Fourth Quarter GDP Growth Revised Higher to 3.4%

The U.S. economy expanded at a slightly higher than previously expected rate in the fourth quarter.

The annualized rate of real economic growth was revised to 3.4% from the previous estimate of 3.2%, the Bureau of Economic Analysis reported Thursday. 

The update primarily reflected upward revisions to consumer spending and nonresidential fixed investment, partly offset by a downward revision to private inventory investment. 

Compared to the third quarter of 2023, the deceleration in economic growth adjusted for inflation in the fourth quarter primarily reflected a downturn in private inventory investment and slowdowns in federal government spending and residential fixed investment. 

Imports also decelerated.

The real gross domestic product increase in 2023 was left unrevised in the third estimate at 2.5%. 

The annual economic growth accelerated from 1.9% in 2022, primarily reflecting higher consumer spending, non-residential fixed investment, local and federal government spending, and exports that were partly offset by decreases in residential fixed investment and private inventory investment. 

Current-dollar gross domestic product in the fourth quarter was revised higher to 5.1% from 4.9% in the second estimate. 

The current-dollar gross domestic product in 2023 was left unrevised at 6.3%. 

S&P 500 Set for Best Quarterly Gain In Five Years

Benchmark indexes rested in early trading, and stocks lacked direction in thin trading ahead of the three-day weekend. 

The S&P 500 index and the Nasdaq Composite are set to close higher for the week, the month, and the quarter after the artificial intelligence boom drove leading semiconductor and tech stocks higher. 

The S&P 500 index is up about 10% in the first quarter, 3% in March, and down 0.1% in the week as of the close of Wednesday. 

The Nasdaq Composite is up 9.3% in the quarter, 1.9% in March, and down 0.5% in the week as of the close of Wednesday. 

Investors are looking ahead to the release of gross domestic product growth, weekly jobless claims, and consumer sentiment data later in the day. 

The personal income and outlays report and personal consumption expenditure price index are scheduled to be released on Friday, and the market will react to these reports when trading resumes on Monday following the Good Friday holiday. 

U.S. Indexes and Yields

The S&P 500 index decreased 0.01% to 5,247.56, and the Nasdaq Composite fell 0.2% to 16,369.43. 

The yield on 2-year Treasury notes increased to 4.62%, 10-year Treasury notes inched up to 4.22%, and 30-year Treasury bonds edged down to 4.36%.

WTI crude oil increased $1.29 to $82.63 a barrel, and natural gas prices decreased 6 cents to $1.69 a thermal unit.

Gold increased by $17.50 to $2,211.68 an ounce, and silver fell 9 cents to $24.57. 

The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 104.55.

U.S. Stock Movers

MillerKnoll plunged 17.3% to $25.31 after the steel furniture company reported weaker-than-expected revenue of $872.3 million in its latest quarter. Adjusted earnings per share of 45 cents were ahead of market expectations. 

RH rose 9.4% to $325.0 after the furniture retailer reported weaker-than-expected quarterly financial results, and the company guided sales to decline by a low single digit in the current quarter. 

However, stock advanced after the retailer estimated an improving demand trend for the remainder of the year. 

Verint Systems rose 3.1% to $32.06 after the customer engagement software system developer reported better-than-expected quarterly results. 

Revenue in the quarter increased to $265.1 million, and adjusted earnings per share were $1.07. 

Sprinklr increased 12.4% to $14.59 after the social media marketing and content management software developer reported better-than-expected quarterly results. 

Revenue increased to $194.2 million, and adjusted earnings per share were 13 cents. 

Estee Lauder increased by 4.4% to $151.48. 

Europe Movers: Casino Guichard, JD Sports, Kontron, Renault, Spirent Communications, Stratec

European markets extended weekly gains ahead of a 3-day Easter break as investors debated the rate path and macroeconomic outlook for the rest of the year. 

The DAX index increased by 0.2% to 18,506.05, the CAC-40 index rose by 0.5% to 8,249.09, and the FTSE 100 index inched higher by 0.5% to 7,974.41.

The yield on 10-year German bonds edged down to 2.31%; French bonds inched lower to 2.81%; the UK gilts edged lower to 3.99%; and Italian bonds inched lower to 3.66%.

Renault SA advanced 1.1% to €46.96 after the company sold 99.13 million shares, or about 2.5%, to Nissan for €358 million and participated in the company's stock repurchase program. 

Casino Guichard Perrachon plunged 66% to €0.036 after the retailer announced the completion of its financial restructuring. 

Kontron AG dropped 5.5% to €20.94 after the IoT company reported its full-year 2023 financial results. 

Stratec SE dropped 9.8% to €38.55 after the German maker of in-vitro diagnostic analyzers reported a decline in 2023 profit due to a fall in sales and an increase in expenses. 

Spirent Communications soared 11.2% to 199.10 pence after the telecommunications company accepted the £1.16 billion or $146 billion offer from Keysight Technologies. 

JD Sports Fashions jumped 9.6% to 127.50 pence after the specialty retailer reiterated its full-year 2023 pre-tax profit before adjustments to fall between £915 million and £935 million. 

German Retail Sales Extend Decline to Fourth Month, UK's GDP Barely Expanded In 2023

European markets advanced, bond yields eased, and the euro and the pound drifted lower. 

Benchmark indexes in Paris and Frankfurt inched higher in record territory and extended weekly gains ahead of the Easter holiday on Friday and Monday. 

The DAX index extended its holiday-shortened weekly gain to 1.8%, the CAC-40 gained 1.2%, and the FTSE 100 index advanced 1%. 

In March, the DAX gained 5%, the CAC-40 index advanced 3.2%, and the FTSE 100 index increased 4.5%.  

In the quarter, the DAX increased 10.3%, the CAC-40 jumped 9.0%, and the FTSE 100 index gained 3.2%. 

Investors bid up stocks in the hope that the European Central Bank is likely to lower its rate as early as June after the Riksbank on Wednesday held its policy rate steady and suggested a possible rate cut in May or June. 

