- Scott Peters
- 11 Oct, 2023
- New York City
Benchmark indexes advanced for the third day in a row and crude oil prices edged slightly lower amid escalating tensions in the Middle East after Israel prepares for a military offensive in occupied Gaza.
The S&P 500 index increased 0.9% to 4,375.96 and the Nasdaq Composite rose 1.1% to 13,635.62.
The yield on 2-year Treasury notes decreased to 4.99%, 10-year Treasury notes inched lower to 4.59% and 30-year Treasury bonds edged down to 4.75%.
Humana Inc declined 1.2% to $494.0 after the health insurance company said chief executive Bruce Broussard will step down in the second-half of 2024.
The company named health care industry veteran Jim Rechtin as President and Chief Operating Officer effective January 8, 2024, as part of a long-planned CEO transition and Rechtin will assume chief executive's role after Broussard steps down.
Sherwin-Williams Company was unchanged at $252.0 and the company said President Heidi G Petz will assume additional role of chief executive from the start of 2024.
Novo Nordisk AS jumped 3.4% to $96.34 after the Danish company said it will stop kidney trials earlier because of promising results.
The company's drug therapy Ozempic uses active ingredient semaglutide, which the company also uses in the making of its weight-loss drug Wegovy.
After the Novo Nordisk's news, Davita Inc plunged 18% to $54.58 and Fresenius Medical Care dropped 16.7% to $17.45.
Pioneer Natural Resources Company jumped 1.9% to $241.79 after the company agreed to be acquired by Exxon Mobil in an all-stock merger for $253 a share or $60 billion.
- Barry Adams
- 11 Oct, 2023
- New York City
Market indexes headed higher after Treasury yields edged lower for the fourth day in a row.
The S&P 500 index jumped 0.4% and the Nasdaq Composite index advanced 0.6% after the yield on 10-year U.S. Treasury notes declined 12 basis points.
Positive market sentiment was also supported after Exxon Mobil announced a $60 billion deal to acquire Pioneer Natural Resources and double its energy production in the Permian Basin.
On the economic front, the producer price index rose 0.5% in September from the previous month, and slower than 0.7% in August, the U.S. Bureau of Labor Statistics reported Wednesday.
However, wholesale inflation on an annual basis accelerated to 2.2% in the month from 2.0% in the previous month and advanced for the third month in a row.
Investors are also awaiting the release of the Federal Reserve's policy meeting minutes later in the afternoon.
Market indexes are likely to trade volatile ahead of the release of September's consumer price inflation report on Thursday.
U.S. Indexes & Yields
The S&P 500 index increased 0.9% to 4,375.96 and the Nasdaq Composite rose 1.1% to 13,635.62.
The yield on 2-year Treasury notes decreased to 4.99%, 10-year Treasury notes inched lower to 4.59% and 30-year Treasury bonds edged down to 4.75%.
Crude oil decreased $0.89 to $85.07 a barrel and natural gas prices increased 8 cents to $3.29 a thermal unit.
The dollar index edged higher to 105.68, the level last seen in November 2022 and extended gains from the low of 99.85 on July 13, 2023.
U.S. Stock Movers
Humana Inc declined 1.2% to $494.0 after the health insurance company said chief executive Bruce Broussard will step down in the second-half of 2024.
The company named health care industry veteran Jim Rechtin as President and Chief Operating Officer effective January 8, 2024, as part of a long-planned CEO transition and Rechtin will assume chief executive's role after Broussard steps down.
Sherwin-Williams Company was unchanged at $252.0 and the company said President Heidi G Petz will assume additional role of chief executive from the start of 2024.
Novo Nordisk AS jumped 3.4% to $96.34 after the Danish company said it will stop kidney trials earlier because of promising results.
The company's drug therapy Ozempic uses active ingredient semaglutide, which the company also uses in the making of its weight-loss drug Wegovy.
After the Novo Nordisk's news, Davita Inc plunged 18% to $54.58 and Fresenius Medical Care dropped 16.7% to $17.45.
Pioneer Natural Resources Company jumped 1.9% to $241.79 after the company agreed to be acquired by Exxon Mobil in an all-stock merger for $253 a share or $60 billion.
