- Barry Adams
- 17 Feb, 2023
- New York City
Falling energy prices and worries of rising rates drove market sentiment on the final day this week.
On the light day but busy week of corporate earnings releases, market sentiment swung between resilient consumer spending and weakening corporate earnings outlook.
Tight labor market conditions are supporting consumer spending despite the eight interest rate increases over the last twelve months.
But, higher rates have a lagging impact on the broader economy and so far the rate hikes of more than 400 basis points have failed to dampen consumer demand.
Moreover, the supply chain issues that drove consumer price inflation to a 4-decade high in 2020 and 2021 are not the drivers of inflation as price increases have seeped into the services sector which dominates the economy.
Energy sector stocks led the decliners in Friday's trading after crude oil prices neared the pre-Ukraine war levels and natural gas prices dropped near a 30-month low.
U.S. Markets
Benchmark indexes opened lower and dropped to the low by midday but indexes managed to trim losses as the market weakness failed to broaden beyond tech and energy sectors.
The S&P 500 index decreased 0.3% to 4,079.22 and the Nasdaq Composite index declined 0.6% to 11,787.27.
For the week, the S&P 500 index declined 0.8% and the Nasdaq Composite index eased 0.2%.
Year-to-date, the S&P 500 index has gained 6.6% and the Nasdaq Composite index has advanced 13.5%.
The yield on 2-year Treasury notes increased to 4.62%, 10-year Treasury notes edged lower to 3.81% and 30-year Treasury bonds closed down at 3.87%.
Natural gas prices closed down below $2.30 a unit and fell to the low last seen in September 2020 amid weak demand on warmer-than-usual weather and elevated supplies.
Natural gas prices in Europe also traded near 18-month low on falling demand after warmer weather conditions eased energy crisis in the region.
Crude oil declined $2.11 to $76.37 a barrel and natural gas futures for immediate month delivery fell 11 cents or 4.7% to 11,787.272.27 a thermal unit.
U.S. Movers
AutoNation Inc increased 9.5% to $154.90 after the automobile dealer reported better-than-expected sales of new vehicles.
AutoNation said fourth quarter revenue decreased 2% to $6.7 billion and net income declined 26% to $286.4 million from $ 387.1 million and diluted earnings per share declined to $5.72 from $5.87 a year ago.
In the quarter, new vehicle unit sales increased 4% to 60,074 and used vehicle sales declined 9% to 67,608.
Deere & Company increased 5.9% to $426.89 after quarterly income more than doubled.
Deere & Company said revenue in the fiscal first quarter ending in January increased 32% to $12.6 billion and net income jumped 117% to $1.95 billion from $903 million and diluted earnings per share rose to $6.55 from $2.92 a year ago.
DoorDash Inc declined 5.9% to $62.94 after the delivery service provider said quarterly loss expanded.
DoorDash said revenue in the fourth quarter increased 38% to $1.8 billion and net loss expanded to $659 million from $157 million and diluted loss per share increased to $1.65 from 45 cents a year ago.
In 2022, revenue increased 34.6% $6.6 billion from $4.9 billion and net loss increased to $1.4 billion from $468 million or $3.68 from $1.39 a share.
Hyatt Hotels Corporation declined 2.4% to $114.10 after the hotel and resorts operator reported weaker-than-expected quarterly earnings.
Hyatt Hotels said revenue in the fourth quarter increased 49% to $1.59 billion and the hotel operator swung to a profit of $294 million from a loss of $29 million and diluted EPS was $2.74 from ($0.26) a year ago.
In 2022, revenue increased 97% to $5.9 billion from $3.0 billion and swung to a profit of $455 million from a loss of $222 million or $4.09 from ($2.13) a share a year ago.
By the end of 2022, the company had a pipeline of approximately 580 hotels with 117,000 rooms.
European Markets Extend Weekly Advances
European markets faced headwinds but managed to trim losses after stronger corporate results provided support for riskier assets.
Benchmark indexes were under pressure after two Federal Reserve officials called for strong rate hikes at the next policy meetings in March after wholesale inflation and retail sales were ahead of expectations.
Loretta Mester and James Bullard supported the case for a larger rate increase of 50 basis points.
Investors stepped up stock exposure after banks, insurance and industrial companies and logistics and transportation companies generally reported better-than-expected results.
Investors also reviewed the latest earnings from Allianz SE, Daimler Benz AG, NatWest, SEGRO and Air France KLM.
For the week the DAX index gained 1%, the CAC-40 index advanced 2.6% and the FTSE 100 index rose 1.5%.
Weaker Energy Prices Drag German PPI Down to 17-month Low
Germany's producer price index decreased for the fourth month in a row and declined to the level last seen 17 months after natural gas prices steadily declined.
The producer price index eased to 17.8% in January from 21.2% in December, data from Destatis or Federal Statistics Office showed Friday.
The latest inflation rate was the weakest since August 2021, when prices had rose 14.2% from a year ago.
French Consumer Inflation In January Reaffirmed
Consumer price inflation in January rose slightly as previously estimated, the final data from the statistics office INSEE showed Friday.
Consumer price index increased 6.0% from a year ago in January after rising 5.9% in December, matching the previous estimate released on January 31.
