- Alexander Garcia
- 10 Jun, 2024
- Miami
Market indexes managed to climb higher after the morning doldrums as investors awaited the Fed's monetary policy decisions and May's inflation update.
Stocks struggled to find their footing in early trading on Monday following the benchmark index advance or more than 1% in the previous week.
The S&P 500 index and the Nasdaq Composite advanced 1.3% and 2.4%, respectively, in the previous week after the nonfarm payrolls surpassed the highest expectations.
Investors are hoping to get more insights into the policymakers' thinking as the Federal Reserve is set to announce its rate decisions and economic growth projections on Wednesday.
The Fed is expected to keep its interest rate range unrevised between 5.25% and 5.50%, and policymakers may provide clues about the timing and number of likely rate cuts later in the year.
Market participants have dialed down their rate-cut expectations from as high as four to only one after the Fed's meeting in September.
Investors are also looking forward to May's inflation data on Wednesday, which could provide additional insights on the strength of inflationary pressures and the future rate path.
The consumer price index is expected to hold steady at 3.4%, and core inflation is likely to edge slightly lower to 3.5%.
Last week, the S&P 500 index traded at a new intraday record high amid continued strength in semiconductor stocks powering artificial intelligence development.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.1% to 5,353.07, and the Nasdaq Composite rose 0.3% to 17,180.76.
The yield on 2-year Treasury notes edged higher to 4.89%, 10-year Treasury notes decreased to 4.46%, and 30-year Treasury bonds edged higher to 4.59%.
WTI crude oil increased $1.70 to $77.30 a barrel, and natural gas prices rose 13 cents to $3.05 a thermal unit.
Gold increased by $15.46 to $2,308.67 an ounce, and silver rose 52 cents to $29.66.
The dollar index, which weighs the U.S. currency against a basket of foreign currencies, edged lower to 105.24.
U.S. Stock Movers
Nvidia edged down 0.2% to $120.10 after the advanced chipmaker traded for the first time, reflecting a 10-for-1 stock split.
Nvidia's market cap crossed the $3 trillion mark for the first time in Friday's trading after investors bid up the stock by 10% in the previous week.
GameStop declined 4.5% to $27.07, and the video game retailer extended losses following the roller-coaster trading in the previous week.
Meme stock plunged in Friday's trading after the company announced another stock offering and said sales plunged in its latest quarter.
Trader and meme stock influencer Keith Gill, also known by his screen name "Roaring Kitty," announced in his first ever live stream on X and YouTube in a few years that he did not have institutional investors.
Previously, Gill shared a screenshot of his holding on GameStop that showed a market worth of $116 million.
KKR, GoDaddy, and CrowdStrike advanced after the S&P Dow Jones Indices plans to include these three stocks in the S&P 500 index, replacing Robert Half, Comerica, and Illumina.
KKR jumped 8.8% to $106.56, GoDaddy advanced 2.2% to $142.40, and CrowdStrike Holdings gained 7.7% to $376.60.
Robert Half declined 0.4%, Illumina fell 5.5%, and Comerica dropped 2.4%.
Far-right Parties Make Significant Gains In EU Elections
European markets faced heavy selling pressure in Monday's trading, and the euro fell to a one-month low after far-right parties gained ground in European Union elections.
Benchmark indexes in Frankfurt, Paris, and London declined sharply amid fresh political uncertainty in the region, as far-right parties made sizable gains in Germany, France, Austria, and Italy.
French President Emmanuel Macron's Renaissance party suffered heavy defeat from the far-right National Rally party, and German Chancellor Olaf Scholz's center-left Social Democrats dropped to third place behind the extreme right-wing party Alternative for Germany.
Amid a wave of anti-establishment on the continent, leading mainstream parties held on to the majority of the 720-member European Parliament on Sunday but suffered heavy defeats from the rise of far-right parties.
The National Rally Party is expected to win 33% of the incoming European Union parliament, more than double the 15% vote by Macron's Renaissance party, forcing the French president Macron to dissolve parliament.
French President Macron acknowledged the defeat and showed his commitment to democratic ideals by calling the snap election a risky move that could make his remaining three years of presidency ineffective.
“I’ve heard your message and your concerns, and I won’t leave them unanswered," and Macron added, "France needs a clear majority to act in serenity and harmony."
