- Li Chen
- 21 Nov, 2024
- Hong Kong
China and Hong Kong stock market indexes halted a three-day rally as investors looked for fresh catalysts.
The Hang Seng index declined 0.1% and the CSI 300 index eased 0.2% as investors turned cautious following a weak earnings growth outlook.
Baidu and Chow Tai Fook were in focus ahead of quarterly results later today.
Benchmark indexes in mainland China and Hong Kong are down about 15% from their peaks in late September, after fiscal and monetary stimulus measures failed to revive consumer confidence.
Moreover, investors are also concerned about rising trade barriers in the European Union and higher tariffs in the U.S. on goods made by China.
The latest monetary and fiscal measures to revive property markets did not go far enough, and property developers continue to struggle with insufficient capital.
China's stimulus measures focus on easing the debt burden on local governments but do not provide any support to property developers and home buyers who have paid for unfinished projects.
Moreover, leading 35 companies in Hong Kong reported flat earnings in the latest quarter and forecast weak earnings growth in the remainder of the year.
China Stock Movers
The Hang Seng index decreased 0.1% to 19,680.23, and the mainland-focused CSI 300 index edged lower 0.2% to 3,976.90.
Semiconductor equipment-related stocks were in focus after Nvidia Corp. reported strong quarterly results but fell short of the highest revenue expectations.
Revenue in the fiscal third quarter increased 94% to $35.1 billion from $18.1 billion, net income soared 109% to $19.3 billion from $9.2 billion, and diluted earnings per share jumped 111% to 78 cents from 37 cents a year earlier.
Nvidia forecast fiscal fourth quarter revenue of $37.5 billion, with a band of 2%, and GAAP gross margin of 73% and non-GAAP gross margin of 73.5%.
Data center revenue increased to $30.8 billion, a jump of 17% from the previous quarter and a rise of 112% from a year ago.
Baidu edged down 0.06% to HK$83.95, and Chow Tai Fook Jewellery Group decreased 3% to HK$7.14.
Residential property developers fell as investors worried that Beijing policymakers may encourage struggling companies to consolidate.
Longfor Group declined 1% to HK $11.24; China Vanke decreased 2.2% to HK $6.40; and China Resources Land dropped 1% to HK $23.60.
Kuaishou Technology dropped 10.5% to HK $47.05 after the short-video app developer's revenue increase fell short of market expectations.
Revenue in the third quarter increased 11.4% to 31.1 billion yuan from 27.9 billion yuan, net income jumped 50% to 3.3 billion yuan from 2.2 billion yuan, and diluted earnings per share rose to 0.75 yuan from 0.49 yuan a year earlier.
Average daily users increased 5.4% to 407.5 billion from 386.6 million, and average monthly users rose 4.3% to 714.1 million from 684.7 million a year ago.
- Arun Goswami
- 21 Nov, 2024
- Mumbai
Stocks in Mumbai traded down, reflecting market weakness in Asia and persistent worries about foreign fund outflows.
The Sensex index declined 0.5% to 77,172.19, and the Nifty index fell 0.6% to 23,378.60.
Stocks were under pressure after Gautam Adani, chairman of Adani Group, and seven others were charged in New York for an alleged bribery scheme.
The U.S. Department of Justice leveled charges against billionaire investors, citing telephone conversations and meetings with Indian officials to facilitate acquiring contracts for solar power projects between 2020 and 2024.
The U.S. authorities allege that Adani and executives at the company offered $250 million of bribes to Indian government officials and failed to disclose the arrangements to U.S. investors in a bond offering to finance $2 billion worth of solar energy projects.
Separately, the U.S. Securities and Exchange Commission charged Gautam Adani and his nephew Sagar Adani and Cyril Cabanes, an executive of Azure Power Global.
Adanis and Cabanes were charged by the regulatory agency for their role in raising $175 million through the sale of bonds for Adani Green Energy and misrepresenting to U.S. investors.
Adani Green Energy plunged 18.5% to ₹1,145.25, Adani Energy Solutions declined 20% to ₹697.25, Adani Power fell 14.3% to ₹449.0, and Adani Enterprises dropped 10% to ₹2,539.35.
India Stock Movers
Adani Enterprises declined 0.7% to ₹2,817.0 after Gautam Adani, chairman of the diversified group, was charged in New York over his role in a bribery and fraud scheme.
Bharti Airtel Ltd decreased 0.8% to ₹1,524.30, and the company awarded 4G and 5G telecom equipment orders to Finland-based Nokia Oyj.
Cipla Ltd. fell 0.3% to 1.462.0 after the company's U.S. subsidiary recalled 1,875 boxes of Lanthanum Carbonate chewable tablets, according to a latest enforcement report by the U.S. Food and Drug Administration.
The tablet is used to treat excessive phosphate in patients with end-stage kidney disease undergoing dialysis.
Godrej Industries declined 0.3% to ₹1,020.0, and the company raised 1,000 crore through the sale of unsecured non-convertible bonds of various maturities.
UPL Ltd eased 0.5% to ₹544.0, and the private equity group Alpha Wave Global invested $350 million (or about ₹2,850 crore) in the specialty chemical maker's subsidiary Advanta Enterprises.
Tata Technologies Ltd. increased 0.6% to ₹954.0 after the company signed a preliminary agreement with the Tripura government to upgrade 19 industrial training institutes in the northeastern state.
