Movers: Apple, Capital One Financial, First Republic Bank, Micron Tech, Regional Banks, Taiwan Semi, Tesla

Semiconductor stocks were in focus after Samsung said it plans to halt memory chip production in the near term after the weakness in demand for electronic and computing devices. 

Taiwan Semiconductor Mfg Co Ltd declined 1.8% to $88.60 after the company reported a decline in March sales. 

Revenue in March declined 10.9% from the previous month and plunged 15% fr.4om a year ago to NT$145.4 billion. 

Sales in the March quarter increased 3.6% to NT$508.6 billion. 

Micron Technology jumped 4.7% to $61.35 but Qualcomm Inc declined 1.2% to $121.50.  

Tesla Inc dropped 4% to $177.53 after the company said plans to cut vehicle prices again in China and build another factory to produce electric vehicle batteries. 

Capital One Financial Corp decreased 1.7% to $93.28 after the financial services company said in a regulatory filing that Walmart Inc is suing the company to end its partnership agreement. 

First Republic Bank declined 0.8% to $13.92 after the embattled regional bank disclosed in a regulatory filing that it suspended dividend on its preferred stock. 

"As a measure of prudent oversight, the Board of  Directors determined to suspend payment of the quarterly cash dividend on each series of the bank’s outstanding noncumulative perpetual  preferred stock," said the company in a filing with the SEC. 

Apple Inc declined 2.1% to $161.29 after International Data Corporation said global PC shipments fell 30% in the first quarter and Mac shipments dropped 40% in the three-month period.

Regional banks were in focus after the latest data from the Federal Reserve showed deposit withdrawals slowed in the previous week. 

For the week ending March 29, seasonally adjusted deposits at all banks declined $64.7 billion or 0.37% compared to $172.1 billion or nearly 1% in the previous week. 

PacWest Bancorp increased 1.6%, Zions Bancorporation added 0.6%, East West Bancorp gained 0.4% and Western Alliance Bancorporation advanced 0.9%.  

U.S. Stocks Turn Lower On Earnings Recession Worries

Stocks on Wall Street opened lower after recession worries resurfaced after a week of choppy trading. 

Last week, four separate reports on the labor market showed that the U.S. economy is still creating new jobs but at a slower pace and labor market conditions are tight. 

After a long weekend in today's session investors worried that slowing labor market expansion may forecast a rolling recession and despite the moderating price increases overall inflation is still significantly higher than the Fed's target rate. 

Investors are also awaiting the release of earnings from banks later in the week and JP Morgan Chase, Wells Fargo and Citigroup are scheduled to report earnings on Friday. 

In addition, investors are looking forward to the release of consumer price inflation data on Wednesday followed by the release of wholesale price inflation on Thursday. 

U.S. Indexes & Yields 

The S&P 500 index decreased 0.6% to 4,80.60 and the Nasdaq Composite index declined 1.2% to 11,940.88. 

The yield on 2-year Treasury notes inched up to 3.96%, 10-year Treasury notes advanced to 3.38% and 30-year Treasury bonds decreased to 3.58%. 

Crude oil edged down 31 cents to $80.36 a barrel and natural gas futures jumped 16 cents to $2.16 a thermal unit. 

U.S. Stock Movers 

Semiconductor stocks were in focus after Samsung said it plans to halt memory chip production in the near term after the weakness in demand for electronic and computing devices. 

Taiwan Semiconductor Mfg Co Ltd declined 1.8% to $88.60 after the company reported a decline in March sales. 

Revenue in March declined 10.9% from the previous month and plunged 15% fr.4om a year ago to NT$145.4 billion. 

Sales in the March quarter increased 3.6% to NT$508.6 billion. 

Micron Technology jumped 4.7% to $61.35 but Qualcomm Inc declined 1.2% to $121.50.  

Tesla Inc dropped 4% to $177.53 after the company said plans to cut vehicle prices again in China and build another factory to produce electric vehicle batteries. 

Capital One Financial Corp decreased 1.7% to $93.28 after the financial services company said in a regulatory filing that Walmart Inc is suing the company to end its partnership agreement. 