Provisional results of the European Parliament, the legislative branch of the 27-member trade bloc, showed Social Democrats losing 4 seats to 135, Christian Democrats gaining 13 seats to 189, and the pro-business Renew group down 19 to 83.
Georgia Meloni's Brothers Party in Italy won 28% of the vote, surpassing the 26% it won in the national election in 2022.
On the economic front, investors are looking forward to several key indicators this week.
In Germany, wholesale prices are expected to advance for the third month in a row, and industrial production is expected to rise in the eurozone and Italy but decline in the U.K. after rising in the previous two months in a row.
Investors are also looking forward to the release of international trade balances in the Euro Area.
Europe Indexes and Yields
The DAX index decreased by 0.8% to 18,406.18; the CAC-40 index fell by 2.0% to 7,841.65; and the FTSE 100 index declined by 0.4% to 8,216.71.
The yield on 10-year German bonds edged higher to 2.65%. French bonds inched higher to 3.20%; the UK gilts edged higher to 4.31%; and Italian bonds inched lower to 4.03%.
The euro edged higher to $1.073; the British pound inched higher to $1.269; and the U.S. dollar weakened to 89.67 Swiss cents.
Brent crude decreased $0.06 to $79.61 a barrel, and the Dutch TTF natural gas fell by €0.71 to €32.50 per MWh.
Europe Stock Movers
French banks declined following the broad market fall following the surprise legislative snap election announcement by French President Emmanuel Macron.
Credit Agricole declined 4.4% to €14.0, BNP Paribas dropped 4.8% to €63.21, and Societe Generale fell 7.3% to €24.12.
Airbus SE decreased 1.1% to €148.34 after the defense company and plane maker's satellite unit received an order to launch satellites from an entity controlled by the U.A.E.
Pennon Group plc declined 1.2% to 589.50 pence after the British water company announced the appointment of David Sproul as chairman, replacing Gill Rider, after the company's annual general meeting on July 24.
Tristel plc rose 2% to 438.50 pence, and the maker of infection prevention products appointed Matthew Sassone as chief executive officer effective September 2.
Japan's GDP Decline Was Less than Previously Expected
Benchmark indexes in Tokyo advanced in Monday's trading, and investors reviewed two key economic reports.
The Nikkei 225 and the Topix gained as much as 1% after the GDP growth decline was less than previously expected and the current account surplus rose more than expected.
Japan's economy shrank 1.8% in the first quarter, less than the previously estimated decline of 2.0% by the government.
The revision was largely because of a smaller decline in private investment of 0.4%, less than 0.5% in the previous quarter.
On a quarterly basis, Japan's GDP decline of 0.5% was unrevised, according to the data released by the Cabinet Office.
Japan's GDP contracted as consumption and exports declined from the previous quarter, and the weaker yen contributed to a higher import bill for energy and other raw materials.
Current Account Surplus Rebounded
Japan's current account surplus rose more than expected to 2.05 trillion yen, an increase of 8.2% from a year ago, according to the Ministry of Finance.
However, the current account surplus decreased from 3.399 trillion yen in March.
Japan Stock Movers
The Nikkei 225 Stock Average increased 0.9% to 39,038.16, and the Topix index advanced 1% to 2,782.49.
Tech stocks led the gainers in Tokyo following the late rebound in Friday's trading in New York.
Tokyo Electron, Socionext, Advantest, Screen Holdings, and SoftBank gained between 0.3% and 4%.
Banks were among the leading gainers in Monday's trading.
Mitsubishi UFJ, Sumitomo Mitsubishi, and Mizuho Financial Group added between 0.5% and 0.7%.
Hitachi, Sumitomo Pharma, Sumitomo Electric, and Dai-Ichi Life gained more than 3%.
Kao Corp., the maker of chemicals and cosmetics, declined 4.5% to ¥6,740.0.
- Scott Peters
- 10 Jun, 2024
- New York City
Nvidia edged down 0.2% to $120.10 after the advanced chipmaker traded for the first time, reflecting a 10-to-1 stock split.
Nvidia's market cap crossed the $3 trillion mark for the first time in Friday's trading after investors bid up the stock by 10% in the previous week.
GameStop declined 4.5% to $27.07, and the video game retailer extended losses following the roller-coaster trading in the previous week.
Meme stock plunged in Friday's trading after the company announced another stock offering and said sales plunged in its latest quarter.
