- Inga Muller
- 09 May, 2024
- Frankfurt
European markets paused a 4-day rally, and benchmark indexes in Paris, London, and Frankfurt hovered near record highs.
The Bank of England is expected to hold interest rates amid elevated food and service sector inflation. Resource stocks advanced after China's imports rose in April.
The DAX index increased by 0.3% to 18,547.88; the CAC-40 index fell by 0.1% to 8,124.01; and the FTSE 100 index inched higher by 0.04% to a new intraday record of 8,357.51.
The yield on 10-year German bonds edged down to 2.49%; French bonds inched lower to 2.99%; the UK gilts edged lower to 4.17%; and Italian bonds inched higher to 3.84%.
Banco de Sabadell jumped 3.5% to €1.86 after BBVA proposed a €12.2 billion hostile takeover of the company.
BBVA declined 5.8% to €9.68 after Sabadell's board rejected the company's all-cash merger offer earlier this week.
Telefonica increased 0.1% to €4.19 after the Spanish telecom network operator reported better-than-expected quarterly results.
Nexi increased 5.8% to €6.04 after the Italian payment processor reported better-than-expected first quarter results and launched its stock buyback program.
Revenue in the first quarter increased 6% to €781.6 million from €737.6 million, and operating earnings rose 8.6% to €361.7 million from €333.1 million, a year ago, respectively.
The company estimated 2024 revenue to increase in mid-single digit and operating earnings to advance in mid-to-high single-digit.
The payment processing company also estimated free cash flow of €700 million in the fiscal year 2024.
China-related luxury goods makers declined despite the second-largest economy reporting rising imports in April.
LVMH fell 0.9% to €780.60, Hermes declined 0.8% to €2,287.0, and Kering SA dropped 0.9% to €328.20.
ITV gained 1.6% to 75.55 pence despite the UK-based broadcasting company reporting a decline in first quarter revenue.
BAE Systems rose 0.8% to 1,392.50 pence after the defense contractor reiterated its fiscal year 2024 outlook and delivered strong performance in the year so far.
Full-year 2024 sales are expected to rise between 10% and 12% from £25.28 billion, underlying earnings per share to advance between 6% and 8% to 63.2 pence, and free cash flow is expected to exceed £1.3 billion.
The company said it plans to pay 2023 final dividend of 18.5 pence per share, subject to shareholder approval, on June 3.
The company said it has completed over 90% of the three-year share buyback program of up to £1.5 billion, which commenced in July 2022, and the company plans to launch its next £1.5 billion stock repurchase program at the end of the current plan.
John Wood Group was nearly unchanged at 192.90 pence after the oil services company confirmed its outlook for fiscal years 2024 and 2025.
- Bridgette Randall
- 09 May, 2024
- Frankfurt
European markets rested after advancing for consecutive sessions in a row as investors digested the latest batch of corporate results and awaited the Bank of England's rate decision.
The Bank of England is widely anticipated to hold interest rates steady for the eighth time in a row as the country battles persistent fuel and food price inflation and elevated service inflation.
Investors are likely to focus on comments from Governor Andrew Bailey and the central bank's inflation outlook.
Investors have been bidding up stocks in hopes that the European Central Bank is ready to announce its first rate cut decision at its next meeting, overlooking the weakness in consumer spending and weakening business sentiment.
The euro is likely to face more selling pressure as rate paths in the U.S. and the eurozone diverge.
Investors also reviewed the increase in China's imports in April, supporting the expectations of rising exports from the eurozone to the world's second-largest economy.
Europe Indexes and Yields
The DAX index increased by 0.3% to 18,547.88; the CAC-40 index fell by 0.1% to 8,124.01; and the FTSE 100 index inched higher by 0.04% to a new intraday record of 8,357.51.
The yield on 10-year German bonds edged down to 2.49%; French bonds inched lower to 2.99%; the UK gilts edged lower to 4.17%; and Italian bonds inched higher to 3.84%.
The euro edged higher to $1.073; the British pound inched higher to $1.249; and the U.S. dollar edged higher to 90.94 Swiss cents.
Brent crude increased $0.66 to $84.24 a barrel, and the Dutch TTF natural gas fell by €0.67 to €31.36 per MWh.
Europe Stock Movers
Banco de Sabadell jumped 3.5% to €1.86 after BBVA proposed a €12.2 billion hostile takeover of the company.
BBVA declined 5.8% to €9.68 after Sabadell's board rejected the company's all-cash merger offer earlier this week.
Telefonica increased 0.1% to €4.19 after the Spanish telecom network operator reported better-than-expected quarterly results.
Nexi increased 5.8% to €6.04 after the Italian payment processor reported better-than-expected first quarter results and launched its stock buyback program.
China-linked luxury goods makers declined despite the second-largest economy reporting rising imports in April.
LVMH fell 0.9% to €780.60, Hermes declined 0.8% to €2,287.0, and Kering SA dropped 0.9% to €328.20.