Energy price inflation accelerated to 16.3% in January from 15.1% in December and food prices rose 13.3% from 12.1%.
Promotions Drove UK Retail Sales Rebound In January
UK retail sales unexpectedly increased 0.5% in January from the previous month driven by sales promotion, the Office for National Statistics reported Friday.
January sales rose following a 1.2% decline in December and 0.6% fall in November after promotions brought back consumers to stores.
Excluding auto fuel, retail sales rose 0.4%, reversing 1.4% decline in December.
Swiss Industrial Production Expands In Q4
Swiss industrial production expanded in the fourth quarter at a slightly faster pace than in the third quarter, Federal Statistics Office data showed Friday.
Industrial production increased 6.0% in the final quarter of 2022 from 5.9% in the third quarter.
Manufacturing sector expanded 7.9%, while the mining and quarrying segment shrank 3.0% and electricity supply declined 10.3%.
Europe Markets Review
The DAX index fell 0.3% to 15,482.00, the CAC-index declined 0.3% to 7,347.72 and the FTSE 100 index eased 0.1% 8,004.36.
The euro inched higher to $1.068, the British pound edged up to $1.202 and the Swiss franc traded near 92.56 U.S. cents.
The yield on 10-year German Bunds increased to 2.43%, French bonds closed down at 2.89%, the UK Gilts at 3.50% and Italian bonds at 4.27%.
Brent crude oil declined $2.90 to $82.21 a barrel and the Dutch TTF natural gas futures dropped to Є49.40 per MWh.
Europe Movers
Allianz SE declined 1.9% to €216.95 after the insurance and asset management group reported a decline in its assets under management and in non-life operations.
Daimler Benz Group AG increased 2.4% to €74.64 after the vehicle maker reported better-than-expected financial results and said it plans to repurchase Є4 billion of its stocks over the next two years.
Sika AG increased 4.9% to Sfr276.90 after the Swiss chemical company reported fiscal year 2022 net income increased 11%.
Swiss Re AG was nearly unchanged at 96.14 after the Swiss reinsurance group reported a decline in fiscal 2022 earnings.
Air France KLM SA increased 5.3% to €1.76 after the French-Dutch airline forecasted higher margin and strong bookings in 2023.
NatWest Group Plc declined 6.5% to 285.62 pence despite the British bank reporting stronger operating results in 2022.
SEGRO PLC increased 0.9% to 843.57 pence after the UK-based warehouse company reported a rebound in operating results in 2022.
Smith & Nephew Plc declined 0.2% to 1,154.93 pence after the UK-based prosthetic devices maker nominated a new chairman.
Asian markets fell across the region on the worries of higher U.S. interest rates inflicting another round of currency devaluation in the region.
Benchmark indexes fell after two U.S. Federal Reserve officials called for strong rate hikes at the next policy meetings in March after wholesale inflation and retail sales were ahead of expectations.
Loretta Mester and James Bullard supported the case for a larger rate increase of 50 basis points.
Stocks in Japan closed lower on the uncertainties about the future direction of the Bank of Japan's yield curve control policy.
Softbank led the decliners after tech stocks faced renewed selling following the prospect of larger increases in interest rates in the U.S.
Mainland China and Hong Kong stocks declined on the weakness in tech stocks and home builders.
For the week, the Nikkei edged down 0.6%, the Shanghai Composite declined 1.1%, the Hang Seng index dropped 2.2% and the Nifty and the Sensex indexes rose 0.6%.
China's New Home Prices Extend Losses to 9th Month
New home prices in China declined for the ninth month in a row after buyers stayed away from new purchases, the National Bureau of Statistics reported Friday.
The average price of a new home in 70 large and medium sized cities declined 1.5% from a year ago in January, matching the rate in December.
Home prices in January increased 0.1% from the previous month, the first rise in a year.
Singapore's International Trade Shrank On Weak Global Demands
Singapore's non-oil exports declined for the fourth month in a row in January, Enterprise Singapore said in a report Friday.
Non-oil exports declined 25% in January, larger than the 20.6% fall in November, the government data showed.
Exports declined 9.3% and imports fell 11.7% in January, resulting in a 10.4% decline in total international trade. volume.
Asian Markets Review
The Nikkei 225 index fell 0.7% to 27,513.13 and the yen declined to 134.18 against the U.S. dollar.
The Shanghai Composite index fell 0.7% to 3,224.02 and the Hang Seng index declined 1.3% to 20,719.81.
The Sensex index decreased 0.5% or 316.94 points to 20,719.81 and the Nifty index declined 0.5% or 91.65 to 17,944.20.
The Indian rupee weakened to 82.72 against the U.S. dollar and the yield on 10-year Indian government bonds traded near 7.34%.
Asia Movers
Tech stocks led the decliners in Tokyo trading.
Advantest Corp fell 1.7% to ¥10,050.0, Tokyo Electron Ltd declined 1.7% to ¥46,190.0 and Screen Holdings dropped 1.7% to ¥10,290.0.
China Renaissance Holdings Ltd plunged 28% after the company said it is not able to contact its chief executive office and the controlling shareholder Bao Fan.
Samsung Electronics, LG Energy Solution and Samsung SDI fell between 2% and 4%. after the Kospi index in Seoul decreased 1% to 2,451.21.