The company will invest 86% of the ₹683 crore total outlay, and the Tripura government will pay for the remaining 14%.
One 97 Communications Ltd edged up 1.2% to ₹824.40, and the company has launched a gateway for international payments for Indian travelers to the UAE, Bhutan, Nepal, France, and Mauritius.
- Arun Goswami
- 21 Nov, 2024
- Mumbai
Stocks in Mumbai traded down, reflecting market weakness in Asia and persistent worries about foreign fund outflows.
The Sensex index declined 0.5% to 77,172.19, and the Nifty index fell 0.6% to 23,378.60.
Stocks were under pressure after Gautam Adani, chairman of Adani Group, and seven others were charged in New York for an alleged bribery scheme.
The U.S. Department of Justice leveled charges against billionaire investors, citing telephone conversations and meetings with Indian officials to facilitate acquiring contracts for solar power projects between 2020 and 2024.
The U.S. authorities allege that Adani and executives at the company offered $250 million of bribes to Indian government officials and failed to disclose the arrangements to U.S. investors in a bond offering to finance $2 billion worth of solar energy projects.
Separately, the U.S. Securities and Exchange Commission charged Gautam Adani and his nephew Sagar Adani and Cyril Cabanes, an executive of Azure Power Global.
Adanis and Cabanes were charged by the regulatory agency for their role in raising $175 million through the sale of bonds for Adani Green Energy and misrepresenting to U.S. investors.
Adani Green Energy plunged 18.5% to ₹1,145.25, Adani Energy Solutions declined 20% to ₹697.25, Adani Power fell 14.3% to ₹449.0, and Adani Enterprises dropped 10% to ₹2,539.35.
India Stock Movers
Adani Enterprises declined 0.7% to ₹2,817.0 after Gautam Adani, chairman of the diversified group, was charged in New York over his role in a bribery and fraud scheme.
Bharti Airtel Ltd decreased 0.8% to ₹1,524.30, and the company awarded 4G and 5G telecom equipment orders to Finland-based Nokia Oyj.
Cipla Ltd. fell 0.3% to 1.462.0 after the company's U.S. subsidiary recalled 1,875 boxes of Lanthanum Carbonate chewable tablets, according to a latest enforcement report by the U.S. Food and Drug Administration.
The tablet is used to treat excessive phosphate in patients with end-stage kidney disease undergoing dialysis.
Godrej Industries declined 0.3% to ₹1,020.0, and the company raised 1,000 crore through the sale of unsecured non-convertible bonds of various maturities.
UPL Ltd eased 0.5% to ₹544.0, and the private equity group Alpha Wave Global invested $350 million (or about ₹2,850 crore) in the specialty chemical maker's subsidiary Advanta Enterprises.
Tata Technologies Ltd. increased 0.6% to ₹954.0 after the company signed a preliminary agreement with the Tripura government to upgrade 19 industrial training institutes in the northeastern state.
The company will invest 86% of the ₹683 crore total outlay, and the Tripura government will pay for the remaining 14%.
One 97 Communications Ltd edged up 1.2% to ₹824.40, and the company has launched a gateway for international payments for Indian travelers to the UAE, Bhutan, Nepal, France, and Mauritius.
- Alexander Garcia
- 20 Nov, 2024
- Miami
Stock market indexes turned lower as investors monitored US-Russia tensions and reviewed the latest batch of earnings.
Market sentiment turned cautious, and early gains turned to losses as investors reviewed the latest earnings from Target, Dolby Labs, Powell Industries, and corporate news from Comcast.
The S&P 500 index declined 0.4%, and the Nasdaq Composite fell 0.6% as investors looked forward to details of Nvidia's earnings results.
Specifically, investors are looking to the company's plans to ramp up its production of the popular Blackwell chip and artificial intelligence spending trends.
Target Corp. plunged sharply after the company reported weaker-than-expected third quarter earnings, and the company's fourth quarter earnings outlook fell short of expectations.
Market sentiment improved after tensions between the U.S. and Russia appeared to ease following comments from Russia's foreign minister, Sergei Lavrov, indicating nuclear war could be averted.
Ukraine stepped up its West-made missile attacks deep into Russian territory as Russia lowered its threshold for a nuclear strike.
In the fast-evolving situation, markets turned cautious despite conciliatory comments from Lavrov, as Ukraine kept up the offensive and inflicted heavy losses.
U.S. Indexes and Treasury Yields
The S&P 500 index decreased 0.5% to $5,886.95, the Nasdaq Composite fell 0.6% to 18,864.89, and the Russell 2000 index inched lower 0.4% to 2,317.07.
The yield on 2-year Treasury notes edged higher to 4.31%, 10-year Treasury notes inched up to 4.42%, and 30-year Treasury bonds decreased to 4.61%.
WTI crude oil increased $0.37 to $69.61 a barrel, and natural gas prices edged up 11 cents to $3.11 a thermal unit.
Gold decreased by $12.48 to $2,648.54 an ounce, and silver decreased by $0.21 to $31.06.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 106.53.
U.S. Stock Movers
Target Corp. plunged 19% to $127.35 after the discount retailer reported weaker-than-expected quarterly results and guided a cautious outlook.
