- Barry Adams
- 09 Jan, 2024
- New York City
U.S. stocks trimmed early losses, and investors remained on the sidelines a day after tech stocks powered the market rally.
Benchmark indexes rested in early trading, and mega-cap tech stocks hovered near their recent highs after the S&P 500 index added more than 1.4% and the Nasdaq Composite advanced about 2.2% in the previous session.
Investors shifted their attention to two key inflation measures scheduled to be released later in the week.
The December reading of the consumer price index is scheduled to be released on Thursday, followed by the producer price index on Friday.
Investors are hoping that both measures will show a cooling of inflation on a monthly basis, supporting the case for the Federal Reserve to lower the rate sooner than expected.
U.S. Trade Deficit Narrowed in November
The U.S. international trade deficit narrowed to $63.2 billion in November from $64.5 billion in October, the Bureau of Economic Analysis reported Tuesday.
The goods deficit declined $0.6 billion to $89.4 billion, and the service surplus rose $0.7 billion to 26.2 billion.
Total exports decreased by 1.9% to $253.7 billion, and total imports declined by the same amount to $316.9 billion.
Year-to-date, the goods and services deficit decreased $161.8 billion, or 18.4%, from the same period in 2022.
Exports increased $28.8 billion, or 1.0%, and imports decreased $133.0 billion, or 3.6%.
The deficit with China declined by $2.4 billion to $21.5 billion and with the European Union by $3.5 billion to $15.6 billion, but rose by $2.0 billion to $2.3 billion.
U.S. Indexes and Yields
The S&P 500 index decreased 0.3% to 4,750.81, and the Nasdaq Composite increased 0.02% to 14,846.78.
The yield on 2-year Treasury notes decreased to 4.38%, 10-year Treasury notes held steady at 4.04%, and 30-year Treasury bonds rose to 4.20%.
WTI crude oil increased $1.28 to $71.98 a barrel, and natural gas prices increased 24 cents to $3.21 a thermal unit.
Gold increased $0.30 to $2,028.18 an ounce, and investors debated the future interest rate path.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 102.37.
U.S. Stock Movers
Juniper Networks rose 24% to $37.50 on a report that Hewlett-Packard Enterprise is in "advanced talks" to acquire the company in a $13 billion deal.
The news was first reported by the Wall Street Journal and could not be independently verified.
The acquisition between the two companies could be finalized as early as this week, the Journal reported.
Unity Software increased 2.9% to $39.95 after the company said it plans to lay off about 25%, or 1,800, of its workforce as a part of the company's restructuring plan.
Microchip Technology declined 2.9% to $83.10 after the company lowered its fiscal third quarter revenue outlook, citing a "weakening economic environment."
The company said revenue in the quarter is likely to decline sequentially by 22% compared to the previous estimate released on November 2, 2023, of a decline between 15% and 20%.
Jet Blue Airways fell 5% to $5.47, and the company said President and Chief Operating Officer Joanna Geraghty will replace Chief Executive Robin Hayes effective February 12.
Economic Worries Drag European Markets Down
European markets lacked direction in early trading, and investors reviewed the latest economic data from Germany, France, and Italy.
Investor enthusiasm for stocks has been on the decline for the second week in a row amid interest rate and economic uncertainties.
Those market anxieties were heightened after Germany's industrial output shrank for the sixth month in a row.
German Industrial Production Declined Sixth Consecutive Month
Industrial production declined 0.7% from the previous month in November following a revised 0.3% fall in October, the Federal Statistics Office, or Destatis, reported Tuesday.
On an annual basis, German industrial output shrank 4.8%, the sharpest fall in nearly three years.
The production of capital goods fell by 0.7%, intermediate goods by 0.5%, and consumer goods by 0.1% from the previous month.
Outside of the manufacturing industry, energy production increased by 3.9% and construction production fell by 2.9% compared to the previous month.
France's trade Deficit Shrank In November
France's international trade deficit decreased in November due to a sharp decline in imports, the customs office reported earlier Tuesday.
The trade deficit narrowed to €5.9 billion in November from €8.5 billion in October, largely because of the decline in the import price of energy.
The trade deficit in the same month last year was €14.4 billion.
Exports declined 0.6% to €49.6 billion, and imports fell 4.8% to €57 billion.
UK Retail Sales Growth Slowed in the Fifth Consecutive Month In December
UK comparable retail sales increased 1.9% from a year ago in December, slower than the 2.6% rise in November, the British Retail Consortium reported Tuesday.
Total retail sales rose at a slower pace of 1.7%. as consumers avoided high-priced items and last-minute bargains failed to attract customers to buy furniture and household goods.
“Christmas shoppers ditched clothing, jewelry, and technology gifts, opting for beauty, health, and personal care products, which, along with food and drink, drove festive sales this year," said Paul Martin, head of retail at survey sponsor KPMG.
December's retail sales rose at a slower pace following a 2.6% rise in November amid lackluster Christmas holiday sales.
Retail sales growth slowed for the fifth month in a row after consumers stayed focused on basic items while battling high inflation and the cost-of-living crisis amid an interest rate at a 15-year high of 5.25%.
Europe Indexes and Yields
The DAX index decreased 0.2% to 16,688.36, the CAC-40 index fell 0.3% to 7,426.62, and the FTSE 100 index inched lower by 0.1% to 7,683.96.
The yield on 10-year German bonds edged up to 2.18%; French bonds inched higher to 2.72%; the UK gilts edged up to 3.82%; and Italian bonds advanced to 3.88%.
The euro edged lower to $1.093, the British pound inched higher to $1.272, and the U.S. dollar eased to 85.03 Swiss cents.
Brent crude increased $1.42 to $77.60 a barrel, and the Dutch TTF natural gas decreased by €0.94 to €30.64 per MWh.
Europe Stock Movers
GSK plc increased 1.1% to 1,565.40 pence after the pharmaceutical company agreed to acquire the biotech company Aiolos Bio for $1.4 billion.
Trigano SA jumped 2.9% to €146.80 after the camping van maker reported higher revenue in the fiscal first quarter.