The UK economy was confirmed to be in a technical recession, according to the latest data released by the Office for National Statistics. 

The UK's economy contracted by 0.3% in the fourth quarter, as previously estimated, after shrinking by 0.1% in the third quarter, according to the final data released by the statistical agency. 

With the economy in a technical recession towards the end of the year, gross domestic product rose only 0.1% in 2023, sharply lower than 4.3% in 2022. 

German Retail Sales Extend Decline to Fourth Month

German retail sales unexpectedly declined in February after consumers retrenched to basics amid elevated interest rates and high inflation. 

Retail sales declined for the fourth month in a row to 1.9% in February, and the decline was the steepest since October 2022, the Federal Statistical Office, destatis, reported Thursday. 

Retail sales declined 2.7% from a year ago, fell for the fourth month in a row, and fell at the fastest pace in five months. 

Food sales declined 1.7%, and non-food item sales dropped 1.0%. 

Real calendar and seasonally adjusted sales in non-food retail fell by 1.0% in February compared to the previous month and by 2.6% compared to a year ago. 

Real sales in Internet and mail order sales in February declined 2.8% compared to the previous month and dropped 4.7% from a year ago. 

German Payrolls Expanded at a Slower pace. 

The German job market expanded at a slower pace in February compared to the previous month. 

Seasonally adjusted payrolls increased by 14,000 following the expansion of 56,000 in January, and about 45.7 million people were employed in Germany, according to the preliminary calculation by the statistical agency. 

Germany's jobless rate increased after the expanding job market attracted more people to the labor force. 

The German unemployment rate rose to 3.5% in February from 3.0% in the corresponding month a year ago, Destatis reported Thursday in a separate report. 

About 1.55 million people were unemployed in February, an increase of 14.3%, or 193,000, compared to a year ago. 

Adjusted for seasonal and irregular effects, the number of unemployed people was 1.41 million in February, 5,000 higher than in the previous month of January. 

The adjusted unemployment rate is unchanged from the previous month of January, at 3.2%. 

Europe Indexes and Yields

The DAX index increased by 0.2% to 18,506.05, the CAC-40 index rose by 0.5% to 8,249.09, and the FTSE 100 index inched higher by 0.5% to 7,974.41.

The yield on 10-year German bonds edged down to 2.31%; French bonds inched lower to 2.81%; the UK gilts edged lower to 3.99%; and Italian bonds inched lower to 3.66%.

The euro edged higher to $1.077, the British pound inched higher to $1.259, and the U.S. dollar held steady at 90.60 Swiss cents.

Brent crude decreased $0.37 to $85.77. a barrel, and the Dutch TTF natural gas fell by €0.20 to €27.49 per MWh.

Europe Stock Movers

Renault SA advanced 1.1% to €46.96 after the company sold 99.13 million shares, or about 2.5%, to Nissan for €358 million and participated in the company's stock repurchase program. 

Casino Guichard Perrachon plunged 66% to €0.036 after the retailer announced the completion of its financial restructuring. 

Stratec SE dropped 9.8% to €38.55 after the German maker of in-vitro diagnostic analyzers reported a decline in 2023 profit due to a fall in sales and an increase in expenses. 

Xi Jinping Assures Additional "Law-based" Reforms to Foreign Leaders

Stocks in Shanghai and Hong Kong advanced following better-than-expected earnings from China Life, Haier Smart Home, and ICBC. 

Investors have shifted their attention to corporate earnings and economic data flow after the market intervention by government-controlled funds lifted broader indexes by more than 10% in February. 

President Xi Jinping met with a with a delegation of U.S. business leaders and pledged to create a more market-friendly business environment for foreign investors. 

The meeting between President Xi and the U.S. business leaders, including senior executives from Pfizer, FedEx, Blackstone, Qualcomm, and Bloomberg, was held at the end of the China Development Forum in Beijing on Wednesday. 

Xi proposed deepening economic reform that is "market-oriented" and "law-based" to create more room for foreign businesses and rejected the narrative that China's economic growth has peaked. 

However, Chinese policymakers have stepped up efforts to support state-controlled large enterprises at the expense of the private sector and curtail the activities of foreign businesses. 

Moreover, small and medium-sized foreign businesses have started leaving China in droves and shifting their business activities to neighboring Vietnam, Mexico, or other markets in India and ASEAN countries. 

The Chinese government's support of widespread intellectual property theft and recent stringent controls on profit repatriation have also accelerated the sharp decline in foreign direct investment in the last four years. 

Beijing policymakers are running out of conventional policy tools to revive economic growth after the protracted property market slump are negatively impacting steel, cement, construction and financial services industries. 

President Xi Jinping in a widely publicized comments in the government-controlled media urging the central bank to start purchasing treasury bonds, a dramatic policy shift not seen in nearly 25 years.  

Financial markets are closed on Friday and Monday for public holidays in Hong Kong, but markets will remain open for business in mainland China. 

The CSI 300 index increased 1.1% to 3,542.0, and the Hang Seng index added 1.6% to 16,660.76. 

Nikkei Drops 1%, China Life, Haier, and ICBC Earnings Lift China Indexes

Asian markets traded in a tight range, and market indexes in Japan eased, but they gained in China and India. 

Profit Booking Drives Tokyo Stocks Lower 

In Asia, the Nikkei 225 Stock Average fell more than 1% on profit-taking and the worries of an intervention to support the falling yen, which is hovering near a 34-year low. 

Stocks in Tokyo closed lower on the final day of the holiday-shortened week as investors booked profits in tech and financial stocks. 

The yen traded at 151.43 against the U.S. dollar after finance ministry officials stepped up their verbal intervention efforts in support of the yen, despite the Bank of Japan ending its negative rate regime last week. 

Investors are looking forward to the release of industrial output, retail sales, and unemployment data on Friday. 

The Nikkei 2225 Stock Average dropped 1.5% to 40,162.65, and the Topix index dropped 1.7% to 2,751.92. 