ITV gained 1.6% to 75.55 pence despite the UK-based broadcasting company reporting a decline in first quarter revenue.
BAE Systems rose 0.8% to 1,392.50 pence after the defense contractor reiterated its fiscal year 2024 outlook and delivered strong performance in the year so far.
John Wood Group was nearly unchanged at 192.90 pence after the oil services company confirmed its outlook for fiscal years 2024 and 2025.
- Akira Ito
- 09 May, 2024
- Tokyo
Benchmark indexes in Japan lacked direction, and the yen traded in a tight range after the release of the summary of the policy meeting held in April.
Policy committee members highlighted the inflation risks from rising wages but reiterated their commitment to keeping the accommodative stance in purchasing Japanese government bonds.
On the wage front, Japan's inflation-adjusted real wages declined for the 24th month in a row in March, according to the latest data released by the Ministry of Health, Labor, and Welfare.
Nominal cash wages, including overtime pay, increased 0.6% to 301,193 yen, or $1,940.
Nominal wages rose for the 27th month in a row, but after adjusting for inflation, they continued to decline.
The consumer price tracked for determining real wages rose 3.1% in March, significantly higher than the 0.6% rise in nominal wages.
The full-time worker's average nominal wage increased by 0.8% to 386,795 yen, and the part-time worker's advanced by 2.5% to 108,036 yen.
The total working hours per worker decreased by 2.7% from a year ago to 136.2 yen.
The latest data excludes the spring wage gains negotiated between the large companies and labor unions, and the government data showed only 20% of small and medium-sized businesses increased wages by more than 5%.
The so-called "shunto" wage negotiations, representing annual wage negotiations between the largest Japanese corporations and labor unions, generally set the tone for wage adjustments for other companies in Japan.
The Japanese yen traded around 155.70 against the dollar, slightly higher than in the previous session.
The Nikkei 225 Stock Average decreased 0.1% to 38,146.21, and the Topix index added 0.4% to 2,716.69.
Leading tech companies traded sideways in choppy trading.
SoftBank fell 2.5% to ¥7,736.0, Advantest declined 0.9% to ¥5,106.0, Screen Holdings advanced 0.6% to ¥17,600.0, and Tokyo Electron dropped 3% to ¥35,210.0.
Sumitomo Mitsui Financial advanced 1.3% to ¥8,913.0, Mizuho Financial added 1.2% to ¥3,033.0, and Mitsubishi UFJ Financial gained 2.2% to ¥1,583.50.
Earnings update lifted stocks of Omron and Orix but lowered Yamato Holdings.
Omron Corp. rose 6.5% to ¥6,013.0, Orix advanced 6.5% to ¥3,426.0, and IHI jumped 8.3% to ¥4,119.0.
Yamato Holdings dropped 11.8% to ¥1,777.0.
- Li Chen
- 09 May, 2024
- Hong Kong
Benchmark indexes in Shanghai and Hong Kong drifted higher after China's exports rose more than expected.
China's goods and services exports in April rose 1.5% to $292.5 billion, and imports advanced 8.4% to $220.1 billion from a year ago, respectively.
The trade surplus in April fell to $72.4 billion, compared to $86.5 billion a year ago and $58.6 billion in March.
Exports declined 7.5% and imports edged slightly lower from the previous month, respectively, the General Administration of Customs reported Thursday.
China's exports are likely to rebound in 2024 after slumping 4.6% in the previous year, indicating rising demand from the U.S. and ASEAN regions.
However, imports are still struggling amid a fragile domestic economic recovery.
Exports to the U.S. declined 1.6% in April, dropped 3.3% to the European Union, but rose 20.4% to the ASEAN region from a year ago, respectively.
China's international trade balance for the first four months was $255.7 billion, compared to $266 billion in the same period a year ago.
Exports rose 1.5% to $1.1 trillion, and imports advanced 3.2% to $842.9 billion in the first four months of 2024.
The CSI 300 index gained 1% to 3,667.50, and the Hang Seng index advanced 1.1% to 18,538.57.
The market mood was also bolstered in the hopes that more cities across China are likely to relax curb measures in support of the property market.
Hangzhou eliminated several buyer qualification requirements imposed several years ago on home purchases following a similar move by the southwest city of Chengdu.
In addition, as many as 55 cities have allowed the lowering of mortgage rates to support home sales, following the Politburo meeting in April.
Longfor Group advanced 5.7% to HK$12.16, China Vanke jumped 8.8% to HK$4.84, and China Resources Land added 3.4% to HK$30.15.
Automakers traded mixed in the hopes that rising exports will support the growth in electric vehicle makers' sales growth in the current quarter.
BYD increased 0.4% to HK$225.20, Li Auto declined 1.1% to HK$107.80, Nio added 0.4% to HK$42.25, and Xpeng advanced 0.4% to HK$32.40.
