- Barry Adams
- 05 Dec, 2023
- New York City
Benchmark indexes rested for the second day in a row as investors reassessed the economic outlook and the appropriate level of interest rates in early 2024.
Investors stayed on the sidelines ahead of the widely anticipated rate-pause decision next week, but the ongoing debate raged on Wall Street centered on the direction of interest rates.
One group of investors is supporting the view that interest rates are near peak rates and the Federal Reserve is more likely to cut rates as early as the second quarter of 2024.
The other group of investors is looking for the central bank to hold higher rates for longer and worries that despite the eleven rate hikes between March 2022 and June 2023, prices are still rising faster than the 2% target rate set by the Federal Reserve.
Federal Reserve Chairman Jerome Powell stressed last Friday that talks of rate cuts are "premature" and inflation has a long way to go.
The Federal Reserve is engaged in a delicate balancing act of keeping economic growth intact while lowering inflation to 2% with a minimal impact on the labor market.
Overall inflation declined from a high of 9% in late 2022 to below 3% in recent months, largely because of the decline in energy prices and not because of multiple rate hikes by the central bank.
U.S. Indexes and Yields
The S&P 500 index declined 0.2% to 4,565.03, and the Nasdaq Composite decreased 0.3% to 14,240.12.
The yield on 2-year Treasury notes increased to 4.63%, 10-year Treasury notes inched lower to 4.23%, and 30-year Treasury bonds decreased to 4.39%.
Crude oil decreased $0.04 to $72.98 a barrel, and natural gas prices rose 2 cents to $2.71 a thermal unit.
Gold decreased $4.15 to $2,025.87 an ounce on the expectation of a decline in interest rates as early as in the second quarter of 2024 and a weakening of the U.S. dollar.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 103.79.
U.S. Stock Movers
Gitlab soared 14.2% to $60.44 after the software developer reported better-than-expected quarterly results and the company reported adjusted operating profit for the first time.
Lands End rose 1.5% after dropping as much as 9% to $6.75 after the apparel retailer reported weaker-than-expected quarterly results.
J.M. Smucker advanced 2.6% to $115.34, and the stock lacked direction after the food maker lowered its annual expectations after revenue plunged 12% from a year ago.
The company tightened the upper end of its comparable sales estimate and lowered its view of free cash flow and adjusted earnings per share.
- Inga Muller
- 05 Dec, 2023
- Frankfurt
European stocks advanced and extended the previous three weeks' gains after rate hike anxieties.
The DAX index increased 0.3% to 16,446.07, the CAC-40 index rose 0.4% to 7,359.99, and the FTSE 100 index decreased 0.3% to 7,490.18.
The yield on 10-year German bonds decreased to 2.30%; French bonds traded lower to 2.86%; the UK gilts declined to 4.14%; and Italian bonds inched lower to 4.04%.
Nokia declined 8.8% to €2.75 after AT&T said it plans to use telecom technology developed by the rival Ericsson.
The ORAN technology developed by Ericsson relies on cloud computing and non-proprietary and widely available equipment developed by other companies, cutting the cost significantly.
Ericsson increased 4.9% to kr56.97.
AT&T said its telecom network equipment spending could reach as much as $14 billion over the next five years.
Spotify Technology jumped 0.1% to €179.20 after soaring 15% in the previous session after the company said it plans to cut more staff.
Earlier in the year, the music streaming service provider announced its plan to cut 6% of its staff, followed by another 2% job cut in June and the latest 17%, or about 1,500 payrolls cut ahead of holidays.
Energy complex stocks traded mixed on worries about the OPEC+ production quota, and crude oil prices advanced 0.3%.
BP increased 0.2% to 472.85 pence, Shell fell 0.5% to Є29.89, Repsol gained 0.2% to €13.94, and TotalEnergies added 0.3% to €61.60.
Mining stocks declined after Moody's cut China's credit outlook to negative, citing the ongoing worries about the country's property sector.
Glencore declined 1.8% to 449.40 pence, Antofagasta fell 0.7% to 1,446.0 pence, and Anglo American declined 2.5% to 2,170.0 pence.
Luxury stocks in Paris rebounded for the second day in a row in the hopes that the sustained demand growth in the U.S. is likely to offset the demand weakness in China.
LVMH added 0.5% to €702.20, Kering fell 0.2% to €399.30, Richemont decreased 0.2% to CHF 110.35, and Salvatore Ferragamo advanced 0.2% to €11.77.
Automobile stocks traded mixed, and luxury vehicle makers were under pressure from the growing demand uncertainties in China and the negative impact of higher interest rates in 2024.
Volkswagen Group declined 0.4% to €107.44, Mercedes-Benz Group rose 0.4% to €60.75, BMW rose 0.5% to €96.59, Ferrari increased 0.8% to €329.50, and Renault dropped 0.9% to €35.87.
Financial stocks traded mixed after bond yields drifted lower and the euro and the British pound held firm against the U.S. dollar.