Revenue in the first quarter increased 19.1% to 931.6 million from 782.3 million a year ago.
Games Workshop Group decreased 1.1% to 9,665.0 pence despite the company reporting strong first-half results.
Hill & Smith fell 1% to 1,808.71 pence, and the maker of sustainable products agreed to acquire Capital Steel Service LLC for $6.25 million.
Munich Re declined 0.5% to €381.20 after the German reinsurance company provided an update on the cost of natural disasters in 2023.
Overall losses from natural disasters in 2023 totaled $250 billion, of which only $95 billion were insured.
Record thunderstorm losses in North America and Europe totaled $76 billion, of which $58 billion were insured.
The number of deaths caused by natural disasters rose to 74,000 in 2023, well above the annual average of the last five years of 10,000.
In contrast, economic losses from natural disasters were dominated by severe storms. 76% of overall losses were weather-related, while 24% had geophysical causes, the report from Munich Re noted.
Asian Markets Advance, Stimulus Hopes lift China Stocks
Asian markets generally traded higher following the advance in New York and reversal in trading across Europe.
The Nikkei index gained 1.2% to 33,789.56 after tech stocks gained, reflecting the surge in tech stocks in New York. Markets in Japan were closed on Monday and gained sharply in early trading.
The index earlier touched a 33-year high after exporters, retailers, and tech stocks were among the leading gainers.
Advantest Corp. gained 4%, Tokyo Electron added 3.3%, and Screen Holdings increased 1.6%.
The average household spending in Japan in November declined 2.9% to 286,992 yen, the Ministry of Internal Affairs and Communications reported Tuesday.
The average monthly household income decreased by 4.7% to 494,181 yen.
The Kospi index in Seoul jumped as much as 0.7% in early trading but lost momentum in late afternoon and fell 0.3% to 2,556.90.
The Bank of Korea is set to announce its rate decision on Thursday, and economists are anticipating the central bank to hold its key lending rate of 3.5% for the ninth time in a row.
Stocks in Hong Kong advanced 0.3% to 16,277.09, and the Shanghai Composite Index gained -.2% to 2,894.28 after Beijing hinted at stimulus measures to support the faltering economic growth.
The People's Bank of China is likely to lower the reserve ratio for banks, cut the medium-term lending rate next week, and open market operations, according to comments from Zou Lan, director of monetary policy at the central bank, reported by state-run Xinhua News Agency.
- Scott Peters
- 09 Jan, 2024
- New York City
Juniper Networks rose 24% to $37.50 on a report that Hewlett-Packard Enterprise is in "advanced talks" to acquire the company in a $13 billion deal.
The news was first reported by the Wall Street Journal and could not be independently verified.
The acquisition between the two companies could be finalized as early as this week, the Journal reported.
Hewlett Packard Enterprise declined 7% to $16.42.
Unity Software increased 2.9% to $39.95 after the company said it plans to lay off about 25%, or 1,800, of its workforce as a part of the company's restructuring plan.
Microchip Technology declined 2.9% to $83.10 after the company lowered its fiscal third quarter revenue outlook, citing a "weakening economic environment."
The company said revenue in the quarter is likely to decline sequentially by 22% compared to the previous estimate released on November 2, 2023, of a decline between 15% and 20%.
JetBlue Airways fell 5% to $5.47, and the company said President and Chief Operating Officer Joanna Geraghty will replace Chief Executive Robin Hayes effective February 12.
- Barry Adams
- 09 Jan, 2024
- New York City
U.S. stocks turned lower after a day of sharp gains when investors searched for bargains in the tech sector.
Benchmark indexes rested in early trading, and mega-cap tech stocks hovered near their recent highs after the S&P 500 index added more than 1.4% and the Nasdaq Composite advanced about 2.2% in the previous session.
Investors shifted their attention to two key inflation measures scheduled to be released later in the week.
The December reading of the consumer price index is scheduled to be released on Thursday, followed by the producer price index on Friday.
Investors are hoping that both measures will show a cooling of inflation on a monthly basis, supporting the case for the Federal Reserve to lower the rate sooner than expected.
U.S. Indexes and Yields
The S&P 500 index decreased 0.4% to 4,781.75, and the Nasdaq Composite increased 0.5% to 14,534.17.
The yield on 2-year Treasury notes decreased to 4.38%, 10-year Treasury notes held steady at 4.04%, and 30-year Treasury bonds rose to 4.20%.
WTI crude oil decreased $1.60 to $72.37 a barrel, and natural gas prices decreased 5 cents to $3.02 a thermal unit.
Gold increased $7.38 to $2,035.08 an ounce, and investors debated the future interest rate path.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 102.37.
U.S. Stock Movers
Juniper Networks rose 24% to $37.50 on a report that Hewlett-Packard Enterprise is in "advanced talks" to acquire the company in a $13 billion deal.
The news was first reported by the Wall Street Journal and could not be independently verified.
The acquisition between the two companies could be finalized as early as this week, the Journal reported.
Unity Software increased 2.9% to $39.95 after the company said it plans to lay off about 25%, or 1,800, of its workforce as a part of the company's restructuring plan.
Microchip Technology declined 2.9% to $83.10 after the company lowered its fiscal third quarter revenue outlook, citing a "weakening economic environment."
The company said revenue in the quarter is likely to decline sequentially by 22% compared to the previous estimate released on November 2, 2023, of a decline between 15% and 20%.
Jet Blue Airways fell 5% to $5.47, and the company said President and Chief Operating Officer Joanna Geraghty will replace Chief Executive Robin Hayes effective February 12.
- Inga Muller
- 09 Jan, 2024
- Frankfurt
European market indexes lacked direction, and investors remained cautious after German industrial production unexpectedly declined in November.
The DAX index decreased 0.2% to 16,687.49, the CAC-40 index fell 0.2% to 7,438.98, and the FTSE 100 index inched higher by 0.03% to 7,696.15.
The yield on 10-year German bonds edged up to 2.18%; French bonds inched higher to 2.72%; the UK gilts edged up to 3.82%; and Italian bonds advanced to 3.88%.