Adani Enterprises Ltd declined 4.5% to ₹1,719.0 and extended year-to-date losses by 55% following a negative report from the U.S.-based short seller Hindenburg Research.
- Arjun Pandit
- 17 Feb, 2023
- Mumbai
Asian markets fell across the region on the worries of higher U.S. interest rates inflicting another round of currency devaluation in the region.
Benchmark indexes fell after two U.S. Federal Reserve officials called for strong rate hikes at the next policy meetings in March after wholesale inflation and retail sales were ahead of expectations.
Loretta Mester and James Bullard supported the case for a larger rate increase of 50 basis points.
Stocks in Japan closed lower on the uncertainties about the future direction of the Bank of Japan's yield curve control policy.
Softbank led the decliners after tech stocks faced renewed selling following the prospect of larger increases in interest rates in the U.S.
Mainland China and Hong Kong stocks declined on the weakness in tech stocks and home builders.
For the week, the Nikkei edged down 0.6%, the Shanghai Composite declined 1.1%, the Hang Seng index dropped 2.2% and the Nifty and the Sensex indexes rose 0.6%.
China's New Home Prices Extend Losses to 9th Month
New home prices in China declined for the ninth month in a row after buyers stayed away from new purchases, the National Bureau of Statistics reported Friday.
The average price of a new home in 70 large and medium sized cities declined 1.5% from a year ago in January, matching the rate in December.
Home prices in January increased 0.1% from the previous month, the first rise in a year.
Singapore's International Trade Shrank On Weak Global Demands
Singapore's non-oil exports declined for the fourth month in a row in January, Enterprise Singapore said in a report Friday.
Non-oil exports declined 25% in January, larger than the 20.6% fall in November, the government data showed.
Exports declined 9.3% and imports fell 11.7% in January, resulting in a 10.4% decline in total international trade. volume.
Asian Markets Review
The Nikkei 225 index fell 0.7% to 27,513.13 and the yen declined to 134.18 against the U.S. dollar.
The Shanghai Composite index fell 0.7% to 3,224.02 and the Hang Seng index declined 1.3% to 20,719.81.
The Sensex index decreased 0.5% or 316.94 points to 20,719.81 and the Nifty index declined 0.5% or 91.65 to 17,944.20.
The Indian rupee weakened to 82.72 against the U.S. dollar and the yield on 10-year Indian government bonds traded near 7.34%.
Asia Movers
Tech stocks led the decliners in Tokyo trading.
Advantest Corp fell 1.7% to ¥10,050.0, Tokyo Electron Ltd declined 1.7% to ¥46,190.0 and Screen Holdings dropped 1.7% to ¥10,290.0.
China Renaissance Holdings Ltd plunged 28% after the company said it is not able to contact its chief executive office and the controlling shareholder Bao Fan.
Samsung Electronics, LG Energy Solution and Samsung SDI fell between 2% and 4%. after the Kospi index in Seoul decreased 1% to 2,451.21.
Adani Enterprises Ltd declined 4.5% to ₹1,719.0 and extended year-to-date losses by 55% following a negative report from the U.S.-based short seller Hindenburg Research.
- Bridgette Randall
- 17 Feb, 2023
- Frankfurt
European markets faced headwinds but managed to trim losses after stronger corporate results provided support for riskier assets.
Benchmark indexes were under pressure after two Federal Reserve officials called for strong rate hikes at the next policy meetings in March after wholesale inflation and retail sales were ahead of expectations.
Loretta Mester and James Bullard supported the case for a larger rate increase of 50 basis points.
Investors stepped up stock exposure after banks, insurance and industrial companies and logistics and transportation companies generally reported better-than-expected results.
Investors also reviewed the latest earnings from Allianz SE, Daimler Benz AG, NatWest, SEGRO and Air France KLM.
For the week the DAX index gained 1%, the CAC-40 index advanced 2.6% and the FTSE 100 index rose 1.5%.
Weaker Energy Prices Drag German PPI Down to 17-month Low
Germany's producer price index decreased for the fourth month in a row and declined to the level last seen 17 months after natural gas prices steadily declined.
The producer price index eased to 17.8% in January from 21.2% in December, data from Destatis or Federal Statistics Office showed Friday.
The latest inflation rate was the weakest since August 2021, when prices had rose 14.2% from a year ago.
French Consumer Inflation In January Reaffirmed
Consumer price inflation in January rose slightly as previously estimated, the final data from the statistics office INSEE showed Friday.
Consumer price index increased 6.0% from a year ago in January after rising 5.9% in December, matching the previous estimate released on January 31.
Energy price inflation accelerated to 16.3% in January from 15.1% in December and food prices rose 13.3% from 12.1%.
Promotions Drove UK Retail Sales Rebound In January
UK retail sales unexpectedly increased 0.5% in January from the previous month driven by sales promotion, the Office for National Statistics reported Friday.
January sales rose following a 1.2% decline in December and 0.6% fall in November after promotions brought back consumers to stores.
Excluding auto fuel, retail sales rose 0.4%, reversing 1.4% decline in December.
Swiss Industrial Production Expands In Q4
Swiss industrial production expanded in the fourth quarter at a slightly faster pace than in the third quarter, Federal Statistics Office data showed Friday.
