- Barry Adams
- 13 Dec, 2024
- New York City
Stocks on Wall Street advanced following a down day in the previous session after tech stocks led the rebound.
The S&P 500 index gained 0.3%, and the Nasdaq Composite gained 0.7% after Broadcom posted a surge in revenue in its AI segment.
The two widely followed benchmark indexes are set to extend weekly gains to above 1% and stretch weekly advance to the fourth consecutive week.
Investors are worried that the recent market rally may have stretched valuation after consumer price inflation met expectations, but the core rate of inflation has stayed well above the Fed's target rate of 2% for several months.
Moreover, the acceleration in the producer price inflation suggested that goods prices are still rising, despite the Fed's increasing rates more than eleven times over 2022 and 2023.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.3% to 6,071.79, the Nasdaq Composite fell 0.1% to 20,001.43, and the Russell 2000 index fell by 1.4% to 2,361.08.
The yield on 2-year Treasury notes edged higher to 4.18%, 10-year Treasury notes inched up to 4.30%, and 30-year Treasury bonds increased to 4.52%.
WTI crude oil increased $0.03 to $70.32 a barrel, and natural gas prices edged down 5 cents to $3.32 a thermal unit.
Gold decreased by $10.88 to $2,710.88 an ounce, and silver fell by $0.05 to $31.87.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher by 0.05 to 106.77.
U.S. Stock Movers
RH jumped 13.5% to $432.99 after the home furnishing company lifted its fourth quarter and full-year outlook.
The retailer estimated revenue in the fourth quarter to rise between 18% and 20% and in the full year to advance between 6.8% and 7.2%.
Revenue in the third quarter ending on November 2 increased to $811.7 million from $751.2 million, net income swung to a profit of $33.2 million from a loss of $2.2 million, and diluted earnings per share were $1.66 compared to a loss of 12 cents a year earlier.
Broadcom Inc. soared 17.5% to $212.36 after the advanced semiconductor chipmaker reported better-than-expected fiscal fourth quarter earnings.
Total revenue in the fourth quarter soared 51% to $14.1 billion from $9.3 billion, net income advanced to $4.3 billion from $3.5 billion, and diluted earnings per share rose 90 cents from 83 cents a year earlier.
"Broadcom's fiscal year 2024 revenue grew 44% year-over-year to a record $51.6 billion, as infrastructure software revenue grew to $21.5 billion, on the successful integration of VMware," said Hock Tan, President and CEO.
"Semiconductor revenue was a record $30.1 billion, driven by AI revenue of $12.2 billion. AI revenue, which grew 220 percent year-on-year, was driven by our leading AI XPUs and Ethernet networking portfolio," added Tan.
The company guided fiscal first quarter revenue of $14.6 billion and estimated adjusted operating earnings of 66% of projected revenue, indicating rising operating margin because of the sale of higher-value chips.
The company declared a quarterly cash dividend of 59 cents per share payable on December 31 to shareholders on record on December 23.
In the previous quarter, the chipmaker reported lukewarm revenue when adjusted for the purchase of VMware.
Consolidated revenue in the third quarter, including the latest acquisition of VMware, soared 47% to $13.1 billion from $8.9 billion, and excluding VMware, it rose 4% from a year ago, respectively.
Net income swung to a loss of $1.9 billion from a profit of $3.3 billion, and diluted earnings per share were a loss of 40 cents compared to a profit of 77 cents a year earlier.
- Barry Adams
- 13 Dec, 2024
- New York City
Stocks on Wall Street advanced following a down day in the previous session after tech stocks led the rebound.
The S&P 500 index gained 0.3%, and the Nasdaq Composite gained 0.7% after Broadcom posted a surge in revenue in its AI segment.
The two widely followed benchmark indexes are set to extend weekly gains to above 1% and stretch weekly advance to the fourth consecutive week.
Investors are worried that the recent market rally may have stretched valuation after consumer price inflation met expectations, but the core rate of inflation has stayed well above the Fed's target rate of 2% for several months.
Moreover, the acceleration in the producer price inflation suggested that goods prices are still rising, despite the Fed's increasing rates more than eleven times over 2022 and 2023.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.3% to 6,071.79, the Nasdaq Composite fell 0.1% to 20,001.43, and the Russell 2000 index fell by 1.4% to 2,361.08.
The yield on 2-year Treasury notes edged higher to 4.18%, 10-year Treasury notes inched up to 4.30%, and 30-year Treasury bonds increased to 4.52%.
WTI crude oil increased $0.03 to $70.32 a barrel, and natural gas prices edged down 5 cents to $3.32 a thermal unit.
Gold decreased by $10.88 to $2,710.88 an ounce, and silver fell by $0.05 to $31.87.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher by 0.05 to 106.77.
U.S. Stock Movers
RH jumped 13.5% to $432.99 after the home furnishing company lifted its fourth quarter and full-year outlook.
The retailer estimated revenue in the fourth quarter to rise between 18% and 20% and in the full year to advance between 6.8% and 7.2%.
Revenue in the third quarter ending on November 2 increased to $811.7 million from $751.2 million, net income swung to a profit of $33.2 million from a loss of $2.2 million, and diluted earnings per share were $1.66 compared to a loss of 12 cents a year earlier.
Broadcom Inc. soared 17.5% to $212.36 after the advanced semiconductor chipmaker reported better-than-expected fiscal fourth quarter earnings.