- Inga Muller
- 11 Oct, 2023
- Frankfurt
European market indexes struggled to get traction and bond yields edged lower
The DAX index decreased 0.01% to 15,423.79, the CAC-40 index fell 0.6% to 7,121.63 and the FTSE 100 index advanced 0.1% to 7,636.36.
The yield on 10-year German bonds decreased to 2.70%, French bonds traded lower to 3.27%, the UK gilts edged down to 4.32% and Italian bonds rose to 4.68%.
FirstGroup plc added 4.4% to 153.0 pence after the UK-based bus and rail group lifted its annual profit outlook.
Marston's Plc declined 4.3% to 27.60 pence despite the pub operator reporting an 11% rise in sales in the fiscal year ending in September.
Travis Perkins Plc dropped 5.7% to 759.60 pence after the U.K.'s largest distributor of building materials said annual earnings are likely to be below its forecast.
"With commodity deflation expected to continue and the exit rate from the third quarter indicating further challenging conditions for the balance of the year," the company said in a regulatory filing.
The company forecasted its adjusted operating profit in the range of £175 million to £195 million for the full-year.
Pagegroup dropped 4.0% to 407.0 pence after the UK-based recruitment company said its annual profits are likely to fall by a third because of ongoing macroeconomic headwinds in the UK, U.S. and Asia.
Accor SA advanced 1.4% to €31.98 after the French hospitality group launched a €400 million stock repurchase plan.
LVMH dropped 6.0% to €689.90 after the French luxury goods maker reported lower sales growth in the third quarter, prompting worries of an end of the post-pandemic luxury boom.
LVMH said third quarter sales growth slowed to 9% from 17% in the second quarter and wine and spirit business revenue plunged 14% from a year ago.
Luxury peers Kering SA and Hermes International declined 1.5%.
- Bridgette Randall
- 11 Oct, 2023
- Frankfurt
Stocks in Europe hovered near flatline as investors prepared for a barrage of earnings next week.
Market indexes in London, Paris and Frankfurt lacked direction and investors debated interest rate paths amid resurgent crude oil and natural gas prices.
Central bank policymakers are sending mixed signals about the future direction and level of interest rates.
Policymakers stress their commitments in lowering inflation but show no urgency or set a timetable to bring down inflation, and at the same time inflationary forces are spreading across the wider areas of economy.
Longer inflation stays elevated, harder it will become to dislodge without dipping the economy into a severe recession.
Europe Indexes & Yields
The DAX index decreased 0.01% to 15,423.79, the CAC-40 index fell 0.6% to 7,121.63 and the FTSE 100 index advanced 0.1% to 7,636.36.
The yield on 10-year German bonds decreased to 2.70%, French bonds traded lower to 3.27%, the UK gilts edged down to 4.32% and Italian bonds rose to 4.68%.
The euro edged lower to a three-month low to $1.06, the British pound to $1.222 and the U.S. dollar fetched 90.32 Swiss cents.
Brent crude decreased $0.35 to $87.29 a barrel and the Dutch TTF natural gas edged higher by €0.75 to €48.70 per MWh.
Europe Stock Movers
FirstGroup plc added 4.4% to 153.0 pence after the UK-based bus and rail group lifted its annual profit outlook.
Marston's Plc declined 4.3% to 27.60 pence despite the pub operator reporting an 11% rise in sales in the fiscal year ending in September.
Travis Perkins Plc dropped 5.7% to 759.60 pence after the U.K.'s largest distributor of building materials said annual earnings are likely to be below its forecast.
"With commodity deflation expected to continue and the exit rate from the third quarter indicating further challenging conditions for the balance of the year," the company said in a regulatory filing.
The company forecasted its adjusted operating profit in the range of £175 million to £195 million for the full-year.
Pagegroup dropped 4.0% to 407.0 pence after the UK-based recruitment company said its annual profits are likely to fall by a third because of ongoing macroeconomic headwinds in the UK, U.S. and Asia.
Accor SA advanced 1.4% to €31.98 after the French hospitality group launched a €400 million stock repurchase plan.
LVMH dropped 6.0% to €689.90 after the French luxury goods maker reported lower sales growth in the third quarter, prompting worries of an end of the post-pandemic luxury boom.
Luxury peers Kering SA and Hermes International declined 1.5%.
- Barry Adams
- 10 Oct, 2023
- New York City
Market sentiment recovered and stocks scaled higher for the second day in a row this week after investors shifted focus to the start of earnings season.