Barclays fell 2.5% to 139.52 pence, HSBC fell 1.0% to 597.60 pence, Deutsche Bank inched higher 0.01% to €11.54, UniCredit declined 0.4% to €25.11, Societe Generale advanced 0.6% to €23.22, and UBS Group fell 1.7% to CHF 24.36.
- Bridgette Randall
- 05 Dec, 2023
- Frankfurt
European markets inched to a four-month high, and investors debated the rate path and the economic health of the eurozone.
Benchmark indexes in Frankfurt and Paris advanced to a four-month high amid mixed worries about the European Central Bank's next move, energy price-driven inflation, and consumer spending.
On Monday. Germany reported a larger-than-expected trade surplus, and today France reported industrial production declining for the third month in a row.
French Industrial Production Eased In October
France's industrial production fell 0.3% in October from the previous month's upwardly revised 0.6% decline in September, the INSEE, the statistical office of France, reported Tuesday.
The weakness in mining, energy, and construction sector activities offset the slight rebound in manufacturing activities.
A year ago, industrial production rose 1.9% in October after falling 0.3% in September.
In other economic news, service sector activities in Spain and Italy shrank in October, two separate reports from S&P Global showed Tuesday.
The HCOB Italy Service PMI decreased to 49.5 in November, a decline for the fourth month in a row, but rose from a one-year low of 47.7 in October.
The HCOB Spain Service PMI eased to a three-month low of 49.8 in November from 50.0 in October.
Europe Indexes and Yields
The DAX index increased 0.3% to 16,446.07, the CAC-40 index rose 0.4% to 7,359.99, and the FTSE 100 index decreased 0.3% to 7,490.18.
The yield on 10-year German bonds decreased to 2.30%; French bonds traded lower to 2.86%; the UK gilts declined to 4.14%; and Italian bonds inched lower to 4.04%.
The euro traded lower to $1.083, the British pound inched lower to $1.263, and the U.S. dollar eased to 87.39 Swiss cents.
Brent crude increased $0.45 to $78.45 a barrel, and the Dutch TTF natural gas decreased by €0.23 to €49.88 per MWh.
Europe Stock Movers
Nokia declined 8.8% to €2.75 after AT&T said it plans to use telecom technology developed by Ericsson, which relies on cloud computing and non-proprietary off-shelf equipment developed by other companies.
Ericsson increased 4.9% to kr56.97.
AT&T said its telecom network equipment spending could reach as much as $14 billion over the next five years.
- Arun Goswami
- 05 Dec, 2023
- Mumbai
India stocks advanced for the second day this week after the ruling Bhartiya Janata Party won state elections in three populous states.
The Sensex index increased 121.96 points to 68,992.24, and the Nifty index rose 40.10 points to 20,731.45.
On the Mumbai stock exchange, 179 stocks traded at their 52-week highs and 14 stocks traded at their 52-week lows.
JSW Infrastructure soared 4.7% to ₹227.85 after the company's unit signed a deal with Shapoorji Pallonji Group Company to acquire 50% plus one share of PNP Maritime for ₹270 crore.
Brigade Enterprises increased 3.5% to ₹873.0 after the company signed a deal with land owners to develop a residential project in Kurubarahalli, Mysuru.
The company plans to build 400,000 square feet of residential space spread over four acres.
Gulshan Polyols gained 4.8% to ₹233.40 after the company won a ₹572 crore order to supply ethanol.
Shriram Properties rose 1.5% to ₹120.80, and the stock rebounded from morning losses after multiple block transactions.
Mahindra & Mahindra Financial fell 1.7% to ₹272.95 after the company said its net new loans in November increased 16% to ₹5,300 crore.
HCL Technologies declined 1.7% to ₹1,317.30, and the company's UK subsidiary agreed to sell its entire 49% stake in a joint venture with State Street International for $170 million.
- Arjun Pandit
- 05 Dec, 2023
- Mumbai
Stocks in India extended gains for the second day in a row this week following the results of state elections.
The Sensex index and the Nifty index advanced more than 0.4% on the hopes that the success of the BJP in state elections may help the ruling party in national elections in 2024.
In a broad-based rally, stocks advanced in financial, real estate, manufacturing, pharmaceutical, and government-controlled companies, which were among the leading gainers.
In overseas trading, market indexes rested in overnight trading in New York after rallying for five consecutive weeks, but indexes in Europe advanced.
Gold drifted lower from its record high reached in Friday's trading, and crude oil traded down on the uncertainties related to the implementation of the latest production quota agreed by the OPEC+ members.
Closer to home, investors are anticipating the Reserve Bank of India to hold interest rates and drain financial liquidity on Friday after the last policy meeting of 2023.
India Indexes and Yields
The Sensex index increased 121.96 points to 68,992.24, and the Nifty index rose 40.10 points to 20,731.45.
On the Mumbai stock exchange, 179 stocks traded at their 52-week highs and 14 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds edged up to 7.27%, and the Indian rupee weakened to ₹83.38 against the U.S. dollar.
