- Li Chen
- 09 Jul, 2024
- Hong Kong
China stocks were under pressure ahead of the release of several key economic indicators, including inflation updates, this week.
The Hang Seng index and CSI 300 index struggled to get their footing amid market jitters before the release of closely watched inflation updates released by the statistics bureau on Wednesday.
China's consumer price inflation is estimated to increase by at least 0.3%, and the producer price index decreased by 0.7% in June, according to a survey conducted by Ticker.com.
Producer prices are likely to decline for the 21st month in a row as manufacturers struggle with overcapacity in several key industries and weak domestic demand.
Later in the week, the National Bureau of Statistics is scheduled to release international trade, money supply, and foreign direct investment data.
The Chinese economy is struggling amid weak consumer sentiment, sustained capital flight, and ongoing weakness in the property and job markets.
Meanwhile, Chinese policymakers are scheduled to meet on Monday for the much-delayed third plenum, which could lead to the announcement of new economic reforms and market-supportive measures.
Investors have lowered their expectations for deep and meaningful reforms that could stop the capital outflow and revive consumer sentiment.
China Stock Movers
The Hang Seng Index declined 0.3% to 17,478.72, and the CSI 300 index rose 0.1% to 3,406.16.
Tingyi Holding decreased 3% to HK $9.83 after the maker of instant noodles raised prices on 12 products.
Investors are worried that the price hike may backfire because of weak consumer demand amid high job market uncertainty.
Anta Sports declined 2.7% to HK $69.55 after cautious comments from Citigroup raised the prospects of a lower stock price.
Three new companies were listed on stock exchanges in China.
Fangzhou Inc. increased to HK $4.82, and the online disease management platform priced its initial public offering at HK $4.50 per share.
Baiwang Co. Ltd. increased a fraction to HK$36.05, and the enterprise software solution provider priced its initial public offering at HK$36 per share and raised HK$228.87 million.
China Shenzhen International Warehouse Logistics Closed-end Infrastructure Fund, a real estate investment trust, priced its public offering and raised 1.2 billion yuan, or $160 million.
China Shenzhen International traded at 2.45 yuan on the first day of its trading in Shenzhen.
- Arun Goswami
- 09 Jul, 2024
- Mumbai
Benchmark indexes hovered near record highs amid sustained buying from domestic investors and a supportive economic backdrop ahead of the start of the earnings season.
The Sensex index increased by 0.3% to 80,186.89, and the Nifty index advanced by 0.2% to 24,374.30.
On the Mumbai stock exchange, 99 stocks traded at their 52-week highs, and 7 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds inched lower to 6.98%, and the Indian rupee edged higher to ₹83.51 against the U.S. dollar.
Pitti Engineering increased 3.5% to ₹1,196.95, and the electrical machinery component maker said it plans to raise as much as 360 crore through a secondary offering.
The offering is expected to be priced at $1,054.25 per share.
Mahanagar Gas increased 1.2% to ₹1,689.0, and the natural gas distributor announced a price increase for compressed natural gas and piped gas delivery from July 10.
The price of compressed natural gas will increase by ₹1.50 to ₹75 per kilo, and the price of piped natural gas will increase by ₹1 to ₹48 per standard cubic meter.
Container Corporation of India decreased 0.9% to ₹1,033.30, and the transportation company said the number of containers handled increased by 6% in the June quarter from the year earlier.
The total number of containers handled increased to 11.59 lakh twenty-foot equivalent units from 10.93 TEU.
HDFC Life Insurance gained 0.5% to ₹624.05 after the total industry premium increased 15% from a year earlier to ₹42,434 crore in June, according to data released by the Life Insurance Council on Monday.
The insurance premiums for HDFC Life Insurance increased by 8%, ICICI Prudential Life Insurance jumped by 14%, SBI Life advanced by 22%, and LIC increased by 14%.
Bajaj Finserv increased 0.2% to ₹1,571.70 after the company's two insurance subsidiaries reported a sharp increase in insurance premium revenue in June.
The gross direct premium underwritten by Bajaj Allianz General Insurance was ₹1,234 crore and by Bajaj Allianz Life Insurance was ₹1,082 crore.
Nestle India decreased 0.05% to ₹2,602.05, and the company's shareholder approved the current rate of 4.5% royalty payment to its Swiss parent company.
- Alexander Garcia
- 08 Jul, 2024
- Miami
Inflation takes center stage this week, as the latest updates are likely to show waning price pressures across the economy.
The S&P 500 index and the Nasdaq Composite traded up after closing at record highs in Friday's trading and extending weekly gains for the fifth week in a row.
Benchmark indexes gained in Monday's trading, and the two widely popular indexes advanced following the gains in the previous sessions.
The S&P 500 index and the Nasdaq Composite traded up after closing at record highs in Friday's trading and extending weekly gains for the fifth week in a row.
The two benchmark indexes have barreled through 34 highs this year amid better-than-expected earnings, a supportive economic backdrop, and interest rate-cut expectations.
Bond traders are still estimating as many as two interest rate cuts of 25 basis points this year, starting as early as September.