Trader and meme stock influencer Keith Gill, also known by his screen name "Roaring Kitty," announced in his first ever live stream on X and YouTube in a few years that he did not have institutional investors.
Previously, Gill shared a screenshot of his holding on GameStop that showed a market worth of $116 million.
KKR, GoDaddy, and CrowdStrike advanced after the S&P Dow Jones Indices plans to include these three stocks in the S&P 500 index, replacing Robert Half, Comerica, and Illumina.
KKR jumped 8.8% to $106.56, GoDaddy advanced 2.2% to $142.40, and CrowdStrike Holdings gained 7.7% to $376.60.
Robert Half declined 0.4%, Illumina fell 5.5%, and Comerica dropped 2.4%.
- Barry Adams
- 10 Jun, 2024
- New York City
Stocks struggled to find their footing in early trading on Monday as benchmark indexes jumped more than 1% in the previous week.
The S&P 500 index and the Nasdaq Composite advanced 1.3% and 2.4%, respectively, in the previous week after the nonfarm payrolls surpassed the highest expectations.
Investors are hoping to get more insights into the policymakers' thinking as the Federal Reserve is set to announce its rate decisions and economic growth projections on Wednesday.
The Fed is expected to keep its interest rate range unrevised between 5.25% and 5.50%.
Investors are also looking forward to May's inflation data on Wednesday, which could provide additional insights on the strength of inflationary pressures and the future rate path.
The consumer price index is expected to hold steady at 3.4%, and core inflation is likely to edge slightly lower to 3.5%.
Last week, the S&P 500 index traded at a new intraday record high amid continued strength in semiconductor stocks powering artificial intelligence development.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.1% to 5,358.77, and the Nasdaq Composite fell 0.01% to 17,176.77.
The yield on 2-year Treasury notes edged higher to 4.89%, 10-year Treasury notes decreased to 4.46%, and 30-year Treasury bonds edged higher to 4.59%.
WTI crude oil increased $0.46 to $76.01 a barrel, and natural gas prices rose 14 cents to $3.06 a thermal unit.
Gold increased by $12.79 to $2,305.78 an ounce, and silver rose 31 cents to $29.78.
The dollar index, which weighs the U.S. currency against a basket of foreign currencies, edged lower to 105.26.
U.S. Stock Movers
Nvidia edged down 0.2% to $120.10 after the advanced chipmaker traded for the first time, reflecting a 10-to-1 stock split.
Nvidia's market cap crossed the $3 trillion mark for the first time in Friday's trading after investors bid up the stock by 10% in the previous week.
GameStop declined 4.5% to $27.07, and the video game retailer extended losses following the roller-coaster trading in the previous week.
Meme stock plunged in Friday's trading after the company announced another stock offering and said sales plunged in its latest quarter.
Trader and meme stock influencer Keith Gill, also known by his screen name "Roaring Kitty," announced in his first ever live stream on X and YouTube in a few years that he did not have institutional investors.
Previously, Gill shared a screenshot of his holding on GameStop that showed a market worth of $116 million.
KKR, GoDaddy, and CrowdStrike advanced after the S&P Dow Jones Indices plans to include these three stocks in the S&P 500 index, replacing Robert Half, Comerica, and Illumina.
KKR jumped 8.8% to $106.56, GoDaddy advanced 2.2% to $142.40, and CrowdStrike Holdings gained 7.7% to $376.60.
Robert Half declined 0.4%, Illumina fell 5.5%, and Comerica dropped 2.4%.
- Inga Muller
- 10 Jun, 2024
- Frankfurt
European markets dropped sharply amid fresh political uncertainties in the region after the rise of far-right parties in the European Union election on Sunday.
The DAX index decreased by 0.8% to 18,406.18; the CAC-40 index fell by 2.0% to 7,841.65; and the FTSE 100 index declined by 0.4% to 8,216.71.
The yield on 10-year German bonds edged higher to 2.65%. French bonds inched higher to 3.20%; the UK gilts edged higher to 4.31%; and Italian bonds inched lower to 4.03%.
French banks declined following the broad market fall following the surprise legislative snap election announcement by French President Emmanuel Macron.
Credit Agricole declined 4.4% to €14.0, BNP Paribas dropped 4.8% to €63.21, and Societe Generale fell 7.3% to €24.12.
Airbus SE decreased 1.1% to €148.34 after the defense company and plane maker's satellite unit received an order to launch satellites from an entity controlled by the U.A.E.
