- Barry Adams
- 08 Apr, 2024
- New York City
Benchmark indexes traded around the flatline in early trading on Monday, and investors remained positive ahead of the start of the earnings season.
The S&P 500 index and the Nasdaq Composite edged slightly higher as investors awaited the start of the earnings season, with leading banks set to announce earnings.
Last week, market indexes trimmed losses following the gains on Friday after nonfarm payrolls advanced, wages gained, and more people sought employment.
Investors weighed the positive impact of an expanding labor market on the U.S. economy, which will support higher corporate earnings despite interest rates staying higher for longer.
However, market enthusiasm was kept in check after Treasury yields edged higher.
This week, investors are looking ahead to the release of consumer price and producer price indexes.
The consumer price index for March is expected to increase at annual pace of 3.4% and advance 0.35% from the previous month, according to a poll of ten economists conducted by ticker.com.
U.S. Indexes and Yields
The S&P 500 index increased 0.2% to 5,212.74, and the Nasdaq Composite rose 0.3% to 16,294.02.
The yield on 2-year Treasury notes edged higher to 4.78%, 10-year Treasury notes inched down to 4.42%, and 30-year Treasury bonds edged up to 4.54%.
WTI crude oil decreased $1.21 to $85.61 a barrel, and natural gas prices increased 8 cents to $1.82 a thermal unit.
Gold decreased by $2.95 to $2,327.49 an ounce, and silver rose 2 cents to $27.50.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 104.18.
U.S. Stock Movers
Tesla jumped 4% to $171.50 after the company's chief executive, Elon Musk, said the company is ready to release its robotaxi design on August 8.
Oil companies traded down after crude oil prices eased more than 1% following the easing of tensions in the Middle East.
Exxon Mobil, Chevron, Hess, and Marathon Oil declined around 0.6%.
Popular tech stocks also drifted lower in early trading.
Apple, Microsoft, Meta, Netflix, Amazon, Alphabet, and Amazon declined between 0.1% and 0.4%.
Semiconductor stocks drifted downward, and Intel, AMD, Nvidia, Broadcom, and Qualcomm declined around 0.2%.
- Inga Muller
- 08 Apr, 2024
- Frankfurt
European markets extended the previous week's gains ahead of the European Central Bank's monetary policy decisions later this week.
The DAX index increased by 0.6% to 18,281.97, the CAC-40 index rose by 0.6% to 8,105.36, and the FTSE 100 index inched higher by 0.1% to 7,918.41.
The yield on 10-year German bonds edged up to 2.44%; French bonds inched lower to 2.93%; the UK gilts edged higher to 4.14%; and Italian bonds inched higher to 3.80%.
Mining companies in London traded higher after the price of copper in Shanghai jumped to a record on the expectation of a demand rebound and supply constraints.
Antofagasta, Anglo American, and Glencore rose between 1.2% and 1.6%.
Entain PLC rose 4.7% to 821.20 pence on speculation that private equity companies are looking to make a bid for the troubled online gambling and sports betting company.
Energy companies traded volatile after the crude oil price declined more than 1% in London trading after tensions eased in the Middle East following the start of negotiations between Israel and Hamas in Egypt.
BP plc gained 1% to 511.40 pence, Shell PLC added 1.1% to 2,808.0 pence, and TotalEnergies SE advanced 1.3% to €67.67.
German automakers advanced after the release of industrial output data.
Mercedes Benz gained 2.5% to €76.58, Volkswagen Group advanced 0.7% to €127.30, and BMW AG increased 1.5% to €114.20.
- Bridgette Randall
- 08 Apr, 2024
- Frankfurt
Stocks in Europe extended the previous week's gains, and investors reviewed the latest economic updates from Germany.
In cautious trading, investors bid up stocks in the hopes that the European Central Bank will hold rates steady later this week and provide an update on its rate path views.
Investors are hoping that the central bank is still on track to lower rates as early as June.
However, investor expectations may be dashed.
Crude oil prices have rebounded to a five-month high in the last two months, and service sector inflation is near 4% and shows no sign of easing after multiple rate hikes over the last two years.
German Industrial Output Increased In February
German industrial output rose monthly by 2.1% in February and accelerated from a 1.3% increase in January, Destatis reported Monday.
Industrial output, adjusted for seasonal and calendar factors, rose at the fastest pace since January 2023, after increase in activities in automotive, chemical, and construction industries.
The output increased in the automotive industry by 5.7%, in the chemical industry by 4.6%, and in the construction industry by 7.9%.
However, the decline in energy generation sector production by 6.5%, significantly negatively impacted the overall output.
The annual decline in industrial output softened to 4.9% from a decrease of 5.3% in January.
Seasonally and calendar-adjusted industrial production, excluding energy and construction, increased by 1.9% in February from the previous month but fell 5.5% from a year ago.
German Trade Surplus Shrank In February
Germany's trade surplus shrank from the previous month in February after imports rose and exports fell, Destatis reported Monday.
Adjusted for seasonal and calendar factors, exports in February decreased 2.2% to €132.9 billion and imports rose 3.2% to €111.5 billion from the previous month, respectively.
Germany's foreign trade was negatively impacted by elevated interest rates and rising macroeconomic uncertainty; however, lower energy prices supported the decline in overall imports.
Exports decreased by 4.4% and imports declined by 8.7% compared to the same month a year ago.
The trade balance shrank to €21.4 billion from €27.6 billion in January but rose from €16.9 billion in the corresponding month a year ago.
Exports to the European Union contracted 3.9% to €72.9 billion, and imports from the region decreased 5.7% to €57.5 billion.
Germany's three main trading partners outside the European Union showed mixed performance.
Exports to the U.S. increased by 10.2% from the previous month to €13.8 billion, but fell to China by 0.6% to €8 billion and to the U.K. by 2.0% to €6.6 billion. in the same period.
Imports from China surged 16% from the previous month to €12.1 billion; imports from the U.S. declined by 5.2% to €7.4 billion; and imports from the U.K. declined by 4.6% to €3.1 billion.
Europe Indexes and Yields
The DAX index increased by 0.6% to 18,281.97, the CAC-40 index rose by 0.6% to 8,105.36, and the FTSE 100 index inched higher by 0.1% to 7,918.41.
The yield on 10-year German bonds edged up to 2.44%; French bonds inched lower to 2.93%; the UK gilts edged higher to 4.14%; and Italian bonds inched higher to 3.80%.
The euro edged higher to $1.083, the British pound inched higher to $1.263, and the U.S. dollar edged higher to 90.57 Swiss cents.
Brent crude decreased $0.80 to $90.36. a barrel, and the Dutch TTF natural gas rose by €0.39 to €27.0 per MWh.
Europe Stock Movers
Mining companies in London traded higher after the price of copper in Shanghai jumped to a record on the expectation of a demand rebound and supply constraints.
Antofagasta, Anglo American, and Glencore rose between 1.2% and 1.6%.
