- Barry Adams
- 17 Jan, 2023
- New York City
U.S. stocks struggled and investors weighed the latest earnings and looked ahead for economic growth drivers.
Investors focused on the latest corporate earnings and international news dominated the news cycle.
Goldman Sachs said fourth quarter earnings plunged but Morgan Stanley earnings were ahead of expectations after wealth management provided stability in earnings.
Investors also digested the latest report from the OPEC indicating a demand recovery of oil 2023.
Moreover, China reported a sharp slowdown in economic growth in the fourth quarter and in 2022 on the account of zero-covid policy.
The economic growth fell to the lowest level in nearly five decades after retail sales and industrial production declined.
Three years of lockdowns in China have devastated most small businesses and several medium sized businesses in retail, construction and manufacturing are struggling to survive.
With little support from the central or regional governments, Chinese businesses are facing severe financial liquidity crunch and shortage of workers.
U.S. Indexes Lack Direction
Benchmark indexes on Wall Street struggled to get traction ahead of the pick up in earnings season.
The S&P 500 index declined 8.12 points to 3,990.97 and the Nasdaq Composite index increased 15.16 points to 11,095.11.
Demand Recovery Hope Lifts Oil Price
Crude oil prices advanced to the highest level since early December after OPEC said oil demand is expected to rise 2.2% to 22.2 million barrels a day on the hopes of economic recovery in advanced economies and rising demand from China.
"US crude imports followed seasonal trends, falling to an eight-month low of 6.2 mb/d in December.
US crude exports remained above 4 mb/d for the third-consecutive month.
US product flows were broadly steady, despite a cold wave that shut-in US refineries and disrupted travel," noted the report.
Crude oil price increased $2.15 to $80.96 a barrel and natural gas immediate month futures contract price rose 2 cents to $3.64 a thermal unit.
Treasury Yields Hover Near 4-month Low
The yield on 2-year Treasury notes increased to 4.20%, 10-year Treasury notes inched higher to 3.55% and 30-year Treasury bonds inched up to 3.66%.
U.S. Stock Movers
Goldman Sachs fell 2.4% to $365.11 after the financial services provider reported a sharp decline in revenues and earnings.
Goldman Sachs said fourth quarter revenue fell 16% from a year ago to $10.6 billion and net income plunged to $1.2 billion from $3.8 billion or diluted EPS fell to $3.32 from $10.81 from a year ago.
Morgan Stanley rose 5.4% to $96.37 after the financial services provider reported better-than-expected quarterly results.
Fourth quarter revenue fell to $12.7 billion from $14.5 billion a year ago and diluted earnings per share dropped to $2.2 billion from $3.7 billion or $1.26 from $2.01 a year ago.
United Airlines fell 0.9% to $51.20 in the regulator trading session and advanced 3% to $52.76 in the after-hours trading after the airline reported higher-than-expected revenues on the resilient demand despite higher fares.
After the market closed, United Air said fourth quarter revenue increased to $11.2 billion from $8.2 billion a year ago.
The airline swung to a net income of $840 million from a loss of $646 million and diluted earnings per share was $2.55 compared to a loss of $1.99 a year ago.
The airline also estimated revenue in the first quarter 2023 ending in March to increase 50% from the previous year and earnings per share between 50 cent and 51 cents.
Whirlpool Sells Europe Business
Whirlpool Corporation increased 2.2% to $157.70 after the household equipment maker said it plans to sell its Europe, Middle East and Africa business and form a partnership with Turkey-based Arcelik AS.
Whirlpool will contribute its European domestic appliance business, and Arcelik will contribute its domestic appliance, consumer electronics, air conditioning, and small domestic appliance businesses into the newly formed entity.
Whirlpool will own 25% and Arcelik 75% of the newly formed company and Arcelik will retain full-ownership of its Turkish business.
European Investors Look to China for Growth
European markets edged lower but hovered near 11-month highs after oil, gas and mining stocks advanced following the hopes of demand recovery in advanced economies and in China.
Stocks in Paris struggled after luxury stocks fell on the worries of China's economic growth.
China Reported Second Weakest Annual GDP Growth In Five Decades
China reported its worst economic growth in nearly five decades in 2022 after zero-Covid policy dampened economic activities despite record trade surplus in the year.
China's GDP growth in the fourth quarter 2022 slowed to 2.9% from 3.9% in the third quarter.
On a quarterly basis, the economy was flat after expanding at 3.9% in the previous three months to September.
For the full-year 2022, the economy expanded at 3%, the slowest pace since 1976 excluding 2.2% advance in 2020 during the onset of the coronavirus pandemic.
Retail sales declined 1.8% from a year ago in December and fell 0.2% in full-year 2022.
Industrial production increased 3.6% in full-year 2022 and advanced 1.3%.
European Indexes Hovered Near 11-month Highs
The DAX index fell 9.4 points to 15,124.66, the CAC-40 index was nearly unchanged at 7,043.77 and the FTSE 100 index fell 0.1% to 7,850.83.
