Global Markets On Hold Ahead of Fed Action

Market indexes lacked direction and investors turned cautious ahead of the Fed's rate decision and economic forecast. 

The S&P 500 index and the Nasdaq Composite index dropped as investors awaited the outcome of two-day policy meeting held by the Federal Reserve. 

Investors widely believe that policy committee will hold rates for the second time and leave its target rate range between 5.25% and 5.5%. 

Investors are also looking ahead to the release of economic forecast, and will be looking for Fed's forecast on economic growth, jobless rate and inflation rate. 

The Fed's ten successive rate hikes between March 2022 and May 2023, inflation has slowed down from peak of over 8% to near 4%, but still higher than the 2% target. 

Moreover, inflation has declined because of base effect and the rate hikes have not been restrictive enough to slowdown economic activities. 

Despite multiple rate hikes, interest rates have lagged inflation rate and failed to slowdown consumer spending and business borrowing.

U.S. Housing Starts Dropped to 3-year Low 

Higher mortgage rates and elevated home prices impacted home demand and weighed on buyer's affordability. 

Housing starts and building permits declined in August from the previous month but housing completions rose, the U.S. Census Bureau and the U.S. Department of Housing and Urban Development jointly reported Tuesday. 

Building permits decreased 6.9% to 1.543 million annual adjusted rate in August from the revised July rate of 1.443 million, but 2.7% lower than the annual rate of 1.586 million a year ago. 

Single-family home permit increased 2% from the previous month to 949,000 and multi-family permits were at a rate of 535,000. 

Housing starts in August declined 11.3% from the previous month to 1.283 million and dropped 14.8% from a year ago rate of 1.505 million. 

Single-family housing start declined 4.3% from the previous month to 941,000 and the August rate for multi-family housing starts was 33,4000. 

Seasonally adjusted annual rate of starts in the West dropped 28.9% to 281,000, in the Midwest fell 7.5% to 160,000 but rose 1% 97,000 in the Northeast.  

Home completions in August rose 5.3% from the previous month to 1.406 million units and increased 3.8% from the annual rate of 1.355 million a year ago. 

Single-family home completion annual rate in August declined 6.6% from the previous month to 961,000 and multi-family rate was at 433,000. 

U.S. Indexes & Yields 

The S&P 500 index inched down 0.4% to 4,432.96 and the Nasdaq Composite decreased 0.6% to 13,626.27. 

The yield on 2-year Treasury notes hovered near 5.07%, 10-year Treasury notes inched slightly higher to 4.33% and 30-year Treasury bonds edged up to 4.41%. 

Crude oil increased $1.22 to $92.72 a barrel and natural gas prices increased 10 cents to $2.83 a thermal unit. 

The dollar index edged slightly lower to 105.04, the level last seen in March but higher than the low of 99.85 on July 13. 

U.S. Stock Movers 

Rocket Lab USA Inc dropped 18% to $4.12 after the company's uncrewed launched failed in the early hours of Tuesday morning. 

The company confirmed that its 41st Electron rocket launch off the coast of New Zealand failed after two minutes and 30 seconds in flight carrying the Acadia 2 satellite for Capella Space based in San Francisco. 

The company also said it plans to postpone its next space launch and will revise lower its third quarter revenue outlook. 

Rocket Launch had 19 successful launches in a row since May 2021 and is now the second most active rocket launch company in the U.S., trailing only to Space X owned by Elon Musk. 

Maplebear Inc, parent of Instacart delivery service provider, priced its initial public offering at $30 a share, at the upper end of its price range, and raise about $600 million.

The offering valued the company at $9.9 billion and and just days before PepsiCo agreed to invest $175 million in the company.   

Walt Disney Co decreased 3.2% to $82.23 after the company said in a SEC filing that it plans to double its investment in theme parks and cruise business to $60 billion over the next decade.  

Higher-for-longer Rate Worries Europe Markets

European markets hugged the flatline and investors stayed on the sideline ahead of rate decisions from several central banks. 

Market indexes in Germany and France edged higher but lacked direction after hawkish comments from the ECB officials reminded investors that the European Central Bank is ready to raise rates to cool inflation further even if that puts the economy into a recession. 

In London trading, the benchmark index edged higher on the hopes that the Bank of England is nearing its rate hike campaign after the rate decision this week. 

Inflation in the UK has been cooling over the last six months and hovering near 7%, but still significantly higher than 2% target. 

Investors are divided about the future direction of interest rates and there is a widespread belief that central banks are more likely to keep higher rates for longer after the rebound in crude oil prices. 

Brent crude oil prices jumped above $95 a barrel  for the first time since November and WTI crude in New York approached $93, the highest in a year. 

