- Barry Adams
- 13 Dec, 2023
- New York City
Stocks on Wall Street advanced ahead of the rate decision from the Federal Reserve later in the day.
Benchmark indexes edged higher on the wide belief that the Federal Reserve is set to leave rates unchanged. The Federal Reserve is expected to announce its decision at 2:00 p.m. ET today.
Investors are also looking forward to comments from Federal Reserve Chair Jerome Powell.
Powell is expected to counter the belief that interest rates are near peak levels and that the central bank is preparing to lower rates as early as the first quarter of 2024.
The two latest inflation reports showed a mixed picture on the inflation front. Consumer price inflation in November eased to 3.1%, but the core rate of inflation held steady at 4.0%.
The latest update on producer prices showed that wholesale inflation held steady in November.
Investors also reviewed the persistent decline in energy prices, and crude oil prices extended their weekly decline to the eighth week in a row.
Investors have bid up stocks for the last six consecutive weeks in the belief that interest rates are more likely to decline.
But the Federal Reserve may keep higher rates for longer before strong evidence emerges that inflation is on a sustainable downward path to the Fed's target rate of 2%.
Wholesale Inflation Held Steady In November
The Producer Price Index was unchanged from the previous month in November after adjusting for seasonal factors, the Bureau of Labor Statistics reported Wednesday.
On an unadjusted basis, the producer price index increased 0.9% from a year ago.
Producer Price Index for final demand, less food, energy, and trade services, edged up 0.1% in November from the previous month and rose 2.5% from a year ago.
U.S. Indexes and Yields
The S&P 500 index gained 0.2% to 4,651.25, and the Nasdaq Composite increased 0.3% to 14,578.05.
The yield on 2-year Treasury notes decreased to 4.72%, 10-year Treasury notes inched lower to 4.18%, and 30-year Treasury bonds increased to 4.28%.
Crude oil decreased $0.11 to $68.85 a barrel, and natural gas prices fell 0.1 cent to $2.30 a thermal unit.
Gold increased $2.04 to $1,981.42 an ounce ahead of the Fed's rate decision on Wednesday.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged higher to 103.94.
U.S. Stock Movers
Tesla declined 1.0% to $234.65 after the electric vehicle maker recalled about 2 million vehicles to fix an Autopilot defect.
Pfizer decreased 7.2% to $26.83 after the pharmaceutical company reported a weaker-than-anticipated 2024 revenue outlook.
Full-year revenue is anticipated to range between $58.5 billion and $61.5 billion, and the company said earnings are likely to be negatively impacted by its recent acquisition of cancer treatment-focused biotech company Seagen.
- Inga Muller
- 13 Dec, 2023
- Frankfurt
European stock market indexes hovered near the flatline ahead of the rate decision from the Federal Reserve later today.
The DAX index increased 0.1% to 16,810.98, the CAC-40 index rose 0.3% to 7,566.88, and the FTSE 100 index advanced 0.3% to 7,562.41.
The yield on 10-year German bonds decreased to 2.20%; French bonds traded lower to 2.74%; the UK gilts eased to 3.91%; and Italian bonds inched higher to 3.99%.
Energy exploration companies declined after crude oil prices dropped 4% in the previous session.
BP plc, Shell PLC, TotalEnergies SE, and Repsol fell around 0.3%.
Entain PLC rose 4.5% to 842.40 pence on a report that its chief executive, Jett Nygaard-Andersen, is stepping down and the board has appointed Stella David, a non-executive director, as interim chief executive until a permanent replacement has been found.
In August, the owner of Ladbrokes and Coral bookmakers set aside £585 million to cover penalties and fines related to a tax authority investigation into alleged illegal practices linked to a Turkish-facing online betting and gaming business that the company owned between 2011 and 2017.
Inditex rose 1.2% to €38.75 after the Spanish apparel retailer reported strong holiday sales and lifted its fiscal year 2023 margin outlook.
Net sales in the nine-month period ending in October increased to €25.6 billion from €23.0 billion, net income rose to €4.1 billion from €3.1 billion, and net income per share rose to €1.32 from 99 euro cents.
Gross margin increased 67 basis points from a year ago to 59.4%, and for the full-year 2023, the company estimated gross margin to increase by 75 basis points from a year ago.
- Bridgette Randall
- 13 Dec, 2023
- New York City
European market indexes were little changed after the release of the eurozone industrial production data and ahead of the Federal Reserve's rate decision later in the day.
Benchmark indexes in Frankfurt, Parris, and London edged higher, and the euro drifted lower.
Eurozone Industrial Output Shrank In October
Eurozone industrial output declined 0.7% from the previous month in October, Eurostat reported Wednesday.
The decline in output moderated after falling 1.0% in September.
Capital goods output fell 1.4% following a 0.6% decrease in both intermediate goods and non-durable consumer goods.
On the other hand, durable goods output rose by 0.2%, and energy output rose by 1.1%.
Industrial output declined 6.6% from a year ago.
UK GDP Unexpectedly Contracted In October
The UK GDP unexpectedly contracted by 0.3% in October from the previous month after rising by 0.2% in September, the Office for National Statistics reported on Wednesday.
GDP expanded 0.3% from a year ago, slower than 1.3% in September.
The pound inched lower after the release of the GDP report.