Stocks on Wall Street turned higher after Treasury yields edged lower and crude oil prices eased but investors took bets on bank stocks ahead of the release of earnings later in the week.
While world financial markets focused on the fast evolving deadly conflict between Israel and Hamas, investors feared that neighboring oil producing countries may be drawn in the conflict.
The worries of oil supply disruption receded on the fifth day of the conflict but natural gas prices soared for the second day in Europe after Israel asked Chevron to shut natural gas production for safety reasons.
Tech stocks led gainers on Wall Street and in broad rally benchmark indexes jumped more than 1% by midday.
U.S. bond market was closed on Monday to observe Columbus Day and bond investors reacted for the first time today after the flare up of Israel-Hamas conflict in the Middle East.
At the time of rising geopolitical tensions, investors sought safety in U.S. Treasury bonds, driving bond prices higher and lowering bond yields.
U.S. Indexes & Yields
The S&P 500 index increased 0.7% to 4,366.39 and the Nasdaq Composite rose 0.7% to 13,586.58.
The yield on 2-year Treasury notes decreased to 4.94%, 10-year Treasury notes inched lower to 4.64% and 30-year Treasury bonds edged down to 4.8%.
Crude oil decreased $0.28 to $86.09 a barrel and natural gas prices increased 1 cent to $3.38 a thermal unit.
The dollar index edged higher to 105.83, the level last seen in November 2022 and extended gains from the low of 99.85 on July 13, 2023.
U.S. Stock Movers
PepsiCo gained 1.5% to $163.81 after the beverage and food company reported its quarterly results and the company also lifted its full-year outlook.
Palantir Technologies Inc increased 2.7% to $18.09 on news that the U.S. Army assigned a $250 million contract to test and develop artificial Intelligence tools.
Unity Software Inc jumped 4% to $30.88 after the company said chief executive John Riccitiello plans to retire and James M Whitehurst will step in as an interim chief executive.
European Markets Rebounded, Bond yields Edged Lower
Stock markets across Europe rebounded and bond yields edged lower a day after chaotic trading.
Market indexes in London, Paris and Frankfurt advanced more than 1.5% and investors searched for bargains.
Market sentiment was also bolstered after crude oil prices edged lower and investors overlooked the jump in natural gas prices for the second day in a row.
Natural gas prices in Europe soared to a six-month high following a 15% advance in Monday's trading after the Israeli government requested Chevron to shut production because of safety concerns at its Tamar natural gas field near its northern coast.
Europe Indexes & Yields
The DAX index increased 1.8% to 15,423.52, the CAC-40 index rose 2.0% to 7,162.42 and the FTSE 100 index advanced 1.8% to 7,628.21.
The yield on 10-year German bonds decreased to 2.8%, French bonds traded lower to 3.40%, the UK gilts edged down to 4.50% and Italian bonds rose to 4.85%.
The euro edged lower to a three-month low to $1.058, the British pound to $1.218 and the U.S. dollar fetched 90.81 Swiss cents.
Brent crude decreased $0.66 to $87.48 a barrel and the Dutch TTF natural gas edged higher by €5.50 to €49.46 per MWh.
Europe Stock Movers
Elis SA increased 3.8% to €16.89 after the Brazil-based asset manager BWGI said it plans to acquire a 6% stake in the French cleaning service provider.
Euroapi SAS plunged 56.5% to €5.34 after the Sanofi spinoff lowered its 2023 sales outlook.
Eutelsat Communications SA rose 7.6% to €5.08 after the satellite company and a hybrid network provider Marlink signed a multi-year agreement to provide maritime connectivity over the Middle East, Africa and Europe.
YouGov Plc soared 23.2% to 850.0 pence after the British polling company reported a jump in pre-tax profit for 2023 on improved revenue.
Currys PLC rose 4.9% to 49.32 pence after the company said it has received several non-binding offers for its Kotsovolos business in Greece and Cyprus.
Croda international Plc increased 2.2% to 4,539.0 pence after several brokerage firms lifted their target stock price.
Rheinmetall AG advanced 1.5% to €254.20 after the German defense company won an order from German Bundeswehr to supply 150,000 rounds of artillery ammunition through a framework agreement.