The gold price increased by 0.4% to ₹62,615 per ten grams, and silver advanced by 0.09% to ₹76,235 per kilo.
Crude oil decreased by 0.6% to ₹6,120 per barrel, and natural gas rose by 0.7% to ₹225.50 per thermal unit.
India Stock Movers
JSW Infrastructure soared 4.7% to ₹227.85 after the company's unit signed a deal with Shapoorji Pallonji Group Company to acquire 50% plus one share of PNP Maritime for ₹270 crore.
Brigade Enterprises increased 3.5% to ₹873.0 after the company signed a deal with land owners to develop a residential project in Kurubarahalli, Mysuru.
The company plans to build 400,000 square feet of residential space spread over four acres.
Gulshan Polyols gained 4.8% to ₹233.40 after the company won a ₹572 crore order to supply ethanol.
Shriram Properties rose 1.5% to ₹120.80, and the stock rebounded from morning losses after multiple block transactions.
- Barry Adams
- 04 Dec, 2023
- New York City
Market indexes fell on Monday after rising for five weeks in a row amid positive sentiment and optimism about the interest rate path, which met the worries of stretched valuations.
The S&P 500 index and the Nasdaq Composite declined after two popular indexes advanced for five consecutive weeks in a row, and investors worried that stock valuations were running ahead of market fundamentals.
In economic news, factory orders declined 3.6% in October after rising for two months in a row, the U.S. Census Bureau reported Monday.
New orders for all manufactured goods increased by 0.5% from a year ago, but durable goods orders fell 5.4% from the previous month and rose 4.0% from a year ago.
Orders for manufactured goods excluding transportation declined 1.2%, and orders excluding defense dropped 4.2% from the previous month, fell 1.4%, and rose 0.2% from a year ago.
Volatile transportation orders declined 14.7% from the previous month but rose 11.1% from a year ago.
On Friday, the S&P 500 index closed at a new 2023 high and surpassed the high seen in March 2022 after investors supported the view that interest rates are near peak rates and the Federal Reserve may begin to cut rates in early 2024.
Federal Reserve Chairman Jerome Powell stressed that talks of rate cuts are "premature," but investors still bid up stocks in anticipation of another rate pause decision by policymakers at the end of a two-day meeting on December 13.
Market participants widely believe that interest rates are likely to stay on hold following the recent string of inflation data suggesting a steady decline over the last eight months, largely driven by a decline in the energy price and comparison with a higher base.
Despite the Federal Reserve talking tough on inflation and lifting rates by 11 times between March 2022 and July 2023, the economy is still expanding and wages are still gaining at rates that are inconsistent with the central bank's target rate of 2%.
Looking ahead, investors are awaiting nonfarm payroll data to be released on Friday, and economists are expecting the economy to add at least 175,000 net new jobs in November.
The November JOLT report is also scheduled to be released on Tuesday, and investors are anticipating job openings of 9.6 million, still higher than the pre-Covid high of 6.5 million in 2019.
U.S. Indexes and Yields
The S&P 500 index declined 0.6% to 4,564.36, and the Nasdaq Composite decreased 1.1% to 14,153.88.
The yield on 2-year Treasury notes increased to 4.62%, 10-year Treasury notes inched higher to 4.25%, and 30-year Treasury bonds were unchanged at 4.43%.
Crude oil decreased $0.74 to $73.38 a barrel, and natural gas prices fell 14 cents to $2.67 a thermal unit.
Gold decreased $46.34 to $2,024.09 an ounce after the U.S. dollar eased.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 103.34.
U.S. Stock Movers
Spotify Technology jumped 6.4% to $192.30 after the music streaming company announced its plan to lay off 1,500 employees, or 17% of its staff.
The company said it hired too many people in 2020 and 2021, and it needs to control its costs and adjust to new market realities.
Alaska Air Group declined 13.5% to $34.27 after the regional airline agreed to rival Hawaiian Airlines in a deal worth $1.9 billion.
Alaska Air agreed to pay $18 a share to the airline and assume $900 million of the company's debt.
Hawaii Airlines parent Hawaiian Holdings surged 181% to $13.65 in early trading, and cautious investors worried about the steep regulatory hurdles faced by the merger.
Coinbase Global jumped 9.2% to $146.10, and MicroStrategy advanced 8.2% to $571.0 after bitcoin surpassed the $40,000 level.
The surge in bitcoin also lifted the stock prices of other cryptocurrency-linked companies.
Marathon Digital Holdings soared 13% to $15.53, and Rio Platforms advanced 11.1% to $15.30.
European Markets Declined After Rallying Three Consecutive Weeks
Stock market indexes in Europe struggled to advance in Monday's trading, and the euro edged slightly lower.
Benchmark indexes in Germany, France, and the U.K. lacked direction, and investors reviewed the latest economic data from Spain and Germany.