GSK plc increased 1.1% to 1,565.40 pence after the pharmaceutical company agreed to acquire the biotech company Aiolos Bio for $1.4 billion.
Trigano SA jumped 2.9% to €146.80 after the camping van maker reported higher revenue in the fiscal first quarter.
Revenue in the first quarter increased 19.1% to 931.6 million from 782.3 million a year ago.
Games Workshop Group decreased 1.1% to 9,665.0 pence despite the company reporting strong first-half results.
Hill & Smith fell 1% to 1,808.71 pence, and the maker of sustainable products agreed to acquire Capital Steel Service LLC for $6.25 million.
Munich Re declined 0.5% to €381.20 after the German reinsurance company provided an update on the cost of natural disasters in 2023.
Overall losses from natural disasters in 2023 totaled $250 billion, of which only $95 billion were insured.
Record thunderstorm losses in North America and Europe totaled $76 billion, of which $58 billion were insured.
The number of deaths caused by natural disasters rose to 74,000 in 2023, well above the annual average of the last five years of 10,000.
In contrast, economic losses from natural disasters were dominated by severe storms. 76% of overall losses were weather-related, while 24% had geophysical causes, the report from Munich Re noted.
- Bridgette Randall
- 09 Jan, 2024
- Frankfurt
European markets lacked direction in early trading, and investors reviewed the latest economic data from Germany, France, and Italy.
Investor enthusiasm for stocks has been on the decline for the second week in a row amid interest rate and economic uncertainties.
Those market anxieties were heightened after Germany's industrial output shrank for the sixth month in a row.
German Industrial Production Declined Sixth Consecutive Month
Industrial production declined 0.7% from the previous month in November following a revised 0.3% fall in October, the Federal Statistics Office, or Destatis, reported Tuesday.
On an annual basis, German industrial output shrank 4.8%, the sharpest fall in nearly three years.
The production of capital goods fell by 0.7%, intermediate goods by 0.5%, and consumer goods by 0.1% from the previous month.
Outside of the manufacturing industry, energy production increased by 3.9% and construction production fell by 2.9% compared to the previous month.
France's trade Deficit Shrank In November
France's international trade deficit decreased in November due to a sharp decline in imports, the customs office reported earlier Tuesday.
The trade deficit narrowed to €5.9 billion in November from €8.5 billion in October, largely because of the decline in the import price of energy.
The trade deficit in the same month last year was €14.4 billion.
Exports declined 0.6% to €49.6 billion, and imports fell 4.8% to €57 billion.
UK Retail Sales Growth Slowed in the Fifth Consecutive Month In December
UK comparable retail sales increased 1.9% from a year ago in December, slower than the 2.6% rise in November, the British Retail Consortium reported Tuesday.
Total retail sales rose at a slower pace of 1.7%. as consumers avoided high-priced items and last-minute bargains failed to attract customers to buy furniture and household goods.
“Christmas shoppers ditched clothing, jewelry, and technology gifts, opting for beauty, health, and personal care products, which, along with food and drink, drove festive sales this year," said Paul Martin, head of retail at survey sponsor KPMG.
December's retail sales rose at a slower pace following a 2.6% rise in November amid lackluster Christmas holiday sales.
Retail sales growth slowed for the fifth month in a row after consumers stayed focused on basic items while battling high inflation and the cost-of-living crisis amid an interest rate at a 15-year high of 5.25%.
Europe Indexes and Yields
The DAX index decreased 0.2% to 16,687.49, the CAC-40 index fell 0.2% to 7,438.98, and the FTSE 100 index inched higher by 0.03% to 7,696.15.
The yield on 10-year German bonds edged up to 2.18%; French bonds inched higher to 2.72%; the UK gilts edged up to 3.82%; and Italian bonds advanced to 3.88%.
The euro edged lower to $1.093, the British pound inched higher to $1.272, and the U.S. dollar eased to 85.03 Swiss cents.
Brent crude increased $1.30 to $77.42 a barrel, and the Dutch TTF natural gas decreased by €0.73 to €30.85 per MWh.
Europe Stock Movers
GSK plc increased 1.1% to 1,565.40 pence after the pharmaceutical company agreed to acquire the biotech company Aiolos Bio for $1.4 billion.
Trigano SA jumped 2.9% to €146.80 after the camping van maker reported higher revenue in the fiscal first quarter.
Revenue in the first quarter increased 19.1% to 931.6 million from 782.3 million a year ago.
Games Workshop Group decreased 1.1% to 9,665.0 pence despite the company reporting strong first-half results.
Hill & Smith fell 1% to 1,808.71 pence, and the maker of sustainable products agreed to acquire Capital Steel Service LLC for $6.25 million.
Munich Re declined 0.5% to €381.20 after the German reinsurance company provided an update on the cost of natural disasters in 2023.
Overall losses from natural disasters in 2023 totaled $250 billion, of which only $95 billion were insured.
Record thunderstorm losses in North America and Europe totaled $76 billion, of which $58 billion were insured.
The number of deaths caused by natural disasters rose to 74,000 in 2023, well above the annual average of the last five years of 10,000.
In contrast, economic losses from natural disasters were dominated by severe storms. 76% of overall losses were weather-related, while 24% had geophysical causes, the report from Munich Re noted.
- Arun Goswami
- 09 Jan, 2024
- Mumbai
Stocks in Mumbai advanced, and investors awaited the start of the earnings season later in the week.
The Sensex index increased 570.02 points to 71,925.24, and the Nifty index rose 176.65 points to 21,688.75.
On the Mumbai stock exchange, 367 stocks traded at their 52-week highs and 5 stocks traded at their 52-week lows.
Bajaj Auto increased 2% to ₹7,123.05 after the company announced a stock repurchase plan of ₹4,000 crore.
Bajaj Finserv rose 0.2% to ₹1,700.15, and the company's subsidiary, Bajaj Allianz General Insurance, collected a gross direct premium of ₹1,425 crore in December.
FINO Payments Bank jumped 4% to ₹302.75 after the company applied for a small finance bank license with the Reserve Bank of India.