Europe Indexes and Yield
The DAX index increased 0.1% to 16,810.98, the CAC-40 index rose 0.3% to 7,566.88, and the FTSE 100 index advanced 0.3% to 7,562.41.
The yield on 10-year German bonds decreased to 2.20%; French bonds traded lower to 2.74%; the UK gilts eased to 3.91%; and Italian bonds inched higher to 3.99%.
The euro traded lower to $1.078, the British pound inched lower to $1.253, and the U.S. dollar eased to 87.62 Swiss cents.
Brent crude decreased $0.15 to $73.09 a barrel, and the Dutch TTF natural gas increased by €0.17 to €34.88 per MWh.
Europe Stock Movers
Weak energy prices dragged down the stocks of oil explorers, refiners, and marketers.
BP plc, Shell PLC, TotalEnergies SE, and Repsol fell around 0.3%.
Entain PLC rose 4.5% to 842.40 pence on a report that its chief executive, Jett Nygaard-Andersen, is stepping down and the board has appointed Stella David, a non-executive director, as interim chief executive until a permanent replacement has been found.
In August, the owner of Ladbrokes and Coral bookmakers set aside £585 million to cover penalties and fines related to a tax authority investigation into alleged illegal practices linked to a Turkish-facing online betting and gaming business that the company owned between 2011 and 2017.
Inditex rose 1.2% to €38.75 after the Spanish apparel retailer reported strong holiday sales and lifted its fiscal year 2023 margin outlook.
Net sales in the nine-month period ending in October increased to €25.6 billion from €23.0 billion, net income rose to €4.1 billion from €3.1 billion, and net income per share rose to €1.32 from 99 euro cents.
- Arun Goswami
- 13 Dec, 2023
- Mumbai
Stocks in Mumbai traded down after consumer price inflation rebounded in November, and investors overlooked the 4% decline in international crude oil prices.
The Sensex index decreased 111.51 points to 69,439.53, and the Nifty index fell 39.75 points to 20,866.50.
On the Mumbai stock exchange, 171 stocks traded at their 52-week highs and 7 stocks traded at their 52-week lows.
In Wednesday's trading, tech services exporters were among the leading decliners, and automakers and consumer product makers led the gainers.
TCS, Infosys, Wipro, and Tech Mahindra declined between 1% and 2.5%.
HDFC Bank, Kotak Mahindra, and the State Bank of India declined by around 0.3%.
Mankind Paharma rose 0.1% to ₹1,855.90, and three private equity firms sold 7.9% stakes in the company worth ₹5,589 crore.
Max Healthcare Institute rose 1.5% to ₹710.35 and extended gains for the fifth day in a row after the company agreed to acquire Lucknow-based 550-bed Sahara Hospital for ₹940 crore.
Paul Merchants rose 2.0% to ₹3,755.05 after the company board is scheduled to meet on December 20 to consider a stock bonus issue.
Axis Bank declined 1% to ₹1,119.35 on a report that the private equity firm Bain Capital is looking to sell a 1% stake in the company.
KIOCL declined 1.3% to ₹366.45 after the iron ore mining company halted processing at its Mangalore plant due to the lack of availability of iron ore fines.
SRF Ltd. advanced 0.8% to ₹2,398.0 after the maker of specialty intermediate chemicals said it had commissioned two of the four manufacturing plants.
The company's investment in two plants has been capitalized at ₹255 crore.
- Arjun Pandit
- 13 Dec, 2023
- Mumbai
Stocks in Mumbai lost early gains after investors reviewed the latest global and domestic macroeconomic data.
India's industrial output growth soared to a 16-month high after double-digit increases in power, mining, and manufacturing production.
However, consumer price inflation rebounded to 5.55% in November from 4.87% in October after food price inflation accelerated, the National Statistics Office reported on Tuesday.
Overall inflation accelerated to a 4-month high after food price inflation jumped to a three-month high of 8.7% after agriculture output fell because of four-month low monsoon rains in 2023.
The Sensex and the Nifty indexes edged up after crude oil plunged nearly 4% in New York trading on rising supplies from the U.S., Canada, Brazil, and Guyana in the face of weak demand growth from China.
India imports more than 60% of its energy needs, and lower oil prices reduce the country's import bill.
In overnight trading, market indexes in the U.S. reached a new 52-week high after consumer price inflation edged lower to 2.1% in November from 3.2% in October.
The softer inflation reduces pressure on the Federal Reserve to keep higher interest for longer and maneuver the economy to a soft landing while cooling inflation.
Industrial Output Growth Jumped to 16-month High
India's industrial production increased by 11.7% in October, a 16-month high, the National Statistics Office reported late Monday.
The index advanced after manufacturing, and power output increased by double digits in the month.
Manufacturing output increased 10.4% from a year ago when the output contracted 5.8%, power generation soared 20.4% from a year ago, and mining output advanced 13.1%.
India Indexes and Yields
The Sensex index decreased 111.51 points to 69,439.53, and the Nifty index fell 39.75 points to 20,866.50.
On the Mumbai stock exchange, 171 stocks traded at their 52-week highs and 7 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds held firm at 7.26%, and the Indian rupee hovered near ₹83.37 against the U.S. dollar.
The gold price decreased by 0.1% to ₹61,108 per ten grams, and silver fell by 0.4% to ₹71,591 per kilo.
Crude oil decreased by 0.1% to ₹5,758 per barrel, and natural gas fell by 3.9% to ₹188.60 per thermal unit.