Industrial production increased 6.0% in the final quarter of 2022 from 5.9% in the third quarter.
Manufacturing sector expanded 7.9%, while the mining and quarrying segment shrank 3.0% and electricity supply declined 10.3%.
Europe Markets Review
The DAX index fell 0.3% to 15,482.00, the CAC-index declined 0.3% to 7,347.72 and the FTSE 100 index eased 0.1% 8,004.36.
The euro inched higher to $1.068, the British pound edged up to $1.202 and the Swiss franc traded near 92.56 U.S. cents.
The yield on 10-year German Bunds increased to 2.43%, French bonds closed down at 2.89%, the UK Gilts at 3.50% and Italian bonds at 4.27%.
Brent crude oil declined $2.90 to $82.21 a barrel and the Dutch TTF natural gas futures dropped to Є49.40 per MWh.
Europe Movers
Allianz SE declined 1.9% to €216.95 after the insurance and asset management group reported a decline in its assets under management and in non-life operations.
Daimler Benz Group AG increased 2.4% to €74.64 after the vehicle maker reported better-than-expected financial results and said it plans to repurchase Є4 billion of its stocks over the next two years.
Sika AG increased 4.9% to Sfr276.90 after the Swiss chemical company reported fiscal year 2022 net income increased 11%.
Swiss Re AG was nearly unchanged at 96.14 after the Swiss reinsurance group reported a decline in fiscal 2022 earnings.
Air France KLM SA increased 5.3% to €1.76 after the French-Dutch airline forecasted higher margin and strong bookings in 2023.
NatWest Group Plc declined 6.5% to 285.62 pence despite the British bank reporting stronger operating results in 2022.
SEGRO PLC increased 0.9% to 843.57 pence after the UK-based warehouse company reported a rebound in operating results in 2022.
Smith & Nephew Plc declined 0.2% to 1,154.93 pence after the UK-based prosthetic devices maker nominated a new chairman.
- Scott Peters
- 17 Feb, 2023
- New York City
AutoNation Inc increased 9.5% to $154.90 after the automobile dealer reported better-than-expected sales of new vehicles.
AutoNation said fourth quarter revenue decreased 2% to $6.7 billion and net income declined 26% to $286.4 million from $ 387.1 million and diluted earnings per share declined to $5.72 from $5.87 a year ago.
In the quarter, new vehicle unit sales increased 4% to 60,074 and used vehicle sales declined 9% to 67,608.
BJ's Restaurants Inc fell 3.3% to $33.49 after the casual restaurant chain operator reported mixed quarterly results.
BJ's Restaurants said fourth quarter revenue increased to $344 million and the company swung to a net income of $3.9 million from a loss of $4.7 million and diluted earnings per share was (17 cents) compared to 20 cents a year ago.
In 2022, revenue increased to $1.3 billion and net income increased to $4.1 million from a loss of $3.6 million or 17 cents compared to (16 cents) a share.
Chuy's Holdings Inc increased 8.5% to $36.79 after the Tex-Mex casual restaurant chain operator reported better-than-expected earnings.
Chuy's said revenue in the fourth quarter increased 5.5% to $104.1 million and net income plunged 58.3% to $2.5 million from $6.0 million and diluted EPS declined to 14 cents from 30 cents a year ago.
In 2022, Tex-Mex restaurant company's revenue increased 6.5% to $422.2 million and net income declined 44.5% to $20.9 million from $30.2 million or $1.11 from $1.50 a share a year ago.
Deere & Company increased 5.9% to $426.89 after quarterly income more than doubled.
Deere & Company said revenue in the fiscal first quarter ending in January increased 32% to $12.6 billion and net income jumped 117% to $1.95 billion from $903 million and diluted earnings per share rose to $6.55 from $2.92 a year ago.
DoorDash Inc declined 5.9% to $62.94 after the delivery service provider said quarterly loss expanded.
DoorDash said revenue in the fourth quarter increased 38% to $1.8 billion and net loss expanded to $659 million from $157 million and diluted loss per share increased to $1.65 from 45 cents a year ago.
In 2022, revenue increased 34.6% $6.6 billion from $4.9 billion and net loss increased to $1.4 billion from $468 million or $3.68 from $1.39 a share.
Dropbox Inc fell 9.6% to $21.65 after the company reported weak revenue growth and a decline in annual earnings adjusted for one-time tax benefit.
Dropbox said fourth quarter revenue increased 5.9% to s $598.8 million and net income increased 163% to $328.3 million from $124.6 million and diluted EPS rose to 93 cents from 32 cents a year ago.
In 2022, revenue increased to $2.3 billion from $2.2 billion and net income increased 65% to $553 million from $335.8 million or $1.52 from 85 cents a share a year ago.
Hyatt Hotels Corporation declined 2.4% to $114.10 after the hotel and resorts operator reported weaker-than-expected quarterly earnings.
Hyatt Hotels said revenue in the fourth quarter increased 49% to $1.59 billion and the hotel operator swung to a profit of $294 million from a loss of $29 million and diluted EPS was $2.74 from ($0.26) a year ago.
In 2022, revenue increased 97% to $5.9 billion from $3.0 billion and swung to a profit of $455 million from a loss of $222 million or $4.09 from ($2.13) a share a year ago.
