- Barry Adams
- 14 Mar, 2024
- New York City
Stocks on Wall Street advanced, and tech stocks led the gainers as the market rally broadened to the energy and materials sectors.
The S&P 500 index and the Nasdaq Composite advanced more than 0.4%, and Treasury yields edged slightly higher after investors reviewed the latest retail sales and wholesale price data.
Weaker U.S. Retail Sales Bounce In February
Seasonally adjusted retail and food services sales, but not adjusted for prices, increased 0.6% from the previous month and rose 1.5% from a year ago in February.
Despite elevated inflation and rising interest rates, consumer spending is holding up, but consumers are sticking to basic necessities and avoiding discretionary items.
Nonstore retail sales increased 6.4%, and food services and drinking place sales advanced 6.3% from a year ago.
Retail sales in February rose by 0.6% on a monthly basis, and January's monthly sales decline was lowered to 1.1% from the previous estimate of a 0.8% fall.
Total retail sales over the three-month period to February 2024, which covers the critical holiday period, rose 2.1% from the same period a year ago.
Producer Price Inflation Accelerates In February
The producer price index for the final demand increased by 0.6% from the previous month in February, the U.S. Bureau of Labor Statistics reported Thursday.
The annual measure of wholesale inflation accelerated to 1.6% in the month from 0.9% in January after high energy prices drove goods prices to increase at the fastest pace in six months.
Goods prices increased 1.2%, and the cost of services edged up 0.3%.
However, the core rate of inflation, which excludes volatile energy and food prices, rose at a slower pace of 0.3% after rising 0.5% in the previous month.
U.S. Indexes and Yields
The S&P 500 index increased 0.1% to 5,173.03, and the Nasdaq Composite fell 0.4% to 16,196.39.
The yield on 2-year Treasury notes increased to 4.63%, 10-year Treasury notes inched up to 4.19%, and 30-year Treasury bonds edged down to 4.35%.
WTI crude oil increased $0.77 to $80.49 a barrel, and natural gas prices increased 1 cent to $1.65 a thermal unit.
Gold decreased by $7.34 to $2,167.14 an ounce, and silver rose 6 cents to $24.91.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 102.84.
U.S. Stock Movers
Robinhood Markets soared 12.4% to $19.30 after the online brokerage firm reported monthly operating statistics for February 2024 and said assets under custody increased 16% from the previous month.
SentinelOne dropped 8.4% to $25.39 despite the cybersecurity firm reporting better-than-expected fourth quarter revenue and earnings.
Dollar General rose 5.7% to $167.21 after the deep discount retailer reported better-than-expected holiday quarter sales and issued an annual earnings outlook ahead of expectations.
The retailer estimated 2024 earnings per share to fall between $6.80 and $7.55, on the back of sales growth between 6.0% and 6.7%.
DICK's Sporting Goods rose 4.9% to $197.0 after the athletic goods retailer posted record quarterly sales in the fiscal fourth quarter.
Net sales in the holiday quarter ending on February 3rd increased 7.85 to $3.9 billion from $3.6 billion, net income advanced 26% to $296 million from $236 million, and diluted earnings per share rose to $3.57 from $2.60 a year ago.
The company estimated fiscal 2024 earnings per share to range between $12.85 and $13.25 and estimated same-store sales to rise between 1% and 2%.
- Inga Muller
- 14 Mar, 2024
- Frankfurt
Stock market indexes in Germany and France traded at new record intra-day highs, and crude oil prices rose to a 4-month high on rising tensions in the Middle East and lower crude oil inventories in the U.S.
The DAX index increased by 0.2% to 18,003.06, the CAC-40 index rose by 0.9% to 8,207.69, and the FTSE 100 index inched lower by 0.1% to 7,767.24.
The yield on 10-year German bonds edged up to 2.36%; French bonds inched higher to 2.79%; the UK gilts edged higher to 4.02%; and Italian bonds inched lower to 3.56%.
K&S AG increased 5.7% to €14.03 after the Germany-based Europe's largest manufacturer of potash and salt miner reported better-than-expected annual results and guidance for the current year.
Encavis AG soared 25% to €16.94 after the U.S.-based private equity firm KKR launched a 2.8 billion takeover offer for the German independent power generator.
The renewable power producer operates more than 300 solar parks and wind farms in 12 countries in Europe.
RWE AG gained 3.5% to €32.71 after the German power generator and trader reiterated its annual outlook.
Hapag-Lloyd fell 1.1% to €132.80 after the Germany-based container shipping company issued an earnings warning for the current year.
Lanxess AG plunged 8.6% to €23.89 after the specialty chemicals maker based in Germany reported a wider fourth-quarter loss.
EasyJet declined 2.2% to 525.20 pence after the discount airline completed the sale of a €850 million secured bond maturing in 2031 with an interest coupon of 3.75%.
The company plans to use part of the proceeds of the offering to repay its existing debt, which will mature in 18 months.
With the post-pandemic recovery, the company has repaid £1.6 billion and deleveraged its balance sheet.
EasyJet bonds are expected to be rated Baa2 (with a stable outlook) by Moody's and BBB (with a positive outlook) by Standard & Poor's, with over 200 investors participating in the issue.