Entain PLC rose 4.7% to 821.20 pence on speculation that private equity companies are looking to make a bid for the troubled online gambling and sports betting company.
Energy companies edged lower after the crude oil price declined more than 1% in London trading after tensions eased in the Middle East following the start of negotiations between Israel and Hamas in Egypt.
- Li Chen
- 08 Apr, 2024
- Hong Kong
Asian markets attempted to rebound in Monday's trading following better-than-expected U.S. economic data on Friday.
For now, investors set aside the expectations of a U.S. rate cut as early as June and its likely impact on the world bond market.
Benchmark indexes in Japan, India, South Korea, and Australia advanced.
Gold miners in China and Australia traded higher after the bullion price soared to a new record high amid speculation about the U.S. rate path, elevated tensions in the Middle East, and persistent buying by the central banks, including the People's Bank of China.
The People's Bank of China lifted its declared gold holding for the 17th month in a row, according to the official figures released on Sunday.
The central bank increased its holding by 0.2% in March to 72.74 million troy ounces, the smallest monthly purchase since the latest buying spree began in November 2022.
Nikkei 225 Rebounds Tracking Friday's Wall Street Gains
Benchmark indexes in Japan advanced in Monday's trading and rebounded from a three-week low, tracking gains on Wall Street in Friday's trading.
The U.S. economy added more-than-expected 303,000 jobs in March, higher than 270,000 jobs in February, and at the fastest pace in ten months.
The Nikkei 225 Stock Average added 0.8% to 39,293.52, and the Topix index gained 0.7% to 2,723.59.
The yen hovered near 151.64 against the U.S. dollar as traders speculated on the timing and amount of government intervention in the currency market.
Tech and financial services stocks were among the leading gainers in Monday's trading.
SoftBank, Tokyo Electron, Advantest, Screen Holdings, and Disco Corp. gained between 1.4% and 3.2%.
Socionext jumped 6.1% to ¥4,896.0, and Fujitsu advanced 3.8% to ¥2,476.0.
Mitsubishi UFJ, Sumitomo Mitsui Financial, and Mizuho Financial gained around 1.5%.
China Stocks Struggle Ahead of Inflation and Trade Data
Benchmark indexes in Shanghai and Hong Kong struggled to hold morning gains as investors awaited the release of economic data later in the week.
China is scheduled to release its overall inflation data on Thursday and its international trade data on Friday.
In addition, this week, the People's Bank of China is also likely to provide information on money supply and new loan updates.
Stocks opened higher but quickly lost ground as foreign investors stayed on the sidelines.
U.S. Treasury Secretary Janet Yellen said talks with Chinese Premier Li Qiang were "extensive and productive" after the two met on Sunday.
Electric vehicle makers advanced after China's Commerce Minister Wang Wentao refuted the allegation of overcapacity and added that vehicle makers are not reliant on government subsidies.
Li Auto jumped 3.3% to HK$119.90, and BYD jumped 2.1% to HK$202.0.
The CSI 300 index decreased 0.5% to 3,551.93 and the Hang Seng index declined 0.1% to 16,709.68.
Zijin Mining Group advanced 1.7% to HK$17.06 after yellow metal's price soared to a record high of $2,339.35 an ounce in New York.
India Indexes Advance Amid Elevated Geopolitical Tension
Stocks in Mumbai opened higher after benchmark indexes extended the previous week's gains.
Crude oil edged lower in international trading but hovered near a five-month high amid the prospect of a wider war between Israel and Iran.
Israel withdrew its military from South Gaza and returned to negotiations with Hamas in Egypt amid rising international pressure.
About two weeks ago, Israel bombed Iran's embassy in Syria and killed seven people, including three military advisors.
Military experts in the region worry that Iran will conduct a retaliatory strike targeting Israeli embassies.
On Friday, the Reserve Bank of India held its repo rate at 6.5% and projected India's economy to expand at an annual pace of 7.0% in fiscal 2025.
However, the central bank did not provide clear indications on rate paths and inflation, citing elevated macroeconomic headwinds and global market uncertainty.
Moreover, investors worried about the spillover effects of the higher-for-longer U.S. interest rates after the latest data showed stronger-than-expected payroll growth and economic conditions.
This week, investors are looking ahead to the release of industrial output in March and overall inflation data in February.
On the earning front, Tata Consultancy Services is scheduled to release its March quarter earnings after the close of trading hours in Mumbai.
The Sensex index increased 0.5% to 74,635.23, and the Nifty index edged higher by 0.3% to 22,621.95.
On the Mumbai stock exchange, 151 stocks traded at their 52-week highs, and 4 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds inched higher to 7.12%, and the Indian rupee edged lower at ₹83.28 against the U.S. dollar.
- Barry Adams
- 05 Apr, 2024
- New York City
Benchmark indexes on Wall Street soared as investors cheered the latest jobs report and looked beyond rate uncertainty.
The S&P 500 index and the Nasdaq Composite advanced 1% after the U.S. economy added more than expected jobs in March, indicating a resilient economy.
The jobless rate edged slightly lower, but wages rose at a faster pace, making the Federal Reserve's task harder in balancing economic growth and moderating inflation.
Investors prefer the U.S. economy to grow at a healthy pace of 2% because that supports corporate earnings growth, but at the same time, they prefer job market conditions to weaken, driving wage inflation below 2%.
So far, wages have been rising at an annual pace of around 4%, and the U.S. economy is expanding at an above-average long-term annual growth rate of 2%.
The latest jobs report supports the case for the Federal Reserve to hold rates steady at the next meeting, as more investors anticipate the no landing scenario, where policymakers hold rates steady till the end of the year.
Despite the market bonce in Friday's trading, for the week, the S&P 500 index decreased 1.1% and the Nasdaq Composite declined 1.3% after investors struggled to balance hawkish comments from Fed officials with stronger-than-expected economic data.
Nonfarm Payrolls Rise the most in 10 Months
The U.S. economy added more than expected: 303,000 jobs in March, more than 270,000 jobs in February, and at the fastest pace in ten months.
The jobless rate eased to 3.8% in March from a two-year high of 3.9% in February. the U.S. Bureau of Labor Statistics noted in its monthly nonfarm payrolls report.
The average hourly wage for all employees on private nonfarm payrolls rose 0.3%, or 12 cents, to $34.69.
Over the last 12 months, average hourly earnings increased by 4.1% in March after rising by 4.3% in February.
U.S. Indexes and Yields
The S&P 500 index increased 1.1% to 5,204.34, and the Nasdaq Composite rose 1.2% to 16,248.52.
The yield on 2-year Treasury notes edged lower to 4.70%, 10-year Treasury notes inched down to 4.35%, and 30-year Treasury bonds edged up to 4.51%.
WTI crude oil increased $0.19 to $86.77 a barrel, and natural gas prices increased 1 cent to $1.78 a thermal unit.
Precious metal prices rose for the third week in a row on speculation that the Federal Reserve is still committed to lowering rates and driving the U.S. dollar lower.