SoftBank, Tokyo Electron, Screen Holdings, and Advantest declined between 0.2% and 1%, but FANUC advanced 0.5%. 

Among vehicle markers, Honda Motor, Toyota Motor, Nissan Motor, Suzuki Motor, and Subaru Corp. traded between 0.5% gain and 1.6% fall. 

Mitsubishi UFJ, Mizuho Financial Group, and Sumitomo Mitsui declined between 0.3% and 1.2%. 

The Chinese President Assures Foreign Leaders of Additional Reforms 

Stocks in Shanghai and Hong Kong advanced following better-than-expected earnings from China Life, Haier Smart Home, and ICBC. 

Investors have shifted their attention to corporate earnings and economic data flow after the market intervention by government-controlled funds lifted broader indexes by more than 10% in February. 

President Xi Jinping met with a with a delegation of U.S. business leaders and pledged to create a more market-friendly business environment for foreign investors. 

The meeting between President Xi and the U.S. business leaders, including senior executives from Pfizer, FedEx, Blackstone, Qualcomm, and Bloomberg, was held at the end of the China Development Forum in Beijing on Wednesday. 

Xi proposed deepening economic reform that is "market-oriented" and "law-based" to create more room for foreign businesses and rejected the narrative that China's economic growth has peaked. 

However, Chinese policymakers have stepped up efforts to support state-controlled large enterprises at the expense of the private sector and curtail the activities of foreign businesses. 

Moreover, small and medium-sized foreign businesses have started leaving China in droves and shifting their business activities to neighboring Vietnam, Mexico, or other markets in India and ASEAN countries. 

The Chinese government's support of widespread intellectual property theft and recent stringent controls on profit repatriation have also accelerated the sharp decline in foreign direct investment in the last four years. 

Financial markets are closed on Friday and Monday for public holidays in Hong Kong, but markets will remain open for business in mainland China. 

The CSI 300 index increased 1.1% to 3,542.0, and the Hang Seng index added 1.6% to 16,660.76. 

Haier Smart Home rose 7.5% to HK$24.20 after the maker of consumer appliances reported better-than-expected 2023 financial results. 

China Life Insurance rose 5.4% to HK$9.41 after the largest insurance company in China reported a smaller-than-expected 31% decline in earnings in 2023. 

ICBC Bank declined 3.4% to HK$3.94 after the financial services company reported weaker-than-expected 2023 financial results. 

India Indexes Extend Weekly Gains 

Benchmark indexes in Mumbai advanced ahead of a 3-day weekend in light trading. 

The Sensex and the Nifty indexes gained a fraction and inched into record territory as investors debated the global interest rate outlook. 

Investors are hoping that interest rate cuts in the U.S. and the eurozone may encourage the Reserve Bank of India to lower domestic rates. 

However, persistently high inflation may delay a rate cut, and the Federal Reserve may decide to keep higher rates for longer. 

The Sensex index increased 0.5% to 73,360.05, and the Nifty index edged up 0.5% to 22,225.40. 

Two popular indexes extended holiday-shortened weekly gains to 1.3%. 

On the Mumbai stock exchange, 47 stocks traded at their 52-week highs and 56 stocks traded at their 52-week lows.

The yield on the 10-year Indian government bonds decreased to 7.04%, and the Indian rupee edged lower to ₹83.35 against the U.S. dollar.

Cooler Inflation Lifts Australian Index to a New Record High

Australian stock market indexes traded at a new record high after consumer price inflation in February was weaker than expected at 3.4%. 

Australian indexes advanced in the hopes that the two-year low inflation rate for the third month in a row in February may spur the central bank to lower the policy rate. 

The ASX 200 index gained 1% to close at 7,896.90, a new record high. 

The benchmark index advanced 3% in March and jumped 3.6% in the first quarter of 2024. 

India Movers: BHEL, Cyient, Dr. Reddy's, GOCL, Maruti Suzuki, NHPC, REC

Benchmark indexes in Mumbai advanced, and extended holiday-shortened weekly gains to more than 1.4%. 

The Sensex index increased 0.5% to 73,360.05, and the Nifty index edged up 0.5% to 22,225.40. 

On the Mumbai stock exchange, 47 stocks traded at their 52-week highs and 56 stocks traded at their 52-week lows.

Maruti Suzuki India decreased 1% to ₹12,391.10, and the largest automaker in India reshuffled its management ranks in several business functions and activities. 

Bharat Heavy Electricals jumped 2% to ₹248.10 after Adani Power awarded the company an an order to build a ₹4,000 crore power plant project in Chhattisgarh.  

Dr. Reddy's Labs added 1.4% to ₹6,128.10, and the company struck a nationwide distribution partnership with Sanofi India for its vaccine products. 

NHPC jumped 1.2% to ₹90.0 after the company's board approved the company's plans to borrow 6,100 crore in the fiscal year 2025.

Moreover, the board also approved the company's plans to close the Loktak Downstream Hydroelectric Project in west Manipur with an annual power capacity of 66 MW. 

GOCL Corporation soared 10% to ₹417.85 after the company signed a preliminary agreement with Squarespace Infra City, based in Hyderabad, to monetize its 264.50-acre land facility in Kukatpally, Hyderabad. 

REC Limited increased 1.9% to ₹453.95 after the company's board approved a borrowing limit of 1.6 lakh crore through the sale of short- and long-term debts and loans. 

Cyient Ltd. added 1.7% to ₹1,976.65, and the company signed a collaboration with Deutsche Aircraft to design the  rear fuselage of a 40-seat turboprop aircraft. 

Rate Optimism Supports Stock Investor Enthusiasm In the U.S. and Europe

Stock market indexes lacked direction as investors debated the durability of the recent market rally and future rate paths. 

Investors are also looking ahead to the release of the price consumption expenditure price index on Friday, an alternative measure of inflation that takes into account customers' behavior to substitute cheaper products. 