Investors are looking forward to the release of consumer price index and producer price index data for June on Thursday and Friday, respectively.
Both inflation indexes are expected to rise by 0.1% from the previous month and show waning inflationary pressures, supporting the case for rate cuts.
Consumer price inflation may be slowing, but prices are still rising, and consumers are fed up with high prices, smaller sizes or portions, and deteriorating quality.
Moreover, rents and home prices in the top 20 urban areas are up between 60% and 130% from pre-pandemic 2019 levels, and food prices are at least up between 50% and 100% at most grocery stores.
Fed Chair Powell is scheduled to deliver his semiannual testimony on monetary policy before the U.S. Senate Banking Committee on Tuesday.
Earnings season kicks off this week with earnings from PepsiCo, and leading banks including JP Morgan, Citigroup, Wells Fargo, and Bank of New York Mellon are set to report.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.1% to 5,570.92, and the Nasdaq Composite rose 0.3% to 18,411.12.
The yield on 2-year Treasury notes edged lower to 4.63%, 10-year Treasury notes decreased to 4.28%, and 30-year Treasury bonds edged lower to 4.47%.
WTI crude oil decreased $1.15 to $82.22 a barrel, and natural gas prices edged up 2 cents to $2.35 a thermal unit.
Gold decreased by $33.52 to $2,354.55 an ounce, and silver fell 62 cents to $30.58.
The dollar index, which weighs the U.S. currency against a basket of foreign currencies, edged lower to 104.93.
U.S. Stock Movers
Boeing Company rose 2.2% to $190.13 after the aviation company agreed to plead guilty to criminal fraud charges and pay a $243.6 million fine.
In addition, the company agreed to have an independent compliance monitor for three years and invest at least $455 million in compliance and safety programs.
After several months of negotiations with lawmakers and government regulators, the aviation company agreed it violated its previous agreement reached in the 2021 fatal 747 Max crashes.
Paramount Global jumped 4.7% to $21.44 after the company agreed to merge with Skydance Media following contentious and protracted merger negotiations over several months.
France Faces Political Gridlock After Left Alliance Wins Big But Lacks Majority
European markets advanced despite France heading for months of political gridlock after neither party came close to winning a majority seat to form a government after the second phase of the snap election this Sunday.
The recently formed alliance of left-leaning parties, the New Popular Front, won the largest bloc of seats, winning 182 seats in France's 577-member parliament.
President Emmanuel Macron's coalition, Ensemble, the centrist alliance, won the second largest bloc with 163 seats, followed by the far-right National Rally Party with 143 seats.
Any governing party needs at least 289 seats to form the next government.
France is in uncharted territory as the country has always had a dominant party to form the government, avoiding the need for coalitions among leading parties with different views.
Two weeks ago, the European Commission said it intends to initiate an excessive deficit procedure against France after the nation failed to keep its deficit under 3% of its gross domestic product limit as required by the European Union.
Currently, seven of the twelve countries in the European Union that have breached the 3% limit, including France, Italy, Slovakia, Hungary, Poland, Malta, and Belgium, are likely to face closer scrutiny from the European Commission, which could lead to the European Central Bank suspending countries from its bond buying program.
German Exports and Trade Surplus Expanded In May
On the economic front, Germany's exports declined for the first time in three months in May, data from the Federal Statistical Office, Destatis, showed on Monday.
Exports declined 3.6% from the previous month to €131.6 billion, and imports fell 6.6% to €106.7 billion, resulting in a trade surplus of €24.9 billion.
The trade surplus in May jumped to €24.9 billion from €19 billion a year ago.
Exports to the member states of the European Union decreased by 2.5% to €72.3 billion, and imports from the region fell by 8.9% to €55.7 billion.
Exports to the U.S., the largest market for German goods, declined 2.9% to €13.8 billion, and to the People's Republic of China, they decreased 10.2% to €7.6 billion.
Imports from the People's Republic of China, the largest source of imports, rose 1.7% to €13.0 billion, followed by imports from the United States worth 7.9 billion, an increase of 4.6%.
Europe Indexes and Yields
The DAX index increased by 0.1% to 18,488.68; the CAC-40 index fell by 0.6% to 7,627.45; and the FTSE 100 index decreased by 0.1% to 8,193.49.
The yield on 10-year German bonds edged lower to 2.54%. French bonds inched lower to 3.15%; the UK gilts inched lower to 4.13%; and Italian bonds decreased to 3.92%.
The euro edged lower to $1.08; the British pound inched higher to $1.28; and the U.S. dollar weakened to 89.62 Swiss cents.
Brent crude increased $1.10 to $85.76 a barrel, and the Dutch TTF natural gas fell by €0.83 to €32.18 per MWh.
Europe Stock Movers
The French banks rallied after the far-right National Rally Party failed to win a majority in the second round of the snap election on Sunday.
Credit Agricole, Societe Generale, and BNP Paribas advanced between 1% and 2%.
Britvic Plc increased 4.6% to 1,265.0 pence after the Danish brewer agreed to acquire the British soft drink maker for £3.3 billion.
Carlsberg jumped 4.4% to DKK 873.20.