Moreover, the latest job market data suggests that the resilient U.S. economy and expanding labor market conditions may lead to higher-than-estimated inflation.
The weaker dollar supports higher gold prices because gold and silver metals are priced in the U.S. dollar in international markets.
Gold decreased by $40.09 to $2,329.52 an ounce, and silver rose 55 cents to $27.48.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 104.42.
U.S. Stock Movers
Teladoc Health declined 0.5% to $14.17 after the company said chief executive officer Jason Gorevic unexpectedly departed.
The company's board appointed chief financial officer Mala Murthy as temporary chief executive while the company conducted a search for a permanent replacement.
European Markets Trade Sideways Amid Mixed Economic Data
European markets dropped sharply on the final day of a holiday-shortened trading week.
Benchmark indexes in Frankfurt, Paris, and London declined more than 1% after investors lowered expectations of rate cuts in the U.S. following hawkish comments from Federal Reserve officials.
Closer to home, Euro Area retail sales declined in February and extended the downturn to the 17th month in a row due to the persistently high cost of living and elevated interest rates.
UK Monthly Home Prices Declined In February
The Halifax House Price Index in the UK rose 0.3% from a year ago in February, Halifax and the Bank of Scotland reported Friday.
The home price index increased for the fourth month in a row; however, the pace of an annual increase eased to the slowest pace in the month.
Despite the market volatility, underlying demand for homes remains strong amid elevated rental costs across the nation.
Home prices declined 1% on a monthly basis, and an average UK home now costs £288,430, around £2,900 less than last month.
“Affordability constraints continue to be a challenge for prospective buyers, while existing homeowners on cheaper fixed-term deals are yet to feel the full effect of higher interest rates," Kim Kinnaird, Director, Halifax Mortgages, said.
The UK's housing market is still in a state of flux, as most existing home owners have yet to feel the full brunt of higher interest rates.
Eurozone Retail Sales Extend Annual Decline Streak to 17th Month
Eurozone retail sales declined in February, highlighting a challenging environment for consumers amid elevated interest rates and high inflation.
Retail sales in the currency union decreased 0.5% from the previous month in February after staying unchanged in January, Eurostat reported Friday.
Sales of food, drinks, and tobacco fell by 0.4% after a 0.3% rise the previous month, while non-food product sales decreased by 0.2% after a 0.4% increase.
Meanwhile, sales of automotive fuel shrank by 1.4%, the largest decline in seven months.
Retail sales on an annual basis declined 0.7% in February, extending the decline to the 17th month in a row after consumers retrenched on basic necessities and avoided discretionary items.
German factory Orders Rebound Slightly from Previous Month in February
Germany's factory orders increased monthly by 0.2% in February, following the revised 11.4% fall in January, Destatis reported Friday.
Calendar-adjusted orders from a year ago dropped 10.6%.
In a less volatile three-month comparison, incoming orders from December 2023 to February 2024 were 2.8% higher than in the previous three months.
However, the increase is mainly due to a large order in December.
Excluding large orders, incoming orders from December 2023 to February 2024 were 2.0% lower than in the previous three months.
Orders rose for manufacturing electrical equipment by 10.7% after falling for two months in a row, pharmaceuticals by 6.6%, and the chemical industry by 3.1%.
In contrast, new orders declined for automotive by 8.1% and for manufacturing metal products by 5.3%.
Incoming orders for capital goods declined by 0.6% and rose for both intermediate goods by 1.0% and consumer goods by 2.2% in February compared to the previous month.
Domestic orders increased 1.5%, but foreign orders eased 0.7%, with demand from the eurozone falling 13.1% and orders from outside the currency union advanced 7.8%.
Europe Indexes and Yields
The DAX index decreased by 1.3% to 18,175.04, the CAC-40 index fell by 1.1% to 8,061.31, and the FTSE 100 index inched lower by 0.8% to 7,911.16.
The yield on 10-year German bonds edged down to 2.36%; French bonds inched lower to 2.87%; the UK gilts edged lower to 4.08%; and Italian bonds inched higher to 3.73%.
The euro edged higher to $1.083, the British pound inched higher to $1.263, and the U.S. dollar edged higher to 90.30 Swiss cents.
Brent crude increased $0.22 to $90.86. a barrel, and the Dutch TTF natural gas rose by €0.80 to €26.96 per MWh.
Europe Stock Movers
Travel and leisure stocks declined after crude oil prices jumped to near $91 a barrel on the rising tensions in the Middle East following the escalation of tensions between Iran and Israel.
TUI AG declined 2.3% to €7.56, easyJet declined 2.5% to 554.80 pence, and the parent company of British Air, International Consolidated Airlines Group, fell 2.8% to 171.55 pence.
UK home builders declined after home prices rose at the slowest pace in four months.
Barratt Developments, Taylor Wimpey, and Persimmon declined between 12% and 1.7%.
Asian Markets Extended Weekly Losses, China Indexes Rebound
Market indexes in Tokyo dropped 2%, and in Hong Kong, Seoul, and Sydney declined around 1%.
The latest decline in indexes was sparked by a growing realization that U.S. policymakers are not in a hurry lower rates after a string of positive economic data.
Those comments are in sharp contrast to the expectations of as many as three rate cuts just two months ago.
“If we continue to see inflation moving sideways, then that would make me question whether we need to do those rate cuts at all,” said Kashkari, president of the Minneapolis Federal Reserve Bank, in an interview with Pensions & Investments on Thursday.
Last month, Kashkari projected two rate cuts in 2024 but turned cautious following the recent economic data.
The latest update on manufactured goods orders, construction spending, the personal consumption expenditures price index, and job openings suggested resilient economic and labor market conditions.
The comments of U.S. policymakers over the last two days suggested that policymakers are more likely to hold interest rates higher for longer.
Japan Indexes Extend Weekly Losses, Yen Rally Falters
Stocks in Japan traded down, and the benchmark indexes extended weekly losses to more than 2%, after investors lowered rate-cut expectations in the U.S.
The yen traded above 151 against the U.S. dollar on the worry that the rate differential with the U.S. rates may remain high longer than previously anticipated.
Moreover, investors worry that the Bank of Japan's rate hike last month may not be enough to stabilize the yen.
The Japanese yen has been hovering near 152 level against the yen, prompting verbal intervention by the ministry of finance.
The Japanese corporations are still not likely to increase profit repatriation because of the persistent and large interest rate gap between the rates in Japan, the U.S., and the Euro Area.
The average household spending in Japan was down 0.5% from a year ago to 279,868 yen, or $1,866, in February, the Ministry of Internal Affairs and Communications said on Friday.
The decline in February follows the 6.3% slide in January.
The Nikkei 225 Stock Average decreased 2% to 38,955.19, and the Topix index dropped 1.3% to 2,698.30.
The Nikkei 225 index declined below 39,000 for the first time in three weeks.
Crude oil prices approached a five-month high after conflict in the Middle East escalated following a deadly bombing raid by Israel on Monday.
Israel bombed Iran's embassy in Syria, killing three senior commanders among seven military advisors.