- Bridgette Randall
- 14 Mar, 2024
- Frankfurt
European stock market indexes advanced, crude oil prices jumped, and the euro held steady amid rising tensions in the Middle East.
Benchmark indexes in Paris and Frankfurt traded at new record highs as investors overlooked interest rate uncertainties.
The European Central Bank policymakers are sending signals that an imminent interest rate cut is less likely, but there is a growing possibility of a rate cut later in the year.
"It's perhaps more probable in June, and we are very pragmatic, but that will depend on the data," Bank of France Governor Francois Villeroy de Galhau said on France Info radio.
The ECB's chief economist, Philip Lane, also stressed not to lower rates too soon in an interview with the financial news channel CNBC.
“We’ve been on hold since last September since a substantial hiking cycle; we do have to take our time to get that right, from holding to dialing back restrictions,” Lane told CNBC’s Steve Sedgwick.
The European Central Bank lifted its key lending rates ten times from near zero to above 4% between July 2022 and September 2023, but inflation is still above the target rate of 2%.
Consumer inflation in the eurozone has declined to 2.6% in February and has fallen over the last fifteen months after peaking at 10.6% in October 2022, but the decline is largely driven by the sharp fall in energy prices and by the actions of the central bank.
In other economic news, Spain's statistical agency confirmed the softening of inflation to a six-month low in February, to 2.8% from 3.4% in January.
The EU harmonized inflation also dropped to a six-month low of 2.9%, as estimated, and was down from 3.5% in January, the National Statistics Institute reported Thursday.
Europe Indexes and Yields
The DAX index increased by 0.2% to 18,003.06, the CAC-40 index rose by 0.9% to 8,207.69, and the FTSE 100 index inched lower by 0.1% to 7,767.24.
The yield on 10-year German bonds edged up to 2.36%; French bonds inched higher to 2.79%; the UK gilts edged higher to 4.02%; and Italian bonds inched lower to 3.56%.
The euro edged higher to $1.093, the British pound inched higher to $1.281, and the U.S. dollar held steady at 87.95 Swiss cents.
Brent crude increased $0.66 to $84.67 a barrel, and the Dutch TTF natural gas decreased by €0.08 to €24.82 per MWh.
Europe Stock Movers
K&S AG increased 5.7% to €14.03 after the Germany-based Europe's largest manufacturer of potash and salt miner reported better-than-expected annual results and guidance for the current year.
Encavis AG soared 25% to €16.94 after the U.S.-based private equity firm KKR launched a 2.8 billion takeover offer for the German independent power generator.
The renewable power producer operates more than 300 solar parks and wind farms in 12 countries in Europe.
RWE AG gained 3.5% to €32.71 after the German power generator and trader reiterated its annual outlook.
Hapag-Lloyd fell 1.1% to €132.80 after the Germany-based container shipping company issued an earnings warning for the current year.
Lanxess AG plunged 8.6% to €23.89 after the specialty chemicals maker based in Germany reported a wider fourth-quarter loss.
EasyJet declined 2.2% to 525.20 pence after the discount airline completed the sale of a €850 million secured bond maturing in 2031 with an interest coupon of 3.75%.
The company plans to use part of the proceeds of the offering to repay its existing debt, which will mature in 18 months.
With the post-pandemic recovery, the company has repaid £1.6 billion and deleveraged its balance sheet.
EasyJet bonds are expected to be rated Baa2 (with a stable outlook) by Moody's and BBB (with a positive outlook) by Standard & Poor's, with over 200 investors participating in the issue.
- Arjun Pandit
- 14 Mar, 2024
- Mumbai
Asian stock markets lacked momentum, and investors stayed cautious in China ahead of the release of earnings announcements from major companies next week.
Moreover, annual wage negotiations in Japan, known as Shunto, dominated market sentiment after several large corporations agreed to significant wage increases for the second year in a row, raising hopes of rate action by the Bank of Japan.
Spring Wage Negotiations Dominate Market Sentiment in Tokyo
Market indexes in Tokyo rebounded from morning losses driven by weakness in tech stocks following the decline in New York in overnight trading.
Stocks struggled to gain traction, and the yen traded around 147 against the U.S. dollar amid widespread speculation that the Bank of Japan is likely to end its negative interest rate policy next week.
Japan is the only developed country with negative interest rates after keeping rates near zero for more than two decades.
Investors also keenly awaited the details of annual wage negotiations between the large Japanese companies and unions after Toyota Motor agreed to increase wage demand by more than 5% for the second year in a row.
The Toyota agreement generally sets the tone for other automakers and leads Japanese companies to finalize their wage agreements.
Toyota agreed to the largest wage increase since 1999 and accepted the union's demand for a monthly increase between ¥7,940 ($54) and ¥28,440 ($194).
Nissan Motor also agreed to the monthly wage hike demand of ¥18,000, or $123.
Nippon Steel, JFE Steel, Kobe Steel, Honda Motor, Mazda, and Japan Airlines are some of the other leading companies meeting or exceeding workers' unions higher wage demands for the second year in a row.
Real wages in Japan have been stagnant for more than two decades, and companies are willing to provide nominal wage increases of as much as 12% amid labor shortages and rising inflation.
Toyota Motor closed nearly unchanged at ¥3,444.0, Honda Motor advanced 1.1% to ¥1,751.50, and Nissan Motor advanced 2.2% to ¥563.10.