The euro traded higher at $1.085, the British pound edged higher to $1.227 and the Swiss franc inched lower to 91.96 U.S. cents.
Energy Prices Trade Higher In Europe
Energy prices rose in Europe following the optimistic report from OPEC.
"Preliminary figures show crude imports into OECD Europe remaining at healthy levels through the end of the year, despite imports of Russian crude falling to near zero excluding flows to Turkey.
OECD Europe product imports are also seen to be higher in anticipation of the impending February sanctions on Russian oil product imports," the report from the OPEC highlighted.
Brent crude oil rose $1.94 to $86.32 a barrel and the Dutch TTF natural gas futures price rose 5% to €58.63 per MWh.
The yield on 10-year German Bunds traded lower to 2.16%, French bonds declined to 2.63%, UK Gilts to 3.40% and Italian bonds inched higher to 4.002%.
Europe Stock Movers
Nordex SE closed nearly unchanged at €14.76 after the Germany-based wind turbine maker reported a fall in orders in the fourth quarter and in 2022.
In the fourth quarter, the company received orders for 386 wind turbines compared to 678 with a total output of 1.9 GW compared to 3.3 GW a year ago.
The average sales price in euros per megawatt of capacity soared to €0.89 million/MW compared to €0.74 million/MW a year ago.
Hugo Boss AG declined 2% to €59.44 after the luxury fashion designer said preliminary sales in the fourth quarter rose 18% to €1.07 billion from €905 million a year ago.
Hays Plc increased 2.2% to 121.76 pence after the recruiting company reported an increase in its fiscal second quarter fees.
Net fees in the December quarter increased 11% or rose 8% on a comparable basis, driven by a 25% jump in revenue in Germany.
The recruitment agency reiterated its operating earnings estimate for the first-half between £95 million and £97 million.
THG plc plunged 8.7% to 62.50 pence after the online retailer of cosmetics and dietary supplements reported weaker-than-expected full-year sales.
2022 revenue increased 4.1% to £2.25 billion after combined revenue in its beauty and nutrition divisions rose 9.4% from a year ago.
"A dedicated focus on high-margin categories and relatively low maintenance capital expenditure supports the Group's expectation of being broadly free cash flow neutral in FY 2023, and significantly free cash flow positive in FY 2024," the company said in its trading statement.
Ocado Group Plc declined 9.2% to 733.0 pence after the online retail platform in partnership with Marks & Spencer estimated sales growth "in mid-single-digits" in 2023.
Japan Awaits Rate Decision
Stocks in Japan rebounded, after two days of heavy losses, ahead of the Bank of Japan's decision tomorrow after the conclusion of a two-day policy meeting.
The Nikkei 225 average advanced 1.2% to 26,138.68 and the yen traded near 128.70 against the U.S. dollar after the Japanese government bond yields rose above the upper limit set by the Bank of Japan for the third day in a row.
China's GDP Growth Slows to Near 5-decade Low
Stocks in Shanghai traded nearly unchanged after the statistics bureau reported weakest economic growth in about 45 years.
China's GDP growth in the fourth quarter 2022 slowed to 2.9% from 3.9% in the third quarter.
For the full-year 2022, the economy expanded at 3%, the slowest pace since 1976 excluding 2.2% advance in 2020 during the onset of the coronavirus pandemic.
Retail sales declined 1.8% from a year ago in December and fell 0.2% in full-year 2022.
Industrial production increased 3.6% in full-year 2022 and advanced 1.3%.
The Shanghai Composite index decreased 0.1% to 3,224.24 and the Hang Seng index fell 0.8% to 21,577.64.
China Population Shrinks
China's population shrank for the first time in decades and the working population ratio declined, adding pressure on policymakers to find ways to improve productivity and expand the safety net.
The Chinese government said deaths outnumbered births in 2022 and the elderly population increased.
Total number of births declined to 9.56 million in 2022 from 10.62 million in 2021 and deaths increased to 10.41 in 2022 from 10.1 million in 2021, the National Bureau of Statistics said in a report Tuesday.
Total births declined for the sixth year in a row.
China's elderly population, those 60 years of age and older, expanded by 13 million to 280 million or one fifth of its 1.4 billion population.
India Stocks Rebound After Two Days of Losses
The Sensex index advanced 0.9% to 60,655.72 and the rupee held at 81.57 against the U.S. dollar in international trading.
Investors bid up stocks focused on the domestic economy in cautious trading after the international price of crude oil advanced, stoking fears of higher inflation.
- Scott Peters
- 17 Jan, 2023
- New York City
Cheesecake Factory fell 1.2% to $38.06 after the casual restaurant operator was downgraded by Citigroup to "neutral" from "buy" citing the stock is trading near its target price.
