- Barry Adams
- 29 Nov, 2023
- New York City
Market indexes advanced on Wall Street, and Treasury yields drifted lower on a stable rate outlook.
The S&P 500 index and the Nasdaq Composite advanced 0.2% in pre-market trading on the hopes that the Federal Reserve is more likely to hold interest rates at the end of the next policy meeting in two weeks.
The S&P 500 index has advanced about 8% and the Nasdaq Composite has gained about 11% in November, amid optimism that the interest rates are closer to peak rates.
Furthermore, the focus of the investor debate has shifted to the timing and magnitude of interest rate cuts in 2024.
The long-foreseen U.S. economic recession is now not likely to materialize in 2024, but investors worry that rates are likely to stay above 5% for most of 2024.
U.S. Indexes and Yields
The S&P 500 index edged up 0.1% to 4,561.04, and the Nasdaq Composite increased 0.2% to 14,252.36.
The yield on 2-year Treasury notes decreased to 4.69%, 10-year Treasury notes inched lower to 4.29%, and 30-year Treasury bonds edged higher to 4.47%.
Crude oil increased $1.68 to $77.89 a barrel, and natural gas prices rose 1 cent to $2.82 a thermal unit.
Gold increased $1.10 to $2,040.96 an ounce after the U.S. dollar eased.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 102.83.
U.S. Stock Movers
General Motors jumped 8.5% to $31.35 after the vehicle maker announced a $10 billion stock buyback, raised its dividend, and reinstated its annual outlook.
The company estimated net income attributable to stockholders between $9.1 billion and $9.7 billion, compared to the previous outlook of $9.3 billion and $10.7 billion.
Diluted earnings per share in the $6.52 to $7.02 range, including the estimated impact of the accelerated stock repurchase, compared to the previous outlook of $6.54 to $7.54
The vehicle maker said it plans to increase its dividend by 33%, or 3 cents per quarter, to 12 cents, beginning with the declaration in January 2024.
GM had about 1.37 billion outstanding shares prior to the announcement of the accelerated stock repurchase program.
Foot Locker jumped 8.5% to $25.85 after the specialty athletic retailer reported better-than-expected quarterly results.
Revenue in the fiscal third quarter ending in October declined 8.6% to $1.99 billion from $2.17 billion, and comparable store sales fell 8.0%.
The company attributed the decline in sales to "ongoing consumer softness," and the closure of Champ stores negatively impacted same-store sales by 3 percentage points.
Net income in the quarter decreased to $28 million from $96 million, and diluted earnings per share dropped to 30 cents from $1.01 a year ago.
The retailer tightened its full-year revenue growth estimate to between 8.0% and 8.5% from the previous guidance between 8.0% and 9.0%, and comparable sales growth to range between 8.0% and 8.5% from 8.0% to 9.0%.
The company entered into a long-term licensing agreement with two retailers in India and will commence sales operations in 2024.
During the third quarter, the company paid a quarterly dividend of $0.40 per share for a total of $38 million and did not repurchase any shares.
- Inga Muller
- 29 Nov, 2023
- Frankfurt
Rate-sensitive stocks in Europe advanced after bond yields fell after rate hike worries eased.
The DAX index increased 0.9% to 16,151.59, the CAC-40 index rose 0.4% to 7,281.60, and the FTSE 100 index declined 0.1% to 7,444.65.
The yield on 10-year German bonds decreased to 2.44%; French bonds traded lower to 3.0%; the UK gilts declined to 4.13%; and Italian bonds inched lower to 4.18%.
Real estate stocks advanced after bond yields declined.
Vonovia SE added 1.9% to €25.81, Segro plc increased 1% to 817.0 pence, LEG Immobilien gained 2.2% to €71.58, and Unibail-Rodamco-Westfield jumped 2.8% to €56.78.
Energy stocks were under pressure ahead of the OPEC+ meeting on Thursday amid uncertainties about the production quota agreement.
BP plc gained 0.2% to 476.15 pence, Shell PLC decreased 0.02% to 2,579.0, TotalEnergies fell 0.9% to €62.59, and Repsol SA declined 0.2% to €14.12.
Later in the day, investors are awaiting quarterly updates from British American Tobacco, Lonza Group, Christian Dior, Diageo, and Lindt & Spruengli.
- Bridgette Randall
- 29 Nov, 2023
- Frankfurt
European bond yields headed lower, and stocks advanced in Wednesday's trading.