- Scott Peters
- 10 Oct, 2023
- New York City
Stocks on Wall Street advanced and benchmark indexes extended gains for the second day in a row this week after Treasury yields edged lower.
The S&P 500 index increased 0.9% to 4,375.96 and the Nasdaq Composite rose 1.1% to 13,635.62.
The yield on 2-year Treasury notes decreased to 4.94%, 10-year Treasury notes inched lower to 4.64% and 30-year Treasury bonds edged down to 4.8%.
PepsiCo gained 1.5% to $163.81 after the beverage and food company reported its quarterly results and the company also lifted its full-year outlook.
Net revenue in the third quarter ending in September increased 6.7% to $23.45 billion from $21.97 billion and net income attributable to shareholders increased to $3.09 billion from $2.70 billion and diluted earnings per share advanced to $2.24 from $1.95 a year ago.
In North America, beverage sales increased 8%, Frito Lay sales rose 7% and Quaker Foods advanced 5%.
The company slightly revised higher its 2023 earnings outlook and estimated core earnings per share of $7.54 compared to its previous estimate of $7.47 and compared to $6.79 a year ago.
Palantir Technologies Inc increased 2.7% to $18.09 on news that the U.S. Army assigned a $250 million contract to test and develop artificial Intelligence tools.
Unity Software Inc jumped 4% to $30.88 after the company said chief executive John Riccitiello plans to retire and James M Whitehurst will step in as an interim chief executive.
Bristol-Myers Squibb Co edged up 0.1% to $56.68 after the company agreed to acquire San Diego-based Mirati Therapeutics for $58 a share or $4.8 billion on Sunday evening.
The company also agreed to as much as additional $1 billion in milestone payments.
With the purchase of Mirati, Bristol-Myers expanded its cancer treatment portfolio after Mirati's non-small cell lung cancer drug Krazati was approved by the U.S. FDA.
- Barry Adams
- 10 Oct, 2023
- New York City
Stocks on Wall Street turned higher after Treasury yields edged lower and crude oil prices eased.
Market sentiment improved after Treasury yields edged lower as investors added more bonds amid rising geopolitical tensions in the Middle East.
But fears of the conflict spilling over into the wider region and drawing neighboring states into the conflict and the worries of oil supply disruption receded.
Tech stocks led the gainers on Wall Street and in broad rally benchmark indexes jumped more than 1%.
U.S. bond market was closed on Monday to observe Columbus Day and bond investors reacted for the first time today after the flare of Israel-Hamas conflict in the Middle East.
At the time of rising geopolitical tensions, investors sought safety in U.S. Treasury, driving bond prices higher and lowering yields on bonds.
U.S. Indexes & Yields
The S&P 500 index increased 0.9% to 4,375.96 and the Nasdaq Composite rose 1.1% to 13,635.62.
The yield on 2-year Treasury notes decreased to 4.94%, 10-year Treasury notes inched lower to 4.64% and 30-year Treasury bonds edged down to 4.8%.
Crude oil decreased $0.65 to $84.75 a barrel and natural gas prices increased 2 cents to $3.39 a thermal unit.
The dollar index edged higher to 105.83, the level last seen in November 2022 and extended gains from the low of 99.85 on July 13, 2023.
U.S. Stock Movers
PepsiCo gained 1.5% to $163.81 after the beverage and food company reported its quarterly results and the company also lifted its full-year outlook.
Palantir Technologies Inc increased 2.7% to $18.09 on news that the U.S. Army assigned a $250 million contract to test and develop artificial Intelligence tools.
Unity Software Inc jumped 4% to $30.88 after the company said chief executive John Riccitiello plans to retire and James M Whitehurst will step in as an interim chief executive.
- Inga Muller
- 10 Oct, 2023
- Frankfurt
The DAX index increased 1.8% to 15,394.90, the CAC-40 index rose 1.6% to 7,132.81 and the FTSE 100 index advanced 1.6% to 7,611.11.
The yield on 10-year German bonds decreased to 2.8%, French bonds traded lower to 3.40%, the UK gilts edged down to 4.50% and Italian bonds rose to 4.85%.
Elis SA increased 3.8% to €16.89 after the Brazil-based asset manager BWGI said it plans to acquire a 6% stake in the French cleaning service provider.