In the fourth quarter, 57 new hotels with 10,784 rooms joined Hyatt's system, included 31 franchised hotels with 5,082 rooms, mainly in Germany, as part of Hyatt's agreement with Lindner Hotels & Resorts, 2 Secrets Impression Moxché, Hyatt Centric Ville-Marie Montréal, and Fuji Speedway Hotel and Grayson Hotel in New York City.
For the full-year 2022, 120 new hotels with 23,227 rooms) joined Hyatt's system with 48 properties (or 8,281 rooms) converted to a Hyatt brand.
By the end of 2022, the company had a pipeline of approximately 580 hotels with 117,000 rooms.
- Barry Adams
- 16 Feb, 2023
- New York City
Rate path worries resurfaced in the final hour of trading and market indexes accelerated declines after comments from a Federal Reserve official.
Stocks were under pressure in early trading after a measure of wholesale inflation jumped to a 7-month high.
The sharp increase in goods inflation overshadowed session's trading despite a mixed bag of earnings from corporations.
Market selloff intensified after comments from St Louis Federal Reserve President James Bullard.
Bullard said he supported a 50 basis points rate increase in the previous meeting and he will consider a similar rate hike at the next meeting in March.
Home builders were in focus after housing starts fell more than expected.
Despite the interest rate path worries, investors focused on the resilient consumer and tight labor market conditions but strongly worded comments from Bullard put financial markets on alert.
Housing Starts Declined 21% In January
Seasonally adjusted housing starts fell 4.5% from a month earlier to an annualized rate of 1.309 million, the lowest since June 2020.
Housing starts fell 21.4% from a year ago level of 1.66 million.
Building permits in January were at a seasonally adjusted annual rate of 1,339,000, 0.1% above the revised December rate of 1.33 million, but 27.3% below the January 2022 rate of 1.8 million.
Housing completions in January were at a seasonally adjusted annual rate of 1.4 million. 1.0% above the revised December estimate of 1.39 million and 12.8% up from a year ago.
U.S. Weekly Jobless Claims Eased
Weekly jobless claims fell to 194,000 in the week ending February 11, down from the, down from the previous week's revised level of 195,000, the U.S. Department of Labor said Thursday.
Wholesale Price Inflation Jumped to 7-month High
The producer price index, a measure of wholesale prices, in the U.S. rose more than expected in January, the U.S. Bureau of Labor Statistics said Thursday.
The Producer Price Index for final demand increased 0.7% in January from the previous month and advanced 6.0% in a year, the most in seven months.
Prices for final demand goods advanced 1.2%, and index for final demand services rose 0.4%.
Nearly one-third of the January advance in the index for final demand goods can be traced to prices for gasoline, which increased 6.2%.
U.S. Markets
The S&P 500 index fell 1.4% to 4,090.41 and the Nasdaq Composite index declined 1.8% to 11,855.83.
The yield on 2-year Treasury notes increased to 4.64%, 10-year Treasury notes to 3.87% and 30-year Treasury bonds to 3.92%.
Crude oil declined 58 cents to $77.96 a barrel and natural gas futures declined 4 cents to $2.40 a thermal unit.
European Markets Extended One-year Highs
European markets traded higher despite the inflation headwinds and investors reacted to domestic earnings.
Positive earnings in France, UK and Germany reiterated the Euro Area region's economic strength and investors overlooked the U.S. inflation worries.
Italy's Trade Balance In Surplus In December, Deficit In 2022
Italy's international trade balance swung to a surplus in December reversing the deficit in the month a year ago.
Trade balance swung to Є1.1 billion in December from Є1.5 billion in the month a year ago and declined from a surplus of Є1.4 billion in November, the data from Italian Statistics Office Istat showed Thursday.
In the year 2022, exports increased 19.9% (19.7% for EU countries and 20.2% for non-EU countries) and imports increased 36.5% (22.8% for EU countries and 54.4% for non-EU countries).
In the year 2022, the trade balance registered a deficit of Є31,0 billion compared to the surplus of Є40.3 billion the year earlier.
Excluding energy, the surplus was Є80.3 billion compared to Є88.7 billion in 2021.
Spain's Inflation Accelerated In January
Spain's inflation accelerated in January in the final estimate released by the statistics Office INE Wednesday.
Consumer price index increase was revised higher to 5.9% from the previous estimate of 5.8% and faster than 5.7% in December.
Higher Energy Prices Expands Spain's Trade Deficit In 2022
Spain's foreign trade deficit rose in December from November but fell from the corresponding month a year ago, the Economy Ministry data showed Thursday.
Trade deficit in December to Є4.51 billion from Є5.34 billion a year ago but rose from Є3.3 billion in November.
In 2022, total trade deficit surged to Є68.1 billion, sharply higher from Є26.2 billion in 2021.
Exports rose 22.9% and imports surged 33.4% in the full-year 2022.
European Markets
The DAX index index increased 0.2% to 15,533.64, the CAC-40 index rose 0.9% to 7,366.16 and the FTSE 100 index advanced 0.2% to 8,012.53.
The euro edged lower to $1.06, the British pound declined to $1.193 and the Swiss franc eased to 92.56 U.S. cents.