Benchmark stock market indexes traded higher after inflation in Spain and Germany edged lower, and comments from the U.S. Federal Reserve suggested that interest rates may not be revised higher.
Fed Governor Christopher Wallace stressed that the central bank's policy is "well positioned" to slow the economy and lower inflation to 2%.
Governor Wallace's comments supported the view that the Federal Reserve is done raising rates for now.
Investors are awaiting the release of the PCE Price Index, an alternative measure of inflation, and the recent decline in inflation has bolstered the case for the third rate pause in a row at the end of the policy meeting ending on December 13.
In economic news, Sweden's economy contracted for the second quarter in a row ending in September, Statistics Sweden reported Wednesday.
GDP in the third quarter sequentially declined 0.3% after falling 0.8% in the second quarter. The economy contracted after household consumption contracted and inventories declined in the quarter.
The third-quarter decline was revised from the flat reading in the preliminary estimate.
From a year ago, GDP contracted 1.4%, following a 0.4% decrease in the second quarter.
German Import Price Slump Extends to Eight Months
German import prices fell for the eighth month in a row, primarily because of higher base comparisons in the previous year, the Federal Statistics Office, or Destatis, reported Wednesday.
Import prices fell by 13.0% from a year ago in October, after falling by 14.3% in the previous month.
Energy import prices fell 43.5% in October after crude oil, natural gas, and coal prices plunged from a high level a year ago due to the war in Ukraine.
Prices of durable goods declined by 0.6%, and those of non-durable consumer goods fell by 0.7%, but capital goods prices advanced by 1.8%.
Spain's Inflation Eased In November
Consumer price inflation in Spain eased to 3.2% in November from 3.5% in the previous two months, the National Statistics Institute or INE, reported Wednesday.
On a monthly basis, consumer price inflation decreased by 0.4% in November after rising by 0.3% in the previous month.
The decline in inflation was driven by the fall in energy prices and the weakness of tourist packages.
Core inflation, which excludes volatile food and energy prices, eased to 4.5% from 5.2% in the previous month.
Overall inflation has been on the decline after peaking at 10.8% in July 2022, and core inflation has been on the slide after peaking at 7.6% in February 2023.
UK Mortgage Approvals Rebounded In October
UK mortgage approvals rose in October after falling for three months in a row, the Bank of England reported on Wednesday.
Net mortgage approvals, an indicator of future borrowings, increased to 47,383 in October from 43,675 in September.
Mortgage approvals rebounded in October after falling for three months in a row.
Mortgage approvals peaked above 100,000 in early January 2021 and declined to a record low of 39,892 in January 2023, barring the pandemic era low and sub-prime crisis in 2007–08.
Europe Indexes and Yields
The DAX index increased 0.9% to 16,151.59, the CAC-40 index rose 0.4% to 7,281.60, and the FTSE 100 index declined 0.1% to 7,444.65.
The yield on 10-year German bonds decreased to 2.44%; French bonds traded lower to 3.0%; the UK gilts declined to 4.13%; and Italian bonds inched lower to 4.18%.
The euro rebounded to $1.097, the British pound at $1.268, and the U.S. dollar at 87.70 Swiss cents.
Brent crude increased $1.04 to $82.71 a barrel, and the Dutch TTF natural gas declined by €0.08 to €42.86 per MWh.
Europe Stock Movers
Real estate sector stocks advanced after bond yields declined.
Vonovia SE added 1.9% to €25.81, Segro plc increased 1% to 817.0 pence, LEG Immobilien gained 2.2% to €71.58, and Unibail-Rodamco-Westfield jumped 2.8% to €56.78.
Energy stocks were under pressure ahead of the OPEC+ meeting on Thursday amid uncertainties about the production quota agreement.
BP plc gained 0.2% to 476.15 pence, Shell PLC decreased 0.02% to 2,579.0, TotalEnergies fell 0.9% to €62.59, and Repsol SA declined 0.2% to €14.12.
- Arun Goswami
- 29 Nov, 2023
- Mumbai
Stocks in Mumbai advanced for the second day in a row and extended the previous week's gains.
The Sensex index increased 262.28 points to 66,436.58, and the Nifty index rose 122.95 points to 20,012.60.
On the Mumbai stock exchange, 105 stocks traded at their 52-week highs and 6 stocks traded at their 52-week lows.
Tata Power Company added 1.7% to ₹275.05 after SJVN awarded the company a 200 MW renewable energy project.