Marston's PLC jumped 15% to 35.29 pence after the pub and hotel group agreed to sell its 40% stake in the brewing joint venture with Carlsberg.
HgCapital Trust increased by 0.1% to 485.62 pence after the private equity company sold its remaining stake in the business software company TeamSystem.
Delivery Hero decreased 5.2% to €19.93 after the German food delivery company said it may face a fine of more than €400 million from the European Union for violating antitrust rules.
Japan's Current Account Surplus Widened and Real Wages Continue to Decline In May
Benchmark indexes in Tokyo turned lower for the second day in a row after real wages declined in May for the 26th month in a row.
The Nikkei declined 0.3% and the broader Topix dropped more than 0.5% amid interest rate uncertainty and weak consumer sentiment.
Japan's average nominal wages for full-time workers increased 2.1% to 378,803 yen, and part-time workers rose 3.2% to 108,511 yen.
Excluding bonuses and incentive pays, average wages increased 2.5% to 263,539 yen, and overtime and other allowances advanced 2.3% to 19441 yen.
The 5.1% rise in negotiated pay by the workers union at the largest companies during the annual wage negotiation this spring supported the wage gains, but smaller and medium-sized companies raised wages between 2% and 3%, closer to the long-term average over the last decade.
Cash earnings for an average worker, including base and overtime, increased 1.9% to 297,151 yen or $1,850.
Despite the nominal wage gains, real wages, after adjusting for inflation, decreased 1.4% in May following the revised decline of 1.2% in April, according to the monthly report released on Monday by the Ministry of Health, Labor, and Welfare.
Meanwhile, Japan's current account surplus rose more than expected in May.
Current account surplus increased to 2,849.9 billion yen from 2,010.1 billion in the same month a year earlier, the Ministry of Finance reported Monday.
The current account generated surplus for the 16th month in a row as primary income surplus expanded to 4,211.1 billion yen from 3,726.7 billion in the previous year.
The goods trade deficit narrowed to 1,108.9 billion yen from 1,199.8 billion yen after exports rose 12.1% and imports advanced 9.3%.
Japan Stock Movers
The Nikkei 225 stock average decreased 0.3% to 40,780.70, and the Topix Index dropped 0.6% to 2,867.61.
Tech stocks traded volatile, but artificial intelligence-linked stocks struggled after advancing in the morning session.
Tokyo Electron, Screen Holdings, Advantest, and SoftBank edged down a fraction.
Banks were also among the leading decliners in Monday's trading.
Sumitomo Mitsui, Mizuho Financial, and Mitsubishi UFJ declined between 0.3% and 1.2%.
Export-linked companies declined for the second week in a row on the looming market intervention to support the yen.
Kawasaki Kisen Kaisha, Omron, Canon, Hitachi Zosen declined more than 3%.
Retail stocks declined after advancing for two weeks in a row.
J. Front Retail, Seven & I, Isetan Mitsukoshi, Takashimaya, and Fast Retailing traded in a tight range between a decline of 0.3% and a rise of 1.2%.
China Stocks Face Renewed Downward Pressure
Stocks in Hong Kong and Shanghai traded down on Monday after a week of choppy trading.
The Hang Seng index dropped nearly 2%, and the CSI 300 index declined close to 1% due to persistent economic growth worries.
The market rally powered by the state-controlled bank intervention lost steam as investors shifted their focus to the upcoming earnings season and a gathering of policymakers.
Investors are hoping that policymakers may announce significant reforms at the end of the third four-day plenary session of 300 communist party policymakers this week.
However, hopes are receding for deep and broad reforms because of the central government's lack of financial headroom and weak consumer sentiment.
The growth in exports has contributed to the economic growth in the current year, but the growth is expected to slow down in the second half as the economies in the U.S. and the European Union are expected to face further headwinds.
Moreover, rising trade tensions with the European Union are also weighing on market sentiment, and the commerce ministry said it plans to hold an anti-dumping hearing next week for the import of brandy from the region.
In Europe, the euro edged slightly lower after France's second round of parliamentary elections showed a hung parliament with three major blocks but no clear majority.
France's newly formed New Popular Front won 182 seats, President Emmanuel Macron's coalition ensemble clinched 168, and the far-right National Rally Party won 143 seats.
China Stock Movers
The Hang Seng index decreased 1.7% to 17,499.27, and the CSI 300 index dropped 0.7% to 3,408.55.
Shipping stocks remained under pressure for the second week in a row.
COSCO Shipping declined 7.2% to HK $12.46, and Orient Overseas dropped 6.4% to HK $120.20.
Ganfeng Lithium fell 4.7% to HK $15.30 after the mining company said the mainland financial regulator fined the company for insider trading.
Property developers continued to slide for the second week in a row amid worries of a lack of demand outside the top-tier cities.
Longfor Group decreased 3.5% to HK $10.74, China Vanke fell 4.5% to HK $4.49, and China Resources Land decreased 3% to HK $26.60.
- Barry Adams
- 08 Jul, 2024
- New York City
Benchmark indexes gained in Monday's trading, and the two widely popular indexes advanced following the gains in the previous sessions.