India Stock Movers
In Wednesday's trading, tech services exporters were among the leading decliners, and automakers and consumer product makers led the gainers.
TCS, Infosys, Wipro, and Tech Mahindra declined between 1% and 2.5%.
HDFC Bank, Kotak Mahindra, and the State Bank of India declined by around 0.3%.
Mankind Paharma rose 0.1% to ₹1,855.90, and three private equity firms sold 7.9% stakes in the company worth ₹5,589 crore.
Max Healthcare Institute rose 1.5% to ₹710.35 and extended gains for the fifth day in a row after the company agreed to acquire Lucknow-based 550-bed Sahara Hospital for ₹940 crore.
Paul Merchants rose 2.0% to ₹3,755.05 after the company board is scheduled to meet on December 20 to consider a stock bonus issue.
Axis Bank declined 1% to ₹1,119.35 on a report that the private equity firm Bain Capital is looking to sell a 1% stake in the company.
- Barry Adams
- 12 Dec, 2023
- New York City
Stocks gained after bulls and bears found something to talk about in the latest inflation report.
The S&P 500 index and the Nasdaq Composite extended their gains for the fourth day in a row and for the last six consecutive weeks.
Both indexes reached new 52-week intraday highs after the latest inflation report met investors expectations, but core inflation stayed significantly above the Fed's target level.
The Federal Reserve is also set to announce its rate decision Wednesday at the end of its two-day policy meeting.
Investors widely anticipate the central bank holding the fed funds rate range between 5.25% and 5.50% for the third time in a row.
Market indexes have soared and stretched this year's gains in the hopes that the robust labor market conditions are likely to help the Federal Reserve navigate the economy to slower growth near 2% and avoid a recession while simultaneously cooling inflation to its target range of 2%.
U.S. Consumer Price Inflation Slowed to 3.1%
The consumer price index in November rose 0.1% from the previous month and increased 3.1% from a year ago, the Bureau of Labor Statistics reported Tuesday.
Core inflation, which excludes food and energy, rose 0.3% in November after rising 0.2% in October.
On an annual basis, core inflation rose 4.0%, matching the expectations set by a group of five economists surveyed by Ticker.com.
Energy prices declined 5.4%, reflecting lower prices for gasoline, while food prices rose 2.9% and shelter costs soared 6.4% from a year ago.
U.S. Indexes and Yields
The S&P 500 index gained 0.3% to 4,633.45, and the Nasdaq Composite increased 0.4% to 14,495.94.
The yield on 2-year Treasury notes decreased to 4.69%, 10-year Treasury notes inched lower to 4.18%, and 30-year Treasury bonds increased to 4.28%.
Crude oil prices dropped 4% and extended the decline of the previous seven consecutive weeks after the latest inflation report raised the prospect of weakening demand.
Oil prices have been under pressure following the surging production in the U.S., Canada, and Brazil, and new supplies from Guyana are also adding to the global markets.
Crude oil decreased $2.95 to $68.35 a barrel, and natural gas prices fell 12 cent to $2.30 a thermal unit.
Gold increased $6.64 to $1,988.15 an ounce ahead of the release of the inflation report today and the Fed's rate decision on Wednesday.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged higher to 103.87.
U.S. Stock Movers
Lucid Group decreased 2.8% to $4.48 after the company said chief financial officer Sherry House is resigning, effective immediately, to pursue other opportunities.
Ms. House will be available in an advisory role through the end of the year to assist in the transition of her duties.
Hasbro declined 5.3% to $46.30 after the toymaker announced its plan to lay off 1,100 workers, according to a memo cited by CNBC.
"The toymaker is grappling with soft sales that have continued into the holiday season and are “likely to persist into 2024,” chief executive Chris Cocks said in the memo to internal staff.
Alphabet Inc. decreased 0.7% to $132.33 after a federal jury in California ruled against the company's Google Android App Store filed by Fortnite video game maker Epic Games.
In a unanimous verdict, the jury said that the company's Android app Store has violated antitrust laws and secured billions of dollars in profit by forcing Play Store customers to use its high-priced payment processing.
Google said it plans to challenge the jury verdict, and the company will appeal the decision.
Oracle Corp. declined 8.9% to $104.91 after the database giant reported weaker-than-expected revenue in the fiscal second quarter.
The company reported weaker-than-estimated revenue in the cloud segment and database license support.
European Markets Traded Around Flatline
The European markets traded higher, and investors awaited rate decisions from the European Central Bank and other central banks this week.
Benchmark indexes in Germany and France advanced and traded near recent highs, but the market indexes in London edged lower on the persistent weakness in commodity prices.
Economic news dominated market sentiment, and investors reviewed the latest decline in the German wholesale price index and the slower wage growth in the UK.
German Wholesale Prices Decline Extended to 8th Month
Germany's wholesale prices declined 3.6% in November following the falls of 4.2% in October and 4.1% in September, the Federal Statistics Office, or Desatis, reported Tuesday.
Wholesale inflation declined for the eighth month in a row, reflecting higher prices in the previous year because of the war in Ukraine.
Wholesale prices fell 0.2% from the previous month, but at a slower pace than the 0.7% decline in October.
Petroleum product prices decreased by 13.9%; grain, seed, and tobacco prices by 24.3%; chemical products by 20.9%; and metals and semi-finished metal products by 12.8%.
