- Barry Adams
- 14 Jun, 2023
- New York City
Stocks continued to advance ahead of the Federal Reserve's rate decision and comments about the state of the economy.
The S&P 500 index and the Nasdaq Composite index traded at new 13-month highs on the hopes that the central bank may leave rates unchanged after increasing ten times in a row since March 2012.
The latest read on producer price inflation followed the release of consumer inflation data on Tuesday which declined to a two-year low of 4.0% in May.
After multiple rate hikes consumer and wholesale inflation measures have cooled from as high as 9% and 11% respectively, inflation still remains significantly above the central bank's target rate of 2%.
Real rates are still not restrictive enough as suggested by elevated housing market, low treasury yields and broad price pressures.
Wholesale Inflation Declined In May
Producer prices for final demand declined 0.3% in May from the previous month, following a 0.2% rise in April, the U.S. Bureau of Labor Statistics reported Wednesday.
Goods prices declined 1.6%, the largest decline since July 2022 and services prices increased 0.2%.
Most of the May decline is attributable to the index for final demand energy, which dropped 6.8%. Sixty percent of the May decline in the index for final demand goods can be traced to a 13.8% drop in prices for gasoline.
Prices for final demand foods moved down 1.3%.
In contrast, the index for final demand goods less foods and energy increased 0.1%.
Service inflation increased 0.2% in May and over 40 percent of the increase in prices can be attributed to margins for automobiles and automobile parts retailing, which rose 4.2%.
On an annual basis, core inflation, which excludes food, energy and trade, eased to 2.8% in May from 3.3% in April and 6.8% a year ago.
U.S. Indexes & Yields
The S&P 500 index increased 0.3% to 4,379.74 and the Nasdaq Composite added 0.3% to 13,605.72.
The yield on 2-year Treasury notes increased to 4.64%, 10-year Treasury notes edged down to 3.69% and 30-year Treasury bonds rose 3.91%.
Crude oil increased $0.71 to $70.03 a barrel and natural gas prices increased 3 cents to $2.37 a thermal unit.
U.S. Stock Movers
Shell PLC increased 2.5% to $59.85 after the UK-based energy company said it plans to increase dividend and accelerate stock buybacks.
The company announced its plan to buy back at least $5 billion of its in the second half, 15% increase in dividend from the second quarter and shareholder distribution increased to 30% to 40% of cash flow from operations.
Logitech International SA plunged 11.9% to $56.26 after the company said its chief executive officer Bracken Darrell plans to leave the company.
Advanced Micro Devices, Inc jumped 2.2% to $127.09 and the company said on Tuesday it is ready to ship its latest chip for artificial intelligence.
Vodafone Group Plc increased 1.9% to $9.32 after the company and CK Hutchison owned Three UK agreed to merge their UK businesses.
After the merger, the UK will have only three mobile network operators - BT, Virgin Media O2 and Vodafone-Three UK.
Alphabet Inc Class A declined 0.9% to $122.78 after the European Union charged Google's parent for violating antitrust rules in adtech business.
- Bridgette Randall
- 14 Jun, 2023
- Frankfurt
The DAX index increased 0.6% to 16,319.97, the CAC-40 index increased 0.9% to 7,355.93 and the FTSE 100 index increased 0.6% to 7,637.82.
The yield on 10-year German Bunds inched higher to 2.45%, French bonds traded higher to 2.98%, the UK gilts edged up to 4.43% and Italian bonds increased to 4.08%.
Shell PLC increased 1.7% to 2,336.50 pence after the company said it plans to increase dividend and accelerate stock buybacks.
The company announced its plan to buyback at least $5 billion of its in the second half, 15% increase in dividend from the second quarter and shareholder distribution increased to 30% to 40% of cash flow from operations.
Puma SE increased 0.6% to €51.60 after the German footwear company announced a corporate reorganization.
Wacker Neuson SE soared 6% to €21.85 after the Germany-based construction equipment company set a target to increase its sales by 78% in 2030.
Entain Plc declined 8% to 1,212.0 pence after the company agreed to acquire Poland-based STS Holdings for £750 million.
Heidelberger Druckmaschinen AG declined 6.5% to €1.59 after the company forecasted cautious outlook for the current fiscal year.
Safestore Holdings plc decreased 1.5% to 917.0 pence after the company said its pre-tax profit in the first-half declined 64%.
Grifols SA Class A soared 8.3% to €11.99 after the Spanish pharmaceutical company announced its plan to sell its stake in Shanghai RAAS for $1.5 billion.
Logitech International SA plunged 10% to CHF 51.68 after the company said its chief executive officer Bracken Darrell plans to leave the company.
- Bridgette Randall
- 14 Jun, 2023
- Frankfurt
Stocks advanced in the eurozone but gains were muted ahead of decisions.