Eight OPEC+ oil producing nations - led by Saudi Arabia, UAE and Kuwait - announced to remove 1.16 million barrels per day starting May until the end of the year. 

The product cut announced on Sunday was designed to separate the alliance from international pressure. Previously Russia had announced its production cut target of 500,000 barrels per day starting this month, increasing the total production cut by 1.66 million barrels a day. 

The Joint Ministerial Monitoring Committee's meeting on Monday acknowledged the voluntary production cuts, but did not announce its own policy change.   

Saudi Arabia led the voluntary production cuts with 500,000 barrels per day. Iraq said it plans to cut its production by 211,000, UAE by 144,000, Kuwait by 128,000, Kazakhstan by 78,000,  Algeria by 48,000, Oman by 40,000 and Gabon by 8,000. 

The U.S. international trade deficit expanded in February, the Bureau of Economic Analysis reported Wednesday. 

Exports in February decreased 2.7% from the previous month to $251.2 billion and imports fell 1.5% to $321.7 billion, resulting in a trade deficit rise of 2.7% to $70.5 billion. 

The deficit with China increased $3.2 billion to $25.2 billion in February, driven by $1.4 billion decrease in exports to $13.1 billion and $1.8 billion increase in imports to $38.2 billion.

U.S. based employers cut jobs for the third month in a row, according to a report released by Challenger, Gray & Christmas, Inc on Thursday. 

Employers announced 89,703 job cuts in March, 15% higher than 77,770 in February and soared 319% from 21,387 a year ago. The job cuts were higher from a year ago for the third month in a row. 

Employers announced 270,416 cuts in the first quarter, a 396% increase from the 55,696 cuts announced a year ago and the highest first quarter total since 2020 when 346,683 were announced.

U.S. economy added 236,000 net new jobs as employers slow hiring amid rising costs and interest rates, the U.S. Bureau of Labor Statistics reported Friday. 

The unemployment rate declined to 3.5% from 3.6% in February. 

Both the unemployment rate, at 3.5%, and the number of unemployed persons, at  5.8 million, changed little in March. These measures have shown little net movement  since early 2022.

U.S. economy added downwardly revised 472,000 new jobs in January and upwardly revised 326,000 in February, significantly higher than the long-term monthly average of less than 190,000. 

Average hourly earnings rose 0.3% in March to $33.18 and increased 4.2% on an annual basis but the increase dropped to the lowest level since June 2021. 

Slower Job Growth, Flat Jobless Rate and Weaker Wage Gains In March

March nonfarm payroll employment report provided another confirmation of cooling but tight labor market conditions.

U.S. economy added jobs at a slower pace in March, but still above the long-term monthly average of 190,000, suggesting the jobs market is growing at a healthy pace.

Nonfarm payroll employment report offered another signal to policymakers after two private surveys on private sector job additions and job cuts announcements showed similar cooling trends in the labor market.  

Earlier in the week, another report from the  government showed available jobs declined to a 2-year low.  

The U.S. economy created 236,000 net new jobs as employers slow hiring amid rising costs and interest rates, the U.S. Bureau of Labor Statistics reported Friday. 

The unemployment rate declined to 3.5% from 3.6% in February. 

The unusually mild weather and seasonal factors drove hiring in the first two months but job market growth has been slowing after the surge in January and February. 

Both the unemployment rate, at 3.5%, and the number of unemployed persons, at  5.8 million, changed little in March. 

These measures have shown little net movement  since early 2022.

U.S. economy added downwardly revised 472,000 new jobs in January and upwardly revised 326,000 in February, significantly higher than the long-term monthly average of less than 190,000. 

The recent trends of job additions linked to travel and hospitality and health care sectors were visible in March. 

Leisure and hospitality added 72,000 jobs,  government  expanded payrolls 47,000, professional and business services increased 39,000 and health care added 34,000.

However, retail trade shrank the labor force by 15,000. 

Average hourly earnings rose 0.3% in March to $33.18 and increased 4.2% on an annual basis but the increase dropped to the lowest level since June 2021. 

The labor force participation rate inched higher to 62.6% and employment to population ratio rose to 60.4% in March but stayed below the pre-pandemic February 2020 level of 63.3% and 61.1% respectively.   