Tata Motors increased 0.7% to ₹794.95, and the company's subsidiary Jaguar Land Rover sales in the December quarter increased to 101,043 units, the highest in eleven quarters.
Metropolis Healthcare edged up 0.06% to ₹1,661.0 after the healthcare service provider said revenue in the December quarter increased by 12%.
The quarterly revenue increase was largely driven by a 9% increase in patient count.
Adani Enterprises advanced 1.7% to ₹3,014.25 after the company's subsidiary, Mumbai International Airport, won the arbitration case against the Airports Authority of India.
MIAL is not required to make monthly payments to AAI for the period between March 13, 2020, and February 28, 2022, citing force majeure in place during the COVID-19 pandemic period.
BEML gained 0.2% to ₹3,175.05 after the company won an order worth ₹330 crore from the defense ministry.
IRB Infrastructure Developers soared 10.2% to ₹46.40 after the company said toll revenue in December rose 26% from a year ago.
Gujarat State Fertilizers and Chemicals increased 9% to ₹298.40 after the company commissioned an ammonium sulfate plant near Vadodara.
The production capacity of the fertilizer used in alkaline soil is about 132,000 tons per year.
Gujarat Mineral Development Corporation jumped 6.5% to ₹480.15 after the company won an environmental clearance to expand its Surkha lignite coal mine.
- Arjun Pandit
- 09 Jan, 2024
- Mumbai
Stocks in Mumbai advanced after crude oil prices dipped in international markets and fueled the prospects of lower inflation and interest rate cuts.
The Sensex and Nifty indexes jumped more than 0.4% after Saudi Arabia lowered its crude oil delivery price in February to Asia on softening demand and rising supplies from the U.S.
Saudi Arabia cut the premium on benchmark Arab crude to between $1.50 and $2.0 a barrel, dipping the international price to near $70 a barrel.
Moreover, tech stocks soared in overnight trading in New York, driving the tech-heavy Nasdaq Composite up 2.2% and the S&P 500 index up 1.4%.
Asian Markets Advance, Stimulus Hopes lift China Stocks
Asian markets generally traded higher following the advance in New York and reversal in trading across Europe.
The Nikkei index gained 1.2% to 33,789.56 after tech stocks gained, reflecting the surge in tech stocks in New York. Markets in Japan were closed on Monday and gained sharply in early trading.
The index earlier touched a 33-year high after exporters, retailers, and tech stocks were among the leading gainers.
Advantest Corp. gained 4%, Tokyo Electron added 3.3%, and Screen Holdings increased 1.6%.
The average household spending in Japan in November declined 2.9% to 286,992 yen, the Ministry of Internal Affairs and Communications reported Tuesday.
The average monthly household income decreased by 4.7% to 494,181 yen.
The Kospi index in Seoul jumped as much as 0.7% in early trading but lost momentum in late afternoon and fell 0.3% to 2,556.90.
The Bank of Korea is set to announce its rate decision on Thursday, and economists are anticipating the central bank to hold its key lending rate of 3.5% for the ninth time in a row.
Stocks in Hong Kong advanced 0.3% to 16,277.09, and the Shanghai Composite Index gained -.2% to 2,894.28 after Beijing hinted at stimulus measures to support the faltering economic growth.
The People's Bank of China is likely to lower the reserve ratio for banks, cut the medium-term lending rate next week, and open market operations, according to comments from Zou Lan, director of monetary policy at the central bank, reported by state-run Xinhua News Agency.
India Indexes and Yields
The Sensex index increased 570.02 points to 71,925.24, and the Nifty index rose 176.65 points to 21,688.75.
On the Mumbai stock exchange, 367 stocks traded at their 52-week highs and 5 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds eased 7.18%, and the Indian rupee edged lower to ₹83.05 against the U.S. dollar.
The gold price increased by 0.3% to ₹62,250 per ten grams, and silver rose by 0.1% to ₹72,490 per kilo.
Crude oil increased by 0.7% to ₹5,903 per barrel, and natural gas advanced by 1.6% to ₹240.50 per thermal unit.
India Stock Movers
Bajaj Auto increased 2% to ₹7,123.05 after the company announced a stock repurchase plan of ₹4,000 crore.
Bajaj Finserv rose 0.2% to ₹1,700.15, and the company's subsidiary, Bajaj Allianz General Insurance, collected a gross direct premium of ₹1,425 crore in December.
FINO Payments Bank jumped 4% to ₹302.75 after the company applied for a small finance bank license with the Reserve Bank of India.
Tata Motors increased 0.7% to ₹794.95, and the company's subsidiary Jaguar Land Rover sales in the December quarter increased to 101,043 units, the highest in eleven quarters.
Metropolis Healthcare edged up 0.06% to ₹1,661.0 after the healthcare service provider said revenue in the December quarter increased by 12%.
The quarterly revenue increase was largely driven by a 9% increase in patient count.
Adani Enterprises advanced 1.7% to ₹3,014.25 after the company's subsidiary, Mumbai International Airport, won the arbitration case against the Airports Authority of India.
MIAL is not required to make monthly payments to AAI for the period between March 13, 2020, and February 28, 2022, citing force majeure in place during the COVID-19 pandemic period.
BEML gained 0.2% to ₹3,175.05 after the company won an order worth ₹330 crore from the defense ministry.
IRB Infrastructure Developers soared 10.2% to ₹46.40 after the company said toll revenue in December rose 26% from a year ago.
- Barry Adams
- 08 Jan, 2024
- New York City
Stocks advanced in Monday's trading after closing down in the first week of trading in 2024.
The S&P 500 index and the Nasdaq Composite rebounded from the morning doldrums, and investors debated future rate paths ahead of the release of inflation data later in the week.
Market sentiment turned positive after crude oil prices plunged by as much as 5% following Saudi Arabia's price-cut announcement.
Saudi Arabia lowered the benchmark premium to between $1.50 and $2.0 a barrel for February crude oil delivery in Asia.