The retailer reported third quarter earnings per share of $1.85, and the company forecast fourth quarter earnings per share between $1.85 and $2.45, sharply lower than the market expectation of at least $2.65.
Comcast increased 1.7% to $43.05 after The Wall Street Journal said the company is planning to spinoff NBCUniversal cable TV networks, which generates annual revenue of about $7 billion.
The company's cable network portfolio includes, among other properties, MSNBC, CNBC, E!, Golf Channel, and USA.
Delta Air Lines decreased 0.01% to $64.76 after the company reiterated its fourth quarter earnings per share to range between $1.60 and $1.85, and the carrier estimated fiscal 2025 capacity to increase between 3% and 4%.
Nvidia Corp. jumped 0.6% to $147.76 ahead of the company's earnings later in the day, and investors anticipate third quarter earnings per share of 75 cents and revenue of $33.2 billion.
Powell Industries dropped 14.2% to $268.0 after the custom power solution provider reported better-than-expected quarterly results, but new orders fell short of market expectations.
Fiscal fourth quarter revenue jumped 32%, earnings soared 74%, and new orders in the fiscal year fell to $1.1 billion from $1.4 in the previous year.
Dolby Laboratories soared 11.5% to $81.19 after the audio and imaging technology provider reported better-than-expected quarterly earnings in the fiscal fourth quarter ending in September.
Revenue increased to $304.8 million from $290.5 million, net income advanced to $58.6 million from $9.2 million, and diluted earnings per share rose to 61 cents from 9 cents a year earlier.
European Markets Halted 3-Day Slide After Russia Fears Eased
European markets rebounded in early trading after tensions between the U.S. and Russia appeared to ease, and investors debated future rate paths.
Benchmark indexes in Paris, Frankfurt, Milan, and London edged slightly higher, but lost momentum and dipped below the flatline in the final two hours of trading.
Market sentiment recovered after Russia's foreign minister, Sergei Lavrov, said all efforts would be made to avoid a nuclear confrontation and the U.S. restrained from updating its nuclear policy.
But sentiment turned negative in late afternoon after Ukraine escalated its West-made missile attack deep into Russian territory, sparking worries of intensifying war and deepening supply chain disruptions.
The worries of escalating trade war with the U.S. also weakened the trading sentiment.
In 2023, the European Union exported €502 billion worth of goods to the United States while importing €344 billion worth of goods, resulting in a goods surplus of €158 billion.
However, China's goods trade surplus with the U.S. in 2023 was near $345 billion.
UK Consumer Price Inflation Accelerated
Consumer price inflation in the U.K. accelerated more than expected in October, according to the latest data released by the Office for National Statistics.
Annual inflation accelerated to a six-month high of 2.3% in October from 1.7% in September, driven by a 5.5% jump in housing and household services, a 4.3% increase in restaurants and hotels, and a 5% rise in prices for services.
However, food inflation was steady at 1.9%.
Annual core inflation, which excludes volatile food and energy prices, accelerated to 3.3% from 3.2%.
Germany's Producer Price Deflation Extends to 16th Month in October
Producer prices in Germany declined for the sixteenth month in a row, driven by a sharp drop in energy prices, the Federal Statistical Office, or Destatis, reported Wednesday.
Producer prices declined 1.1% from a year ago in October, easing from a 1.4% in the previous month.
Excluding energy, producer prices rose 1.3% from a year ago.
Capital goods prices rose 2.0%, consumer goods prices advanced 1.9%, durable goods rose 0.9%, and intermediate goods edged up 0.4%.
On a monthly basis, producer prices increased by 0.2%, rebounding from a 0.5% decrease in September.
Europe Indexes and Yields
The DAX index decreased by 0.2% to 19,018.85; the CAC-40 index fell by 0.3% to 7,206.32; and the FTSE 100 index declined by 0.1% to 8,094.84.
The yield on 10-year German bonds edged higher to 2.36%, French bonds inched up to 3.10%, the UK gilts edged higher to 4.49%, and Italian bonds increased to 3.58%.
The euro edged lower to $1.05; the British pound inched down to $1.26; and the U.S. dollar strengthened to 88.61 Swiss cents.
Brent crude increased $0.36 to $73.65 a barrel, and the Dutch TTF natural gas rose by €0.93 to €46.83 per MWh.
Europe Stock Movers
Sage Group PLC soared 19% to 1,281.50 pence after the enterprise resource planning software company reported strong full-year financial results and announced a new stock repurchase plan.
La Francaise des Jeux SA dropped 4.2% to €37.70 after Credit Agricole announced plans to sell a 2.2% stake in the lottery operator in France.
Bank and construction stocks were among the leading gainers as investors unwound safe-haven trades following the easing of tensions between the U.S. and Russia.
UniCredit SpA increased 0.3% to €38.87, Credit Agricole SA advanced 0.2% to €13.38, BNP Paribas decreased 0.7% to €58.89, Deutsche Bank advanced 0.9% to €16.04, and Barclays advanced 1% to 258.50 pence.
Partners Group Holding AG advanced 1.1% to CHF 1,222.0 after the Swiss private equity group acquired a majority stake in Spain-based hospitality platform Bluesea Hotels.
Japan's Indexes Remained Under Pressure, Yen Resumed Downward Slide
Stock market indexes in Tokyo advanced, and the yen resumed its downward slide amid the rate path and ongoing worries of impending trade tariffs.