Total revenue in the fourth quarter soared 51% to $14.1 billion from $9.3 billion, net income advanced to $4.3 billion from $3.5 billion, and diluted earnings per share rose 90 cents from 83 cents a year earlier.
"Broadcom's fiscal year 2024 revenue grew 44% year-over-year to a record $51.6 billion, as infrastructure software revenue grew to $21.5 billion, on the successful integration of VMware," said Hock Tan, President and CEO.
"Semiconductor revenue was a record $30.1 billion, driven by AI revenue of $12.2 billion. AI revenue, which grew 220 percent year-on-year, was driven by our leading AI XPUs and Ethernet networking portfolio," added Tan.
The company guided fiscal first quarter revenue of $14.6 billion and estimated adjusted operating earnings of 66% of projected revenue, indicating rising operating margin because of the sale of higher-value chips.
The company declared a quarterly cash dividend of 59 cents per share payable on December 31 to shareholders on record on December 23.
In the previous quarter, the chipmaker reported lukewarm revenue when adjusted for the purchase of VMware.
Consolidated revenue in the third quarter, including the latest acquisition of VMware, soared 47% to $13.1 billion from $8.9 billion, and excluding VMware, it rose 4% from a year ago, respectively.
Net income swung to a loss of $1.9 billion from a profit of $3.3 billion, and diluted earnings per share were a loss of 40 cents compared to a profit of 77 cents a year earlier.
- Scott Peters
- 13 Dec, 2024
- New York City
RH jumped 13.5% to $432.99 after the home furnishing company lifted its fourth quarter and full-year outlook.
The retailer estimated revenue in the fourth quarter to rise between 18% and 20% and in the full year to advance between 6.8% and 7.2%.
Revenue in the third quarter ending on November 2 increased to $811.7 million from $751.2 million, net income swung to a profit of $33.2 million from a loss of $2.2 million, and diluted earnings per share were $1.66 compared to a loss of 12 cents a year earlier.
Broadcom Inc. soared 17.5% to $212.36 after the advanced semiconductor chipmaker reported better-than-expected fiscal fourth quarter earnings.
Total revenue in the fourth quarter soared 51% to $14.1 billion from $9.3 billion, net income advanced to $4.3 billion from $3.5 billion, and diluted earnings per share rose 90 cents from 83 cents a year earlier.
"Broadcom's fiscal year 2024 revenue grew 44% year-over-year to a record $51.6 billion, as infrastructure software revenue grew to $21.5 billion, on the successful integration of VMware," said Hock Tan, President and CEO.
"Semiconductor revenue was a record $30.1 billion, driven by AI revenue of $12.2 billion. AI revenue, which grew 220 percent year-on-year, was driven by our leading AI XPUs and Ethernet networking portfolio," added Tan.
The company guided fiscal first quarter revenue of $14.6 billion and estimated adjusted operating earnings of 66% of projected revenue, indicating rising operating margin because of the sale of higher-value chips.
The company declared a quarterly cash dividend of 59 cents per share payable on December 31 to shareholders on record on December 23.
In the previous quarter, the chipmaker reported lukewarm revenue when adjusted for the purchase of VMware.
Consolidated revenue in the third quarter, including the latest acquisition of VMware, soared 47% to $13.1 billion from $8.9 billion, and excluding VMware, it rose 4% from a year ago, respectively.
Net income swung to a loss of $1.9 billion from a profit of $3.3 billion, and diluted earnings per share were a loss of 40 cents compared to a profit of 77 cents a year earlier.
- Scott Peters
- 13 Dec, 2024
- New York City
RH jumped 13.5% to $432.99 after the home furnishing company lifted its fourth quarter and full-year outlook.
The retailer estimated revenue in the fourth quarter to rise between 18% and 20% and in the full year to advance between 6.8% and 7.2%.
Revenue in the third quarter ending on November 2 increased to $811.7 million from $751.2 million, net income swung to a profit of $33.2 million from a loss of $2.2 million, and diluted earnings per share were $1.66 compared to a loss of 12 cents a year earlier.
Broadcom Inc. soared 17.5% to $212.36 after the advanced semiconductor chipmaker reported better-than-expected fiscal fourth quarter earnings.
Total revenue in the fourth quarter soared 51% to $14.1 billion from $9.3 billion, net income advanced to $4.3 billion from $3.5 billion, and diluted earnings per share rose 90 cents from 83 cents a year earlier.
"Broadcom's fiscal year 2024 revenue grew 44% year-over-year to a record $51.6 billion, as infrastructure software revenue grew to $21.5 billion, on the successful integration of VMware," said Hock Tan, President and CEO.
"Semiconductor revenue was a record $30.1 billion, driven by AI revenue of $12.2 billion. AI revenue, which grew 220 percent year-on-year, was driven by our leading AI XPUs and Ethernet networking portfolio," added Tan.
The company guided fiscal first quarter revenue of $14.6 billion and estimated adjusted operating earnings of 66% of projected revenue, indicating rising operating margin because of the sale of higher-value chips.
The company declared a quarterly cash dividend of 59 cents per share payable on December 31 to shareholders on record on December 23.
In the previous quarter, the chipmaker reported lukewarm revenue when adjusted for the purchase of VMware.
Consolidated revenue in the third quarter, including the latest acquisition of VMware, soared 47% to $13.1 billion from $8.9 billion, and excluding VMware, it rose 4% from a year ago, respectively.