Moreover, OPEC also increased its daily production in December by 70,000 barrels per day to 27.88 million bpd, according to a report by Reuters.
Meanwhile, the number of U.S. oil drilling rigs increased to 501 last week, indicating rising oil supplies in global markets.
The lower oil price raised the prospect of further weakening inflation, supporting the case for policymakers to cut the interest rate in March.
Market sentiment wavered last week after the hotter-than-expected nonfarm payrolls report and the hawkish tone of the minutes of the Fed's meeting in December dampened the prospect of a rate cut in March.
Banks are scheduled to kickstart the earnings season this week, and Bank of America, Citigroup, JP Morgan Chase, and Wells Fargo are expected to release their quarterly results.
United Health, Delta, Black Rock, and Delta Air Lines are also among the leading companies scheduled to release their results.
Fiscal year budgets and government spending were also in focus as Congressional leaders announced a deal on Sunday to keep total spending at $1.59 trillion and avert a government shutdown later in the month.
U.S. Indexes and Yields
The S&P 500 index increased 0.07% to 4,736.25, and the Nasdaq Composite increased 0.2% to 14,633.52.
The yield on 2-year Treasury notes decreased to 4.39%, 10-year Treasury notes held steady at 4.04%, and 30-year Treasury bonds rose to 4.20%.
Crude oil prices declined in Monday's trading after Saudi Arabia said it plans to cut oil prices in February for deliveries in all regions amid softening demand and rising global oil supplies.
WTI crude oil decreased $3.54 to $70.25 a barrel, and natural gas prices decreased 6 cents to $2.82 a thermal unit.
Gold decreased $14.10 to $2,031.42 an ounce and extended losses from the last week as investors cooled rate-cut hopes and awaited the release of inflation data later in the week.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 102.42.
U.S. Stock Movers
Boeing Company declined 6.3% to $233.03 after the Federal Aviation Authority temporarily grounded 737 Max 9 aircraft for an emergency safety inspection.
The FAA ordered the grounding after a plug door unlocked and fell off midair during an Alaska Air flight on Friday after takeoff from Portland, Oregon, heading to Ontario, California.
Of the 171 aircraft grounded by the FAA, Alaska Airlines has 65 planes, United Airlines has 79, and the rest are with six international airlines, including the discount airline Lion Air.
The aircraft maker has been struggling with pandemic-era supply chain disruptions and two plane crashes in Ethiopia and Indonesia in 2018 and 2019. that killed 346 people.
The fuselage maker, Spirit AeroSystems, plunged 13.5% to $27.43 after the panel incident.
Lululemon Athletica declined 1.4% to $484.50 despite the specialty apparel retailer lifting its outlook.
The company lifted its fourth quarter earnings estimate range to between $4.95 and $5.0 from the previous estimate between $4.85 and $4.93.
European Markets Erase Morning Losses
European markets struggled to advance amid rising tensions in the Middle East, and investors digested a fresh batch of economic news.
Benchmark indexes remained under pressure after Israel stepped up its bombing campaigns targeting sites controlled by Hamas and Hezbollah in Khan Yunis and Lebanon in overnight strikes.
Investors welcomed the increase in Germany's trade surplus and the rebound in factory orders in November, but annual inflation in Switzerland accelerated in December.
German factory orders increased by 0.3% from the previous month in November. The increase in domestic orders overwhelmed the decline in foreign orders, Destatis reported Monday.
Consumer price inflation in Switzerland increased to 1.7% in December from 1.4% in November, the Swiss Federal Statistics Office reported Monday.
On a monthly basis, consumer price inflation was unchanged after falling 0.2% in November.
Germany's Trade Surplus Nears a 3-year High
Germany's international trade surplus widened in November to €20.4 billion from the slightly revised €17.7 billion in October, the Federal Statistics, or Destatis, reported Monday.
The monthly trade surplus was the largest since January 2021, and exports rose 3.7% from the previous month to €131.2 billion and imports advanced 1.9% from the previous month to €110.8 billion.
Exports declined 5.0% and imports fell 12.2% on an annual basis.
Calendar and seasonally adjusted exports increased 5.4% from the previous month to €71.5 billion, exported to the member states of the European Union, and imports rose 2.8% to €58.9 billion.
Exports to the U.S. fell 1.4% to €13.4 billion, but to China, they advanced 3.1% to €8.1 billion, and to the UK, they increased 15.2% to €7.7 billion.
Imports from China rose 3.1% to €13.0 billion, from the U.S. advanced 3.0% to €8.1 billion, and from the U.K. jumped 6.3% to €2.9 billion.
Europe Indexes and Yields
The DAX index increased 0.7% to 16,716.47, the CAC-40 index rose 0.4% to 7,450.24, and the FTSE 100 index inched higher by 0.06% to 7,694.19.
The yield on 10-year German bonds held steady at 2.16%; French bonds were nearly unchanged at 2.70%; the UK gilts edged up to 3.79%; and Italian bonds advanced to 3.86%.
The euro edged lower to $1.093, the British pound inched lower to $1.269, and the U.S. dollar eased to 85.08 Swiss cents.
Brent crude declined $3.12 to $75.63 a barrel, and the Dutch TTF natural gas decreased by €3.06 to €31.49 per MWh.
Europe Stock Movers
Pandora increased 1.0% to DKK 956.60 after the Danish Jewelry Company reported that December quarter organic sales increased by 12% from a year ago.
Overall sales increased by 8%, surpassing the company's own forecast released in November of growth between 5% and 6%.
Revenue in the fourth quarter increased to DKK 10.8 billion, or $1.58 billion, from DKK 9.9 billion, while earnings before interest and tax rose to DKK 3.7 billion from DKK 3.2 billion.
Maersk declined 1% to DKK 13,765.0, and the company announced a significant rerouting of merchant shipments away from the Red Sea in response to the persistent threat posed by Yemen-based Houthi rebels.
Casino declined 4.5% to €0.58, and the European Commission approved the transfer of control of the French retail company to a consortium led by Daniel Kretinsky.
Evotec advanced 0.5% to €18.03 after the German biotech company announced progress in product development through its strategic partnership with Bristol Myers Squibb.
