- Arjun Pandit
- 20 Dec, 2022
- Mumbai
Asian markets closed lower after the Bank of Japan widened the upper end of the 10-year government bond yield to 0.5% from 0.25%.
The central bank said the range gap widening was designed to facilitate smoother functioning of the bond market.
The surprising move lifted the 10-year Japanese government bonds yield to 0.43% and spiked bond yields worldwide.
The Nikkei plunged 2.5% and the yen surged 3% to 132.24 against the U.S. dollar.
The Nikkei index fell 2.46% to 26,568.03, the Shanghai Composite index declined 1.1% to 3,073.77, the Hang Seng index fell 1.3% to 19,094.80 and the Sensex index eased 0.17% to 61,702.29.
- Brian Turner
- 19 Dec, 2022
- New York City
Japan's trade deficit rose for the 16th month in a row in November, the longest period since 2015 on rising costs of energy and mineral fuels and chemicals.
Trade deficit in November increased to 2,027.4 billion from a shortfall of 973.6 a year ago.
Exports in the month increased 20.0% to 8,837.5 billion yen after rising 25.3% in October. Exports increased for the 21st month in a row but at the slowest pace since July.
imports to Japan increased 30.3% to 10,864.9 billion after advancing 53.5% in October. Imports rose in double digits for the 19th month in a row but the increase slowed the most since April.
Trade deficit in the first eleven months surged to 18.4 trillion yen from a surplus of 415.4 billion a year ago.
- Barry Adams
- 19 Dec, 2022
- New York City
Market indexes on Wall Street closed sharply lower as hopes Santa rally faded amid growing worries of 2023 recession and earnings revisions.
U.S. stocks attempted to rebound after two weeks of decline amid growing worries of slowing economic activities and earnings downgrade in the upcoming year.
Markets are also shifting away from the economic soft landing scenario after the Federal Reserve's commitment in fighting high inflation and admission that it will take a while before price stability returns.
Investors are increasingly worried that the Fed's plan of more rate increases in 2023 may dip the slowing economy into a recession and also negatively impact labor market expansion.
Markets are awaiting the data on PCE Price Index, personal income and spending, durable goods report and consumer confidence.
The S&P 500 index declined 0.9% to 3,840.47 and the Nasdaq Composite index dropped 1.5% to 10,546.03.
Energy Markets Advance
Natural gas prices extended losses in the third week and dropped near a 5-month low of $5.55 a thermal unit on the expectations of milder weather and lower demand of heating energy.
Moreover, markets are awaiting the restarting of Freeport LNG terminal near Houston, Texas towards the year-end after six months of outage and resume exports to Europe.
Crude oil futures increased $1.54 to $75.85 a barrel and natural gas futures fell 77 cents to $5.82 a thermal unit.
Bond Yields Inched Higher
Treasury yields inched higher as investors worried that the inflationary forces are stronger than anticipated despite the ongoing fall in energy prices.
Markets also focused on the broadening of inflation from goods to services sector and noted the Fed's commitment in continuing its campaign of raising rates in early 2023.
The yield on 2-year Treasury notes edged up to 4.26%, 10-year Treasury notes inched higher 3.58% and 30-year bonds increased to 3.64%.
U.S. Stock Movers
Aerojet Rocketdyne Holdings Inc increased 1.6% to $55.77 after the company agreed to be acquired by rival L3 Harris Technologies for $58 a share.
L3Harris decreased 3.5% to $205.76.
Sinclair Broadcast Group Inc declined 2.8% to $15.43 on a report from the New Yoro Post that the company's, Diamond Sports Group, regional sports network of 21 channels is likely to initiate bankruptcy proceedings.
Tesla Inc dropped as much as 4% in pre-market trading to $146.45 on the worries that chief executive Elon Musk may be distracted from running the electric vehicle maker and distracted by his recent purchase of Twitter Inc.
Mesa Air Group Inc increased 12.8% to $1.32 after the company said it is close to finalizing its deal with United Airlines.
American Airlines is said to terminate its relationship with Mesa for its regional flights on the worries that Mesa may not have operational and financial resources to run the regional network.