Pennon Group plc declined 1.2% to 589.50 pence after the British water company announced the appointment of David Sproul as chairman, replacing Gill Rider, after the company's annual general meeting on July 24.
Tristel plc rose 2% to 438.50 pence, and the maker of infection prevention products appointed Matthew Sassone as chief executive officer effective September 2.
- Bridgette Randall
- 10 Jun, 2024
- Frankfurt
European markets faced heavy selling pressure in Monday's trading, and the euro fell to a one-month low after far-right parties gained ground in European Union elections.
Benchmark indexes in Frankfurt, Paris, and London declined sharply amid fresh political uncertainty in the region, as far-right parties made sizable gains in Germany, France, Austria, and Italy.
French President Emmanuel Macron's Renaissance party suffered heavy defeat from the far-right National Rally party, and German Chancellor Olaf Scholz's center-left Social Democrats dropped to third place behind the extreme right-wing party Alternative for Germany.
Amid a wave of anti-establishment on the continent, leading mainstream parties held on to the majority of the 720-member European Parliament on Sunday but suffered heavy defeats from the rise of far-right parties.
The National Rally Party is expected to win 33% of the incoming European Union parliament, more than double the 15% vote by Macron's Renaissance party.
French President Macron acknowledged the defeat and showed his commitment to democratic ideals by calling the snap election a risky move that could make his remaining three years of presidency ineffective.
“I’ve heard your message and your concerns, and I won’t leave them unanswered," and Macron added, "France needs a clear majority to act in serenity and harmony."
Provisional results of the European Parliament, the legislative branch of the 27-member trade bloc, showed Social Democrats losing 4 seats to 135, Christian Democrats gaining 13 seats to 189, and the pro-business Renew group down 19 to 83.
Georgia Meloni's Brothers Party in Italy won 28% of the vote, surpassing the 26% it won in the national election in 2022.
On the economic front, investors are looking forward to several key indicators this week.
In Germany, wholesale prices are expected to advance for the third month in a row, and industrial production is expected to rise in the eurozone and Italy but decline in the U.K. after rising in the previous two months in a row.
Investors are also looking forward to the release of international trade balances in the Euro Area.
Europe Indexes and Yields
The DAX index decreased by 0.8% to 18,406.18; the CAC-40 index fell by 2.0% to 7,841.65; and the FTSE 100 index declined by 0.4% to 8,216.71.
The yield on 10-year German bonds edged higher to 2.65%. French bonds inched higher to 3.20%; the UK gilts edged higher to 4.31%; and Italian bonds inched lower to 4.03%.
The euro edged higher to $1.073; the British pound inched higher to $1.269; and the U.S. dollar weakened to 89.67 Swiss cents.
Brent crude decreased $0.06 to $79.61 a barrel, and the Dutch TTF natural gas fell by €0.71 to €32.50 per MWh.
Europe Stock Movers
French banks declined following the broad market fall following the surprise legislative snap election announcement by French President Emmanuel Macron.
Credit Agricole declined 4.4% to €14.0, BNP Paribas dropped 4.8% to €63.21, and Societe Generale fell 7.3% to €24.12.
Airbus SE decreased 1.1% to €148.34 after the defense company and plane maker's satellite unit received an order to launch satellites from an entity controlled by the U.A.E.
Pennon Group plc declined 1.2% to 589.50 pence after the British water company announced the appointment of David Sproul as chairman, replacing Gill Rider, after the company's annual general meeting on July 24.
Tristel plc rose 2% to 438.50 pence, and the maker of infection prevention products appointed Matthew Sassone as chief executive officer effective September 2.
- Akira Ito
- 10 Jun, 2024
- Tokyo
Benchmark indexes in Tokyo advanced in Monday's trading, and investors reviewed two key economic reports.
The Nikkei 225 and the Topix gained as much as 1% after the GDP growth decline was less than previously expected and the current account surplus rose more than expected.
Japan's economy shrank 1.8% in the first quarter, less than the previously estimated decline of 2.0% by the government.
The revision was largely because of a smaller decline in private investment of 0.4%, less than 0.5% in the previous quarter.
On a quarterly basis, Japan's GDP decline of 0.5% was unrevised, according to the data released by the Cabinet Office.
Japan's GDP contracted as consumption and exports declined from the previous quarter, and the weaker yen contributed to a higher import bill for energy and other raw materials.