Moreover, Swiss consumer price inflation in November slowed to 1.4% from a year ago, the Swiss Federal Statistics Office reported Monday.
Overall inflation slowed from 1.7% in October and dropped to a two-year low after inflation slowed for food and beverages, transportation, and healthcare.
The core rate of inflation, which excludes food and energy prices, slowed to 1.4% from 1.5% in the previous month.
Unemployed People Decline In Spain
The number of people registered as jobless decreased by 24,573 or 0.9% to 2.73 million in November, the Ministry of Employment and Social Security reported Monday.
The total count of unemployed declined to the lowest for a November month since 2007 after unemployment fell by 17,335 in services, by 2,654 in industry, by 2,175 in agriculture, and by 1,072 in construction.
A separate report by the ministry showed the net increase in employment in November rose by 10,350, increasing the total number of jobs to 20.75 million.
Germany's October Trade Surplus Soared
The German trade surplus rose more than expected after imports fell at a faster pace than exports in October, the Federal Statistics Office, or DeStatis, reported Monday.
Seasonally adjusted exports declined 8.1% to Є126.4 billion and imports declined 16.3% to Є108.6 billion.
Exports declined 0.2% and imports fell 1.2% from the previous month, largely because of the weakness in energy prices.
Trade surplus in October rose to Є17.8 billion from Є16.7 billion in September and Є7.8 billion a year ago.
Calendar and seasonally adjusted exports to the member states of the European Union declined by 2.7% to Є67.9 billion, and imports fell by 2.8% to Є56.9 billion.
Exports to countries outside the European Union increased by 2.9% to Є58.5 billion, and imports rose 0.8% to Є51.8 billion.
Germany's exports to the United States, its largest market, rose 5.7% to Є13.5 billion; to the People's Republic of China, they increased 1.5% to Є7.9 billion; and to the U.K., they advanced 5.6% to Є6.6 billion.
Europe Indexes and Yields
The DAX index increased 0.04% to 16,404.76, the CAC-40 index fell 0.2% to 7,332.59, and the FTSE 100 index decreased 0.2% to 7,512.96.
The yield on 10-year German bonds decreased to 2.36%; French bonds traded lower to 2.93%; the UK gilts declined to 4.17%; and Italian bonds inched lower to 4.13%.
The euro traded lower to $1.087, the British pound inched lower to $1.267, and the U.S. dollar eased to 87.21 Swiss cents.
Brent crude decreased $0.49 to $78.35 a barrel, and the Dutch TTF natural gas increased by €3.39 to €40.10 per MWh.
Europe Stock Movers
Energy complex stocks declined on worries about the OPEC+ production quota, and crude oil prices dropped as much as 0.5%.
BP decreased 1.9% to 469.15 pence, Shell dropped 1.7% to Є29.85, Repsol fell 1.7% to €13.94, and TotalEnergies dropped 2% to €61.06.
Mining stocks lacked direction on the ongoing worries about China's property sector.
Glencore declined 1.8% to 449.40 pence, Antofagasta fell 1.5% to 1,473.0 pence, and Anglo American dropped 2.9% to 2,244.50 pence.
Luxury stocks in Paris rebounded after dropping the previous week in the hopes that the U.S. Federal Reserve will keep rates steady at the end of its policy meeting next week.
LVMH added 0.6% to €699.50, Kering jumped 2.7% to €403.65, Richemont increased 0.8% to CHF 110.80, and Salvatore Ferragamo advanced 1.4% to €11.86.
Automobile stocks traded mixed, and investors are worried that higher interest rates for longer may negatively impact demand for vehicles in 2024.
Volkswagen Group added 0.1% to €107.14, Mercedes-Benz Group fell 0.2% to €60.0, BMW fell 0.9% to €95.35, Ferrari decreased 0.9% to €325.90, and Renault dropped 0.2% to €36.18.
Financial stocks traded mixed after bond yields drifted lower and the euro and the British pound held firm against the U.S. dollar.
Barclays added 0.5% to 142.48 pence, HSBC fell 0.3% to 602.50 pence, Deutsche Bank eased 0.1% to €11.51, UniCredit declined 0.2% to €11.51, Societe Generale rose 0.7% to €23.05, and UBS Group declined 0.2% to CHF 24.78.
- Scott Peters
- 04 Dec, 2023
- New York City
Spotify Technology jumped 6.4% to $192.30 after the music streaming company announced its plan to lay off 1,500 employees, or 17% of its staff.
The company said it hired too many people in 2020 and 2021, and it needs to control its costs and adjust to new market realities.
Alaska Air Group declined 13.5% to $34.27 after the regional airline agreed to rival Hawaiian Airlines in a deal worth $1.9 billion.
Alaska Air agreed to pay $18 a share to the airline and assume $900 million of the company's debt.
Hawaii Airlines parent Hawaiian Holdings surged 181% to $13.65 in early trading, and cautious investors worried about the steep regulatory hurdles faced by the merger.