Euroapi SAS plunged 56.5% to €5.34 after the Sanofi spinoff lowered its 2023 sales outlook.
Eutelsat Communications SA rose 7.6% to €5.08 after the satellite company and a hybrid network provider Marlink signed a multi-year agreement to provide maritime connectivity over the Middle East, Africa and Europe.
YouGov Plc soared 23.2% to 850.0 pence after the British polling company reported a jump in pre-tax profit for 2023 on improved revenue.
Currys PLC rose 4.9% to 49.32 pence after the company said it has received several non-binding offers for its Kotsovolos business in Greece and Cyprus.
Croda international Plc increased 2.2% to 4,539.0 pence after several brokerage firms lifted their target stock price.
Rheinmetall AG advanced 1.5% to €254.20 after the German defense company won an order from German Bundeswehr to supply 150,000 rounds of artillery ammunition through a framework agreement.
- Bridgette Randall
- 10 Oct, 2023
- Frankfurt
Stock markets across Europe rebounded and bond yields edged lower a day after chaotic trading.
Market indexes in London, Paris and Frankfurt advanced more than 1.5% and investors searched for bargains.
Market sentiment was also bolstered after crude oil prices edged lower and investors overlooked the jump in natural gas prices for the second day in a row.
Natural gas prices in Europe soared to a six-month high following a 15% advance in Monday's trading after the Israeli government requested Chevron to shut production because of safety concerns at its Tamar natural gas field near its northern coast.
Europe Indexes & Yields
The DAX index increased 1.8% to 15,394.90, the CAC-40 index rose 1.6% to 7,132.81 and the FTSE 100 index advanced 1.6% to 7,611.11.
The yield on 10-year German bonds decreased to 2.8%, French bonds traded lower to 3.40%, the UK gilts edged down to 4.50% and Italian bonds rose to 4.85%.
The euro edged lower to a three-month low to $1.058, the British pound to $1.218 and the U.S. dollar fetched 90.81 Swiss cents.
Brent crude decreased $0.42 to $87.69 a barrel and the Dutch TTF natural gas edged higher by €2.65 to €46.60 per MWh.
Europe Stock Movers
Elis SA increased 3.8% to €16.89 after the Brazil-based asset manager BWGI said it plans to acquire a 6% stake in the French cleaning service provider.
Euroapi SAS plunged 56.5% to €5.34 after the Sanofi spinoff lowered its 2023 sales outlook.
Eutelsat Communications SA rose 7.6% to €5.08 after the satellite company and a hybrid network provider Marlink signed a multi-year agreement to provide maritime connectivity over the Middle East, Africa and Europe.
YouGov Plc soared 23.2% to 850.0 pence after the British polling company reported a jump in pre-tax profit for 2023 on improved revenue.
Currys PLC rose 4.9% to 49.32 pence after the company said it has received several non-binding offers for its Kotsovolos business in Greece and Cyprus.
Croda international Plc increased 2.2% to 4,539.0 pence after several brokerage firms lifted their target stock price.
Rheinmetall AG advanced 1.5% to €254.20 after the German defense company won an order from German Bundeswehr to supply 150,000 rounds of artillery ammunition through a framework agreement.
- Barry Adams
- 09 Oct, 2023
- New York City
Stocks reversed morning slides and erased morning losses in Monday's trading after investors shifted focus to earnings releases ahead.
Market indexes opened lower and fell in morning trading after crude oil surged following the flare up of Israeli-Hamas conflict.
The surge in crude oil prices and rising geopolitical tensions overshadowed sentiment in early stock trading but investors shifted focus to domestic economy and rate path and upcoming corporate earnings.
Crude oil surged as much as 4% and Israel declared war following rocket attacks from Hamas based in the West Bank and Gaza Strip.
Hamas launched air attacks on 22 locations in Israel, surprising military establishment and intelligence agency Mossad for their collective failures in monitoring the militant group that is seeking independence of Palestine.
Hamas is considered a terrorist group by Israel, the United States and the European Union but is revered as a freedom fighter group across the Middle East and financially backed by Iran.
Israeli Prime Minister Benjamin Netanyahu declared a siege of Gaza Strip controlled by Hamas and the Israeli military stepped us its bombing attacks that have killed at least 550 Palestinians.
For decades, Palestinians have been demanding an independent state and Israeli forces have been annexing land once owned by Palestinians and building homes for settlers.