Tata Consultancy Services increased 1.1% to ₹3,509.75, and the company set its ₹17,000 crore stock buyback period between December 1 and December 7.
PCBL jumped 4.3% to ₹265.35 after the company's board approved the purchase of Pune-based specialty chemical maker Aquapharm Chemicals Pvt Ltd for ₹3,800.
Siemens declined 0.7% to ₹3,617.50, and the industrial engineering company reported its latest quarterly results.
Revenue in the quarter rose 25% from a year ago to ₹5,808 crore, but net income declined 12% to 571 crore.
Zomato added 3.8% to ₹118.10, and China-based Alipay is preparing to sell its stake in the delivery service provider.
Alipay is looking to sell a 3.4% stake in the company for about $400 million through block deals on Indian stock exchanges.
The stock sale news was first reported by Reuters.
Adani Group stocks advanced for the second day in a row after the Supreme Court concluded its hearing in the Adani-Hindenburg case.
Adani Enterprises jumped 0.5% to ₹2,435.0, Adani Ports & Special Economic Zone added 0.5% to ₹839.55, Adani Power gained 1.1% to ₹451.50, Adani Wilmar increased 2.6% to ₹357.50, and Adani Total Gas soared 13.8% to ₹732.40.
Aster DM Healthcare jumped 9.7% to ₹365.0 after the company approved the sale of its Middle East business to an entity controlled by promoters for $1.01 billion.
The deal will separate the India operation from its Middle East or Gulf Cooperation Council businesses.
In a carve-out transaction, Alpha GCC Holdings agreed to acquire the network of hospitals, pharmacies, and other medical facilities owned by Aster DM in the Middle East.
Alpha GCC is 35% controlled by the promoter group Aster DM Healthcare and 65% by funds managed by the private equity group Fajr Capital Advisors Limited.
The current market cap of the combined India and GCC businesses is valued at $2.0 billion.
The current transaction values the GCC business at an enterprise value of $1.7 billion, or ₹13,540 crore, and an equity value of $1.0 billion, or ₹8,215 crore.
- Arjun Pandit
- 29 Nov, 2023
- Mumbai
Benchmark indexes in Mumbai opened higher, bonds held firm, crude oil prices traded sideways, and gold jumped to a seven-month high.
The Sensex index and the Nifty index advanced 0.4% and extended gains from the previous session.
In Tuesday's trading, market indexes hovered near the flatline, but in the final hour of trading, the indexes advanced to close firmly in positive territory.
In Wednesday's trading, stocks built on the previous day's gains after domestic investors continued to invest in recent winners: tech services providers, consumer goods, state-owned enterprises, and power generators and distributors.
India Indexes and Yields
The Sensex index increased 262.28 points to 66,436.58, and the Nifty index rose 122.95 points to 20,012.60.
On the Mumbai stock exchange, 105 stocks traded at their 52-week highs and 6 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds edged up to 7.253%, and the Indian rupee weakened to ₹83.27 against the U.S. dollar.
The gold price increased by 0.1% to ₹62,830 per ten grams, and silver rose by 0.2% to ₹77,170 per kilo.
Crude oil decreased by 0.3% to ₹6,390 per barrel, and natural gas rose by 3.7% to ₹233.90 per thermal unit.
India Stock Movers
Tata Power Company added 1.7% to ₹275.05 after SJVN awarded the company a 200 MW renewable energy project.
Tata Consultancy Services increased 1.1% to ₹3,509.75, and the company set its ₹17,000 crore stock buyback period between December 1 and December 7.
Siemens declined 0.7% to ₹3,617.50, and the industrial engineering company reported its latest quarterly results.
Revenue in the quarter rose 25% from a year ago to ₹5,808 crore, but net income declined 12% to 571 crore.
Zomato added 3.8% to ₹118.10, and China-based Alipay is preparing to sell its stake in the delivery service provider.
Alipay is looking to sell a 3.4% stake in the company for about $400 million through block deals on Indian stock exchanges.
The stock sale news was first reported by Reuters.
- Barry Adams
- 28 Nov, 2023
- New York City
Stocks lacked direction, and investors reviewed economic data and the Fed's monetary policy stance after strong gains in the previous four weeks in a row.
Market indexes edged up after Fed Governor Christopher Wallace stressed that the central bank's policy is "well positioned" to slow the economy and lower inflation to 2%.
Governor Wallace's comments supported the view that the Federal Reserve is done raising rates for now.