The total nonfarm payroll employment for January was downwardly revised by 32,000, from 504,000 to 472,000, and the February employment was revised up by  15,000, from 311,000 to 326,000. 

After these revisions, employment in January and February combined is 17,000 lower than previously estimated.

Slower Job Additions In March Confirm Cooling but Tight Labor Market

Futures of benchmark indexes and Treasury yields advanced after the latest jobs report provided another confirmation of cooling but tight labor market conditions.

U.S. economy added jobs at a slower pace in March, but still above the long-term monthly average of 190,000, suggesting the jobs market is growing at a healthy pace. 

Nonfarm payroll employment report offered another signal to policymakers after two private surveys on private sector job additions and job cuts announcements showed similar cooling trends in the labor market.  

Earlier in the week, another report from the  government showed available jobs declined to a 2-year low.   

Treasury yields rose after the release of the nonfarm employment report showed employers are expanding payrolls despite nine rate hikes over the last year. 

Benchmark index futures traded higher on the hopes that the recent cooling trends in the labor market may convince policymakers to slow or even pause future rate hikes. 

The New York Stock Exchange is closed for Good Friday and regular trading is scheduled to resume on Monday and the bond market close at 12:00 p.m. ET. 

Futures market closed at 9:15 a.m. ET. 

Job Growth Slowed In March

The U.S. economy created 236,000 net new jobs as the employers slow hiring amid rising costs and interest rates, the U.S. Bureau of Labor Statistics reported Friday. 

The unemployment rate declined to 3.5% from 3.6% in February. 

The unusually mild weather and seasonal factors drove hiring in the first two months but jobs market growth has been slowing after the surge in January and February. 

Both the unemployment rate, at 3.5%, and the number of unemployed persons, at  5.8 million, changed little in March. 

These measures have shown little net movement  since early 2022.

The U.S. economy added 472,000 new jobs in January and 326,000 in February, significantly higher than the long-term monthly average of less than 190,000. 

The recent trends of job additions linked to travel and hospitality and health care sectors were visible in March. 

Leisure and hospitality added 72,000 jobs,  government  expanded payrolls 47,000, professional and business services increased 39,000 and health care added 34,000.

However, retail trade shrank the labor force by 15,000. 

Average hourly earnings rose 0.3% in March and increased 4.2% on an annual basis and dropped to the lowest level since June 2021. 

Indexes & Yields 

The S&P 500 index futures advanced 0.2% and the Nasdaq Composite index added 0.1%.  

The yield on 2-year Treasury notes advanced 12 basis points to 3.95%, 10-year notes increased 7 basis points to 3.35% and 30-year Treasury bonds to 3.58%. 

Crude oil edged up 9 cents to $80.70 a barrel and natural gas declined 14 cents to $2.01 a thermal unit. 

European Markets Extended Gains After Data Suggested Resilient Economic Activities

European markets traded higher after investors focused on regional economic data and prepared for the start of earnings season next week. 

German industrial output rose on a monthly basis in February driven by the sustained demand in the automotive sector, the leading contributor. 

In addition, the UK home prices rose for the third month in a row, reflecting the resilient demand in the island nation. 

Elsewhere, investors reviewed the two latest U.S. jobs reports showing weakening trends in the otherwise tight labor market conditions. 

 U.S. initial weekly jobless claims rose more than expected in the last week and the number of announced job cuts soared in March and in the first quarter. 

Previously the U.S. government agency reported that the available jobs declined to below 10 million for the first time in two years.

Moreover, private employers slowed hiring in March, indicating that the multiple rate hikes over the last thirteen months may be finally having an impact on the labor market. 

Stocks in the Euro Area advanced on encouraging German industrial production data supporting strong factory orders data released earlier in the week. 

Stocks closed on a higher note ahead of Good Friday and Easter holidays.  

German Industrial Output Increased in February 

German industrial output expanded in February driven by the sustained activities in the automotive sector, the Federal Statistics Office or Destatis reported Thursday. 

Output increase slowed to 2.0% on a monthly basis from 3.7% in January and on an annual basis industrial production increased 0.6% after falling 1.6% respectively.  

Production of capital goods expanded 3.4%, intermediate goods increased 1.8% and consumer goods rose 1.4%, indicating all industrial sectors expanded. 