Dubai crude oil for June delivery rose $1.05 to $90.85 a barrel after Israel stepped up its bombing campaign this week, raising speculation of a wider war in the Middle East.
Tokyo Electric Power declined 6.5% to ¥946.60, and Inpex Corp. declined 0.2% to ¥2,466.0.
Tech stocks were among the leading decliners in Tokyo.
Tokyo Electron, Screen Holdings, Advantest, and SoftBank dropped between 2.5% and 4%.
Sumitomo Mitsui Financial, Mizuho Financial, and Mitsubishi UFJ decreased around 2%, after investors lowered rate-cut expectations in the U.S.
Hong Stocks Extend Weekly Losses
The market index in Hong Kong reversed earlier gains in the day and closed down amid rate worries.
Financial markets in China are closed for a public holiday on Friday.
The Hang Seng Index declined 0.7% to 16,606.26 after investors pared back rate-cut expectations, and the index advanced 0.4% in a holiday-shortened week following the rise of 0.3% in the previous week.
Despite the market intervention by Chinese government-controlled funds in financial markets, the Hang Seng index is the worst-performing market among the top 10 leading world markets.
The Hang Seng index extended this year's decline to 1%, and extended five-year losses to 44%.
Alibaba Group, Tencent Holdings, JD.com, Trip.com, Baidu.com, and Meituan declined between 0.2% and 2.2%.
Xiaomi declined 2.2% to HK$15.14 after the initial enthusiasm faded following the launch of a new electric vehicle in a crowded passenger car market.
India Stocks Trim Weekly Gains, RBI Holds Rates
Stocks in Mumbai lacked direction and the Reserve Bank of India held its repo rate for the seventh time in a row.
The Sensex and the Nifty indexes struggled to stay above the flatline as investors looked ahead to the monetary policy decision and inflation and economic growth projections from the Reserve Bank of India.
The Reserve Bank of India held the repo rate at 6.5% and projected fiscal year 2025 economic growth at 7.0%.
Governor Shaktikanta Das held out for inflation to ease in the second quarter of the fiscal year, supporting the case for a rate cut later in the year.
The RBI last cut the repo rate by 40 basis points to 4% in May 2020, and two years later, the central bank commenced the lifting of the interest rate after overall inflation picked up following a rise in energy and food prices.
Market sentiment was cautious in early trading after benchmark indexes on Wall Street declined more than 1%.
The Sensex index increased 0.03% to 74,248.22, and the Nifty index decreased a fraction to 22,513.70.
For the week to Thursday's close, the Sensex gained 0.9% and the Nifty index advanced 1.3%.
On the Mumbai stock exchange, 214 stocks traded at their 52-week highs, and 7 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds held steady at 7.09%, and the Indian rupee held steady at ₹83.46 against the U.S. dollar.
- Barry Adams
- 05 Apr, 2024
- New York City
Stocks on Wall Street advanced as investors reacted to the latest nonfarm payrolls report.
The S&P 500 index and the Nasdaq Composite advanced more than 0.4% after the U.S. economy added more than expected jobs in March, indicating a resilient economy.
The jobless rate edged slightly lower, but wages rose at a faster pace, making the Federal Reserve's task harder in balancing economic growth while moderating inflation.
Investors are looking for the U.S. economy to grow at a faster pace because that supports corporate earnings growth, but at the same time, they prefer job market conditions to weaken so that wage inflation falls below 2%.
So far, wages have been rising at an annual pace of around 4%, and the U.S. economy is expanding at an above-average long-term annual growth rate of 2%.
The latest jobs report supports the case for the Federal Reserve to hold rates steady at the next meeting, as more investors anticipate the no landing scenario, where policymakers hold rates steady till the end of the year.
Nonfarm Payrolls Rise the most in 10 Months
The U.S. economy added more than expected: 303,000 jobs in March, more than 270,000 jobs in February, and at the fastest pace in ten months.
The jobless rate eased to 3.8% in March from a two-year high of 3.9% in February. the U.S. Bureau of Labor Statistics noted in its monthly nonfarm payrolls report.
The average hourly wage for all employees on private nonfarm payrolls rose 0.3%, or 12 cents, to $34.69.
Over the last 12 months, average hourly earnings increased by 4.1% in March after rising by 4.3% in February.
U.S. Indexes and Yields
The S&P 500 index increased 0.5% to 5,170.64, and the Nasdaq Composite rose 0.8% to 16,173.02.
The yield on 2-year Treasury notes edged lower to 4.70%, 10-year Treasury notes inched down to 4.35%, and 30-year Treasury bonds edged up to 4.51%.
WTI crude oil increased $0.15 to $86.73 a barrel, and natural gas prices increased 1 cent to $1.77 a thermal unit.
Gold decreased by $17.89 to $2,308.28 an ounce, and silver fell 21 cents to $27.05.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 104.42.
U.S. Stock Movers
Teladoc Health declined 0.5% to $14.17 after the company said chief executive officer Jason Gorevic unexpectedly departed.
The company's board appointed chief financial officer Mala Murthy as temporary chief executive while the company conducted a search for a permanent replacement.
- Inga Muller
- 05 Apr, 2024
- Frankfurt
European markets fell more than 1% after investors dialed down rate-cut expectations in the U.S., with a spillover effect in the eurozone.
Benchmark indexes in France and Paris are set to decline more than 2.5%, and the FTSE 100 index in the UK is expected to fall 0.6% after a week of trading.
The DAX index decreased by 1.5% to 18,130.88, the CAC-40 index fell by 1.4% to 8,034.74, and the FTSE 100 index inched lower by 1.0% to 7,894.95.
The yield on 10-year German bonds edged down to 2.36%; French bonds inched lower to 2.87%; the UK gilts edged lower to 4.08%; and Italian bonds inched higher to 3.73%.
Travel and leisure stocks declined after crude oil prices jumped to near $91 a barrel on the rising tensions in the Middle East following the escalation of tensions between Iran and Israel.
TUI AG declined 2.3% to €7.56, easyJet declined 2.5% to 554.80 pence, and the parent company of British Air, International Consolidated Airlines Group, fell 2.8% to 171.55 pence.
UK home builders declined after home prices rose at the slowest pace in four months.
Barratt Developments, Taylor Wimpey, and Persimmon declined between 12% and 1.7%.
SoftwareOne Holding declined 1.1% to CHF 16.56 after all proxy advisors opposed the company's plan to replace its entire slate of directors.
Neste Oyj soared 6.2% to €26.58, and the Finnish energy company announced a shut-down of its Porvoo refinery for maintenance.
Shell PLC increased 0.6% to 2,780.84 pence, and the company said its integrated gas division is expected to show a substantial decline in the first quarter results compared to the previous quarter due to the price weakness.
- Bridgette Randall
- 05 Apr, 2024
- Frankfurt
European markets dropped sharply on the final day of a holiday-shortened trading week.