Europe Indexes & Yields

The DAX index decreased 0.6% to 15,639.26, the CAC-40 index declined 0.2% to 7,264.09 and the FTSE 100 index inched up 0.05% to 7,657.11.

The yield on 10-year German bonds increased to 2.70%, French bonds traded higher to 3.24%, the UK gilts edged up to 4.34% and Italian bonds rose to 4.49%.

The euro edged lower to a three-month low to $1.069, the British pound to $1.238 and the U.S. dollar fetched 89.65 Swiss cents.

Brent crude increased $1.12 to $95.56 a barrel and the Dutch TTF natural gas increased €0.60 to €35.67 per MWh.

Europe Stock Movers

Banks in Germany, France, UK and Italy traded higher for the second day in a row on the expectations of higher interest rates. 

Deutsche Bank, Commerzbank, BNP Paribas, Standard Chartered Bank, HSBC and Barclays advanced between 0.5% and 1.4%. 

Societe Generale SA declined for the second day in a row and extended two-day losses to 13% after the new chief executive lowered the bank's target returns over the next three years. 

MTU Aero Engines AG declined 1.9% to €164.65 and extended 2023 losses to 20% after the heavy-duty diesel engine maker issued a sales and earnings warning because of its expanded geared turbofan inspection program.

On September 13, the company estimated adjusted revenue between €6.1 billion and €6.3 billion and earnings before interest and taxes of €800 million.  

Lonza Group jumped 2.5% to CHF 434.90 a day after plunging as much as 15% on the worries about the company's medium term earnings outlook after the company said its chief executive Pierre-Alain Ruffieux will resign at the end of the month by mutual agreement. 

U.S. Housing Starts Dropped to a 3-year Low In August

Higher mortgage rates and elevated home prices impacted home demand and weighed on buyer's affordability. 

Housing starts and building permits declined in August from the previous month but housing completions rose, the U.S. Census Bureau and the U.S. Department of Housing and Urban Development jointly reported Tuesday. 

Building permits decreased 6.9% to 1.543 million annual adjusted rate in August from the revised July rate of 1.443 million, but 2.7% lower than the annual rate of 1.586 million a year ago. 

Single-family home permit increased 2% from the previous month to 949,000 and multi-family permits were at a rate of 535,000. 

Housing starts in August declined 11.3% from the previous month to 1.283 million and dropped 14.8% from a year ago rate of 1.505 million. 

Single-family housing start declined 4.3% from the previous month to 941,000 and the August rate for multi-family housing starts was 33,4000. 

Seasonally adjusted annual rate of starts in the West dropped 28.9% to 281,000, in the Midwest fell 7.5% to 160,000 but rose 1% 97,000 in the Northeast.  

Home completions in August rose 5.3% from the previous month to 1.406 million units and increased 3.8% from the annual rate of 1.355 million a year ago. 

Single-family home completion annual rate in August declined 6.6% from the previous month to 961,000 and multi-family rate was at 433,000. 

U.S. Movers: Maplebear, Rocket Lab USA, Walt Disney

Market averages on Wall Street declined ahead of the Federal Reserve's rate decision  and economic forecast on Wednesday. 

The S&P 500 index inched down 0.4% to 4,432.96 and the Nasdaq Composite decreased 0.6% to 13,626.27. 

The yield on 10-year U.S. Treasury bonds edged higher to the level last seen in 2007 as many investors anticipate the Fed to leave its target rate range unchanged between 5.25% and 5.50% at the of two-day meeting on Wednesday. 

The yield on 2-year Treasury notes hovered near 5.07%, 10-year Treasury notes inched slightly higher to 4.33% and 30-year Treasury bonds edged up to 4.41%. 

Rocket Lab USA Inc dropped 18% to $4.12 after the company's uncrewed launched failed in the early hours of Tuesday morning. 

The company confirmed that its 41st Electron rocket launch off the coast of New Zealand failed after two minutes and 30 seconds in flight carrying the Acadia 2 satellite for Capella Space based in San Francisco. 

The company also said it plans to postpone its next space launch and will revise lower its third quarter revenue outlook. 

Rocket Launch had 19 successful launches in a row since May 2021 and is now the second most active rocket launch company in the U.S., trailing only to Space X owned by Elon Musk. 

Maplebear Inc, parent of the delivery service provider Instacart, priced its initial public offering at $30 a share, at the upper end of its price range, and raise about $600 million.

The offering valued the company at $9.9 billion and and just days before PepsiCo agreed to invest $175 million in the delivery service company with an annual revenue of $2.5 billion in 2022 and net profit of $428 million. 

Walt Disney Co decreased 3.2% to $82.23 after the company said in a SEC filing that it plans to double its investment in theme parks and cruise business to $60 billion over the next decade.  