On the other hand, wholesale prices for fruits and vegetables jumped 14.8%, sugar, confectionary, and bakery products increased 10.1%, and beverage prices increased 7.4%.
UK Wage Growth Slowed, Jobless Rate Held Steady at 4.2%
Weekly regular wages in the UK increased less than expected in the three months to October, the Office for National Statistics reported Tuesday.
Regular weekly wages, excluding bonuses, increased 7.3% to £620 in the period, slower than the upwardly revised 7.8% in the previous period ending in September.
The average wage, including bonuses, increased 7.2% from a year ago, slower than the revised 8.0% increase in the previous period.
The regular wage rose at a slower pace for the second time in a row and advanced at the slowest pace in six months.
Wage growth in the private sector slowed to 7.3% from 7.9%, and wages in the public sector rose 6.9% compared to 7.4% in the previous period.
Real wages, after adjusting for inflation, rose 1.4%.
The unemployment rate held steady from the previous period at 4.2% in the three months to October.
Job vacancies declined for the 17th period in a row, and vacancies fell for the longest period on record but were still higher than pre-pandemic levels, the ONS said in the report.
Job vacancies decreased by 45,000 to 949,000 in the quarter ending in November from the previous quarter ending in August.
The estimated number of jobs in the workforce expanded to a record 36.8 million in September, an increase of 210,000 from June.
Europe Indexes and Yield
The DAX index decreased 0.02% to 16,791.74, the CAC-40 index fell 0.2% to 7,543.11, and the FTSE 100 index fell 0.03% to 7,542.77.
The yield on 10-year German bonds increased to 2.29%; French bonds traded higher to 2.78%; the UK gilts rose to 3.98%; and Italian bonds inched higher to 4.01%.
The euro traded lower to $1.079, the British pound inched lower to $1.256, and the U.S. dollar eased to 87.66 Swiss cents.
Brent crude decreased $3.04 to $72.98 a barrel, and the Dutch TTF natural gas declined by €1.42 to €34.70 per MWh.
Europe Stock Movers
Rate-sensitive stocks were in focus ahead of the interest rate decision and policy announcement from the European Central Bank on Thursday.
BNP Paribas, Societe Generale, Deutsche Bank, Commerzbank, and UniCredit declined between 0.1% and 1.5%.
Allianz, Swiss Re, Generali, Aegon, and Mapfre declined between 0.2% and 1.5%.
Nokia Oyj rose 1.3% to €2.98 after the telecom equipment maker lowered its profitability goal after the company lost a multi-year contract with the U.S.-based AT&T.
- Scott Peters
- 12 Dec, 2023
- New York City
Lucid Group decreased 2.8% to $4.48 after the company said chief financial officer Sherry House is resigning, effective immediately, to pursue other opportunities.
Ms. House will be available in an advisory role through the end of the year to assist in the transition of her duties.
Hasbro declined 5.3% to $46.30 after the toymaker announced its plan to lay off 1,100 workers, according to a memo cited by CNBC.
"The toymaker is grappling with soft sales that have continued into the holiday season and are “likely to persist into 2024,” chief executive Chris Cocks said in the memo to internal staff.
Alphabet Inc. decreased 0.7% to $132.33 after a federal jury in California ruled against the company's Google Android App Store filed by Fortnite video game maker Epic Games.
In a unanimous verdict, the jury said that the company's Android app Store has violated antitrust laws and secured billions of dollars in profit by forcing Play Store customers to use its high-priced payment processing.
Google said it plans to challenge the jury verdict, and the company will appeal the decision.
Oracle Corp. declined 8.9% to $104.91 after the database giant reported weaker-than-expected revenue in the fiscal second quarter.
The company reported weaker-than-estimated revenue in the cloud segment and database license support.
Revenue in the fiscal second quarter ending in November increased 5% to $12.9 billion, net income advanced $2.5 billion from $1.74 billion, and diluted earnings per share 89 cents from 63 cents.
The company announced cash dividend of 40 cents to shareholders on record on January 11, 2024 and payable on January 25, 2024.
- Brian Turner
- 12 Dec, 2023
- New York City
The consumer price index in November rose 0.1% from the previous month and increased 3.1% from a year ago, the Bureau of Labor Statistics reported Tuesday.
Core inflation, which excludes food and energy, rose 0.3% in November after rising 0.2% in October.
On an annual basis, core inflation rose 4.0%, matching the expectations set by a group of five economists surveyed by Ticker.com.
Energy prices declined 5.4%, reflecting lower prices for gasoline, while food prices rose 2.9% and shelter costs soared 6.4% from a year ago.
- Barry Adams
- 12 Dec, 2023
- New York City
Stocks advanced in early trading on Wall Street after the latest inflation report matched market expectations.
The S&P 500 index and the Nasdaq Composite traded higher for three days in a row, and two popular benchmarks gained for six consecutive weeks.
The Federal Reserve is also set to announce its rate decision Wednesday at the end of its two-day policy meeting.
Investors widely anticipate the central bank holding the fed funds rate range between 5.25% and 5.50% for the third time in a row.
Market indexes have soared and stretched this year's gains in the hopes that the robust labor market conditions are likely to help the Federal Reserve navigate the economy to slower growth near 2% and avoid a recession while simultaneously cooling inflation to its target range of 2%.