The S&P 500 index and the Nasdaq Composite traded up after closing at record highs in Friday's trading and extending weekly gains for the fifth week in a row.
The two benchmark indexes have barreled through multiple highs this year amid better-than-expected earnings, a supportive economic backdrop, and interest rate-cut expectations.
Bond traders are still estimating as many as two interest rate cuts of 25 basis points, starting as early as September.
Investors are looking forward to the release of consumer price index and producer price index data for June on Thursday and Friday, respectively.
Both inflation indexes are expected to rise by 0.1% from the previous month.
Moreover, Fed Chair Powell is scheduled to deliver his semiannual testimony on monetary policy before Congress.
Earnings season kicks off this week with earnings from PepsiCo, and leading banks including JP Morgan, Citigroup, Wells Fargo, and Bank of New York Mellon are set to report.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.2% to 5,577.31, and the Nasdaq Composite rose 0.1% to 18,368.94.
The yield on 2-year Treasury notes edged lower to 4.63%, 10-year Treasury notes decreased to 4.28%, and 30-year Treasury bonds edged lower to 4.47%.
WTI crude oil decreased $0.75 to $82.71 a barrel, and natural gas prices edged up 4 cents to $2.37 a thermal unit.
Gold decreased by $16.75 to $2,373.77 an ounce, and silver fell 19 cents to $31.01.
The dollar index, which weighs the U.S. currency against a basket of foreign currencies, edged lower to 104.83.
U.S. Stock Movers
Boeing Company rose 2.2% to $190.13 after the aviation company agreed to plead guilty to criminal fraud charges and pay a $243.6 million fine.
In addition, the company agreed to have an independent compliance monitor for three years and invest at least $455 million in compliance and safety programs.
After several months of negotiations with lawmakers and government regulators, the aviation company agreed it violated its previous agreement reached in the 2021 fatal 747 Max crashes.
Paramount Global jumped 4.7% to $21.44 after the company agreed to merge with Skydance Media following contentious and protracted merger negotiations over several months.
- Inga Muller
- 08 Jul, 2024
- Frankfurt
France is facing political gridlock after Sunday's snap election resulted in the first ever hung parliament, as neither party won a clear majority.
Immigration, taxes, and pensions are likely to dominate the political agenda over the next three years.
The DAX index increased by 0.4% to 18,540.62; the CAC-40 index rose by 0.2% to 7,692.54; and the FTSE 100 index rose by 0.2% to 8,219.48.
The yield on 10-year German bonds edged lower to 2.54%. French bonds inched lower to 3.15%; the UK gilts inched lower to 4.13%; and Italian bonds decreased to 3.92%.
The French banks rallied after the far-right National Rally Party failed to win a majority in the second round of the snap election on Sunday.
Credit Agricole, Societe Generale, and BNP Paribas advanced between 1% and 2%.
Britvic Plc increased 4.6% to 1,265.0 pence after the Danish brewer agreed to acquire the British soft drink maker for £3.3 billion.
Carlsberg jumped 4.4% to DKK 873.20.
Marston's PLC jumped 15% to 35.29 pence after the pub and hotel group agreed to sell its 40% stake in the brewing joint venture with Carlsberg.
HgCapital Trust increased by 0.1% to 485.62 pence after the private equity company sold its remaining stake in the business software company TeamSystem.
Delivery Hero decreased 5.2% to €19.93 after the German food delivery company said it may face a fine of more than €400 million from the European Union for violating antitrust rules.
- Bridgette Randall
- 08 Jul, 2024
- London
European markets advanced despite France heading for months of political gridlock after neither party came close to winning a majority seat to form a government after the second phase of the snap election this Sunday.
The recently formed alliance of left-leaning parties, the New Popular Front, won the largest bloc of seats, winning 182 seats in France's 577-member parliament.
President Emmanuel Macron's coalition, Ensemble, the centrist alliance, won the second largest bloc with 163 seats, followed by the far-right National Rally Party with 143 seats.
Any governing party needs at least 289 seats to form the next government.
France is in uncharted territory as the country has always had a dominant party to form the government, avoiding the need for coalitions among leading parties with different views.
German Exports and Trade Surplus Expanded In May
On the economic front, Germany's exports declined for the first time in three months in May, data from the Federal Statistical Office, Destatis, showed on Monday.
Exports declined 3.6% from the previous month to €131.6 billion, and imports fell 6.6% to €106.7 billion, resulting in a trade surplus of €24.9 billion.
The trade surplus in May jumped to €24.9 billion from €19 billion a year ago.
Exports to the member states of the European Union decreased by 2.5% to €72.3 billion, and imports from the region fell by 8.9% to €55.7 billion.
Exports to the U.S., the largest market for German goods, declined 2.9% to €13.8 billion, and to the People's Republic of China, they decreased 10.2% to €7.6 billion.
Imports from the People's Republic of China, the largest source of imports, rose 1.7% to €13.0 billion, followed by imports from the United States worth 7.9 billion, an increase of 4.6%.
Europe Indexes and Yields
The DAX index increased by 0.4% to 18,540.62; the CAC-40 index rose by 0.2% to 7,692.54; and the FTSE 100 index rose by 0.2% to 8,219.48.