Coinbase Global jumped 9.2% to $146.10, and MicroStrategy advanced 8.2% to $571.0 after bitcoin surpassed the $40,000 level.
The surge in bitcoin also lifted the stock prices of other cryptocurrency-linked companies.
Marathon Digital Holdings soared 13% to $15.53, and Rio Platforms advanced 11.1% to $15.30.
- Barry Adams
- 04 Dec, 2023
- New York City
Market indexes struggled to extend the rally of the previous week amid positive sentiment and optimism about the interest rate path.
The S&P 500 index and the Nasdaq Composite edged lower in early trading after two popular indexes advanced for five consecutive weeks in a row.
On Friday, the S&P 500 index closed at a new 2023 high and surpassed the high seen in March 2022 after investors supported the view that interest rates are near peak rates and the Federal Reserve may begin to cut rates in early 2024.
Federal Reserve Chairman Jerome Powell stressed that talks of rate cuts are "premature," but investors still bid up stocks in anticipation of another rate pause decision by policymakers at the end of a two-day meeting on December 13.
Market participants widely believe that interest rates are likely to stay on hold following the recent string of inflation data suggesting a steady decline over the last eight months, largely driven by a decline in the energy price and comparison with a higher base.
Despite the Federal Reserve talking tough on inflation and lifting rates by 11 times between March 2022 and July 2023, the economy is still expanding and wages are still gaining at rates that are inconsistent with the central bank's target rate of 2%.
Looking ahead, investors are awaiting nonfarm payroll data to be released on Friday, and economists are expecting the economy to add at least 175,000 net new jobs in November.
The November JOLT report is also scheduled to be released on Tuesday, and investors are anticipating job openings of 9.6 million, still higher than the pre-Covid high of 6.5 million in 2019.
U.S. Indexes and Yields
The S&P 500 index declined 0.2% to 4,565.03, and the Nasdaq Composite decreased 0.3% to 14,240.12.
The yield on 2-year Treasury notes increased to 4.62%, 10-year Treasury notes inched higher to 4.25%, and 30-year Treasury bonds were unchanged at 4.43%.
Crude oil decreased $0.84 to $73.23 a barrel, and natural gas prices fell 10 cents to $2.71 a thermal unit.
Gold decreased $1.25 to $2,070.05 an ounce after the U.S. dollar eased.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 103.34.
U.S. Stock Movers
Spotify Technology jumped 6.4% to $192.30 after the music streaming company announced its plan to lay off 1,500 employees, or 17% of its staff.
The company said it hired too many people in 2020 and 2021, and it needs to control its costs and adjust to new market realities.
Alaska Air Group declined 13.5% to $34.27 after the regional airline agreed to rival Hawaiian Airlines in a deal worth $1.9 billion.
Alaska Air agreed to pay $18 a share to the airline and assume $900 million of the company's debt.
Hawaii Airlines parent Hawaiian Holdings surged 181% to $13.65 in early trading, and cautious investors worried about the steep regulatory hurdles faced by the merger.
Coinbase Global jumped 9.2% to $146.10, and MicroStrategy advanced 8.2% to $571.0 after bitcoin surpassed the $40,000 level.
The surge in bitcoin also lifted the stock prices of other cryptocurrency-linked companies.
Marathon Digital Holdings soared 13% to $15.53, and Rio Platforms advanced 11.1% to $15.30.
- Inga Muller
- 04 Dec, 2023
- Frankfurt
The DAX index increased 0.1% to 16,416.44, the CAC-40 index fell 0.3% to 7,324.96, and the FTSE 100 index decreased 0.6% to 7,488.12.
The yield on 10-year German bonds decreased to 2.36%; French bonds traded lower to 2.93%; the UK gilts declined to 4.17%; and Italian bonds inched lower to 4.13%.
Energy complex stocks declined on worries about the OPEC+ production quota, and crude oil prices dropped as much as 0.5%.
BP decreased 1.9% to 469.15 pence, Shell dropped 1.7% to Є29.85, Repsol fell 1.7% to €13.94, and TotalEnergies dropped 2% to €61.06.
Mining stocks lacked direction on the ongoing worries about China's property sector.
Glencore declined 1.8% to 449.40 pence, Antofagasta fell 1.5% to 1,473.0 pence, and Anglo American dropped 2.9% to 2,244.50 pence.
Luxury stocks in Paris rebounded after dropping the previous week in the hopes that the U.S. Federal Reserve will keep rates steady at the end of its policy meeting next week.
LVMH added 0.6% to €699.50, Kering jumped 2.7% to €403.65, Richemont increased 0.8% to CHF 110.80, and Salvatore Ferragamo advanced 1.4% to €11.86.
Automobile stocks traded mixed, and investors are worried that higher interest rates for longer may negatively impact demand for vehicles in 2024.
Volkswagen Group added 0.1% to €107.14, Mercedes-Benz Group fell 0.2% to €60.0, BMW fell 0.9% to €95.35, Ferrari decreased 0.9% to €325.90, and Renault dropped 0.2% to €36.18.