About half of Gaza's population is unemployed and youth unemployment rate is close to 60% with most of the food distribution and electricity supply in the enclave is controlled by Israeli military or government agencies.
Neither Palestine nor Israel are significant players in the energy market, but the latest conflict may spill over to neighboring states and oil producing states in the region and disrupt crude oil distribution.
Israeli shekel dropped to a seven-year low to 3.90 against the U.S. dollar and the Bank of Israel announced its plan to sell $30 billion and provided additional liquidity of $15 billion to support the falling shekel.
U.S. Indexes & Yields
The S&P 500 index increased 0.6% to 4,336.68 and the Nasdaq Composite rose 0.6% to 13,502.06.
The U.S. bond market was closed on Monday to observe Columbus Day holiday but in Friday's trading U.S. Treasury yields advanced.
The yield on 2-year Treasury notes increased to 5.10%, 10-year Treasury notes inched higher to 4.84% and 30-year Treasury bonds edged down to 5.0%.
Crude oil increased $3.75 to $86.55 a barrel and natural gas prices increased 4 cents to $3.38 a thermal unit.
The dollar index edged higher to 106.04, the level last seen in November 2022 and extended gains from the low of 99.85 on July 13, 2023.
U.S. Stock Movers
The surge in crude oil prices lifted energy stocks higher but airlines fell on the worries of higher fuel costs.
Exxon Mobil, Chevron, Marathon Oil, Hess Corp and Occidental Petroleum jumped around 3%.
United Airlines, Delta Air Lines and American Airlines dropped 3% after crude oil prices surged.
Allied Pilots Association, the union of American Airlines' pilots issued a directive asking all its members to refuse to fly to Israel after the country declared war.
Defense stocks advanced after the Israel and Hamas conflict escalated and at least 1,000 people have died in the recent attacks and counterattacks.
Lockheed Martin, Northrop Grumman Corp and RTX Corporation advanced about 4%.
European Markets Turned Lower After Middle-East Conflict Flared Up
European markets turned lower and extended previous week's losses but the resource heave index in London advanced.
Investors were cautious in Monday's trading after violence erupted in the world's most dangerous region and Israel stepped up its bombing activities in Palestine after a Hamas controlled group carried out targeted missile attacks.
The conflict escalated to the third day and at least 1,100 people have died so far after Israel carried out its most severe bombing campaign that included several civilian targets.
German Industrial Production Declined In August
German industrial production decreased 0.2% from the previous month in August, deStatis reported Monday.
Energy production declined 6.6% from the previous month, construction output fell 2.4% and machinery and capital equipment production declined 2.4%.
But vehicle production soared 7.6% after falling 9.4% in July.
Industrial production estimate was downwardly revised to a decline of 0.6% in July.
From a year ago, production shrank 2% after contracting 1.7% in July, the statistical bureau reported.
Natural Gas Prices Surged 10%
Crude oil prices jumped more than 4% after investors got first chance to react to the news of Israel-Palestine war
Natural gas futures soared 10% after a leak was reported in the pipe network between Estonia and Finland.
The sudden drop in pressure in the natural gas flow, forced authorities to shutdown flow and repair works could take several months.
Ample natural gas supplies and above average temperatures this month along with weakening industrial activities have kept natural gas prices relatively stable.
Prices are still significantly lower than a year ago when prices were above €60 per MWh.
Europe Indexes & Yields
The DAX index decreased 0.8% to 15,128.11, the CAC-40 index fell 0.6% to 7,021.40 and the FTSE 100 index fell 0.03% to 7,492.21.
The yield on 10-year German bonds decreased to 2.87%, French bonds traded lower to 3.46%, the UK gilts edged down to 4.56% and Italian bonds rose to 4.95%.
The euro edged lower to a three-month low to $1.051, the British pound to $1.218 and the U.S. dollar fetched 90.81 Swiss cents.
Brent crude increased $3.75 to $88.44 a barrel and the Dutch TTF natural gas edged lower by €5.72 to €43.95 per MWh.
Europe Stock Movers
Vitesco Technologies Group AG soared 20% to €91.15 after its largest and a majority shareholder Schaeffler launched a takeover offer for 91.0 to solidify its presence in the electric vehicles supply chain from passenger cars to trucks to trains.