Motor vehicles and parts manufacturing, the largest industrial sector, increased 7.6% 

Excluding energy and construction, industrial production rose 2.4% in February from January after adjusting for seasonal and calendar factors. 

UK Home Market Showed Resilience 

UK home prices rose for the third month in a row, in March reflecting the sustained demand despite higher prices, Lloyds Bank subsidiary Halifax reported Thursday. 

Home prices rose 0.8% on a monthly basis after rising for 1.2% in each of the previous two months in a row. 

On an annual basis, home prices rose 1.6% from a year ago, slowing from 2.1% rise in February, the weakest rate of annual growth in nearly three-and-a-half years since October 2019, having fallen markedly since  June 2022’s record rise of 12.5%.

Average home price in the UK increased to £287,880 from £285,660 in February and average home prices in London are up 0.1% from a year ago with the average property costing £537,250. 

Indexes & Yields 

The DAX index gained 0.5% to 15,597.89, the CAC-40 index added 0.1% to 7,324.75 and the FTSE 100 index advanced 1.03% to 7,741.56. 

For the week, the DAX added 0.4%, the CAC-40 increased 0.7% and the FTSE 100 index increased 1.6%. 

The yield on 10-year German Bunds  closed at 2.18%, French bonds at 2.76%, the UK gilts at 3.43% and Italian bonds at 4.02%. 

The euro inched higher to $1.09, the British pound to $1.24 and the Swiss franc to 90.40 cents.   

Brent crude oil increased 13 cents to $85.12 a barrel and the Dutch TTF natural gas fell Є1.45 to Є43.13 per MWh. 

Europe Movers 

Shell Plc increased 1.8% after the London-listed energy company forecasted higher liquefied natural gas output in the first quarter. 

Temenos AG advanced 1% on a news report that the company is seeking proposals from private equity groups.

Gerresheimer AG declined 3% despite the packaging maker for medical products and devices reporting higher quarterly earnings and reiterating its annual outlook. 

Robert Walters dropped 8% after the company reported flat first quarter profit. 

Movers: Bed Bath & Beyond, Barrick Gold, Costco, FedEx, Newmont Corp

Bed Bath & Beyond Inc declined 7.4% to 31 cents  after the company proposed a reverse stock split plan so the struggling retailer can raise more equity capital. 

"We need to raise equity capital to have the necessary cash resources to fund operations and service obligations under our Credit Agreement,” the company said in a regulatory filing.

Costco Wholesale Corporation fell 2.4% to $484.90 after the specialty retailer reported a decline in comparable sales in March. 

The retailer reported net sales of $21.71 billion in March, the five weeks ended April  2, 2023, an increase of 0.5% from $21.61 billion last year.

Comparable sales in the period declined 1.1% across all regions and dropped 1.5% in the U.S. and e-commerce sales decreased 12.7%. 

Comparable sales excluding gasoline in the U.S. rose 0.9% and adjusted for foreign exchange increased 7.4% in Canada and 7.6% in international markets. 

FedEx Corp increased 1.5% to $233.49 after the company announced its restructuring plan and a change in executive compensation program. 

The parcel delivery company is looking to save $4 billion in costs by the fiscal year 2024 and realign its executive compensation packages that are more in line with shareholder interests. 

Newmont Corporation closed unchanged at $52.08 and Barrick Gold Corp increased 0.3% to $19.73 after gold traded above $2,000 an ounce for the third day in a row. 

Gold fell $12.02  to $2,008.33 but traded near the high it reached since October 2020 as investors fear recession after four jobs reports in two days shows weakening trends in the labor market. 

Seasonally Adjusted Weekly Jobless Claims Declined Under New Methodology

Initial jobless claims for the week ending on April 1 declined 18,000 to 228,000, the U.S. Department of Labor said in its weekly report Thursday. 

Jobless claims for the previous week were sharply revised higher to 248,000 from the first estimate of 196,000, reflecting a change in the methodology of adjusting for seasonality.    

The 4-week moving average was 237,750, a decrease of 4,250 from the previous week's revised average. 

The previous  week's average was revised up by 43,750 from 198,250 to 242,000. 