In other economic news, Japan's current account surplus rose more than expected to 2.05 trillion yen, an increase of 8.2% from a year ago, according to the Ministry of Finance.
However, the current account surplus decreased from 3.399 trillion yen in March.
Japan Stock Movers
The Nikkei 225 Stock Average increased 0.9% to 39,038.16, and the Topix index advanced 1% to 2,782.49.
Tech stocks led the gainers in Tokyo following the late rebound in Friday's trading in New York.
Tokyo Electron, Socionext, Advantest, Screen Holdings, and SoftBank gained between 0.3% and 4%.
Banks were among the leading gainers in Monday's trading.
Mitsubishi UFJ, Sumitomo Mitsubishi, and Mizuho Financial Group added between 0.5% and 0.7%.
Hitachi, Sumitomo Pharma, Sumitomo Electric, and Dai-Ichi Life gained more than 3%.
Kao Corp., the maker of chemicals and cosmetics, declined 4.5% to ¥6,740.0.
- Arun Goswami
- 10 Jun, 2024
- Mumbai
Market indexes on Dalal Street struggled to advance, and the rupee and the yield on government bonds held firm.
The Reserve Bank of India held its interest rate steady and lifted its GDP growth outlook for the current year.
The Sensex index increased by 0.3% to 75,288.17, and the Nifty index rose by 0.3% to 22,897.85.
On the Mumbai stock exchange, 181 stocks traded at their 52-week highs, and 16 stocks traded at their 52-week lows.
Gulshan Polyols decreased 0.9% to ₹187.0, and the company said its ethanol production plant with a capacity of 250 kiloliters per day in Assam met its quality control requirements in the trial run.
The company is targeting launching commercial production in the next few weeks after the completion of quality control requirements for oil marketing companies.
Magnum Ventures jumped 0.5% to ₹49.03, and the company said it plans to shut down its paper mill for one month for regular maintenance and repair work.
Gland Pharma increased 0.5% to ₹1,868.0, and the company appointed Srinivas Sadu as Executive Chairman and CEO of the company.
Samvardhana Motherson jumped 2.4% to ₹160.51, and Moody's Ratings upgraded the long-term debt rating outlook for the company's two international subsidiaries to "Baa3" from "Ba1."
Mphasis Ltd. dropped 4% to ₹2,373.70, and a report suggested that the U.S.-based private equity group Blackstone is set to sell at least a 10% stake in the company with a base price of ₹2,350 per share.
KEC International advanced 4.7% to ₹803.20, and the power transmission and distribution engineering company secured new orders worth 1,061 crore, totaling ₹3,000 crore in the year so far.
EIH Associated Hotels jumped 14.5% to ₹823.0, and the luxury hotel chain operator scheduled a board meeting to consider the bonus share offering.
- Scott Peters
- 07 Jun, 2024
- New York City
GameStop declined 18% to $37.72 after the video game retailer posted a larger-than-expected decline in sales in its latest quarter.
Net sales in the first quarter dropped 29% to $881.8 million from $1.23 million, net loss shrank to $32.3 million from $50.5 million, and diluted loss per share shrank to 11 cents from 17 cents a year ago.
The retailer said it may sell an additional 75 million shares on top of the 45 million shares it sold while raising $900 million in May.
The company decided to bring forward the release of its quarterly results because social media influencer and company investor Keith Gill has scheduled a YouTube livestream to discuss his investment in the company.
Vail Resorts dropped 13% to $168.92 after the ski resort operator reported weaker-than-expected fiscal third quarter results.
Revenue in the quarter ending in April increased to $1.28 billion from $1.24 billion, net income rose to $362 million from $325 million, and diluted earnings per share increased to $9.54 from $8.18 a year ago.
The company declared a quarterly cash dividend of $2.22 per share payable on July 10 to shareholders on record on June 25.
The company also repurchased 0.3 million of its own shares in the quarter at an average price of $217 for a total of $75 million, increasing the total purchase to 0.6 million for $125 million in the current fiscal year.
On May 2, the company closed on its acquisition of Crans-Montana Mountain Resort in Switzerland, the company's second ski resort in Europe.
- Brian Turner
- 07 Jun, 2024
- New York City
Nonfarm payrolls increased by 272,000 in May from the downwardly revised 165,000 in April, higher than the monthly average of 232,000 in the last 12 months.