Goldman Sachs Group Inc fell 6.3% to $350.37 after the financial services provider reported a sharp decline in revenue and earnings.
Goldman Sachs said fourth quarter revenue fell 16% from a year ago to $10.6 billion and net income plunged to $1.2 billion from $3.8 billion or diluted EPS fell to $3.32 from $10.81 from a year ago.
Hugo Boss AG ADR decreased 2.4% to $12.89 after the fashion brand retailer said its fourth quarter revenue exceeded one billion euros for the first time.
Preliminary sales in the fourth quarter rose 18% to €1.07 billion from €905 million a year ago.
Morgan Stanley rose 6.2% to $97.35 after the financial services provider reported better-than-expected quarterly results.
Fourth quarter revenue fell to $12.7 billion from $14.5 billion a year ago and diluted earnings per share dropped to $2.2 billion from $3.7 billion or $1.26 from $2.01 a year ago.
Wealth Management unit reported record full year net revenues of $24.4 billion and a pre-tax margin of 27.0% or 28.4% excluding integration-related expenses.
The business added net new assets of $311 billion, representing a full year 6% annualized growth rate.
Roblox Corp soared 12.4% to $37.34 after the online gaming company released its estimated December sales, called bookings by the company,
The company estimated December gross bookings or sales between $430 million and $439 million, an increase between 17% and 20% from a year ago.
December month revenue between $189 million and $199 million, a decline between 1% and 6% from a year ago.
Daily active users in December increased 18% from a year ago to 61.5 million.
Vodafone Group Plc rose 2.0% to $11.46 after telecom authority in Ghana approved the company's 70% stake sale in Vodafone Ghana to Telecel Group after the company submitted a revised financial proposal.
Telecel plans to spend about $500 million in the first three years to expand and refinance Vodafone’s network across the country.
Vodafone acquired 70% stake in Ghana Telecommunications Co in 2008 when it paid the government $900 million.
The Ghanaian government will retain its 30% stake in the business.
Whirlpool Corporation increased 0.2% to $154.58 after the household equipment maker said it plans to sell its Europe, Middle East and Africa business and form a partnership with Turkey-based Arcelik AS.
Whirlpool will contribute its European domestic appliance business, and Arcelik will contribute its domestic appliance, consumer electronics, air conditioning, and small domestic appliance businesses into the newly formed entity.
Whirlpool will own 25% and Arcelik 75% of the newly formed company and Arcelik will retain full-ownership of its Turkish business.
- Scott Peters
- 17 Jan, 2023
- New York City
Whirlpool Corporation increased 2.2% to $157.70 in New York trading after the household equipment maker said it plans to sell its Europe, Middle East and Africa business and form a partnership with Turkey-based Arcelik AS.
Whirlpool will contribute its European domestic appliance business, and Arcelik will contribute its domestic appliance, consumer electronics, air conditioning, and small domestic appliance businesses into the newly formed entity.
Whirlpool will own 25% and Arcelik 75% of the newly formed company and Arcelik will retain full-ownership of its Turkish business.
- Bridgette Randall
- 17 Jan, 2023
- Frankfurt
Nordex SE closed nearly unchanged at €14.76 after the Germany-based wind turbines maker reported a fall in orders in the fourth quarter and in 2022.
In the fourth quarter, the company received orders for 386 wind turbine compared to 678 with a total output of 1.9 GW compared to 3.3 GW a year ago.
The average sales price in euros per megawatt of capacity soared to €0.89 million/MW compared to €0.74 million/MW a year ago.
Hugo Boss AG declined 2% to €59.44 after the luxury fashion designer said preliminary sales in the fourth quarter rose 18% to €1.07 billion from €905 million a year ago.
Hays Plc increased 2.2% to 121.76 pence after the recruiting company reported an increase in its fiscal second quarter fees.
Net fees in the December quarter increased 11% or rose 8% on a comparable basis, driven by a 25% jump in revenue in Germany.
The recruitment agency reiterated its operating earnings estimate for the first-half between £95 million and £97 million.
THG plc plunged 8.7% to 62.50 pence after the online retailer of cosmetics and dietary supplements reported weaker-than-expected full-year sales.
2022 revenue increased 4.1% to £2.25 billion after combined revenue in its beauty and nutrition divisions rose 9.4% from a year ago.
"A dedicated focus on high-margin categories and relatively low maintenance capital expenditure supports the Group's expectation of being broadly free cash flow neutral in FY 2023, and significantly free cash flow positive in FY 2024," the company said in its trading statement.
Ocado Group Plc declined 9.2% to 733.0 pence after the online retail platform in partnership with Marks & Spencer estimated sales growth "in mid-single-digits" in 2023.
Whirlpool Sells Europe Business
Whirlpool Corporation increased 2.2% to $157.70 in New York trading after the household equipment maker said it plans to sell its Europe, Middle East and Africa business and form a partnership with Turkey-based Arcelik AS.