Benchmark indexes edged higher in London after crude oil and commodities prices rebounded and luxury stocks led gainers in Paris.
Eurozone industrial production reversed previous month's decline in April after capital goods orders rebounded.
British GDP expanded 0.2% from the previous month in April, the Office for National Statistics reported Wednesday.
The retail and wholesale trade lifted service sector activities by 0.3% in April after falling 0.5% in March.
On the other hand, production output declined 0.3% after expanding 0.7% in March and construction output declined 0.6% after advancing 0.2%.
Investors are awaiting rate decision from the Federal Reserve at 2:00 p.m. ET and from the European Central Bank Thursday.
Euro Area Industrial Production Rebounded In April
Eurozone industrial production increased 1.0% in April, reversing 3.8% decline in March, the Eurostat reported Wednesday.
On an annual basis, industrial production increased 0.2%.
On a monthly basis in April production of capital goods advanced 14.7% and energy 1.0%, while production of intermediate goods fell 1.0%, durable consumer goods 2.6% and non-durable consumer goods 3.0%
On an annual basis in April, production of capital goods rose 8.3% and nondurable consumer goods 0.6%, while production of durable consumer goods fell 4.6%, intermediate goods 6.2% and energy 7.4%.
Among member states, industrial production soared 21.5% in Ireland, rose 0.8% in France and flat in Germany while declined 1.8% in Spain and fell 1.9% in Italy.
Europe Indexes & Yields
The DAX index increased 0.6% to 16,319.97, the CAC-40 index increased 0.9% to 7,355.93 and the FTSE 100 index increased 0.6% to 7,637.82.
The yield on 10-year German Bunds inched higher to 2.45%, French bonds traded higher to 2.98%, the UK gilts edged up to 4.43% and Italian bonds increased to 4.08%.
The euro edged lower to $1.08, the British pound to $1.26 and the Swiss franc to 90.26 cents.
Brent crude increased $1.13 to $75.42 a barrel and the Dutch TTF natural gas increased €2.50 to €33.56 per MWh.
Europe Stock Movers
Shell PLC increased 1.7% to 2,336.50 pence after the company said it plans to increase dividend and accelerate stock buybacks.
Puma SE increased 0.6% to €51.60 after the German footwear company announced a corporate reorganization.
Wacker Neuson SE soared 6% to €21.85 after the Germany-based construction equipment company set a target to increase its sales by 78% in 2030.
Entain Plc declined 8% to 1,212.0 pence after the company agreed to acquire Poland-based STS Holdings for £750 million.
Heidelberger Druckmaschinen AG declined 6.5% to €1.59 after the company forecasted cautious outlook for the current fiscal year.
Safestore Holdings plc decreased 1.5% to 917.0 pence after the company said its pre-tax profit in the first-half declined 64%.
Grifols SA Class A soared 8.3% to €11.99 after the Spanish pharmaceutical company announced its plan to sell its stake in Shanghai RAAS for $1.5 billion.
Logitech International SA plunged 10% to CHF 51.68 after the company said its chief executive officer Bracken Darrell plans to leave the company.
- Barry Adams
- 13 Jun, 2023
- New York City
Stocks rallied, crude oil rebounded and Treasury yields inched higher after consumer price inflation eased.
Consumer price inflation in May decreased to 4.0% after energy prices weakened and food price inflation slowed but shelter inflation drove the inflation higher.
Attention now shifted to the release of wholesale price inflation before the market opening tomorrow and the Fed's rate decision early afternoon tomorrow.
Most market participants are expecting the Federal Reserve to stay on the sidelines after the latest inflation report showed progress.
But the Federal Reserve may focus on core inflation, which has stayed stubbornly high after ten rate hikes in a row since March 2022, and increase rate at the end of the next policy meeting Wednesday.
Crude oil rebounded after declining for four days in a row after the People's Bank of China cut its short term lending rate by 10 basis points to support weak economic recovery.
Overall CPI Eased In May, Core Inflation Stayed Elevated
Consumer price index for May eased to 4.0% in May on a seasonally adjusted basis, the U.S. Bureau of Labor Statistics reported Tuesday.
The inflation rate dropped to the slowest pace since March 2021, but prices are still rising at a faster pace than preferred by the Federal Reserve.
On a monthly basis prices rose 0.1% in May, slower than 0.4% rise in April.
Core inflation, which excludes food and energy, slowed to 5.3% in May from 5.5% in April, the slowest annual pace since November 2021.
The shelter index increased 8.0% over the last year, accounting for over 60% of the total increase in all items less food and energy.
U.S. Indexes & Yields
The S&P 500 index increased 0.7% to 4,369.01 and the Nasdaq Composite added 0.8% to 13,573.32.