The Nikkei 225 Stock Average gained 0.2% to 38,782.48, and the Topix index jumped 0.4% to 2,658.07.
Diversified conglomerates Marubeni, Itochu, Mitsubishi, and Mitsui & Company gained between 0.7% and 2.2%.
Semiconductor stocks led decliners, and Tokyo Electron, Advantest, Screen Holdings, and Disco Corp. fell between 1% and 3.5%.
Caution Prevailed In China Trading Ahead of Earnings Releases
Stocks in Shanghai and Hong Kong were under pressure for the second day in a row ahead of a string of earnings announcements next week and rising tensions between China and the U.S.
The CSI 300 index decreased 0.06%, and the Hang Seng index declined 0.5% to 16,984.44.
About 30 companies included in the widely followed Hang Seng index are scheduled to release earnings next week, and investors turned cautious amid economic uncertainties.
AIA Group decreased 4.4% to HK$62.0 after the insurance company's 2023 earnings met market expectations.
AIA said 2023 earnings increased 15% to $5.76 billion, or 32.68 cents, in a filing with the Hong Kong Stock Exchange.
AIA, one of the largest travel insurance providers, benefited last year after the Hong Kong government relaxed inbound travel restrictions following three years of border closures during the coronavirus pandemic.
Tech stocks were among the leading decliners after the U.S. House of Representatives approved a bill that could force China-based ByteDance to divest its stake in the popular short video sharing app TikTok.
The move follows after Chinese security agencies stepped up arbitrary enforcement of the recently expanded espionage rules on foreign companies operating in China.
Tencent Holdings, Alibaba.com Group, JD.com, and Baidu Inc. dropped between 0.5% and 1.2%.
Property companies were in focus in the hopes that China-controlled funds would step up investing in struggling real estate developers.
Moreover, Hangzhou city loosened its restrictions on the sale of existing homes, and Guangdong province capital Guangzhou approved a second list of 116 properties that are likely to receive financial help and support for the completion and sale of apartments.
Longfor Group, China Resources Land, and China Vanke jumped between 2% and 4% on the hopes of more financial measures from the government-controlled entities.
India Indexes Struggle Amid Stretched Valuation
India stocks traded down, and market indexes extended weekly losses amid worries of tighter regulatory scrutiny in small and mid-cap stocks.
The Sensex and the Nifty indexes declined and extended 2-day losses to more than 1.4%.
Sebi chairman Madhabi Puri Buch highlighted the need to crack down on market manipulation activities targeting small and mid-cap stocks.
Puri's comments sent market indexes down by more than 1% in Wednesday's trading.
Market sentiment was cautious for the second consecutive day amid ongoing global interest rate uncertainties, stretched domestic market valuations, and a lack of additional net flows from foreign investors.
Moreover, international companies have stepped up selling stakes in their Indian subsidiaries to take advantage of sky-high valuations.
British American Tobacco was the latest company to announce the sale of a stake in its Indian unit, ITC.
The Sensex index decreased 0.2% to 72,570.10, and the Nifty index edged down 0.1% to 21,982.55.
On the Mumbai stock exchange, 13 stocks traded at their 52-week highs and 59 stocks traded at their 52-week lows.
Reliance Industries declined 2.6% to ₹2,873.20, and the company agreed to acquire the remaining 13% stake held by the U.S.-based Paramount Global in Viacom18 Media Pvt Ltd. for ₹4,286 crore, or $517 million.
Tata Motors decreased 4.3% to ₹973.15, and the company signed a preliminary agreement with the Tamil Nadu government to invest 9,000 crore, or $1.1 billion, in a vehicle manufacturing facility.
- Arun Goswami
- 14 Mar, 2024
- Mumbai
Stocks in Mumbai struggled to gain traction in early trading on growing worries about stretched market valuations and the possibilities of greater regulatory scrutiny of small and mid cap stock trading.
The Sensex index decreased 0.2% to 72,570.10, and the Nifty index edged down 0.1% to 21,982.55.
On the Mumbai stock exchange, 13 stocks traded at their 52-week highs and 59 stocks traded at their 52-week lows.
Reliance Industries declined 2.6% to ₹2,873.20, and the company agreed to acquire the remaining 13% stake held by the U.S.-based Paramount Global in Viacom18 Media Pvt Ltd. for ₹4,286 crore.
Hindustan Aeronautics dropped 7.2% to ₹3,032.95, and the Ministry of Defense signed two contracts worth 8,073 crore for the purchase of advanced 34 helicopters.
Som Distillers declined 7.9% to ₹221.0, and the company's board is scheduled to meet on April 2 to discuss a stock split proposal.
KEC International fell 6.1% to ₹690.95, and the company said its various business units received orders worth ₹2,257 crore.
Grasim Industries declined 1.9% to ₹2,142.05, and the finance committee of the company's board approved the proposal to raise 1,250 crore through a non-convertible debenture offering.
DLF fell 4.4% to ₹826.0, and the company agreed to sell a land parcel of 4.67 acres worth 735 crore to Cholamandalam Investment and Finance.
Tata Motors decreased 4.3% to ₹973.15, and the company signed a preliminary agreement with the Tamil Nadu government to invest 9,000 crore in a vehicle manufacturing facility.