Investors are awaiting the release of the PCE Price Index, an alternative measure of inflation, and the recent decline in inflation has bolstered the case for the third rate pause in a row at the end of the policy meeting ending on December 13.
Benchmark indexes edged slightly lower in Monday's trading, and investors weighed recent market gains against the earnings outlook, economic growth projections, and holiday sales.
E-commerce-linked stocks advanced after Black Friday sales jumped 7.5% to $9.8 billion from a year ago to a record high, according to the data released by Adobe Analytics.
Sales between Black Friday and Cyber Monday soared 7.7% to $10.3 billion, and sales are expected to cross $12 billion on the busiest shopping day of the year.
The S&P 500 index has jumped 19.2%, and the Nasdaq Composite has advanced 37.2% in the year so far, after the Federal Reserve paused rate hikes at the conclusion of the last two meetings.
U.S. Indexes and Yields
The S&P 500 index edged down 0.002% to 4,549.43, and the Nasdaq Composite increased 0.01% to 14,243.07.
The yield on 2-year Treasury notes increased to 4.88%, 10-year Treasury notes inched higher to 4.40%, and 30-year Treasury bonds edged higher to 4.54%.
Crude oil advanced on the hopes of a deeper production cuts from OPEC+ member nations.
Separately, Kazakhstan slashed its production at three largest oil fields by 56% after storms on the Black Sea curtailed shipment around Caspian Sea.
The storms were part of a weather system that knocked power off in several countries including Moldova, Bulgaria, Serbia, Romania and also forced evacuations in Southern Ukraine and Russia.
Oil loading was halted at the port of Novorossiysk after wind speed crossed 50 miles per hour and waves surged above 25 feet.
Crude oil increased $1.80 to $76.65 a barrel, and natural gas prices rose 1 cent to $2.95 a thermal unit.
Gold increased $27.18 to $2,040.77 an ounce after the U.S. dollar eased.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 102.81.
U.S. Stock Movers
Zscaler decreased 5.2% to $182.0 after the cybersecurity company reported strong gains in quarterly sales and operating earnings.
Stock fell after the company reiterated its fiscal year revenue outlook between $2.09 billion and $2.10 billion.
E-commerce-related stocks advanced following a surge in online shopping during the Thanksgiving holiday.
In Monday's trading, Shopify jumped as much as 4%, Amazon gained 1%, Etsy advanced 5%, and Wayfair edged slightly higher.
European Market Sentiment Weak as Inflation Worries Weigh
European stock markets were under pressure ahead of the release of inflation data in the Euro Area and leading nations of the currency union.
Market participants are anticipating overall inflation in October to range between 2.5% and 4% in the currency union, Germany, France, Spain, and Italy.
Benchmark indexes in the region declined, and inflation jitters kept market sentiment down for the second day in a row.
Overall, inflation has been steadily declining for the last eight months in a row in the Euro Area, but prices are still rising faster than the European Central Bank's target rate of 2%.
The decline in inflation is primarily reflecting lower energy prices, and despite the multiple rate hikes, inflation has been stubbornly anchored in the broader economy.
Moreover, market anxieties were high ahead of the OPEC+ meeting on Thursday, and oil-producing nations are struggling to agree on production quotas.
German Consumer Morale Stayed Weak
German consumer morale stayed weak amid a lack of progress on the broader economic recovery, the GfK Group reported Tuesday.
Germany's GfK Consumer Climate Index inched higher to -27.8 for December from a downwardly revised -27.3 in November.
Economic expectations were nearly unchanged despite the worries of high interest rates, elevated inflation, and economic uncertainties.
Sustained Improvement in French Consumer Morale
The consumer confidence in France increased to 87 in November, the statistical institute of France, INSEE, reported Tuesday.
The confidence level increased to the highest level since April 2022, a 19-month high, after consumers were more optimistic about the outlook for the standard of living and expectations for their personal financial situation; however, worries about employment rose sharply.
Eurozone Bank Lending Drops to New 8-year Low
Bank lending to households in the Euro Area rose by 0.6% from a year ago in October, the European Central Bank reported Tuesday.
The increase in lending to households was the smallest since June 2015, after demand for credit decelerated on the steady rise in interest rates.
Meanwhile, lending to corporations declined by 0.3%, the first decline since July 2015.
But overall lending to the private sector, including households and non-financial institutions, rose by 0.4% in October from 0.2% in September.
Europe Indexes and Yields
The DAX index increased 0.2% to 15,992.67, the CAC-40 index fell 0.2% to 7,250.13, and the FTSE 100 index declined 0.1% to 7,455.24.