U.S. Market Averages Turned Down Ahead of Fed's Rate Decision and Economic Forecast

Market indexes on Wall Street struggled to get traction as investors remained focused on Fed's rate decision and economic forecast. 

The S&P 500 index and the Nasdaq Composite index dropped as investors awaited the outcome of two-day policy meeting held by the Federal Reserve. 

Investors widely believe that policy committee will hold rates for the second time and leave its target rate range between 5.25% and 5.5%. 

Investors are also looking ahead to the release of economic forecast, and will be looking for Fed's forecast on economic growth, jobless rate and inflation rate. 

The Fed's ten successive rate hikes between March 2022 and May 2023, inflation has slowed down from peak of over 8% to near 4%, but still higher than the 2% target. 

Moreover, inflation has declined because of base effect and the rate hikes have not been restrictive enough to slowdown economic activities. 

Despite multiple rate hikes, interest rates have lagged inflation rate and failed to slowdown consumer spending and business borrowing. 

U.S. Indexes & Yields 

The S&P 500 index inched down 0.4% to 4,432.96 and the Nasdaq Composite decreased 0.6% to 13,626.27. 

The yield on 2-year Treasury notes hovered near 5.07%, 10-year Treasury notes inched slightly higher to 4.33% and 30-year Treasury bonds edged up to 4.41%. 

Crude oil increased $1.22 to $92.72 a barrel and natural gas prices increased 10 cents to $2.83 a thermal unit. 

The dollar index edged slightly lower to 105.04, the level last seen in March but higher than the low of 99.85 on July 13. 

U.S. Stock Movers 

Rocket Lab USA Inc dropped 18% to $4.12 after the company's uncrewed launched failed in the early hours of Tuesday morning. 

The company confirmed that its 41st Electron rocket launch off the coast of New Zealand failed after two minutes and 30 seconds in flight carrying the Acadia 2 satellite for Capella Space based in San Francisco. 

The company also said it plans to postpone its next space launch and will revise lower its third quarter revenue outlook. 

Rocket Launch had 19 successful launches in a row since May 2021 and is now the second most active rocket launch company in the U.S., trailing only to Space X owned by Elon Musk. 

Maplebear Inc, parent of Instacart delivery service provider, priced its initial public offering at $30 a share, at the upper end of its price range, and raise about $600 million.

The offering valued the company at $9.9 billion and and just days before PepsiCo agreed to invest $175 million in the company.   

Walt Disney Co decreased 3.2% to $82.23 after the company said in a SEC filing that it plans to double its investment in theme parks and cruise business to $60 billion over the next decade.  

Europe Movers: Banks, Energy Stocks, MTU Aero Engines, Lonza Group, Societe Generale

Market indexes in Europe lacked direction and investors avoided taking larger positions ahead of rate decisions from the Bank of England and the U.S. Federal Reserve. 

The DAX index increased 0.01% to 15,727.98, the CAC-40 index advanced 0.4% to 7,299.54 and the FTSE 100 index inched up 0.2% to 7,670.19.

Banks in Germany, France, UK and Italy traded higher for the second day in a row on the expectations of higher interest rates. 

Deutsche Bank, Commerzbank, BNP Paribas, Standard Chartered Bank, HSBC and Barclays advanced between 0.5% and 1.4%. 

Societe Generale SA declined for the second day in a row and extended two-day losses to 13% after the new chief executive lowered the bank's target returns over the next three years. 

MTU Aero Engines AG declined 1.9% to €164.65 and extended 2023 losses to 20% after the heavy-duty diesel engine maker issued a sales and earnings warning because of its expanded geared turbofan inspection program.

On September 13, the company estimated adjusted revenue between €6.1 billion and €6.3 billion and earnings before interest and taxes of €800 million.  

Lonza Group jumped 2.5% to CHF 434.90 a day after plunging as much as 15% on the worries about the company's medium term earnings outlook after the company said its chief executive Pierre-Alain Ruffieux will resign at the end of the month by mutual agreement. 

Crude oil and natural gas companies traded higher after Brent crude oil jumped to a 10-month high. 

Higher-for-Longer Rate Worries Hobble Europe Market Indexes

European markets hugged the flatline and investors stayed on the sideline ahead of rate decisions from several central banks. 

Market indexes in Germany and France edged higher but lacked direction after hawkish comments from the ECB officials reminded investors that the European Central Bank is ready to raise rates to cool inflation further even if that puts the economy into a recession. 

In London trading, the benchmark index edged higher on the hopes that the Bank of England is nearing its rate hike campaign after the rate decision this week. 

Inflation in the UK has been cooling over the last six months and hovering near 7%, but still significantly higher than 2% target. 

Investors are divided about the future direction of interest rates and there is a widespread belief that central banks are more likely to keep higher rates for longer after the rebound in crude oil prices. 