Whirlpool will contribute its European domestic appliance business, and Arcelik will contribute its domestic appliance, consumer electronics, air conditioning, and small domestic appliance businesses into the newly formed entity.
Whirlpool will own 25% and Arcelik 75% of the newly formed company and Arcelik will retain full-ownership of its Turkish business.
- Bridgette Randall
- 17 Jan, 2023
- Frankfurt
European markets edged lower but hovered near 11-month highs after oil, gas and mining stocks advanced following the hopes of demand recovery in advanced economies and in China.
Stocks in Paris struggled after luxury stocks fell on the worries of China's economic growth.
China Reported Second Weakest Annual GDP Growth In Five Decades
China reported its worst economic growth in nearly five decades in 2022 after zero-Covid policy dampened economic activities despite record trade surplus in the year.
China's GDP growth in the fourth quarter 2022 slowed to 2.9% from 3.9% in the third quarter.
On a quarterly basis, the economy was flat after expanding at 3.9% in the previous three months to September.
For the full-year 2022, the economy expanded at 3%, the slowest pace since 1976 excluding 2.2% advance in 2020 during the onset of the coronavirus pandemic.
Retail sales declined 1.8% from a year ago in December and fell 0.2% in full-year 2022.
Industrial production increased 3.6% in full-year 2022 and advanced 1.3%.
European Indexes Hovered Near 11-month Highs
The DAX index fell 9.4 points to 15,124.66, the CAC-40 index was nearly unchanged at 7,043.77 and the FTSE 100 index fell 0.1% to 7,850.83.
The euro traded higher at $1.085, the British pound edged higher to $1.227 and the Swiss franc inched lower to 91.96 U.S. cents.
Energy Prices Trade Higher In Europe
Energy prices rose in Europe following the optimistic report from OPEC.
"Preliminary figures show crude imports into OECD Europe remaining at healthy levels through the end of the year, despite imports of Russian crude falling to near zero excluding flows to Turkey.
OECD Europe product imports are also seen to be higher in anticipation of the impending February sanctions on Russian oil product imports," the report from the OPEC highlighted.
Brent crude oil rose $1.94 to $86.32 a barrel and the Dutch TTF natural gas futures price rose 5% to €58.63 per MWh.
The yield on 10-year German Bunds traded lower to 2.16%, French bonds declined to 2.63%, UK Gilts to 3.40% and Italian bonds inched higher to 4.002%.
Whirlpool Sells Europe Business
Whirlpool Corporation increased 2.2% to $157.70 after the household equipment maker said it plans to sell its Europe, Middle East and Africa business and form a partnership with Turkey-based Arcelik AS.
Whirlpool will contribute its European domestic appliance business, and Arcelik will contribute its domestic appliance, consumer electronics, air conditioning, and small domestic appliance businesses into the newly formed entity.
Whirlpool will own 25% and Arcelik 75% of the newly formed company and Arcelik will retain full-ownership of its Turkish business.
Europe Stock Movers
Nordex SE closed nearly unchanged at €14.76 after the Germany-based wind turbines maker reported a fall in orders in the fourth quarter and in 2022.
In the fourth quarter, the company received orders for 386 wind turbine compared to 678 with a total output of 1.9 GW compared to 3.3 GW a year ago.
The average sales price in euros per megawatt of capacity soared to €0.89 million/MW compared to €0.74 million/MW a year ago.
Hugo Boss AG declined 2% to €59.44 after the luxury fashion designer said preliminary sales in the fourth quarter rose 18% to €1.07 billion from €905 million a year ago.
Hays Plc increased 2.2% to 121.76 pence after the recruiting company reported an increase in its fiscal second quarter fees.
Net fees in the December quarter increased 11% or rose 8% on a comparable basis, driven by a 25% jump in revenue in Germany.
The recruitment agency reiterated its operating earnings estimate for the first-half between £95 million and £97 million.
THG plc plunged 8.7% to 62.50 pence after the online retailer of cosmetics and dietary supplements reported weaker-than-expected full-year sales.
2022 revenue increased 4.1% to £2.25 billion after combined revenue in its beauty and nutrition divisions rose 9.4% from a year ago.
"A dedicated focus on high-margin categories and relatively low maintenance capital expenditure supports the Group's expectation of being broadly free cash flow neutral in FY 2023, and significantly free cash flow positive in FY 2024," the company said in its trading statement.
Ocado Group Plc declined 9.2% to 733.0 pence after the online retail platform in partnership with Marks & Spencer estimated sales growth "in mid-single-digits" in 2023.
- Barry Adams
- 17 Jan, 2023
- New York City
U.S. stocks lacked direction in early trading investors focused on corporate earnings and the international news dominated news cycle.
Goldman Sachs said fourth quarter earnings plunged but Morgan Stanley earnings declined but were ahead of expectations.
Investors also digested the latest report from the OPEC indicating a demand recovery of oil 2023.