The yield on 2-year Treasury notes increased to 4.52%, 10-year Treasury notes edged down to 3.72% and 30-year Treasury bonds eased 3.88%.
Crude oil increased $1.94 to $69.05 a barrel and natural gas prices increased 8 cents to $2.34 a thermal unit.
U.S. Stock Movers
Oracle Corporation jumped 4.8% to $122 after the database developer reported better-than-expected fiscal fourth quarter results.
GameStop Corp surged 6% to $25.80 after Chairman Ryan Cohen disclosed in a regulatory filing the purchase of 443,842 shares of the video game developer.
The purchase amounts to $10.8 million based on Monday's closing price.
Exxon Mobil and Chevron Corporation edged up 1.4% after crude oil prices rebounded.
Home builders were in focus after inflation dropped in May raising hopes that the Federal Reserve will pause its rate hike cycle at the end of a two-day meeting on Wednesday.
Lennar Corp, Toll Brothers Inc, PulteGroup and NVR Inc advanced between 0.6% and 1.2%.
European Markets Rebounded
European markets traded in a tight range after German inflation eased and China unexpectedly lowered interest rates.
Benchmark indexes traded sideways after German inflation declined in May but core inflation stayed above 5% for the sixth month in a row, highlighting widespread price pressures in the economy.
Moreover, China unexpectedly lowered its short term lending rate to revive economic growth.
The People's Bank of China lowered its seven day reverse repo rate by 10 basis points to 1.9% from 2.0%.
The unusual move to lower short term rate before lowering the long term rate, highlights the sense of urgency felt by the policymakers in shoring the economy.
The central bank is likely to lower its benchmark loan prime lending rate used for mortgage and consumer lending by the same amount next Tuesday.
German Inflation Eased, Core Inflation Stayed Above 5%
German inflation eased to 6.1% from a year ago in May, the Federal Statistics Office said Tuesday.
Inflation slowed from 7.2% in April and price increase was the weakest since March 2022 when prices rose 5.9%.
Inflation when measured on the EU-harmonized basis decreased to 6.3% from 7.6% in April.
Energy price inflation slowed to 2.6% in May from 6.8% in April but food price inflation remained elevated at 14.9% despite easing from 17.2% in April.
Food prices remained the main driver of inflation among all product groups. Excluding energy prices, inflation rose 6.5% and excluding food and energy, inflation was 5.4%.
Core inflation, which excludes food and energy, has been above 5% since December 2022 and has accelerated every month since then reaching high of 5.8% in March and April before trending lower in May.
On a monthly basis, consumer price inflation declined 0.1% in May, reversing 0.4% increase in April.
Europe Indexes & Yields
The DAX index increased 0.8% to 16,230.68, the CAC-40 index increased 0.6% to 7,289.83 and the FTSE 100 index traded down 0.3% to 7,594.80.
The yield on 10-year German Bunds inched higher to 2.37%, French bonds traded higher to 2.91%, the UK gilts edged up to 4.40% and Italian bonds decreased to 4.05%.
The euro edged lower to $1.079, the British pound to $1.256 and the Swiss franc to 90.62 cents.
Brent crude increased $2.16 to $73.98 a barrel and the Dutch TTF natural gas decreased €5.06 to €36.05 per MWh.
Europe Stock Movers
Luxury stocks in Paris advanced after China lowered its short term lending rate to shore up weak economic recovery.
LVMH increased 0.2% to €836.50 and Hermes International SCA edged up 0.1% to €1,975.60.
Mining and resource companies traded higher following a rebound in base metal and crude oil prices.
Antofagasta, Anglo American and Glencore jumped between 2% and 4%.
Centrica Plc fell 0.8% to 117.05 pence after the company posted strong results in the first five months of 2023 and reiterated its annual outlook near the top end of the market expectations.
Durr Group increased 4% after the plant engineering company said it has agreed to acquire BBS Automation Group.
- Scott Peters
- 13 Jun, 2023
- New York City
The S&P 500 index increased 0.5% to 4,321.57 and the Nasdaq Composite added 1.1% to 13,401.41.
The yield on 2-year Treasury notes increased to 4.52%, 10-year Treasury notes edged down to 3.72% and 30-year Treasury bonds eased 3.88%.
Oracle Corporation jumped 4.8% to $122 after the database developer reported better-than-expected fiscal fourth quarter results.
Revenue in the fiscal fourth quarter ending in May increased 17% to $13.8billion and net income increased to $3.3 billion from $3.2billion and diluted earnings per share rose to $1.19 from $1.16 a year ago.
Cloud segment revenue soared 54% to $4.4 billion and cloud infrastructure jumped 76% to $1.6 billion.
The board of directors declared a quarterly dividend of 40 cents to shareholders on record July 12 payable on July26.
GameStop Corp surged 6% to $25.80 after Chairman Ryan Cohen disclosed in a regulatory filing the purchase of 443,842 shares of the video game developer.