The Nikkei 225 stock average and the Topix index turned lower after struggling to stay above the flatline in the early morning trading.
Market indexes are facing headwinds over the last three weeks as the Bank of Japan signals a gradual increase in interest rates and ends a decade of unconventional interest rate policy.
Market jitters were compounded by the ongoing political instability after the ruling coalition of LDP-Komeito parties lost its majority in the lower house of Diet, complicating policy priorities.
So far in the year to Tuesday, the Nikkei 225 stock average has gained 14.9%, and the benchmark index has advanced for the second consecutive year in a row, largely driven by foreign fund inflow in the hopes of corporate reforms.
Market sentiment has been cautious amid a sharp escalation of tensions between the U.S. and Russia after Ukraine launched American-made missiles striking towns near the border with Russia.
Following the strike, Russia's president Vladimir Putin lowered the threshold for a retaliatory nuclear strike, sharply escalating tensions in the region.
The yen resumed its slide and eased to 155.28 after investors overlooked the latest verbal intervention by officials at the ministry of finance.
Currency traders are looking for the yen to trade as low as 165 against the U.S. dollar by the end of the current fiscal year.
Japan's Trade Deficit Shrank in October
Japan's international trade balance recorded its fourth consecutive deficit as imports continue to surpass exports, the Ministry of Finance said on Wednesday.
Japan's exports in October increased 3.1% from a year ago to a three-month high of 9.4 trillion yen; imports advanced 0.4% to 9.88 trillion yen.
Sales of semiconductor machinery soared 42.6%, and scientific and optical instruments advanced 11.8%; however, shipments of transportation equipment fell 4.4%.
Shipments to the U.S. declined 6.2%, to the European Union dropped 11.3%, but exports advanced to China by 1.5%, to India by 18.9%, to Russia by 52.8%, and to the ASEAN region by 7.5%.
Imports advanced for the seventh month in a row but rose at the slowest pace.
Imports of machinery rose 12.5%, chemical by 5.6%, but purchases of mineral fuels fell 11.5% from a year ago, respectively.
Trade deficit shrank to 461.25 billion yen from 702.8 billion yen a year ago, as exports rose faster than imports, but deficit expanded from 294.1 billion yen in September.
Japan Stock Movers
The Nikkei 225 Stock Average decreased 0.3% to 38,328.03, and the broader Topix index declined 0.3% to 38,328.03.
Seven & I Holdings increased 6.6% to ¥2,596.0 on reports that the founding family is looking to raise 8 trillion yen and take the retailer private by the end of this financial year in March.
Tokio Marine dropped 6.9% to ¥5,636.0 despite the insurance company raising its full-year net income outlook and announcing a stock buyback of up to 120 billion yen.
Net premiums written in the first half increased 5.7% from a year ago, reflecting higher rates; however, life insurance premiums plunged 32.9%.
Revenue in the first-half ending in September increased 16% to 4.34 trillion yen, net income attributable to shareholders soared 235% to 688.5 billion yen, and basic net income per share advanced to 351.38 yen from 103.38 yen a year earlier.
The company declared 81 yen per share earnings and forecast a total dividend of 162 yen per share in the current year, higher than 123 yen per share.
The company revised consolidated business forecasts and ordinary profit of 1,240.0 billion yen and 880.0 billion yen for net income attributable to owners of the parent.
The company projected full-year net premiums of 5.08 trillion yen and life insurance premiums of 890 billion yen.
The insurance company forecast net incurred losses related to natural catastrophes occurring during the period of 116 billion yen in Japan and 85 billion yen outside Japan.
SOMPO Holdings increased 11.8% to ¥3,984.0 after the insurance company reported strong financial performance in the first half, driven by higher premiums and investment gains.
Ordinary income increased 11.4% to 2.96 trillion yen from 2.65 trillion yen, and the insurance company estimated annual net income to decline.
Net premiums written increased by 8.3% to 2.26 billion yen, and investment income soared 51% to 386.76 billion yen, largely attributed to gains on sales of securities.
Basic earnings per share increased to 267.05 yen from 132.21 yen a year earlier.
Meanwhile, the net income attributable to shareholders almost doubled to 262.23 billion yen from 131.5 billion yen.
The company forecast net income attributable to shareholders in the current year to decline 3.9% to 400 billion yen and earnings per share of 412.27 yen.
PBoC Holds Steady Loan Prime Rates, China and HK Stocks Waver
Stock market indexes in China and Hong Kong lacked direction as investors debated the economic growth outlook and geopolitical situation.
The Hang Seng index inched up a fraction, and the mainland-focused CSI 300 index advanced 0.3%.
The People's Bank of China left its loan prime rates unchanged after lowering rates in the previous month.
The central bank held steady one-year loan prime rate at 3.1% and 5-year loan prime rate at 3.6%; both rates are used as reference rates for consumer and corporate loans.
Stock market indexes have been under pressure for the last six weeks after fiscal and monetary reforms failed to impress investors.
Moreover, corporate results in the latest earnings season have also shown growth of less than 1%, knocking down the expectations laid out by many international brokerage houses.
Stock market indexes in China and Hong Kong are likely to face more selling pressure in the coming weeks, as valuations do not reflect earnings and economic growth realities.