The preliminary number of actual initial claims under state programs, unadjusted, totaled 206,931 in the week ending April  1, a decrease of 17,262 from 194,671 claims in the comparable week a year ago. 

The advance unadjusted insured unemployment rate was 1.3% during the week ending March 25, unchanged from  the prior week. 

The advance unadjusted level of insured unemployment in state programs totaled 1,845,171, a decrease  of 32,139 from the preceding week. 

The total number of unadjusted continued weeks claimed for benefits in all programs for the week ending March 18 was 1,905,334,  a decrease of 1,183 from the previous week. 

There were 1,728,353 weekly claims filed for benefits in all programs in the  comparable week in 2022.

Employers Accelerated Job Cuts In March and First Quarter

U.S. based employers cut jobs for the third month in a row, according to a report released by Challenger, Gray & Christmas, Inc on Thursday. 

Employers announced 89,703 job cuts in March, 15% higher than 77,770 in February and soared 319% from 21,387 a year ago. 

The job cuts were higher from a year ago for the third month in a row. 

Employers announced 270,416 cuts in the first quarter, a 396% increase from the 55,696 cuts announced a year ago and the highest first quarter total since 2020 when 346,683 were announced. 

The sharp jump in job cuts in March and in the first quarter also comes after months of payroll expansions in 2021 and 2022 but businesses are now shifting gears and preparing for economic slowdown in the face of weakening consumer demands driven by rising interest rates and elevated inflation. 

Hopeful Investors See Signs of Rate Pause In Two Latest Jobs Reports

Stocks faced headwinds on the final trading day of the holiday-shortened week. 

Investors were cautious  and focus remained on labor markets as additional reports showed today gradual weakening trends in still tight labor market conditions. 

Initial jobless claims for the week ending on April 1 declined 18,000 to 228,000, the U.S. Department of Labor said in its weekly report Thursday. 

Jobless claims for the previous week were sharply revised higher to 248,000 from the first estimate of 196,000, reflecting a change in the methodology of adjusting for seasonality.    

U.S. based employers cut jobs for the third month in a row, according to a report released by Challenger, Gray & Christmas, Inc on Thursday. 

Employers announced 89,703 job cuts in March, 15% higher than 77,770 in February and soared 319% from 21,387 a year ago. 

The job cuts were higher from a year ago for the third month in a row. 

Employers announced 270,416 cuts in the first quarter, a 396% increase from the 55,696 cuts announced a year ago and the highest first quarter total since 2020 when 346,683 were announced. 

The sharp jump in job cuts in March and in the first quarter also comes after months of payroll expansions in 2021 and 2022 but businesses are now shifting gears and preparing for economic slowdown in the face of weakening consumer demands driven by rising interest rates and elevated inflation. 

Hopeful investors are looking for the Federal Reserve to interpret the latest signals from labor markers and pause rate hikes after the next policy meeting in early May. 

Indexes & Yields

The S&P 500 index increased 0..3% to 4,101.13  and the Nasdaq Composite advanced 0.7% to 12,084.23. 

The yield on 2-year Treasury notes inched lower to 3.76%, 10-year Treasury yield edged down to 3.27% and 30-year Treasury bonds to 3.54%.

Crude oil decreased 26 cents to $80.33 a barrel and natural gas fell 9 cents to $2.06 a thermal unit. 

Stock Movers 

FedEx Corp increased 1.5% to $233.49 after the company announced its restructuring plan and a change in executive compensation program. 

The parcel delivery company is looking to save $4 billion in costs by the fiscal year 2024 and realign its executive compensation packages that are more in line with shareholder interests. 

Bed Bath & Beyond Inc declined 7.4% to 31 cents  after the company proposed a reverse stock split plan so the struggling retailer can raise more equity capital. 

"We need to raise equity capital to have the necessary cash resources to fund operations and service obligations under our Credit Agreement,” the company said in a regulatory filing.

With Rising Risks of U.S. Economic Slowdown, Investors Sell Stocks

Benchmark indexes on Wall Street extended losses after slower increase in private payrolls and widening trade deficit shifted focus to economic slowdown. 