The PCE price index generally understates inflation, as the metric calculates inflation after consumers adjust to cheaper alternatives, reflecting a lower standard of living. 

The S&P 500 index and the Nasdaq Composite are set to extend monthly and quarterly gains after an artificial intelligence boom powered market rally lifted two popular indexes. 

The S&P 500 index has gained 9.1%, and the Nasdaq Composite index has advanced 8.7% as of Tuesday's close.

In March, as of Tuesday's close, the S&P 500 increased 2.1% and the Nasdaq Composite advanced 1.4%. 

Investors have bid up stocks in the hopes that the Federal Reserve is more likely to lower interest rates as early as June after the Federal Reserve maintained its projection to cut interest rates by three times in the year. 

However, investor hopes may be dashed if core inflation, which excludes volatile food and energy prices, stays above 2%. 

Moreover, rising tensions in the Middle East are keeping crude oil prices elevated, and that is keeping goods and services inflation at an elevated pace. 

In addition, wages are still rising at a rate of more than 4% annually, and the pace of wage inflation is inconsistent with the Fed's target rate of 2%. 

Investors' rate-cut hopes may be dented if core inflation stays above 3% and wage inflation stays above 4%, forcing the central bank to keep interest rates higher for longer until the end of the year. 

U.S. Indexes and Yields

The S&P 500 index increased 0.6% to 5,217.04, and the Nasdaq Composite fell 0.01% to 16,315.56. 

The yield on 2-year Treasury notes decreased to 4.58%, 10-year Treasury notes inched up to 4.22%, and 30-year Treasury bonds edged down to 4.39%.

WTI crude oil decreased $0.22 to $81.40 a barrel, and natural gas prices decreased 5 cents to $1.72 a thermal unit.

Gold decreased by $12.88 to $2,190.88 an ounce, and silver rose 11 cents to $24.53. 

The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 104.44.

U.S. Stock Movers

GameStop Corp. declined 14.5% to $13.26 after the specialty retailer said fiscal fourth quarter sales declined to $1.8 billion compared to $2.2 billion a year ago. 

The company is battling the industry's shift away from physical games to online games and streaming services with subscription models. 

Net income in the quarter ending on February 3 rose to $63.1 million from $48.2 million, and diluted earnings per share advanced to 21 cents from 16 cents a year ago. 

Merck & Company increased 4% to $130.93 after the U.S. Food and Drug Administration approved the company's drug for the treatment of a lung disease. 

Robinhood Markets advanced 2.9% to $19.85 after the company launched a new credit card for its customer base and offered personal finance services. 

Lands' End soared 12.4% to $10.46 after the apparel retailer reported a wider loss, but quarterly sales were ahead of market expectations. 

Trump Media and Technology Group gained 11.8% to $64.83 and extended gains for the second day after the parent company of social media platform Truth Social made its initial public offering. 

Shockwave Medical soared 3.3% to $326.67 after the medical device company extended gains for the second day in a row on a report that the company was in talks to be acquired by Johnson & Johnson.  

European Markets Inch Higher In Record Territory 

European markets advanced in record territory, and investors debated the outlook for interest rates in the holiday-shortened week. 

Benchmark indexes in Paris and Frankfurt inched higher into record territory and extended this year's gain to more than 9%, while the index in London struggled to retain the previous session's gain. 

Spain's Inflation Accelerated In March

Spain's inflation accelerated in March to 3.2% from a six-month low of 2.8% in January, according to the latest data released by the statistical agency, INE, on Wednesday. 

Faster inflation in fuel and electricity prices outweighed slower inflation in food and non-alcoholic beverages. 

The core rate of inflation, which excludes volatile food and energy prices, slowed to 3.3% from 3.5%. 

The European Union's harmonized annual inflation rate accelerated to 3.2% from 2.9%. 

France and Italy are scheduled to release their inflation updates on Friday, and investors will have their first chance to react on Tuesday after the Easter holiday. 

Sweden Holds Rates and Lowers Inflation Outlook

Riksbank held its interest rate at 4.0% and signaled a possible rate cut in May or June if forward-looking data supported the move. 

Policymakers also lowered their estimate of inflation by the end of the year to 3.8% from the previous estimate of 4.1% in November. 

Moreover, the central bank also revised its 2024 economic growth projection to 0.3% from the previous estimate of a contraction of 0.2% but held its 2025 outlook at 1.9%. 

Europe Indexes and Yields

The DAX index increased by 0.5% to 18,480.07, the CAC-40 index rose by 0.2% to 8,200.09, and the FTSE 100 index inched lower by 0.3% to 7,926.51.

The yield on 10-year German bonds edged down to 2.33%; French bonds inched lower to 2.81%; the UK gilts edged higher to 4.01%; and Italian bonds inched higher to 3.67%.

The euro edged higher to $1.082, the British pound inched higher to $1.262, and the U.S. dollar held steady at 90.57 Swiss cents.

Brent crude decreased $0.22 to $86.04. a barrel, and the Dutch TTF natural gas rose by €0.02 to €27.12 per MWh.

Europe Stock Movers

H&M jumped 13.5% to SEK 172.78 after the Swedish retailer reported better-than-expected quarterly results. 

Revenue in the quarter ending in February declined 2% to SEK 53,7 billion from SEK 54.8 billion, net income rose to SEK 1.2 billion from SEK 540 million, and earnings per share advanced to 75 cents from 33 cents a year ago. 

Assa Abloy AB decreased 1% to SEK 310.20, and the Swedish manufacturing conglomerate announced the purchase of Wi-Fi service providers for hospitality and commercial real estate groups.

Nomadix and Global Reach, managed by the same group with offices in Los Angeles and London, will become part of the company's hospitality group. 

The two companies collectively generate $30 million in annual revenue, and the purchase of the company is expected to be immediately accretive to Assa Abloy's earnings.   

CRH increased 1% to 6,952.0 pence, and the building materials company confirmed it has completed the second divestment phase of its lime operations in the U.K. and Europe. 