PC Jeweller Ltd. gained 4.4% to ₹61.35 after the State Bank of India accepted the company's settlement proposal to clear outstanding payments.
- Barry Adams
- 13 Mar, 2024
- New York City
Stocks traded in a narrow range, and benchmark indexes hugged the flatline as investors debated interest rate paths.
The S&P 500 index was nearly unchanged after the market rally in the previous session lifted the index to a new record high.
Investors have generally welcomed the recent reports on inflation, the job market, and factory orders.
Inflation has been cooling over the last nine months, but that cooling trend is generally reflective of lower energy prices.
Despite the Federal Reserve lifting rates eleven times between March 2022 and September 2023, inflation is still above the Fed's target rate of 2% and housing prices are still rising across the nation.
Moreover, the Fed has no plans or tools to bring prices back to the pre-pandemic level of 2019, and policymakers are still looking for prices to continue to rise at least 2% or faster in the future.
Home prices are up between 50% and 300%, food prices are up at least 100%, and transportation costs are up by at least 80% over the last three years.
Yet, the Federal Reserve is looking to lower interest rates as early as June, which is most likely to fuel another round of price increases for homes, food, and automobiles.
Turning our attention to stocks, the 4-month market rally has broadened beyond tech stocks to healthcare, industrial, transportation, and retailers.
The S&P 500 index and the Nasdaq Composite have advanced more than 8% in the year so far to the close of Tuesday's trading, following the 24% and 43% surge in 2023, respectively.
U.S. Indexes and Yields
The S&P 500 index increased 0.04% to 5,176.60, and the Nasdaq Composite fell 0.5% to 16,180.22.
The yield on 2-year Treasury notes increased to 4.53%, 10-year Treasury notes inched up to 4.09%, and 30-year Treasury bonds edged down to 4.26%.
WTI crude oil increased $1.98 to $79.53 a barrel, and natural gas prices increased 3 cents to $1.67 a thermal unit.
Gold decreased by $17.44 to $2,175.44 an ounce, and silver rose 76 cents to $24.98.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 102.94.
U.S. Stock Movers
Coinbase declined 1.7% to $251.90 after the company announced its plans to raise $1 billion through a convertible bond offering.
Petco Health & Wellness advanced 5% to $2.69 after the pet food retailer reported better-than-expected financial results in the fiscal fourth quarter.
Dollar Tree dropped 13% to $136.0 after the deep discount retailer reported weaker-than-expected quarterly results.
The retailer also announced plans to close 1,000 underperforming stores.
CAC-40 In Paris Close at New Record High, DAX Hovers Near High
European stock market indexes advanced, and investors looked beyond interest rate uncertainties.
Benchmark indexes in Paris traded at new record highs, and the reference index in London inched higher after the UK's economy rebounded modestly in January.
Market sentiment in Frankfurt was cautious amid worries of interest rate path and persistent worries of weak domestic consumer demand.
Retail sales in eurozone has struggled after consumers retrenched to basic necessities and avoided discretionary items amid elevated interest rates and inflation.
UK GDP Slightly Rebounded In January
Gross domestic product increased by 0.2% in January, reversing a 0.1% decrease in December after construction and service activities expanded.
The UK's economy has been struggling amid weak consumer demand and muted business activities, and the economy slipped into a technical recession in the second half of 2023.
For the three months to January, the UK's economy shrank by 0.1%, the Office for National Statistics reported Wednesday.
Germany's Wholesale Price Decline Accelerated
Germany's wholesale price decline accelerated in January, confirming the slowing inflation trend in the largest economy in the eurozone.
Wholesale prices declined 3.0% in January, steeper than the 2.7% fall in December, the Federal Statistical Institute reported Wednesday.
Eurozone Industrial Output Dropped In January
Industrial output in the eurozone declined sharply in January after production of capital goods plunged, Eurostat reported Wednesday.
Industrial production plunged 3.2% from the previous month and 6.7% from a year ago in January, reversing the 1.6% monthly growth in December.
Capital goods production plunged 14.5% from the previous month and decreased 12.1% from a year ago, and monthly output of durable goods declined 1.2% and non-durable goods fell 0.2%.
The decline in industrial output was the steepest since last year's March, on the persistent weakness in capital goods, durable and non-durable goods.
Europe Indexes and Yields
The DAX index decreased by 0.01% to 17,961.38, the CAC-40 index rose by 0.6% to 8,137.58, and the FTSE 100 index inched higher by 0.3% to 7,772.17.
The yield on 10-year German bonds edged up to 2.31%; French bonds inched higher to 2.76%; the UK gilts edged higher to 3.96%; and Italian bonds inched lower to 3.59%.
The euro edged higher to $1.093, the British pound inched higher to $1.278, and the U.S. dollar held steady at 87.82 Swiss cents.
Brent crude increased $1.80 to $83.82 a barrel, and the Dutch TTF natural gas decreased by €0.21 to €24.57 per MWh.
Europe Stock Movers
Sandoz Group declined 0.1% to CHF 27.76 after the generic drug maker said core net income in 2023 declined to $953 million from $1.2 billion a year ago.
Inditex rose 5.6% to €43.40 after the apparel retailer reported higher sales and pre-tax profit in 2023.