Brent crude oil prices jumped above $95 a barrel  for the first time since November and WTI crude in New York approached $93, the highest in a year. 

Europe Indexes & Yields

The DAX index increased 0.01% to 15,727.98, the CAC-40 index advanced 0.4% to 7,299.54 and the FTSE 100 index inched up 0.2% to 7,670.19.

The yield on 10-year German bonds increased to 2.70%, French bonds traded higher to 3.24%, the UK gilts edged up to 4.34% and Italian bonds rose to 4.49%.

The euro edged lower to a three-month low to $1.069, the British pound to $1.238 and the U.S. dollar fetched 89.65 Swiss cents.

Brent crude increased $0.42 to $95.25 a barrel and the Dutch TTF natural gas increased €0.99 to €35.47 per MWh.

Europe Stock Movers

Banks in Germany, France, UK and Italy traded higher for the second day in a row on the expectations of higher interest rates. 

Deutsche Bank, Commerzbank, BNP Paribas, Standard Chartered Bank, HSBC and Barclays advanced between 0.5% and 1.4%. 

Societe Generale SA declined for the second day in a row and extended two-day losses to 13% after the new chief executive lowered the bank's target returns over the next three years. 

MTU Aero Engines AG declined 1.9% to €164.65 and extended 2023 losses to 20% after the heavy-duty diesel engine maker issued a sales and earnings warning because of its expanded geared turbofan inspection program.

On September 13, the company estimated adjusted revenue between €6.1 billion and €6.3 billion and earnings before interest and taxes of €800 million.  

Lonza Group jumped 2.5% to CHF 434.90 a day after plunging as much as 15% on the worries about the company's medium term earnings outlook after the company said its chief executive Pierre-Alain Ruffieux will resign at the end of the month by mutual agreement. 

Nikkei In Tokyo Down 1%, Hong Kong Banks Lift Mortgage Rates

Financial markets in Asia traded mixed and investors avoided large trades ahead of rate decisions by several central bankers this week. 

Market indexes in Tokyo edged lower after advancing for two weeks as investors await the rate decisions from the U.S. Federal Reserve on Wednesday and from the Bank of Japan on Friday. 

The U.S. Federal Reserve is expected to hold its target rate range for the second time between 5.25% and 5.50% and investors will be looking for clues on the economy's health. 

The Bank of Japan is also expected to keep its ultra-loose monetary policy intact but policymakers are expected to provide deeper insights about the yield curve management and the progress in keeping the inflation near 2%. 

Market indexes in Hong Kong traded near a four-week low on the ongoing property market woes and continued weakness in tech stocks. 

Hong Kong property prices are expected to decline between 5% and 10% by the year's end after seven largest banks lifted mortgage rates for new loans by 50 basis points from Monday.  

Seven banks, which control about 80% of Hong Kong property market, including HSBC, Standard Chartered Bank, Bank of China, Hang Seng Bank, China Construction Bank and Bank of East Asia raised rates ahead of the U.S. Federal Reserve taking its rate decision on Wednesday. 

The Hong Kong dollar has been pegged to the U.S. dollar since 1983, and the Hong Kong Monetary Authority, adjusts rates following the rate revisions by the U.S. Federal Reserve, has lifted rates by 5.25 percentage points since March 2022.  

Market indexes in Shanghai lacked direction and retained downward bias despite the People's Bank of China chief Pan Gongsheng said regulators will take steps to improve international trade and climate for foreign investors. 

Despite assurances from regulators, capital outflow from China remained strong as reflected in the offshore yuan exchange rate. 

The Chinese yuan traded near a 17-year low of 7.30 against the U.S. dollar and ahead of the rate decisions in the U.S. and other countries. 

Asia Market Indexes 

In Tuesday's trading, the Nikkei index decreased 1.0% to 33,208.71 after tech stocks continued to drift lower ahead of the rate decisions this week. 

In China trading, the Shanghai SSE Composite index inched up 0.02% to 3,126.52 and the Hang Seng index increased 0.02% to 17,933.66. 

Elsewhere in the region, the KOSPI index decreased 0.4% to 2,563.69 and financial markets in India were close to celebrate Ganesh Chaturthi. 

In August, the Nikkei index fell 0.6%, the SSE Composite index declined 5.2%, the Hang Seng index fell 8.2% and the KOSPI index decreased 4.2%. 

U.S. Treasury and Global Bond Yields Advanced Ahead of Rate Decisions, Stocks Struggled to Advance

Stocks lacked direction on Wall Street and investors avoided taking additional bets ahead of the rate decisions on Wednesday. 

Crude oil prices advanced to a new high in 2023 and reached the level last seen in November after supply worries dominated the energy market. 

Futures of immediate month delivery of West Texas crude oil jumped above $91 a barrel and Brent crude oil crossed $94 a barrel. 