The deal values the company at 3.64 billion and Schaeffler said as a part of the offer it will simplify shareholder structure to convert preferred shares to common shares, putting all shareholders on common footings.
Energy stocks advanced after crude oil prices surged 4% and air transportation stocks declined.
TotalEnergies, Repsol, BP Plc and Shell jumped between 1% and 3% after the Middle East conflict flared up.
Lufthansa, Air France KLM and the parent of British Air IAG declined between 3% and 4%.
Defense companies were in focus and traded higher.
Rhienmetall AG jumped 4.5% to €245.0, Leonardo SpA added 4.3% to €13.48 and Saab AB advanced 7.2% to skr 562.00.
Metro Bank Holdings Plc jumped 15% to 51.82 pence on reports that Bank of England held preliminary discussion with large banks amid search for a buyer for the troubled bank.
- Scott Peters
- 09 Oct, 2023
- New York City
Stocks in New York declined after geo-political tensions rose and crude oil prices surged on the fears of a potential supply disruptions amid worries of a widening conflict in the Middle East.
The S&P 500 index decreased 0.4% to 4,290.76 and the Nasdaq Composite fell 0.9% to 13,306.32.
The bond market was closed to observe Columbus Day but in Friday's trading U.S. Treasury yields advanced.
The surge in crude oil prices lifted energy stocks higher but airlines fell on the worries of higher fuel costs.
Exxon Mobil, Chevron, Marathon Oil, Hess Corp and Occidental Petroleum jumped around 3%.
United Airlines, Delta Air Lines and American Airlines dropped 3% after crude oil prices surged.
Allied Pilots Association, the union of American Airlines' pilots issued a directive asking all its members to refuse to fly to Israel after the country declared war.
Cruise lines operators declined after crude oil pries surged.
Royal Caribbean Cruises Limited fell 4.2% to $87.05, Carnival Corp dropped 5.5% to $12.52 and Norwegian Cruise Line Holdings decreased 4.5% to $15.88.
Defense stocks advanced after the Israel and Hamas conflict escalated and at least 1,000 people have died in the recent attacks and counterattacks.
Lockheed Martin, Northrop Grumman Corp and RTX Corporation advanced about 4%.
- Barry Adams
- 09 Oct, 2023
- New York City
Crude oil prices and rising geopolitical tensions overshadowed sentiment in stock markets in Monday's trading.
Crude oil surged as much as 4% and Israel declared war following rocket attacks from Hamas based in the West Bank and Gaza Strip.
Hamas launched air attacks on 22 locations in Israel, surprising military establishment and intelligence agency Mossad for their collective failures in monitoring the militant group that is seeking independence of Palestine.
Israeli Prime Minister Benjamin Netanyahu declared a siege of Gaza Strip controlled by Hamas and the Israeli military stepped us its bombing attacks that have killed at least 550 Palestinians.
For decades, Palestinians have been demanding an independent state and Israeli forces have been annexing land once owned by Palestinians and building homes for settlers.
Neither Palestine nor Israel are significant players in the energy market, but the latest conflict may spill over to neighboring states and oil producing states in the region and disrupt crude oil distribution.
Israeli shekel dropped to a seven-year low to 3.90 against the U.S. dollar and the Bank of Israel announced its plan to sell $30 billion and provided additional liquidity of $15 billion to support the falling shekel.
U.S. Indexes & Yields
The S&P 500 index decreased 0.4% to 4,290.76 and the Nasdaq Composite fell 0.9% to 13,306.32.
The bond market was closed to observe Columbus Day but in Friday's trading U.S. Treasury yields advanced.
The yield on 2-year Treasury notes increased to 5.10%, 10-year Treasury notes inched higher to 4.84% and 30-year Treasury bonds edged down to 5.0%.
Crude oil increased $3.65 to $86.45 a barrel and natural gas prices increased 4 cents to $3.38 a thermal unit.
The dollar index edged higher to 106.24, the level last seen in November 2022 and extended gains from the low of 99.85 on July 13, 2023.
U.S. Stock Movers
The surge in crude oil prices lifted energy stocks higher but airlines fell on the worries of higher fuel costs.
Exxon Mobil, Chevron, Marathon Oil, Hess Corp and Occidental Petroleum jumped around 3%.
