- Brian Turner
- 06 Apr, 2023
- New York City
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.
- Barry Adams
- 06 Apr, 2023
- New York City
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.
- Barry Adams
- 05 Apr, 2023
- New York City
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.
- Brian Turner
- 05 Apr, 2023
- New York City
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.
- Brian Turner
- 05 Apr, 2023
- New York City
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.
The monthly national employment report released by ADP showed that the private sector hiring trended lower after a three-month plateau.
"Employers are pulling back from a year of strong hiring and pay growth, after a three-month plateau, is inching down," Nela Richardson Chief Economist, ADP.
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.
Payrolls expanded by 47,000 in natural resource and mining, 53,000 in construction but declined 30,000 in manufacturing.
In the services sector, leisure and hospitality added 98,000 and trade, transportation and utilities expanded 56,000 but financial activities trimmed 51,000 and professional services lowered 46,000.
- Scott Peters
- 05 Apr, 2023
- New York City
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.
Western Alliance Bancorporation dropped 16.5% to $27.83 after the regional bank said in its quarterly update the share of insured deposits increased to 68% of total deposits by the end of March.
However, the bank did not specify its total deposit which was $53.6 billion with $29.5 billion uninsured deposits at the end of December.
"As of quarter-end, the bank had no borrowings outstanding from the Federal Reserve’s discount window after balance sheet repositioning.
Western Alliance expects its CET1 ratio to be materially consistent with year-end 2022," the bank said in the statement released Thursday.
Citizens Financial Group declined 2.2% to $28.54 following another down day in regional bank stocks.
Cautious investors continued to bid up stocks of food processors.
Hershey Co increased 0.5% to $259.52 and Mondelez International Inc advanced 1.3% to $71.44.
Hershey Co traded at a 52-year high and Mondelez traded at a record high since its separation from Kraft in October 2012.
World Wrestling Entertainment, Inc increased 1.04% to $98.24 after investors backed its plan to merge with UFC announced this week.
- Barry Adams
- 05 Apr, 2023
- New York City
Benchmark indexes on Wall Street struggled to get traction after slower increase in private payrolls 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 the tight labor market conditions.
Treasury yields declined amid the prospect of the Federal Reserve slowing its rate hike policy.
Caution prevailed in trading and tech and energy stocks led the decliners.
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.
- Bridgette Randall
- 05 Apr, 2023
- Frankfurt
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.
Barry Callebaut AG increased 0.2% to Sfr1,946.0 after the world's largest chocolate maker reported weaker-than-anticipated sales results in the first-half of the fiscal year 2023.
First-half sales increased 7.9% to Sfr 4.2 billion and net income increased 10.5% to Sfr 234.3 million.
Sales volume declined 2.9% to 1.13 tons in the first-half ending in February.
The company guided volume growth to be stable in the full-year fiscal 2023.
- Bridgette Randall
- 05 Apr, 2023
- Frankfurt
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 0.4% to 15,545.89, the CAC-40 index declined 0.2% to 7,329.11 and the FTSE 100 index added 0.4% to 7,668.50.
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 $84.70 a barrel and the Dutch TTF natural gas inched up 25 cents to €46.82 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.
- Barry Adams
- 04 Apr, 2023
- New York City
With changing narrative came the change in direction of stock prices.
Market indexes traded lower after economic slowdown worries resurfaced.
The number of U.S. job openings fell by 632,000 to 9.9 million in February, the lowest since May 2021, the U.S. Bureau of Labor Statistics reported Tuesday.
The decline in job openings lowered the available jobs to workers ratio to 1.7 to 1 from 2 to 1.
The Federal Reserve has been looking to cool the jobs market and after nine rate hikes finally the red hot employment market may be beginning to soften.
Treasury yields turned lower after the release of jobs data and higher oil prices may convince policymakers to slow or even pause rate hikes.
investors are worried that the regional bank crisis may not be over and higher rates may force small and mid-sized banks to focus on their balance sheets rather than increase lending to customers.
Next week, first quarter earnings calls from banks may provide answers if banks are curtailing lending and rebuilding capital to counter rising unrealized losses in treasury securities in the held-to-maturity account.
