flavor Producers LLC for an initial consideration of $300 million.
Ashmore Group declined 3% to 182.30 pence after the emerging markets fund manager said assets under management declined 4% from the previous quarter.
Inchcape increased 5.3% to 735.50 pence after the UK-based automotive distributor agreed to sell its UK retail operations to Group 1 Automotive UK for £346 million.
- Li Chen
- 15 Apr, 2024
- Hong Kong
Stocks in Shanghai and Hong Kong diverged amid rising tensions in the Middle East.
Iran conducted its missile and drone attacks targeting Israeli territory over the weekend, retaliating for Israel's military strike on Iran's embassy in Syria.
The prospect of a wider war in the Middle East raised worries about crude oil supply disruptions and more attacks in the Red Sea.
Crude oil futures prices traded volatile amid growing worries of supply disruptions in the Middle East, and Brent crude oil prices advanced to a five-month high of $90.16 a barrel in Singapore trading.
The CSI 300 index increased 2.2% to 3,549.08, and the Hang Seng index decreased 0.7% to 16,613.29.
The Hang Seng index decreased to a three-week low amid weak market sentiment as investors await the release of first quarter gross domestic product, March retail sales, and jobless rate data on Tuesday.
China has set a target rate of 5% for the economy to expand in 2025, but investors are worried that the second-largest economy in the world may face headwinds in meeting its lofty goal.
Last week, China reported that exports declined 7.5% in March and consumer prices rose 0.1%, confirming a fragile recovery and weak consumer demand.
China property prices were in focus, after China Vanke said it has sufficient funds to meet its liquidity requirements.
S&P Global downgraded the real estate developer's long-term credit rating, following similar moves by Fitch Ratings and Moody's earlier in the month.
The company also denied that travel restrictions were imposed on its key executives and rejected the idea that the company's anchor shareholders were siphoning off funds from the company's accounts.
Chairman Yu Liang and President Zhu Jiusheng said during the meeting held on Sunday that the company is working on its plan to lower its debt by 100 billion yuan or $13.8 billion by next year.
The company also confirmed that it has support of its largest shareholder Shenzhen Metro and state asset regulator of Shenzhen, according to a regulatory filing.
Moreover, the company is set to complete and deliver apartment homes in a timely manner.
China Vanke decreased 1.3% to HK$3.80, China Resources Land fell 3.3% to HK$33.30, and Longfor Group eased 0.7% to HK$9.34.
Zhiejiang Honxing Technology soared more than 260%, and the electric vehicle wheelmaker listed its stock on the Shenzhen stock exchange at 38.69 yuan per share.
- Arun Goswami
- 15 Apr, 2024
- Mumbai
Stocks in Mumbai faced selling pressure amid rising tensions in the Middle East after Iran launched missiles and drone strikes targeting Israel.
Brent crude oil futures prices traded volatile and hovered near their five-month highs of $90.11 a barrel in Singapore trading.
The Sensex index decreased by 0.8% to 73,67921, and the Nifty index declined by 0.7% to 22,352.10.
On the Mumbai stock exchange, 74 stocks traded at their 52-week highs, and 21 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds inched higher to 7.16%, and the Indian rupee edged lower at ₹83.26 against the U.S. dollar.
TCS increased 0.8% to ₹4,032.0 after the company reported stronger-than-expected March quarter results.
Aster DM Healthcare soared 7% to ₹522.35 after the hospital chain announced a special dividend of ₹118 per share.
Anand Rathi Wealth Limited rose 2.7% to ₹4,119.0 after the financial services company reported better-than-expected March quarter results.
Senco Gold jumped 17% to ₹940.0 after the jewelry retailer reported sales in the March quarter increased by 39%.
The specialty retailer also offered an optimistic outlook for the fiscal year 2025 first quarter, citing positive demand in the upcoming festival and wedding seasons.
- Li Chen
- 13 Apr, 2024
- Hong Kong
China's exports and imports dropped in March but advanced in the first quarter as global trade patterns evolved and became more fragmented.
Exports in March decreased 7.5% to $279.7 billion and imports fell 1.9% to $221.2 billion, the General Administration of Customs reported late Friday.
Exports declined from a higher base in March last year, after they increased 14.8% from a year ago to a record high in the month at $315.6 billion.
Trade surplus in March declined to $58.6 billion from $78.4billion and fell from January-February 2024 surplus of $125.2 billion.
For the first three months of 2024, exports increased 1.5% to $807.50 billion, rebounding from a contraction of 1.2% in the final quarter of 2023.