DS Smith Group soared 7.5% to 391 pence after the paper and packaging company confirmed preliminary deal talks with International Paper that could lead to an offer of £5.7 billion or $7.2 billion. 

BP plc decreased 1.5% to 492.10 pence and Shell plc dropped 1.4% to 2,611.50 pence after crude oil prices declined for the second day in a row following the U.S. government agency weekly report showing rising crude inventories. 

Japanese Yen Weakness and China Property Market Worries Dominate Asian Trading 

Stock markets in Asia diverged as investors prepared for the Easter holiday on Friday and Monday. 

In thin trading, market indexes in Japan advanced, in China declined, and in India rebounded from losses in the previous sessions. 

In a holiday-shortened week, investors avoided taking new positions and awaited the release of retail sales, industrial production, and unemployment data in Japan on Thursday. 

Profits at Chinese industrial companies rose in the first two months of 2024, but investor confidence was weak after BYD issued a cautious outlook and Alibaba canceled its logistics unit's listing in Hong Kong. 

India's current account deficit narrowed sharply in the December quarter after foreign remittances and service sector surpluses expanded. 

Nikkei Soars to a New Record High After Yen Trades at a 34-year Low

Stocks in Tokyo rebounded and trimmed losses in recent sessions on the continued weakness in the yen. 

The yen dropped to a 34-year low of 151.96 against the U.S. dollar as traders ramped up bets that the Bank of Japan will hold rates steady and the U.S. interest rates will stay higher for longer, increasing the difference between the two interest rates.

The latest decline in the yen prompted Japan's Finance Minister, Shunichi Suzuki, to warn financial markets that the government may take steps to support the currency if the yen fails to reflect economic fundamentals. 

Suzuki's comments follow similar comments from Vice Finance Minister Masto Kanda a day earlier. 

Stocks in Tokyo advanced on the hopes that a weaker yen would drive an increase in earnings for exporting companies. 

The Nikkei 225 Stock Average rose 1.3% to 40,919.93, and the Topix index advanced 1% to 2,809.05. 

Tech stocks led the gainers, and Tokyo Electron, SoftBank, Advantest, and Screen Holdings rose between 0.2% and 0.4%. 

Financials traded mixed, and Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho Financial Group gained between 1% and 2%. 

General trading groups, also known as Sogo Shosha,  Marubeni, Mitsui & Company, Itochu, Mitsubishi Corp., and Sumitomo Corp., advanced between 0.5% and 1.5%. 

BYD Outlook Weighs on China Stocks; Alibaba Cancels Logistic Unit IPO

Stocks in Shanghai and Hong Kong traded down after market anxieties were compounded by weak corporate earnings. 

The electric vehicle maker reported strong financial results, but the December quarter earnings growth slowed to 18.7%, the slowest increase in the last eight quarters. 

Investors overlooked the electric vehicle makers' record annual 2023 earnings and focused on the cautious sales and earnings outlook in the current year and weak consumer demand. 

BYD fell 6.4% to HK$202.20, and Li Auto declined 3.2% to HK$117.80. 

Moreover, market jitters amplified after Alibaba Group was forced to shelve the listing of its logistics unit Cainiao in Hong Kong after weak investor demand. 

Alibaba announced its plans to acquire stakes held by minority shareholders in its logistics unit, and the company stressed its strategic importance. 

Alibaba Group, with 8.3%, the second largest constituent in Hong Kong's benchmark index, declined 2.2% to $68.70. 

In light trading, benchmark indexes drifted lower ahead of the Easter holiday break on Friday and Monday. 

The decline in market indexes was limited after profits at Chinese industrial companies rose 10.2% in the first two months of the year, the statistics bureau reported Wednesday. 

The rise in industrial profit followed the increase in industrial production in the period, supporting the case for a stronger-than-estimated economic recovery. 

The CSI 300 index fell 0.5% to 3,527.41, and the Hang Seng index dropped 0.6% to 16,512.92. 

India Indexes Advanced in Cautious Trading

Stocks in Mumbai inched higher, and bond yields held steady amid rising geopolitical tensions. 

The Sensex and the Nifty indexes advanced in early trading as investors set aside the worry of elevated inflation and global interest rate uncertainties. 

The Sensex index increased 0.3% to 72,670.55, and the Nifty index edged up 0.3% to 22,070.80. 

On the Mumbai stock exchange, 49 stocks traded at their 52-week highs and 45 stocks traded at their 52-week lows.

India's Current Account Deficit Narrowed After Service Surplus Expanded

India's current account deficit fell sharply in the December quarter after service exports soared, according to the latest update released by the Reserve Bank of India on Tuesday. 

The current account deficit in the December quarter narrowed to $10.5 billion from $16.8 billion in the corresponding quarter a year ago. 

The service export surplus expanded to $45.0 billion from $38.7 billion, driven by the expansion of software, travel, and business services. 

However, the international goods deficit was nearly unchanged at $71.6 billion compared to $71.3 billion a year ago, due to persistently elevated energy and gold imports. 

The secondary income surplus, which reflects remittances by Indians employed abroad, expanded to $29.3 billion from $28.5 billion. 

The primary income gap, which reflects investment income transfers, rose to $13.2 billion from $12.7 billion. 

In the financial account, foreign direct investment recorded a net inflow that rose to $4.2 billion from $2.0 billion, and foreign portfolio investment increased to a net inflow of $12.0 billion from $4.6 billion a year ago. 

Overall, India's current account deficit declined to 1.2% of gross domestic product compared to 2.0% in the corresponding quarter a year ago. 

U.S. Movers: GameStop, Lands End, Merck, Robinhood Markets, Shockwave Medical, Trump Media

Benchmark indexes on Wall Street rebounded after falling in the previous three sessions. 

The S&P 500 index increased 0.6% to 5,232.96, and the Nasdaq Composite rose 0.3% to 16,365.45. 