The yield on 10-year German bonds edged lower to 2.54%. French bonds inched lower to 3.15%; the UK gilts inched lower to 4.13%; and Italian bonds decreased to 3.92%.
The euro edged lower to $1.08; the British pound inched higher to $1.28; and the U.S. dollar weakened to 89.62 Swiss cents.
Brent crude increased $1.07 to $85.90 a barrel, and the Dutch TTF natural gas fell by €0.41 to €33.43 per MWh.
Europe Stock Movers
The French banks rallied after the far-right National Rally Party failed to win a majority in the second round of the snap election on Sunday.
Credit Agricole, Societe Generale, and BNP Paribas advanced between 1% and 2%.
Britvic Plc increased 4.6% to 1,265.0 pence after the Danish brewer agreed to acquire the British soft drink maker for £3.3 billion.
Carlsberg jumped 4.4% to DKK 873.20.
Marston's PLC jumped 15% to 35.29 pence after the pub and hotel group agreed to sell its 40% stake in the brewing joint venture with Carlsberg.
HgCapital Trust increased by 0.1% to 485.62 pence after the private equity company sold its remaining stake in the business software company TeamSystem.
Delivery Hero decreased 5.2% to €19.93 after the German food delivery company said it may face a fine of more than €400 million from the European Union for violating antitrust rules.
- Akira Ito
- 08 Jul, 2024
- Tokyo
Benchmark indexes in Tokyo turned lower for the second day in a row after real wages declined in May for the 26th month in a row.
The Nikkei declined 0.3% and the broader Topix dropped more than 0.5% amid interest rate uncertainty and weak consumer sentiment.
Japan's average nominal wages for full-time workers increased 2.1% to 378,803 yen, and part-time workers rose 3.2% to 108,511 yen.
Excluding bonuses and incentive pays, average wages increased 2.5% to 263,539 yen, and overtime and other allowances advanced 2.3% to 19441 yen.
The 5.1% rise in negotiated pay by the workers union at the largest companies during the annual wage negotiation this spring supported the wage gains, but smaller and medium-sized companies raised wages between 2% and 3%, closer to the long-term average over the last decade.
Cash earnings for an average worker, including base and overtime, increased 1.9% to 297,151 yen or $1,850.
Despite the nominal wage gains, real wages, after adjusting for inflation, decreased 1.4% in May following the revised decline of 1.2% in April, according to the monthly report released on Monday by the Ministry of Health, Labor, and Welfare.
Meanwhile, Japan's current account surplus rose more than expected in May.
Current account surplus increased to 2,849.9 billion yen from 2,010.1 billion in the same month a year earlier, the Ministry of Finance reported Monday.
The current account generated surplus for the 16th month in a row as primary income surplus expanded to 4,211.1 billion yen from 3,726.7 billion in the previous year.
The goods trade deficit narrowed to 1,108.9 billion yen from 1,199.8 billion yen after exports rose 12.1% and imports advanced 9.3%.
Japan Stock Movers
The Nikkei 225 stock average decreased 0.3% to 40,780.70, and the Topix Index dropped 0.6% to 2,867.61.
Tech stocks traded volatile, but artificial intelligence-linked stocks struggled after advancing in the morning session.
Tokyo Electron, Screen Holdings, Advantest, and SoftBank edged down a fraction.
Banks were also among the leading decliners in Monday's trading.
Sumitomo Mitsui, Mizuho Financial, and Mitsubishi UFJ declined between 0.3% and 1.2%.
Export-linked companies declined for the second week in a row on the looming market intervention to support the yen.
Kawasaki Kisen Kaisha, Omron, Canon, Hitachi Zosen declined more than 3%.
Retail stocks declined after advancing for two weeks in a row.
J. Front Retail, Seven & I, Isetan Mitsukoshi, Takashimaya, and Fast Retailing traded in a tight range between a decline of 0.3% and a rise of 1.2%.
- Li Chen
- 08 Jul, 2024
- Hong Kong
Stocks in Hong Kong and Shanghai traded down on Monday after a week of choppy trading.
The Hang Seng index dropped nearly 2%, and the CSI 300 index declined close to 1% due to persistent economic growth worries.
The market rally powered by the state-controlled bank intervention lost steam as investors shifted their focus to the upcoming earnings season and a gathering of policymakers.
Investors are hoping that policymakers may announce significant reforms at the end of the third four-day plenary session of 300 communist party policymakers this week.
However, hopes are receding for deep and broad reforms because of the central government's lack of financial headroom and weak consumer sentiment.
The growth in exports has contributed to the economic growth in the current year, but the growth is expected to slow down in the second half as the economies in the U.S. and the European Union are expected to face further headwinds.
Moreover, rising trade tensions with the European Union are also weighing on market sentiment, and the commerce ministry said it plans to hold an anti-dumping hearing next week for the import of brandy from the region.
In Europe, the euro edged slightly lower after France's second round of parliamentary elections showed a hung parliament with three major blocks but no clear majority.