China's exports are still facing headwinds from rising geopolitical tension, persistent weakness in the yen, and a growing negative perception of China in the ASEAN region.
The Chinese government is intensifying its efforts to support the growth of exports of electric vehicles, lithium-ion batteries, and renewable energy products, but together they still account for less than 5% of China's exports.
As the Chinese government shifts its focus to large state-owned companies, private companies are shifting their production to Vietnam, Mexico, Malaysia, and Hungary.
In the first quarter, China's exports contracted to the U.S. by 1.3%, to the European Union by 5.7%, to Australia by 8.9%, and to South Korea by 9.8%.
Overall shipments to ASEAN countries increased by 4.1%, after an 18.5% jump in Vietnam offset the declines of 7.2% in Singapore and 14.4% in the Philippines.
In yuan terms, China's exports in March increased 4.9% to 5.74 trillion yuan, and imports rose 5% to 4.43 trillion yuan, according to customs data.
China's international trade crossed 10 trillion yuan for the first time in the first quarter, and total imports and exports rose to 5% in the period, with the growth rate climbing to a six-quarter high, deputy head Wang Lingjun said at the press conference after the release of data on Friday.
For over a decade, China has been investing and expanding its trade ties around the world.
China's international trade with Belt and Road Initiative countries increased 5.5% to 4.82 trillion yuan, making it the largest trading block.
International trade with the U.S., European Union, Japan, and South Korea accounts for about 3.3 trillion yuan, or 33.4% of the total.
- Scott Peters
- 12 Apr, 2024
- New York City
JPMorgan Chase declined 4.9% to $185.90 after the bank reported strong results in the March quarter, but investors sold stock on the lack of improvement in its net interest income.
JPMorgan reported net revenue in the first quarter increased 9% to $41.9 billion from $38.3 billion, net income rose 6% to $13.4 billion from $12.6 billion, and diluted earnings per share advanced 8% to $4.44 from $4.10 a year ago.
The company provisioned $1.9 billion for credit losses, 17% smaller than a year ago, indicating an improving loan portfolio.
Customers continue to shift deposits to higher-yielding assets, and bank deposits declined 7% in the quarter, excluding First Republic's acquisition.
The company also paid $725 million in special assessment charges to the FDIC to cover costs linked to bank failures last year.
Wells Fargo increased 0.1% to $56.78 after the bank reported better-than-expected earnings and revenue for the first quarter.
Total revenue in the first quarter increased to $20.86 billion from $20.73 billion, net income fell to $4.6 billion from $4.99 billion, and diluted earnings per share declined to $1.20 from $1.23 a year ago.
Net interest income decreased 8% from a year ago to $12.2 billion from $13.3 billion due to the impact of higher interest rates on funding costs, including the impact of customer migration to higher-yielding deposit products as well as lower loan balances, partially offset by higher yields on earning assets.
Average loans in the quarter eased to $928 billion from $948 billion, and average deposits fell to $1.34 trillion from $1.36 trillion a year ago, respectively.
Provision for credit losses fell 22% to $938 billion from $1.2 trillion a year ago.
The company repurchased 112.5 million of its own shares for $6.1 billion in the quarter.
BlackRock decreased 1.3% to $775.51 after the financial service company reported better-than-expected revenue after fees and assets under management climbed.
Citigroup decreased 0.6% to $60.33 after the bank said revenue declined 2% to $21.1 billion and net income dropped 27% to $3.4 billion, or $1.57 per share.
Fixed-income trading revenue fell 10% to $4.2 billion, investment banking revenue rose 35% to $903 million, and services revenue, which supports the needs of global corporations, rose 8% to $4.8 billion.
- Barry Adams
- 12 Apr, 2024
- New York City
Stock market indexes decreased, and investors reviewed the latest earnings from big banks like JPMorgan, Citigroup, and Wells Fargo.
The S&P 500 index and the Nasdaq Composite inched lower in Friday's trading and diverged in weekly performance, indicating a bifurcated market.
JPMorgan reported strong quarterly results, but the company cited higher inflation as weighing on the economy.
The bank also held its annual net interest income estimate at $90 billion, suggesting no room for improvement compared to the previous year.
Market sentiment remained cautious as investors debated future rate paths, resilient economic conditions, and moderating labor market conditions.
Investors are also worried that the high valuation of tech companies could pose a challenge for market indexes to extend additional gains in 2024.