The purchase amounts to $10.8 million based on Monday's closing price.
Exxon Mobil, Valero Energy, Chevron Corporation, Marathon Petroleum Corporation, EQT Corp and EOG Resources increased between 0.5% and 2% after crude oil prices rebounded.
Home builders were in focus after inflation dropped in May raising hopes that the Federal Reserve will pause its rate hike cycle at the end of a two-day meeting on Wednesday.
Lennar Corp, Toll Brothers Inc, PulteGroup and NVR Inc advanced between 0.6% and 1.2%.
Zions Bancorporation decreased 2.5% to $29.58 after the company said its net interest outlook is "decreasing" in a presentation posted on the company's website on Monday.
A shift in funding from deposits to short-term borrowings "negatively impacted" the margin in first quarter 2023 to 3.33% from3.53% a year ago and trending towards 2.85% as of June 12.
At the end of first quarter 2023, average total loans increased to $56.2 billion from $50.9 billion and total yield jumped to 5.3% from 3.52% from a year ago.
Average total deposits declined from $81.6 billion in the first quarter to $70.2 billion and cost of total deposits increased to 0.47% from 0.03% a year ago.
- Barry Adams
- 13 Jun, 2023
- New York City
Stocks traded higher after the inflation index in May declined as expected and crude oil rebounded.
The S&P 500 index advanced 0.4% and the Nasdaq Composite index jumped 0.6% after tech stocks led market gainers.
Consumer price inflation in May eased to 4.0% after energy prices weakened and food price inflation slowed but shelter inflation drove the inflation higher.
Most market participants are expecting the Federal Reserve to stay on the sidelines after the latest inflation report showed progress.
But the Federal Reserve may focus on core inflation, which has stayed stubbornly high after ten rate hikes in a row since March 2022, and increase rate at the end of the next policy meeting Wednesday.
Crude oil rebounded after declining for four days in a row after the People's Bank of China cut its short term lending rate by 10 basis points to support weak economic recovery.
Overall CPI Eased In May, Core Inflation Stayed Elevated
Consumer price index for May eased to 4.0% in May on a seasonally adjusted basis, the U.S. Bureau of Labor Statistics reported Tuesday.
The inflation rate dropped to the slowest pace since March 2021, but prices are still rising at a faster pace than preferred by the Federal Reserve.
On a monthly basis prices rose 0.1% in May, slower than 0.4% rise in April.
Core inflation, which excludes food and energy, slowed to 5.3% in May from 5.5% in April, the slowest annual pace since November 2021.
The shelter index increased 8.0% over the last year, accounting for over 60% of the total increase in all items less food and energy.
U.S. Indexes & Yields
The S&P 500 index increased 0.5% to 4,321.57 and the Nasdaq Composite added 1.1% to 13,401.41.
The yield on 2-year Treasury notes increased to 4.52%, 10-year Treasury notes edged down to 3.72% and 30-year Treasury bonds eased 3.88%.
Crude oil increased $1.94 to $69.08 a barrel and natural gas prices increased 8 cents to $2.34 a thermal unit.
U.S. Stock Mover
Oracle Corporation jumped 4.8% to $122 after the database developer reported better-than-expected fiscal fourth quarter results.
GameStop Corp surged 6% to $25.80 after Chairman Ryan Cohen disclosed in a regulatory filing the purchase of 443,842 shares of the video game developer.
The purchase amounts to $10.8 million based on Monday's closing price.
Exxon Mobil and Chevron Corporation edged up 1.4% after crude oil prices rebounded.
Home builders were in focus after inflation dropped in May raising hopes that the Federal Reserve will pause its rate hike cycle at the end of a two-day meeting on Wednesday.
Lennar Corp, Toll Brothers Inc, PulteGroup and NVR Inc advanced between 0.6% and 1.2%.
- Brian Turner
- 13 Jun, 2023
- New York City
Consumer price index for May eased to 4.0% in May on a seasonally adjusted basis, the U.S. Bureau of Labor Statistics reported Tuesday.
The inflation rate dropped to the slowest pace since March 2021, but prices are still rising at a faster pace than preferred by the Federal Reserve.
On a monthly basis prices rose 0.1% in May, slower than 0.4% rise in April.
Core inflation, which excludes food and energy, slowed to 5.3% in May from 5.5% in April, the slowest annual pace since November 2021.
The shelter index increased 8.0% over the last year, accounting for over 60% of the total increase in all items less food and energy.
Other indexes with notable increases over the last year include motor vehicle insurance up 17.1%, recreation 4.5%, household furnishings and operations 4.2%, and new vehicles 4.7%.
On a monthly basis, the index for all items less food and energy or core inflation, rose 0.4% in May, as it did in April and March.