Private sector payroll growth slowed in March, a second jobs report in as many days, suggesting that the multiple interest rate hikes may be finally having an impact on tight labor market conditions. 

Treasury yields declined amid  the prospect of the Federal Reserve slowing its rate hike policy, however caution prevailed in trading and tech and energy stocks led the decliners. 

Investors also lowered the estimate for the first quarter economic growth after the international trade deficit widened in February. 

The first quarter GDP is now expected to expand at an annual rate of 1.7%, slower than 3.5% estimated less than ten days ago, according to the Atlanta Federal Reserve's GDPNow tracker.   

Investor sentiment has swung from inflation worries to economic slowdown amid weak jobs reports and widening trade deficit.  

The Federal Reserve is attempting to slow down the economic growth that is more sustainable in the long term while trying to cool the red hot inflation. 

But after nine rate hikes over the last thirteen months, inflation is still too high and well above the Fed's target rate of 2% and despite the weakening jobs market signals, labor market conditions are still too tight for policymakers. 

As the Fed struggles to cool inflation, investors are increasingly postponing the Fed's pivot to pause later in the year with the rising prospects of slower earnings growth in the second and third quarters of this year. 

U.S. Trade Deficit Expanded In February 

The U.S. international trade deficit expanded in February, the Bureau of Economic Analysis reported Wednesday. 

Exports in February decreased 2.7% from the previous month to $251.2 billion and imports fell 1.5% to $321.7 billion, resulting in a trade deficit rise of 2.7% to $70.5 billion. 

The deficit with China increased $3.2 billion to $25.2 billion in February, driven by $1.4 billion decrease in exports to $13.1 billion and $1.8 billion increase in imports to $38.2 billion.

The surplus with Hong Kong increased $1.0 billion to $2.5 billion in February, driven by $1.0 billion increase in exports to $2.8 billion and less than $0.1 billion increase in exports to $0.3 billion.

Private Sector Job Growth Slowed In March 

U.S. private sector job growth slowed in March as consumer demand ebbed and rising interest rates began to bite following nine rate hikes over the last fourteen months. 

Private sector added 145,000 net new jobs following upwardly revised 261,000 in February.  

Service sector added 75,000 jobs and goods producing industries added 70,000 jobs in the month. 

U.S. Indexes & Yields 

The S&P 500  index fell 2.68 points to 4,097.92 and the Nasdaq Composite index declined 0.6% to 12,061.24.

The yield on 2-year Treasury notes decreased to 3.71%, 10-year Treasury notes edged lower to 3.31% and 30-year Treasury bonds to 3.58%. 

Crude oil decreased 18 cents to $80.21 a barrel and natural gas futures rose 8 cents to $2.18 a thermal unit. 

U.S. Stock Movers 

Johnson & Johnson increased 3.7% to $164.03 after the pharmaceutical company settled a lawsuit alleging the company's talc products caused cancer. 

Johnson & Johnson agreed to pay $8.9 billion over the next 25 years. 

The company's subsidiary LTL Management LLC refiled its voluntary Chapter 11 bankruptcy protection to obtain reorganization plan to pay global claimants. 

 The company agreed to pay a present value of up to $8.9 billion to pay for all current and future claims, a substantial increase from the $2 billion committed to the initial bankruptcy filing in October 2021. 

FedEx Corp increased 2.8% to $235.25 after the parcel delivery company increased its annual dividend by 10% to 44 cents to $5.04 a share in fiscal 2024.  

The delivery company estimated savings of at least $4.0 billion in fiscal year 2025 because of the reorganization plan that will include consolidation of different divisions and refocusing executive compensation packages.  

Economic Slowdown Worries European Investors 

Stocks in the eurozone turned lower after investors turned cautious and focused on risks of economic slowdown. 

Investors reassessed global macroeconomic backdrop and worried that the U.S. economy may slowdown faster-than-previously estimated after the release of the latest jobs  data. 

Job openings in March declined to a two-year low of 9.9 million and the ratio of the advertised  jobs to workers fell to 1.7 to 1 from 2.0 to 1.0 in February. 

In addition, the eurozone composite index and service indexes were downwardly revised in the final estimate for March but both indexes are still at 10-month highs.   