Benchmark indexes in Hong Kong soared more than 7% in April and extended gains by 4% in May in the hopes that regulatory reforms and supportive measures by the People's Bank of China will improve market confidence.
However, measures announced by the local authorities are likely to fall short of market expectations, and consumer confidence remains weak amid an uneven economic recovery and a weakening job market.
- Li Chen
- 06 May, 2024
- Hong Kong
After a week of holidays, investors retuned with a positive mood and bid up stocks in Shanghai.
Stock market indexes in Shanghai advanced more than 1% after investors played catch with a flood of earnings, rising global markets, and improving market sentiment in Asia.
Investors also bid up stocks in the hopes that Chinese regulators, the People's Bank of China, and governments will follow through with market-supportive measures released last month.
The CSI 300 index soared 1.4% to 3,654.68, and the Hang Seng Index increased 0.2% to 18,513.01.
The Hang Seng index advanced for the ninth month in a row as bargain hunters and state-controlled entities stepped up buying stocks.
Tencent Holdings added 1.1% to HK$3,654.68, Baidu Inc. advanced 1.5% to HK$113.41, and Alibaba Group jumped 0.05% to HK$79.20.
Financial stocks declined and did not participate in the market rally in Hong Kong.
Ping An, Bank of China, China Construction Bank, ICBC, and Hong Kong Shanghai Bank fell between 0.3% and 1.4%.
Electric vehicle markers were among the most actively traded stocks in Monday's trading.
Li Auto, Xpeng, and BYD declined between 1% and 4%, but Nio rose 2.5%.
Elsewhere in Asia, market indexes in Mumbai lacked direction amid a flood of positive earnings, and in Sydney, they advanced 0.7%, tracking gains in Friday's trading.
Late evening on Friday, the U.S. monthly net new job gains slowed in April to 175,000 from the revised gain of 315,000 as the job market cooled.
In Europe, market indexes advanced after the jobless rate held steady at 6.5% for the third month in a row in March.
In Monday's trading, Asian markets opened higher, but after three hours of trading, they traded sideways, tracking gains in Friday's trading in New York.
Financial markets in Tokyo and Seoul are closed for a holiday.
- Brian Turner
- 03 May, 2024
- Washington, D.C.
The U.S. economy added 175,000 net new jobs in April, the Bureau of Labor Statistics reported Friday.
In April, employment expanded in healthcare by 56,000, social assistance by 31,000, transportation and warehousing by 22,000, retail trade by 20,000, and construction by 9,000.
The government, at all levels, added only 8,000 jobs after averaging an increase of 55,000 over the last 12 months.
The total nonfarm payroll employment for February was revised down by 34,000, from 270,000 to 236,000, and for March, it was revised up by 12,000, from 303,000 to 315,000.
With these revisions, employment in February and March combined is 22,000 lower than previously reported.
Average hourly earnings in April increased by 0.2% to 7 cents to $34.75, and over the last 12 months, average hourly earnings rose by 3.9%.
The annual pace of wage gains has been slowing since a 4.5% rise in January, 4.3% in February, and 4.1% in March.
The U.S. economy added an average of 254,000 net new jobs in the first quarter, significantly higher than the long-term average addition of 170,000.
- Scott Peters
- 03 May, 2024
- New York City
Apple Inc. soared 6% to $183.44 after the maker of popular iPhone devices reported better-than-expected sales and earnings in its fiscal second quarter.
Revenue in the fiscal second quarter ending in March declined to $90.7 billion from $94.8 billion, net income fell to $23.6 billion from $24.2 billion, and diluted earnings per share increased to $1.53 from $1.52 a year ago.
Net sales in the Americas declined to $37.3 billion from $37.8 billion; in the European Union, they rose to $24.1 billion from $23.9 billion; in Greater China, they decreased to $16.3 billion from $17.8 billion; in Japan, they fell to $6.2 billion from $7.2 billion; and in the rest of Asia Pacific, they eased to $6.7 billion from $8.2 billion a year ago, respectively.
The company's board of directors increased its quarterly cash dividend by 4% to 25 cents per share, payable on May 16 to shareholders on record on May 13.
The company also announced a whopping $110 billion stock repurchase plan.
Expedia decreased 12% to $119.52 after the online travel booking platform reported better-than-expected revenue in the first quarter.
However, stock fell sharply after the company estimated full-year revenue growth in the range of mid- to high single-digits, disappointing some investors.
Amgen soared 14% to $316.11 after the biotech company reported better-than-expected quarterly results and said it would no longer pursue the development of an experimental weight-loss pill.
However, the company plans to take injectable obesity drugs into a phase 3 trial, following the encouraging results in phase two.
- Barry Adams
- 03 May, 2024
- New York City
Benchmark indexes on Wall Street advanced in early trading as investors reacted positively to the softer jobs report in April.
The S&P 500 index and the Nasdaq Composite advanced 0.2% in Friday's trading as investors looked forward to the release of April's nonfarm payroll data later in the day.