U.S. Consumer Price Inflation Slowed to 3.1%
The consumer price index in November rose 0.1% from the previous month and increased 3.1% from a year ago, the Bureau of Labor Statistics reported Tuesday.
Core inflation, which excludes food and energy, rose 0.3% in November after rising 0.2% in October.
On an annual basis, core inflation rose 4.0%, matching the expectations set by a group of five economists surveyed by Ticker.com.
Energy prices declined 5.4%, reflecting lower prices for gasoline, while food prices rose 2.9% and shelter costs soared 6.4% from a year ago.
U.S. Indexes and Yields
The S&P 500 index gained 0.2% to 4,614.87, and the Nasdaq Composite increased 0.03% to 14,407.05.
The yield on 2-year Treasury notes decreased to 4.69%, 10-year Treasury notes inched lower to 4.18%, and 30-year Treasury bonds increased to 4.28%.
Crude oil decreased $0.44 to $70.91 a barrel, and natural gas prices fell 1 cent to $2.44 a thermal unit.
Gold increased $6.64 to $1,988.15 an ounce ahead of the release of the inflation report today and the Fed's rate decision on Wednesday.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged higher to 103.70.
U.S. Stock Movers
Lucid Group decreased 2.8% to $4.48 after the company said chief financial officer Sherry House is resigning, effective immediately, to pursue other opportunities.
Ms. House will be available in an advisory role through the end of the year to assist in the transition of her duties.
Hasbro declined 5.3% to $46.30 after the toymaker announced its plan to lay off 1,100 workers, according to a memo cited by CNBC.
"The toymaker is grappling with soft sales that have continued into the holiday season and are “likely to persist into 2024,” chief executive Chris Cocks said in the memo to internal staff.
Alphabet Inc. decreased 0.7% to $132.33 after a federal jury in California ruled against the company's Google Android App Store filed by Fortnite video game maker Epic Games.
In a unanimous verdict, the jury said that the company's Android app Store has violated antitrust laws and secured billions of dollars in profit by forcing Play Store customers to use its high-priced payment processing.
Google said it plans to challenge the jury verdict, and the company will appeal the decision.
Oracle Corp. declined 8.9% to $104.91 after the database giant reported weaker-than-expected revenue in the fiscal second quarter.
The company reported weaker-than-estimated revenue in the cloud segment and database license support.
- Inga Muller
- 12 Dec, 2023
- Frankfurt
Stocks across Europe traded higher ahead of rate decisions from the European Central Bank, the Bank of England, the Swiss National Bank, and the Norges Bank.
The DAX index increased 0.2% to 16,830.29, the CAC-40 index rose 0.4% to 7,576.04, and the FTSE 100 index fell 0.6% to 7,578.66.
The yield on 10-year German bonds increased to 2.29%; French bonds traded higher to 2.78%; the UK gilts rose to 3.98%; and Italian bonds inched higher to 4.01%.
Rate-sensitive stocks were in focus ahead of the interest rate decision and policy announcement from the European Central Bank on Thursday.
BNP Paribas, Societe Generale, Deutsche Bank, Commerzbank, and UniCredit declined between 0.1% and 1.5%.
Allianz, Swiss Re, Generali, Aegon, and Mapfre declined between 0.2% and 1.5%.
Nokia Oyj rose 1.3% to €2.98 after the telecom equipment maker lowered its profitability goal after the company lost a multi-year contract with the U.S.-based AT&T.
AstraZeneca plc gained 1.7% to 10,266.0 pence after the company agreed to acquire the U.S.-based Icosavax Inc.
The Seattle, Washington-based company agreed to an offer price of $15 per share with an additional milestone-based payment of $5 per share.
The initial cash payment is about $838 million, a 43% premium to the closing price on December 11.
Icosavax’s lead program is a combination vaccine candidate targeting respiratory syncytial virus and human metapneumovirus.
Hedlam Group dropped 4.7% to 201.0 pence after the company announced a settlement with insurance companies linked to the Kidderminster building fire in 2021.
The company also reiterated its full-year outlook but cautioned that November sales volume and revenue remained "below the previous year and seasonal uplifts."
Hargreaves Lansdown dropped 7.2% to 712.0 pence after the UK regulator warned of possible regulatory action related to client charges.
Renault SA increased 0.03% to €38.01, and the French automaker announced its plan to sell a 5% stake in Nissan under the company's stock repurchase program.
Hannover Re added 0.9% to €222.40 after the German reinsurance company estimated higher earnings in the full year.
Carl Zeiss Meditec AG soared 8.6% to €95.46 after the German medical technology company reported better-than-expected annual revenue.
Sales in the fiscal year rose 9.8% to €2.1 billion from €1.90 billion, but earnings before interest and taxes declined to €348 million from €397 million.
The EBIT margin declined to 16.7% from 20.9% in the previous year, and the adjusted EBIT margin dropped to 17.4% from 21.4% a year ago, nearing the low end of its estimated range between 17% and 20%.
- Bridgette Randall
- 12 Dec, 2023
- Frankfurt
The European markets traded higher, and investors awaited rate decisions from the European Central Bank and other central banks this week.
Benchmark indexes in Germany and France advanced and traded near recent highs, but the market indexes in London edged lower on the persistent weakness in commodity prices.
Economic news dominated market sentiment, and investors reviewed the latest decline in the German wholesale price index and the slower wage growth in the UK.