In May, employment continued to trend up in several industries, led by health care; government; leisure and hospitality; and professional, scientific, and technical services.
Average hourly wages increased 0.4%, or 14 cents, to $34.91 and edged up 4.1% over the last year, the U.S. Bureau of Labor Statistics reported Friday.
Both the unemployment rate, at 4.0%, and the number of unemployed people, at 6.6 million, changed little in May; a year ago, the jobless rate was 3.7%, and the number of unemployed people was 6.1 million.
The jobless rate increased despite the surge in employment in the last several months because the expanding labor market is attracting more people to look for jobs, increasing the jobless rate.
Both the labor force participation rate, at 62.5%, and the employment-population ratio, at 60.1%, barely budged in May.
These measures showed little change over the year.
- Barry Adams
- 07 Jun, 2024
- New York City
Major averages on Wall Street declined after the U.S. economy added sharply higher-than-expected jobs in May.
The S&P 500 index and the Nasdaq Composite declined more than 0.2% after the hotter-than-expected payroll dashed all hopes of the Federal Reserve cutting rate at its next meeting.
The Federal Reserve is most likely to hold rates steady after the two-day meeting ending on June 12.
Nonfarm payrolls increased by 272,000 in May from the downwardly revised 165,000 in April, higher than the monthly average of 232,000 in the last 12 months.
In May, employment continued to trend up in several industries, led by health care; government; leisure and hospitality; and professional, scientific, and technical services.
Average hourly wages increased 0.4%, or 14 cents, to $34.91 and edged up 4.1% over the last year.
Both the unemployment rate, at 4.0%, and the number of unemployed people, at 6.6 million, changed little in May; a year ago, the jobless rate was 3.7%, and the number of unemployed people was 6.1 million.
The jobless rate increased despite the surge in employment in the last several months because the expanding labor market is attracting more people to look for jobs, increasing the jobless rate.
Both the labor force participation rate, at 62.5%, and the employment-population ratio, at 60.1%, barely budged in May.
These measures showed little change over the year.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.1% to 5,358.77, and the Nasdaq Composite fell 0.01% to 17,176.77.
The yield on 2-year Treasury notes edged lower to 4.75%, 10-year Treasury notes decreased to 4.31%, and 30-year Treasury bonds edged higher to 4.46%.
WTI crude oil increased $0.01 to $74.08 a barrel, and natural gas prices rose 9 cents to $2.84 a thermal unit.
Gold increased by $2.21 to $2,357.08 an ounce, and silver rose 31 cents to $30.33.
The dollar index, which weighs the U.S. currency against a basket of foreign currencies, edged lower to 104.32.
U.S. Stock Movers
GameStop declined 18% to $37.72 after the video game retailer posted a larger-than-expected decline in sales in its latest quarter.
Net sales in the first quarter dropped 29% to $881.8 million from $1.23 million, net loss shrank to $32.3 million from $50.5 million, and diluted loss per share shrank to 11 cents from 17 cents a year ago.
The retailer said it may sell an additional 75 million shares on top of the 45 million shares it sold while raising $900 million in May.
The company decided to bring forward the release of its quarterly results because social media influencer and company investor Keith Gill has scheduled a YouTube livestream to discuss his investment in the company.
Vail Resorts dropped 13% to $168.92 after the ski resort operator reported weaker-than-expected fiscal third quarter results.
Revenue in the quarter ending in April increased to $1.28 billion from $1.24 billion, net income rose to $362 million from $325 million, and diluted earnings per share increased to $9.54 from $8.18 a year ago.
The company declared a quarterly cash dividend of $2.22 per share payable on July 10 to shareholders on record on June 25.
The company also repurchased 0.3 million of its own shares in the quarter at an average price of $217 for a total of $75 million, increasing the total purchase to 0.6 million for $125 million in the current fiscal year.
On May 2, the company closed on its acquisition of Crans-Montana Mountain Resort in Switzerland, the company's second ski resort in Europe.
- Inga Muller
- 07 Jun, 2024
- Frankfurt
European markets headed lower, and investors digested a flood economic releases on Friday.
Germany's trade surplus soared and France's trade deficit widened in April, and German industrial production dropped at a slower pace in April.
UK home prices accelerated for the second month in a row.
The DAX index decreased by 0.8% to 18,498.81; the CAC-40 index fell by 0.7% to 7,983.86; and the FTSE 100 index declined by 0.5% to 8,241.45.