The U.S. economy added 175,000 net new jobs in April, the Bureau of Labor Statistics reported Friday.
In April, employment expanded in healthcare by 56,000, social assistance by 31,000, transportation and warehousing by 22,000, retail trade by 20,000, and construction by 9,000.
The total nonfarm payroll employment for February was revised down by 34,000, from 270,000 to 236,000, and for March, it was revised up by 12,000, from 303,000 to 315,000.
With these revisions, employment in February and March combined is 22,000 lower than previously reported.
Average hourly earnings in April increased by 0.2% to 7 cents to $34.75, and over the last 12 months, average hourly earnings rose by 3.9%.
The U.S. economy added an average of 254,000 net new jobs in the first quarter, significantly higher than the long-term average addition of 170,000.
Benchmark indexes are likely to close higher in the week after volatile trading when the Federal Reserve held its interest rate steady.
The central bank ruled out rate increases but stressed that more evidence of cooler inflation is needed before rates could be lowered.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.2% to 5,071.59, and the Nasdaq Composite rose 0.2% to 15,863,16.
The yield on 2-year Treasury notes edged higher to 4.88%, 10-year Treasury notes inched lower to 4.55%, and 30-year Treasury bonds edged lower to 4.71%.
WTI crude oil increased $0.41 to $79.36 a barrel, and natural gas prices increased 3 cents to $2.06 a thermal unit.
Gold decreased by $6.96 to $2,297.05 an ounce, and silver fell 23 cents to $26.44.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 105.18.
U.S. Stock Movers
Apple Inc. soared 6% to $183.44 after the maker of popular iPhone devices reported better-than-expected sales and earnings in its fiscal second quarter.
Revenue in the fiscal second quarter ending in March declined to $90.7 billion from $94.8 billion, net income fell to $23.6 billion from $24.2 billion, and diluted earnings per share increased to $1.53 from $1.52 a year ago.
Net sales in the Americas declined to $37.3 billion from $37.8 billion; in the European Union, they rose to $24.1 billion from $23.9 billion; in Greater China, they decreased to $16.3 billion from $17.8 billion; in Japan, they fell to $6.2 billion from $7.2 billion; and in the rest of Asia Pacific, they eased to $6.7 billion from $8.2 billion a year ago, respectively.
The company's board of directors increased its quarterly cash dividend by 4% to 25 cents per share, payable on May 16 to shareholders on record on May 13.
The company also announced a whopping $110 billion stock repurchase plan.
Expedia decreased 12% to $119.52 after the online travel booking platform reported better-than-expected revenue in the first quarter.
However, stock fell sharply after the company estimated full-year revenue growth in the range of mid- to high single-digits, disappointing some investors.
Amgen soared 14% to $316.11 after the biotech company reported better-than-expected quarterly results and said it would no longer pursue the development of an experimental weight-loss pill.
However, the company plans to take injectable obesity drugs into a phase 3 trial.
- Inga Muller
- 03 May, 2024
- Frankfurt
European markets edged higher in Friday's trading and trimmed weekly losses in the hopes of multiple rate cuts in 2024.
The DAX index increased by 0.5% to 17,988.51; the CAC-40 index rose by 0.6% to 7,965.24; and the FTSE 100 index inched higher by 0.5% to a new intraday record of 8,214.37.
The yield on 10-year German bonds edged down to 2.53%; French bonds inched lower to 3.03%; the UK gilts edged lower to 4.28%; and Italian bonds inched higher to 3.85%.
Henkel AG increased 6.6% to €78.78 after the German household products maker lifted its sales and earnings outlook for 2024.
Daimler Truck Holding decreased 4.9% to €40.49 after the German truck maker reported a decline in global sales in the first quarter.
Krones AG declined 1.6% to €122.60 despite the German packaging and bottling equipment maker reporting an increase in first-quarter profit and confirming its full-year 2024 outlook.
Societe Generale declined 3.8% to €24.80 after the French bank reported a smaller-than-expected 22% decline in earnings and reiterated its 2024 outlook.
Credit Agricole rose 3.3% to €15.10 after the French bank reported a 55% surge in first-quarter earnings, beating market expectations by a wide margin.
Future plc increased 1.5% to 708.74 pence, and the UK-based publishing company appointed Sharjeel Suleman as the company's chief financial officer.
Trainline jumped 6.6% to 320.97 pence after an online train and bus ticketing platform operator reported an increase in earnings and announced its plans to expand its stock buyback activities over the next year.
- Bridgette Randall
- 03 May, 2024
- Frankfurt
European markets advanced in Friday's trading and trimmed weekly losses after investors debated future rate paths and reacted to the latest corporate quarterly results.
Benchmark indexes in Frankfurt and Paris edged after European Central Bank policymaker Yannis Stournaras estimated three rate cuts in the remainder of 2024.
Moreover, benchmark indexes in London advanced after service sector growth accelerated in April, S&P Global reported in its final estimate on Friday.