Moreover, the Chinese economy is in long-term economic decline, and annual growth rates are expected to ease to as low as 3% over the next three years.
Policymakers in Beijing have announced a slew of measures to revive the faltering property market, including a lower transaction tax, relaxing rules for first-time home buyers, and offering cheaper mortgage loans.
However, those measures have failed to provide support to developers to complete unfinished residential projects and bolster the financial strength of property companies.
Chinese manufacturing companies are also bracing for higher tariffs from the U.S. as the new administration works to impose tariffs of as much as 60%.
China Stock Movers
The Hang Seng index increased 0.05% to 19,674.23, and the CSI 300 index added 0.3% to 3,987.53.
Alibaba Group decreased 1.5% to HK $84.05, Tencent Holdings advanced 0.7% to HK $409.40, and JD.com decreased 0.07% to HK $137.10.
Baidu.com added 0.7% to HK $83.70 ahead of the company's quarterly financial results later today.
Xiaomi Corp. declined 2.5% to HK $27.55 and extended two-day losses to more than 5% despite the company lifting its annual electric vehicle delivery outlook a few days ago.
Hunan Xiangtou Goldsky Titanium Metal Co. Ltd. soared more than 310% to 29.32 yuan on the first day of trading after the company listed its stock on the Shanghai stock exchange.
Hunan Xiangtou Goldsky Titanium priced its offering at 7.16 per share and raised 662 million yuan.
- Alexander Garcia
- 20 Nov, 2024
- Miami
Stock market indexes turned lower as investors monitored US-Russia tensions and reviewed the latest batch of earnings.
Market sentiment turned cautious, and early gains turned to losses as investors reviewed the latest earnings from Target, Dolby Labs, Powell Industries, and corporate news from Comcast.
The S&P 500 index declined 0.4%, and the Nasdaq Composite fell 0.6% as investors looked forward to details of Nvidia's earnings results.
Specifically, investors are looking to the company's plans to ramp up its production of the popular Blackwell chip and artificial intelligence spending trends.
Target Corp. plunged sharply after the company reported weaker-than-expected third quarter earnings, and the company's fourth quarter earnings outlook fell short of expectations.
Market sentiment improved after tensions between the U.S. and Russia appeared to ease following comments from Russia's foreign minister, Sergei Lavrov, indicating nuclear war could be averted.
Ukraine stepped up its West-made missile attacks deep into Russian territory as Russia lowered its threshold for a nuclear strike.
In the fast-evolving situation, markets turned cautious despite conciliatory comments from Lavrov, as Ukraine kept up the offensive and inflicted heavy losses.
U.S. Indexes and Treasury Yields
The S&P 500 index decreased 0.5% to $5,886.95, the Nasdaq Composite fell 0.6% to 18,864.89, and the Russell 2000 index inched lower 0.4% to 2,317.07.
The yield on 2-year Treasury notes edged higher to 4.31%, 10-year Treasury notes inched up to 4.42%, and 30-year Treasury bonds decreased to 4.61%.
WTI crude oil increased $0.37 to $69.61 a barrel, and natural gas prices edged up 11 cents to $3.11 a thermal unit.
Gold decreased by $12.48 to $2,648.54 an ounce, and silver decreased by $0.21 to $31.06.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 106.53.
U.S. Stock Movers
Target Corp. plunged 19% to $127.35 after the discount retailer reported weaker-than-expected quarterly results and guided a cautious outlook.
The retailer reported third quarter earnings per share of $1.85, and the company forecast fourth quarter earnings per share between $1.85 and $2.45, sharply lower than the market expectation of at least $2.65.
Comcast increased 1.7% to $43.05 after The Wall Street Journal said the company is planning to spinoff NBCUniversal cable TV networks, which generates annual revenue of about $7 billion.
The company's cable network portfolio includes, among other properties, MSNBC, CNBC, E!, Golf Channel, and USA.
Delta Air Lines decreased 0.01% to $64.76 after the company reiterated its fourth quarter earnings per share to range between $1.60 and $1.85, and the carrier estimated fiscal 2025 capacity to increase between 3% and 4%.
Nvidia Corp. jumped 0.6% to $147.76 ahead of the company's earnings later in the day, and investors anticipate third quarter earnings per share of 75 cents and revenue of $33.2 billion.
Powell Industries dropped 14.2% to $268.0 after the custom power solution provider reported better-than-expected quarterly results, but new orders fell short of market expectations.
Fiscal fourth quarter revenue jumped 32%, earnings soared 74%, and new orders in the fiscal year fell to $1.1 billion from $1.4 in the previous year.
Dolby Laboratories soared 11.5% to $81.19 after the audio and imaging technology provider reported better-than-expected quarterly earnings in the fiscal fourth quarter ending in September.
Revenue increased to $304.8 million from $290.5 million, net income advanced to $58.6 million from $9.2 million, and diluted earnings per share rose to 61 cents from 9 cents a year earlier.
European Markets Halted 3-Day Slide After Russia Fears Eased
European markets rebounded in early trading after tensions between the U.S. and Russia appeared to ease, and investors debated future rate paths.
Benchmark indexes in Paris, Frankfurt, Milan, and London edged slightly higher, but lost momentum and dipped below the flatline in the final two hours of trading.