Crude oil prices advanced for the third week in a row and jumped nearly 30% in the third quarter on the expectations of a demand recovery in China and curtailed energy supplies from Russia and Saudi Arabia. 

The steady rise in oil price has got the bond market worried about the rebound in consumer price inflation. 

The yield on the 2-year U.S. Treasury jumped above 5% and reached a level not seen since March, on the worries of higher inflation following the persistent rise in crude oil prices.  

Investors are widely anticipating that the  U.S. Federal Reserve is likely to hold rates at the conclusion of a 2-day meeting ending on Wednesday. 

Despite the multiple rate hikes over the last sixteen months, inflation has hovered above the Fed's 2% target. 

Moreover, while the Fed's policymakers talk tough on fighting inflation, Chairman Jerome Powell has refrained from setting a deadline to bring down inflation to 2%. 

Fed's unwillingness to set a deadline for bringing down inflation, highlights loose monetary policy and rates are still not restrictive enough.  

U.S. Indexes & Yields 

The S&P 500 index inched down 0.05% to 4,452.20 and the Nasdaq Composite decreased 0.02% to 13,704.56. 

The yield on 2-year Treasury notes hovered near 5.05%, 10-year Treasury notes inched slightly higher to 4.32% and 30-year Treasury bonds edged up to 4.41%. 

Crude oil increased $0.75 to $91.51 a barrel and natural gas prices increased 2 cents to $2.66 a thermal unit. 

The dollar index edged slightly lower to 105.24, the level last seen in March but higher than the low of 99.85 on July 13. 

Rate anxieties dragged market indexes down in Monday's trading and investors awaited central bank decisions this week. 

The yields trended higher ahead of the rate decisions from the Bank of England and the U.S. Federal Reserve later in the week. 

The Bank of England is scheduled to lift its rate by 24 basis points and the Bank of Japan is also scheduled to announce its rate decision on Thursday. 

Central banks of Sweden, Norway and Switzerland are also set to announce their rate decisions this week. 

The U.S. Federal Reserve is likely to pause rate hike on Wednesday but investors are worried that higher rates are likely to stay longer as inflation shows no sign of abating. 

Despite multiple rate hikes by the central bank in the UK, inflation in the UK has stayed above 7%.  

The yield on the UK bonds have been on the rise in anticipation of rate hikes, and led other sovereign bond yields in the European Union, surpassing even Italy which generally  

Europe Indexes & Yields

The DAX index decreased 1.0% to 15,727.12, the CAC-40 index declined 1.4% to 7,276.14 and the FTSE 100 index inched down 0.7% to 7,652.94.

In the previous week, the DAX increased 0.7%, the CAC 40 advanced 1.6% and the FTSE 100 jumped 3.4%. 

German bond yields advanced to a six-month high and the U.S. dollar hovered near a six-month high as investors forecasted higher rates in the Euro Area.

The yield on 10-year German bonds increased to 2.69%, French bonds traded higher to 3.24%, the UK gilts edged up to 4.38% and Italian bonds rose to 4.49%.

The euro edged lower to a three-month low to $1.066, the British pound to $1.239 and the U.S. dollar fetched 89.61 Swiss cents.

Brent crude increased $0.55 to $94.48 a barrel and the Dutch TTF natural gas decreased €2.05 to €34.48 per MWh.

Europe Stock Movers

Societe Generale SA plunged 11% to €23.58 after the recently appointed chief executive announced a plan to cut costs and lift stagnant sales by 2026. 

However, investors sold stock after the revenue and earnings outlook fell short of investors' expectations. 

Nordic Semiconductor ASA dropped 13.5% to €9.25 after the Norwegian chipmaker lowered its third quarter revenue outlook amid ongoing slump. 

S&P 500 and Nasdaq Lacked Direction, 10-month High In Crude Oil, short Term Treasury Yields Advanced

Market indexes on Wall Street traded down as investors reviewed the rise in crude oil prices and interest rate decisions from the Federal Reserve. 

Crude oil prices advanced to a new high in 2023 and reached the level last seen in November after supply worries dominated the energy market. 

Futures of immediate month delivery of West Texas crude oil jumped above $91 a barrel and Brent crude oil crossed $94 a barrel. 

Crude oil prices advanced for the third week in a row and jumped nearly 30% in the third quarter on the expectations of a demand recovery in China and curtailed energy supplies from Russia and Saudi Arabia. 

The steady rise in oil price has got the bond market worried about the rebound in consumer price inflation. 

The yield on the 2-year U.S. Treasury jumped above 5% and reached a level not seen since March, on the worries of higher inflation following the persistent rise in crude oil prices.  