Eurozone Jobless Rate Held Steady at Record Low
The jobless rate in the eurozone held at a record low of 6.5% in March, matching the rate in the previous three months, Eurostat reported Friday.
The number of jobless declined by 94,000 to 11.09 million, and the youth unemployment rate, those younger than 25 seeking jobs, decreased to 14.1% from 14.4% in February.
Among the four largest economies in the currency union, Spain led with the highest jobless rate of 11.7%, followed by France with 7.3%, Italy with 72%, and Germany with 3.2%.
UK Service Growth Accelerated In April
The UK Service Purchasing Managers' Index increased to 55.0 in April from 53.1 in March, higher than the preliminary estimate of 54.9.
Investors also overlooked the decline in industrial output in France, mainly because of the decline in food and beverage manufacturing.
France's Industrial Output Edged Lower
France's industrial output declined 0.3% from the previous month in March, reversing the 0.2% increase in February, the statistical agency INSEE reported Friday.
France's industrial production declined in six of the last twelve months, indicating an uneven economic recovery amid elevated inflation and weak export demand.
However, industrial production rose 0.7% from a year ago in March.
Europe Indexes and Yields
The DAX index increased by 0.5% to 17,988.51; the CAC-40 index rose by 0.6% to 7,965.24; and the FTSE 100 index inched higher by 0.5% to a new intraday record of 8,214.37.
The yield on 10-year German bonds edged down to 2.53%; French bonds inched lower to 3.03%; the UK gilts edged lower to 4.28%; and Italian bonds inched higher to 3.85%.
The euro edged higher to $1.074; the British pound inched higher to $1.255; and the U.S. dollar edged higher to 90.69 Swiss cents.
Brent crude increased $0.23 to $83.90 a barrel, and the Dutch TTF natural gas fell by €0.33 to €30.57 per MWh.
Europe Stock Movers
Henkel AG increased 6.6% to €78.78 after the German household products maker lifted its sales and earnings outlook for 2024.
Daimler Truck Holding decreased 4.9% to €40.49 after the German truck maker reported a decline in global sales in the first quarter.
Krones AG declined 1.6% to €122.60 despite the German packaging and bottling equipment maker reporting an increase in first-quarter profit and confirming its full-year 2024 outlook.
Societe Generale declined 3.8% to €24.80 after the French bank reported a smaller-than-expected 22% decline in earnings and reiterated its 2024 outlook.
Credit Agricole rose 3.3% to €15.10 after the French bank reported a 55% surge in first-quarter earnings, beating market expectations by a wide margin.
Future plc increased 1.5% to 708.74 pence, and the UK-based publishing company appointed Sharjeel Suleman as the company's chief financial officer.
Trainline jumped 6.6% to 320.97 pence after an online train and bus ticketing platform operator reported an increase in earnings and announced its plans to expand its stock buyback activities over the next year.
- Li Chen
- 03 May, 2024
- Hong Kong
Market indexes in Hong Kong advanced and inched further into bull territory as investors searched for bargains in tech and financial services stocks.
The Hang Seng index increased 1.1% to 18,413.79, and the Hang Seng Tech index jumped 2% after Apple announced a $100 billion stock repurchase plan.
Financial markets in mainland China are closed for a holiday, and markets are scheduled to reopen on Monday after the end of the Golden Week holidays.
The Hang Seng index is up more than 20% from its low reached on January 22, amid a slew of positive earnings and regulatory measures to revive market sentiment.
Market sentiment was further bolstered after China's top policymakers announced additional measures in a meeting held on April 30.
Policymakers are looking for banks to lower reserve ratios, encourage the People's Bank of China to lower rates, and provide additional financing to top property developers.
Policymakers are seeking to take steps that support real economic activities, such as increasing lending to small and medium businesses, which could lead to more job creation.
The Hang Seng index extended weekly gains to 6% and extended this year's increase to close to 10%, leading other large financial markets.
Tech stocks extended gains following the rally in tech stocks in overnight trading in New York.
Tencent Holdings gained 1% to HK$363.20, Alibaba Group advanced 3.5% to HK$78.75, and Meituan jumped 0.8% to HK$119.30.
Banks and financial services stocks traded mixed but extended this week's gains.
Bank of China decreased 0.3% to HK$119.30, China Construction Bank added 0.8% to HK$5.17, and HSBC Bank was unchanged at HK$69.25.
Chinese automakers generally traded higher, and electric vehicle makers inched higher after reporting mixed vehicle sales in April two days ago.
BYD added 0.6% to HK$226.40, Li Auto jumped 2.7% to $110.50, Xpeng increased 4.2% to HK$35.60, and Geely Automotive added 1.1% to HK$9.91.
- Arun Goswami
- 03 May, 2024
- Mumbai
Stocks in Mumbai advanced in Friday's trading and extended weekly gains to 2% and the year-to-date's advance to 4.8%.
The Sensex index increased by 0.5% to 75,028.02, and the Nifty index rose by 0.5% to 22,774.70.