Mesa said in a statement that the airline is looking to sell more planes and parts to raise capital but the regional carrier is struggling with nationwide pilot shortage after the sharp rebound in travel demand after two years of pandemic.
Investors are awaiting earnings results from 107 companies including the list of following companies.
BHP Group, Carnival Corporation, Cintas, FactSet Research, FedEx, General Mills, Micron Technology, Nike, Steelcase and Titan Pharma.
European Markets Attempt to Rebound After 3% Weekly Sell-0ff
Benchmark indexes in Europe gained following a brutal market selloff in the previous week after the European Central Bank lifted ley rates and signaled more rate hikes in 2023.
Market indexes rebounded after the German business confidence index advanced for the third week in a row.
Germany's Ifo Business Climate Index in December increased to 88.6 from the revised 86.4 in November.
Moreover, market sentiment was bolstered after policymakers in China pledged to relax and improve coronavirus controls and consider additional support for the property market.
The DX index advanced 0.4% to 13,942.87, the CAC-40 index rose 0.3% to 6,473.29 and the FTSE 100 index added 0.4% to 7,361.31.
Labor Market Slack Remained Stable
The employment rate in the European Union was stable in the third quarter at 74.7% compared to the second quarter, according to the data released today by Eurostat.
The labor market slack also remained stable at 11.5% of the extended labor force aged between 20 and 64 years, the statistical office also noted today.
Euro Area Wage Growth Slows to one-Year Low
Wages and salaries in the Euro Area rose at the slowest pace in a year of 2.1% in the third quarter, Eurostat reported Monday.
The second quarter wage growth was downwardly revised to 3.2% from the preliminary estimate.
The non-wage component of total wage and salaries rose 5.3% in the third quarter from a year ago.
Wages rose for the fifth quarter in a row but at the slowest pace since the second quarter 2021.
Among large economies in the region, wages rose at the fastest pace in the third quarter among large economies in the region in France at 4.4% followed by 2.5% in Spain and 1.9% in Italy.
However in the European Union, wages rose the fastest in Hungary 16.6 % and Bulgaria 16.3 %.
Four more EU Member States recorded an increase above 10 %: Lithuania (13.9%), Poland (13.3%), Greece (11.6%) and Romania (10.9%).
While wages in Germany declined 1.5% after rising 3% in the second quarter.
Natural Gas Price Eases, EU Approves Price Cap
Oil prices advanced after Chinese policymakers vowed to boost consumption at a key meeting on Monday, lifting hopes of higher demand for energy from the second largest economy.
Moreover, U.S. President Biden's administration is also looking to replenish crude oil reserves starting with 3 million barrels.
After a year of unprecedented oil depletion, the U.S. government is looking to rebuild its oil
The U.S. has been depleting the reserve to fight high energy prices for about a year and the White House had estimated to release in total 180 barrels of oil.
Brent crude oil increased $1.05 to $80.04 a barrel and Dutch TTF natural gas inched fell 6% to
- Bridgette Randall
- 19 Dec, 2022
- Frankfurt
Benchmark indexes in Europe gained following a brutal market selloff in the previous week after the European Central Bank lifted ley rates and signaled more rate hikes in 2023.
Market indexes rebounded after the German business confidence index advanced for the third week in a row.
Germany's Ifo Business Climate Index in December increased to 88.6 from the revised 86.4 in November.
Moreover, market sentiment was bolstered after policymakers in China pledged to relax and improve coronavirus controls and consider additional support for the property market.
The DX index advanced 0.4% to 13,942.87, the CAC-40 index rose 0.3% to 6,473.29 and the FTSE 100 index added 0.4% to 7,361.31.
Labor Market Slack Remained Stable
The employment rate in the European Union was stable in the third quarter at 74.7% compared to the second quarter, according to the data released today by Eurostat.
The labor market slack also remained stable at 11.5% of the extended labor force aged between 20 and 64 years, the statistical office also noted today.
Euro Area Wage Growth Slows to one-Year Low
Wages and salaries in the Euro Area rose at the slowest pace in a year of 2.1% in the third quarter, Eurostat reported Monday.
The second quarter wage growth was downwardly revised to 3.2% from the preliminary estimate.
The non-wage component of total wage and salaries rose 5.3% in the third quarter from a year ago.