France's newly formed New Popular Front won 182 seats, President Emmanuel Macron's coalition ensemble clinched 168, and the far-right National Rally Party won 143 seats.
China Stock Movers
The Hang Seng index decreased 1.7% to 17,499.27, and the CSI 300 index dropped 0.7% to 3,408.55.
Shipping stocks remained under pressure for the second week in a row.
COSCO Shipping declined 7.2% to HK $12.46, and Orient Overseas dropped 6.4% to HK $120.20.
Ganfeng Lithium fell 4.7% to HK $15.30 after the mining company said the mainland financial regulator fined the company for insider trading.
Property developers continued to slide for the second week in a row amid worries of a lack of demand outside the top-tier cities.
Longfor Group decreased 3.5% to HK $10.74, China Vanke fell 4.5% to HK $4.49, and China Resources Land decreased 3% to HK $26.60.
- Arun Goswami
- 08 Jul, 2024
- Mumbai
India indexes lacked direction in early trading as investors looked forward to the government's plan to tackle a sky-high budget deficit.
The Union Budget is expected to show higher infrastructure spending and more regulatory reforms to attract foreign investment.
The Sensex index decreased by 0.1% to 79,922.68, and the Nifty index decreased by 0.1% to 24,300.90.
On the Mumbai stock exchange, 279 stocks traded at their 52-week highs, and 22 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds inched lower to 6.99%, and the Indian rupee edged higher to ₹83.44 against the U.S. dollar.
NLC India jumped 2.9% to ₹269.0, and the company won coal mining rights at a block in Machhakata, Odisha, with an estimated reserve of 1,377 million tons of coal.
IndusInd Bank gained 0.1% to ₹1,435.65, and the bank said deposits increased by 15% to ₹3.98 lakh crore and loan portfolios advanced 16% to ₹3.48 lakh crore.
Bank of Baroda declined 2.6% to ₹266.75, and the bank said its domestic deposit base increased 5.2% to ₹11.05 lakh crore and loan advances rose 8.5% to ₹8.81 lakh crore.
JM Financial declined 1.1% to ₹97.19, and the company's board approved the purchase of a 43% stake in JM Financial Credit Solutions for ₹1,282 crore.
Simultaneously, JM Financial Credit Solutions will acquire a 71.8% stake in JM Financial Asset Reconstruction Company from JM Financial for ₹856 crore.
Power Grid Corporation of India decreased 0.1% to ₹339.0, and the company's board is scheduled to meet on July 10 to increase the company's borrowing limit in the current financial year.
Titan Company declined 3.5% to ₹3,142.85, and the jewelry retailer said standalone revenue increased 9% from a year ago in the fiscal first quarter ending in March.
The company expanded its retail store network by 61 net new stores to 3,096.
Revenue in the jewelry segment increased 9%, watches and wearable rose 15%, and revenue at the CaratLane subsidiary surged 18%.
- Brian Turner
- 05 Jul, 2024
- Washington, D.C.
The U.S. economy expanded payrolls at a slower pace in June than the previous month, the latest update from the U.S. Bureau of Labor Statistics showed Friday.
Nonfarm payrolls increased by 206,000 in June, slower than 218,000 in May, and the jobless rate increased to 4.1% in the month, the highest since November 2021.
Despite the steady expansion of payrolls over the last three years, the labor force participation rate held at 62.6% and the employment-population rate remained at 60.1%.
Both measures have remained steady over the year, indicating a churn in the employment base but little improvement in expanding the overall employment base.
The number of people not in the labor force who currently want a job declined by 483,000 to 5.2 million in June.
These individuals were not counted as unemployed because they were not actively looking for a job during the 4 weeks preceding the survey.
The average hourly earnings for all employees increased 10 cents, or 0.3%, from the previous month of 3.9% a year ago to $35.0.
The April nonfarm payroll increase was revised down to 108,000 from 167,000, and the change for May was revised to 212,000 from 272,000.
- Barry Adams
- 05 Jul, 2024
- New York City
Stocks on Wall Street turned higher on the final day of the holiday-shortened week as investors returned from the Independence Day holiday.
Treasury yields turned sharply lower after nonfarm payrolls were sharply revised lower in April and May, indicating labor market conditions are softening, supporting the case for the Federal Reserve to lower rates as early as September.
Market sentiment has been on the defensive this week after the service sector unexpectedly contracted, weekly jobless claims rose for the ninth week in a row, and private payroll growth slowed in June.
For the week, the S&P 500 index headed higher by 0.7% and the Nasdaq Composite gained 1.8%, supported by another leg up in the tech stocks.
The two widely followed indexes are set to close higher for the fifth consecutive week in a row.
Nonfarm Payroll Growth Slowed in June
The U.S. economy expanded payrolls at a slower pace in June than the previous month, the latest update from the U.S. Bureau of Labor Statistics showed Friday.
Nonfarm payrolls increased by 206,000 in June, slower than 218,000 in May, and the jobless rate increased to 4.1% in the month, the highest since November 2021.
Despite the steady expansion of payrolls over the last three years, the labor force participation rate held at 62.6% and the employment-population rate remained at 60.1%.