Net income swung to a loss of $1.9 billion from a profit of $3.3 billion, and diluted earnings per share were a loss of 40 cents compared to a profit of 77 cents a year earlier.
- Inga Muller
- 13 Dec, 2024
- Frankfurt
Stock market indexes in Europe trimmed weekly gains, and investors reviewed the latest economic updates.
German trade surplus continues to shrink, and eurozone industrial production extended multi-month weakness.
The DAX index increased by 0.3% to 20,486.18; the CAC-40 index rose by 0.3% to 7,443.68; and the FTSE 100 index inched higher by 0.1% to 8,319.98.
The yield on 10-year German bonds edged higher to 2.22%, French bonds inched up to 2.98%, the UK gilts increased to 4.37%, and Italian bonds increased to 3.34%.
Swiss Re AG jumped 3.7% to CHF 132.50 after the reinsurance company said it is targeting after-tax income of 4.4 billion in 2025.
Munich Re AG soared 5.4% to €514.80 after the German reinsurance company estimated the group's 2025 revenue to reach €64 billion and net income of €6.0 billion.
Tullow Oil plc plunged 11% to 23.15 pence after the U.S.-based Kosmos Energy confirmed that the company is in "preliminary discussions" for a possible all-share takeover offer for the London-based oil explorer.
Pricer AB jumped 9.1% to SEK 13.22, and a Swedish electronic shelf labeling provider said its partner JRTech Solutions signed an agreement with Canada-based Sobeys to install 5 million digital labels.
Sobeys, Canada's family grocery store, operates about 1,600 stores across all 10 provinces under various brand names, including IGA, Safeway, Foodland, and Thrifty Foods.
- Inga Muller
- 13 Dec, 2024
- Frankfurt
Stock market indexes in Europe trimmed weekly gains, and investors reviewed the latest economic updates.
German trade surplus continues to shrink, and eurozone industrial production extended multi-month weakness.
The DAX index increased by 0.3% to 20,486.18; the CAC-40 index rose by 0.3% to 7,443.68; and the FTSE 100 index inched higher by 0.1% to 8,319.98.
The yield on 10-year German bonds edged higher to 2.22%, French bonds inched up to 2.98%, the UK gilts increased to 4.37%, and Italian bonds increased to 3.34%.
Swiss Re AG jumped 3.7% to CHF 132.50 after the reinsurance company said it is targeting after-tax income of 4.4 billion in 2025.
Munich Re AG soared 5.4% to €514.80 after the German reinsurance company estimated the group's 2025 revenue to reach €64 billion and net income of €6.0 billion.
Tullow Oil plc plunged 11% to 23.15 pence after the U.S.-based Kosmos Energy confirmed that the company is in "preliminary discussions" for a possible all-share takeover offer for the London-based oil explorer.
Pricer AB jumped 9.1% to SEK 13.22, and a Swedish electronic shelf labeling provider said its partner JRTech Solutions signed an agreement with Canada-based Sobeys to install 5 million digital labels.
Sobeys, Canada's family grocery store, operates about 1,600 stores across all 10 provinces under various brand names, including IGA, Safeway, Foodland, and Thrifty Foods.
- Bridgette Randall
- 13 Dec, 2024
- London
Stock market indexes across Europe struggled to advance but extended weekly gains for the fourth week in a row amid a raft of economic updates.
Benchmark indexes in Paris, Frankfurt, Milan, and London advanced and extended weekly gains a day after the European Central Bank trimmed its key lending rates and lowered its growth and inflation outlook.
The Elysee Palace said on Thursday evening that President Emmanuel Macron is expected to name the next prime minister of France on Friday.
Macron is struggling to form the next government after the historic collapse of the minority government over budget disagreements and leadership challenges.
France Confirms October Inflation
France's consumer price inflation was confirmed at 1.3% in November, slightly higher than 1.2% in October.
The statistical agency INSEE confirmed the preliminary inflation data released on November 29.
Eurozone Industrial Production Holds Steady
Industrial production in the Euro Area held steady in October, following a 1.5% decline in September, Eurostat reported Friday.
Among major economies in the eurozone, Germany recorded a decline of 1.1% in production, while France's output decreased by only 0.2%. Spain's production rose by 1%.
On an annual basis, industrial production decreased by 1.2% in October, easing from a fall of 2.2% in September, amid worries of export growth and weak domestic demand.
Germany's Trade Surplus Continues to Shrink in October
Germany's calendar and seasonally adjusted goods exports decreased 2.8% to €124.6 billion, and imports rose 1.7% to €111.2 billion, resulting in a 29.1% decrease in trade surplus to €13.4 billion.
German shipments to the U.S., the leading destination for the country's goods, fell 14.2% to €12.2 billion, according to the report released by Destatis.
Shipments to the People's Republic of China fell by 3.8% to €6.9 billion but rose to the UK by 2.1% to €6.5 billion.
Imports from China, the leading source of goods for Germany, decreased 3% to €13.7 billion; arrivals from the U.S. fell by 3.9% to €7.4 billion, and from the UK increased by 1.4% to €3.0 billion.
Germany's Wholesale Deflation Extends to Fourth Month
Germany's wholesale price inflation decreased 0.6% in November, slower than a decline of 0.8% in October, the Federal Statistical Office, or Destatis, reported Friday.
The wholesale prices have been on the slide since May 2023, and the latest fall was the weakest in four months.