Wages rose for the fifth quarter in a row but at the slowest pace since the second quarter 2021.
Among large economies in the region, wages rose at the fastest pace in the third quarter among large economies in the region in France at 4.4% followed by 2.5% in Spain and 1.9% in Italy.
However in the European Union, wages rose the fastest in Hungary 16.6 % and Bulgaria 16.3 %.
Four more EU Member States recorded an increase above 10 %: Lithuania (13.9%), Poland (13.3%), Greece (11.6%) and Romania (10.9%).
While wages in Germany declined 1.5% after rising 3% in the second quarter.
Natural Gas Price Eases, EU Approves Price Cap
Oil prices advanced after Chinese policymakers vowed to boost consumption at a key meeting on Monday, lifting hopes of higher demand for energy from the second largest economy.
Moreover, U.S. President Biden's administration is also looking to replenish crude oil reserves starting with 3 million barrels.
After a year of unprecedented oil depletion, the U.S. government is looking to rebuild its oil
The U.S. has been depleting the reserve to fight high energy prices for about a year and the White House had estimated to release in total 180 barrels of oil.
Brent crude oil increased $1.05 to $80.04 a barrel and Dutch TTF natural gas inched fell 6% to
- Scott Peters
- 19 Dec, 2022
- New York City
Aerojet Rocketdyne Holdings Inc increased 1.6% to $55.77 after the company agreed to be acquired by rival L3 Harris Technologies for $58 a share.
Aerojet agreed to pay $4.7 billion in cash including net debt.
Aerojet generated $2.3 billion revenues in its latest full-year and L3Harris annual revenue was $17 billion.
Aerojet Rocketdyne delivers a broad range of capabilities to support hypersonics, including solid rocket motor boosters, scramjets, warheads and missile defense technologies, according to the company website.
L3Harris decreased 3.5% to $205.76.
Sinclair Broadcast Group Inc declined 2.8% to $15.43 on a report from the New Yoro Post that the company's, Diamond Sports Group, regional sports network of 21 channels is likely to initiate bankruptcy proceedings.
Tesla Inc dropped as much as 4% in pre-market trading to $146.45 on the worries that chief executive Elon Musk may be distracted from running the electric vehicle maker and distracted by his recent purchase of Twitter Inc.
Mesa Air Group Inc increased 12.8% to $1.32 after the company said it is close to finalizing its deal with United Airlines.
American Airlines is said to terminate its relationship with Mesa for its regional flights on the worries that Mesa may not have operational and financial resources to run the regional network.
Mesa said in a statement that the airline is looking to sell more planes and parts to raise capital but the regional carrier is struggling with nationwide pilot shortage after the sharp rebound in travel demand after two years of pandemic.
Investors are awaiting earnings results from 107 companies including the list of following companies.
BHP Group, Carnival Corporation, Cintas, FactSet Research, FedEx, General Mills, Micron Technology, Nike, Steelcase and Titan Pharma.
Steelcase Inc dropped 5.3% to $6.25 ahead of the furniture maker's third quarter earnings call on Tuesday December 20.
In the second quarter ending in August, revenue increased 19% to $863.3 million from $724.8 million a year ago and net income declined to $19.6 million from $24.7 million or earnings per share dropped to 17 cents from 21 cents a year ago.
The company had guided third quarter revenue between $825 million and $850 million and GAAP earning between 8 cents and 12 cents a share.
- Barry Adams
- 19 Dec, 2022
- New York City
Stocks on Wall Street opened nearly unchanged after a week of selloff and markets are awaiting more data on inflation later in the week.
U.S. stocks attempt to rebound after two weeks of decline amid growing worries of slowing economic activities and earnings downgrade in the upcoming year.
Markets are also shifting away from the economic soft landing scenario after the Federal Reserve's commitment in fighting high inflation and admission that it will take a while before price stability returns.
Investors are reassessing earnings and economic outlook after Fed Chairman Jay Powell forcefully reiterated the central bank's commitment to lower rates and forecasted higher rates for a prolonged period of time.
Markets are awaiting the data on PCE Price Index, personal income and spending, durable goods report and consumer confidence.