Benchmark indexes in Frankfurt, Paris, and London declined more than 1% after investors lowered expectations of rate cuts in the U.S. following hawkish comments from Federal Reserve officials.
Closer to home, Euro Area retail sales declined in February and extended the downturn to the 17th month in a row due to the persistently high cost of living and elevated interest rates.
UK Monthly Home Prices Declined In February
The Halifax House Price Index in the UK rose 0.3% from a year ago in February, Halifax and the Bank of Scotland reported Friday.
The home price index increased for the fourth month in a row; however, the pace of an annual increase eased to the slowest pace in the month.
Despite the market volatility, underlying demand for homes remains strong amid elevated rental costs across the nation.
Home prices declined 1% on a monthly basis, and an average UK home now costs £288,430, around £2,900 less than last month.
“Affordability constraints continue to be a challenge for prospective buyers, while existing homeowners on cheaper fixed-term deals are yet to feel the full effect of higher interest rates," Kim Kinnaird, Director, Halifax Mortgages, said.
The UK's housing market is still in a state of flux, as most existing home owners have yet to feel the full brunt of higher interest rates.
Eurozone Retail Sales Extend Annual Decline Streak to 17th Month
Eurozone retail sales declined in February, highlighting a challenging environment for consumers amid elevated interest rates and high inflation.
Retail sales in the currency union decreased 0.5% from the previous month in February after staying unchanged in January, Eurostat reported Friday.
Sales of food, drinks, and tobacco fell by 0.4% after a 0.3% rise the previous month, while non-food product sales decreased by 0.2% after a 0.4% increase.
Meanwhile, sales of automotive fuel shrank by 1.4%, the largest decline in seven months.
Retail sales on an annual basis declined 0.7% in February, extending the decline to the 17th month in a row after consumers retrenched on basic necessities and avoided discretionary items.
German factory Orders Rebound Slightly from Previous Month in February
Germany's factory orders increased monthly by 0.2% in February, following the revised 11.4% fall in January, Destatis reported Friday.
Calendar-adjusted orders from a year ago dropped 10.6%.
In a less volatile three-month comparison, incoming orders from December 2023 to February 2024 were 2.8% higher than in the previous three months.
However, the increase is mainly due to a large order in December.
Excluding large orders, incoming orders from December 2023 to February 2024 were 2.0% lower than in the previous three months.
Orders rose for manufacturing electrical equipment by 10.7% after falling for two months in a row, pharmaceuticals by 6.6%, and the chemical industry by 3.1%.
In contrast, new orders declined for automotive by 8.1% and for manufacturing metal products by 5.3%.
Incoming orders for capital goods declined by 0.6% and rose for both intermediate goods by 1.0% and consumer goods by 2.2% in February compared to the previous month.
Domestic orders increased 1.5%, but foreign orders eased 0.7%, with demand from the eurozone falling 13.1% and orders from outside the currency union advanced 7.8%.
Europe Indexes and Yields
The DAX index decreased by 1.5% to 18,130.88, the CAC-40 index fell by 1.4% to 8,034.74, and the FTSE 100 index inched lower by 1.0% to 7,894.95.
The yield on 10-year German bonds edged down to 2.36%; French bonds inched lower to 2.87%; the UK gilts edged lower to 4.08%; and Italian bonds inched higher to 3.73%.
The euro edged higher to $1.083, the British pound inched higher to $1.263, and the U.S. dollar edged higher to 90.30 Swiss cents.
Brent crude increased $0.25 to $90.90. a barrel, and the Dutch TTF natural gas rose by €0.26 to €26.37 per MWh.
Europe Stock Movers
Travel and leisure stocks declined after crude oil prices jumped to near $91 a barrel on the rising tensions in the Middle East following the escalation of tensions between Iran and Israel.
TUI AG declined 2.3% to €7.56, easyJet declined 2.5% to 554.80 pence, and the parent company of British Air, International Consolidated Airlines Group, fell 2.8% to 171.55 pence.
UK home builders declined after home prices rose at the slowest pace in four months.
Barratt Developments, Taylor Wimpey, and Persimmon declined between 12% and 1.7%.
- Akira Ito
- 05 Apr, 2024
- Tokyo
Market indexes in Tokyo dropped 2%, and in Hong Kong, Seoul, and Sydney declined around 1%.
The latest decline in indexes was sparked by a growing realization that U.S. policymakers are not in a hurry lower rates after a string of positive economic data.
Those comments are in sharp contrast to the expectations of as many as three rate cuts just two months ago.
“If we continue to see inflation moving sideways, then that would make me question whether we need to do those rate cuts at all,” said Kashkari, president of the Minneapolis Federal Reserve Bank, in an interview with Pensions & Investments on Thursday.
Last month, Kashkari projected two rate cuts in 2024 but turned cautious following the recent economic data.
The latest update on manufactured goods orders, construction spending, the personal consumption expenditures price index, and job openings suggested resilient economic and labor market conditions.
The comments of U.S. policymakers over the last two days suggested that policymakers are more likely to hold interest rates higher for longer.
Japan Indexes Extend Weekly Losses, Yen Rally Falters
Stocks in Japan traded down, and the benchmark indexes extended weekly losses to more than 2%, after investors lowered rate-cut expectations in the U.S.
The yen traded above 151 against the U.S. dollar on the worry that the rate differential with the U.S. rates may remain high longer than previously anticipated.
Moreover, investors worry that the Bank of Japan's rate hike last month may not be enough to stabilize the yen.
The Japanese yen has been hovering near 152 level against the yen, prompting verbal intervention by the ministry of finance.
The Japanese corporations are still not likely to increase profit repatriation because of the persistent and large interest rate gap between the rates in Japan, the U.S., and the Euro Area.
The average household spending in Japan was down 0.5% from a year ago to 279,868 yen, or $1,866, in February, the Ministry of Internal Affairs and Communications said on Friday.
The decline in February follows the 6.3% slide in January.
The Nikkei 225 Stock Average decreased 2% to 38,955.19, and the Topix index dropped 1.3% to 2,698.30.
The Nikkei 225 index declined below 39,000 for the first time in three weeks.
Crude oil prices approached a five-month high after conflict in the Middle East escalated following a deadly bombing raid by Israel on Monday.
Israel bombed Iran's embassy in Syria, killing three senior commanders among seven military advisors.
Dubai crude oil for June delivery rose $1.05 to $90.85 a barrel after Israel stepped up its bombing campaign this week, raising speculation of a wider war in the Middle East.
Tokyo Electric Power declined 6.5% to ¥946.60, and Inpex Corp. declined 0.2% to ¥2,466.0.
Tech stocks were among the leading decliners in Tokyo.
Tokyo Electron, Screen Holdings, Advantest, and SoftBank dropped between 2.5% and 4%.
Sumitomo Mitsui Financial, Mizuho Financial, and Mitsubishi UFJ decreased around 2%, after investors lowered rate-cut expectations in the U.S.
Hong Stocks Extend Weekly Losses
The market index in Hong Kong reversed earlier gains in the day and closed down amid rate worries.