Financial stocks traded mixed after bond yields drifted lower and the euro and the British pound held firm against the U.S. dollar.
Barclays added 0.5% to 142.48 pence, HSBC fell 0.3% to 602.50 pence, Deutsche Bank eased 0.1% to €11.51, UniCredit declined 0.2% to €11.51, Societe Generale rose 0.7% to €23.05, and UBS Group declined 0.2% to CHF 24.78.
- Bridgette Randall
- 04 Dec, 2023
- Frankfurt
Stock market indexes in Europe struggled to advance in Monday's trading, and the euro edged slightly lower.
Benchmark indexes in Germany, France, and the U.K. lacked direction, and investors reviewed the latest economic data from Spain and Germany.
Moreover, Swiss consumer price inflation in November slowed to 1.4% from a year ago, the Swiss Federal Statistics Office reported Monday.
Overall inflation slowed from 1.7% in October and dropped to a two-year low after inflation slowed for food and beverages, transportation, and healthcare.
The core rate of inflation, which excludes food and energy prices, slowed to 1.4% from 1.5% in the previous month.
Unemployed People Decline In Spain
The number of people registered as jobless decreased by 24,573 or 0.9% to 2.73 million in November, the Ministry of Employment and Social Security reported Monday.
The total count of unemployed declined to the lowest for a November month since 2007 after unemployment fell by 17,335 in services, by 2,654 in industry, by 2,175 in agriculture, and by 1,072 in construction.
A separate report by the ministry showed the net increase in employment in November rose by 10,350, increasing the total number of jobs to 20.75 million.
Germany's October Trade Surplus Soared
The German trade surplus rose more than expected after imports fell at a faster pace than exports in October, the Federal Statistics Office, or DeStatis, reported Monday.
Seasonally adjusted exports declined 8.1% to Є126.4 billion and imports declined 16.3% to Є108.6 billion.
Exports declined 0.2% and imports fell 1.2% from the previous month, largely because of the weakness in energy prices.
Trade surplus in October rose to Є17.8 billion from Є16.7 billion in September and Є7.8 billion a year ago.
Calendar and seasonally adjusted exports to the member states of the European Union declined by 2.7% to Є67.9 billion, and imports fell by 2.8% to Є56.9 billion.
Exports to countries outside the European Union increased by 2.9% to Є58.5 billion, and imports rose 0.8% to Є51.8 billion.
Germany's exports to the United States, its largest market, rose 5.7% to Є13.5 billion; to the People's Republic of China, they increased 1.5% to Є7.9 billion; and to the U.K., they advanced 5.6% to Є6.6 billion.
Europe Indexes and Yields
The DAX index increased 0.1% to 16,416.44, the CAC-40 index fell 0.3% to 7,324.96, and the FTSE 100 index decreased 0.6% to 7,488.12.
The yield on 10-year German bonds decreased to 2.36%; French bonds traded lower to 2.93%; the UK gilts declined to 4.17%; and Italian bonds inched lower to 4.13%.
The euro traded lower to $1.087, the British pound inched lower to $1.267, and the U.S. dollar eased to 87.21 Swiss cents.
Brent crude decreased $1.55 to $77.55 a barrel, and the Dutch TTF natural gas increased by €1.62 to €41.88 per MWh.
Europe Stock Movers
Energy complex stocks declined on worries about the OPEC+ production quota, and crude oil prices dropped as much as 0.5%.
BP decreased 1.9% to 469.15 pence, Shell dropped 1.7% to Є29.85, Repsol fell 1.7% to €13.94, and TotalEnergies dropped 2% to €61.06.
Mining stocks lacked direction on the ongoing worries about China's property sector.
Glencore declined 1.8% to 449.40 pence, Antofagasta fell 1.5% to 1,473.0 pence, and Anglo American dropped 2.9% to 2,244.50 pence.
Luxury stocks in Paris rebounded after dropping the previous week in the hopes that the U.S. Federal Reserve will keep rates steady at the end of its policy meeting next week.
LVMH added 0.6% to €699.50, Kering jumped 2.7% to €403.65, Richemont increased 0.8% to CHF 110.80, and Salvatore Ferragamo advanced 1.4% to €11.86.
Automobile stocks traded mixed, and investors are worried that higher interest rates for longer may negatively impact demand for vehicles in 2024.
Volkswagen Group added 0.1% to €107.14, Mercedes-Benz Group fell 0.2% to €60.0, BMW fell 0.9% to €95.35, Ferrari decreased 0.9% to €325.90, and Renault dropped 0.2% to €36.18.
Financial stocks traded mixed after bond yields drifted lower and the euro and the British pound held firm against the U.S. dollar.
Barclays added 0.5% to 142.48 pence, HSBC fell 0.3% to 602.50 pence, Deutsche Bank eased 0.1% to €11.51, UniCredit declined 0.2% to €11.51, Societe Generale rose 0.7% to €23.05, and UBS Group declined 0.2% to CHF 24.78.