The yield on 2-year Treasury notes decreased to 4.58%, 10-year Treasury notes inched up to 4.22%, and 30-year Treasury bonds edged down to 4.39%.

GameStop Corp. declined 14.5% to $13.26 after the specialty retailer said fiscal fourth quarter sales declined to $1.8 billion compared to $2.2 billion a year ago. 

The company is battling the industry's shift away from physical games to online games and streaming services with subscription models. 

Net income in the quarter ending on February 3 rose to $63.1 million from $48.2 million, and diluted earnings per share advanced to 21 cents from 16 cents a year ago. 

Merck & Company increased 4% to $130.93 after the U.S. Food and Drug Administration approved the company's drug for the treatment of a lung disease. 

Robinhood Markets advanced 2.9% to $19.85 after the company launched a new credit card for its customer base and offered personal finance services. 

Lands' End soared 12.4% to $10.46 after the apparel retailer reported a wider loss, but quarterly sales were ahead of market expectations. 

Trump Media and Technology Group gained 11.8% to $64.83 and extended gains for the second day after the parent company of social media platform Truth Social made its initial public offering. 

Shockwave Medical soared 3.3% to $326.67 after the medical device company extended gains for the second day in a row on a report that the company was in talks to be acquired by Johnson & Johnson.  

S&P 500 and Nasdaq Rebound After Three Losing Sessions

Benchmark indexes advanced in Wednesday's trading, and Treasury yields held steady as investors debated the future rate-path outlook. 

Investors are also looking ahead to the release of the price consumption expenditure price index on Friday, an alternative measure of inflation that takes into account customers' behavior to substitute cheaper products. 

The PCE price index generally understates the inflation experienced by consumers by a significant margin. 

The S&P 500 index and the Nasdaq Composite are set to extend monthly and quarterly gains after an artificial intelligence-powered market rally lifted two popular indexes. 

The S&P 500 index has gained 9.1%, and the Nasdaq Composite index has advanced 8.7% as of Tuesday's close.

In March, as of Tuesday's close, the S&P 500 increased 2.1% and the Nasdaq Composite advanced 1.4%. 

Investors have bid up stocks in the hopes that the Federal Reserve is more likely to lower interest rates as early as June after the Federal Reserve maintained its projection to cut interest rates by three times in the year. 

However, investor hopes may be dashed if core inflation, which excludes volatile food and energy prices, stays above 2%. 

Moreover, rising tensions in the Middle East are keeping crude oil prices elevated, and that is keeping goods and services inflation at an elevated pace. 

In addition, wages are still rising at a rate of more than 4% annually, and the pace of wage inflation is inconsistent with the Fed's target rate of 2%. 

Investors' rate-cut hopes may be dented if core inflation stays above 3% and wage inflation stays above 4%, forcing the central bank to keep interest rates higher for longer until the end of the year. 

U.S. Indexes and Yields

The S&P 500 index increased 0.6% to 5,232.96, and the Nasdaq Composite rose 0.3% to 16,365.45. 

The yield on 2-year Treasury notes decreased to 4.58%, 10-year Treasury notes inched up to 4.22%, and 30-year Treasury bonds edged down to 4.39%.

WTI crude oil decreased $0.29 to $81.33 a barrel, and natural gas prices decreased 6 cents to $1.72 a thermal unit.

Gold decreased by $13.25 to $2,190.24 an ounce, and silver rose 21 cents to $24.63. 

The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 104.44.

U.S. Stock Movers

GameStop Corp. declined 14.5% to $13.26 after the specialty retailer said fiscal fourth quarter sales declined to $1.8 billion compared to $2.2 billion a year ago. 

The company is battling the industry's shift away from physical games to online games and streaming services with subscription models. 

Net income in the quarter ending on February 3 rose to $63.1 million from $48.2 million, and diluted earnings per share advanced to 21 cents from 16 cents a year ago. 

Merck & Company increased 4% to $130.93 after the U.S. Food and Drug Administration approved the company's drug for the treatment of a lung disease. 

Robinhood Markets advanced 2.9% to $19.85 after the company launched a new credit card for its customer base and offered personal finance services. 

Lands' End soared 12.4% to $10.46 after the apparel retailer reported a wider loss, but quarterly sales were ahead of market expectations. 

Trump Media and Technology Group gained 11.8% to $64.83 and extended gains for the second day after the parent company of social media platform Truth Social made its initial public offering. 

Shockwave Medical soared 3.3% to $326.67 after the medical device company extended gains for the second day in a row on a report that the company was in talks to be acquired by Johnson & Johnson.  

Europe Movers: Assa Abloy, CRH, DS Smith Group, H&M

European markets inched further into record territory, and bond yields edged slightly lower, but the pound, the euro, and the Swiss franc stayed steady. 

The DAX index increased by 0.3% to 18,446.47, the CAC-40 index rose by 0.2% to 8,198.20, and the FTSE 100 index inched lower by 0.3% to 7,908.32.

The yield on 10-year German bonds edged down to 2.33%; French bonds inched lower to 2.81%; the UK gilts edged higher to 4.01%; and Italian bonds inched higher to 3.67%.

H&M jumped 13.5% to SEK 172.78 after the Swedish retailer reported better-than-expected quarterly results. 

Revenue in the quarter ending in February declined 2% to SEK 53,7 billion from SEK 54.8 billion, net income rose to SEK 1.2 billion from SEK 540 million, and earnings per share advanced to 75 cents from 33 cents a year ago. 

Assa Abloy AB decreased 1% to SEK 310.20, and the company announced the purchase of Wi-Fi service providers for hospitality and commercial real estate groups.

Nomdix and Global Reach, managed by the same management group with offices in Los Angeles and London, will become part of the company's hospitality group. 

The two companies collectively generate $30 million. 

The purchase of the company is expected to be immediately accretive.  

CRH increased 1% to 6,952.0 pence, and the building materials company confirmed it has completed the second divestment phase of its lime operations in the U.K. and Europe. 