United Airlines, Delta Air Lines and American Airlines dropped 3% after crude oil prices surged.
Allied Pilots Association, the union of American Airlines' pilots issued a directive asking all its members to refuse to fly to Israel after the country declared war.
Defense stocks advanced after the Israel and Hamas conflict escalated and at least 1,000 people have died in the recent attacks and counterattacks.
Lockheed Martin, Northrop Grumman Corp and RTX Corporation advanced about 4%.
- Inga Muller
- 09 Oct, 2023
- Frankfurt
The DAX index decreased 0.7% to 15,121.42, the CAC-40 index fell 0.5% to 7,025.05 and the FTSE 100 index rose 0.1% to 7,502.59.
The yield on 10-year German bonds decreased to 2.87%, French bonds traded lower to 3.46%, the UK gilts edged down to 4.56% and Italian bonds rose to 4.95%.
Energy stocks advanced after crude oil prices surged 4% and air transportation stocks declined.
TotalEnergies, Repsol, BP Plc and Shell jumped between 1% and 3% after the Middle East conflict flared up.
Lufthansa, Air France KLM and the parent of British Air IAG declined between 3% and 4%.
Defense companies were in focus and traded higher.
Rhienmetall AG jumped 4.5% to €245.0, Leonardo SpA added 4.3% to €13.48 and Saab AB advanced 7.2% to skr 562.00.
Metro Bank Holdings Plc jumped 15% to 51.82 pence on reports that Bank of England held preliminary discussion with large banks amid search for a buyer for the troubled bank.
- Bridgette Randall
- 09 Oct, 2023
- Frankfurt
European markets turned lower and extended previous week's losses but the resource heave index in London advanced.
Investors were cautious in Monday's trading after violence erupted in the world's most dangerous region and Israel stepped up its bombing activities in Palestine after a Hamas controlled group carried out targeted missile attacks.
The conflict escalated to the third day and at least 1,100 people have died so far after Israel carried out its most severe bombing campaign that included several civilian targets.
German Industrial Production Declined In August
German industrial production decreased 0.2% from the previous month in August, deStatis reported Monday.
Energy production declined 6.6% from the previous month, construction output fell 2.4% and machinery and capital equipment production declined 2.4%.
But vehicle production soared 7.6% after falling 9.4% in July.
Industrial production estimate was downwardly revised to a decline of 0.6% in July.
From a year ago, production shrank 2% after contracting 1.7% in July, the statistical bureau reported.
Natural Gas Prices Surged 10%
Crude oil prices jumped more than 4% after investors got first chance to react to the news of Israel-Palestine war
Natural gas futures soared 10% after a leak was reported in the pipe network between Estonia and Finland.
The sudden drop in pressure in the natural gas flow, forced authorities to shutdown flow and repair works could take several months.
Ample natural gas supplies and above average temperatures this month along with weakening industrial activities have kept natural gas prices relatively stable.
Prices are still significantly lower than a year ago when prices were above €60 per MWh.
Europe Indexes & Yields
The DAX index decreased 0.7% to 15,121.42, the CAC-40 index fell 0.5% to 7,025.05 and the FTSE 100 index rose 0.1% to 7,502.59.
The yield on 10-year German bonds decreased to 2.87%, French bonds traded lower to 3.46%, the UK gilts edged down to 4.56% and Italian bonds rose to 4.95%.
The euro edged lower to a three-month low to $1.051, the British pound to $1.218 and the U.S. dollar fetched 90.81 Swiss cents.
Brent crude increased $2.49 to $87.50 a barrel and the Dutch TTF natural gas edged lower by €4.67 to €42.90 per MWh.
Europe Stock Movers
Energy stocks advanced after crude oil prices surged 4% and air transportation stocks declined.
TotalEnergies, Repsol, BP Plc and Shell jumped between 1% and 3% after the Middle East conflict flared up.
Lufthansa, Air France KLM and the parent of British Air IAG declined between 3% and 4%.
Defense companies were in focus and traded higher.
Rhienmetall AG jumped 4.5% to €245.0, Leonardo SpA added 4.3% to €13.48 and Saab AB advanced 7.2% to skr 562.00.
Metro Bank Holdings Plc jumped 15% to 51.82 pence on reports that Bank of England held preliminary discussion with large banks amid search for a buyer for the troubled bank.