Volkswagen Group decreased 0.7% to €120.0 despite the German vehicle maker reporting strong financial results in 2023.
Investors are worried that rising competition in China and in the company's domestic market from Chinese suppliers of electric vehicles is likely to negatively impact earnings in 2024.
Adidas AG decreased 0.5% to €193.72 after the German athletic shoe maker reported an annual loss in 2023.
Advanced Medical Solutions Group gained 1.7% to 214.08 pence after the UK-based company agreed to acquire Peters Surgical for a maximum price of 141.4 million.
The company agreed to make an initial cash payment of €132.5 million on a debt-free and cash-free basis and an earnout of up to €8.9 million, approximately £7.6 million, payable on delivery of US regulatory approvals, achievement of fiscal year 2024 revenue and gross margin targets, and satisfying certain inventory and tax conditions.
Markets in China and Japan Diverge
Asian markets traded mixed after the latest U.S. inflation report suggested that the U.S. Federal Reserve is more likely to keep rates higher at the end of its policy meeting on March 19.
In overnight trading, benchmark indexes in New York advanced more than 1% after February's consumer price inflation met investors' expectations.
In Asia, the Nikkei 225 Stock Average declined 0.4%, the benchmark indexes in Shanghai fell 0.3% but in Hong Kong gained 0.4%, and the KOSPI index in Seoul added 0.3%.
Tech Stocks in Tokyo Edged Lower, Investors Look Ahead of Rate Decision
Benchmark indexes in Tokyo traded down, and semiconductor stocks led the decliners on the worry that the recent monthslong rally may have stretched valuation too far.
On the other hand, investors welcomed the rise in the producer price inflation data released on Tuesday.
Japan's producer price inflation rose 0.6% from a year ago in February or gained 0.2% from the previous month, the Bank of Japan reported.
The rise in producer prices follows the increase in consumer prices in the Tokyo metropolitan area, indicating inflation may be on the path to the 2% target set by the central bank.
Investors are keenly awaiting the monetary policy outcome of the Bank of Japan on Wednesday, March 19, amid rising hopes that the central bank may lay the groundwork for lifting interest rates.
Japan is the only developed nation in the world with negative interest rates, and investors are hoping that the central bank is ready to end its ultra-loose monetary policy.
The Nikkei 225 Stock Average fell 0.4% to 38,717.18, and the Topix index dropped 0.2% to 2,652.04.
Semiconductor stocks rebounded following the gains in overnight trading in New York.
Advantest, Screen Holdings, Tokyo Electron, Disco Corp., and SoftBank gained between 2% and 3%.
Panasonic, Mitsubishi Electric, and Canon declined between 0.5% and 2%, but vehicle makers Toyota, Honda, and Nissan reversed morning losses to close up between 1% and 3%.
Bargain Hunters Return to China Amid Low Valuations
Market sentiment in Shanghai and Hong Kong was driven by bargain hunters and corporate buybacks, as well as persistent worries about property market weakness and weak consumer sentiment.
Chinese stock market indexes are down for the fourth year in a row after foreign portfolio investors continue to lighten their holdings and foreign direct investment plunged following the protracted downturn in the property market, persistent worries of intellectual theft, and rising personal security concerns after the government's expansion of espionage laws.
Moreover, the recently concluded Chinese lawmakers annual parliamentary convention failed to make significant announcements to stabilize financial markets.
The CSI 300 index decreased 0.6% to 3,576.31, and the Hang Seng index added 0.3% to 17,138.75.
Hong Kong stocks advanced for the fourth day in a row after the listed companies ramped up their stock buybacks to take advantage of their beaten-down stocks.
The latest surge is the longest market rally since the five-day advance in October.
Electric vehicle makers BYD gained 0.4%, Li Auto advanced 4%, but Xiaomi Corp. declined 0.3%.
AIA Group advanced more than 1% ahead of the company's annual results on Thursday, and yesterday the company confirmed it purchased its stock worth HK$12.7 million.
Cathay Pacific Airways jumped 6.5% to HK$9.24 after the company reported a sharp jump in revenue and swung to profit in 2023.
Cathay Pacific Traffic Rebounds
The Hong Kong-based airline said 2023 revenue jumped 85.1% to HK$94.5 million, and net income swung to a profit of HK$9.78 billion from a loss of HK$6.62 billion in 2022.
The airline has been struggling to expand capacity amid a shortage of pilots and a slow recovery in passenger demand, but the return to profitability allowed the company to declare a cash dividend of 43 Hong Kong cents per share.
Passengers carried by the airlines jumped more than fivefold to 17.98 million in 2023 from 2.8 million, and air cargo delivered soared 19.6% to 1.38 million tons.
India's Consumer Price Inflation Held Steady, Industrial Production Moderated
Stocks in Mumbai faced headwinds in trading as investors reviewed the latest updates on inflation and industrial production.
Benchmark indexes plunged more than 1% on the worries that securities regulators may step up trading oversight amid worries market manipulation by brokers and promoters.
On the economic front, retail inflation in India held steady in February and stayed within the range set by the Reserve Bank of India.
Consumer price inflation in February held at 5.1% and stayed in the tolerance range between 2% and 6% for the fourth month in a row.