The yield on 10-year German bonds edged higher to 2.57%. French bonds inched higher to 3.07%; the UK gilts edged higher to 4.19%; and Italian bonds inched lower to 3.91%.
Temenos AG rallied 2.7% to CHF 60.0 after the Swiss software company announced a stock repurchase plan.
C&C Group declined 7.5% to 157.28 pence, and the company said its chief executive officer resigned from the company following the discovery of accounting errors.
Rexel SA decreased 0.5% to €26.95 after the distributor of electrical and ventilation products released its financial objectives ahead of its meeting with investors in Paris.
Bellway plc gained 1.7% to 2,828.0 pence after the home builder lifted its annual average selling price forecast.
Mining stocks continued to slide for the second consecutive week after China's import growth slowed to 1.8% in May.
Anglo American fell 0.9% to 2,391.0 pence, Glencore fell 1.7% to 469.20 pence, and Antofagasta dropped 2.4% to 2,161.0 pence.
- Bridgette Randall
- 07 Jun, 2024
- Frankfurt
A day after the European Central Bank delivered its first rate cut for its three policy rates in eight years, market indexes turned lower on the uncertainty of future rate cuts.
Benchmark indexes in Paris, Frankfurt, and London declined after investors digested a flood of economic data.
Germany's trade surplus soared from a year ago in April after exports increased and imports declined, while France's trade deficit increased after imports rose faster than exports, two separate reports showed.
France's trade deficit in April increased to Є7.6 billion from Є5.4 billion in March, but was lower than Є9.9 billion a year ago, the statistical agency INSEE reported Friday.
Germany's industrial production dropped at a slower pace in April, Destatis reported Friday.
Germany's Goods Trade Surplus Soared In April
Germany's goods exports rose 1.6% from a year ago to Є136.5 billion, imports declined 0.6% to Є114.5 billion, and trade surplus soared to Є22.1 billion from Є18.7 billion a year ago.
Exports to the member states of the European Union increased to Є74.1 billion, and Є62.4 billion were exported to countries outside of the EU.
Imports from the member states of the European Union were 61.3 billion, and 53.2 billion were imported from the rest of the world.
Exports to the U.S. decreased 1.2% from the previous month to Є14.2 billion, to China increased 0.8% to Є12.8 billion, and to the U.K. rose 15.4% to Є7.4 billion.
Most imports to Germany originated from China, the U.S., and the U.K.
Imports from the People's Republic of China decreased 7.8% to Є12.8 billion, from the U.S. fell 1.0% to Є7.5 billion, and from the U.K. increased 8.8% to Є3.0 billion.
In 2024, China replaced the U.S. as Germany's largest trading partner.
UK Home Price Growth Accelerated In May
The UK home growth increase accelerated for the second month in a row in May, Halifax said in its latest report.
The Halifax House Price Index increased 1.5% from a year ago in May, after rising 1.1% in April, and advanced for the sixth month in a row.
The average property price in the U.K. edged slightly lower to £288,688 compared to £288,862 in April and £287,477 a year ago.
“Market activity remained resilient throughout the spring months, supported by strong nominal wage growth and some evidence of an improvement in confidence about the economic outlook.
This has been reflected in a broadly stable picture in terms of property price movements, with the average cost of a property little changing over the last three months," said Amanda Bryden, Head of Mortgages, Halifax.
Europe Indexes and Yields
The DAX index decreased by 0.8% to 18,498.81; the CAC-40 index fell by 0.7% to 7,983.86; and the FTSE 100 index declined by 0.5% to 8,241.45.
The yield on 10-year German bonds edged higher to 2.57%. French bonds inched higher to 3.07%; the UK gilts edged higher to 4.19%; and Italian bonds inched lower to 3.91%.
The euro edged higher to $1.089; the British pound inched higher to $1.279; and the U.S. dollar weakened to 88.95 Swiss cents.
Brent crude increased $0.27 to $80.14 a barrel, and the Dutch TTF natural gas rose by €0.10 to €33.24 per MWh.
Europe Stock Movers
Temenos AG rallied 2.7% to CHF 60.0 after the Swiss software company announced a stock repurchase plan.
C&C Group declined 7.5% to 157.28 pence, and the company said its chief executive officer resigned from the company following the discovery of accounting errors.
Rexel SA decreased 0.5% to €26.95 after the distributor of electrical and ventilation products released its financial objectives ahead of its meeting with investors in Paris.