The shelter index increased 0.6% over the month after rising 0.4% in April and the index for rent rose 0.5% in May, as did the index for owners' equivalent rent.
On a monthly basis, food prices rose 0.2%, energy prices declined 3.6% and gasoline prices plunged 5.6%.
New car prices decreased 0.1% but used cars and trucks prices rose 4.4%.
Elevated home and rental prices were main drivers of inflation and shelter cost increased 0.6% from the previous month in May.
- Bridgette Randall
- 13 Jun, 2023
- Frankfurt
The DAX index increased 0.2% to 16,126, the CAC-40 index increased 0.03% to 7,252.63 and the FTSE 100 index traded down 0.1% to 7,560.76.
The yield on 10-year German Bunds inched higher to 2.37%, French bonds traded higher to 2.91%, the UK gilts edged up to 4.40% and Italian bonds decreased to 4.05%.
Luxury stocks in Paris advanced after China lowered its short term lending rate to shore up weak economic recovery.
LVMH increased 0.2% to €836.50 and Hermes International SCA edged up 0.1% to €1,975.60.
Mining and resource companies traded higher following a rebound in base metal and crude oil prices.
Antofagasta, Anglo American and Glencore jumped between 2% and 4%.
Centrica Plc fell 0.8% to 117.05 pence after the company posted strong results in the first five months of 2023 and reiterated its annual outlook near the top end of the market expectations.
Durr Group increased 0.9% to €5.55 after the plant engineering company said it has agreed to acquire BBS Automation Group.
The company estimated the enterprise value of BBS Automation between €440 million and €480 million.
After the takeover of the company, automation division revenue is estimated to more than double around €500 million in 2024.
- Bridgette Randall
- 13 Jun, 2023
- Frankfurt
European markets traded in a tight range after German inflation eased and China unexpectedly lowered interest rates.
Benchmark indexes traded sideways after German inflation declined in May but core inflation stayed above 5% for the sixth month in a row, highlighting widespread price pressures in the economy.
Moreover, China unexpectedly lowered its short term lending rate to revive economic growth.
The People's Bank of China lowered its seven day reverse repo rate by 10 basis points to 1.9% from 2.0%.
The unusual move to lower short term rate before lowering the long term rate, highlights the sense of urgency felt by the policymakers in shoring the economy.
The central bank is likely to lower its benchmark loan prime lending rate used for mortgage and consumer lending by the same amount next Tuesday.
German Inflation Eased, Core Inflation Stayed Above 5%
German inflation eased to 6.1% from a year ago in May, the Federal Statistics Office said Tuesday.
Inflation slowed from 7.2% in April and price increase was the weakest since March 2022 when prices rose 5.9%.
Inflation when measured on the EU-harmonized basis decreased to 6.3% from 7.6% in April.
Energy price inflation slowed to 2.6% in May from 6.8% in April but food price inflation remained elevated at 14.9% despite easing from 17.2% in April.
Food prices remained the main driver of inflation among all product groups. Excluding energy prices, inflation rose 6.5% and excluding food and energy, inflation was 5.4%.
Core inflation, which excludes food and energy, has been above 5% since December 2022 and has accelerated every month since then reaching high of 5.8% in March and April before trending lower in May.
On a monthly basis, consumer price inflation declined 0.1% in May, reversing 0.4% increase in April.
Europe Indexes & Yields
The DAX index increased 0.2% to 16,126, the CAC-40 index increased 0.03% to 7,252.63 and the FTSE 100 index traded down 0.1% to 7,560.76.
The yield on 10-year German Bunds inched higher to 2.37%, French bonds traded higher to 2.91%, the UK gilts edged up to 4.40% and Italian bonds decreased to 4.05%.
The euro edged lower to $1.079, the British pound to $1.256 and the Swiss franc to 90.62 cents.
Brent crude increased $1.46 to $73.32 a barrel and the Dutch TTF natural gas decreased €1.86 to €29.15 per MWh.
Europe Stock Movers
Luxury stocks in Paris advanced after China lowered its short term lending rate to shore up weak economic recovery.
LVMH increased 0.2% to €836.50 and Hermes International SCA edged up 0.1% to €1,975.60.
Mining and resource companies traded higher following a rebound in base metal and crude oil prices.
Antofagasta, Anglo American and Glencore jumped between 2% and 4%.
Centrica Plc fell 0.8% to 117.05 pence after the company posted strong results in the first five months of 2023 and reiterated its annual outlook near the top end of the market expectations.
Durr Group increased 4% after the plant engineering company said it has agreed to acquire BBS Automation Group.
- Barry Adams
- 12 Jun, 2023
- New York City
Stocks traded higher as rate-pause expectations drove trading sentiment.
Market indexes advanced and investors looked ahead to the release of the consumer inflation index on Tuesday and producer price inflation on Wednesday.