On the Mumbai stock exchange, 120 stocks traded at their 52-week highs, and 3 stocks traded at their 52-week lows.
Adani Enterprises decreased by 0.9% to ₹3,029.0 after the Adani family's holding company reported mixed quarterly results.
Revenue in the March quarter rose 1% to ₹29,180 crore and net income fell 38% to ₹451 crore from a year ago, respectively.
Dabur India rose 4.1% to ₹528.60 after the consumer product maker reported quarterly results.
Revenue in the March quarter increased by 5% to ₹2,814.6 crore, and net profit soared by 16.5% to ₹341 crore from a year ago, respectively.
CEAT Ltd. advanced by 2.2% to ₹2,625.0 after the tiremaker reported a decline in profit in its latest quarter.
Revenue in the March quarter rose by 4% to ₹2,991.85 crore and net income dropped by 22.6% to ₹102.3 crore from a year ago, respectively.
Coal India decreased by 0.5% to ₹452.0 after the natural resource company reported weaker-than-expected quarterly revenue.
Consolidated revenue in the March quarter declined 2% to 37,410 crore, and net income surged 26% to 8,682 crore from a year ago, respectively.
Zydus Lifesciences advanced 3.6% to ₹987.90 after the company said it agreed to acquire the remaining 25% stake in Bayer Zydus Pharma for ₹282 crore.
After the purchase, Zydus will control 100% of the company.
Ajanta Pharma soared 11% to ₹2,469.80 after the company announced a plan to buyback 10 lakh shares, or 0.82% of the outstanding shares of the company.
Blue Dart Express gained 2% to ₹6,367.50 after the parcel delivery company reported slightly positive quarterly results.
Revenue in the March quarter increased to 1,333.9 crore from 1,225.2 crore, and net income soared 12% to 77.8 crore from 69.8 crore a year ago, respectively.
- Alexander Garcia
- 02 May, 2024
- Miami
Investors shook off rate jitters and bid up stocks amid earnings optimism.
Benchmark indexes on Wall Street edged higher after investors shifted their attention to corporate quarterly results and key economic data releases.
The S&P 500 index and the Nasdaq Composite turned higher in early trading as investors reviewed the latest comments from Federal Reserve Chair Jerome Powell.
The U.S. Federal Reserve held steady in its policy rate range between 5.25% and 5.50%, as widely anticipated by most market participants.
The Federal Reserve also noted that inflation is still too high but added that it is unlikely that the next policy move will be a rate increase.
Fed Chairman Jerome Powell said that the central bank is prepared to keep rates high as long as needed until it gains greater confidence that inflation is on the path of its target rate of 2%.
The Federal Reserve also announced its plans to slow down its quantitative tightening starting June 1.
The move is likely to contribute to lowering interest rates and ease the liquidity crunch in the financial system.
The Federal Reserve is holding about $7.4 trillion of Treasury securities on its balance sheet, and the Fed has been shrinking its balance sheet after it expanded to $9 trillion at the start of 2022 from pre-pandemic $4 trillion.
The central bank plans to reduce its monthly sale of Treasury securities to $25 billion from the current target of up to $60 billion beginning June 1st.
Investors shook off rate jitters and bid up stocks amid earnings optimism.
On the economic front, initial claims of jobless benefits were below market expectations for the fourth week in a row, suggesting labor market tightness.
The initial jobless benefits claims were unchanged from the previous week at 208,000 in the week ending on April 27, the U.S. Department of Labor reported Thursday.
Continuing claims matched the previous claims at 1,774 million, the lowest since January, indicating persistently tight labor market conditions.
Trade Deficit Held Steady In March Near 10-month Low
The overall goods and service trade deficit was nearly unchanged in March, the Bureau of Economic Analysis reported Thursday.
Exports declined 2% from the previous month to $257.6 billion, and imports decreased 1.6% to $327.0 billion, resulting in a trade deficit of $69.4 billion.
Exports of goods decreased $5.1 billion to $171.3 billion and services fell $0.2 billion to $86.4 billion in March, after sales of civilian aircraft, travel services, and petroleum products fell.
Imports of goods decreased $4.3 billion to $263.8 billion, and services fell $1.1 billion to $63.2 billion in March, amid the decline in demand for passenger cars, pharmaceuticals, home goods, and travel services.
The deficit with China increased from $2.2 billion to $24.1 billion in March. Exports decreased $0.5 billion to $12.7 billion, and imports increased $1.7 billion to $36.8 billion.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.4% to 5,040.27, and the Nasdaq Composite rose 0.5% to 15,738,22.
The yield on 2-year Treasury notes edged higher to 4.95%, 10-year Treasury notes inched lower to 4.61%, and 30-year Treasury bonds edged lower to 4.75%.
WTI crude oil increased $0.09 to $79.09 a barrel, and natural gas prices increased 9 cents to $2.02 a thermal unit.