Both measures have remained steady over the year, indicating a churn in the employment base but little improvement in expanding the overall employment base.
The number of people not in the labor force who currently want a job declined by 483,000 to 5.2 million in June.
These individuals were not counted as unemployed because they were not actively looking for a job during the 4 weeks preceding the survey.
The average hourly earnings for all employees increased 10 cents, or 0.3%, from the previous month of 3.9% a year ago to $35.0.
The April nonfarm payroll increase was revised down to 108,000 from 167,000, and the change for May was revised to 212,000 from 272,000.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.1% to 5,543.37, and the Nasdaq Composite rose 0.4% to 18,267.56.
The yield on 2-year Treasury notes edged lower to 4.64%, 10-year Treasury notes decreased to 4.31%, and 30-year Treasury bonds edged lower to 4.51%.
WTI crude oil decreased $0.15 to $83.86 a barrel, and natural gas prices edged up 3 cents to $2.38 a thermal unit.
Gold decreased by $24.67 to $2,381.24 an ounce, and silver rose 51 cents to $30.87.
The dollar index, which weighs the U.S. currency against a basket of foreign currencies, edged lower to 105.07.
U.S. Stock Movers
Nvidia decreased 0.8% to $127.28, and the artificial intelligence application processing chipmaker is set to close higher this week by 3% after falling more than 6% over the previous two weeks.
Chipotle Mexican Grill advanced 0.2% to $61.78 after the fast food restaurant chain operator split its stock 50-to-1 and traded ex-split on June 26.
The company's fundamentals remain strong, revenue in the first quarter of 2024 rose 14%, and same-store sales increased 7%.
- Inga Muller
- 05 Jul, 2024
- Frankfurt
European markets extended weekly gains, and the pound and the euro were in focus after the UK's Labour Party won in a landslide victory and the French parliament faced gridlock.
The DAX index increased by 0.9% to 18,608.56; the CAC-40 index rose by 0.4% to 7,723.98; and the FTSE 100 index rose by 0.001% to 8,240.89.
The yield on 10-year German bonds edged lower to 2.56%. French bonds inched lower to 3.20%; the UK gilts inched lower to 4.16%; and Italian bonds decreased to 3.95%.
Home builders in the UK traded higher after the Labour Party won in a landslide, and the new government plans to ramp up the building of affordable housing over the next five years by 1.5 million units.
Persimmons, Barratt Developments, Vistry Group, and Taylor Wimpey gained between 2% and 3%.
HSBC Holdings declined 1.9% to 678.30 pence, and a report suggested that UBS and BNP Paribas may be interested in the company's German wealth management unit.
Volkswagen, BMW, and Mercedes-Benz advanced more than 1% after the European Union imposed additional tariffs of as much as 38% on the imported Chinese electric vehicles.
Aixtron SE soared 17.5% to €22.19 after the chipmaking equipment maker reported stronger-than-expected orders in the second quarter.
- Bridgette Randall
- 05 Jul, 2024
- London
European markets traded higher and extended weekly gains after the center-left Labour Party won a landslide victory, ending the 14-year Conservative Party government.
Benchmark stock indexes and the pound in London held steady on the hopes that the new government will retain financial policies in place to lower the national debt below 100% of gross domestic product.
The new UK government is going to face a tough task in lowering the budget deficit, balancing the increase in social spending, and altering the tax regime.
In France, voters are heading for the second round of elections on Sunday, and preliminary polls predict a hung parliament as the National Rally Party faces a coalition of parties aligned to prevent the far-right party from winning a majority.
On the economic front, France's international goods trade deficit widened to €8 billion in May from a downwardly revised €7.5 billion in April, the ministry of finance and economy reported Friday.
The trade gap reached its largest level since October 2023, after exports decreased 1.8% to €50.2 billion and imports eased 0.7% to €58.2 billion.
The good trade balance has been negative since 2003, and the monthly deficit hovered around €5 billion before 2019 before deteriorating due to the surge in the cost of imported energy.
Industrial production in Germany declined 6.7% from a year ago in May, adjusted for seasonal and calendar factors, the Federal Statistical Office, or Destatis, reported Friday.
Euro Area retail sales increased 0.3% from a year ago in May and slowed from a 0.6% rise in the previous month, Eurostat reported on Friday.
On a monthly basis, retail sales increased by 0.1% from the previous month and rebounded from an upwardly revised decline of 0.2%.
Europe Indexes and Yields
The DAX index increased by 0.9% to 18,608.56; the CAC-40 index rose by 0.4% to 7,723.98; and the FTSE 100 index rose by 0.001% to 8,240.89.
The yield on 10-year German bonds edged lower to 2.56%. French bonds inched lower to 3.20%; the UK gilts inched lower to 4.16%; and Italian bonds decreased to 3.95%.
The euro edged lower to $1.08; the British pound inched higher to $1.28; and the U.S. dollar weakened to 89.90 Swiss cents.
Brent crude increased $0.17 to $87.27 a barrel, and the Dutch TTF natural gas fell by €0.21 to €33.24 per MWh.