The yield on 10-year German Bunds increased to 2.49%, French bonds rose to 2.93%, the UK Gilts to 3.50% and Italian bonds to 4.32%.
Brent crude oil closed down 61 cents to $84.77 a barrel and the Dutch TTF Spot Price fell 5% to Є52.01 per MWh.
Europe Movers
Orange SA increased 6.2% to €10.62 after the mobile telephone service provider reported better-than-expected financial results.
Revenue in the fourth quarter increased 1.8% to €11.3 billion and in 2022 rose 2.2% to €43.4 billion. Consolidated net income totaled €2,6 billion from €778 million in 2021.
The company proposed a dividend of 70 euro cents a share and the board of directors will decide on the payment on May 23.
Kering SA increased 3.7% and extended gains for the second day to €596.70 after the luxury goods company reported higher earnings in 2022.
Commerzbank AG increased 11.6% to €11.50 after the German bank forecasted higher profit in the current year supported by rising rates.
Net interest income in fiscal year 2022 increased 33% to €6.46 billion and total revenue increased 12.0% to €9.4 billion from €8.5 billion a year ago.
Net income increased more than three-fold to €1.44 billion from €430 million a year ago.
The company also estimated net interest income in 2023 to rise above €6.5 billion.
The company said it plans to distribute €250 million or 20 euro cents a share to common shareholders after the annual meeting at the end of May.
Centrica PLC increased 5% to 103.45 pence after the electric utility services provider reported better-than-anticipated results.
Revenue in 2022 increased to £23.7 billion from £14.7 billion a year ago.
The company swung to a loss of £636 million compared to a profit of £1.2 billion a year ago.
The company proposed a final dividend of 2 pence per share in addition to interim dividend of 1 pence a share.
The company said adjusted earnings increased to £2.0 billion from £162 million or 34.2 pence from 2.80 pence a year ago.
Asian Markets Advanced After Investors Set Aside Rate Worries
Stocks traded higher in Asia following positive sentiment in international markets and the yen extended its two-week slide.
Stocks in Tokyo closed higher on the global optimism and following the new one-year highs in European markets and hopes of faster rebound in China.
Japan Record Trade Deficit In January
Japan's January trade deficit widened to a record high of ¥3,496.6 billion from ¥2,199.4 billion in the same month a year earlier.
Imports increased 17.8% ¥10,047.8 billion, the 21st monthly double-digit increase but rose at the slowest pace in 21 months.
Exports rose at a much slower pace of 3.5% ¥6,551.2 billion, the 23rd straight month of growth and the slowest pace since February 2021
Japan reported a trade deficit of ¥19,971.3 billion, the second straight annual shortfall and the largest since 1979 after the price of imported energy soared.
The yen drifted lower for the second week in a row after the release of record trade deficit data and on the uncertainties about the Bank of Japan's yield curve control policy and investors debated the need to exit from the ultra-loose monetary policy.
Japan's Trade Unions Look to Revive Wages from Three Decades of Stagnation
Trade unions and businesses kicked off their annual wage hike talks in Tokyo with the union representative looking for wages to rise as much as 5% in 2023.
The Japanese Trade Union Confederation or Rengo's President Tomoko Yoshino proposed a 3% base pay increase and additional 2% increase based on seniority.
Masakazu Tokura, chairman of the Japan Business Federation, showed an open attitude towards negotiating higher wages.
Real wages in Japan have stagnated for three decades and rose only 4.8% since 1991, lagging the 85% jump in South Korea and about 30% in Germany and France and 50% in the U.S. and U.K., according to the data available from the Organization for Economic Cooperation and Development or OECD based in Paris, France.
The Nikkei index increased 0.7% to 27,696.44 and the Yen edged lower to 133.83 against the yen.
Automakers led the gainers and Mitsubishi Motors Co Ltd and Nissan Motor Co Ltd gained 4.1% and Mazda Motor advanced 37%.
China Smartphone Sales Revival In January Lifts Hopes for 2023 Sales
Stocks in Mainland China and Hong Kong diverged after officials promised more stimulus.
Tech companies were in focus after domestic smartphone sales in China soared in January, lifting hopes that the industry may finally rebound after five years of declining sales.
Weekly sales of smartphones in China increased to 6.7 million units in January, 40% higher than in December but flat from the similar period in 2022, a report by Counterpoint Research showed the weekly trend.
Weekly smartphone sales in China averaged 5.5 million and dropped 13.5% to 285.5 million units in 2022, according to IDC.
In 2022, smartphone sales in China fell below 300 million units for the first time in a decade.
China is the largest market for smartphones in the world.
The Shanghai Composite index declined 1% to 3,249.03 and the Hang Seng index increased 0.9% to 20,987.67.
The Chinese yuan held steady with a downward bias to 6.895 against the U.S. dollar.
Hong Kong’s seasonally adjusted jobless rate declined to 3.4% in the three months ending January 2023, the lowest since the fourth quarter 2019 and from 3.5% in the previous three-month period ending in December.
India's Goods Trade Deficit and Services Surplus Expanded In January
Stocks in Mumbai opened higher but drifted lower after spending the day in the positive territory.
Tech services and real estate companies led gainers for the second day in a row.