Gold decreased by $24.71 to $2,299.14 an ounce, and silver fell 19 cents to $26.56.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 105.70.
U.S. Stock Movers
DoorDash plunged 9.9% to $114.80 after the food delivery company reported a wider-than-expected loss in its latest quarter.
Carvana soared 35% to $118.0 after the automotive retailer reported higher-than-expected revenue in the first quarter.
eBay Inc. declined 3.8% to $49.11 after the online marketplace operator estimated weaker-than-expected revenue in the current quarter.
Qualcomm increased 5.2% to $172.78 after the advanced chipmaker reported better-than-expected earnings in its latest quarter and issued strong guidance for the current quarter.
Moderna rose 1.9% to $113.67 after the vaccine maker reported a smaller-than-expected quarterly loss in its latest quarter after the company trimmed operating costs.
Wayfair Inc. advanced 7.5% to $54.31 after the online furniture retailer reported a narrower loss in its latest quarter, partly driven by layoffs.
Peloton Interactive increased 13% to $3.61 after the company announced its plans to lay off 15% of its staff, and chief executive officer Barry McCarthy will be stepping down.
McCarthy will act as a strategic adviser to the company through the end of the year, and chairperson Karen Boone and director Chris Bruzzo will assume the roles of interim co-CEO.
Rate Anxieties Keep European Markets Volatile
European markets traded sideways as investors debated future interest rate paths and the manufacturing sector outlook.
Benchmark indexes in Frankfurt and Paris edged lower after the U.S. Federal Reserve held steady its benchmark interest rate range between 5.25% and 5.50%.
Investors debated the spillover effect of the higher-for-longer U.S. interest rates on the currency union's rate path.
The European Central Bank has signaled that it is ready to cut its interest rates as early as June, but the central bank has not clarified the size of or the number of subsequent cuts in the year.
Market sentiment was further dented after an ongoing downturn in the manufacturing sector deepened in April.
Manufacturing Sector Woes Deepened In April
HCOB Eurozone Manufacturing PMI declined to 45.7 in April from 46.1 in March, S&P Global reported in its final reading on Thursday.
Any reading below the 50-mark indicates contraction, and any reading above the 50-mark shows expansion.
Market indexes in London traded higher after strong earnings from Standard & Chartered and Shell PLC lifted market sentiment.
Europe Indexes and Yields
The DAX index decreased by 0.2% to 17,896.50.18; the CAC-40 index fell by 0.9% to 7,914.65; and the FTSE 100 index inched higher by 0.6% to 8,172.15.
The yield on 10-year German bonds edged up to 2.55%; French bonds inched lower to 3.04%; the UK gilts edged lower to 4.31%; and Italian bonds inched higher to 3.87%.
The euro edged higher to $1.069; the British pound inched higher to $1.251; and the U.S. dollar edged higher to 91.25 Swiss cents.
Brent crude increased $0.13 to $83.58 a barrel, and the Dutch TTF natural gas fell by €2.02 to €30.88 per MWh.
Europe Stock Movers
Shell PLC gained 1% to 2,847.51 pence after the oil giant reported better-than-expected first-quarter earnings and announced a $3.5 billion stock repurchase plan.
Standard Chartered increased 5.4% to 732.60 pence after the financial services provider reported stronger-than-expected first-quarter profit amid elevated interest rates and higher demand for its wealth management services.
Smurfit Kappa Group advanced 4.5% to 3,638.0 pence after the packaging material maker reported first-quarter revenue of €2.7 billion.
Hugo Boss declined 9.4% to €45.77 after the German fashion retailer reported better-than-expected first-quarter earnings and projected revenue growth in the current year.
Teleperformance increased 8.2% to €92.50 after the French business service provider said first-quarter revenue rose 26.7%, driven largely by the integration of the Dutch rival Majorel last year.
Novo Nordisk decreased 2.5% to DKK 875.60 despite the Danish pharmaceutical company reporting better-than-expected first-quarter earnings.
Vestas Wind System declined 3.2% to DKK 180.85 after the Danish wind turbine maker reported a surprise loss in the first quarter.
Tokyo Indexes Struggle After Tech Stock Weakness
Stocks in Tokyo declined, and the yen rebounded for the second day in a row, amid tech stock weakness and the possible intervention by the central bank.
The Nikkei and the Topix indexes lacked direction in Thursday's trading after the U.S. Federal Reserve held rates steady but signaled that the future rate path is highly uncertain.
Fed Chair Jerome Powell also ruled out the possibility of a rate hike in the immediate future and confirmed that inflation has moderated over the last year, but progress has stalled in recent months.
Closer to home, the minutes of the Bank of Japan's policy meeting held on March 18 and 19 showed Thursday that policymakers believe the central bank's inflation target of 2% is within reach.
Moreover, the monetary base increased 2.1% from a year ago in April to 689.896 trillion yen, and the adjusted monetary base soared 11.4% from a year ago. the Bank of Japan said Thursday.