The yield on 10-year German bonds decreased to 2.54%; French bonds traded lower to 3.10%; the UK gilts declined to 4.21%; and Italian bonds inched lower to 4.32%.
The euro rebounded to $1.095, the British pound at $1.265, and the U.S. dollar at 88.09 Swiss cents.
Brent crude increased $1.88 to $81.85 a barrel, and the Dutch TTF natural gas declined by €1.27 to €42.77 per MWh.
- Barry Adams
- 28 Nov, 2023
- New York City
Stocks rested as investors mulled over recent economic data and the Fed's monetary policy stance after strong gains in the previous four weeks in a row.
Benchmark indexes edged slightly lower in Monday's trading, and investors weighed recent market gains against the earnings outlook, economic growth projections, and holiday sales.
E-commerce-linked stocks advanced after Black Friday sales jumped 7.5% to $9.8 billion from a year ago to a record high, according to the data released by Adobe Analytics.
Sales between Black Friday and Cyber Monday soared 7.7% to $10.3 billion, and sales are expected to cross $12 billion on the busiest shopping day of the year.
The S&P 500 index has jumped 19.2%, and the Nasdaq Composite has advanced 37.2% in the year so far, after the Federal Reserve paused rate hikes at the conclusion of the last two meetings.
Investors are awaiting the release of the PCE Price Index, an alternative measure of inflation, and the recent decline in inflation has bolstered the case for the third rate pause in a row at the end of the policy meeting in December.
U.S. Indexes and Yields
The S&P 500 index edged down 0.2% to 4,550.21, and the Nasdaq Composite decreased 0.1% to 14,235.71.
The yield on 2-year Treasury notes increased to 4.88%, 10-year Treasury notes inched higher to 4.40%, and 30-year Treasury bonds edged higher to 4.54%.
Crude oil increased $0.72 to $75.57 a barrel, and natural gas prices rose 1 cent to $2.95 a thermal unit.
Gold increased $1.10 to $2,014.66 an ounce after the U.S. dollar eased.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 103.23.
U.S. Stock Movers
Zscaler decreased 5.2% to $182.0 after the cybersecurity company reported strong gains in quarterly sales and operating earnings.
Stock fell after the company reiterated its fiscal year revenue outlook between $2.09 billion and $2.10 billion.
E-commerce-related stocks advanced following a surge in online shopping during the Thanksgiving holiday.
In Monday's trading, Shopify jumped as much as 4%, Amazon gained 1%, Etsy advanced 5%, and Wayfair edged slightly higher.
- Bridgette Randall
- 28 Nov, 2023
- Frankfurt
European stock markets were under pressure ahead of the release of inflation data in the Euro Area and leading nations of the currency union.
Market participants are anticipating overall inflation in October to range between 2.5% and 4% in the currency union, Germany, France, Spain, and Italy.
Benchmark indexes in the region declined, and inflation jitters kept market sentiment down for the second day in a row.
Overall, inflation has been steadily declining for the last eight months in a row in the Euro Area, but prices are still rising faster than the European Central Bank's target rate of 2%.
The decline in inflation is primarily reflecting lower energy prices, and despite the multiple rate hikes, inflation has been stubbornly anchored in the broader economy.
Moreover, market anxieties were high ahead of the OPEC+ meeting on Thursday, and oil-producing nations are struggling to agree on production quotas.
German Consumer Morale Stayed Weak
German consumer morale stayed weak amid a lack of progress on the broader economic recovery, the GfK Group reported Tuesday.
Germany's GfK Consumer Climate Index inched higher to -27.8 for December from a downwardly revised -27.3 in November.
Economic expectations were nearly unchanged despite the worries of high interest rates, elevated inflation, and economic uncertainties.
Sustained Improvement in French Consumer Morale
The consumer confidence in France increased to 87 in November, the statistical institute of France, INSEE, reported Tuesday.
The confidence level increased to the highest level since April 2022, a 19-month high, after consumers were more optimistic about the outlook for the standard of living and expectations for their personal financial situation; however, worries about employment rose sharply.
Eurozone Bank Lending Drops to New 8-year Low
Bank lending to households in the Euro Area rose by 0.6% from a year ago in October, the European Central Bank reported Tuesday.
The increase in lending to households was the smallest since June 2015, after demand for credit decelerated on the steady rise in interest rates.
Meanwhile, lending to corporations declined by 0.3%, the first decline since July 2015.