DS Smith Group soared 7.5% to 391 pence after the paper and packaging company confirmed preliminary deal talks with International Paper that could lead to an offer of £5.7 billion or $7.2 billion. 

BP plc decreased 1.5% to 492.10 pence and Shell plc dropped 1.4% to 2,611.50 pence after crude oil prices declined for the second day in a row following the U.S. government agency weekly report showing rising crude inventories. 

Riksbank Holds Rates Steady, Spain's Inflation Accelerates

European markets advanced in record territory, and investors debated the outlook for interest rates in the holiday-shortened week. 

Benchmark indexes in Paris and Frankfurt inched higher into record territory and extended this year's gain to more than 9%, while the index in London struggled to retain the previous session's gain. 

Spain's Inflation Accelerated In March

Spain's inflation accelerated in March to 3.2% from a six-month low of 2.8% in January, according to the latest data released by the statistical agency, INE, on Wednesday. 

Faster inflation in fuel and electricity prices outweighed slower inflation in food and non-alcoholic beverages. 

The core rate of inflation, which excludes volatile food and energy prices, slowed to 3.3% from 3.5%. 

The European Union's harmonized annual inflation rate accelerated to 3.2% from 2.9%. 

France and Italy are scheduled to release their inflation updates on Friday, and investors will have their first chance to react on Tuesday after the Easter holiday. 

Sweden Holds Rates and Lowers Inflation Outlook

Riksbank held its interest rate at 4.0% and signaled a possible rate cut in May or June if forward-looking data supported the move. 

Policymakers also lowered their estimate of inflation by the end of the year to 3.8% from the previous estimate of 4.1% in November. 

Moreover, the central bank also revised its 2024 economic growth projection to 0.3% from the previous estimate of a contraction of 0.2% but held its 2025 outlook at 1.9%. 

Europe Indexes and Yields

The DAX index increased by 0.3% to 18,446.47, the CAC-40 index rose by 0.2% to 8,198.20, and the FTSE 100 index inched lower by 0.3% to 7,908.32.

The yield on 10-year German bonds edged down to 2.33%; French bonds inched lower to 2.81%; the UK gilts edged higher to 4.01%; and Italian bonds inched higher to 3.67%.

The euro edged higher to $1.082, the British pound inched higher to $1.262, and the U.S. dollar held steady at 90.57 Swiss cents.

Brent crude decreased $0.50 to $86.74. a barrel, and the Dutch TTF natural gas rose by €0.27 to €27.24 per MWh.

Europe Stock Movers

H&M jumped 13.5% to SEK 172.78 after the Swedish retailer reported better-than-expected quarterly results. 

Revenue in the quarter ending in February declined 2% to SEK 53,7 billion from SEK 54.8 billion, net income rose to SEK 1.2 billion from SEK 540 million, and earnings per share advanced to 75 cents from 33 cents a year ago. 

Assa Abloy AB decreased 1% to SEK 310.20, and the company announced the purchase of Wi-Fi service providers for hospitality and commercial real estate groups.

Nomadix and Global Reach, managed by the same management group with offices in Los Angeles and London, will become part of the company's hospitality group. 

The two companies collectively generate $30 million in annual revenue and the purchase of the company is expected to be immediately accretive to Assa Abloy's earnings.   

CRH increased 1% to 6,952.0 pence, and the building materials company confirmed it has completed the second divestment phase of its lime operations in the U.K. and Europe. 

DS Smith Group soared 7.5% to 391 pence after the paper and packaging company confirmed preliminary deal talks with International Paper that could lead to an offer of £5.7 billion or $7.2 billion. 

BP plc decreased 1.5% to 492.10 pence and Shell plc dropped 1.4% to 2,611.50 pence after crude oil prices declined for the second day in a row following the U.S. government agency weekly report showing rising crude inventories. 

Alibaba Cancels Logistic Unit IPO, Nikkei at Record Level After Yen Drops to a 34-year Low

Stock markets in Asia diverged as investors prepared for the Easter holiday on Friday and Monday. 

In thin trading, market indexes in Japan advanced, in China declined, and in India rebounded from losses in the previous sessions. 

In a holiday-shortened week, investors avoided taking new positions and awaited the release of retail sales, industrial production, and unemployment data in Japan on Thursday. 

Profits at Chinese industrial companies rose in the first two months of 2024, but investor confidence was weak after BYD issued a cautious outlook and Alibaba canceled its logistics unit's listing in Hong Kong. 

India's current account deficit narrowed sharply in the December quarter after foreign remittances and service sector surpluses expanded. 

Nikkei Soars to a New Record High After Yen Trades at a 34-year Low

Stocks in Tokyo rebounded and trimmed losses in recent sessions on the continued weakness in the yen. 

The yen dropped to a 34-year low of 151.96 against the U.S. dollar as traders ramped up bets that the Bank of Japan will hold rates steady and the U.S. interest rates will stay higher for longer, increasing the difference between the two interest rates.

The latest decline in the yen prompted Japan's Finance Minister, Shunichi Suzuki, to warn financial markets that the government may take steps to support the currency if the yen fails to reflect economic fundamentals. 

Suzuki's comments follow similar comments from Vice Finance Minister Masto Kanda a day earlier. 

Stocks in Tokyo advanced on the hopes that a weaker yen would drive an increase in earnings for exporting companies. 

The Nikkei 225 Stock Average rose 1.3% to 40,919.93, and the Topix index advanced 1% to 2,809.05. 

Tech stocks led the gainers, and Tokyo Electron, SoftBank, Advantest, and Screen Holdings rose between 0.2% and 0.4%. 

Financials traded mixed, and Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho Financial Group gained between 1% and 2%. 

General trading groups, also known as Sogo Shosha,  Marubeni, Mitsui & Company, Itochu, Mitsubishi Corp., and Sumitomo Corp., advanced between 0.5% and 1.5%. 

BYD Outlook Weighs on China Stocks; Alibaba Cancels Logistic Unit IPO

Stocks in Shanghai and Hong Kong traded down after market anxieties were compounded by weak corporate earnings. 