The Sensex index increased 44.42 points to 61,319.51 and the Nifty index rose 20 points to 18,035.85.
The Indian rupee edged lower to 82.71 against the U.S. dollar after the U.S. dollar traded higher in the region.
On the economic front, India's exports declined in January to $32.9 billion from $35.2 billion a year and the goods trade deficit increased to $17.7 billion from $17.2 billion a year ago.
Overall goods and services exports increased to $65.1 billion from $56.8 billion and imports rose to $66.4 billion from $65.80 a year ago.
Overall international trade deficit shrank to $1.2 billion from $8.9 billion a year ago in January.
- Bridgette Randall
- 16 Feb, 2023
- Frankfurt
Orange SA increased 6.2% to €10.62 after the mobile telephone service provider reported better-than-expected financial results.
Revenue in the fourth quarter increased 1.8% to €11.3 billion and in 2022 rose 2.2% to €43.4 billion. Consolidated net income totaled €2,6 billion from €778 million in 2021.
The company proposed a dividend of 70 euro cents a share and the board of directors will decide on the payment on May 23.
Kering SA increased 3.7% and extended gains for the second day to €596.70 after the luxury goods company reported higher earnings in 2022.
Commerzbank AG increased 11.6% to €11.50 after the German bank forecasted higher profit in the current year supported by rising rates.
Net interest income in fiscal year 2022 increased 33% to €6.46 billion and total revenue increased 12.0% to €9.4 billion from €8.5 billion a year ago.
Net income increased more than three-fold to €1.44 billion from €430 million a year ago.
The company also estimated net interest income in 2023 to rise above €6.5 billion.
The company said it plans to distribute €250 million or 20 euro cents a share to common shareholders after the annual meeting at the end of May.
Centrica PLC increased 5% to 103.45 pence after the electric utility services provider reported better-than-anticipated results.
Revenue in 2022 increased to £23.7 billion from £14.7 billion a year ago.
The company swung to a loss of £636 million compared to a profit of £1.2 billion a year ago.
The company proposed a final dividend of 2 pence per share in addition to interim dividend of 1 pence a share.
The company said adjusted earnings increased to £2.0 billion from £162 million or 34.2 pence from 2.80 pence a year ago.
- Bridgette Randall
- 16 Feb, 2023
- Frankfurt
European markets traded higher despite the inflation headwinds and investors reacted to domestic earnings.
Positive earnings in France, UK and Germany reiterated the Euro Area region's economic strength and investors overlooked the U.S. inflation worries.
The producer price index, a measure of wholesale prices, in the U.S. rose more than expected in January, the U.S. Bureau of Labor Statistics said Thursday.
The Producer Price Index for final demand increased 0.7% in January from the previous month and advanced 6.0% in a year, the most in seven months.
Prices for final demand goods advanced 1.2%, and index for final demand services rose 0.4%.
Italy's Trade Balance In Surplus In December, Deficit In 2022
Italy's international trade balance swung to a surplus in December reversing the deficit in the month a year ago.
Trade balance swung to Є1.1 billion in December from Є1.5 billion in the month a year ago and declined from a surplus of Є1.4 billion in November, the data from Italian Statistics Office Istat showed Thursday.
In the year 2022, exports increased 19.9% (19.7% for EU countries and 20.2% for non-EU countries) and imports increased 36.5% (22.8% for EU countries and 54.4% for non-EU countries).
In the year 2022, the trade balance registered a deficit of Є31,0 billion compared to the surplus of Є40.3 billion the year earlier.
Excluding energy, the surplus was Є80.3 billion compared to Є88.7 billion in 2021.
Spain's Inflation Accelerated In January
Spain's inflation accelerated in January in the final estimate released by the statistics Office INE Wednesday.
Consumer price index increase was revised higher to 5.9% from the previous estimate of 5.8% and faster than 5.7% in December.
Higher Energy Prices Expands Spain's Trade Deficit In 2022
Spain's foreign trade deficit rose in December from November but fell from the corresponding month a year ago, the Economy Ministry data showed Thursday.
Trade deficit in December to Є4.51 billion from Є5.34 billion a year ago but rose from Є3.3 billion in November.
In 2022, total trade deficit surged to Є68.1 billion, sharply higher from Є26.2 billion in 2021.
Exports rose 22.9% and imports surged 33.4% in the full-year 2022.
European Markets
The DAX index index increased 0.2% to 15,533.64, the CAC-40 index rose 0.9% to 7,366.16 and the FTSE 100 index advanced 0.2% to 8,012.53.
The euro edged lower to $1.06, the British pound declined to $1.193 and the Swiss franc eased to 92.56 U.S. cents.
The yield on 10-year German Bunds increased to 2.49%, French bonds rose to 2.93%, the UK Gilts to 3.50% and Italian bonds to 4.32%.
Brent crude oil closed down 61 cents to $84.77 a barrel and the Dutch TTF Spot Price fell 5% to Є52.01 per MWh.
Europe Movers
Orange SA increased 6.2% to €10.62 after the mobile telephone service provider reported better-than-expected financial results.
Revenue in the fourth quarter increased 1.8% to €11.3 billion and in 2022 rose 2.2% to €43.4 billion. Consolidated net income totaled €2,6 billion from €778 million in 2021.