Financial markets in China are closed for a public holiday on Friday.
The Hang Seng Index declined 0.7% to 16,606.26 after investors pared back rate-cut expectations, and the index advanced 0.4% in a holiday-shortened week following the rise of 0.3% in the previous week.
Despite the market intervention by Chinese government-controlled funds in financial markets, the Hang Seng index is the worst-performing market among the top 10 leading world markets.
The Hang Seng index extended this year's decline to 1%, and extended five-year losses to 44%.
Alibaba Group, Tencent Holdings, JD.com, Trip.com, Baidu.com, and Meituan declined between 0.2% and 2.2%.
Xiaomi declined 2.2% to HK$15.14 after the initial enthusiasm faded following the launch of a new electric vehicle in a crowded passenger car market.
India Stocks Trim Weekly Gains Ahead of the RBI's Rate Decisions
Stocks in Mumbai lacked direction ahead of the rate decision later in the day.
The Sensex and the Nifty indexes struggled to stay above the flatline as investors looked ahead to the monetary policy decision and inflation and economic growth projections from the Reserve Bank of India.
Market sentiment was cautious in early trading after benchmark indexes on Wall Street declined more than 1%.
The Sensex index decreased 0.03% to 73,876.83, and the Nifty index edged down 0.08% to 22,434.65.
For the week to Thursday's close, the Sensex gained 0.9% and the Nifty index advanced 1.3%.
On the Mumbai stock exchange, 214 stocks traded at their 52-week highs, and 7 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds held steady at 7.09%, and the Indian rupee held steady at ₹83.46 against the U.S. dollar.
- Arun Goswami
- 05 Apr, 2024
- Mumbai
Stocks in Mumbai struggled to advance ahead of the widely anticipated monetary policy decisions by the Reserve Bank of India later in the day.
The RBI is expected to hold policy rates steady and may raise its economic growth projections.
The Sensex index decreased 0.03% to 73,876.83, and the Nifty index edged down 0.08% to 22,434.65.
For the week to Thursday's close, the Sensex gained 0.9% and the Nifty index advanced 1.3%.
On the Mumbai stock exchange, 214 stocks traded at their 52-week highs, and 7 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds held steady at 7.09%, and the Indian rupee held steady at ₹83.46 against the U.S. dollar.
IndusInd Bank increased 0.2% to ₹1,545.0 after the company reported healthy gains in its loan portfolio and deposit base.
New loans in the March quarter increased 18% to ₹3.43 trillion or lakh crore, and deposits rose 14% to ₹3.85 trillion or lakh crore.
Bajaj Finance declined 0.2% to ₹7,291.95, and the company added 3.2 million (32 lakh) customers in the March quarter, increasing its total customer base to 83.6 million (8.36 crore).
At the end of March, assets under management grew by 34% to approximately ₹330,400 crore from ₹247,379 crore, and assets rose by ₹19,400 crore in the fiscal fourth quarter.
Deposits at the end of March increased by 35% to ₹60,100 crore as compared to ₹44,666 crore a year ago.
Prestige Estates Projects gained 0.8% to ₹1,312.0 after the company acquired 21 acres of land for 450 crore in Whitefield, Bengaluru.
Sobha Ltd. increased 0.03% to ₹1,569.50, after the real estate developer said revenue in the March quarter increased 2.8% to 1,504 crore.
The average sale price for new properties rose 13.5% to ₹11,230 per square foot.
Rashi Peripherals soared 6.5% to ₹358.80 after the company won two contracts to supply information technology and communication products to NMDC Data Center Private Limited.
The company will supply and install advanced technology products worth ₹1,065.5 crore and ₹445.5 crore to a location in a special economic zone.
Aavas Financiers increased 5.3% to ₹1,526.55 after the company reported a sharp jump in new loans in the March quarter.
New loans issued in the quarter rose 20% from a year ago and 39% form the previous quarter to ₹1,890 crore and assets under management rose 22% from a year ago to ₹17,300 crore.
Loans past due declined 15 basis points from a year ago and 60 basis points from the previous quarter to 3.15%, and liquidity position improved to ₹3,000 crore at the end of March.
Equitas Small Finance Bank decreased 0.1% to ₹98.40 and the banks reported a sharp jump in its loan portfolio and bank deposits.
New loans increased 23% to ₹34,337 crore and total deposit jumped 43% to ₹36,129 crore, from a year ago, respectively.
- Barry Adams
- 04 Apr, 2024
- New York City
Stocks on Wall Street rebounded after indexes struggled for three days amid interest rate uncertainty and rising commodity prices.
Copper futures traded at a 14-month high, gold hovered near a record high, crude oil prices rose to a 3-month high, and steel prices dropped to a 4-year low.
The S&P 500 index gained 0.4% and the Nasdaq Composite advanced 0.9% as the yield on the 10-year Treasury note hovered near a four-month high.
Investors dialed down rate-cut expectations after Federal Reserve Chair Jerome Powell said on Wednesday that before policymakers begin to cut rates, more evidence is needed that inflation is moving towards the target rate of 2%.
Federal Reserve Bank of Atlanta president Raphael Bostic said in an interview with CNBC that only one rate cut is likely in 2024.
Investors have been digesting a flood of mixed economic news in the last two weeks, and the PCE price index showed it stayed well above the Fed's target rate in February.
Moreover, manufactured goods orders and construction spending also increased sharply from a year ago in February.
Initial Weekly Jobless Claims Rose to a 2-month High
U.S. initial jobless claims in the week ending March 30 rose by 9,000 to 221,000, according to the latest update released by the Department of Labor.
The initial claims rose to a two-month high, and continuing claims, which lag by a week, inched slightly lower to 1.79 million.
U.S. Trade Deficit Expanded to a 10-month High
The U.S. Commerce Department reported that the trade deficit rose by $1.3 billion from the previous month to $68.9 billion in February.
Exports of goods and services in February rose 2.3% to $263.0 billion, and imports advanced 2.2% to $331.9 billion.
The goods deficit decreased by $0.3 billion to $91.4 billion, and the services surplus fell by $1.6 billion to $22.5 billion.
U.S. Indexes and Yields
The S&P 500 index increased 0.8% to 5,252.96, and the Nasdaq Composite rose 1.1% to 16,463.0.
The yield on 2-year Treasury notes edged lower to 4.70%, 10-year Treasury notes inched up to 4.39%, and 30-year Treasury bonds edged up to 4.53%.
WTI crude oil increased $0.71 to $84.87 a barrel, and natural gas prices decreased 7 cents to $1.77 a thermal unit.
Gold decreased by $8.78 to $2,288.65 an ounce, and silver fell 7 cents to $27.09.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 104.05.
U.S. Stock Movers
Levi Strauss & Co. soared 10.5% to $22.05 after the denim apparel maker reported quarterly results that met market expectations.
