- Bridgette Randall
- 26 Nov, 2024
- London
European stock markets headed lower amid rising investor anxiety surrounding economic outlook, geopolitical tensions, and political instability in the region.
Benchmark indexes in Paris, Frankfurt, Milan, and London edged down as investors focused on a growing list of negative factors building in the background.
Political parties ramped up their campaigns in Germany as far-right parties aggressively seek a change of leadership.
France's Le Pen Party leader promised to bring down the minority government if changes are not made in the budget bill discussed in the parliament.
The party is opposing pension reform as lawmakers struggle to lower the government deficit and meet the European Union guidelines by 2027.
Moreover, rising trade tensions with the U.S. contributed to the market gloom after president-elect Donald Trump reiterated his commitment to impose 25% tariffs on all goods shipped from Mexico and Canada and an additional tariff of 10% on shipments from China.
On the campaign trail, Trump also had threatened to levy punitive tariffs on European goods, targeting vehicles manufactured in the region and agricultural products.
In addition, investor sentiment was dented after a survey of private businesses last week showed a weak business environment and a decline in export orders.
Europe Indexes and Yields
The DAX index decreased by 0.7% to 19,279.69; the CAC-40 index fell by 0.7% to 7,203.45; and the FTSE 100 index eased by 0.2% to 8,263.45.
The yield on 10-year German bonds edged lower to 2.20%, French bonds inched down to 3.02%, the UK gilts edged lower to 4.36%, and Italian bonds increased to 3.46%.
The euro edged higher to $1.05; the British pound inched up to $1.25; and the U.S. dollar strengthened to 88.53 Swiss cents.
Brent crude increased $0.69 to $73.61 a barrel, and the Dutch TTF natural gas rose by €0.27 to €48.17 per MWh.
Europe Stock Movers
Automobile stocks dived for the third week in a row amid growing prospects of higher U.S. tariffs on luxury vehicles shipped from the European Union.
Mercedes-Benz Group declined 1.4% to €52.11, BMW AG fell 1.5% to €68.24, Volkswagen AG dropped 2.6% to €80.24, and Renault SA decreased 1% to €39.52.
UniCredit SpA increased 0.4% to €36.30 after the Italian bank made an unsolicited €10.1 billion bid to acquire the rival Banco BPM.
Telecom Plus PLC dropped 3.4% to €20.60 despite the energy utility and telecom company reporting an increase in half-year pre-tax profit and reiterating its full-year outlook.
Halfords Group soared 11.9% to 144.66 pence after the UK-based automobile and motorcycle retailer reported higher-than-expected profit in the first half.
Profit in the interim period ending on September 27 increased to £21.3 million, and analysts estimated the company to achieve a £29 million profit for the full year.
The vehicle dealer said it plans to increase its retail location footprint to 40 stores from the current 22 stores but did not specify the time period.
- Bridgette Randall
- 26 Nov, 2024
- London
European stock markets headed lower amid rising investor anxiety surrounding economic outlook, geopolitical tensions, and political instability in the region.
Benchmark indexes in Paris, Frankfurt, Milan, and London edged down as investors focused on a growing list of negative factors building in the background.
Political parties ramped up their campaigns in Germany as far-right parties aggressively seek a change of leadership.
France's Le Pen Party leader promised to bring down the minority government if changes are not made in the budget bill discussed in the parliament.
The party is opposing pension reform as lawmakers struggle to lower the government deficit and meet the European Union guidelines by 2027.
Moreover, rising trade tensions with the U.S. contributed to the market gloom after president-elect Donald Trump reiterated his commitment to impose 25% tariffs on all goods shipped from Mexico and Canada and an additional tariff of 10% on shipments from China.
On the campaign trail, Trump also had threatened to levy punitive tariffs on European goods, targeting vehicles manufactured in the region and agricultural products.
In addition, investor sentiment was dented after a survey of private businesses last week showed a weak business environment and a decline in export orders.
Europe Indexes and Yields
The DAX index decreased by 0.7% to 19,279.69; the CAC-40 index fell by 0.7% to 7,203.45; and the FTSE 100 index eased by 0.2% to 8,263.45.
The yield on 10-year German bonds edged lower to 2.20%, French bonds inched down to 3.02%, the UK gilts edged lower to 4.36%, and Italian bonds increased to 3.46%.
The euro edged higher to $1.05; the British pound inched up to $1.25; and the U.S. dollar strengthened to 88.53 Swiss cents.