- Arun Goswami
- 04 Dec, 2023
- Mumbai
Stocks surged following the state election results, which solidified the ruling party's prospects of winning the national election in 2024.
The Sensex index increased 982.45 points to 68,463.64, and the Nifty index rose 297.0 points to 20,566.30.
On the Mumbai stock exchange, 253 stocks traded at their 52-week highs and 15 stocks traded at their 52-week lows.
Reliance Industries advanced 0.9% to ₹2,416.40 and Indian Oil Corporation added 3.7% to ₹115.35 on a report that Venezuela has resumed shipments to India following the easing of the U.S. sanctions.
India is the second-largest export destination for Venezuelan crude oil after China, but shipments from the OPEC member have been inconsistent because of a lack of production stability.
Adani Ports & Special Economic Zone jumped 5.5% to ₹873.90 after the cargo volume jumped 42% in November from a year ago, according to filings with exchanges.
Alkem Laboratories decreased 0.4% to ₹4,629.05 after the company received three observations from the U.S. Food and Drug Administration after its latest inspection at the facility located in Mandva, Maharashtra.
Tata Power Company added 1.9% to ₹281.15 after the company won a bidding auction to acquire Bikaner-III Neemrana-II Transmission Ltd., a transmission project special purpose vehicle set up by PFC Consulting Ltd.
Salasar Techno Engineering added 3.2% to ₹52.90 after the company won a contract of ₹364 crore from Tamil Nadu Generation and Distribution Corp.
- Arjun Pandit
- 04 Dec, 2023
- Tokyo
Stocks on Dalal Street surged following the results of the state elections.
The Sensex index and the Nifty index jumped more than 1% in early trading after the ruling party, the BJP, clinched a solid majority in three of the five state elections.
The BJP is set to form government in Rajasthan, Madhya Pradesh, and Chhattisgarh but trailed Congress in Telangana and local parties in Mizoram.
Market sentiment was further bolstered by the decline in U.S. Treasury yields in Friday's trading, supporting the view that the U.S. Federal Reserve is likely to hold rates at its next meeting ending on December 13.
Closer to home, the Reserve Bank of India is widely expected to hold rates at the end of its policy meeting on December 8.
India Indexes and Yields
The Sensex index increased 982.45 points to 68,463.64, and the Nifty index rose 297.0 points to 20,566.30.
On the Mumbai stock exchange, 253 stocks traded at their 52-week highs and 15 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds edged up to 7.27%, and the Indian rupee weakened to ₹83.32 against the U.S. dollar.
Gold advanced in Mumbai trading and soared as much as 3% in international trading following the decline in the U.S. dollar in the hopes that the U.S. Federal Reserve is likely to leave rates unchanged on December 13.
The gold price increased by 0.6% to touch a record high of ₹63,934 per ten grams, and silver advanced by 0.2% to ₹78,244 per kilo.
Crude oil decreased by 1.9% to ₹6,162 per barrel, and natural gas fell by 3.7% to ₹227.60 per thermal unit.
Both the WTI and Brent crude oil prices are down 6.5% and 7.0% in the year so far.
India Stock Movers
Reliance Industries advanced 0.9% to ₹2,416.40 and Indian Oil Corporation added 3.7% to ₹115.35 on a report that Venezuela has resumed shipments to India following the easing of the U.S. sanctions.
India is the second-largest export destination for Venezuelan crude oil after China, but shipments from the OPEC member have been inconsistent because of a lack of production stability.
Adani Ports & Special Economic Zone jumped 5.5% to ₹873.90 after the cargo volume jumped 42% in November from a year ago, according to filings with exchanges.
- Scott Peters
- 01 Dec, 2023
- New York City
Walt Disney increased 0.2% to $92.92 after the theme park and movie studio operator reinstated its 30 cents per share dividend.
The company is battling a proxy fight challenge from activist investor Nelson Peltz, and his fund is seeking multiple board seats.
Ulta Beauty soared 11.4% to $474.48 after the company reported strong third-quarter results and tightened its full-year revenue outlook.
Revenue in the third quarter ending in October increased to $2.5 billion from $2.3 billion, comparable store sales growth plunged to 4.5% from 14.6%, and the company opened a net of 12 new stores compared to 18 a year ago.
Net income decreased to $249.5 million from $274.5 million, and diluted earnings per share fell to $5.07 from $5.34 a year ago.
The company estimated a full-year revenue range between $11.10 billion and $11.15 billion, up from the previous estimate between $11.05 billion and $11.15 billion.
The company reiterated its net new store opening estimate between 25 and 30, and its diluted earnings per share estimate was revised to a new range between $25.20 and $25.60 from the previous estimate between $25.10 and $25.60.
Comparable sales are estimated to fall between 5.0% and 5.5% from the previous estimate between 4.5% and 5.5%.
Samsara jumped 13.1% to $31.15 after the IoT company reported quarterly results.