After thirty minutes of volatile trading, The S&P 500 index declined 0.3% to 3,840.47 and the Nasdaq Composite index dropped 0.7% to 10,633.23.
Energy Markets Advance
Natural gas prices extended losses in the third week and dropped near a 5-month low of $5.55 a thermal unit on the expectations of milder weather and lower demand of heating energy.
Moreover, markets are awaiting the restarting of Freeport LNG terminal near Houston, Texas towards the year-end after six months of outage and resume exports to Europe.
Crude oil futures increased $1.25 to $75.55 a barrel and natural gas futures fell 54 cents to $6.05 a thermal unit.
Bond Yields Inched Higher
Treasury yields inched higher as investors worried that the inflationary forces are stronger than anticipated despite the ongoing fall in energy prices.
Markets also focused on the broadening of inflation from goods to services sector and noted the Fed's commitment in continuing its campaign of raising rates in early 2023.
The yield on 2-year Treasury notes edged up to 4.22%, 10-year Treasury notes inched higher 3.56% and 30-year bonds increased to 3.62%.
U.S. Stock Movers
Aerojet Rocketdyne Holdings Inc increased 1.6% to $55.77 after the company agreed to be acquired by rival L3 Harris Technologies for $58 a share.
L3Harris decreased 3.5% to $205.76.
Sinclair Broadcast Group Inc declined 2.8% to $15.43 on a report from the New Yoro Post that the company's, Diamond Sports Group, regional sports network of 21 channels is likely to initiate bankruptcy proceedings.
Tesla Inc dropped as much as 4% in pre-market trading to $146.45 on the worries that chief executive Elon Musk may be distracted from running the electric vehicle maker and distracted by his recent purchase of Twitter Inc.
Mesa Air Group Inc increased 12.8% to $1.32 after the company said it is close to finalizing its deal with United Airlines.
American Airlines is said to terminate its relationship with Mesa for its regional flights on the worries that Mesa may not have operational and financial resources to run the regional network.
Mesa said in a statement that the airline is looking to sell more planes and parts to raise capital but the regional carrier is struggling with nationwide pilot shortage after the sharp rebound in travel demand after two years of pandemic.
Investors are awaiting earnings results from 107 companies including the list of following companies.
BHP Group, Carnival Corporation, Cintas, FactSet Research, FedEx, General Mills, Micron Technology, Nike, Steelcase and Titan Pharma.
- Barry Adams
- 16 Dec, 2022
- New York City
Benchmark indexes closed down in a broad sell-off after investors struggled to recalibrate earnings in the year ahead.
Stock on Wall Street traded lower on Friday as recession worries forced investors to reevaluate stock prices and future earnings growth outlook.
Investors have been rooting for a soft landing narrative on the hopes that the Federal Reserve may slow or even pause aggressive rate hikes after multiple increases this year.
However the soft-landing narrative has been facing headwinds with weak economic data on retail sales and housing market.
The S&P fell 2.3% and the Nasdaq declined 3% this week and extended weekly losses for the second week in a row.
Stocks and market indexes traded volatile as $2.6 trillion of index options are scheduled to expire today, according to a report from Goldman Sachs.
The S&P 500 index declined 1.1% to 3,852.36 and the Nasdaq Composite index dropped 0.97% to 10,705.41.
Commodities and Oil Face Recession Headwinds
Oil futures declined 2.5% and extended three-week slide as recession worries dominated market sentiment. Brent crude in London fell to $79 and WTI crude in New York dropped to $74 a barrel.
Crude oil declined $1.90 to $74.14 a barrel and natural gas futures eased 35 cents or 5% to $6.61 a thermal unit.
Natural gas prices dropped on the forecast of milder weather later in the month and the commodity increased 5% in the week on the strong exports demand and a drop in domestic production.
Bond Yield Curve Stay Inverted
Treasury yields advanced on Friday a day after the release of weaker-than-expected November retail sales and fears of recession mounted in financial markets.
On Wednesday Fed Chairman Jerome Powell reiterated the central bank's commitment to fight high inflation and continue an aggressive rate hike campaign.
The yield on 2-year Treasury notes inched up to 4.19%, 10-year Treasury notes jumped to 3.48% and 30-year U.S. Treasury bonds advanced to 3.55%.