The Nasdaq Composite is trading at about 28 times earnings multiples, and the S&P 500 index is approaching a multiple of 25, which is not cheap by historical measures.
In 2024, the Nasdaq Composite is up 10.4% and the S&P 500 index is up 9.0%.
U.S. Indexes and Yields
The S&P 500 index increased 0.5% to 5,184.08, and the Nasdaq Composite rose 0.8% to 16,292.93.
The yield on 2-year Treasury notes edged lower to 4.89%, 10-year Treasury notes inched up to 4.50%, and 30-year Treasury bonds edged up to 4.61%.
Crude oil prices surged on speculation that Iran is preparing to carry out a direct attack on Israel in response to Israel's attack on Iran's embassy in Syria two weeks ago.
WTI crude oil increased $2.02 to $86.99 a barrel, and natural gas prices decreased 5 cents to $1.75 a thermal unit.
Gold increased by $20.06 to $2,396.12 an ounce, and silver rose 80 cents to $29.29.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 106.01.
U.S. Stock Movers
JPMorgan Chase declined 4.9% to $185.90 after the bank reported strong results in the March quarter, but investors sold stock on the lack of improvement in its net interest income.
JPMorgan reported net revenue in the first quarter increased 9% to $41.9 billion from $38.3 billion, net income rose 6% to $13.4 billion from $12.6 billion, and diluted earnings per share advanced 8% to $4.44 from $4.10 a year ago.
The company provisioned $1.9 billion for credit losses, 17% smaller than a year ago, indicating an improving loan portfolio.
Customers continue to shift deposits to higher-yielding assets, and bank deposits declined 7% in the quarter, excluding First Republic's acquisition.
The company also paid $725 million in special assessment charges to the FDIC to cover costs linked to bank failures last year.
Wells Fargo increased 0.1% to $56.78 after the bank reported better-than-expected earnings and revenue for the first quarter.
Total revenue in the first quarter increased to $20.86 billion from $20.73 billion, net income fell to $4.6 billion from $4.99 billion, and diluted earnings per share declined to $1.20 from $1.23 a year ago.
Net interest income decreased 8% from a year ago to $12.2 billion from $13.3 billion due to the impact of higher interest rates on funding costs, including the impact of customer migration to higher-yielding deposit products as well as lower loan balances, partially offset by higher yields on earning assets.
Average loans in the quarter eased to $928 billion from $948 billion, and average deposits fell to $1.34 trillion from $1.36 trillion a year ago, respectively.
Provision for credit losses fell 22% to $938 billion from $1.2 trillion a year ago.
The company repurchased 112.5 million of its own shares for $6.1 billion in the quarter.
- Inga Muller
- 12 Apr, 2024
- Frankfurt
European markets advanced in Friday's trading and trimmed weekly losses amid hopes of interest rate cuts in June.
The DAX index increased by 0.9% to 18,109.54, the CAC-40 index rose by 0.9% to 8,096.40, and the FTSE 100 index inched higher by 1.2% to 8,022.34.
For the week, the DAX index decreased 0.7%, the CAC 40 index fell 0.1%, and the FTSE 100 index added 1.5%.
The yield on 10-year German bonds edged down to 2.38%; French bonds inched higher to 2.87%; the UK gilts edged higher to 4.19%; and Italian bonds inched lower to 3.78%.
Energy stocks advanced after Brent crude oil futures rose above $90 a barrel on speculation that Iran is likely to conduct a retaliatory strike following Israel's attack on its Syrian embassy.
BP plc gained 2.4% to 534.60 pence, and Shell PLC advanced 1.9% to 2,912.86 pence.
Mining companies rose after copper futures extended two-month gains and rose to a two-year high.
Antofagasta jumped 4.3% to 2,314.0 pence, Glencore advanced 3.9% to 479.93, and Anglo American gained 4.1% to 2,211.0 pence.
Societe Generale SA increased 4.8% to €26.43 a day after the company agreed to sell its equipment leasing and financing division to a private equity firm for €1.1 billion.
Mercantile Investment Trust increased 0.9% to 224.50 pence after the company swung to an annual profit.
ThyssenKrupp AG advanced 1.6% to €4.98, after the German steel company announced restructuring of its loss-making Duisburg steel division and significant production capacity cuts.
The company announced its plans to cut annual steel production capacity to between 9.0 and 9.5 million tons from the current capacity of 11.5 million tons.
- Bridgette Randall
- 12 Apr, 2024
- Frankfurt
European markets advanced in Friday's trading, bond yields declined, and the euro drifted lower.