Volatile fresh vegetables, vegetables, and pulses contributed to the food price inflation acceleration to 8.9% from 8.3% in the previous month, said the statistical agency, the Ministry of Statistics and Programme Implementation.
In other economic news, industrial output decreased moderately to 3.8% in January from 4.2% in December.
Mining production rose 5.9%, manufacturing output increased 3.2%, and electricity surged 5.6%, according to the preliminary estimate released by the statistical agency.
India's industrial production index has three components, with 77.6% weight assigned to manufacturing, 14.3% to mining, and 8% to electricity.
The Sensex index decreased 1.2% to 72,761.89, and the Nifty index dropped 1.5% to 21,997.70.
On the Mumbai stock exchange, 97 stocks traded at their 52-week highs and 253 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds increased to 7.03%, and the Indian rupee strengthened to ₹82.79 against the U.S. dollar.
- Scott Peters
- 13 Mar, 2024
- New York City
Benchmark indexes rested after the S&P500 index closed at a new record high in the previous session.
The S&P 500 index decreased 0.1% to 5,170.25, and the Nasdaq Composite fell 0.5% to 16,180.22.
The yield on 2-year Treasury notes increased to 4.53%, 10-year Treasury notes inched up to 4.09%, and 30-year Treasury bonds edged down to 4.26%.
Coinbase declined 1.7% to $251.90 after the company announced its plans to raise $1 billion through a convertible bond offering.
Petco Health & Wellness advanced 5% to $2.69 after the pet food retailer reported better-than-expected financial results in the fiscal fourth quarter.
Dollar Tree dropped 13% to $136.0 after the deep discount retailer reported weaker-than-expected quarterly results.
The retailer also announced plans to close 1,000 underperforming stores.
Intel declined 1.1% to $44.71 after reports suggested the company is likely to get less-than-expected federal funding.
The U.S. Department of Defense has scrapped a $2.5 billion grant to the chip giant and asked the U.S. Commerce Department to shoulder the entire $3.5 billion in proposed funding for the company.
The news was first reported by Bloomberg News but could not be verified by Ticker.com.
3M Company increased 3.8% to $44.71 after the diversified conglomerate revised its earnings per share outlook to as high as $2.20 from the previous range between $2.0 and $2.15.
The company attributed the increase in earnings to higher interest payments from debt transactions related to the spinoff of its healthcare division.
The company is set to spin off its healthcare division, Solventum, on April 1.
The company also announced Bill Brown as its new chief executive, starting May 1.
The former chief executive of L3 Harris Technologies will replace current chief Mike Roman, who will remain executive chairman of the board.
- Barry Adams
- 13 Mar, 2024
- New York City
Stocks traded in a narrow range, and benchmark indexes hugged the flatline as investors debated interest rate paths.
The S&P 500 index was nearly unchanged after the market rally in the previous session lifted the index to a new record high.
The 4-month market rally has broadened beyond tech stocks to healthcare, industrial, transportation, and retailers.
The S&P 500 index and the Nasdaq Composite have advanced more than 8% in the year so far, following the 24% and 43% surge in 2023, respectively.
U.S. Indexes and Yields
The S&P 500 index decreased 0.1% to 5,170.25, and the Nasdaq Composite fell 0.5% to 16,180.22.
The yield on 2-year Treasury notes increased to 4.53%, 10-year Treasury notes inched up to 4.09%, and 30-year Treasury bonds edged down to 4.26%.
WTI crude oil decreased $0.13 to $77.83 a barrel, and natural gas prices increased 5 cents to $1.81 a thermal unit.
Gold decreased by $7.22 to $2,179.44 an ounce, and silver rose 2 cents to $24.45.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 102.94.
U.S. Stock Movers
Coinbase declined 1.7% to $251.90 after the company announced its plans to raise $1 billion through a convertible bond offering.
Petco Health & Wellness advanced 5% to $2.69 after the pet food retailer reported better-than-expected financial results in the fiscal fourth quarter.
Dollar Tree dropped 13% to $136.0 after the deep discount retailer reported weaker-than-expected quarterly results.
The retailer also announced plans to close 1,000 underperforming stores.
- Inga Muller
- 13 Mar, 2024
- Frankfurt
Benchmark indexes in Europe advanced, Germany's wholesale price inflation decline accelerated in January, and eurozone industrial output dropped on the weakness in capital goods production.
The DAX index increased by 0.1% to 17,976.13, the CAC-40 index rose by 0.4% to 8,123.63, and the FTSE 100 index inched higher by 0.2% to 7,759.53.
The yield on 10-year German bonds edged up to 2.31%; French bonds inched higher to 2.76%; the UK gilts edged higher to 3.96%; and Italian bonds inched lower to 3.59%.
The euro edged higher to $1.093, the British pound inched higher to $1.278, and the U.S. dollar held steady at 87.82 Swiss cents.
Sandoz Group declined 0.1% to CHF 27.76 after the generic drug maker said core net income in 2023 declined to $953 million from $1.2 billion a year ago.
Inditex rose 5.6% to €43.40 after the apparel retailer reported higher sales and pre-tax profit in 2023.
Volkswagen Group decreased 0.7% to €120.0 despite the German vehicle maker reporting strong financial results in 2023.