Oil companies were in focus after crude oil prices declined more than 1% after Saudi Arabia announced a sharp cut in oil prices and a rise in OPEC oil output.
Shell PLC decreased 1.9% to 2,523.0 pence after the company announced asset impairment charges between $2.5 billion and $4.5 billion, primarily linked to the assets in Singapore.
Plus500 increased 5.2% to 1,747.0 pence after the company reported annual results ahead of market expectations.
Revenue in 2023 increased to $725 million, operating earnings were $340 million, and the cash balance rose to $900 million.
The company said it will publish its preliminary results on February 12.
Indexes In China Decline; Japan, Korea, and Australia Advance
In Asia, market indexes declined in mainland China by 1% and in Hong Kong by more than 2.4% after tech stocks led the decliners.
Economists estimated that official reports on January 12 are likely to show China's export and import growth slowed in December and inflation declined 0.4% after falling 0.5% in November, indicating persistent deflation.
Investors' hope of the Chinese government providing economic stimulus has so far not materialized, keeping the market index in a downward spiral for the fifth year in a row.
Market indexes in Korea and Japan advanced 0.3% ahead of the Bank of Korea's monetary policy announcement later in the week, and market indexes in Australia advanced 0.1% in choppy trading.
- Scott Peters
- 08 Jan, 2024
- New York City
Boeing Company declined 6.3% to $233.03 after the Federal Aviation Authority temporarily grounded 737 Max 9 aircraft for an emergency safety inspection.
The FAA ordered the grounding after a plug door unlocked and fell off midair during an Alaska Air flight on Friday after takeoff from Portland, Oregon, heading to Ontario, California.
Of the 171 aircraft grounded by the FAA, Alaska Airlines has 65 planes, United Airlines has 79, and the rest are with six international airlines, including the discount airline Lion Air.
The aircraft maker has been struggling with pandemic-era supply chain disruptions and two plane crashes in Ethiopia and Indonesia in 2018 and 2019. that killed 346 people.
The fuselage maker, Spirit AeroSystems, plunged 13.5% to $27.43 after the panel incident.
Alaska Air dropped 5.3% to $35.95, and the regional airline canceled about 210 flights after the mid-air panel blowout incident.
The regional airline said it canceled 170 flights on Sunday and an additional 60 on Monday and added that cancellations are likely to continue this week after the FAA temporarily grounded 737 Max 9 airplanes for emergency inspections.
United Airlines declined 1.2% to $41.25.
Lululemon Athletica declined 1.4% to $484.50 despite the specialty apparel retailer lifting its outlook.
The company lifted its fourth quarter earnings estimate range to between $4.95 and $5.0 from the previous estimate between $4.85 and $4.93.
- Barry Adams
- 08 Jan, 2024
- New York City
Stocks struggled for the second week in a row in the new year after investors curbed their rate-cut optimism and awaited the start of the earnings season later in the week.
The S&P 500 index and the Nasdaq Composite edged down in early trading, and investors debated future rate paths ahead of the release of inflation data later in the week.
Market participants remained cautious for the second week in a row after the hotter-than-expected nonfarm payrolls report and the hawkish tone of the minutes of the Fed's meeting in December dashed all hopes of rate cuts in March.
Banks are scheduled to kickstart the earnings season this week, and Bank of America, Citigroup, JP Morgan Chase, and Wells Fargo are expected to release their quarterly results.
United Health, Delta, Black Rock, and Delta Air Lines are also among the leading companies scheduled to release their results.
Fiscal year budgets and government spending were also in focus as Congressional leaders announced a deal on Sunday to keep total spending at $1.59 trillion.
U.S. Indexes and Yields
The S&P 500 index increased 0.07% to 4,736.25, and the Nasdaq Composite increased 0.2% to 14,633.52.
The yield on 2-year Treasury notes decreased to 4.39%, 10-year Treasury notes held steady at 4.04%, and 30-year Treasury bonds rose to 4.20%.
Crude oil prices declined in Monday's trading after Saudi Arabia said it plans to cut oil prices in February for deliveries in all regions amid softening demand and rising global oil supplies.
WTI crude oil decreased $2.71 to $71.15 a barrel, and natural gas prices decreased 10 cents to $2.79 a thermal unit.
Gold decreased $21.41 to $2,024.14 an ounce and extended losses from the last week as investors cooled rate-cut hopes and awaited the release of inflation data later in the week.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 102.42.
U.S. Stock Movers
Boeing Company declined 6.3% to $233.03 after the Federal Aviation Authority temporarily grounded 737 Max 9 aircraft for an emergency safety inspection.
The FAA ordered the grounding after a plug door unlocked and fell off midair during an Alaska Air flight on Friday after takeoff from Portland, Oregon, heading to Ontario, California.
Of the 171 aircraft grounded by the FAA, Alaska Airlines has 65 planes, United Airlines has 79, and the rest are with six international airlines, including the discount airline Lion Air.
The aircraft maker has been struggling with pandemic-era supply chain disruptions and two plane crashes in Ethiopia and Indonesia in 2018 and 2019. that killed 346 people.
The fuselage maker, Spirit AeroSystems, plunged 13.5% to $27.43 after the panel incident.
Lululemon Athletica declined 1.4% to $484.50 despite the specialty apparel retailer lifting its outlook.
The company lifted its fourth quarter earnings estimate range to between $4.95 and $5.0 from the previous estimate between $4.85 and $4.93.
- Inga Muller
- 08 Jan, 2024
- Frankfurt
European markets struggled to advance on the start of a new trading week amid rising geopolitical tensions in the Middle East.
The DAX index increased 0.08% to 16,583.21, the CAC-40 index fell 0.2% to 7,404.69, and the FTSE 100 index inched lower by 0.4% to 7,662.18.
The yield on 10-year German bonds held steady at 2.16%; French bonds were nearly unchanged at 2.70%; the UK gilts edged up to 3.79%; and Italian bonds advanced to 3.86%.