But overall lending to the private sector, including households and non-financial institutions, rose by 0.4% in October from 0.2% in September.
Europe Indexes and Yields
The DAX index decreased 0.1% to 15,955.74, the CAC-40 index fell 0.4% to 7,234.09, and the FTSE 100 index declined 0.4% to 7,428.85.
The yield on 10-year German bonds decreased to 2.54%; French bonds traded lower to 3.10%; the UK gilts declined to 4.21%; and Italian bonds inched lower to 4.32%.
The euro rebounded to $1.095, the British pound at $1.265, and the U.S. dollar at 88.09 Swiss cents.
Brent crude increased $1.0 to $80.98 a barrel, and the Dutch TTF natural gas declined by €0.97 to €43.02 per MWh.
- Arjun Pandit
- 28 Nov, 2023
- Mumbai
India stocks lacked direction, but Adani Group stocks advanced after the Supreme Court agreed with the earlier findings submitted by SEBI.
The Sensex index decreased 15.51 points to 65,954.51, and the Nifty index rose 19.10 points to 19,811.95.
On the Mumbai stock exchange, 185 stocks traded at their 52-week highs and 22 stocks traded at their 52-week lows.
Adani Group stocks jumped after the Supreme Court said on Friday it did not find any reason to question the probe conducted by the Securities and Exchange Board of India.
The statement effectively ended the request to monitor the company's finances on a long-term basis.
Earlier, the SEBI committee confirmed in a report that it did not find any violation of money transfer from offshore entities, breaking of disclosure rules, or "evidence pattern of manipulation."
Adani Power, Adani Enterprises, and Adani Wilmar jumped 9%, Adani Port & Special Economic Zone advanced 6%, and Adani Total Gas soared 18%.
Maruti Suzuki India advanced 0.2% to ₹10,533.20 after the vehicle maker said it plans to increase prices from January 2024, citing increased cost pressure driven by higher commodity prices.
The Steel Authority of India gained 0.6% to ₹89.80 after the steel product maker said it plans to increase the prices of rails for the Indian Railways due to higher commodity prices.
Eicher Motors decreased 0.5% to ₹3,828.75, and the company launched a new motorbike with a starting price of ₹2,69,000.
Newgen Software Technologies advanced 4.7% to ₹1,343.0 after the company announced a 1-to-1 bonus issue to shareholders on record on January 12, 2024.
Satin Creditcare Network increased 1.4% to ₹246.35 after the company said its board is scheduled to meet on November 30 to discuss the sale of stock or debenture and raise capital.
Jindal Stainless decreased 2.3% to ₹530.55, and a committee of board members approved the closure of its Indonesian subsidiary.
- Arjun Pandit
- 28 Nov, 2023
- Mumbai
Stocks in Mumbai lacked direction in listless trading, and investors looked ahead to the release of economic growth and infrastructure investing data on Thursday.
The Sensex index and the Nifty index hovered near the flatline after investors returned from a three-day holiday.
S&P Global revised its economic growth outlook for the current fiscal year to 6.4% from the previous estimate of 6.0%.
However, the rating agency also lowered its fiscal 2025 growth outlook by 50 basis points to 6.0%.
In overnight trading, benchmark indexes in New York edged lower after stocks advanced for four weeks in a row in the hopes of a stable rate outlook.
India Indexes and Yields
The Sensex index decreased 15.51 points to 65,954.51, and the Nifty index rose 19.10 points to 19,811.95.
On the Mumbai stock exchange, 185 stocks traded at their 52-week highs and 22 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds edged up to 7.25%, and the Indian rupee weakened to ₹83.37 against the U.S. dollar.
The gold price increased by 0.1% to ₹61,638 per ten grams, and silver fell by 0.2% to ₹74,680 per kilo.
Crude oil decreased by 0.2% to ₹6,274 per barrel, and natural gas rose by 1.6% to ₹248.70 per thermal unit.
India Stock Movers
Maruti Suzuki India advanced 0.2% to ₹10,533.20 after the vehicle maker said it plans to increase prices from January 2024, citing increased cost pressure driven by higher commodity prices.
The Steel Authority of India gained 0.6% to ₹89.80 after the steel product maker said it plans to increase the prices of rails for the Indian Railways due to higher commodity prices.
Eicher Motors decreased 0.5% to ₹3,828.75, and the company launched a new motorbike with a starting price of ₹2,69,000.