Europe Indexes and Yields
The DAX index increased by 0.3% to 20,486.18; the CAC-40 index rose by 0.3% to 7,443.68; and the FTSE 100 index inched higher by 0.1% to 8,319.98.
The yield on 10-year German bonds edged higher to 2.22%, French bonds inched up to 2.98%, the UK gilts increased to 4.37%, and Italian bonds increased to 3.34%.
The euro edged higher to $1.05; the British pound inched up to $1.27; and the U.S. dollar advanced to 89.40 Swiss cents.
Brent crude increased $0.69 to $74.07 a barrel, and the Dutch TTF natural gas rose by €0.37 to €42.93 per MWh.
Europe Stock Movers
Swiss Re AG jumped 3.7% to CHF 132.50 after the reinsurance company said it is targeting after-tax income of 4.4 billion in 2025.
Munich Re AG soared 5.4% to €514.80 after the German reinsurance company estimated the group's 2025 revenue to reach €64 billion and net income of €6.0 billion.
Tullow Oil plc plunged 11% to 23.15 pence after the U.S.-based Kosmos Energy confirmed that the company is in "preliminary discussions" for a possible all-share takeover offer for the London-based oil explorer.
Pricer AB jumped 9.1% to SEK 13.22, and a Swedish electronic shelf labeling provider said its partner JRTech Solutions signed an agreement with Canada-based Sobeys to install 5 million digital labels.
Sobeys, Canada's family grocery store, operates about 1,600 stores across all 10 provinces under various brand names, including IGA, Safeway, Foodland, and Thrifty Foods.
- Bridgette Randall
- 13 Dec, 2024
- London
Stock market indexes across Europe struggled to advance but extended weekly gains for the fourth week in a row amid a raft of economic updates.
Benchmark indexes in Paris, Frankfurt, Milan, and London advanced and extended weekly gains a day after the European Central Bank trimmed its key lending rates and lowered its growth and inflation outlook.
The Elysee Palace said on Thursday evening that President Emmanuel Macron is expected to name the next prime minister of France on Friday.
Macron is struggling to form the next government after the historic collapse of the minority government over budget disagreements and leadership challenges.
France Confirms October Inflation
France's consumer price inflation was confirmed at 1.3% in November, slightly higher than 1.2% in October.
The statistical agency INSEE confirmed the preliminary inflation data released on November 29.
Eurozone Industrial Production Holds Steady
Industrial production in the Euro Area held steady in October, following a 1.5% decline in September, Eurostat reported Friday.
Among major economies in the eurozone, Germany recorded a decline of 1.1% in production, while France's output decreased by only 0.2%. Spain's production rose by 1%.
On an annual basis, industrial production decreased by 1.2% in October, easing from a fall of 2.2% in September, amid worries of export growth and weak domestic demand.
Germany's Trade Surplus Continues to Shrink in October
Germany's calendar and seasonally adjusted goods exports decreased 2.8% to €124.6 billion, and imports rose 1.7% to €111.2 billion, resulting in a 29.1% decrease in trade surplus to €13.4 billion.
German shipments to the U.S., the leading destination for the country's goods, fell 14.2% to €12.2 billion, according to the report released by Destatis.
Shipments to the People's Republic of China fell by 3.8% to €6.9 billion but rose 2.1% to €6.5 billion.
Imports from China, the leading source of goods for Germany, decreased 3% to €13.7 billion; arrivals from the U.S. fell by 3.9% to €7.4 billion, and from the UK increased by 1.4% to €3.0 billion.
Germany's Wholesale Deflation Extends to Fourth Month
Germany's wholesale price inflation decreased 0.6% in November, slower than a decline of 0.8% in October, the Federal Statistical Office, or Destatis, reported Friday.
The wholesale prices have been on the slide since May 2023, and the latest fall was the weakest in four months.
Europe Indexes and Yields
The DAX index increased by 0.3% to 20,486.18; the CAC-40 index rose by 0.3% to 7,443.68; and the FTSE 100 index inched higher by 0.1% to 8,319.98.
The yield on 10-year German bonds edged higher to 2.22%, French bonds inched up to 2.98%, the UK gilts increased to 4.37%, and Italian bonds increased to 3.34%.
The euro edged higher to $1.05; the British pound inched up to $1.27; and the U.S. dollar advanced to 89.40 Swiss cents.
Brent crude increased $0.69 to $74.07 a barrel, and the Dutch TTF natural gas rose by €0.37 to €42.93 per MWh.
Europe Stock Movers
Swiss Re AG jumped 3.7% to CHF 132.50 after the reinsurance company said it is targeting after-tax income of 4.4 billion in 2025.
Munich Re AG soared 5.4% to €514.80 after the German reinsurance company estimated the group's 2025 revenue to reach €64 billion and net income of €6.0 billion.
Tullow Oil plc plunged 11% to 23.15 pence after the U.S.-based Kosmos Energy confirmed that the company is in "preliminary discussions" for a possible all-share takeover offer for the London-based oil explorer.
Pricer AB jumped 9.1% to SEK 13.22, and a Swedish electronic shelf labeling provider said its partner JRTech Solutions signed an agreement with Canada-based Sobeys to install 5 million digital labels.
Sobeys, Canada's family grocery store, operates about 1,600 stores across all 10 provinces under various brand names, including IGA, Safeway, Foodland, and Thrifty Foods.