The company proposed a dividend of 70 euro cents a share and the board of directors will decide on the payment on May 23.
Kering SA increased 3.7% and extended gains for the second day to €596.70 after the luxury goods company reported higher earnings in 2022.
Commerzbank AG increased 11.6% to €11.50 after the German bank forecasted higher profit in the current year supported by rising rates.
Net interest income in fiscal year 2022 increased 33% to €6.46 billion and total revenue increased 12.0% to €9.4 billion from €8.5 billion a year ago.
Net income increased more than three-fold to €1.44 billion from €430 million a year ago.
The company also estimated net interest income in 2023 to rise above €6.5 billion.
The company said it plans to distribute €250 million or 20 euro cents a share to common shareholders after the annual meeting at the end of May.
Centrica PLC increased 5% to 103.45 pence after the electric utility services provider reported better-than-anticipated results.
Revenue in 2022 increased to £23.7 billion from £14.7 billion a year ago.
The company swung to a loss of £636 million compared to a profit of £1.2 billion a year ago.
The company proposed a final dividend of 2 pence per share in addition to interim dividend of 1 pence a share.
The company said adjusted earnings increased to £2.0 billion from £162 million or 34.2 pence from 2.80 pence a year ago.
- Arjun Pandit
- 16 Feb, 2023
- Mumbai
Stocks traded higher in Asia following positive sentiment in international markets and the yen extended its two-week slide.
Stocks in Tokyo closed higher on the global optimism and following the new one-year highs in European markets and hopes of faster rebound in China.
Japan Record Trade Deficit In January
Japan's January trade deficit widened to a record high of ¥3,496.6 billion from ¥2,199.4 billion in the same month a year earlier.
Imports increased 17.8% ¥10,047.8 billion, the 21st monthly double-digit increase but rose at the slowest pace in 21 months.
Exports rose at a much slower pace of 3.5% ¥6,551.2 billion, the 23rd straight month of growth and the slowest pace since February 2021
Japan reported a trade deficit of ¥19,971.3 billion, the second straight annual shortfall and the largest since 1979 after the price of imported energy soared.
The yen drifted lower for the second week in a row after the release of record trade deficit data and on the uncertainties about the Bank of Japan's yield curve control policy and investors debated the need to exit from the ultra-loose monetary policy.
Japan's Trade Unions Look to Revive Wages from Three Decades of Stagnation
Trade unions and businesses kicked off their annual wage hike talks in Tokyo with the union representative looking for wages to rise as much as 5% in 2023.
The Japanese Trade Union Confederation or Rengo's President Tomoko Yoshino proposed a 3% base pay increase and additional 2% increase based on seniority.
Masakazu Tokura, chairman of the Japan Business Federation, showed an open attitude towards negotiating higher wages.
Real wages in Japan have stagnated for three decades and rose only 4.8% since 1991, lagging the 85% jump in South Korea and about 30% in Germany and France and 50% in the U.S. and U.K., according to the data available from the Organisation for Economic Cooperation and Development or OECD based in Paris, France.
The Nikkei index increased 0.7% to 27,696.44 and the Yen edged lower to 133.83 against the yen.
Automakers led the gainers and Mitsubishi Motors Co Ltd and Nissan Motor Co Ltd gained 4.1% and Mazda Motor advanced 37%.
China Smartphone Sales Revival In January Lifts Hopes for 2023 Sales
Stocks in Mainland China and Hong Kong diverged after officials promised more stimulus.
Tech companies were in focus after domestic smartphone sales in China soared in January, lifting hopes that the industry may finally rebound after five years of declining sales.
Weekly sales of smartphones in China increased to 6.7 million units in January, 40% higher than in December but flat from the similar period in 2022, a report by Counterpoint Research showed the weekly trend.
Weekly smartphone sales in China averaged 5.5 million and dropped 13.5% to 285.5 million units in 2022, according to IDC.
In 2022, smartphone sales in China fell below 300 million units for the first time in a decade.
China is the largest market for smartphones in the world.
The Shanghai Composite index declined 1% to 3,249.03 and the Hang Seng index increased 0.9% to 20,987.67.
The Chinese yuan held steady with a downward bias to 6.895 against the U.S. dollar.
Hong Kong’s seasonally adjusted jobless rate declined to 3.4% in the three months ending January 2023, the lowest since the fourth quarter 2019 and from 3.5% in the previous three-month period ending in December.
India's Services Surplus Expanded Faster Than Good Deficit In January
Stocks in Mumbai opened higher but drifted lower after spending the day in the positive territory.
Tech services and real estate companies led gainers for the second day in a row.
The Sensex index increased 44.42 points to 61,319.51 and the Nifty index rose 20 points to 18,035.85.
The Indian rupee edged lower to 82.71 against the U.S. dollar after the U.S. dollar traded higher in the region.
On the economic front, India's exports declined in January to $32.9 billion from $35.2 billion a year and the goods trade deficit increased to $17.7 billion from $17.2 billion a year ago.
Overall goods and services exports increased to $65.1 billion from $56.8 billion and imports rose to $66.4 billion from $65.80 a year ago.
Overall international trade deficit shrank to $1.2 billion from $8.9 billion a year ago in January.