The Federal Reserve is scheduled to meet in less than four weeks and many bond investors are looking for the central bank to raise interest rates by 25 basis points and then pause for a while.
The banking system stress and the surprise production cut from eight oil producing nations are going to add another layer of complexity for the policymakers in deciding the future trajectory of monetary policy.
Indexes & Yields
The S&P 500 index decreased 0.6% to 4,100.61 and the Nasdaq Composite index futures eased 0.5% to 12,126.33.
The yield on 2-year Treasury notes decreased a fraction to 3.89%, 10-year Treasury notes inched up to 3.34% and 30-year Treasury bonds edged up to 3.60%.
Crude oil decreased 6 cents to $80.35 a barrel and natural gas edged down 1 cent to $2.09 a thermal unit.
U.S. Stock Movers
Virgin Orbit Holdings Inc declined 18% to 16 cents after the rocket launch company filed for Chapter 11 bankruptcy protection in the U.S.
The company sought bankruptcy protection in the district of Delaware after it failed to secure emergency funding and is looking to sell its assets.
AMC Entertainment Holdings Inc plunged 27.5% to $3.69 after the company settled a shareholder lawsuit to proceed with exchanging its preferred stocks for common stocks.
AMC's preferred equity units soared 22.9% to $1.83 after the company's recapitalization plan will issue more shares to preferred shareholders.
The company will issue an additional one common share for every 7.5 preferred shares units, called APE units, held in connection with the planned conversion to common stock.
The settlement consideration includes additional 6.9 million common shares which will be distributed to holders of preferred units prior to conversion.
The settlement was announced by lawyers representing the stockholders group.
European Indexes Hovered Around One-year Highs
Benchmark indexes in the Euro Area trimmed early gains and two inflation reports showed weakening trends in the region.
Wholesale price inflation in the eurozone slowed in February after energy prices cooled further.
Moreover, a survey from the European Central Bank showed that consumers lowered their expectations of inflation in February. supporting the weakening inflation trend.
Moreover, Germany's exports continued to climb at a steady pace on the back of sustained demand from the U.S. and China.
Weaker-than-expected U.S. manufacturing growth and the number of job openings declined to the low last seen in may 2021 also encouraged investors that inflation trends are easing in the largest economy in the world.
Germany's International Goods Trade Surplus Stable
German international trade showed steady growth from the previous month and a year ago in February, the Federal Statistics Office said Tuesday.
February goods exports adjusted for seasonal and calendar factors increased 4.0% from the previous month and rose 7.6% from a year ago to Є136.7 billion.
Goods imports in February adjusted for seasonal and calendar factors increased 4.6% from the previous month and 3.8% from a year ago to Є120.7 billion.
From a year ago, exports growth more than halved to 6.3% in February from 12.8% in the previous month and imports rose 2.6%, weaker than the 9.1% surge in January.
International goods trade surplus was stable from the previous month and jumped 49.7% from a year ago to Є16.0 billion.
Eurozone Wholesale Inflation Slowed In February
Wholesale prices in the eurozone slowed further in February after energy prices continued to slide, the latest report from Eurostat indicated Tuesday.
Producer price index, a measure of wholesale prices, increased 13.2% in February after rising at 15.1% in January, the slowest increase since a 12.4% rise in January 2021.
Excluding energy, producer price increase slowed to a moderate pace of 10.2% in the month from 11.1% in the previous month.
Energy price increase slowed to 17.4% in the month after January's 20.7% rise in January.
Intermediate goods inflation slowed to 9.3% from 11.2% in the previous month.
On a monthly basis, the producer price index declined 0.5% in February after energy prices decreased 1.6%
Europe Indexes & Yields
The DAX index increased 0.1% to 15,603.47, the CAC-40 index declined 1.0 points to 7,344.96 and the FTSE 100 index decreased 0.5% to 7,634.52.
The yield on 10-year German Bunds edged up to 2.26%, French bonds rose to 2.75%, the UK Gilts to 3.43% and Italian bonds to 4.12%.
The euro inched higher to $1.095, the British pound edged up to $1.25 and the Swiss franc to 90.82 cents.