German Wholesale Prices Decline Extended to 8th Month
Germany's wholesale prices declined 3.6% in November following the falls of 4.2% in October and 4.1% in September, the Federal Statistics Office, or Desatis, reported Tuesday.
Wholesale inflation declined for the eighth month in a row, reflecting higher prices in the previous year because of the war in Ukraine.
Wholesale prices fell 0.2% from the previous month, but at a slower pace than the 0.7% decline in October.
Petroleum product prices decreased by 13.9%; grain, seed, and tobacco prices by 24.3%; chemical products by 20.9%; and metals and semi-finished metal products by 12.8%.
On the other hand, wholesale prices for fruits and vegetables jumped 14.8%, sugar, confectionary, and bakery products increased 10.1%, and beverage prices increased 7.4%.
UK Wage Growth Slowed, Jobless Rate Held Steady at 4.2%
Weekly regular wages in the UK increased less than expected in the three months to October, the Office for National Statistics reported Tuesday.
Regular weekly wages, excluding bonuses, increased 7.3% to £620 in the period, slower than the upwardly revised 7.8% in the previous period ending in September.
The average wage, including bonuses, increased 7.2% from a year ago, slower than the revised 8.0% increase in the previous period.
The regular wage rose at a slower pace for the second time in a row and advanced at the slowest pace in six months.
Wage growth in the private sector slowed to 7.3% from 7.9%, and wages in the public sector rose 6.9% compared to 7.4% in the previous period.
Real wages, after adjusting for inflation, rose 1.4%.
The unemployment rate held steady from the previous period at 4.2% in the three months to October.
Job vacancies declined for the 17th period in a row, and vacancies fell for the longest period on record but were still higher than pre-pandemic levels, the ONS said in the report.
Job vacancies decreased by 45,000 to 949,000 in the quarter ending in November from the previous quarter ending in August.
The estimated number of jobs in the workforce expanded to a record 36.8 million in September, an increase of 210,000 from June.
Europe Indexes and Yield
The DAX index increased 0.2% to 16,830.29, the CAC-40 index rose 0.4% to 7,576.04, and the FTSE 100 index fell 0.6% to 7,578.66.
The yield on 10-year German bonds increased to 2.29%; French bonds traded higher to 2.78%; the UK gilts rose to 3.98%; and Italian bonds inched higher to 4.01%.
The euro traded lower to $1.079, the British pound inched lower to $1.256, and the U.S. dollar eased to 87.66 Swiss cents.
Brent crude increased $0.13 to $76.16 a barrel, and the Dutch TTF natural gas increased by €0.58 to €35.54 per MWh.
Europe Stock Movers
Rate-sensitive stocks were in focus ahead of the interest rate decision and policy announcement from the European Central Bank on Thursday.
BNP Paribas, Societe Generale, Deutsche Bank, Commerzbank, and UniCredit declined between 0.1% and 1.5%.
Allianz, Swiss Re, Generali, Aegon, and Mapfre declined between 0.2% and 1.5%.
Nokia Oyj rose 1.3% to €2.98 after the telecom equipment maker lowered its profitability goal after the company lost a multi-year contract with the U.S.-based AT&T.
- Arun Goswami
- 12 Dec, 2023
- Mumbai
Stocks in Mumbai lacked direction, and investors turned cautious ahead of rate decisions from major central banks in the U.S., UK, the Euro Area, Norway, and Switzerland later in the week.
Most central banks are expected to leave rates unchanged, and investors believe that the central banks of the U.S. and Euro Area are likely to cut rates as early as the first quarter of 2024.
The Sensex index increased 5.24 points to 69,933.99, and the Nifty index rose 11.15 points to 21,008.35.
On the Mumbai stock exchange, 221 stocks traded at their 52-week highs and 7 stocks traded at their 52-week lows.
Dixon Technologies jumped 3% to ₹6,571.50 after the company's subsidiary Padget Electronics won a contract to manufacture laptops and notebooks from Taiwan-based Lenovo.
J&K Bank soared 8% to ₹135.20 after the financial company launched ₹750 crore institutional offering with a floor price of ₹112.50 per share.
Mankind Pharma declined 2.6% to ₹1,868.0 on a CNBC-TV 18 report that several investors are looking to sell the stock in a block deal.
Beige Investment, Cairnhill CIPEF, Cairnhill CGPE, Hema CIPEF, and Link Investment Trust are reported to be among the likely sellers.
Infosys declined 0.7% to ₹1,478.40 after the company appointed Jayesh Sanghrajka as chief financial officer.
Chief Financial Officer Nilanjan Roy resigned to pursue other personal goals outside the company.
DLF decreased 0.4% to ₹664.15, and chief financial officer Vivek Anand tendered his resignation.
Sun Pharmaceutical decreased 0.9% to ₹1,230.20, and the company raised its offer price to acquire outstanding shares of its U.S. subsidiary Taro Pharma.
Rail Vikas Nigam added 1.4% to ₹180.75 after the company won an order worth ₹543 crores from the Madhya Pradesh Metro Rail Corporation.
BLS International jumped 6.9% to ₹316.80 after the company won an order to process visa and passport services from the High Commission of India in Canada.
- Arjun Pandit
- 12 Dec, 2023
- Mumbai
India stocks advanced amid a positive economic backdrop and a steady flow of funds from domestic and international investors.