Investors are widely anticipating that the  U.S. Federal Reserve is likely to hold rates at the conclusion of a 2-day meeting ending on Wednesday. 

Despite the multiple rate hikes over the last sixteen months, inflation has hovered above the Fed's 2% target. 

Moreover, while the Fed's policymakers talk tough on fighting inflation, Chairman Jerome Powell has refrained from setting a deadline to bring down inflation to 2%. 

Fed's unwillingness to set a deadline for bringing down inflation, highlights loose monetary policy and rates are still not restrictive enough.  

U.S. Indexes & Yields 

The S&P 500 index inched down 0.1% to 4,444.78 and the Nasdaq Composite decreased 0.1% to 13,697.35. 

The yield on 2-year Treasury notes hovered near 5.05%, 10-year Treasury notes inched slightly higher to 4.32% and 30-year Treasury bonds edged up to 4.41%. 

Crude oil increased $0.75 to $91.51 a barrel and natural gas prices increased 2 cents to $2.66 a thermal unit. 

The dollar index edged slightly lower to 105.24, the level last seen in March but higher than the low of 99.85 on July 13. 

Europe Movers: Banks, Insurance Companies, Nordic Semiconductor, Societe Generale

European market indexes declined ahead of interest rate decisions from the central banks of Sweden, Norway, Switzerland, Japan, the U.K., and the U.S. 

The DAX index decreased 0.6% to 15,798.56, the CAC-40 index declined 1.1% to 7,299.54 and the FTSE 100 index inched down 0.3% to 7,689.19.

In the previous week, the DAX increased 0.7%, the CAC 40 advanced 1.6% and the FTSE 100 jumped 3.4%. 

Societe Generale SA plunged 11% to €23.58 after the recently appointed chief executive announced a plan to cut costs and lift stagnant sales by 2026. 

However, investors sold stock after the revenue and earnings outlook fell short of investors' expectations. 

Nordic Semiconductor ASA dropped 13.5% to €9.25 after the Norwegian chipmaker lowered its third quarter revenue outlook amid ongoing slump. 

Banks and insurance companies were in focus after bond yields jumped and ahead of the expected rate increases across the Europe and the U.K. 

Admiral Group, Phoenix Group Holdings gained around 1% but Hannover Re, Allianz SE, Commerzbank, Deutsche Bank, Barclays, HSBC and Standard Chartered Bank and Credit Agricole declined between 0.4% and 1.5%. 

Central Bank Actions In U.S, UK, Europe and Japan Dominate European Market Sentiment

Rate anxieties dragged market indexes down in Monday's trading and investors awaited central bank decisions this week. 

The yields trended higher ahead of the rate decisions from the Bank of England and the U.S. Federal Reserve later in the week. 

The Bank of England is scheduled to lift its rate by 24 basis points and the Bank of Japan is also scheduled to announce its rate decision on Thursday. 

Central banks of Sweden, Norway and Switzerland are also set to announce their rate decisions this week. 

The U.S. Federal Reserve is likely to pause rate hike on Wednesday but investors are worried that higher rates are likely to stay longer as inflation shows no sign of abating. 

Despite multiple rate hikes by the central bank in the UK, inflation in the UK has stayed above 7%.  

The yield on the UK bonds have been on the rise in anticipation of rate hikes, and led other sovereign bond yields in the European Union, surpassing even Italy which generally  

Europe Indexes & Yields

The DAX index decreased 0.6% to 15,798.56, the CAC-40 index declined 1.1% to 7,299.54 and the FTSE 100 index inched down 0.3% to 7,689.19.

In the previous week, the DAX increased 0.7%, the CAC 40 advanced 1.6% and the FTSE 100 jumped 3.4%. 

The yield on 10-year German bonds increased to 2.69%, French bonds traded higher to 3.24%, the UK gilts edged up to 4.38% and Italian bonds rose to 4.49%.

The euro edged lower to a three-month low to $1.066, the British pound to $1.239 and the U.S. dollar fetched 89.61 Swiss cents.

Brent crude increased $0.74 to $94.66 a barrel and the Dutch TTF natural gas decreased €0.75 to €35.74 per MWh.

Europe Stock Movers

Societe Generale SA plunged 11% to €23.58 after the recently appointed chief executive announced a plan to cut costs and lift stagnant sales by 2026. 

However, investors sold stock after the revenue and earnings outlook fell short of investors' expectations. 

Nordic Semiconductor ASA dropped 13.5% to €9.25 after the Norwegian chipmaker lowered its third quarter revenue outlook amid ongoing slump. 

U.S. Movers: Automakers, Adobe, Arm Holdings, Nucor, Unity Software

Adobe Inc declined 3.5% to $533 after the graphic design software developer reported fiscal third quarter results that matched investor expectations. 