Brent crude oil gained 35 cents to $85.30 a barrel and the Dutch TTF natural gas fell Є4.02 to Є47.25 per MWh.
Europe Stock Movers
L'Oreal SA increased 0.9% to €419.25 after the France-based luxury products company agreed to acquire Australia's luxury brand Aesop from Brazil-based Natura & Co for an enterprise value of $2.53 billion.
Natura plans to use proceeds to lower its debt and focus on Avon and The Body Shop businesses in Latin America.
OKYO Pharma Ltd plunged 26.8% to 1.50 pence after the bio-pharma company announced its plan to delist its stock from the London Stock Exchange in May.
NatWest Group PLC decreased 0.2% to 263.70 pence after the UK government extended the deadline to lowering its stake in the bank by two more years.
Nordex Group SE decreased 0.3% to €13.15 after the German wind turbine maker won a 106 MW wind project in Lithuania from E energija group.
- Bridgette Randall
- 04 Apr, 2023
- Frankfurt
L'Oreal SA increased 0.9% to €419.25 after the France-based luxury products company agreed to acquire Australia's luxury brand Aesop from Brazil-based Natura & Co for an enterprise value of $2.53 billion.
Natura plans to use proceeds to lower its debt and focus on Avon and The Body Shop businesses in Latin America.
NatWest Group PLC decreased 0.2% to 263.70 pence after the UK government extended the deadline to lowering its stake in the bank by two more years.
Nordex Group SE decreased 0.3% to €13.15 after the German wind turbine maker won a 106 MW wind project in Lithuania from E energija group.
OKYO Pharma Ltd plunged 26.8% to 1.50 pence after the bio-pharma company announced its plan to delist its stock from the London Stock Exchange in May.
Renewi Plc increased 0.3% to 607.0 pence after the glass and paper recycling company forecasted annual profit to be "slightly ahead of market expectations" for the year ending in March.
Rheinmetall AG rose as much as 1.5% but closed down 1% to €275.0 and the company's trading division won an order to provide structural parts for e-mobility vehicles.
Rheinmetall will be producing left- and right-hand shock absorber mounting sets for Geely, as well as front shock absorber mountings in sets for Jidu Auto, a new automaker.
China-based Geely and the owner of Volvo placed a supply order for nearly 200,000 of the sets consisting of front shock absorber mountings and the two side members.
Each of the three orders are worth "a figure in the double-digit million-euro range."
- Bridgette Randall
- 04 Apr, 2023
- Frankfurt
Benchmark indexes in the Euro Area trimmed early gains and two inflation reports showed weakening trends in the region.
Wholesale price inflation in the eurozone slowed in February after energy prices cooled further.
Moreover, a survey from the European Central Bank showed that consumers lowered their expectations of inflation in February. supporting the weakening inflation trend.
Moreover, Germany's exports continued to climb at a steady pace on the back of sustained demand from the U.S. and China.
Weaker-than-expected U.S. manufacturing growth and the number of job openings declined to the low last seen in may 2021 also encouraged investors that inflation trends are easing in the largest economy in the world.
Germany's International Goods Trade Surplus Stable
German international trade showed steady growth from the previous month and a year ago in February, the Federal Statistics Office said Tuesday.
February goods exports adjusted for seasonal and calendar factors increased 4.0% from the previous month and rose 7.6% from a year ago to Є136.7 billion.
Goods imports in February adjusted for seasonal and calendar factors increased 4.6% from the previous month and 3.8% from a year ago to Є120.7 billion.
From a year ago, exports growth more than halved to 6.3% in February from 12.8% in the previous month and imports rose 2.6%, weaker than the 9.1% surge in January.
International goods trade surplus was stable from the previous month and jumped 49.7% from a year ago to Є16.0 billion.
Eurozone Wholesale Inflation Slowed In February
Wholesale prices in the eurozone slowed further in February after energy prices continued to slide, the latest report from Eurostat indicated Tuesday.
Producer price index, a measure of wholesale prices, increased 13.2% in February after rising at 15.1% in January, the slowest increase since a 12.4% rise in January 2021.
Excluding energy, producer price increase slowed to a moderate pace of 10.2% in the month from 11.1% in the previous month.