- Akira Ito
- 13 Dec, 2024
- Tokyo
Stock market indexes in Japan halted a four-day slide, and the yen remained in focus ahead of the Bank of Japan's rate decisions.
The Nikkei 225 stock average and Topix indexes dropped 1%, following the weakness in New York.
For the week, the Nikkei and the Topix indexes advanced 1.1%, tracking gains in tech stocks in the U.S. markets, but remained range bound ahead of the Bank of Japan's rate decisions next week.
On the economic front, the Bank of Japan's Tankan survey of large business sentiment increased to 14 in the fourth quarter, higher than 13 in the previous two consecutive quarters.
Capital expenditure by large firms in the current fiscal year ending in March is estimated to rise 11.3%, from the previous estimate of 10.6%.
Business sentiment strengthened among businesses active in the production of petroleum and coal, chemicals, paper & pulp, and general-purpose machinery.
The Japanese yen weakened to 152.77 against the U.S. dollar ahead of rate decisions by the Bank of Japan and the U.S. Federal Reserve next week.
The European Central Bank lowered its benchmark rate by 25 basis points to 3.0%, the fourth rate cut in 2024 amid a weakening economic backdrop in the currency union.
The Swiss National Bank cut its key lending rate by 50 basis points to 0.5%, and the central bank estimated annual economic growth to stay near 1%.
Japan Stock Movers
The Nikkei 225 Stock Average dropped 1% to 39,470.44, and the broader Topix index fell 0.95% to 2,746.48.
Mitsubishi UFJ Financial Group declined 1.1% to ¥1,849.50, Sumitomo Mitsui Financial Group dropped 1% to ¥1,849.50, and Mizuho Financial Group fell 0.8% to ¥3,817.0.
Heavy industry stocks were among the leading decliners after the release of the quarterly survey.
Kawasaki Heavy Industries Ltd. dropped 3.3% to ¥6,410.0, IHI Corp. fell 5.4% to ¥8,278.0, and Mitsubishi Heavy Industries fell 4.1% to ¥2,291.50.
Volatile semiconductor equipment and services provider declined following a weakness in tech stocks in overnight trading in New York.
Tokyo Electron fell 3.2% to ¥23,860.0, Advantest Corp. gained 5.8% to ¥9,380.0, and Screen Holdings eased 3.3% to ¥9,302.0.
- Akira Ito
- 13 Dec, 2024
- Tokyo
Stock market indexes in Japan halted a four-day slide, and the yen remained in focus ahead of the Bank of Japan's rate decisions.
The Nikkei 225 stock average and Topix indexes dropped 1%, following the weakness in New York.
For the week, the Nikkei and the Topix indexes advanced 1.1%, tracking gains in tech stocks in the U.S. markets, but remained range bound ahead of the Bank of Japan's rate decisions next week.
On the economic front, the Bank of Japan's Tankan survey of large business sentiment increased to 14 in the fourth quarter, higher than 13 in the previous two consecutive quarters.
Capital expenditure by large firms in the current fiscal year ending in March is estimated to rise 11.3%, from the previous estimate of 10.6%.
Business sentiment strengthened among businesses active in the production of petroleum and coal, chemicals, paper & pulp, and general-purpose machinery.
The Japanese yen weakened to 152.77 against the U.S. dollar ahead of rate decisions by the Bank of Japan and the U.S. Federal Reserve next week.
The European Central Bank lowered its benchmark rate by 25 basis points to 3.0%, the fourth rate cut in 2024 amid a weakening economic backdrop in the currency union.
The Swiss National Bank cut its key lending rate by 50 basis points to 0.5%, and the central bank estimated annual economic growth to stay near 1%.
Japan Stock Movers
The Nikkei 225 Stock Average dropped 1% to 39,470.44, and the broader Topix index fell 0.95% to 2,746.48.
Mitsubishi UFJ Financial Group declined 1.1% to ¥1,849.50, Sumitomo Mitsui Financial Group dropped 1% to ¥1,849.50, and Mizuho Financial Group fell 0.8% to ¥3,817.0.
Heavy industry stocks were among the leading decliners after the release of the quarterly survey.
Kawasaki Heavy Industries Ltd. dropped 3.3% to ¥6,410.0, IHI Corp. fell 5.4% to ¥8,278.0, and Mitsubishi Heavy Industries fell 4.1% to ¥2,291.50.
Volatile semiconductor equipment and services provider declined following a weakness in tech stocks in overnight trading in New York.
Tokyo Electron fell 3.2% to ¥23,860.0, Advantest Corp. gained 5.8% to ¥9,380.0, and Screen Holdings eased 3.3% to ¥9,302.0.
- Li Chen
- 13 Dec, 2024
- Hong Kong
Stock market indexes in China and Hong Kong plunged after the key policy meeting failed to provide additional clarity about fiscal stimulus measures.
The Hang Seng index and CSI 300 index dropped nearly 2% after the policymakers released another vague commitment to sustain economic growth, lacking concrete details and execution plans.
At the end of a two-day economic work conference, policymakers reiterated the need to increase government spending, issue more long-term bonds, and provide ample liquidity to bond markets.
However, those statements of commitment fell short of market expectations.
The yield on 10-year bonds declined for the seventh day in a row and fell to 1.77% amid persistent economic growth deceleration worries.
Over the last five weeks, foreign investors have been trimming exposure to Chinese stocks amid growing realization that Chinese leaders are lacking urgency in implementing fiscal stimulus measures announced in late September.