Moreover, China reported a sharp slowdown in economic growth in the fourth quarter and in 2022 on the account of zero-covid policy.
The economic growth fell to the lowest level in nearly five decades after retail sales and industrial production declined
Three years of lockdowns in China has devasted small businesses and several medium sized businesses in retail, construction and manufacturing are struggling to survive.
U.S. Indexes Lack Direction
Benchmark indexes on Wall Street struggled to get traction ahead of the pick up in earnings season.
The S&P 500 index declined 3.85 points to 3,995.19 and the Nasdaq Composite index fell 5.01 points to 11,074.15.
Demand Recovery Hope Lifts Oil Price
Crude oil prices advanced to the highest level since early December after OPEC said oil demand is expected to rise 2.2% to 22.2 million barrels a day on the hopes of economic recovery in advanced economies and rising demand from China.
"US crude imports followed seasonal trends, falling to an eight-month low of 6.2 mb/d in December.
US crude exports remained above 4 mb/d for the third-consecutive month.
US product flows were broadly steady, despite a cold wave that shut-in US refineries and disrupted travel," noted the report.
Crude oil price increased $1.75 to $80.73 a barrel and natural gas immediate month futures contract price rose 9 cents to $3.76 a thermal unit.
Treasury Yields Hover Near 4-month Low
The yield on 2-year Treasury notes increased to 4.22%, 10-year Treasury notes inched higher to 3.54% and 30-year Treasury bonds inched up to 3.67%.
U.S. Stock Movers
Goldman Sachs fell 2.4% to $365.11 after the financial services provider reported a sharp decline in revenues and earnings.
Goldman Sachs said fourth quarter revenue fell 16% from a year ago to $10.6 billion and net income plunged to $1.2 billion from $3.8 billion or diluted EPS fell to $3.32 from $10.81 from a year ago.
Morgan Stanley rose 5.4% to $96.37 after the financial services provider reported better-than-expected quarterly results.
Fourth quarter revenue fell to $12.7 billion from $14.5 billion a year ago and diluted earnings per share dropped to $2.2 billion from $3.7 billion or $1.26 from $2.01 a year ago.
Whirlpool Sells Europe Business
Whirlpool Corporation increased 2.2% to $157.70 after the household equipment maker said it plans to sell its Europe, Middle East and Africa business and form a partnership with Turkey-based Arcelik AS.
Whirlpool will contribute its European domestic appliance business, and Arcelik will contribute its domestic appliance, consumer electronics, air conditioning, and small domestic appliance businesses into the newly formed entity.
Whirlpool will own 25% and Arcelik 75% of the newly formed company and Arcelik will retain full-ownership of its Turkish business.
European Indexes Near 11-month Highs
European markets edged lower but hovered near 11-month highs after oil, gas and mining stocks advanced following the hopes of demand recovery in advanced economies and in China.
The DAX index fell 9.4 points to 15,124.66, the CAC-40 index was nearly unchanged at 7,043.77 and the FTSE 100 index fell 0.1% to 7,850.83.
The euro traded higher at $1.085, the British pound edged higher to $1.227 and the Swiss franc inched lower to 91.96 U.S. cents.
Energy Prices Trade Higher In Europe
Energy prices rose in Europe following the optimistic report from the OPEC.
"Preliminary figures show crude imports into OECD Europe remaining at healthy levels through the end of the year, despite imports of Russian crude falling to near zero excluding flows to Turkey.
OECD Europe product imports are also seen to be higher in anticipation of the impending February sanctions on Russian oil product imports," the report from the OPEC highlighted.
Brent crude oil rose $1.94 to $86.32 a barrel and the Dutch TTF natural gas futures price rose 5% to €58.63 per MWh.
The yield on 10-year German Bunds traded lower to 2.16%, French bonds declined to 2.63%, UK Gilts to 3.40% and Italian bonds inched higher to 4.002%.
Japan Awaits Rate Decision
Stocks in Japan rebounded, after two days of heavy losses, ahead of the Bank of Japan's decision tomorrow after the conclusion of a two-day policy meeting.
The Nikkei 225 average advanced 1.2% to 26,138.68 and the yen traded near 128.70 against the U.S. dollar after the Japanese government bond yields rose above the upper limit set by the Bank of Japan for the third day in a row.
China's GDP Growth Slows to Near 5-decade Low
Stocks in Shanghai traded nearly unchanged after the statistics bureau reported weakest economic growth in about 45 years.
China's GDP growth in the fourth quarter 2022 slowed to 2.9% from 3.9% in the third quarter.
For the full-year 2022, the economy expanded at 3%, the slowest pace since 1976 excluding 2.2% advance in 2020 during the onset of the coronavirus pandemic.
Retail sales declined 1.8% from a year ago in December and fell 0.2% in full-year 2022.
Industrial production increased 3.6% in full-year 2022 and advanced 1.3%.