Energy price increase slowed to 17.4% in the month after January's 20.7% rise in January.
Intermediate goods inflation slowed to 9.3% from 11.2% in the previous month.
On a monthly basis, the producer price index declined 0.5% in February after energy prices decreased 1.6%
Europe Indexes & Yields
The DAX index increased 0.1% to 15,603.47, the CAC-40 index declined 1.0 points to 7,344.96 and the FTSE 100 index decreased 0.5% to 7,634.52.
The yield on 10-year German Bunds edged up to 2.26%, French bonds rose to 2.75%, the UK Gilts to 3.43% and Italian bonds to 4.12%.
The euro inched higher to $1.095, the British pound edged up to $1.25 and the Swiss franc to 90.82 cents.
Brent crude oil gained 35 cents to $85.30 a barrel and the Dutch TTF natural gas fell Є4.02 to Є47.25 per MWh.
Europe Stock Movers
L'Oreal SA increased 0.9% to €419.25 after the France-based luxury products company agreed to acquire Australia's luxury brand Aesop from Brazil-based Natura & Co for an enterprise value of $2.53 billion.
Natura plans to use proceeds to lower its debt and focus on Avon and The Body Shop businesses in Latin America.
OKYO Pharma Ltd plunged 26.8% to 1.50 pence after the bio-pharma company announced its plan to delist its stock from the London Stock Exchange in May.
NatWest Group PLC decreased 0.2% to 263.70 pence after the UK government extended the deadline to lowering its stake in the bank by two more years.
Nordex Group SE decreased 0.3% to €13.15 after the German wind turbine maker won a 106 MW wind project in Lithuania from E energija group.
- Scott Peters
- 04 Apr, 2023
- New York City
Acuity Brands Inc dropped 5.5% to $173.30 after the industrial technology company reported higher sales and earnings in its fiscal second quarter 2023.
Revenue increased 3.8% to $943.6 million from $909.1 million and net income rose 10.5% to $83.2 million from $75.3 million and diluted earnings per share increased to $2.57 from $2.13 a year ago.
In the first-half of fiscal 2023, the company repurchased approximately 0.7 million shares of common stock for a total of $124.1 million.
AMC Entertainment Holdings Inc plunged 27.5% to $3.69 after the company settled a shareholder lawsuit to proceed with exchanging its preferred stocks for common stocks.
AMC's preferred equity units soared 22.9% to $1.83 after the company's recapitalization plan will issue more shares to preferred shareholders.
The company will issue an additional one common share for every 7.5 preferred shares units, called APE units, held in connection with the planned conversion to common stock.
The settlement consideration includes additional 6.9 million common shares which will be distributed to holders of preferred units prior to conversion.
The settlement was announced by lawyers representing the stockholders group.
Butterfly Network Inc increased 21.9% to $2.28 after the digital health focused company said it received 510(k) clearance for "AI-enabled Auto B-line Counter" that may simplify how healthcare professionals evaluate adults with suspected diminished lung function.
General Motors Company decreased 1.8% to $35.59 after the company said first quarter vehicle deliveries increased 18% to 603,208 units.
Separately, chief financial officer Paul Jacobson said about 5,000 salaried employees accepted the voluntary separation and the company will take about $1 billion of charge in the first quarter.
The company earlier had announced its plan to cut annual costs by $2 billion by the end of 2024, Jacobson confirmed that the company will be able to meet that target and avoid involuntary layoffs.
Virgin Orbit Holdings Inc declined 18% to 16 cents after the rocket launch company filed for Chapter 11 bankruptcy protection in the U.S.
The company sought bankruptcy protection in the district of Delaware after it failed to secure emergency funding and is looking to sell its assets.
- Barry Adams
- 04 Apr, 2023
- New York City
Traders reassessed the prospects of higher interest rates after oil prices soared more than 6% and inflation worries resurfaced.
Treasury yields rose slightly ahead of bank earnings next week and investors are looking for more clues on stress in the financial system.
Next week, first quarter earnings calls from banks may provide answers if banks are curtailing lending and rebuilding capital to counter rising unrealized losses in treasury securities in the held-to-maturity account.