Revenue in the third quarter ending in October rose 40% to $237.5 million from $169.8 million, net loss shrank to $45.5 million from $58.6 million, and diluted loss per share eased to 8 cents from 11 cents a year ago.
The company forecasted revenue in the fourth quarter to fall between $257 million and $259 million and for the full-year 2024 to range between $918 million and $920 million.
Revenue in the fourth quarter is expected to rise between 38% and 39%, and in the full-year advance, 41% from a year ago.
- Barry Adams
- 01 Dec, 2023
- New York City
Stock market indexes traded mixed in early trading on Friday as investors await comments from Fed Chair Powell.
Benchmark indexes are set to extend the market rally to the fifth week in a row as investors support the view that the Federal Reserve is more likely to hold rates and may even lay the groundwork for cutting interest rates as early as the second quarter of 2024.
Two popular indexes jumped sharply and registered their best monthly gains in November since July 2022 as investors bid up high-growth stocks on interest rate hopes.
The S&P 500 index jumped 8.9%, and the Nasdaq Composite index advanced 11% in November.
Federal Reserve Chair Jerome Powell is set to deliver his comments at 11:00 a.m. ET at Spelman College later today.
Investors are looking forward to Powell's comments on the inner workings of the economy, job market health, and the future direction of interest rates.
U.S. Indexes and Yields
The S&P 500 index declined 0.2% to 4,565.03, and the Nasdaq Composite decreased 0.3% to 14,240.12.
The yield on 2-year Treasury notes increased to 4.70%, 10-year Treasury notes inched higher to 4.33%, and 30-year Treasury bonds were unchanged at 4.51%.
Crude oil decreased $0.25 to $75.20 a barrel, and natural gas prices fell 3 cents to $2.77 a thermal unit.
Gold decreased $1.75 to $2,037.45 an ounce after the U.S. dollar eased.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 103.43.
U.S. Stock Movers
Walt Disney increased 0.2% to $92.92 after the theme park and movie studio operator reinstated its 30 cents per share dividend.
The company is battling a proxy fight challenge from activist investor Nelson Peltz, and his fund is seeking multiple board seats.
Ulta Beauty soared 11.4% to $474.48 after the company reported strong third-quarter results and tightened its full-year revenue outlook.
Revenue in the third quarter ending in October increased to $2.5 billion from $2.3 billion, comparable store sales growth plunged to 4.5% from 14.6%, and the company opened a net of 12 new stores compared to 18 a year ago.
Net income decreased to $249.5 million from $274.5 million, and diluted earnings per share fell to $5.07 from $5.34 a year ago.
The company estimated a full-year revenue range between $11.10 billion and $11.15 billion, up from the previous estimate between $11.05 billion and $11.15 billion.
The company reiterated its net new store opening estimate between 25 and 30, and its diluted earnings per share estimate was revised to a new range between $25.20 and $25.60 from the previous estimate between $25.10 and $25.60.
Comparable sales are estimated to fall between 5.0% and 5.5% from the previous estimate between 4.5% and 5.5%.
- Inga Muller
- 01 Dec, 2023
- Frankfurt
European stocks advanced and extended weekly gains after the manufacturing sector downturn improved.
The DAX index increased 0.8% to 16,345.26, the CAC-40 index rose 0.7% to 7,358.70, and the FTSE 100 index added 0.8% to 7,512.42.
The yield on 10-year German bonds decreased to 2.42%; French bonds traded lower to 2.98%; the UK gilts declined to 4.17%; and Italian bonds inched lower to 4.16%.
Mining stocks advanced on China's hopes after the manufacturing index unexpectedly expanded in November.
Antofagasta gained 4.5% to 1,471.50 pence, Anglo American added 7% to 2,293.50 pence, and Glencore jumped 3.5% to 457.35 pence.
Viaplay Group plunged 73 to kr6.39 after the Swedish video streaming company announced its plan to restructure its debt and raise additional capital through a stock offering.
Bechtle AG decreased 4.5% to €43.39 after the information technology company announced a convertible bond offering.
The company plans to sell up to $300 million of unsecured bonds maturing in seven years with an annual interest rate between 1.75% and 2.25%.
The initial conversion price is expected to be set at a premium of between 30% and 35% above the reference share price, equal to the share price determined in a concurrent placement of existing shares from hedging transactions of individual convertible bond investors.
AstraZeneca increased 0.7% to 10,196.0 pence after the company said it was discontinuing two phase III trials into hyperkalaemia treatment.
Capgemini decreased 0.6% to €186.90 after the company said its chief financial officer, Carole Ferrand, plans to resign and pursue other career opportunities.
Swiss Re dropped 1.7% to CHF 101.55, and the reinsurance company set a new net income target ahead of its accounting standard transition to IFRS from U.S. GAAP.
The company set a new IFRS net income target of $3.6 billion, and the life and health insurance segment is expected to contribute $1.5 billion to the target.
The company's property and casualty reinsurance division is targeting a combined ration of less than 87%.