Brent crude increased $0.69 to $73.61 a barrel, and the Dutch TTF natural gas rose by €0.27 to €48.17 per MWh.
Europe Stock Movers
Automobile stocks dived for the third week in a row amid growing prospects of higher U.S. tariffs on luxury vehicles shipped from the European Union.
Mercedes-Benz Group declined 1.4% to €52.11, BMW AG fell 1.5% to €68.24, Volkswagen AG dropped 2.6% to €80.24, and Renault SA decreased 1% to €39.52.
UniCredit SpA increased 0.4% to €36.30 after the Italian bank made an unsolicited €10.1 billion bid to acquire the rival Banco BPM.
Telecom Plus PLC dropped 3.4% to €20.60 despite the energy utility and telecom company reporting an increase in half-year pre-tax profit and reiterating its full-year outlook.
Halfords Group soared 11.9% to 144.66 pence after the UK-based automobile and motorcycle retailer reported higher-than-expected profit in the first half.
Profit in the interim period ending on September 27 increased to £21.3 million, and analysts estimated the company to achieve a £29 million profit for the full year.
The vehicle dealer said it plans to increase its retail location footprint to 40 stores from the current 22 stores but did not specify the time period.
- Akira Ito
- 26 Nov, 2024
- Tokyo
Sentiment in Tokyo soured, and benchmark indexes traded down, reversing gains of the previous two sessions.
The Nikkei 225 stock average fell 1.4%, and the broader Topix index fell 1.5% as investors worried about the U.S. trade policy uncertainty and rising geopolitical tensions.
Japan exports about 18% of its goods to China, and the worsening economic outlook in the second-largest economy has kept investor sentiment negative.
Moreover, the next U.S. administration is likely to increase tariffs on all imported goods, including products made in Japan and made by Japan in Asia and Mexico and Canada.
Rising trade barriers, export controls, and escalation of tariffs are likely to provide additional headwinds to export-driven companies in Japan and dampen overall economic growth.
Japan, with heavy reliance on exports to China, remains vulnerable to economic volatility and slowdown in the second-largest economy.
On the economic front, investors are looking forward to the release of Tokyo area inflation data on Friday, and the region's trend is generally indicative of the broader patterns in Japan.
Japan Stock Movers
The Nikkei 225 Stock Average decreased 1.4% to 38,247.44, and the broader Topix index fell 1.5%.
Volatile tech stocks led the decliners, and semiconductor equipment stocks topped the chart.
Tokyo Electron decreased 2.7% to ¥22,510.0, Advantest Corp. fell 4.4% to ¥8,827.0, Lasertec declined 5.7% to ¥16,670.0, and Disco Corp. eased 3.3% to ¥41,340.0.
Keisei Electric Railway Co. Ltd. increased 1.5% and extended two-day gains to over 15% after an activist investor took a stake in the company, which could force the company to boost shareholder return.
East Japan Railway decreased 0.6% to ¥2,824.50, West Japan Railway added 0.1%, and Oriental Land eased 1.1% to ¥3,440.0.
Haseko Corp rose 2.2% to ¥1,980.0, Daiwa House decreased 0.1% to ¥4,651.0, and Sekisui House edged down 0.1% to ¥3,586.0.
Toyota Motor declined 1% to ¥2,667.50, Honda Motor fell 1.9% to ¥1,333.0, and Nissan Motor dropped 3.6% to ¥392.10.
- Akira Ito
- 26 Nov, 2024
- Tokyo
Sentiment in Tokyo soured, and benchmark indexes traded down, reversing gains of the previous two sessions.
The Nikkei 225 stock average fell 1.4%, and the broader Topix index fell 1.5% as investors worried about the U.S. trade policy uncertainty and rising geopolitical tensions.
Japan exports about 18% of its goods to China, and the worsening economic outlook in the second-largest economy has kept investor sentiment negative.
Moreover, the next U.S. administration is likely to increase tariffs on all imported goods, including products made in Japan and made by Japan in Asia and Mexico and Canada.
Rising trade barriers, export controls, and escalation of tariffs are likely to provide additional headwinds to export-driven companies in Japan and dampen overall economic growth.
Japan, with heavy reliance on exports to China, remains vulnerable to economic volatility and slowdown in the second-largest economy.
On the economic front, investors are looking forward to the release of Tokyo area inflation data on Friday, and the region's trend is generally indicative of the broader patterns in Japan.