Nucor  Corporation declined 2.1% to $162.05 after the specialty steelmaker forecasted third quarter earnings to decline primarily because of lower prices and falling volumes. 

Nucor expects third quarter earnings per share to be in the range of $4.10 to $4.20 per diluted share, second quarter net earning was $5.81 and $6.50 in the third quarter of 2022.

Arm Holdings increased 3.6% to $65.89 and extended gains for the second day in a row after the advanced chip design company priced its initial public offer at $51 a share and raised $4.9 billion. 

Unity Software Inc increased 2.2% to $36.54 after Bank of America upgraded stock to "buy" on the earnings growth expectations in 2024 and 2025. 

General Motors, Ford Motor Company and Stellantis NV were in focus after 12,700 United Auto Workers decided to strike at three key assembly plants asking for higher wages and other benefits. 

The union workers decided to strike at General Motors midsize truck manufacturing plan and full-size van production facility in Wentzville, Missouri. 

Workers also walked out at Jeep manufacturing plant in Toledo, Ohio and Ford Ranger midsize pickup and Bronco SUV manufacturing plant in Wayne, Michigan.

Workers also went on strike at Ford Ranger midsize pickup and Ford Bronco SUV plant in Wayne, Michigan and the Jeep assembly plant in Toledo, Ohio.

S&P 500 and Nasdaq Trim Weekly Gains, Crude Oil at 2023 High

Stocks on Wall Street traded down on final day of the week but popular indexes are set to close higher. 

Volatile and popular tech and energy stocks dominated trading on Friday and investors assessed the latest economic data and future rate path. 

Crude oil is set to close higher for the third week in a row on supply worries and immediate month delivery future price hovered near $90 a barrel. 

Tech stocks trimmed weekly gains after Arm Holdings jumped higher for the second day in a row after the company completed its initial public offering and raised $4.9 billion. 

Adobe Inc  edged slightly lower after the company reported quarterly results that matched some analysts' expectations. 

Automakers stocks were also in focus after United Auto Workers decided to strike at three key assembly plants in Michigan,  

For the week, the S&P 500 and the Nasdaq indexes are set to close higher 1.1% and 1.2% after falling 1.5% and 2.0% in the previous week respectively.  

U.S. Indexes & Yields 

The S&P 500 index inched up 0.4% to 4,483.21 and the Nasdaq Composite added 0.2% to 13,834.97. 

The yield on 2-year Treasury notes hovered near 5.03%, 10-year Treasury notes inched slightly higher to 4.31% and 30-year Treasury bonds edged up to 4.40%. 

Crude oil increased $1.13 to $89.73 a barrel and natural gas prices decreased 3 cents to $2.63 a thermal unit. 

The dollar index edged higher to  105.22, the level last seen in March but higher than the low of 99.85 on July 13. 

U.S. Stock Movers 

Adobe Inc declined 3.5% to $533 after the graphic design software developer reported fiscal third quarter results that matched investor expectations. 

Nucor  Corporation declined 2.1% to $162.05 after the specialty steelmaker forecasted third quarter earnings to decline primarily because of lower prices and falling volumes. 

Nucor expects third quarter earnings per share to be in the range of $4.10 to $4.20 per diluted share, second quarter net earning was $5.81 and $6.50 in the third quarter of 2022.

Arm Holdings increased 3.6% to $65.89 and extended gains for the second day in a row after the advanced chip design company priced its initial public offer at $51 a share and raised $4.9 billion. 

Unity Software Inc increased 2.2% to $36.54 after Bank of America upgraded stock to "buy" on the earnings growth expectations in 2024 and 2025. 

General Motors, Ford Motor Company and Stellantis NV after 12,700 United Auto Workers decided to strike at three key assembly plants asking for higher wages and other benefits. 

The union workers decided to strike at General Motors midsize truck manufacturing plan and full-size van production facility in Wentzville, Missouri. 

Workers also walked out at Jeep manufacturing plant in Toledo, Ohio and Ford Ranger midsize pickup and Bronco SUV manufacturing plant in Wayne, Michigan.

Workers also went on strike at Ford Ranger midsize pickup and Ford Bronco SUV plant in Wayne, Michigan and the Jeep assembly plant in Toledo, Ohio.

Europe Movers: Automakers, Bayer, H&M, Luxury Stocks, Power Metal Resources, Vinci

The DAX index decreased 1.0% to 15,961.63, the CAC-40 index increased 1.6% to 7,425.67 and the FTSE 100 index inched up 0.9% to 7,738.88.

For the week, the DAX increased 0.7%, the CAC 40 advanced 1.6% and the FTSE 100 jumped 3.4%. 

Luxury stocks advanced after China reported improving retail sales and industrial output data in August. 

LVMH, Kering SA, Hermes International SCA and Richemont SA jumped between 2% and 5%. 