Bellway plc gained 1.7% to 2,828.0 pence after the home builder lifted its annual average selling price forecast.
Mining stocks continued to slide for the second consecutive week after China's import growth slowed to 1.8% in May.
Anglo American fell 0.9% to 2,391.0 pence, Glencore fell 1.7% to 469.20 pence, and Antofagasta dropped 2.4% to 2,161.0 pence.
- Akira Ito
- 07 Jun, 2024
- Tokyo
Benchmark indexes in Tokyo traded in a tight range as investors digested the latest update on household spending and foreign reserves.
The Nikkei 225 and the Topix ranged between small gains and losses amid weak market sentiment, and foreign investors stayed on the sidelines ahead of the release of the U.S. nonfarm payroll data later in the day.
More than 55% of daily trading in Tokyo originates from foreign institutions.
On the economic front, Japan's household spending in April rose 3.4% in nominal terms and edged up 0.5% in real terms after adjusting for inflation.
Real household spending rose for the first time since February 2022, after wage gains accelerated and broadened to small and medium-sized enterprises.
Japan Stock Movers
The Nikkei 225 Stock Average decreased 0.3% to 38,642.35, and the Topix index fell 0.2% to 2,752.17.
For the week, the Nikkei 225 index is set to close down 0.7% and the Topix index to decline 1.8%.
Tech stocks struggled in Friday's trading, and Tokyo Electron, Advantest, and Screen Holdings fell between 0.1% and 1.7%.
However, Lasertec soared 4.5% to ¥36,220.0.
The Japanese yen traded in a tight range and recovered to 155.65 against the U.S. dollar, and the yield on the 10-year Japanese government bond hovered near 0.97%.
Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho Financial declined 1%.
Shionogi & Co. plunged 12.9% to ¥36,220.0 after the company's latest report detailing its pipeline of research and development projects disappointed investors.
- Li Chen
- 07 Jun, 2024
- Hong Kong
Better-than-expected exports in May failed to sway investors, as the focus remained on the health of the domestic economy.
Market indexes in Shanghai and Hong Kong traded down after the increase in imports slowed sharply, indicating weak domestic demand.
For the week, the CSI index is set to close down 0.7%, and the Hang Seng index is expected to close up 0.1%.
China Trade Surplus Advances to a 3-Month High
China's export growth accelerated in May to 7.6% to $302.4 billion, according to data released by the customs agency on Friday.
Imports growth slowed to 1.8% in May from 8.4% in April, signaling ongoing domestic market weakness led by property market malaise.
Economists attributed the sharp jump in exports to the low base in the previous year and sustained demand in the ASEAN member countries.
Exports accelerated from the annual decline of 7.5% in March to a 1.5% increase in April.
China's exports reversed the decline of 7.5% in the corresponding month of the year.
China's monthly data have been volatile in recent years as the second-largest economy battles on several fronts, including rising geopolitical tensions, severe margin pressures, and shifting supply chain linkages.
China's trade surplus soared to a three-month high of $82.6 billion in May from $72.4 billion in April and $65.6 billion in the corresponding month a year ago.
Exports to the Association of Southeast Asian Nations soared 22.5%, to the U.S. by 3.6%, but to Russia they fell by 2%.
Passenger car shipments soared 16.6%, integrated circuits advanced 28.5%, and hi-tech products rose 8.1%.
China Stock Movers
The CSI 300 index decreased 0.7% to 3,566.50, and the Hang Seng index declined 0.2% to 18,399.04.
Nio declined 7.5% to HK$38.25 after the electric vehicle maker posted a loss in the first quarter, indicating a brutal price war.
Li Auto declined 2.5% to HK$76.95, BYD decreased 1.2% to HK$226.40, and Xiaomi fell 2.4% to HK$17.54.
Contemporary Amperex Technology, the largest maker of lithium-ion batteries for electric vehicles, declined 7.1% to ¥190.24 in Shenzhen trading on the worry that the company is likely to face U.S. sanctions.
Three companies completed their initial public offerings, listing two on the Hong Kong Stock Exchange and one on the Shenzhen Stock Exchange.
Jiangxi Rimag Group inched up 3% to HK$15.39, Easu Technology Holdings advanced 73% from its IPO price to HK$9.97, and Ningbo Lian Technology soared 425% to 148.96 yuan in Shenzhen.