The Shanghai Composite index decreased 0.1% to 3,224.24 and the Hang Seng index fell 0.8% to 21,577.64.
Chinese government said deaths outnumbered births in 2022, marking the beginning of the long forecasted ageing and the decline of Chinese population.
Total number of births declined to 9.56 million in 2022 from 10.62 million in 2021 and deaths increased to 10.41 in 2022 from 10.1 million in 2021, the National Bureau of Statistics said in a report Tuesday.
Total births declined for the sixth year in a row.
China's elderly population, those 60 years of age and older, expanded by 13 million to 280 million or one fifth of its 1.4 billion population.
India Stocks Rebound After Two Days of Losses
The Sensex index advanced 0.9% to 60,655.72 and the rupee held at 81.57 against the U.S. dollar in international trading.
Investors bid up stocks focused on the domestic economy in cautious trading after the international price of crude oil advanced, stoking fears of higher inflation.
- Arjun Pandit
- 17 Jan, 2023
- Mumbai
Asian markets closed mixed after China reported better-than-expected economic data and investors awaited rate decision from the Bank of Japan on Wednesday.
Stocks in Japan rebounded, after two days of heavy losses, ahead of the Bank of Japan's decision tomorrow after the conclusion of a two-day policy meeting.
The Nikkei 225 average advanced 1.2% to 26,138.68 and the yen traded near 128.70 against the U.S. dollar after the Japanese government bond yields rose above the upper limit set by the Bank of Japan for the third day in a row.
China's GDP Growth Slows to Near 5-decade Low
Stocks in Shanghai traded nearly unchanged after the statistics bureau reported weakest economic growth in about 45 years.
The China's GDP growth in the fourth quarter 2022 slowed to 2.9% from 3.9% in the third quarter.
For the full-year 2022, the economy expanded at 3%, the slowest pace since 1976 excluding 2.2% advance in 2020 during the onset of the coronavirus pandemic.
Retail sales declined 1.8% from a year ago in December and fell 0.2% in full-year 2022.
Industrial production increased 3.6% in full-year 2022 and advanced 1.3%.
The Shanghai Composite index decreased 0.1% to 3,224.24 and the Hang Seng index fell 0.8% to 21,577.64.
Chinese government said deaths outnumbered births in 2022, marking the beginning of the long forecasted ageing and the decline of Chinese population.
Total number of births declined to 9.56 million in 2022 from 10.62 million in 2021 and deaths increased to 10.41 in 2022 from 10.1 million in 2021, the National Bureau of Statistics said in a report Tuesday.
Total births declined for the sixth year in a row.
China's elderly population, those 60 years of age and older, expanded by 13 million to 280 million or one fifth of its 1.4 billion population.
India Stocks Rebound After Two Days of Losses
The Sensex index advanced 0.9% to 60,655.72 and the rupee held at 81.57 against the U.S. dollar in international trading.
Investors bid up stocks focused on the domestic economy in cautious trading after the international price of crude oil advanced, stoking fears of higher inflation.
- Bridgette Randall
- 16 Jan, 2023
- Frankfurt
Fraport AG increased 1.1% to €47.74 after the operator of Frankfurt airport reported a strong rebound in December and 2022 traffic.
In December, Frankfurt airport processed 4 million passengers, an increase of 46.2% from a year ago.
For 2022, the total number of passengers processed soared 97.2% to 48.9 million.
Cargo throughput, in contrast, fell 19% to about 159,671 metric tons in December 2022, reflecting the overall economic slowdown and the impact of airspace restrictions related to the Ukraine war.
All airports managed by Fraport reported a sharp jump in 2022 traffic.
Passenger arrivals at 14 Greek regional airports soared 79% to 31.2 million, Antalya Airport Turkish Riviera soared 41.8% to 31.1 million and two Brazilian airports at Fortaleza and Porto Alegre recorded passenger gains of 41% to 12.4 million combined.
The Bulgarian coastal airports of Burgas and Varna saw combined traffic in 2022 advanced 59.2% to 3.1 million passengers.
Temenos AG increased 8.9% to Sfr 62.0 after chief executive Max Chuard resigned under pressure from activist investors.
Sika AG increased 3.5% to Sfr 255.10 after the specialty chemical company signed a deal to sell select concrete additives business to the UK-based INEOS and meet regulatory requirements and complete the purchase of MBCC.
Ashmore Group Plc was nearly unchanged at 271.40 pence and the UK-based asset management group reported a 2% rise in assets under management.
Assets under management increased 2% to $57.2 billion at the end of December 2022 from $56.0 billion at the end of September 2022.
Fixed income under management increased 3% to $49.9 billion, equity funds assets rose 2% to $6.0 billion and alternative assets under management rose 2% to $1.3 billion.
Centamin Plc declined 3.5% to 119.35 pence after the gold mining company said that the Egyptian Supreme Court has reversed the lower court ruling challenging the Sukari gold mining concession between the government and the subsidiary of the company.