In addition, private companies are bracing for a sharp escalation in U.S. tariffs and trade barriers, which could shave off annual goods exports growth to less than 3% in 2025.
China Indexes and Stocks
The Hang Seng Index dropped 1.8% to 20,023.97, and the CSI 300 index fell 1.9% to 3,952.67.
Property developers led decliners in Shanghai and Hong Kong after the latest high-powered meeting chaired by President Xi Jinping failed to release concrete plans to revive the flailing residential property market.
Longfor Group Holdings Ltd. dropped 5.7% to HK $10.88, China Vanke decreased 6.2% to HK $6.24, and China Resources Land fell 2.6% to HK $23.40.
Tech stocks fell for the second day in a row amid worries of faltering consumer confidence and a lack of progress in alleviating high youth unemployment.
Alibaba Group dropped 1.3% to HK $86.85, Tencent Holdings declined 1.1% to HK $411.20, and Meituan eased 2.6% to HK $164.50.
- Li Chen
- 13 Dec, 2024
- Hong Kong
Stock market indexes in China and Hong Kong plunged after the key policy meeting failed to provide additional clarity about fiscal stimulus measures.
The Hang Seng index and CSI 300 index dropped nearly 2% after the policymakers released another vague commitment to sustain economic growth, lacking concrete details and execution plans.
At the end of a two-day economic work conference, policymakers reiterated the need to increase government spending, issue more long-term bonds, and provide ample liquidity to bond markets.
However, those statements of commitment fell short of market expectations.
The yield on 10-year bonds declined for the seventh day in a row and fell to 1.77% amid persistent economic growth deceleration worries.
Over the last five weeks, foreign investors have been trimming exposure to Chinese stocks amid growing realization that Chinese leaders are lacking urgency in implementing fiscal stimulus measures announced in late September.
In addition, private companies are bracing for a sharp escalation in U.S. tariffs and trade barriers, which could shave off annual goods exports growth to less than 3% in 2025.
China Indexes and Stocks
The Hang Seng Index dropped 1.8% to 20,023.97, and the CSI 300 index fell 1.9% to 3,952.67.
Property developers led decliners in Shanghai and Hong Kong after the latest high-powered meeting chaired by President Xi Jinping failed to release concrete plans to revive the flailing residential property market.
Longfor Group Holdings Ltd. dropped 5.7% to HK $10.88, China Vanke decreased 6.2% to HK $6.24, and China Resources Land fell 2.6% to HK $23.40.
Tech stocks fell for the second day in a row amid worries of faltering consumer confidence and a lack of progress in alleviating high youth unemployment.
Alibaba Group dropped 1.3% to HK $86.85, Tencent Holdings declined 1.1% to HK $411.20, and Meituan eased 2.6% to HK $164.50.
- Arun Goswami
- 13 Dec, 2024
- Mumbai
India's industrial production accelerated in October, and consumer price inflation edged lower in November after food price inflation slowed.
For the week, two benchmark indexes are set to close down more than 1.5%.
The Sensex index decreased by 0.03% to 81,511.29, and the Nifty index advanced by 0.1% to 24,626.10.
On the Mumbai stock exchange, 85 stocks traded at their 52-week highs, and 13 stocks traded at their 52-week lows.
Reliance Industries declined 0.7% to ₹1,253.60, and Russia's Rosneft agreed to supply 500,000 barrels of crude oil a day to the company's refinery.
Zomato Ltd. decreased 0.8% to ₹282.75, and the Goods and Services Tax Department in Thane demanded 803.4 crore of unpaid tax with interest and penalty.
NBCC (India) Ltd. declined 1.3% to ₹99.11, and the company was appointed as a project consultant to complete 16 real estate projects of Supertech Ltd.
Supertech, led by Ram Kishore Arora, has been operating under NCLT supervision for about two years, and the company defaulted on its term loans from Punjab and Sind Bank for more than six years.
The real estate company is in the process of completing 20,000 residential apartments in the National Capital Region after defaulting on loans totaling ₹1,588 crore.
Punjab & Sind Bank declined 1.3% to ₹51.81, and the financial services company plans to raise 3,000 crore through its first infrastructure bond.
Ashok Leyland Ltd. decreased 0.8% to ₹228.06, and the company said it received a ₹345.5 crore order for the supply of 1,475 passenger buses to Tamil Nadu State Transport Corporation.
- Arun Goswami
- 13 Dec, 2024
- Mumbai
India's industrial production accelerated in October, and consumer price inflation edged lower in November after food price inflation slowed.
For the week, two benchmark indexes are set to close down more than 1.5%.
The Sensex index decreased by 0.03% to 81,511.29, and the Nifty index advanced by 0.1% to 24,626.10.
On the Mumbai stock exchange, 85 stocks traded at their 52-week highs, and 13 stocks traded at their 52-week lows.
Reliance Industries declined 0.7% to ₹1,253.60, and Russia's Rosneft agreed to supply 500,000 barrels of crude oil a day to the company's refinery.
Zomato Ltd. decreased 0.8% to ₹282.75, and the Goods and Services Tax Department in Thane demanded 803.4 crore of unpaid tax with interest and penalty.
NBCC (India) Ltd. declined 1.3% to ₹99.11, and the company was appointed as a project consultant to complete 16 real estate projects of Supertech Ltd.
Supertech, led by Ram Kishore Arora, has been operating under NCLT supervision for about two years, and the company defaulted on its term loans from Punjab and Sind Bank for more than six years.