Investors are hoping that consumer inflation in May will slow to 4.0% from 4.95 in April, reflecting the decline in energy prices and weaker food inflation.
But the market may be surprised if service inflation and higher shelter cost may keep overall inflation elevated. investors will also closely monitor core inflation, which excludes food and energy prices.
The Federal Reserve is also scheduled to announce its rate decision on Wednesday and investors are divided about the rate path.
Some investors are hoping that the Fed may pause rate hikes at June and July meetings and acknowledge the decline in inflation, while others are looking for the central bank to lift rates higher because inflation is still significantly above the 2% target.
Despite ten rate hikes over the last sixteen months, stubborn inflation is well anchored and has spread from goods to services.
The S&P 500 index crossed 4,300 for the first time since August 2022 and gained for the fourth week in a row.
The index is likely to advance further if the Fed announces pause in rate hike on Wednesday.
Despite recent gains in the benchmark index, market rally is driven by few large cap tech companies and caught many investors by surprise amid looming economic slowdown, elevated inflation and corporate earnings recession.
Japan's Wholesale Prices Dropped to 2-year Low
Japan's wholesale prices rose 5.1% in May, slower than 5.8% in April, the Bank of Japan reported Monday.
Producer Price index rose at a slower pace for the fifth month in a row and at the slowest pace since July 2021.
On a monthly basis the producer price index declined 0.7% in May and swung to a decline for the first time since February.
U.S. Indexes & Yields
The S&P 500 index increased 0.5% to 4,321.57 and the Nasdaq Composite added 1.1% to 13,401.41.
The yield on 2-year Treasury notes increased to 4.55%, 10-year Treasury notes edged down to 3.77% and 30-year Treasury bonds eased 3.92%.
Crude oil decreased $2.75 to $67.41 a barrel and natural gas prices decreased 2 cent to $2.23 a thermal unit.
U.S. Stock Movers
Nasdaq Inc declined 8.2% to $53.13 after the exchange operator agreed to acquire financial software developer Adenza from Thoma Bravo for $10.5 billion.
The company plans to pay $5.75 billion in cash and offer 85.6 million Nasdaq shares or about 14.5% of its outstanding shares.
Illumina, Inc increased 2.9% to $206.50 after the company said chief executive Francis deSouza resigned following pressure from activist investor Carl Icahn.
JP Morgan Chase & Company declined 0.2% to $140.75 after the New York-based bank said it has reached an agreement in connection with crimes of sexual predator Jeffrey Epstein.
"The parties in Jane Doe 1 v. JPMorgan Chase Bank, N.A. have informed the Court that they have reached an agreement in principle to settle the putative class action lawsuit related to Jeffrey Epstein’s crimes, which is subject to court approval," the bank announced in a news release on Monday.
The settlement does not include ongoing litigation between the U.S. Virgin Islands and the bank and JPMorgan Chase’s claims against Jes Staley, former bank executive and friends with Jeff Epstein.
In Cautious Trading European Markets Advanced
European markets traded higher in cautious trading ahead of rate decisions this week.
Major averages in London, Paris and Frankfurt advanced and bond yields edged slightly lower.
Investors are anticipating the European Central Bank to lift its policy rate by 25 basis points but market participants appear to be divided on the future rate path in the U.S.
The U.S. Federal Reserve is expected to announce its rate decision on Wednesday, the European Central Bank of Thursday and the Bank of Japan on Friday.
Resource and energy stocks traded lower after crude oil prices eased for the third day in a row on demand growth worries. Natural gas prices declined after traders took profit following a sharp rally in the previous week.
In the absence of economic news, investors debated recent economic data. The economy in the eurozone entered a technical recession after the first quarter growth was revised to a contraction of 0.1%, matching the performance in the previous quarter.
China's producer prices fell for the eighth month in a row and dropped at the sharpest pace in seven years in May, highlighting uneven and weak economic rebound and weak consumer demand.
Europe Indexes & Yields
The DAX index increased 0.9% to 16,087.86, the CAC-40 index increased 0.5% to 7,250.35 and the FTSE 100 index traded up 0.1% to 7,570.69.
The yield on 10-year German Bunds inched lower to 2.37%, French bonds traded lower to 2.90%, the UK gilts edged up to 4.34% and Italian bonds decreased to 4.06%.
The euro edged lower to $1.078, the British pound to $1.258 and the. Swiss franc to 90.36 cents.
Brent crude decreased $2.45 to $72.31 a barrel and the Dutch TTF natural gas decreased €1.01 to €31.04 per MWh.
Natural gas prices eased 8% after last week's rally of 35% and investors took profit despite falling supplies and weak demand in the region. U.S. natural gas supplies are diverted to the Asian markets because of growing demand for cooling to combat elevated temperatures.