Investors are worried that rising competition in China and in the company's domestic market from Chinese suppliers of electric vehicles is likely to negatively impact earnings in 2024.
Adidas AG decreased 0.5% to €193.72 after the German athletic shoe maker reported an annual loss in 2023.
Advanced Medical Solutions Group gained 1.7% to 214.08 pence after the UK-based company agreed to acquire Peters Surgical for a maximum price of 141.4 million.
The company agreed to make an initial cash payment of €132.5 million on a debt-free and cash-free basis and an earnout of up to €8.9 million, approximately £7.6 million, payable on delivery of US regulatory approvals, achievement of fiscal year 2024 revenue and gross margin targets, and satisfying certain inventory and tax conditions.
- Bridgette Randall
- 13 Mar, 2024
- Frankfurt
European stock market indexes advanced, and investors looked beyond interest rate uncertainties.
Benchmark indexes in Paris and Frankfurt traded at new record highs, and the reference index in London inched higher after the UK's economy rebounded modestly in January.
UK GDP Slightly Rebounded In January
Gross domestic product increased by 0.2% in January, reversing a 0.1% decrease in December after construction and service activities expanded.
The UK's economy has been struggling amid weak consumer demand and muted business activities, and the economy slipped into a technical recession in the second half of 2023.
For the three months to January, the UK's economy shrank by 0.1%, the Office for National Statistics reported Wednesday.
Germany's Wholesale Price Decline Accelerated
Germany's wholesale price decline accelerated in January, confirming the slowing inflation trend in the largest economy in the eurozone.
Wholesale prices declined 3.0% in January, steeper than the 2.7% fall in December, the Federal Statistical Institute reported Wednesday.
Eurozone Industrial Output Dropped In January
Industrial output in the eurozone declined sharply in January after production of capital goods plunged, Eurostat reported Wednesday.
Industrial production plunged 3.2% from the previous month and 6.7% from a year ago in January, reversing the 1.6% monthly growth in December.
Capital goods production plunged 14.5% from the previous month and decreased 12.1% from a year ago, and monthly output of durable goods declined 1.2% and non-durable goods fell 0.2%.
The decline in industrial output was the steepest since last year's March, on the persistent weakness in capital goods, durable and non-durable goods.
Europe Indexes and Yields
The DAX index increased by 0.1% to 17,976.13, the CAC-40 index rose by 0.4% to 8,123.63, and the FTSE 100 index inched higher by 0.2% to 7,759.53.
The yield on 10-year German bonds edged up to 2.31%; French bonds inched higher to 2.76%; the UK gilts edged higher to 3.96%; and Italian bonds inched lower to 3.59%.
The euro edged higher to $1.093, the British pound inched higher to $1.278, and the U.S. dollar held steady at 87.82 Swiss cents.
Brent crude increased $1.25 to $83.14 a barrel, and the Dutch TTF natural gas decreased by €0.02 to €24.76 per MWh.
Europe Stock Movers
Sandoz Group declined 0.1% to CHF 27.76 after the generic drug maker said core net income in 2023 declined to $953 million from $1.2 billion a year ago.
Inditex rose 5.6% to €43.40 after the apparel retailer reported higher sales and pre-tax profit in 2023.
Volkswagen Group decreased 0.7% to €120.0 despite the German vehicle maker reporting strong financial results in 2023.
Investors are worried that rising competition in China and in the company's domestic market from Chinese suppliers of electric vehicles is likely to negatively impact earnings in 2024.
Adidas AG decreased 0.5% to €193.72 after the German athletic shoe maker reported an annual loss in 2023.
Advanced Medical Solutions Group gained 1.7% to 214.08 pence after the UK-based company agreed to acquire Peters Surgical for a maximum price of 141.4 million.
The company agreed to make an initial cash payment of €132.5 million on a debt-free and cash-free basis and an earnout of up to €8.9 million, approximately £7.6 million, payable on delivery of US regulatory approvals, achievement of fiscal year 2024 revenue and gross margin targets, and satisfying certain inventory and tax conditions.
- Arjun Pandit
- 13 Mar, 2024
- Mumbai
Asian markets traded mixed after the latest U.S. inflation report suggested that the U.S. Federal Reserve is more likely to keep rates higher at the end of its policy meeting on March 19.
In overnight trading, benchmark indexes in New York advanced more than 1% after February's consumer price inflation met investors' expectations.
In Asia, the Nikkei 225 Stock Average declined 0.4%, the benchmark indexes in Shanghai fell 0.3% but in Hong Kong gained 0.4%, and the KOSPI index in Seoul added 0.3%.
Tech Stocks in Tokyo Edged Lower, Investors Look Ahead of Rate Decision
Benchmark indexes in Tokyo traded down, and semiconductor stocks led the decliners on the worry that the recent monthslong rally may have stretched valuation too far.
On the other hand, investors welcomed the rise in the producer price inflation data released on Tuesday.
Japan's producer price inflation rose 0.6% from a year ago in February or gained 0.2% from the previous month, the Bank of Japan reported.
The rise in producer prices follows the increase in consumer prices in the Tokyo metropolitan area, indicating inflation may be on the path to the 2% target set by the central bank.
Investors are keenly awaiting the monetary policy outcome of the Bank of Japan on Wednesday, March 19, amid rising hopes that the central bank may lay the groundwork for lifting interest rates.