Market sentiment recovered after Russia's foreign minister, Sergei Lavrov, said all efforts would be made to avoid a nuclear confrontation and the U.S. restrained from updating its nuclear policy.
But, sentiment turned negative in late afternoon after Ukraine escalated its West-made missile attack deep into Russian territory, sparking worries of intensifying war and deepening supply chain disruptions.
UK Consumer Price Inflation Accelerated
Consumer price inflation in the U.K. accelerated more than expected in October, according to the latest data released by the Office for National Statistics.
Annual inflation accelerated to a six-month high of 2.3% in October from 1.7% in September, driven by a 5.5% jump in housing and household services, a 4.3% increase in restaurants and hotels, and a 5% rise in prices for services.
However, food inflation was steady at 1.9%.
Annual core inflation, which excludes volatile food and energy prices, accelerated to 3.3% from 3.2%.
Germany's Producer Price Deflation Extends to 16th Month in October
Producer prices in Germany declined for the sixteenth month in a row, driven by a sharp drop in energy prices, the Federal Statistical Office, or Destatis, reported Wednesday.
Producer prices declined 1.1% from a year ago in October, easing from a 1.4% in the previous month.
Excluding energy, producer prices rose 1.3% from a year ago.
Capital goods prices rose 2.0%, consumer goods prices advanced 1.9%, durable goods rose 0.9%, and intermediate goods edged up 0.4%.
On a monthly basis, producer prices increased by 0.2%, rebounding from a 0.5% decrease in September.
Europe Indexes and Yields
The DAX index decreased by 0.2% to 19,018.85; the CAC-40 index fell by 0.3% to 7,206.32; and the FTSE 100 index declined by 0.1% to 8,094.84.
The yield on 10-year German bonds edged higher to 2.36%, French bonds inched up to 3.10%, the UK gilts edged higher to 4.49%, and Italian bonds increased to 3.58%.
The euro edged lower to $1.05; the British pound inched down to $1.26; and the U.S. dollar strengthened to 88.61 Swiss cents.
Brent crude increased $0.36 to $73.65 a barrel, and the Dutch TTF natural gas rose by €0.93 to €46.83 per MWh.
Europe Stock Movers
Sage Group PLC soared 19% to 1,281.50 pence after the enterprise resource planning software company reported strong full-year financial results and announced a new stock repurchase plan.
La Francaise des Jeux SA dropped 4.2% to €37.70 after Credit Agricole announced plans to sell a 2.2% stake in the lottery operator in France.
Bank and construction stocks were among the leading gainers as investors unwound safe-haven trades following the easing of tensions between the U.S. and Russia.
UniCredit SpA increased 0.3% to €38.87, Credit Agricole SA advanced 0.2% to €13.38, BNP Paribas decreased 0.7% to €58.89, Deutsche Bank advanced 0.9% to €16.04, and Barclays advanced 1% to 258.50 pence.
Partners Group Holding AG advanced 1.1% to CHF 1,222.0 after the Swiss private equity group acquired a majority stake in Spain-based hospitality platform Bluesea Hotels.
Japan's Indexes Remained Under Pressure, Yen Resumed Downward Slide
Stock market indexes in Tokyo advanced, and the yen resumed its downward slide amid the rate path and ongoing worries of impending trade tariffs.
The Nikkei 225 stock average and the Topix index turned lower after struggling to stay above the flatline in the early morning trading.
Market indexes are facing headwinds over the last three weeks as the Bank of Japan signals a gradual increase in interest rates and ends a decade of unconventional interest rate policy.
Market jitters were compounded by the ongoing political instability after the ruling coalition of LDP-Komeito parties lost its majority in the lower house of Diet, complicating policy priorities.
So far in the year to Tuesday, the Nikkei 225 stock average has gained 14.9%, and the benchmark index has advanced for the second consecutive year in a row, largely driven by foreign fund inflow in the hopes of corporate reforms.
Market sentiment has been cautious amid a sharp escalation of tensions between the U.S. and Russia after Ukraine launched American-made missiles striking towns near the border with Russia.
Following the strike, Russia's president Vladimir Putin lowered the threshold for a retaliatory nuclear strike, sharply escalating tensions in the region.
The yen resumed its slide and eased to 155.28 after investors overlooked the latest verbal intervention by officials at the ministry of finance.
Currency traders are looking for the yen to trade as low as 165 against the U.S. dollar by the end of the current fiscal year.
Japan's Trade Deficit Shrank in October
Japan's international trade balance recorded its fourth consecutive deficit as imports continue to surpass exports, the Ministry of Finance said on Wednesday.
Japan's exports in October increased 3.1% from a year ago to a three-month high of 9.4 trillion yen; imports advanced 0.4% to 9.88 trillion yen.
Sales of semiconductor machinery soared 42.6%, and scientific and optical instruments advanced 11.8%; however, shipments of transportation equipment fell 4.4%.
Shipments to the U.S. declined 6.2%, to the European Union dropped 11.3%, but exports advanced to China by 1.5%, to India by 18.9%, to Russia by 52.8%, and to the ASEAN region by 7.5%.
Imports advanced for the seventh month in a row but rose at the slowest pace.
Imports of machinery rose 12.5%, chemical by 5.6%, but purchases of mineral fuels fell 11.5% from a year ago, respectively.