Japan Stock Movers
The Nikkei 225 Stock Average decreased 1.4% to 38,247.44, and the broader Topix index fell 1.5%.
Volatile tech stocks led the decliners, and semiconductor equipment stocks topped the chart.
Tokyo Electron decreased 2.7% to ¥22,510.0, Advantest Corp. fell 4.4% to ¥8,827.0, Lasertec declined 5.7% to ¥16,670.0, and Disco Corp. eased 3.3% to ¥41,340.0.
Keisei Electric Railway Co. Ltd. increased 1.5% and extended two-day gains to over 15% after an activist investor took a stake in the company, which could force the company to boost shareholder return.
East Japan Railway decreased 0.6% to ¥2,824.50, West Japan Railway added 0.1%, and Oriental Land eased 1.1% to ¥3,440.0.
Haseko Corp rose 2.2% to ¥1,980.0, Daiwa House decreased 0.1% to ¥4,651.0, and Sekisui House edged down 0.1% to ¥3,586.0.
Toyota Motor declined 1% to ¥2,667.50, Honda Motor fell 1.9% to ¥1,333.0, and Nissan Motor dropped 3.6% to ¥392.10.
- Li Chen
- 26 Nov, 2024
- Hong Kong
Stock market indexes in China and Hong Kong advanced as investors looked beyond brewing tariff wars with the U.S. and the European Union.
The Hang Seng index increased 0.4%, and the CSI 300 index edged higher by 0.35% as investors debated the scope and depth of potential U.S. tariffs on goods shipped from China.
Investors are taking a wait-and-see approach with the potential increase in U.S. tariffs and diversifying their manufacturing base to minimize the impact.
Chinese automakers are ramping up production in Thailand, Vietnam, Mexico, and Hungary, as manufacturing companies are shifting more assembly operations to overseas locations.
The supply chain elongation trend has been in place since 2018, when the U.S. imposed punitive tariffs for the first time, only to see exports from China surge over the next six years.
China's exports to the U.S. are set to surpass $560 billion in 2024 from $479 billion in 2018, despite rising trade barriers, punitive tariffs, and export controls, according to data available from the U.S. and Chinese government agencies.
The U.S. tariffs so far have increased operating costs for businesses and living expenses for households and contributed to keeping U.S. inflation at elevated levels.
China Stock Movers
The Hang Seng index increased 0.4% to 19,244.63, and the mainland China-focused CSI 300 index gained 0.4% to 3,861.81.
Baidu jumped 5.2% to HK $81.90, and the search company is set to launch trial operations for its autonomous ride-hailing operation in Hong Kong as early as this month.
Meituan advanced 2.7% to HK $166.40 ahead of the company's quarterly results on Friday.
Investors are hoping that the online delivery platform operator is likely to report a three-fold surge in its profit.
CNSIG Anhui Hongsifang Fertilizer soared more than 15-fold to 129.34 yuan on the first day of trading in Shanghai.
The fertilizer company placed 50 million shares in its initial public offering priced at 7.98 yuan per share.
- Li Chen
- 26 Nov, 2024
- Hong Kong
Stock market indexes in China and Hong Kong advanced as investors looked beyond brewing tariff wars with the U.S. and the European Union.
The Hang Seng index increased 0.4%, and the CSI 300 index edged higher by 0.35% as investors debated the scope and depth of potential U.S. tariffs on goods shipped from China.
Investors are taking a wait-and-see approach with the potential increase in U.S. tariffs and diversifying their manufacturing base to minimize the impact.
Chinese automakers are ramping up production in Thailand, Vietnam, Mexico, and Hungary, as manufacturing companies are shifting more assembly operations to overseas locations.
The supply chain elongation trend has been in place since 2018, when the U.S. imposed punitive tariffs for the first time, only to see exports from China surge over the next six years.
China's exports to the U.S. are set to surpass $560 billion in 2024 from $479 billion in 2018, despite rising trade barriers, punitive tariffs, and export controls, according to data available from the U.S. and Chinese government agencies.
The U.S. tariffs so far have increased operating costs for businesses and living expenses for households and contributed to keeping U.S. inflation at elevated levels.
China Stock Movers
The Hang Seng index increased 0.4% to 19,244.63, and the mainland China-focused CSI 300 index gained 0.4% to 3,861.81.
Baidu jumped 5.2% to HK $81.90, and the search company is set to launch trial operations for its autonomous ride-hailing operation in Hong Kong as early as this month.