- Bridgette Randall
- 16 Jan, 2023
- Frankfurt
European markets advanced and extended 9-month highs after positive sentiment prevailed.
European market indexes traded higher after the reopening of China raised hopes of easing pressures on global supply chain and easing of inflation in the U.S. also raised the hopes of smaller rate hikes.
The positive sentiment was also supported by the continued easing of natural gas prices on the rising supply in the region after China's full-storage shifted cargo deliveries to the region.
Germany's Wholesale Prices Eased In December
Germany's wholesale inflation index eased to 12.8in December from 14.9% in November, Destatis or the Federal Statistics Office said in a report Monday.
From the previous month, wholesale prices eased 1.6% in December.
In 2022, wholesale prices rose 18.8% after energy prices soared 50.1%.
European Markets Extend 9-month Highs
European markets opened higher on mild optimism on China reopening optimism and expectations of falling inflation in the region.
The DAX index increased 0.3% to 15,124.45, the CAC-40 index advanced 0.4% to 7,049.94 and the FTSE 100 index rose 0.2% to 7,860.46.
The euro inched higher to $1.082, the British pound increased to $1.2205 and the Swiss franc held steady at 92.62 U.S. cents.
Natural Gas Prices Plunge Amid Warmer Climate and Elevated Storage
Natural gas prices continue to drop after more cargo ships are expected to arrive in the region as China storage remains full.
Natural gas prices peaked on August 26 just under €340 per MWh amid warmer weather conditions and near full-storage at locations in the region.
Natural gas prices dropped 15% and extended this year's loss to 40% €54.15 per MWh.
Brent crude oil eased 92 cents to €82.36 a barrel.
Europe Stock Movers
Fraport AG increased 1.1% to €47.74 after the operator of Frankfurt airport reported a strong rebound in December and 2022 traffic.
In December, Frankfurt airport processed 4 million passengers, an increase of 46.2% from a year ago.
For 2022, the total number of passengers processed soared 97.2% to 48.9 million.
Cargo throughput, in contrast, fell 19% to about 159,671 metric tons in December 2022, reflecting the overall economic slowdown and the impact of airspace restrictions related to the Ukraine war.
All airports managed by Fraport reported a sharp jump in 2022 traffic.
Passenger arrivals at 14 Greek regional airports soared 79% to 31.2 million, Antalya Airport Turkish Riviera soared 41.8% to 31.1 million and two Brazilian airports at Fortaleza and Porto Alegre recorded passenger gains of 41% to 12.4 million combined.
The Bulgarian coastal airports of Burgas and Varna saw combined traffic in 2022 advanced 59.2% to 3.1 million passengers.
Temenos AG increased 8.9% to Sfr 62.0 after chief executive Max Chuard resigned under pressure from activist investors.
Sika AG increased 3.5% to Sfr 255.10 after the specialty chemical company signed a deal to sell select concrete additives business to the UK-based INEOS and meet regulatory requirements and complete the purchase of MBCC.
Ashmore Group Plc was nearly unchanged at 271.40 pence and the UK-based asset management group reported a 2% rise in assets under management.
Assets under management increased 2% to $57.2 billion at the end of December 2022 from $56.0 billion at the end of September 2022.
Fixed income under management increased 3% to $49.9 billion, equity funds assets rose 2% to $6.0 billion and alternative assets under management rose 2% to $1.3 billion.
Centamin Plc declined 3.5% to 119.35 pence after the gold mining company said that the Egyptian Supreme Court has reversed the lower court ruling challenging the Sukari gold mining concession between the government and the subsidiary of the company.
- Barry Adams
- 16 Jan, 2023
- New York City
Stocks extended rally on the first day of new week and investors focused on the reopening in China and easing of bond yields in the U.S.
Tech stocks rally supported the market advance on the hopes that the Federal Reserve may slow future rate hikes and may even consider pausing rates earlier than previously expected.
The ending of zero-covid policy in China has raised hopes of smoother functioning of the supply chain and weakened inflation pressure as more medium and small businesses reopen after three years of stringent lockdowns.
China's three largest cities, Beijing, Shanghai and Shenzhen, are estimated to have achieved herd immunity at above 80% infection rates.
But virus infections are expected to flare-up in rural areas in the next few weeks as more than 250 million migrants return home ahead of the Lunar New Year.
Tech Stocks Extend U.S. Market Rally
Benchmark indexes extended recent gains on the hopes of rate increase slowdown and easing of supply chain pressures.
The S&P 500 index increased 0.4% to 3,999.09 and the Nasdaq Composite index added 0.7% to 11,079.16.
Crude oil advanced on the hopes of rising demand from China but natural prices struggled amid warmer-than-usual weather in the U.S. and Northern Europe.
Crude oil decreased 74 cents to $79.12 a barrel and natural gas futures rose 20 cents to $3.62 a thermal unit.