The real estate company is in the process of completing 20,000 residential apartments in the National Capital Region after defaulting on loans totaling ₹1,588 crore.
Punjab & Sind Bank declined 1.3% to ₹51.81, and the financial services company plans to raise 3,000 crore through its first infrastructure bond.
Ashok Leyland Ltd. decreased 0.8% to ₹228.06, and the company said it received a ₹345.5 crore order for the supply of 1,475 passenger buses to Tamil Nadu State Transport Corporation.
- Alexander Garcia
- 12 Dec, 2024
- Miami
An acceleration in producer price inflation put tech stocks on the back foot, and broader markets eased.
The S&P 500 index and the Nasdaq Composite declined around 0.2% after the producer price inflation was higher than anticipated.
Producer price inflation increased 0.4% in November from the previous month and accelerated from 0.3% in October, according to the latest data released by the U.S. Bureau of Labor Statistics.
Core producer price inflation, which excludes volatile food and energy prices, accelerated to a monthly 0.3% from 0.2% and stalled at an annual 3.4%.
On Wednesday, the government agency reported consumer prices accelerated in November, largely driven by higher costs of shelter, medical care, and vehicles.
Investors have bid up stocks in 2024 in the hopes that inflation is on a sustained downward path and likely to reach the Fed's target rate of 2% in the near future.
However, inflation has stalled near 3% for nearly six months and shows no sign of easing. In addition, most of the slowdown in inflation is reflecting a sharp fall in energy prices, which are not impacted by the Fed's actions.
Core consumer price inflation is likely to stay above 3% in 2025 and beyond for two reasons: first, because of wage inflation of 4%, and second, most service providers are still passing on higher prices to consumers at a faster than 3% annual rate.
U.S. Indexes and Treasury Yields
The S&P 500 index decreased 0.2% to 6,071.92, the Nasdaq Composite fell 0.2% to 19,995.63, and the Russell 2000 index declined by 0.8% to 2,376.42.
The yield on 2-year Treasury notes edged higher to 4.18%, 10-year Treasury notes inched up to 4.30%, and 30-year Treasury bonds increased to 4.52%.
WTI crude oil increased $0.09 to $70.38 a barrel, and natural gas prices edged up 12 cents to $3.50 a thermal unit.
Gold decreased by $35.98 to $2,684.98 an ounce, and silver fell by $0.85 to $31.03.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher by 0.07 to 106.79.
U.S. Stock Movers
Chewy Inc. decreased 3.3% to $31.44 after the company announced a fully underwritten stock offering of $500 million by a key shareholder.
Buddy Chester Sub LLC will receive all proceeds from the offering, and concurrently Chewy said it plans to acquire $50 million of its share directly from the investor.
Adobe Inc. dropped 10.6% to $491.50 after the software company issued a weaker-than-expected revenue outlook for the fiscal first quarter.
Total revenue in the fiscal fourth quarter ending in November increased to $5.6 million from $5.0 million, net income rose to $1.68 million from $1.48 million, and diluted earnings per share advanced to $3.79 from $3.23 a year earlier.
The company estimated fiscal first quarter revenue to range between $5.63 billion and $5.68 billion and earnings per share between $3.85 and $3.89.
European Markets Hold Steady After ECB Rate Decisions
Stock market indexes across Europe held steady after the European Central Bank lowered rates as expected.
The ECB lowered its key lending rate by 25 basis points to 3%, its fourth consecutive rate cut in 2024.
The central bank estimated inflation to decline at a gradual pace to 2.4% in 2004, 2.1% in 2025, and 1.9% in 2026.
The central bank also anticipated a gradual recovery in economic growth over the next three years, and GDP is expected to grow at 0.7% in 2024, 1.1% in 2025, and 1.6% in 2026.
The Euro Area is grappling with a looming trade war with the U.S. and China, political uncertainty in France and Germany, and slowing business activities in the currency union.
Meanwhile, investors are looking for a timetable for additional rate cuts over the next six months, and many market watchers are looking for at least four additional rate cuts of 25 basis points, bringing down the key rate to 2%.
Switzerland Lowers Rates by 50 Basis Points, Steepest Decline in 10 Years
The Swiss National Bank lowered its key lending rate by a whopping 50 basis points to 0.5%, as the central bank battles strong currency and rising economic uncertainty.
The central bank lowered its rate for the fourth consecutive meeting in a row and dropped the rates by the largest amount in ten years, bringing borrowing costs to the lowest level since November 2022.
The Swiss economy is highly dependent on goods and services exports, and the stronger currency has become a headwind for many exporters.
Policymakers also weighed annual economic growth of less than one percent against the rising geopolitical tensions and weakening demand growth outlook for the nation's premium goods.
Europe Indexes and Yields
The DAX index increased by 0.1% to 20,426.27; the CAC-40 index fell by 0.03% to 7,420.94; and the FTSE 100 index inched higher by 0.1% to 8,311.76.
The yield on 10-year German bonds edged higher to 2.15%, French bonds inched up to 2.90%, the UK gilts increased to 4.35%, and Italian bonds increased to 3.24%.
The euro edged higher to $1.05; the British pound inched up to $1.27; and the U.S. dollar eased to 88.66 Swiss cents.
Brent crude decreased $0.19 to $73.71 a barrel, and the Dutch TTF natural gas fell by €2.12 to €42.61 per MWh.