Pandora increased 1.0% to DKK 956.60 after the Danish Jewelry Company reported that December quarter organic sales increased by 12% from a year ago.
Overall sales increased by 8%, surpassing the company's own forecast released in November of growth between 5% and 6%.
Revenue in the fourth quarter increased to DKK 10.8 billion, or $1.58 billion, from DKK 9.9 billion, while earnings before interest and tax rose to DKK 3.7 billion from DKK 3.2 billion.
Maersk declined 1% to DKK 13,765.0, and the company announced a significant rerouting of merchant shipments away from the Red Sea in response to the persistent threat posed by Yemen-based Houthi rebels.
Casino Guichard Perrachon declined 4.5% to €0.58, and the European Commission approved the transfer of control of the French retail company to a consortium led by Daniel Kretinsky.
Evotec advanced 0.5% to €18.03 after the German biotech company announced progress in product development through its strategic partnership with Bristol Myers Squibb.
Oil companies were in focus after crude oil prices declined more than 1% after Saudi Arabia announced a sharp cut in oil prices and a rise in OPEC oil output.
Shell PLC decreased 1.9% to 2,523.0 pence after the company announced asset impairment charges between $2.5 billion and $4.5 billion, primarily linked to the assets in Singapore.
Plus500 increased 5.2% to 1,747.0 pence after the company reported annual results ahead of market expectations.
Revenue in 2023 increased to $725 million, operating earnings were $340 million, and the cash balance rose to $900 million.
The company said it will publish its preliminary results on February 12.
- Bridgette Randall
- 08 Jan, 2024
- Frankfurt
European markets struggled to advance amid rising tensions in the Middle East, and investors digested a fresh batch of economic news.
Benchmark indexes remained under pressure after Israel stepped up its bombing campaigns targeting sites controlled by Hamas and Hezbollah in Khan Yunis and Lebanon in overnight strikes.
Investors welcomed the increase in Germany's trade surplus and the rebound in factory orders in November, but annual inflation in Switzerland accelerated in December.
German factory orders increased by 0.3% from the previous month in November. The increase in domestic orders overwhelmed the decline in foreign orders, Destatis reported Monday.
Consumer price inflation in Switzerland increased to 1.7% in December from 1.4% in November, the Swiss Federal Statistics Office reported Monday.
On a monthly basis, consumer price inflation was unchanged after falling 0.2% in November.
Germany's Trade Surplus Nears 3-year High
Germany's international trade surplus widened in November to €20.4 billion from the slightly revised €17.7 billion in October, the Federal Statistics, or Destatis, reported Monday.
The monthly trade surplus was the largest since January 2021, and exports rose 3.7% from the previous month to €131.2 billion and imports advanced 1.9% from the previous month to €110.8 billion.
Exports declined 5.0% and imports fell 12.2% on an annual basis.
Calendar and seasonally adjusted exports increased 5.4% from the previous month to €71.5 billion, exports to the member states of the European Union, and imports rose 2.8% to €58.9 billion.
Exports to the U.S. fell 1.4% to €13.4 billion, but to China, they advanced 3.1% to €8.1 billion, and to the UK, they increased 15.2% to €7.7 billion.
Imports from China rose 3.1% to €13.0 billion, from the U.S. advanced 3.0% to €8.1 billion, and from the U.K. jumped 6.3% to €2.9 billion.
Europe Indexes and Yields
The DAX index increased 0.08% to 16,583.21, the CAC-40 index fell 0.2% to 7,404.69, and the FTSE 100 index inched lower by 0.4% to 7,662.18.
The yield on 10-year German bonds held steady at 2.16%; French bonds were nearly unchanged at 2.70%; the UK gilts edged up to 3.79%; and Italian bonds advanced to 3.86%.
The euro edged lower to $1.093, the British pound inched lower to $1.269, and the U.S. dollar eased to 85.08 Swiss cents.
Brent crude increased $1.57 to $77.16 a barrel, and the Dutch TTF natural gas decreased by €2.21 to €32.34 per MWh.
Europe Stock Movers
Pandora increased 1.0% to DKK 956.60 after the Danish Jewelry Company reported that December quarter organic sales increased by 12% from a year ago.
Overall sales increased by 8%, surpassing the company's own forecast released in November of growth between 5% and 6%.
Revenue in the fourth quarter increased to DKK 10.8 billion, or $1.58 billion, from DKK 9.9 billion, while earnings before interest and tax rose to DKK 3.7 billion from DKK 3.2 billion.
Maersk declined 1% to DKK 13,765.0, and the company announced a significant rerouting of merchant shipments away from the Red Sea in response to the persistent threat posed by Yemen-based Houthi rebels.
Casino declined 4.5% to €0.58, and the European Commission approved the transfer of control of the French retail company to a consortium led by Daniel Kretinsky.
Evotec advanced 0.5% to €18.03 after the German biotech company announced progress in product development through its strategic partnership with Bristol Myers Squibb.
Oil companies were in focus after crude oil prices declined more than 1% after Saudi Arabia announced a sharp cut in oil prices and a rise in OPEC oil output.
Shell PLC decreased 1.9% to 2,523.0 pence after the company announced asset impairment charges between $2.5 billion and $4.5 billion, primarily linked to the assets in Singapore.
Plus500 increased 5.2% to 1,747.0 pence after the company reported annual results ahead of market expectations.
Revenue in 2023 increased to $725 million, operating earnings were $340 million, and the cash balance rose to $900 million.
The company said it will publish its preliminary results on February 12.
- Arun Goswami
- 08 Jan, 2024
- Mumbai
Stocks in Mumbai traded down after several companies estimated weaker-than-expected sales growth in the December quarter.
The Sensex index decreased 171.49 points to 71,822.46, and the Nifty index fell 68.80 points to 21,642.0.
On the Mumbai stock exchange, 409 stocks traded at their 52-week highs and 9 stocks traded at their 52-week lows.
Titan Company added 0.4% to ₹3,729.60 after the specialty retailer said total sales increased 22% from a year ago in the December quarter and jewelry sales rose 21%.