The U.S. Treasury yields retained a slight upward bias after two weeks of decline but the bond market adjusted to slowing inflation scenario in the U.S. and the Euro Area.
The yield on 2-year Treasury notes inched higher to 4.24%, 10-year notes rose to 3.51% and 30-year Treasury notes advanced to 3.62%.
European Markets Rise On Weakening Inflation
European markets advanced and extended 9-month highs after positive sentiment prevailed.
Germany's wholesale inflation index eased to 12.8in December from 14.9% in November, Destatis or the Federal Statistics Office said in a report Monday.
From the previous month, wholesale prices eased 1.6% in December.
In 2022, wholesale prices rose 18.8% after energy prices soared 50.1%.
The DAX index increased 0.3% to 15,124.45, the CAC-40 index advanced 0.4% to 7,049.94 and the FTSE 100 index rose 0.2% to 7,860.46.
The euro inched higher to $1.082, the British pound increased to $1.2205 and the Swiss franc held steady at 92.62 U.S. cents.
Natural gas prices dropped 15% and extended this year's loss to 40% €54.15 per MWh.
Brent crude oil eased 92 cents to €82.36 a barrel.
Japan's Ultra Low Rates Policy Under Pressure
Tokyo stocks were under pressure after wholesale prices accelerated in December and investors awaited the rate increase on Wednesday from the Bank of Japan after the two-day meeting.
Wholesale prices accelerated in Japan in December, the Bank of Japan reported today.
The Corporate Goods Price Index increased 10.2% in December after rising at a revised annual pace of 9.7% in November.
While the import price index eased to 22.8% in December from 28.0% in November, domestic good prices are still rising at elevated levels.
In 2022, wholesale prices rose at a faster pace of 9.7% after rising at 4.6% in November, the fastest pace since record keeping began in 1981.
The Nikkei index declined 1.1% to 25,822.32 and the yen traded up to 128 level against the U.S. dollar, the strongest level in seven months on the rising government bond yields.
China's Home Price Weakness Persists
Housing market weakness persisted for the sixteenth month in a row in December, the National Bureau of Statistics reported Monday.
New home prices eased 0.25% in December and existing home prices declined 0.5%
Of the 70 urban markets tracked by the government agency, the number of cities reporting new home price decline increased to 55 in December from 51 and existing home price decline increased to 63 cities from 62 in November.
China's reopening is expected to increase transaction volume and improve market confidence and the announced government measures are also likely to support completions of unfinished projects.
The Shanghai Composite index increased 1.0% to 3,227.59 and the Hang Seng index added 8.06 points to 21,746.72.
India Wholesale Inflation Eased In December
The Sensex index fell 0.3% to 60,092.97 after wholesale inflation dropped to the lowest level since February 2021.
Wholesale inflation eased to 4.95% from a year ago in Dec from 5.85% in Nov, the lowest level since February 2021.
On a monthly basis contraction deepened to 1.1% from 0.5% in the previous month.
The Indian rupee held steady at 81.62 against the U.S. dollar.
- Arjun Pandit
- 16 Jan, 2023
- Mumbai
Tokyo stocks were under pressure after wholesale prices accelerated in December and investors awaited the rate increase on Wednesday from the Bank of Japan after the two-day meeting.
Wholesale prices accelerated in Japan in December, the Bank of Japan reported today.
The Corporate Goods Price Index increased 10.2% in December after rising at a revised annual pace of 9.7% in November.
While the import price index eased to 22.8% in December from 28.0% in November, domestic good prices are still rising at elevated levels.
In 2022, wholesale prices rose at a faster pace of 9.7% after rising at 4.6% in November, the fastest pace since record keeping began in 1981.
After the release of the inflation data, the yield on 10-year Japanese government bonds increased to 0.52%, the highest level since 2015.
The Nikkei index declined 1.1% to 25,822.32 and the yen traded up to 128 level against the U.S. dollar, the strongest level in seven months on the rising government bond yields.
Housing market weakness persisted for the sixteenth month in a row in December, the National Bureau of Statistics reported Monday.
New home prices eased 0.25% in December and existing home prices declined 0.5%
Of the 70 urban markets tracked by the government agency, the number of cities reporting new home price decline increased to 55 in December from 51 and existing home price decline increased to 63 cities from 62 in November.
China's reopening is expected to increase transaction volume and improve market confidence and the announced government measures are also likely to support completions of unfinished projects.
The Shanghai Composite index increased 1.0% to 3,227.59 and the Hang Seng index added 8.06 points to 21,746.72.
The Sensex index fell 0.3% to 60,092.97 after wholesale inflation dropped to the lowest level since February 2021.
Wholesale inflation eased to 4.95% from a year ago in Dec from 5.85% in Nov, the lowest level since February 2021.
On a monthly basis contraction deepened to 1.1% from 0.5% in the previous month.
The Indian rupee held steady at 81.62 against the U.S. dollar.