Europe Stock Movers
Mining companies advanced after China's political leaders agreed to increase the fiscal deficit ratio and issue new bonds to finance fiscal stimulus.
Antofagasta declined 1% to 1,745.0 pence, Anglo American edged up 0.1%, and Glencore dropped 0.3% to 382.0 pence.
Bodycote PLC jumped 0.8% to 669.27 pence after the thermal processing services provider expanded its stock repurchase plan by £30 million to £90 million.
SThree Plc plunged 22% to 279.25 pence after the specialist recruitment company estimated a sharp decline in profits.
Net fees for the fiscal year ending in November dropped 9% to £369.1 million, driven by a 7% fall in the contract segment, which represents 84% of net fees.
The annual revenue in the UK, U.S., and Germany declined between 12% and 14%.
The contract order book plunged 10% to £161 million.
The company estimated fiscal 2025 pre-tax profit to hover around £25 million, including a one-time charge of £7 million related to cost-cutting efforts.
Curry PLC advanced 13.5% to 89.74 pence after the electronics retailer reported a narrower loss in the first half, and the company reiterated its annual outlook.
Revenue in the first half increased 1% to £3.9 billion, net loss shrank to 8 million from 39 million, and diluted loss per share eased to 0.7 pence from 3.3 pence a year earlier.
"Trading during the six weeks since the period end has remained in line with the Board's expectations, and the Group expects to see growth in profits and free cash flow for the year," according to the company's trading update released to investors.
Japan Indexes Near Multi-Month Highs as Rate Decisions Approach
Stock market indexes in Tokyo advanced, tracking gains in New York as investors debated rate outlook in Japan.
The Nikkei 225 stock average and the broader Topix index gained around 1% amid uncertainty surrounding the Bank of Japan's rate policy.
Later today, the European Central Bank is widely expected to lower its benchmark lending rates by 25 basis points, and the Federal Reserve is also expected to cut its policy rate by the same.
However, traders are not sure if the Bank of Japan will raise rates at the end of its policy meeting next week.
Governor of the Bank of Japan Kazuo Ueda has supported the gradual increase in interest rates following the sustained increase in inflation and other mixed economic signals.
Sentiment among large export-driven businesses has remained weak amid demand growth slowdown in the U.S. and China, and real household spending has struggled to advance in 2024.
However, Governor Ueda and other policymakers have favored a gradual increase in rates so as not to destabilize stock and currency markets.
The Japanese yen weakened to 152.75 against the U.S. dollar, and currency traders are divided about the BoJ's rate actions next week.
Japan Stock Movers
The Nikkei 225 Stock Average increased 1.2% to 39,849.14, and the broader Topix index gained 0.9% to 2,773.03.
Retail stocks advanced following the weakening of the yen.
Fast Retailing Co. Ltd. increased 0.9% to ¥54,470.0, Seven & I Holdings Co. Ltd. decreased 1.6% to ¥2,510.50, Isetan Mitsukoshi Holdings Ltd. gained 1% to ¥2,311.0, and Takashimaya advanced 0.7% to ¥1,250.0.
Financial stocks were among the most actively traded stocks in Tokyo as the yen resumed its downward slide ahead of the BoJ's rate decisions.
Sumitomo Mitsui Financial Group decreased 0.1% to ¥3,807.0, Mitsubishi UFJ Financial gained 0.5% to ¥1,851.50, and Mizuho Financial Group advanced 0.2% to ¥3,847.0.
Osaka Gas Co. Ltd. rose 1.7% to ¥3,268.0, Chubu Electric Power jumped 4.5% to ¥1,624.0, Furukawa Electric advanced 1.6% to ¥6,606.0, and Mitsubishi Electric jumped 2% to ¥2,698.50.
Speculators Drive Up China Indexes Ahead of Economic Policy Announcements
Stock market indexes in China and Hong Kong advanced ahead of announcements at the conclusion of a key economic policy meeting.
The Hang Seng index gained 1.4%, and the CSI 300 index gained 0.7% as investors raised expectations for additional stimulus measures with a clear timetable for implementation.
The yield on China's 10-year bonds edged lower for the seventh day in a row and hovered near 1.813%, and the yuan eased to 7.20 against the U.S. dollar.
The Hang Seng index rebounded about 40% from its low on September 11 over the next three weeks following a raft of economic stimulus measures announced by the People's Bank of China and political leaders.
However, those measures failed to revive consumer confidence and property market activities, and benchmark indexes trimmed gains by half over the next two months.
Investors are skeptical that Chinese leaders are serious about implementing broad and structural economic reforms in the imminent future amid rising government debt and lack of demand growth from consumers.
A statement at the end of a two-day policy meeting later today is likely to show additional measures agreed by top political leaders.
China Stock Movers
The Hang Seng index increased 1.4% to 20,436.94, and the CSI 300 index advanced 0.7% to 4,018.29.
China Mengniu Dairy advanced 8.2% to HK $19.02, China Resources Beer Holdings Co. Ltd jumped 7.7% to HK $28.40, and Haidilao Pot jumped 5.4% to HK $17.84.
BYD gained 2.2% to HK $279.60, Li Auto soared 2.9% to HK $91.15, and Xpeng advanced 1.3% to HK $51.25.
Alibaba Group Holding gained 2.6% to HK $88.45, Tencent Holdings increased 2.4% to HK $419.80, and Meituan expanded 1.7% to HK $169.80.