Newgen Software Technologies advanced 4.7% to ₹1,343.0 after the company announced a 1-to-1 bonus issue to shareholders on record on January 12, 2024.
- Brian Turner
- 27 Nov, 2023
- New York City
New home sales data showed home sales declined 5.6% to an annual rate of 679,000 in October from a 719,000 rate in September, the U.S. Census Bureau reported Monday.
New home sales soared 17.7% from an estimate of 577,000 a year ago.
The median price of new homes sold was $409,300, while the average sales price was $487,000, compared to $496,800 and $543,300, respectively, a year ago.
In the month, sales from the previous month in the West fell 23.3%, dropped 16.4% in the Midwest, but advanced 13.2% in the Northeast and 2.1% in the South.
New home sales in October from a year ago soared in the West by 18.9%, in the South by 19.2%, in the Midwest by 8.5%, and in the Northeast by 10.3%.
The seasonally adjusted estimate of new houses for sale at the end of October was 439,000, representing a supply of 7.8 months at the current sales rate.
- Barry Adams
- 27 Nov, 2023
- New York City
Market indexes rested after advancing for four weeks in a row, and investors refrained from adding more exposure to risky assets.
The S&P 500 and the Nasdaq Composite hovered at a flat line, and investors debated rate paths, economic growth outlooks, and market valuations.
Market sentiment has been positive after the Federal Reserve held the fed funds rate for the second time in a row, and investors stepped up their bets that the central bank is done raising rates for now.
Moreover, three key measures of inflation—consumer price inflation, producer price inflation, and import price inflation—have been on a steady decline for several months.
Investors also bid up stocks after the minutes of the Federal Open Market Committee in early November sent mixed signals about the health of the economy and the need for restrictive rates until more evidence emerges about the downward trend of inflation.
In November so far, the S&P500 index increased 8.6% and the Nasdaq Composite soared 11%.
Investors have been bidding up stocks despite leading retailers, including Walmart, Lowe's Companies, Target, and Best Buy, issuing a cautionary outlook for holiday sales last week.
New home sales data showed home sales declined 5.6% to an annual rate of 679,000 in October from a 719,000 rate in September, the U.S. Census Bureau reported Monday.
New home sales soared 17.7% from an estimate of 577,000 a year ago.
The median price of new homes sold was $409,300, while the average sales price was $487,000, compared to $496,800 and $543,300, respectively, a year ago.
U.S. Indexes and Yields
The S&P 500 index edged down 0.2% to 4,550.21, and the Nasdaq Composite decreased 0.1% to 14,235.71.
The yield on 2-year Treasury notes increased to 4.92%, 10-year Treasury notes inched higher to 4.43%, and 30-year Treasury bonds edged higher to 4.57%.
Crude oil decreased $0.42 to $75.10 a barrel, and natural gas prices fell 8 cents to $2.77 a thermal unit.
Gold increased $6.55 to $2,008.72 an ounce after the U.S. dollar eased.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 103.40.
- Inga Muller
- 27 Nov, 2023
- Frankfurt
European markets lacked direction and stock hovered near flatline as investors awaited data on inflation and jobs later in the week.
The DAX index decreased 0.2% to 15,994.35, the CAC-40 index fell 0.1% to 7,284.72, and the FTSE 100 index declined 0.1% to 7,477.72.
In the week, the DAX index increased 0.8%, the CAC-40 index rose 0.7%, and the FTSE 100 index declined 0.4%.
The yield on 10-year German bonds decreased to 2.62%; French bonds traded lower to 3.17%; the UK gilts declined to 4.26%; and Italian bonds inched lower to 4.35%.
Julius Baer Group declined 2% to CHF 45.82 after the Swiss bank disclosed a CHF 70 million charge against a loan in its private loan business.
The bank said the nominal exposure of CHF 606 million is comprised of three loans to one "European conglomerate" linked to commercial real estate and luxury retail and "is now subject to long-term restructuring."
Veolia Environnement SA rose 0.5% to €28.36 after the French water, waste, and renewable energy management solution provider agreed to sell its SADE-CGTH to NGE for €260 million.
SADE provides civil engineering works and network construction, mainly in the water sector. It generated 2022 revenue of around €1.1 billion and employed around 6,900 people.
Valneva SE rose 1.6% to €5.29 after the French drug maker's application for chikungunya vaccine candidate VLA1553 was accepted by the European Medicines Agency.
Sanofi SA added 1.3% to €87.52 after the French drug company announced positive results for its experimental drug Dupixent (dupilumab) Phase 3 trial in chronic obstructive pulmonary disease, or "smoker's lung."