Japan is the only developed nation in the world with negative interest rates, and investors are hoping that the central bank is ready to end its ultra-loose monetary policy.
The Nikkei 225 Stock Average fell 0.4% to 38,717.18, and the Topix index dropped 0.2% to 2,652.04.
Semiconductor stocks rebounded following the gains in overnight trading in New York.
Advantest, Screen Holdings, Tokyo Electron, Disco Corp., and SoftBank gained between 2% and 3%.
Panasonic, Mitsubishi Electric, and Canon declined between 0.5% and 2%, but vehicle makers Toyota, Honda, and Nissan reversed morning losses to close up between 1% and 3%.
Bargain Hunters Return to China Amid Low Valuations
Market sentiment in Shanghai and Hong Kong was driven by bargain hunters and corporate buybacks, as well as persistent worries about property market weakness and weak consumer sentiment.
Chinese stock market indexes are down for the fourth year in a row after foreign portfolio investors continue to lighten their holdings and foreign direct investment plunged following the protracted downturn in the property market, persistent worries of intellectual theft, and rising personal security concerns after the government's expansion of espionage laws.
Moreover, the recently concluded Chinese lawmakers annual parliamentary convention failed to make significant announcements to stabilize financial markets.
The CSI 300 index decreased 0.6% to 3,576.31, and the Hang Seng index added 0.3% to 17,138.75.
Hong Kong stocks advanced for the fourth day in a row after the listed companies ramped up their stock buybacks to take advantage of their beaten-down stocks.
The latest surge is the longest market rally since the five-day advance in October.
Electric vehicle makers BYD gained 0.4%, Li Auto advanced 4%, but Xiaomi Corp. declined 0.3%.
AIA Group advanced more than 1% ahead of the company's annual results on Thursday, and yesterday the company confirmed it purchased its stock worth HK$12.7 million.
Cathay Pacific Airways jumped 6.5% to HK$9.24 after the company reported a sharp jump in revenue and swung to profit in 2023.
Cathay Pacific Traffic Rebounds
The Hong Kong-based airline said 2023 revenue jumped 85.1% to HK$94.5 million, and net income swung to a profit of HK$9.78 billion from a loss of HK$6.62 billion in 2022.
The airline has been struggling to expand capacity amid a shortage of pilots and a slow recovery in passenger demand, but the return to profitability allowed the company to declare a cash dividend of 43 Hong Kong cents per share.
Passengers carried by the airlines jumped more than fivefold to 17.98 million in 2023 from 2.8 million, and air cargo delivered soared 19.6% to 1.38 million tons.
India's Consumer Price Inflation Held Steady, Industrial Production Moderated
Stocks in Mumbai faced headwinds in early trading as investors reviewed the latest updates on inflation and industrial production.
Retail inflation in India held steady in February and stayed within the range set by the Reserve Bank of India.
Consumer price inflation in February held at 5.1% and stayed in the tolerance range between 2% and 6% for the fourth month in a row.
Volatile fresh vegetables, vegetables, and pulses contributed to the food price inflation acceleration to 8.9% from 8.3% in the previous month, said the statistical agency, the Ministry of Statistics and Programme Implementation.
In other economic news, industrial output decreased moderately to 3.8% in January from 4.2% in December.
Mining production rose 5.9%, manufacturing output increased 3.2%, and electricity surged 5.6%, according to the preliminary estimate released by the statistical agency.
India's industrial production index has three components, with 77.6% weight assigned to manufacturing, 14.3% to mining, and 8% to electricity.
The Sensex index increased 0.01% to 73,516.42, and the Nifty index edged up 0.01% to 22,334.45.
On the Mumbai stock exchange, 37 stocks traded at their 52-week highs and 105 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds increased to 7.03%, and the Indian rupee strengthened to ₹82.79 against the U.S. dollar.
- Arun Goswami
- 13 Mar, 2024
- Mumbai
Stocks in Mumbai lacked direction, retail inflation in February held steady, and industrial production moderated in January on the weakness in metals and paper product manufacturing.
The Sensex index increased 0.01% to 73,516.42, and the Nifty index edged up 0.01% to 22,334.45.
On the Mumbai stock exchange, 37 stocks traded at their 52-week highs and 105 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds increased to 7.03%, and the Indian rupee strengthened to ₹82.79 against the U.S. dollar.
Glenmark Life Sciences increased 2% to ₹737.85 after Nirma completed the purchase of a 75% stake in the company.
Vedanta declined 0.8% to ₹269.80, and the mining company was fined ₹77.62 crore by the securities regulator for the company's delay in paying dividends between January 2014 and June 2017 to UK-based Cairn Energy PLC.
In addition, the SEBI also barred the company promoter, Anil Agarwal, and the entire company board from accessing capital markets for two months.
HG Infra Engineering gained 0.7% to ₹909.50 after the company was awarded a 709 crore project for laying tracks in Bihar by the East Central Railway.
Likhitha Infrastructure added 4.3% to ₹254.10 after the company won a ₹106 crore order from Hindustan Petroleum Corporation Limited.
Shalby gained 0.6% to ₹231.65 after the multi-specialty hospital said it plans to acquire a 100% stake in Healers Hospital Private Limited for ₹104 crore.