The Japanese yen rebounded for the second day in a row to 155.70, stoking speculation that the Bank of Japan, in coordination with the ministry of finance, intervened for the second day in a row.
Tech stocks in the U.S. sold on the worry that higher rates are likely to stay elevated amid positive U.S. economic data and resilient labor market conditions.
The Nikkei 225 Stock Average decreased 0.07% to 38,245.08, and the Topix index declined a fraction to 2,729.17.
Tech stocks in Japan followed the weakness in New York.
Tokyo Electron, Advantest, Socionext, SoftBank, and Screen Holdings decreased between 0.3% and 1.8%.
Financial stocks were also among the leading decliners after the U.S. rate decision announcement.
Sumitomo Mitsui Group declined 1.2% to ¥8,881.0, Mitsubishi UFJ fell 0.5% to ¥1,557.50, and Mizuho Financial Group eased 0.3% to ¥3,010.0.
Sumitomo Pharma Plunges On Lowered Annual Outlook
Sumitomo Pharma dropped 7% to ¥373.0 after the company reported lower-than-estimated revenue and higher-than-estimated losses in the fiscal year 2024 ending in March.
Revenue was revised lower to 314.6 billion yen from the previous estimate of 317 billion yen, and net loss attributable to shareholders was revised higher to 315 billion yen from the previous estimate of 147 billion yen.
The loss per share was revised to 792.86 yen from the previous estimate of 354.90 yen.
The company also suspended its dividend after the sharp decline in core profit.
Hong Kong Stocks Rebound Amid Bargain Hunting
Stocks in Hong Kong advanced after investors returned from a holiday, and financial markets in China are closed for the week.
Optimism ruled Hong Kong trading after the U.S. Federal Reserve held steady its benchmark rate, driving financial and insurance stocks higher.
The Hong Kong Monetary Authority held its reference rate steady at 5.75%, following the move by the U.S. Federal Reserve, under its linked exchange rate system reflecting the Hong Kong dollar's peg to the U.S. dollar.
The interest rate move supported the rise in financial and insurance stocks, and HSBC, Ping An, and AIA rose between 0.9% and 3.5%.
Property developers rose after the interest rate decision announcement, and U.S. Federal Reserve Chair Jerome Powell ruled out rate hikes in the near future.
Longfor Group added 7.3% to HK$12.72, China Vanke soared 10.5% to $5.10, and China Resources Land jumped 4.5% to HK$29.65.
Henderson Land increased 1.4% to HK$24.20, and Sun Hung Kai Properties jumped 2.4% to HK$74.05.
The Hang Seng index rose 2.2% to 18,150.91, and the Hang Seng Tech index jumped 3.5%.
Tech leaders also participated in the market rally, and Tencent Holdings, Meituan, Baidu, and Alibaba Group jumped between 2% and 9%.
EV Makers Report Mixed Sales In April Amid Fierce Price War
Electric vehicle makers were in focus after the three leading makers reported mixed sales in April amid a brutal price war as the automakers struggled to gain market share amid slowing domestic demand growth.
Li Auto jumped 2.2% to HK$106.30 after the electric vehicle maker said April sales decreased 0.4% from the previous month to 25,787 units.
Sales in the first four months to April 2024 advanced 35.6% from a year ago to 106,187 units.
Xpeng soared 7.4% to HK$33.90 after the company said electric vehicle sales in April rose 4% from the previous month to 9,393 units.
Year-to-date sales rose 23% to 31,214 vehicles.
The company is engaged in a brutal price war amid fierce competition in the mid-price segment for cars priced between 200,000 and 300,000 yuan.
BYD jumped 4.3% to HK$225.60 after the largest electric vehicle maker in China said sales in April rose 3.6% to 313,245 units.
Year-to-date sales surged 49% to 210,295 units.
Nio soared 21.4% to HK$43.40 after the electric vehicle maker said April sales soared 31.6% from the previous month to 15,620 units, the largest monthly increase among the four leading automakers.
Sales in the first four months of April rose 21% from a year ago to 45,673 units.
- Brian Turner
- 02 May, 2024
- Washington, D.C.
The overall goods and service trade deficit was nearly unchanged in March, the Bureau of Economic Analysis reported Thursday.
Exports declined 2% from the previous month to $257.6 billion, and imports decreased 1.6% to $327.0 billion, resulting in a trade deficit of $69.4 billion.
Exports of goods decreased $5.1 billion to $171.3 billion and services fell $0.2 billion to $86.4 billion in March, after sales of civilian aircraft, travel services, and petroleum products fell.
Imports of goods decreased $4.3 billion to $263.8 billion, and services fell $1.1 billion to $63.2 billion in March, amid the decline in demand for passenger cars, pharmaceuticals, home goods, and travel services.
The deficit with China increased from $2.2 billion to $24.1 billion in March. Exports decreased $0.5 billion to $12.7 billion, and imports increased $1.7 billion to $36.8 billion.