U.S. Stock Movers
Goldman Sachs Group declined 1.0% to $346.36 and the investment banker and financial services provider is likely to cut as much as 8% of its workforce in January, according to a CNBC quoting anonymous source.
- Bridgette Randall
- 16 Dec, 2022
- Frankfurt
European markets closed lower on Friday as fears of global slowdown and higher rates overwhelmed the market sentiment.
European markets declined as much as 1% and extended weekly loss to over 3% and dropped to one-month on the worries of economic slowdown.
The consistent reinforcement of inflation-fight messages from central bankers are rattling markets.
Investors are growing anxious that central banks in their fights to bring down sky-high inflation may dip the global economy into a recession and also stall labor markets.
The DAX index declined 0.7% to 13,893.06, the CAC-40 index dropped 1.1% to 6,453.62 and the FTSE 100 index dropped 1.3% to 7,332.16.
For the week, the DAX index declined 2.7%, the CAC index dropped 1.9% and the FTSE 100 index eased 0.25%. Major averages fell for the second week in a row.
The yield on German Bunds closed at 2.14%, French bonds at 2.66%, the U.K. Gilts at 3.35% and Italian bonds at 4.32%.
The euro edged down to $1.60 and the British pound inched lower to $1.217.
Commodities and Oil Face Recession Headwinds
Oil futures declined 2% and extended three-week slide as recession worries dominated market sentiment. Brent crude in London fell to $79 and WTI crude in New York dropped to $74 a barrel.
In New York trading, West Texas Intermediate crude oil declined $2.59 to $73.49 a barrel and natural gas futures eased 50 cents to $6.46 a thermal unit.
In London trading Brent crude oil fell $204 to $79.16 a barrel and Dutch TTF natural gas price plunged 10.1% to
- Scott Peters
- 16 Dec, 2022
- New York City
Maxar Technologies Inc soared 122% to $51.40 after the space infrastructure company agreed to go private in a all-cash deal worth $6.4 billion led by Advent International.
Under the terms of the agreement, which has been unanimously approved by Maxar
- Scott Peters
- 16 Dec, 2022
- New York City
Goldman Sachs Group declined 1.1% to $345.94 and the investment banker and financial services provider is likely to cut as much as 8% of its workforce in January, according to a CNBC quoting anonymous source.
- Barry Adams
- 16 Dec, 2022
- New York City
Stocks on Wall Street traded lower on Friday as recession worries forced investors to reevaluate stock prices and future earnings growth outlook.
Investors have been rooting for a soft landing narrative on the hopes that the Federal Reserve may slow or even pause aggressive rate hikes after multiple increases this year.
However the soft-landing narrative has been facing headwinds with weak economic data on retail sales and housing market.
The S&P is set to fall at least 1% this week and extend weekly losses for the second week in a row.
Stocks and market indexes are expected to be volatile as $2.6 trillion of index options are scheduled to expire today, according to a report from Goldman Sachs.
The S&P 500 index declined 1.1% to 3,856.25 and the Nasdaq Composite index dropped 0.6% to 11,278.0.
Commodities and Oil Face Recession Headwinds
Oil futures declined 2% and extended three-week slide as recession worries dominated market sentiment. Brent crude in London fell to $79 and WTI crude in New York dropped to $74 a barrel.
Crude oil declined $2.59 to $73.49 a barrel and natural gas futures eased 50 cents to $6.46 a thermal unit.
Bond Yield Curve Stay Inverted
Treasury yields advanced on Friday a day after the release of weaker-than-expected November retail sales and fears of recession mounted in financial markets.
On Wednesday Fed Chairman Jerome Powell reiterated the central bank's commitment to fight high inflation and continue an aggressive rate hike campaign.
The yield on 2-year Treasury notes inched up to 4.30%, 10-year Treasury notes jumped to 3.54% and 30-year U.S. Treasury bonds advanced to 3.59%.
U.S. Stock Movers
Goldman Sachs Group declined 1.1% to $345.94 and the investment banker and financial services provider is likely to cut as much as 8% of its workforce in January, according to a CNBC quoting anonymous source.