Turkstream pipeline which transports natural gas from Russia to Turkey has been shut down for maintenance work.
Norway's Equinor delayed the restart of its Hammerfest LNG plant to June 14 because of technical difficulties.
Despite the restricted natural gas supply, storage facilities in the European Union are 70.4% full and the region's government is looking to rebuild its storage to 90% by November 1.
Europe Stock Movers
UBS Group AG increased 0.5% to CHF 18.29 after the Swiss bank said it has completed the purchase of Credit Suisse Group AG.
Novartis Group AG increased 1% to CHF 90.99 after the Swiss pharmaceutical company agreed to acquire Seattle-based biotech company Chinook Therapeutics for up to $3.5 billion.
Telecom Italia SpA declined 1.3% to €0.25 after the company received two revised offers from existing bidders for its NetCo unit.
Tullow Oil Plc declined 1.5% to 25.33 pence after the UK-based energy explorer said it is open to all possibilities for its oil field in Ivory Coast.
SES SA declined 15.60% to €4.71 after the Paris-based satellite company said its chief executive Steve Collar will leave the company at the end of June.
Frasers Group increased 0.4% to 687.50 pence after UK-based retailer said it has acquired 18.9% stake in the online electrical retailer AO World Plc for £75 million.
- Scott Peters
- 12 Jun, 2023
- New York City
The S&P 500 index increased 0.1% to 4,298.17 and the Nasdaq Composite added 0.2% to 13,259.51.
The yield on 2-year Treasury notes increased to 4.61%, 10-year Treasury notes edged down to 3.74% and 30-year Treasury bonds eased 3.88%.
Crude oil decreased $1.59 to $68.57 a barrel and natural gas prices decreased 2 cent to $2.23 a thermal unit.
Nasdaq Inc declined 8.2% to $53.13 after the exchange operator agreed to acquire financial software developer Adenza from Thoma Bravo for $10.5 billion.
The company plans to pay $5.75 billion in cash and offer 85.6 million Nasdaq shares or about 14.5% of its outstanding shares.
Illumina, Inc increased 2.9% to $206.50 after the company said chief executive Francis deSouza resigned following pressure from activist investor Carl Icahn.
Oracle Corporation increased 4.7% to $115.04 ahead of the database developer's earnings results on the optimism of cloud computing segment revenue growth.
JP Morgan Chase & Company declined 0.2% to $140.75 after the New York-based bank said it has reached an agreement in connection with crimes of sexual predator Jeffrey Epstein.
"The parties in Jane Doe 1 v. JPMorgan Chase Bank, N.A. have informed the Court that they have reached an agreement in principle to settle the putative class action lawsuit related to Jeffrey Epstein’s crimes, which is subject to court approval," the bank announced in a news release on Monday.
The settlement does not include ongoing litigation between the U.S. Virgin Islands and the bank and JPMorgan Chase’s claims against Jes Staley, former bank executive and friends with Jeff Epstein.
- Barry Adams
- 12 Jun, 2023
- New York City
Stocks traded higher as rate-pause expectations drove trading sentiment.
Market indexes advanced and investors looked ahead to the release of consumer inflation index on Tuesday and producer price inflation on Wednesday.
The Federal Reserve is also scheduled to announce its rate decision on Wednesday and investors are divided about the rate path.
Some investors are hoping that the Fed may pause rate hike at June and July meetings and acknowledge the decline in inflation, while others are looking for the central bank to lift rates higher because inflation is still significantly above 2% target.
The S&P 500 index crossed 4,300 for the first time since August 2022 and gained for the fourth week in a row.
The index is likely to advance further if the Fed announces to pause rate hike on Wednesday.
Despite recent gains in the benchmark index, market rally is driven by few large cap tech companies and caught many investors by surprise amid looming economic slowdown, elevated inflation and corporate earnings recession.
Japan's Wholesale Prices Dropped to 2-year Low
Japan's wholesale prices rose 5.1% in May, slower than 5.8% in April, the Bank of Japan reported Monday.
Producer Price index rose at a slower pace for the fifth month in a row and at the slowest pace since July 2021.
On a monthly basis the producer price index declined 0.7% in May and swung to a decline for the first time since February.
U.S. Indexes & Yields
The S&P 500 index increased 0.1% to 4,298.17 and the Nasdaq Composite added 0.2% to 13,259.51.
The yield on 2-year Treasury notes increased to 4.61%, 10-year Treasury notes edged down to 3.74% and 30-year Treasury bonds eased 3.88%.
Crude oil decreased $1.59 to $68.57 a barrel and natural gas prices decreased 2 cent to $2.23 a thermal unit.
U.S. Stock Movers
Nasdaq Inc declined 8.2% to $53.13 after the exchange operator agreed to acquire financial software developer Adenza from Thoma Bravo for $10.5 billion.