Revenue in the fiscal first quarter ending on February 25 declined 7.8% to $1.56 billion, net income swung a loss of $10.6 million from a profit of $114.7 million, and diluted earnings per share were a loss of 3 cents compared to 29 cents a year ago.
The company declared a cash dividend of 12 cents per share payable on May 23 to shareholders on record on May 9.
Intuitive Machines jumped 2% to $6.16 after the company won a U.S. space agency's $30 million contract to build a lunar terrain vehicle.
ConAgra Brands jumped 4.9% to $30.50 after the company reported quarterly results that met market expectations.
Revenue in the fiscal third quarter declined 1.7% to $3.03 billion, net income declined 9.8% to $308.7 million from $341.7 million, and diluted earnings per share dropped to 64 cents from 71 cents a year ago.
Volvo SE gained 0.6% to SEK 288.50 after the vehicle maker reported a significant increase in sales in March and in the first quarter.
The Sweden-based vehicle maker, owned by China-based Geely, said the company sold 78,970 passenger cars in March, an increase of 25% from a year ago.
First-quarter vehicle sales soared 12% from a year ago to 182,687.
Electric vehicle sales in Europe advanced 34% in March and rose 22% in the first quarter; however, electric vehicle sales in China plunged 34%.
European Policymakers Struggle to Lower Inflation to 2%
European stock market indexes rebounded as investors reacted to a fresh batch of economic news and corporate updates.
Benchmark indexes in Paris, Frankfurt, and London edged higher into record territory as investors shifted their attention from interest rate uncertainty to the upcoming earnings season.
The latest minutes of the rate-setting committee meeting showed policymakers saw a stronger case for lowering the interest rate as inflationary forces continue to ebb.
However, committee members noted the challenges of slowing inflation further after service inflation stayed at elevated levels for the last four months in a row.
"Services inflation, with the latest figure at 3.9%, had barely moved from the 4% recorded for November, which lent further support to the picture of “last mile” persistence in that component of inflation.
In January, around 90% of the service consumption basket had still been growing at an annual rate above 2%. The turnaround in services inflation had started late, only in July 2023, and services inflation had lost a mere 1.7 percentage points of the 4 percentage point increase observed since the start of the pandemic," noted the minutes of the meeting released by the European Central Bank on Thursday.
Given the large and rising weight of services in the euro area value added, this stickiness had significantly restrained the overall disinflation process.
Monetary policy transmission to services Inflation might be weaker and slower than in manufacturing, as services tend to be less capital-intensive and hence less exposed to changes in external financing conditions.
Eurozone Private Sector Activities Expanded for the First Time In Ten Months
The eurozone private sector's business activity expanded for the first time in ten months, according to the latest survey released by S&P Global on Thursday.
The HCOB Eurozone Composite PMI was revised upward to 50.3 in March from the initial estimate of 49.9 and higher than 49.2 in February.
The overall increase in business activity was modest because the weakness in manufacturing output continued to overshadow service sector activities.
Manufacturing output contracted at 46.1 compared to 46.5, and the service sector improved to 51.5 from 50.2 in February, respectively.
The index tracking expectation for future business activities reached a high not seen since February 2022, indicating a positive outlook in the coming months.
Producer Prices Extended Annual Decline to 10th Month
On the economic front, producer prices in the eurozone declined 8.3% in February after falling at an annual rate of 8.0% in January, Eurostat reported Thursday.
Producer prices, a measure of wholesale inflation, eased by 1.0% in February from the previous month after easing 0.9% in the previous month.
Producer prices declined on a monthly basis for the fourth month in a row and eased on an annual basis for the tenth month in a row.
The monthly decline in producer prices was the largest in February since May 2023, after energy prices fell at a faster pace of 3.5% compared to 3.0% in January and prices for intermediate goods held steady for the second consecutive month.
Producer prices, excluding volatile energy prices, inched higher by 0.1% following a 0.3% increase in January.
Europe Indexes and Yields
The DAX index increased by 0.2% to 18,402.43, the CAC-40 index fell by 0.02% to 8,151.55, and the FTSE 100 index inched higher by 0.5% to 7,975.89.
The yield on 10-year German bonds edged down to 2.38%; French bonds inched lower to 2.88%; the UK gilts edged lower to 4.07%; and Italian bonds inched higher to 3.76%.
The euro edged higher to $1.085, the British pound inched higher to $1.265, and the U.S. dollar edged higher to 90.61 Swiss cents.
Brent crude increased $0.54 to $89.01. a barrel, and the Dutch TTF natural gas rose by €0.26 to €26.23 per MWh.
Europe Stock Movers
DS Smith increased 1.7% to 409.60 pence after the company confirmed it is still in merger talks with the U.K.-listed and Austria-based Mondi Plc.
DS Smith is also evaluating a competitive bid from the U.S.-based International Paper, which valued the company at 415 pence per share of £5.72 billion, higher than the £5.1 billion offer from Mondi.
The packaging industry is going through a wave of consolidation after demand soared for packaging materials following the boom in pandemic-driven e-commerce.
Basilea Pharmaceutica AG jumped 7.2% to CHF 41.45 after the Switzerland-based pharmaceutical company received approval from the U.S. drug regulator for Zevtera, an antibiotic drug for the treatment of multiple infections.
Future Plc jumped 12.1% to 671.50 pence after the diversified specialist media company reported revenue growth in the second quarter.
The company reiterated its full-year fiscal 2024 outlook, citing continued improvement in its U.S. business.
Entain PLC rose 3.5% to 785.80 pence after sports betting and online gambling company Chairman of the Board Barry Gibson stepped down from the management position in September after spending four years in the office.
- Scott Peters
- 04 Apr, 2024
- New York City
Stocks advanced, Treasury yields held steady, and gold prices jumped to a record high as investors looked beyond rate jitters and dialed down rate-cut expectations.
The S&P 500 index increased 0.4% to 5,251.70, and the Nasdaq Composite rose 0.9% to 16,411.42.
The yield on 2-year Treasury notes edged lower to 4.70%, 10-year Treasury notes inched up to 4.39%, and 30-year Treasury bonds edged up to 4.53%.
Levi Strauss & Co. soared 10.5% to $22.05 after the denim apparel maker reported quarterly results that met market expectations.
Revenue in the fiscal first quarter ending on February 25 declined 7.8% to $1.56 billion, net income swung a loss of $10.6 million from a profit of $114.7 million, and diluted earnings per share were a loss of 3 cents compared to 29 cents a year ago.
The company declared a cash dividend of 12 cents per share payable on May 23 to shareholders on record on May 9.
Intuitive Machines jumped 2% to $6.16 after the company won a U.S. space agency's $30 million contract to build a lunar terrain vehicle.
ConAgra Brands jumped 4.9% to $30.50 after the company reported quarterly results that met market expectations.
Revenue in the fiscal third quarter declined 1.7% to $3.03 billion, net income declined 9.8% to $308.7 million from $341.7 million, and diluted earnings per share dropped to 64 cents from 71 cents a year ago.
Volvo SE gained 0.6% to SEK 288.50 after the vehicle maker reported a significant increase in sales in March and in the first quarter.