Europe Stock Movers
Home builders in the UK traded higher after the Labour Party won in a landslide, and the new government plans to ramp up the building of affordable housing over the next five years by 1.5 million units.
Persimmons, Barratt Developments, Vistry Group, and Taylor Wimpey gained between 2% and 3%.
HSBC Holdings declined 1.9% to 678.30 pence, and a report suggested that UBS and BNP Paribas may be interested in the company's German wealth management unit.
Volkswagen, BMW, and Mercedes-Benz advanced more than 1% after the European Union imposed additional tariffs of as much as 38% on the imported Chinese electric vehicles.
Aixtron SE soared 17.5% to €22.19 after the chipmaking equipment maker reported stronger-than-expected orders in the second quarter.
- Akira Ito
- 05 Jul, 2024
- Tokyo
Benchmark indexes in Tokyo traded down and trimmed weekly gains after rallying in five sessions in a row.
The Nikkei 225 and the Topix fell ahead of the U.S. jobs report later in the day, and the yen slightly rebounded from its 38-year low to 160.62 against the U.S. dollar.
Japan's household spending unexpectedly declined in May by 1.8% to 290,328 yen, the internal affairs ministry reported Friday.
Household spending fell after rising 0.5% in the previous month and declined in 13 of the last 14 months.
Spending on food fell 3.1% as purchases of vegetables and seaweed fell after poor crops pushed prices higher.
Spending on housing declined by 3.5%, reversing the gain of 3.5% in the earlier month, but medical care spending accelerated to 6.4% from 1.2% in the previous month.
The resumption of the decline in household spending dashed hopes for the Bank of Japan's policymakers to start the spiral of higher spending and wages, supporting the upward momentum.
In international trading, the pound and the euro traded lower as investors worried that new governments in France and the U.K. are likely to step up government spending amid record-high national debts.
The UK's Prime Minister, Rishi Sunak, conceded defeat after the Labour Party won 410 seats in the House of Commons, with 650 seats.
The sharp reversal in voter sentiment came about after a series of recent policy missteps over immigration, healthcare funding, and lack of infrastructure spending during the Conservative government of 14 years.
In France, the far-right National Rally Party is struggling to win an absolute majority in the second round of the election scheduled for July 7, after President Emmanuel Macron's party formed a coalition with the newly formed Popular Front.
Financial markets in New York are set to reopen lower after the Independence Day holiday on July 4.
Japan Stock Movers
The Nikkei 225 stock average declined 0.2% to 40,828.58, and the Topix index fell 0.6% to 2,881.62.
For the week, the two benchmark indexes are set to close up 3%.
Tech stocks were among the leading decliners, and Tokyo Electron, Screen Holdings, Advantest, and SoftBank declined between 1% and 1.5%.
Retailers were in focus again in the hopes of higher earnings, driven by a surge in foreign tourists.
Isetan Mitsukoshi gained ¥3,528.0, Seven & I edged down 0.1% to ¥1,993.50, Mercari gained 4.0% to ¥2,407.50, and Takashimaya added 0.8% to ¥2,953.50.
Nippon Yusen declined 3.5% to ¥4,923.0, Mitsui OSK fell 3.4% to ¥5,111.0, and Kawasaki Kisen dropped 2.5% to ¥2,700.50.
- Li Chen
- 05 Jul, 2024
- Mumbai
Market sentiment was weak in Shanghai and Hong Kong after the European Union imposed additional tariffs on Chinese electric vehicles starting Friday.
The Hang Seng index and the CSI 300 index declined 1% after the European Union imposed additional tariffs between 20.8% and 37.6% on Chinese electric vehicles sold in the region.
The additional tariffs, on top of the 10% current duty, are expected to be in place for four months.
Market sentiment remained subdued as investors looked ahead to additional economic and financial market-supportive measures at the end of the Communist Party's Third Plenum.
Expectations are high that policymakers may announce deeper economic reforms to revive the faltering property market and bolster consumer confidence.
However, Chinese policymakers are struggling to devise broad reforms amid falling foreign investments, rising capital outflows, weak consumer sentiment, and record high youth unemployment.
Investors are looking ahead to the start of earnings season next week, and technology and export-heavy industrial companies are likely to meet or exceed earnings expectations.
In international trading, the pound and the euro traded lower as investors worried that new governments in France and the U.K. are likely to step up government spending amid record-high national debts.
The UK's Prime Minister, Rishi Sunak, conceded defeat after the Labour Party won 406 seats in the House of Commons, with 650 seats.
The sharp reversal in voter sentiment came about after a series of recent policy missteps over immigration, healthcare funding, and lack of infrastructure spending during the Conservative government of 14 years.
China Stock Movers
The Hang Seng Index declined 1% to 17,851.36, and the CSI 300 index dropped 0.97% to 3,412.25.
Electric vehicle markets dropped after the European Union's additional tariffs kicked in.
Li Auto declined 2.2% to HK $78.95, BYD fell 0.3% to HK $229.50, Xpeng dropped 3.5% to HK $30.20, and Nio eased 1.5% to HK $37.05.
Shandong Jianbang New Material soared 130% from its initial public offering price of 44.63 yuan on the first day of its trading in Shanghai.