H & M Hennes & Mauritz AB declined 4.3% to kr 164.16 after the Swedish retailer reported third quarter net sales below expectations. 

Automakers traded higher on the hopes that EU tariffs on the imported Chinese electric cars could help the regional companies. 

Renault, Mercedes, BMW and VW gained around 1%. 

Stellantis NV advanced 1.5% and the company's U.S. operations Chrysler is facing strike at some of its plants. 

Bayer AG increased 1.9% to €49.81 on news that the company is looking to cut management jobs and restructure its operations. 

Vinci SA increased 1.2% to €107.52 after the French company's subsidiary Vinci Construction Grands Projets won an order of €160 million contract to design and build a 180,000 m3 liquefied natural gas tank in The Netherlands.

Power Metal Resources PLC increased 4.2% to 85 pence after the company said there may be two significant gold deposits at its Tati mine in Botswana. 

Games Workshop Group Plc jumped 11.5% to 11,590.0 pence after the maker of the miniature Warhammer game said sales in its latest quarter were ahead of estimates.  

Rate Pause Hopes Pushed Higher European Indexes Second Day

European markets rallied for the second day in a row on hopes that interest rates may be nearing peaks in the region. 

The European Central Bank lifted its three key lending rates for the tenth time on Thursday but revised higher its estimate of inflation for 2023 and 2024. 

Investors focused on the policy makers' assessment of the economy and hoped that the central bank is more likely to pause at its next policy meeting in November and review the cumulative impact of 450 basis points increase in interest rates since June 2022. 

Euro Area Wage Growth Slowed In Second Quarter 

Wages and salaries in the Euro Are rose 4.6% in the second quarter from an upwardly revised 4.9% in the first quarter, Eurostat reported Friday. 

Rising wages showed persistent inflationary pressures in the economy, but wages rose at a slower pace than 6.2% inflation rate, suggesting real income declined. 

Manufacturing wages rose at a slower pace of 3.9% in the second quarter compared to 4.8% in the first quarter construction wages stalled at 4.0% and  the information and communication wage growth eased to 4.6% from 5.0% and financial and insurance activities wage growth slowed to 4.0% from 4.8%. 

Italy Swung to Trade Surplus In July 

Italy swung to a trade surplus of €6.4 billion in July from a deficit of 0.5 billion a year ago, the National Institute of Statistics or ISTAT reported Friday. 

Exports declined 7.7% to €53.5 billion driven by a 57.8% fall in energy, 11.4% decrease in intermediate goods and 6.7% decline in consumer goods. 

Imports dropped 19.4% to €47.1 billion, primarily because of a 58% plunge in energy imports and intermediate goods decreased 18.1% and 4.1% decrease in consumer goods. 

Europe Indexes & Yields

The DAX index decreased 1.0% to 15,961.63, the CAC-40 index increased 1.6% to 7,425.67 and the FTSE 100 index inched up 0.9% to 7,738.88.

For the week, the DAX increased 0.7%, the CAC 40 advanced 1.6% and the FTSE 100 jumped 3.4%. 

The yield on 10-year German bonds increased to 2.65%, French bonds traded higher to 3.19%, the UK gilts edged up to 4.34% and Italian bonds rose to 4.41%.

The euro edged lower to a three-month low to $1.065, the British pound to $1.241 and the U.S. dollar fetched 89.62 Swiss cents.

Brent crude increased $0.46 to $94.16 a barrel and the Dutch TTF natural gas decreased €0.57 to €34.96 per MWh.

Europe Stock Movers

Luxury stocks advanced after China reported improving retail sales and industrial output data in August. 

LVMH, Kering SA, Hermes International SCA and Richemont SA jumped between 2% and 5%. 

H & M Hennes & Mauritz AB declined 4.3% to kr 164.16 after the Swedish retailer reported third quarter net sales below expectations. 

European automakers traded higher on the hopes that EU tariffs on the imported Chinese electric cars could help the regional companies. 

Renault, Mercedes, BMW and VW gained around 1%. 

Stellantis NV advanced 1.5% and the company's U.S. operations Chrysler is facing strike at some of its plants. 

Bayer AG increased 1.9% to €49.81 on news that the company is looking to cut management jobs and restructure its operations. 

Vinci SA increased 1.2% to €107.52 after the French company's subsidiary Vinci Construction Grands Projets won an order of €160 million contract to design and build a 180,000 m3 liquefied natural gas tank in The Netherlands.

Power Metal Resources PLC increased 4.2% to 85 pence after the company said there may be two significant gold deposits at its Tati mine in Botswana. 

Games Workshop Group Plc jumped 11.5% to 11,590.0 pence after the maker of the miniature Warhammer game said sales in its latest quarter were ahead of estimates.