The company plans to pay $5.75 billion in cash and offer 85.6 million Nasdaq shares or about 14.5% of its outstanding shares.
Illumina, Inc increased 2.9% to $206.50 after the company said chief executive Francis deSouza resigned following pressure from activist investor Carl Icahn.
- Bridgette Randall
- 12 Jun, 2023
- Frankfurt
The DAX index increased 0.7% to 16,058.96, the CAC-40 index increased 0.6% to 7,257.83 and the FTSE 100 index traded up 0.1% to 7,568.16.
The yield on 10-year German Bunds inched lower to 2.35%, French bonds traded lower to 2.89%, the UK gilts edged up to 4.26% and Italian bonds decreased to 4.07%.
UBS Group AG increased 0.5% to CHF 18.29 after the Swiss bank said it has completed the purchase of Credit Suisse Group AG.
Novartis Group AG increased 1% to CHF 90.99 after the Swiss pharmaceutical company agreed to acquire Seattle-based biotech company Chinook Therapeutics for up to $3.5 billion.
Telecom Italia SpA declined 1.3% to €0.25 after the company received two revised offers from existing bidders for its NetCo unit.
Tullow Oil Plc declined 1.5% to 25.33 pence after the UK-based energy explorer said it is open to all possibilities for its oil field in Ivory Coast.
SES SA declined 15.60% to €4.71 after the Paris-based satellite company said its chief executive Steve Collar will leave the company at the end of June.
Frasers Group increased 0.4% to 687.50 pence after UK-based retailer said it has acquired 18.9% stake in the online electrical retailer AO World Plc for £75 million.
- Bridgette Randall
- 12 Jun, 2023
- Frankfurt
European markets traded higher in cautious trading ahead of rate decisions this week.
Major averages in London, Paris and Frankfurt advanced and bond yields edged slightly lower.
Investors are anticipating the European Central Bank to lift its policy rate by 25 basis points but market participants appear to be divided on the future rate path in the U.S.
The U.S. Federal Reserve is expected to announce its rate decision on Wednesday, the European Central Bank of Thursday and the Bank of Japan on Friday.
Resource and energy stocks traded lower after crude oil prices eased for the third day in a row on demand growth worries. Natural gas prices declined after traders took profit following a sharp rally in the previous week.
In the absence of economic news, investors debated recent economic data. The economy in the eurozone entered a technical recession after the first quarter growth was revised to a contraction of 0.1%, matching the performance in the previous quarter.
China's producer prices fell for the eighth month in a row and dropped at the sharpest pace in seven years in May, highlighting uneven and weak economic rebound and weak consumer demand.
Europe Indexes & Yields
The DAX index increased 0.7% to 16,058.96, the CAC-40 index increased 0.6% to 7,257.83 and the FTSE 100 index traded up 0.1% to 7,568.16.
The yield on 10-year German Bunds inched lower to 2.35%, French bonds traded lower to 2.89%, the UK gilts edged up to 4.26% and Italian bonds decreased to 4.07%.
The euro edged lower to $1.078, the British pound to $1.258 and the. Swiss franc to 90.36 cents.
Brent crude decreased $1.39 to $73.39 a barrel and the Dutch TTF natural gas decreased €2.66 to €29.39 per MWh.
Natural gas prices eased 8% after last week's rally of 35% and investors took profit despite falling supplies and weak demand in the region. U.S. natural gas supplies are diverted to the Asian markets because of growing demand for cooling to combat elevated temperatures.
Turkstream pipeline which transports natural gas from Russia to Turkey has been shut down for maintenance work.
Norway's Equinor delayed the restart of its Hammerfest LNG plant to June 14 because of technical difficulties.
Despite the restricted natural gas supply, storage facilities in the European Union are 70.4% full and the region's government is looking to rebuild its storage to 90% by November 1.
Europe Stock Movers
UBS Group AG increased 0.5% to CHF 18.29 after the Swiss bank said it has completed the purchase of Credit Suisse Group AG.
Novartis Group AG increased 1% to CHF 90.99 after the Swiss pharmaceutical company agreed to acquire Seattle-based biotech company Chinook Therapeutics for up to $3.5 billion.
Telecom Italia SpA declined 1.3% to €0.25 after the company received two revised offers from existing bidders for its NetCo unit.
Tullow Oil Plc declined 1.5% to 25.33 pence after the UK-based energy explorer said it is open to all possibilities for its oil field in Ivory Coast.
SES SA declined 15.60% to €4.71 after the Paris-based satellite company said its chief executive Steve Collar will leave the company at the end of June.
Frasers Group increased 0.4% to 687.50 pence after UK-based retailer said it has acquired 18.9% stake in the online electrical retailer AO World Plc for £75 million.