Tata Steel increased 0.3% to ₹134.05 after the company said steel production increased 6% from the previous quarter and the previous year in the December quarter to 5.32 million tons, or 53.2 lakh tons.
FSN E-commerce Venture, parent of Nykaa, advanced 1.8% to ₹176.45, and the company said net sales value growth in the December quarter for its beauty and personal care division was around 20%.
Godrej Consumer Products dropped 4.6% to ₹1,161.25 after the company offered a weak growth outlook in the December quarter.
Consolidated sales volume is expected to rise in the December quarter in the mid-single-digit range.
Marico declined 4.3% to ₹522.50 after the company estimated consolidated revenue in the December quarter declined in a low single-digit range from a year ago.
Narayana Hrudalaya increased 1.6% to ₹1,237.75 after the company's subsidiary received approval from the insurance regulator to launch a health insurance business in India.
Bank of Baroda declined 3.2% to ₹227.05 after the financial service company said global deposits in the December quarter rose 8.3% from a year ago, powered by a 6.3% rise in domestic deposits.
However, global deposits declined by 0.3% from the previous quarter.
Sula Vineyard soared 14.6% to ₹635.40, and the stock advanced more than 20% in two days of trading on a healthy business outlook.
Fiem Industries advanced 11.6% to ₹2,365.10 after the company said it plans to consider a bonus issue at the next board meeting on January 15.
EaseMyTrip advanced 5% to ₹43.65 after the company said it suspended flight listing and booking to the Maldives in an effort to support Prime Minister Modi's efforts to support domestic tourism to Lakshadweep.
- Arjun Pandit
- 08 Jan, 2024
- Mumbai
Stocks traded sideways on the first day of the second trading week this year amid positive market sentiment.
The Sensex and the Nifty indexes advanced 0.2% in early trading after the statistical agency estimated India's economy to expand at a faster pace of 7.3% in the financial year ending in March.
Investors also looked ahead to the start of the earnings season, and tech-service export providers are scheduled to release earnings on January 11.
Power sector stocks were in focus for the second week in a row after Tata Power announced its plan to build solar and wind turbine-powered plants with a total capacity of 10 GW over the next five years.
In Friday's overseas trading, the U.S. economy added more-than-expected jobs in December.
The eurozone inflation accelerated in the month to 2.9%, and the UK home prices rebounded after falling for seven months in a row to £287,105.
Indexes In China Decline; Japan, Korea, and Australia Advance
In Asia, market indexes declined in mainland China by 1% and in Hong Kong by more than 2.4% after tech stocks led the decliners.
Economists estimated that official reports on January 12 are likely to show China's export and import growth slowed in December and inflation declined 0.4% after falling 0.5% in November, indicating persistent deflation.
Investors' hope of the Chinese government providing economic stimulus has so far not materialized, keeping the market index in a downward spiral for the fifth year in a row.
Market indexes in Korea and Japan advanced 0.3% ahead of the Bank of Korea's monetary policy announcement later in the week, and market indexes in Australia advanced 0.1% in choppy trading.
U.S. Job Market Added More Jobs than Expected
The U.S. economy added jobs at a faster pace in December, the jobless rate held steady, and wages rose at a faster-than-anticipated pace.
Nonfarm payrolls expanded by 216,000 in December, the U.S. Bureau of Labor Statistics reported Friday.
Economists polled by Ticker.com estimated payroll to expand by 160,000 after the economy added a downwardly revised 173,000 jobs in November.
However, the jobless rate was unchanged at 3.7%.
For the year 2023, the U.S. economy added 2.7 million jobs, the smallest increase since 2019 excluding pandemic-impacted 2020, indicating an average monthly increase of 225,000.
Economic Releases This Week
Looking ahead to next week, economic news and corporate earnings are expected to keep investors busy.
In the U.S., investors are awaiting the release of consumer and producer price inflation data in December and an international trade update.
In Europe, investors are looking ahead to the release of Germany’s balance of trade, the final inflation update from France, the inflation data in Switzerland, and Italy’s retail sales and industrial activity update.
In Asia, China is set to release its international trade data, India is scheduled to release its inflation figures, and the Bank of Korea will announce its interest rate decision.
Australia is scheduled to release its international trade data and monthly inflation update next week.
India Indexes and Yields
The Sensex index decreased 171.49 points to 71,822.46, and the Nifty index fell 68.80 points to 21,642.0.
On the Mumbai stock exchange, 409 stocks traded at their 52-week highs and 9 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds held firm at 7.22%, and the Indian rupee hovered near ₹83.23 against the U.S. dollar.
The gold price decreased by 0.3% to ₹62,385 per ten grams, and silver fell by 0.4% to ₹72,273 per kilo.
Crude oil decreased by 0.9% to ₹6,072 per barrel, and natural gas declined by 1.0% to ₹238.70 per thermal unit.
India Stock Movers
Titan Company added 0.4% to ₹3,729.60 after the specialty retailer said total sales increased 22% from a year ago in the December quarter, powered by a 21% rise in jewelry sales.
Tata Steel increased 0.3% to ₹134.05 after the company said steel production increased 6% from the previous quarter and the previous year in the December quarter to 5.32 million tons, or 53.2 lakh tons.
FSN E-commerce Venture, parent of Nykaa, advanced 1.8% to ₹176.45, and the company said net sales value growth in the December quarter for its beauty and personal care division was around 20%.
Godrej Consumer Products dropped 4.6% to ₹1,161.25 after the company offered a weak growth outlook in the December quarter.
Consolidated sales volume is expected to rise in the December quarter in the mid-single-digit range.
Marico declined 4.3% to ₹522.50 after the company estimated consolidated revenue in the December quarter declined in a low single-digit range from a year ago.
Narayana Hrudalaya increased 1.6% to ₹1,237.75 after the company's subsidiary received approval from the insurance regulator to launch a health insurance business in India.
Bank of Baroda declined 3.2% to ₹227.05 after the financial service company said global deposits in the December quarter rose 8.3% from a year ago, powered by a 6.3% rise in domestic deposits.
However, global deposits declined by 0.3% from the previous quarter.