- Arun Goswami
- 09 Oct, 2023
- Mumbai
- Arjun Pandit
- 09 Oct, 2023
- Mumbai
- Arun Goswami
- 06 Oct, 2023
- Mumbai
- Arjun Pandit
- 05 Oct, 2023
- Mumbai
- Arun Goswami
- 04 Oct, 2023
- Mumbai
- Arjun Pandit
- 03 Oct, 2023
- Mumbai
- Barry Adams
- 24 Nov, 2023
- New York City
Market indexes headed higher in early trading, and trading volume is expected to be thin as traders stayed away for the Thanksgiving holiday.
The S&P 500 index and the Nasdaq Composite are set to close higher for the fourth week in a row, the longest winning stretch since June.
Investors have been piling in stocks for the last six weeks in the hopes that the Federal Reserve is done raising rates for now.
Despite the multiple rate hikes totaling 500 basis points over the last eighteen months, the U.S. economy is still expanding at 2%, suggesting that rates are not restrictive enough.
The Federal Reserve is attempting to strike a delicate balance between moderate economic and job market growth and keeping inflation under control.
The yield on the 10-year Treasury drifted lower from the 2007 high reached in September above 5% and declined after three inflation reports showed inflation is cooling but still above the Fed's target rate of 2%.
In Wednesday's trading, the yield on 10-year Treasury bonds drifted just above 4.4%, and the yields edged slightly higher in Friday's trading.
Stock exchanges are scheduled to close at 1 p.m. ET after being closed Thursday for the Thanksgiving holiday.
U.S. Indexes and Yields
The S&P 500 index edged up 0.3% to 4,571.02, and the Nasdaq Composite increased 0.1% to 14,305.08.
For the week, the S&P 500 is up 0.9% and the Nasdaq Composite is up 1.0%.
The yield on 2-year Treasury notes increased to 4.94%, 10-year Treasury notes inched higher to 4.46%, and 30-year Treasury bonds edged up to 4.59%.
Crude oil decreased $0.33 to $76.77 a barrel, and natural gas prices fell 5 cents to $2.86 a thermal unit.
Gold increased $3.70 to $1,995.53 an ounce after the U.S. dollar eased and worries of oil-driven inflation receded following the decline in oil prices.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 103.66.
- Inga Muller
- 24 Nov, 2023
- Frankfurt
European stocks extended their rally for the third week in a row, and the euro and bond yields edged higher after comments from Bundesbank president Joachim Nagel suggesting interest rates are likely to stay higher well into 2024.
The DAX index increased 0.1% to 16,006.53, the CAC-40 index rose 0.08% to 7,283.55, and the FTSE 100 index fell 0.2% to 7,471.34.
For the week, the DAX index increased 0.8%, the CAC-40 index rose 0.7%, and the FTSE 100 index declined 0.4%.
Luxury stocks in Paris were under pressure after one of the largest wealth managers in China said it was deeply insolvent because of loans to property developers.
The Zhongzhi Enterprise Group said its liabilities are between 420 billion yuan and 460 billion yuan, while its total tangible assets were estimated at 200 billion yuan, making the company insolvent.
Kering SA declined 0.8% to €402.80, Richemont dropped 1.7% to CHF 111.60, and LVMH fell 0.8% to €705.80.
Barclays PLC gained 0.7% to 141.30 pence, and a report suggested that the UK-based bank is looking to cut as many as 2,000 jobs as part of a plan to save as much as £1 billion over the next few years.
Trakm8 Holdings PLC dropped 5.2% to 14.70 pence after the telematics data technology company reported its half-year results.
Mining companies traded down after base and precious metal prices softened due to ongoing demand growth worries.
Anglo American decreased 1% to 2,207.77 pence, Glencore fell 1% to 445.0 pence, and Antofagasta dropped 0.7% to 1,414.50 pence.
- Bridgette Randall
- 24 Nov, 2023
- Frankfurt
Movements in the bond and currency markets and investor views on inflation and rate expectations dictated the trading sentiment in the European stock markets.
Yields on bonds in the region rose after comments from Bundesbank president Joachim Nagel suggesting that interest rates are likely to stay higher for longer in 2024.
President Nagel said that the European Central Bank should be cautious and resist attempts to trim rates earlier than needed, and he added that he was skeptical of the "hard landing" risks rooted in the recent interest rate hikes.
Nagel's comments lifted bond yields in the region and also supported the advance in the euro.
The German economy suffered a slight contraction in the third quarter from the previous quarter, the Federal Statistical Office, or Destatis, reported Friday.
GDP decreased 0.1% in the third quarter after adjusting for season and calendar factors. The statistical office confirmed today the preliminary estimate reported in October.