Trade deficit shrank to 461.25 billion yen from 702.8 billion yen a year ago, as exports rose faster than imports, but deficit expanded from 294.1 billion yen in September.
Japan Stock Movers
The Nikkei 225 Stock Average decreased 0.3% to 38,328.03, and the broader Topix index declined 0.3% to 38,328.03.
Seven & I Holdings increased 6.6% to ¥2,596.0 on reports that the founding family is looking to raise 8 trillion yen and take the retailer private by the end of this financial year in March.
Tokio Marine dropped 6.9% to ¥5,636.0 despite the insurance company raising its full-year net income outlook and announcing a stock buyback of up to 120 billion yen.
Net premiums written in the first half increased 5.7% from a year ago, reflecting higher rates; however, life insurance premiums plunged 32.9%.
Revenue in the first-half ending in September increased 16% to 4.34 trillion yen, net income attributable to shareholders soared 235% to 688.5 billion yen, and basic net income per share advanced to 351.38 yen from 103.38 yen a year earlier.
The company declared 81 yen per share earnings and forecast a total dividend of 162 yen per share in the current year, higher than 123 yen per share.
The company revised consolidated business forecasts and ordinary profit of 1,240.0 billion yen and 880.0 billion yen for net income attributable to owners of the parent.
The company projected full-year net premiums of 5.08 trillion yen and life insurance premiums of 890 billion yen.
The insurance company forecast net incurred losses related to natural catastrophes occurring during the period of 116 billion yen in Japan and 85 billion yen outside Japan.
SOMPO Holdings increased 11.8% to ¥3,984.0 after the insurance company reported strong financial performance in the first half, driven by higher premiums and investment gains.
Ordinary income increased 11.4% to 2.96 trillion yen from 2.65 trillion yen, and the insurance company estimated annual net income to decline.
Net premiums written increased by 8.3% to 2.26 billion yen, and investment income soared 51% to 386.76 billion yen, largely attributed to gains on sales of securities.
Basic earnings per share increased to 267.05 yen from 132.21 yen a year earlier.
Meanwhile, the net income attributable to shareholders almost doubled to 262.23 billion yen from 131.5 billion yen.
The company forecast net income attributable to shareholders in the current year to decline 3.9% to 400 billion yen and earnings per share of 412.27 yen.
PBoC Holds Steady Loan Prime Rates, China and HK Stocks Waver
Stock market indexes in China and Hong Kong lacked direction as investors debated the economic growth outlook and geopolitical situation.
The Hang Seng index inched up a fraction, and the mainland-focused CSI 300 index advanced 0.3%.
The People's Bank of China left its loan prime rates unchanged after lowering rates in the previous month.
The central bank held steady one-year loan prime rate at 3.1% and 5-year loan prime rate at 3.6%; both rates are used as reference rates for consumer and corporate loans.
Stock market indexes have been under pressure for the last six weeks after fiscal and monetary reforms failed to impress investors.
Moreover, corporate results in the latest earnings season have also shown growth of less than 1%, knocking down the expectations laid out by many international brokerage houses.
Stock market indexes in China and Hong Kong are likely to face more selling pressure in the coming weeks, as valuations do not reflect earnings and economic growth realities.
Moreover, the Chinese economy is in long-term economic decline, and annual growth rates are expected to ease to as low as 3% over the next three years.
Policymakers in Beijing have announced a slew of measures to revive the faltering property market, including a lower transaction tax, relaxing rules for first-time home buyers, and offering cheaper mortgage loans.
However, those measures have failed to provide support to developers to complete unfinished residential projects and bolster the financial strength of property companies.
Chinese manufacturing companies are also bracing for higher tariffs from the U.S. as the new administration works to impose tariffs of as much as 60%.
China Stock Movers
The Hang Seng index increased 0.05% to 19,674.23, and the CSI 300 index added 0.3% to 3,987.53.
Alibaba Group decreased 1.5% to HK $84.05, Tencent Holdings advanced 0.7% to HK $409.40, and JD.com decreased 0.07% to HK $137.10.
Baidu.com added 0.7% to HK $83.70 ahead of the company's quarterly financial results later today.
Xiaomi Corp. declined 2.5% to HK $27.55 and extended two-day losses to more than 5% despite the company lifting its annual electric vehicle delivery outlook a few days ago.
Hunan Xiangtou Goldsky Titanium Metal Co. Ltd. soared more than 310% to 29.32 yuan on the first day of trading after the company listed its stock on the Shanghai stock exchange.
Hunan Xiangtou Goldsky Titanium priced its offering at 7.16 per share and raised 662 million yuan.
- Scott Peters
- 20 Nov, 2024
- New York City
Target Corp. plunged 19% to $127.35 after the discount retailer reported weaker-than-expected quarterly results and guided a cautious outlook.
Total revenue in the fiscal third quarter ending on November 2 increased 1.1% to $25.66 billion from $25.39 billion, net income plunged 12.1% to $854 million from $971 million, and diluted earnings per share fell to $1.85 from $2.10 a year earlier.
The retailer forecast fourth quarter earnings per share between $1.85 and $2.45, sharply lower than the market expectation of at least $2.65, and full-year earnings per share between $8.30 and $8.90.
Comcast increased 1.7% to $43.05 after The Wall Street Journal said the company is planning to spinoff NBCUniversal cable TV networks, which generates annual revenue of about $7 billion.