BYD, the electric vehicle maker, reported strong financial results, but the December quarter earnings growth slowed to 18.7%, the slowest increase in the last eight quarters. 

Investors overlooked the electric vehicle makers' record annual 2023 earnings and focused on the cautious sales and earnings outlook in the current year and weak consumer demand. 

BYD fell 6.4% to HK$202.20, and Li Auto declined 3.2% to HK$117.80. 

Moreover, market jitters amplified after Alibaba Group was forced to shelve the listing of its logistics unit Cainiao in Hong Kong after weak investor demand. 

Alibaba announced its plans to acquire stakes held by minority shareholders in its logistics unit, and the company stressed its strategic importance. 

Alibaba Group, with 8.3%, the second largest constituent in Hong Kong's benchmark index, declined 2.2% to $68.70. 

In light trading, benchmark indexes drifted lower ahead of the Easter holiday break on Friday and Monday. 

The decline in market indexes was limited after profits at Chinese industrial companies rose 10.2% in the first two months of the year, the statistics bureau reported Wednesday. 

The rise in industrial profit followed the increase in industrial production in the period, supporting the case for a stronger-than-estimated economic recovery. 

The CSI 300 index fell 0.5% to 3,527.41, and the Hang Seng index dropped 0.6% to 16,512.92. 

India Indexes Advanced in Cautious Trading

Stocks in Mumbai inched higher, and bond yields held steady amid rising geopolitical tensions. 

The Sensex and the Nifty indexes advanced in early trading as investors set aside the worry of elevated inflation and global interest rate uncertainties. 

The Sensex index increased 0.3% to 72,670.55, and the Nifty index edged up 0.3% to 22,070.80. 

On the Mumbai stock exchange, 49 stocks traded at their 52-week highs and 45 stocks traded at their 52-week lows.

India's Current Account Deficit Narrowed After Service Surplus Expanded

India's current account deficit fell sharply in the December quarter after service exports soared, according to the latest update released by the Reserve Bank of India on Tuesday. 

The current account deficit in the December quarter narrowed to $10.5 billion from $16.8 billion in the corresponding quarter a year ago. 

The service export surplus expanded to $45.0 billion from $38.7 billion, driven by the expansion of software, travel, and business services. 

However, the international goods deficit was nearly unchanged at $71.6 billion compared to $71.3 billion a year ago, due to persistently elevated energy and gold imports. 

The secondary income surplus, which reflects remittances by Indians employed abroad, expanded to $29.3 billion from $28.5 billion. 

The primary income gap, which reflects investment income transfers, rose to $13.2 billion from $12.7 billion. 

In the financial account, foreign direct investment recorded a net inflow that rose to $4.2 billion from $2.0 billion, and foreign portfolio investment increased to a net inflow of $12.0 billion from $4.6 billion a year ago. 

Overall, India's current account deficit declined to 1.2% of gross domestic product compared to 2.0% in the corresponding quarter a year ago. 

India Movers: Angel One, Aster DM, Adani Ports, L&T, Piramal Enterprises, Sanofi India, Spicejet

Stocks in Mumbai advanced, bond yields held steady, and the rupee hovered near a record low in a holiday-shortened week. 

The Sensex index increased 0.3% to 72,670.55, and the Nifty index edged up 0.3% to 22,070.80. 

On the Mumbai stock exchange, 49 stocks traded at their 52-week highs and 45 stocks traded at their 52-week lows.

Central Depository Services edged down 0.1% to ₹1,785.0, and Standard Chartered Bank is planning to sell its entire 7.2% stake, or 75 lakh shares, in the company for $151 million in a block trade. 

The stake-sale news was first reported by CNBC TV18. 

Aster DM Healthcare decreased 0.02% to ₹438.55, and the private equity firm Olympus Capital Asia plans to sell a 9.8% stake in the company for about ₹1,953 crore, according to a report by Reuters. 

Adani Ports and SEZ increased 2.6% to ₹1,315.0 after the company acquired a 95% stake in Gopalpur Port Ltd. located in Odisha for an enterprise value of ₹3,080 crore. 

Spicejet increased 3.9% to ₹61.06 after the company entered into a settlement agreement with 755 crore with Canada-based aircraft lessor Export Development Canada. 

The deal paves the way for the airline to assume control of 13 of the 15 Bombardier Q400 aircraft financed by EDC. 

Larsen & Toubro increased 0.3% to ₹3,683.0 after the company's board approved the plan to raise ₹7,500 crore. 

Sanofi India added 3.6% to ₹7,989.85 and Cipla gained 0.8% to ₹1,484.0, and the two companies struck an exclusive distribution partnership. 

Under the agreement, Cipla will distribute Sanofi's Central Nervous Medications portfolio of drugs, including Frisium, an anti-epileptic drug. 

Piramal Enterprises gained 0.5% to ₹862.80, and the company invested 2,000 crore in Piramal Capital and Housing Finance through its participation in the rights issue. 

Angel One declined 1.8% to ₹2,672.35 after the company set a floor price of ₹2,555.01 per share for its institutional offering. 

Durable Goods Orders and Shipments Advanced In February

Durable goods orders rose 1.4% from the previous month and increased 1.8% from a year ago in February, from the downwardly revised fall of 6.9% in the previous month, the U.S. Census Bureau reported Tuesday. 

Excluding transportation, new orders increased by 0.5%, and excluding defense, new orders increased by 2.2%. 

Transportation equipment, also up following two consecutive monthly decreases, increased by 3.3%.

New orders for non-defense capital goods after excluding aircraft, generally viewed as a barometer for business spending, increased 0.7% after falling 0.4% in January.

Non-defense capital goods, excluding aircraft, increased 1.3%, and shipments rose 3.4% from a year ago. 

Shipments of manufactured durable goods in February, up following two consecutive monthly decreases, increased 1.2% from the previous month of 3.4% from a year ago.