Benchmark indexes in Frankfurt, Paris, and London advanced after the final reading of the consumer price index confirmed the weakening trend in inflationary pressures.
German consumer price inflation declined to an annual increase of 2.2% in March from 2.5% in February, Destatis said in its final report on Friday.
France's consumer price inflation eased to an annual rise of 2.5% in March from 3.0% in February, INSEE confirmed in its final report on Friday.
Both inflation reports matched previously announced estimates released by the statistical offices of Germany and France.
Spain's consumer price inflation in March decreased to 3.2% after rising to 3.6% in February, the statistical agency INE reported Friday.
Core inflation, which excludes volatile food and energy prices, eased to 3.3% from 3.5% in the previous month.
The UK may have exited a recession after the latest monthly GDP data pointed towards a rebound in economic activity.
The UK's real GDP increased monthly by 0.1% in February, following a revised 0.3% growth in January, the Office for National Statistics reported Friday.
Europe Indexes and Yields
The DAX index increased by 0.9% to 18,109.54, the CAC-40 index rose by 0.9% to 8,096.40, and the FTSE 100 index inched higher by 1.2% to 8,022.34.
For the week, the DAX index decreased 0.7%, the CAC 40 index fell 0.1%, and the FTSE 100 index added 1.5%.
The yield on 10-year German bonds edged down to 2.38%; French bonds inched higher to 2.87%; the UK gilts edged higher to 4.19%; and Italian bonds inched lower to 3.78%.
The euro edged higher to $1.065; the British pound inched higher to $1.245; and the U.S. dollar edged lower to 91.32 Swiss cents.
Brent crude decreased $1.04 to $90.78. a barrel, and the Dutch TTF natural gas rose by €0.57 to €30.09 per MWh.
Europe Stock Mover
Energy stocks advanced after Brent crude oil futures rose above $90 a barrel on speculation that Iran is likely to conduct a retaliatory strike following Israel's attack on its Syrian embassy.
BP plc gained 2.4% to 534.60 pence, and Shell PLC advanced 1.9% to 2,912.86 pence.
Mining companies rose after copper futures extended two-month gains and rose to a two-year high.
Antofagasta jumped 4.3% to 2,314.0 pence, Glencore advanced 3.9% to 479.93, and Anglo American gained 4.1% to 2,211.0 pence.
Societe Generale SA increased 4.8% to €26.43 a day after the company agreed to sell its equipment leasing and financing division to a private equity firm for €1.1 billion.
Mercantile Investment Trust increased 0.9% to 224.50 pence after the company swung to an annual profit.
ThyssenKrupp AG advanced 1.6% to €4.98, after the German steel company announced restructuring of its loss-making Duisburg steel division and significant production capacity cuts.
The company announced its plans to cut annual steel production capacity to between 9.0 and 9.5 million tons from the current capacity of 11.5 million tons.
- Akira Ito
- 12 Apr, 2024
- Tokyo
Stock market indexes rebounded and extended weekly gains, and the yen drifted to a new 34-year low against the U.S. dollar.
Stock market sentiment was negatively impacted by the persistent decline in the yen, as the Japanese currency drifted to 153.256 in Tokyo trading without prompting government intervention.
The yield on the Japanese government bond rose to 0.8%, reflecting market nervousness and a widening gap with the U.S. and Japan bond yields.
Last month, the Bank of Japan ended its negative rate regime and revised interest rates for the first time since 2007, but that move failed to prop up the yen.
Investors are anticipating a currency market intervention coordinated by the ministry of finance and the Bank of Japan, but any relief to the yen is expected to be short-lived.
Many currency traders in Tokyo are anticipating the yen to extend its 2024 loss of 8.5%, and the embattled currency may drift below 157 against the U.S. dollar.
Moreover, the Chinese yuan has also been approaching its record low of 7.366 against the U.S. dollar, which could further put pressure on the yen.
The Nikkei 225 Stock Average gained 0.3% to 39,572.26, and the Topix index rose 0.4% to 2,759.11.
For the week, the Nikkei added 0.4% and the Topix advanced 1.3%.
In stock trading, tech stocks rebounded, and financial services stocks traded mixed.
Tokyo Electron, Advantest, Sakura Internet, SoftBank, and Lasertec gained between 1.4% and 2.5%.
Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho Financial fell between 0.8% and 1.4%.
Vehicle makers Toyota Motor, Honda Motor, and Subaru gained around 0.5%, but Nissan Motor declined 1.1%.