The second large trial showed improvement in exacerbations of the disease by 34%, confirming the findings in the first trial earlier in the year known as BOREAS.
After the positive results, the company and Regeneron are looking to file an accelerated application with the U.S. Food and Drug Administration before the end of the year, following promising results.
Aviva plc added 0.07% to 425.0 pence after the UK-based insurance company agreed to acquire Canada-based vehicle replacement insurance company Otiom O2 Holdings Inc. for about £100 million.
Rightmove Plc jumped 5.7% to 538.0 pence after the real estate listing portal reported better-than-expected revenue and the company lifted its 2023 revenue outlook.
"The acquisition expands Aviva’s capital-light businesses, which make up over half of Aviva’s portfolio, and grows Aviva Canada’s presence in a profitable segment of the Canadian insurance market," said the company in a statement to investors.
- Bridgette Randall
- 27 Nov, 2023
- Frankfurt
European market indexes traded lower in Monday's trading, and investors looked ahead to the release of jobs and inflation data in the region later in the week.
Benchmark indexes in Frankfurt, Paris, and London declined following the increases in the previous two weeks in a row.
In the European Union, this week economists are awaiting the release of inflation and job data from the Euro Area, Germany, France, and Italy.
The euro hovered at its two-month high against the U.S. dollar, and the yields on bonds in the region traded at three-month highs.
Market sentiment in European stock trading has been driven by the expectation that European Central Bank policymakers are done raising interest rates for now.
Moreover, the steady decline in inflation in the last eight months has fueled expectations that interest rates may not have to be raised to bring down inflation to the central bank's target rate of 2%.
However, the cooling of inflation is contrasted by the fact that despite the multiple interest rate hikes, inflation is still significantly above the target rate, and the central bank may have to keep rates higher well into 2024.
Europe Indexes and Yields
The DAX index decreased 0.2% to 15,994.35, the CAC-40 index fell 0.1% to 7,284.72, and the FTSE 100 index declined 0.1% to 7,477.72.
In the week, the DAX index increased 0.8%, the CAC-40 index rose 0.7%, and the FTSE 100 index declined 0.4%.
The yield on 10-year German bonds decreased to 2.62%; French bonds traded lower to 3.17%; the UK gilts declined to 4.26%; and Italian bonds inched lower to 4.35%.
The euro rebounded to $1.095, the British pound at $1.261, and the U.S. dollar at 88.05 Swiss cents.
Brent crude increased $1.34 to $79.23 a barrel, and the Dutch TTF natural gas declined by €2.46 to €44.16 per MWh.
Europe Stock Movers
Julius Baer Group declined 2% to CHF 45.82 after the Swiss bank disclosed a CHF 70 million charge against a loan in its private loan business.
The bank said the nominal exposure of CHF 606 million is comprised of three loans to one "European conglomerate" linked to commercial real estate and luxury retail and "is now subject to long-term restructuring."
Veolia Environnement SA rose 0.5% to €28.36 after the French water, waste, and renewable energy management solution provider agreed to sell its SADE-CGTH to NGE for €260 million.
SADE provides civil engineering works and network construction, mainly in the water sector. It generated 2022 revenue of around €1.1 billion and employed around 6,900 people.
Valneva SE rose 1.6% to €5.29 after the French drug maker's application for chikungunya vaccine candidate VLA1553 was accepted by the European Medicines Agency.
Sanofi SA added 1.3% to €87.52 after the French drug company announced positive results for its experimental drug Dupixent (dupilumab) Phase 3 trial in chronic obstructive pulmonary disease, or "smoker's lung."
The second large trial showed improvement in exacerbations of the disease by 34%, confirming the findings in the first trial earlier in the year known as BOREAS.
After the positive results, the company and Regeneron are looking to file an accelerated application with the U.S. Food and Drug Administration before the end of the year, following promising results.
Aviva plc added 0.07% to 425.0 pence after the UK-based insurance company agreed to acquire Canada-based vehicle replacement insurance company Otiom O2 Holdings Inc. for about £100 million.
Rightmove Plc jumped 5.7% to 538.0 pence after the real estate listing portal reported better-than-expected revenue and the company lifted its 2023 revenue outlook.
"The acquisition expands Aviva’s capital-light businesses, which make up over half of Aviva’s portfolio, and grows Aviva Canada’s presence in a profitable segment of the Canadian insurance market," said the company in a statement to investors.