The Federal Reserve is scheduled to meet in less than four weeks and many bond investors are looking for the central bank to raise interest rates by 25 basis points.
The banking system stress and the surprise production cut from eight oil producing nations are going to add another layer of complexity for the policymakers in deciding the future trajectory of monetary policy.
Indexes & Yields
The S&P 500 index increased 0.1% to 4,128.54 and the Nasdaq Composite index futures added 0.2% to 12,202.05.
The yield on 2-year Treasury notes increased a fraction to 3.99%, 10-year Treasury notes inched up to 3.45% and 30-year Treasury bonds edged up to 3.65%.
Crude oil increased 75 cents to $81.14 a barrel and natural gas edged up 1 cent to $2.10 a thermal unit.
U.S. Stock Movers
Virgin Orbit Holdings Inc declined 18% to 16 cents after the rocket launch company filed for Chapter 11 bankruptcy protection in the U.S.
The company sought bankruptcy protection in the district of Delaware after it failed to secure emergency funding and is looking to sell its assets.
AMC Entertainment Holdings Inc plunged 27.5% to $3.69 after the company settled a shareholder lawsuit to proceed with exchanging its preferred stocks for common stocks.
AMC's preferred equity units soared 22.9% to $1.83 after the company's recapitalization plan will issue more shares to preferred shareholders.
The company will issue an additional one common share for every 7.5 preferred shares units, called APE units, held in connection with the planned conversion to common stock.
The settlement consideration includes additional 6.9 million common shares which will be distributed to holders of preferred units prior to conversion.
The settlement was announced by lawyers representing the stockholders group.
- Arjun Pandit
- 04 Apr, 2023
- Mumbai
Asian markets closed with moderate gains after investors assessed the impact of recent production cuts announced by the OPEC+ member nations.
The voluntary cuts are in addition to the earlier cuts announced by the alliance in last October, reflecting the oil producing nations target price for oil to stay above $90 a barrel.
In Japan, investors are also awaiting policy direction from Kazuo Ueda, the newly appointed governor of the Bank of Japan.
Governor Ueda is scheduled to chair his first meeting of the central bank on April 27 and April 28 amid rising speculation that the ultra loose monetary policy may come to an end.
The Nikkei 225 index increased 02% to 28,287.42, the Hang Seng Index closed down 0.5% to 20,294.10 and the Shanghai Composite Index added 0.35% to 3,308.05.
The yield on Japanese government bonds closed at 0.39% and the Chinese government bonds at 2.86%.
Automakers led the gainers in Tokyo trading.
Honda Motor Company gained 1.1%, Toyota Motor Corp added 0.5% and Nissan Motor Co Ltd added 0.3%.
SoftBank Group Corp increased 0.5% to ¥5,244.0 after tech stocks edged higher and overlooked the oil price surge in the previous session.
Advantest Corp declined 1.9% to ¥11,420.0 and Fanuc Corp dropped 1.1% to ¥4,737.0.
Market indexes in Hong Kong closed lower in light trading ahead of public holiday in the city and mainland China.
Alibaba Group Holding Ltd declined 2.8% but CNOOC Ltd advanced 2.8% following the rise in international price of crude oil.
Capital flight from Hong Kong also weighed on the market sentiment and the Hong Kong Monetary Authority purchased HK$7.1 billion or US$905 million of the local currency to defend its peg to the U.S. dollar.
The HKMA has intervened in the currency market for the third time this year.
Markets in India were closed for a public holiday and the Reserve Bank of India is scheduled to announce its interest rate decision tomorrow.
Investors are anticipating the central bank to hike interest rates by 25 basis points and extend the cumulative 250 basis points increase in a year.
The ASX 200 index gained 0.2% to 7,236.0 and the Reserve Bank of Australia held its rate at 3.6% after a policy meeting on Tuesday.
The central bank left its rate unrevised after raising rates by 350 basis points since May 2022.
The policymakers' committee decided to wait for some time to judge the effect of several rate hikes on the economy.
The board noted that monetary policy operates with a lag and the full impact of these cumulative rates are still to be felt by the broader economy.
Commonwealth Bank, Westpac, ANZ Group Holdings and National Australia Bank rose between 0.1% and 0.3%.