The Nifty and the Sensex indexes gained more than 0.3%, and rate-sensitive stocks were among the leading gainers in Tuesday's trading.
In overnight trading in New York, benchmark indexes closed higher after lackluster trading, and investors awaited the release of consumer price inflation later on Tuesday.
The Federal Reserve is widely expected to hold rates at the end of its 2-day policy meeting on Wednesday, and the Bank of England, the European Central Bank, the Swiss National Bank, and the Norges Bank are scheduled to announce their decisions later in the week.
Asian markets advanced following the gains in New York, and the benchmark indexes in Tokyo, Shanghai, Hong Kong, and Seoul advanced.
Japan's producer price index in November edged up 0.3% from a year ago, slower than the upwardly revised 0.9% in October, the Bank of Japan reported Tuesday.
The producer price index rose at the slowest pace since February 2021 and fell for the eleventh month in a row.
Tech stocks and exporting companies were among the gainers in Tokyo trading, and the yen hovered near 145 against the U.S. dollar.
India Indexes and Yields
The Sensex index increased 5.24 points to 69,933.99, and the Nifty index rose 11.15 points to 21,008.35.
On the Mumbai stock exchange, 221 stocks traded at their 52-week highs and 7 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds held firm at 7.27%, and the Indian rupee hovered near ₹83.35 against the U.S. dollar.
The gold price increased by 0.3% to ₹61,305 per ten grams, and silver rose by 0.4% to ₹72,145 per kilo.
Crude oil increased by 0.2% to ₹6,021 per barrel, and natural gas rose by 1.7% to ₹202.20 per thermal unit.
India Stock Movers
Dixon Technologies jumped 3% to ₹6,571.50 after the company's subsidiary Padget Electronics won a contract to manufacture laptops and notebooks from Taiwan-based Lenovo.
J&K Bank soared 8% to ₹135.20 after the financial company launched ₹750 crore institutional offering with a floor price of ₹112.50 per share.
Mankind Pharma declined 2.6% to ₹1,868.0 on a CNBC-TV 18 report that several investors are looking to sell the stock in a block deal.
Beige Investment, Cairnhill CIPEF, Cairnhill CGPE, Hema CIPEF, and Link Investment Trust are reported to be among the likely sellers.
Infosys declined 0.7% to ₹1,478.40 after the company appointed Jayesh Sanghrajka as chief financial officer.
Chief Financial Officer Nilanjan Roy resigned to pursue other personal goals outside the company.
DLF decreased 0.4% to ₹664.15, and chief financial officer Vivek Anand tendered his resignation.
Sun Pharmaceutical decreased 0.9% to ₹1,230.20, and the company raised its offer price to acquire outstanding shares of its U.S. subsidiary Taro Pharma.
Rail Vikas Nigam added 1.4% to ₹180.75 after the company won an order worth ₹543 crores from the Madhya Pradesh Metro Rail Corporation.
BLS International jumped 6.9% to ₹316.80 after the company won an order to process visa and passport services from the High Commission of India in Canada.
- Barry Adams
- 11 Dec, 2023
- New York City
Stocks managed to advance after struggling to rise above the flatline in early trading on Wall Street, and investors awaited rate decisions and inflation reports later in the week.
The S&P 500 index and the Nasdaq Composite lacked direction in Monday's trading after both indexes advanced for the previous six consecutive weeks.
Merger Monday also lived up to its reputation, and three deals dominated market headlines.
Cigna abandoned its pursuit to acquire Humana; two private equity groups announced a deal to acquire the retailer Macy's; and Occidental Petroleum agreed to acquire the Permian Basin-based CastleRock energy producer.
Investors debated the future rate path and awaited the Fed's rate decision and inflation reports later in the week.
Consumer price inflation in November is expected to match 3.2% rate in October, reflecting stable energy and food prices.
The Federal Reserve is widely expected to hold the fed funds rate between 5.25% and 5.50% for the third time in a row, and investors are looking forward to the central bank's forecast on inflation and annual GDP growth.
Moreover, the European Central Bank and the Bank of England are also expected to leave their reference rates unchanged this week, and the Bank of Japan is expected to follow the trend next week.
Metals and mining stocks were under pressure after China's consumer prices fell 0.3% from a year ago in November and the producer price index declined 3% in the month.
The worries of deflation gripped trading in China, and the Hang Seng index rebounded from the 2% loss in Monday's trading to a decline of 0.8% at close, and the SSE Composite recovered from a loss of 0.7% to close up 0.8%.
Investors are worried that China's ongoing property market troubles are likely to linger for several years, and residential real estate prices are expected to fall between 10% and 30% before stabilizing in smaller cities.
On the earnings front, investors are looking ahead to earnings updates from Oracle on Monday, Adobe on Wednesday, and Costco Wholesale on Thursday.
U.S. Indexes and Yields
The S&P 500 index gained 0.2% to 4,614.87, and the Nasdaq Composite increased 0.03% to 14,407.05.
The yield on 2-year Treasury notes increased to 4.76%, 10-year Treasury notes inched higher to 4.28%, and 30-year Treasury bonds increased to 4.36%.
Crude oil decreased $0.50 to $70.72 a barrel, and natural gas prices fell 20 cents to $2.37 a thermal unit.