Real GDP decreased by 0.4% from a year ago, and the German economy almost stagnated in the first half of the year due to the weakness in business investment and consumer spending.
A separate survey showed German business confidence improved for the fourth month in a row as the companies were less pessimistic about the current business conditions and immediate future outlook.
The Ifo Business Climate Index improved to 87.3 in November from 86.9 in October, the Ifo Institute reported Friday.
Elsewhere in the region, the producer price index declined 7.8% in October, following a downwardly revised 8.5% decrease in September, the National Statistics Institute, or INE, reported Friday.
Producer prices declined for the eighth month in a row after energy prices continued to decline from a year ago and fell 23.4% in the month after dropping 25.4% in September.
Europe Indexes and Yields
The DAX index increased 0.1% to 16,006.53, the CAC-40 index rose 0.08% to 7,283.55, and the FTSE 100 index fell 0.2% to 7,471.34.
For 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 increased to 2.64%; French bonds traded lower to 3.20%; the UK gilts increased to 4.29%; and Italian bonds inched higher to 4.40%.
The euro rebounded to $1.090, the British pound at $1.255, and the U.S. dollar at 88.38 Swiss cents.
Brent crude increased $0.12 to $81.54 a barrel, and the Dutch TTF natural gas edged higher by €0.46 to €46.38 per MWh.
Europe Stock Movers
Luxury stocks in Paris were under pressure after one of the largest wealth managers in China said it was deeply insolvent because of loans to property developers.
The Zhongzhi Enterprise Group said its liabilities are between 420 billion yuan and 460 billion yuan, while its total tangible assets were estimated at 200 billion yuan, making the company insolvent.
Kering SA declined 0.8% to €402.80, Richemont dropped 1.7% to CHF 111.60, and LVMH fell 0.8% to €705.80.
Barclays PLC gained 0.7% to 141.30 pence, and a report suggested that the UK-based bank is looking to cut as many as 2,000 jobs as part of a plan to save as much as £1 billion over the next few years.
Trakm8 Holdings PLC dropped 5.2% to 14.70 pence after the telematics data technology company reported its half-year results.
Mining companies traded down after base and precious metal prices softened due to ongoing demand growth worries.
Anglo American decreased 1% to 2,207.77 pence, Glencore fell 1% to 445.0 pence, and Antofagasta dropped 0.7% to 1,414.50 pence.
- Inga Muller
- 23 Nov, 2023
- Frankfurt
Market indexes in Frankfurt and Paris edged higher after the downturn in the private sector eased, and Bundesbank president Joachim Nagel said rates may be near terminal levels.
The DAX index increased 0.1% to 15,973.91, the CAC-40 index rose 0.2% to 7,277.51, and the FTSE 100 index fell 0.01% to 7,463.66.
The yield on 10-year German bonds increased to 2.57%; French bonds traded lower to 3.13%; the UK gilts increased to 4.18%; and Italian bonds inched higher to 4.33%.
Energy stocks traded higher despite the fact that crude oil prices continued to decline for the second day in a row after the OPEC+ postponed its meeting as oil-producing nations struggled to decide output levels for the next two months.
BP plc increased 1.4% to 472.65 pence, Shell PLC gained 0.6% to 2,573.50 pence, Repsol SA advanced 0.8% to €13.90, and TotalEnergies SA added 1.4% to €62.74.
Stellantis NV rose 0.5% to €18.65 after the Italian-American-French automotive company repurchased 50 million common shares from Dongfeng Motor for about €934 million.
Endesa SA decreased 2.7% to €18.79 after the Spanish utility company trimmed its profit and dividend estimates.
L M Ericsson AB decreased 1% to kr51.81 after the Swedish telecom group completed the sale of €500 million of green bonds.
Jet2 PLC declined 4.4% to 1,081.0 pence after the travel and holiday company reported its interim results.
A higher travel passenger count and a higher holiday package price contributed to the increase in revenue and profit in the period.
Revenue in the first half ending in September increased 24% to £4.4 billion from £3.6 billion, net income advanced 39% to £496 million from 356 million, and diluted earnings per share rose 231 pence from 139.10 pence a year ago.
The company hiked its quarterly cash dividend to 4 pence from 3 pence a year ago.
However, the company offered a cautionary view of the upcoming winter holiday season, as available seat capacity is up 21% from a year ago to 4.49 million, and the average load factor is down 1.3 percentage points compared to the same period last year.
The company reiterated its pre-tax earnings between £480 million and £520 million, before adjusted for foreign currencies for the full-year ending in March 2024.
PZ Cussons plc rose 1.4% to 139.90 pence after the company said its performance continues to be in line with management expectations and reiterated its fiscal 2024 outlook.
Virgin Money UK plc decreased 3.7% to 151.20 pence after the company reported a drop in annual profit.