Strong  economic activities in Germany and France also sent another signal to policymakers to continue with its aggressive rate hike plan. 

Higher interest rates with slowing global economic backdrop are likely to negatively impact stock market valuations. 

Germany's Factor Orders Advanced 3rd Month In a Row 

Factory orders in Germany rose for the third month in a row in February, the Federal Statistics Office reported Wednesday. 

Factory orders rose 4.8% from the previous month but declined 5.7% from a year ago in February but orders rose the most since June 2021. 

January orders were downwardly revised to 0.5% from the preliminary estimate of 0.9%. 

Factory orders rose 1.2% in February after excluding volatile large-scale orders, driven by strong growth in vehicle manufacturing. 

Orders for motor vehicle engines increased 3.7% and in mechanical engineering advanced 2.8%.

Domestic orders rose 5.6% from the previous month, foreign orders increased 4.2%. 

New orders from the euro area increased 8.9%, while orders from the rest of the world increased 1.4%.

France's Industrial Production Rebounded 

French industrial production rebounded in February, the statistical office INSEE reported Wednesday. 

Industrial production increased 1.2% on a monthly basis in February from the downwardly revised 1.4% in January. 

Output in mining and energy rebounded  0.3% from the decline of 1.3% in January and manufacturing recovered to 1.3% from the decline of 1.5% in the previous month. 

Construction sector expanded at a faster pace of 1.6% in February from 0.6% in January.  

On an annual basis, industrial production rebounded 1.3% from the decline of 1.7% in the previous month. 

Europe Indexes & Yields 

The DAX index decreased 0.5% to 15,520.17, the CAC-40 index declined 0.4% to 7,316.30 and the FTSE 100 index added 0.4% to 7,662.94. 

The yield on 10-year German Bunds increased to 2.28%, French bonds to 2.85%, the UK gilts to 3.50% and Italian bonds to 4.11%. 

The euro inched higher to $1.09, the British pound to $1.24 and the Swiss franc to 90.75 cents. 

Brent crude oil was nearly unchanged at $85.00 a barrel and the Dutch TTF natural gas fell €1.21 to €45.36 per MWh. 

Europe Movers 

UBS AG declined 1% and the company's management reiterated that the recent takeover of Credit Suisse is beneficial to the company. 

Sodexo SA soared 12.5% to €101.60 after the company announced its plans to spin off and list its Benefits & Reward Services unit in 2024. 

Lookers Plc 3.8% to 87.90 pence after the UK-based automotive retailer reported higher sales and after-tax  income in its fiscal year 2022. 

Centrica Plc increased 2.1% to  109.74 pence after the utility company launched its stock repurchase program.  

Hermes International SCA increased 1.1% to €1,914.80 and the French luxury products maker traded a new record high on the optimism of earnings in the March quarter. 

U.S. Trade Deficit Expanded In February

The U.S. international trade deficit expanded in February, the Bureau of Economic Analysis reported Wednesday. 

Exports in February decreased 2.7% from the previous month to $251.2 billion and imports fell 1.5% to $321.7 billion, resulting in a trade deficit rise of 2.7% to $70.5 billion. 

The deficit with China increased $3.2 billion to $25.2 billion in February, driven by $1.4 billion decrease in exports to $13.1 billion and $1.8 billion increase in imports to $38.2 billion.

The surplus with Hong Kong increased $1.0 billion to $2.5 billion in February, driven by $1.0 billion increase in exports to $2.8 billion and less than $0.1 billion increase in exports to $0.3 billion.

Exports of goods decreased $8.5 billion to $169.2 billion in February and Services increased $1.7 billion to $82.0 billion. 

Imports of goods decreased $5.8 billion to $262.2 billion in February and services increased $0.8 billion to $59.5 billion. 

U.S. recorded trade deficit of  $25.2 billion with China, $18.1 billion with the European Union, $12.0 billion with Mexico, $8.1 billion with Vietnam, $7.9 billion with Germany, $5.7 billion with Japan, $5.6 billion with Canada, $4.7 billion with Taiwan and $4.5 billion with South Korea. 

U.S. recorded trade surplus with South and Central America of $4.7 billion, Australia $1.5 billion and Brazil $0.9 billion.