Gold increased $8.84 to $1,994.55 an ounce after the U.S. economy added more than expected jobs in November, raising the prospect that the Federal Reserve is more likely to keep higher rates for longer to bring down inflation to the target rate of 2%.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged higher to 104.27.
U.S. Stock Movers
Cigna Group jumped 16% to $300.48 after the company announced its plan to repurchase $10 billion of its stock, and the company is still looking to sell its Medicare Advantage management business.
Cigna abandoned its plan to acquire Humana and return capital to shareholders after the two companies could not agree on price and deal terms.
The merger of the two would have created a company with a market value of more than $140 billion, but the merger deal also faced tall antitrust regulatory hurdles.
The news was first reported by the Wall Street Journal and independently verified by Ticker.com.
Humana declined 1.8% to $473.06.
Macy's jumped 16.7% to $20.22 after the department store retailer received a buyout offer of $5.8 billion from Arkhouse Management and Brigade Capital Management.
Occidental Petroleum Corp. declined 0.8% to $56.0 after the company said it agreed to buy CrownRock for $12 billion.
The company said after the merger, free cash flow is expected to increase on a diluted share basis, including $1 billion in the first year based on the WTI crude oil price of $70 per barrel.
Occidental intends to finance the $12.0 billion purchase with the incurrence of $9.1 billion of new debt, the issuance of approximately $1.7 billion of common equity, and the assumption of CrownRock’s $1.2 billion of existing debt.
The deal will add approximately 170,000 barrels of oil equivalent per day and 1,700 undeveloped locations to Occidental's portfolio in the Permian Basin.
The transaction to acquire a Midland, Texas-based company is expected to close in the first quarter of 2024.
Occidental also announced its plan to increase its quarterly cash dividend by 4 cents to 22 cents in February 2024.
European Markets Edged Slightly Higher Ahead of Rate Decision
Stocks lacked direction in trading across Europe, and investors awaited rate decisions from several central banks.
Market indexes rested after extending their gains for the third week in a row in the hopes that the European Central Bank is done raising rates for now.
The DAX index in Frankfurt touched a new high last week before edging lower in Friday's trading.
Moreover, stronger-than-expected U.S. job additions in November also raised hopes that the Federal Reserve will have more room to maneuver the economy to a soft landing while cooling inflation to its target rate of 2%.
Closer-to-home investors are awaiting interest rate decisions this week from the European Central Bank, the Bank of England, Norges Bank, and the Swiss National Bank.
The U.S. Federal Reserve, the ECB, the BoE, and the SNB are expected to leave rates unchanged.
Investors are looking forward to inflation, retail sales, and factory orders reports in the U.S., the Euro Area trade balance, and China’s industrial production, retail sales, and housing prices later in the week.
Europe Indexes and Yields
The DAX index increased 0.3% to 16,811.84, the CAC-40 index rose 0.4% to 7,553.69, and the FTSE 100 index fell 0.1% to 7,544.89.
In the previous week, the DAX index advanced 1.6%, the CAC-40 index gained 2.2%, and the FTSE 100 index gained 0.2%.
The yield on 10-year German bonds increased to 2.25%; French bonds traded higher to 2.81%; the UK gilts rose to 4.04%; and Italian bonds inched higher to 4.06%.
The euro traded lower to $1.076, the British pound inched lower to $1.255, and the U.S. dollar eased to 87.96 Swiss cents.
Brent crude decreased $0.15 to $75.66 a barrel, and the Dutch TTF natural gas increased by €2.50 to €36.10 per MWh.
Europe Stock Movers
Mining stocks traded mixed after China's consumer prices fell at the fastest pace in November and the U.S. dollar continued to drift lower against the euro and the pound.
Glencore declined 3.3% to 442.05 pence, Antofagasta increased 1.2% to 1,532.50 pence, and Anglo American gained 1.6% to 1,831.60 pence.
Encavis AG decreased 7.5% to €13.64 after the German renewable energy producer was downgraded to "underweight" from "equal-weight" by Morgan Stanley.
Schibsted ASA jumped 6.2% to €24.20 after the Norwegian company agreed to sell its news operations to Tinius Trust.
The total transaction value in the agreement is NOK 6.2 billion, consisting of NOK 5.4 billion for Schibsted’s News Media business area, Schibsted’s minority stakes in Norsk Telegrambyrå AS, Nyhetsbyrån AB, and Lokalavisene AS, and the stake in Polaris valued at NOK 0.8 billion based on the volume-weighted average price of Polaris the week prior to the agreement.
The company plans to use the proceeds of sales to return to shareholders.
Sandvik AB jumped 0.9% to kr213.0 after the company won an order worth 250 Swedish kronor from the Swedish mining company LKAB to supply automated loaders.
Domino's Pizza Group eased 0.1% to 393.20 pence after the pizza delivery company reiterated its fiscal year 2023 guidance.
Casino Guichard Perrachon SA increased 0.1% to €0.72 after the company said that Group Calleja has initiated the process in Colombia of acquiring the company's stake in Almacenes Exito S.A.
MorphoSys AG soared 9.2% to €27.06 after the German company announced positive results from a Phase III myelofibrosis trial.
Basilea Pharmaceutica AG added 5% to CHF 36.50 after the Swiss company's license partner Astellas Pharma received approval from the U.S. Food and Drug Administration to expand the use of the antifungal Cresemba (isavuconazole) in children with invasive aspergillosis and invasive mucormycosis.