Meituan advanced 2.7% to HK $166.40 ahead of the company's quarterly results on Friday.
Investors are hoping that the online delivery platform operator is likely to report a three-fold surge in its profit.
CNSIG Anhui Hongsifang Fertilizer soared more than 15-fold to 129.34 yuan on the first day of trading in Shanghai.
The fertilizer company placed 50 million shares in its initial public offering priced at 7.98 yuan per share.
- Arun Goswami
- 26 Nov, 2024
- Mumbai
Stocks in Mumbai traded higher following a sharp decline in crude oil and gold prices in international markets.
The Sensex index increased 0.3% to 80,363.24, and the Nifty index edged up 0.3% to 24,302.85.
Crude oil prices in London and New York dropped more than $3 a barrel on reports that Israel's military and Hezbollah are nearing a ceasefire agreement as early as this week.
The ceasefire agreement could lower tensions in the Middle East and risks of supply disruptions in the region.
Texas crude oil prices edged down 0.4% to $69.20 in New York, and Brent crude oil fell 0.5% to $73.30 a barrel in London.
Gold approached $2,600 an ounce in New York but rebounded to $2,630.39 an ounce in Asian trading, following the reports of a ceasefire agreement in the Middle East and the resurgent U.S. dollar.
U.S. President-elect Donald Trump said starting his first day in office he plans to impose 25% tariffs on all shipments from Mexico and Canada and additional 10% tariffs on goods from China.
India Stock Movers
Hindustan Unilever increased 1.2% to ₹2,474.95 after the company's board approved spinning off its ice cream business as a separate listed company.
Vedanta decreased 0.2% to ₹444.50, and the resource company is likely to access the international bond market next week to raise as much as $500 million.
The bond offering will test the high-yield market's appetite for Indian offerings following the U.S. allegations of bribery and fraud schemes against the Adani Group.
Interglobe Aviation gained 0.7% to ₹4,274.50, and the airline struck a deal with Japan Airlines, which will provide access to 18 destinations in India.
Edelweiss Financial Services advanced 2.2% to ₹108.10, and the financial service company is looking to sell a minority stake in its mutual fund company.
Ashoka Buildcon inched higher 3.8% to ₹242.0, and the company won a project worth ₹1,391 crore to build a road in West Bengal from the National Highways Authority of India.
KEC International traded higher by 0.5% to ₹1,055.50 after the company won two new orders totaling 1,114 crore in several of its business segments.
- Arun Goswami
- 26 Nov, 2024
- Mumbai
Stocks in Mumbai traded higher following a sharp decline in crude oil and gold prices in international markets.
The Sensex index increased 0.3% to 80,363.24, and the Nifty index edged up 0.3% to 24,302.85.
Crude oil prices in London and New York dropped more than $3 a barrel on reports that Israel's military and Hezbollah are nearing a ceasefire agreement as early as this week.
The ceasefire agreement could lower tensions in the Middle East and risks of supply disruptions in the region.
Texas crude oil prices edged down 0.4% to $69.20 in New York, and Brent crude oil fell 0.5% to $73.30 a barrel in London.
Gold approached $2,600 an ounce in New York but rebounded to $2,630.39 an ounce in Asian trading, following the reports of a ceasefire agreement in the Middle East and the resurgent U.S. dollar.
U.S. President-elect Donald Trump said starting his first day in office he plans to impose 25% tariffs on all shipments from Mexico and Canada and additional 10% tariffs on goods from China.
India Stock Movers
Hindustan Unilever increased 1.2% to ₹2,474.95 after the company's board approved spinning off its ice cream business as a separate listed company.
Vedanta decreased 0.2% to ₹444.50, and the resource company is likely to access the international bond market next week to raise as much as $500 million.
The bond offering will test the high-yield market's appetite for Indian offerings following the U.S. allegations of bribery and fraud schemes against the Adani Group.
Interglobe Aviation gained 0.7% to ₹4,274.50, and the airline struck a deal with Japan Airlines, which will provide access to 18 destinations in India.
Edelweiss Financial Services advanced 2.2% to ₹108.10, and the financial service company is looking to sell a minority stake in its mutual fund company.
Ashoka Buildcon inched higher 3.8% to ₹242.0, and the company won a project worth ₹1,391 crore to build a road in West Bengal from the National Highways Authority of India.
KEC International traded higher by 0.5% to ₹1,055.50 after the company won two new orders totaling 1,114 crore in several of its business segments.