The Sweden-based vehicle maker, owned by China-based Geely, said the company sold 78,970 passenger cars in March, an increase of 25% from a year ago.
First-quarter vehicle sales soared 12% from a year ago to 182,687.
Electric vehicle sales in Europe advanced 34% in March and rose 22% in the first quarter; however, electric vehicle sales in China plunged 34%.
Lamb Weston Holdings plunged 18% to $83.44 after the potato processing company reported weaker-than-expected earnings due to the slower transition to a new computer system.
Revenue in the fiscal third quarter ending on February 25 increased 16% to $1.46 billion, net income fell to $146.1 million from $175.1 million, and diluted earnings per share dropped to $1.01 from $1.21 a year ago.
“The ERP transition temporarily reduced the visibility of finished goods inventories located at distribution centers, which affected our ability to fill customer orders,” the company highlighted in a statement to investors.
The lower visibility negatively impacted sales and margins.
Lamb Weston forecasts 2024 adjusted income between $5.50 and $5.65 a share and 2024 sales between $6.54 billion and $6.6 billion; both metrics are below Wall Street analyst expectations.
- Barry Adams
- 04 Apr, 2024
- New York City
Stocks on Wall Street bounced around amid interest rate uncertainty and rising commodity prices.
The S&P 500 index gained 0.4% and the Nasdaq Composite advanced 0.9% as the yield on the 10-year Treasury note hovered near a four-month high.
Investors scaled their rate-cut expectations after Federal Reserve Chair Jerome Powell said on Wednesday that more evidence is needed that inflation is moving toward the target level of 2% before policymakers can begin to cut rates.
Federal Reserve Bank of Atlanta president Raphael Bostic said in an interview with CNBC that only one rate cut is likely in 2024.
Investors have been digesting a flood of mixed economic news in the last two weeks, and the PCE price index showed it stayed well above the Fed's target rate in February.
Moreover, manufactured goods orders and construction spending also increased sharply from a year ago in February.
Initial Weekly Jobless Claims Rose to a 2-month High
U.S. initial jobless claims in the week ending March 30 rose by 9,000 to 221,000, according to the latest update released by the Department of Labor.
The initial claims rose to a two-month high, and continuing claims, which lag by a week, inched slightly lower to 1.79 million.
U.S. Trade Deficit Expanded to a 10-month High
The U.S. Commerce Department reported that the trade deficit rose by $1.3 billion from the previous month to $68.9 billion in February.
Exports of goods and services in February rose 2.3% to $263.0 billion, and imports advanced 2.2% to $331.9 billion.
The goods deficit decreased by $0.3 billion to $91.4 billion, and the services surplus fell by $1.6 billion to $22.5 billion.
U.S. Indexes and Yields
The S&P 500 index increased 0.4% to 5,251.70, and the Nasdaq Composite rose 0.9% to 16,411.42.
The yield on 2-year Treasury notes edged lower to 4.70%, 10-year Treasury notes inched up to 4.39%, and 30-year Treasury bonds edged up to 4.53%.
WTI crude oil increased $0.35 to $85.23 a barrel, and natural gas prices decreased 1 cent to $1.83 a thermal unit.
Gold decreased by $9.88 to $2,287.25 an ounce, and silver fell 11 cents to $26.99.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 104.05.
U.S. Stock Movers
Levi Strauss & Co. soared 10.5% to $22.05 after the denim apparel maker reported quarterly results that met market expectations.
Revenue in the fiscal first quarter ending on February 25 declined 7.8% to $1.56 billion, net income swung a loss of $10.6 million from a profit of $114.7 million, and diluted earnings per share were a loss of 3 cents compared to 29 cents a year ago.
The company declared a cash dividend of 12 cents per share payable on May 23 to shareholders on record on May 9.
Intuitive Machines jumped 2% to $6.16 after the company won a U.S. space agency's $30 million contract to build a lunar terrain vehicle.
ConAgra Brands jumped 4.9% to $30.50 after the company reported quarterly results that met market expectations.
Revenue in the fiscal third quarter declined 1.7% to $3.03 billion, net income declined 9.8% to $308.7 million from $341.7 million, and diluted earnings per share dropped to 64 cents from 71 cents a year ago.
Volvo SE gained 0.6% to SEK 288.50 after the vehicle maker reported a significant increase in sales in March and in the first quarter.
The Sweden-based vehicle maker, owned by China-based Geely, said the company sold 78,970 passenger cars in March, an increase of 25% from a year ago.
First-quarter vehicle sales soared 12% from a year ago to 182,687.
Electric vehicle sales in Europe advanced 34% in March and rose 22% in the first quarter; however, electric vehicle sales in China plunged 34%.
- Inga Muller
- 04 Apr, 2024
- Frankfurt
European markets edged higher but stayed near the flatline as investors reviewed the latest update on private sector activities in the eurozone and producer price inflation.
Producer price inflation extended its annual decline in February to the eighth month in a row due to the lower cost of energy.
The eurozone private sector's business activity expanded for the first time in ten months, according to the latest survey released by S&P Global on Thursday.
The DAX index increased by 0.01% to 18,369.64, the CAC-40 index rose by 0.1% to 8,158.65, and the FTSE 100 index inched higher by 0.4% to 7,970.61.
The yield on 10-year German bonds edged down to 2.38%; French bonds inched lower to 2.88%; the UK gilts edged lower to 4.07%; and Italian bonds inched higher to 3.76%.
DS Smith increased 1.7% to 409.60 pence after the company confirmed it is still in merger talks with the U.K.-listed and Austria-based Mondi Plc.
DS Smith is also evaluating a competitive bid from the U.S.-based International Paper, which valued the company at 415 pence per share of £5.72 billion, higher than the £5.1 billion offer from Mondi.
The packaging industry is going through a wave of consolidation after demand soared for packaging materials following the boom in pandemic-driven e-commerce.
Basilea Pharmaceutica AG jumped 7.2% to CHF 41.45 after the Switzerland-based pharmaceutical company received approval from the U.S. drug regulator for Zevtera, an antibiotic drug for the treatment of multiple infections.
Future Plc jumped 12.1% to 671.50 pence after the diversified specialist media company reported revenue growth in the second quarter.
The company reiterated its full-year fiscal 2024 outlook, citing continued improvement in its U.S. business.
Entain PLC rose 3.5% to 785.80 pence after sports betting and online gambling company Chairman of the Board Barry Gibson stepped down from the management position in September after spending four years in the office.
Volvo SE gained 0.6% to SEK 288.50 after the vehicle maker reported a significant increase in sales in March and in the first quarter.
The Sweden-based vehicle maker, owned by China-based Geely, said the company sold 78,970 passenger cars in March, an increase of 25% from a year ago.
First-quarter vehicle sales soared 12% from a year ago to 182,687.
Electric vehicle sales in Europe advanced 34% in March and rose 22% in the first quarter; however, electric vehicle sales in China plunged 34%.