The company's cable network portfolio includes, among other properties, MSNBC, CNBC, E!, Golf Channel, and USA.
Delta Air Lines decreased 0.01% to $64.76 after the company reiterated its fourth quarter earnings per share to range between $1.60 and $1.85, and the carrier estimated fiscal 2025 capacity to increase between 3% and 4%.
Nvidia Corp. jumped 0.6% to $147.76 ahead of the company's earnings later in the day, and investors anticipate third quarter earnings per share of 75 cents and revenue of $33.2 billion.
Powell Industries dropped 14.2% to $268.0 after the custom power solution provider reported better-than-expected quarterly results, but new orders fell short of market expectations.
Fiscal fourth quarter revenue jumped 32%, earnings soared 74%, and new orders in the fiscal year fell to $1.1 billion from $1.4 in the previous year.
Dolby Laboratories soared 11.5% to $81.19 after the audio and imaging technology provider reported better-than-expected quarterly earnings in the fiscal fourth quarter ending in September.
Revenue increased to $304.8 million from $290.5 million, net income advanced to $58.6 million from $9.2 million, and diluted earnings per share rose to 61 cents from 9 cents a year earlier.
Keysight Technologies soared 10.5% to $168.0 after the test equipment company reported better-than-expected fiscal-fourth quarter results.
Revenue declined 1.8% to $1.29 billion, net income swung to a loss of $73 million compared to a profit of $226 million, and diluted earnings per share were a loss of 42 cents compared to $1.28 a year earlier.
The company forecast first fiscal quarter 2025 revenue in the range of $1.265 billion to $1.285 billion, and Non-GAAP earnings per share between $1.65 and $1.71.
- Scott Peters
- 20 Nov, 2024
- New York City
Target Corp. plunged 19% to $127.35 after the discount retailer reported weaker-than-expected quarterly results and guided a cautious outlook.
Total revenue in the fiscal third quarter ending on November 2 increased 1.1% to $25.66 billion from $25.39 billion, net income plunged 12.1% to $854 million from $971 million, and diluted earnings per share fell to $1.85 from $2.10 a year earlier.
The retailer forecast fourth quarter earnings per share between $1.85 and $2.45, sharply lower than the market expectation of at least $2.65, and full-year earnings per share between $8.30 and $8.90.
Comcast increased 1.7% to $43.05 after The Wall Street Journal said the company is planning to spinoff NBCUniversal cable TV networks, which generates annual revenue of about $7 billion.
The company's cable network portfolio includes, among other properties, MSNBC, CNBC, E!, Golf Channel, and USA.
Delta Air Lines decreased 0.01% to $64.76 after the company reiterated its fourth quarter earnings per share to range between $1.60 and $1.85, and the carrier estimated fiscal 2025 capacity to increase between 3% and 4%.
Nvidia Corp. jumped 0.6% to $147.76 ahead of the company's earnings later in the day, and investors anticipate third quarter earnings per share of 75 cents and revenue of $33.2 billion.
Powell Industries dropped 14.2% to $268.0 after the custom power solution provider reported better-than-expected quarterly results, but new orders fell short of market expectations.
Fiscal fourth quarter revenue jumped 32%, earnings soared 74%, and new orders in the fiscal year fell to $1.1 billion from $1.4 in the previous year.
Dolby Laboratories soared 11.5% to $81.19 after the audio and imaging technology provider reported better-than-expected quarterly earnings in the fiscal fourth quarter ending in September.
Revenue increased to $304.8 million from $290.5 million, net income advanced to $58.6 million from $9.2 million, and diluted earnings per share rose to 61 cents from 9 cents a year earlier.
Keysight Technologies soared 10.5% to $168.0 after the test equipment company reported better-than-expected fiscal-fourth quarter results.
Revenue declined 1.8% to $1.29 billion, net income swung to a loss of $73 million compared to a profit of $226 million, and diluted earnings per share were a loss of 42 cents compared to $1.28 a year earlier.
The company forecast first fiscal quarter 2025 revenue in the range of $1.265 billion to $1.285 billion, and Non-GAAP earnings per share between $1.65 and $1.71.
- Barry Adams
- 20 Nov, 2024
- New York City
Stock market indexes inched higher in early trading as investors reviewed the latest earnings updates and awaited the release of quarterly results from tech giant Nvidia.
The S&P 500 index edged up 0.2%, and the Nasdaq Composite advanced 0.4%, and investors looked forward to details of Nvidia's earnings results.
Specifically, investors are looking to the company's plans to ramp up its production of the popular Blackwell chip and artificial intelligence spending trends.
Target Corp. plunged sharply after the company reported weaker-than-expected third quarter earnings, and the company's fourth quarter earnings outlook fell short of expectations.
Market sentiment improved after tensions between the U.S. and Russia appeared to ease following comments from Russia's foreign minister, Sergei Lavrov, indicating nuclear war could be averted.
Following Lavrov's comments, European markets rebounded and halted a three-day slide.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.1% to $5,944.50, the Nasdaq Composite added 0.1% to 18,768.24, and the Russell 2000 index inched higher 0.1% to 2,335.17.
The yield on 2-year Treasury notes edged higher to 4.31%, 10-year Treasury notes inched up to 4.42%, and 30-year Treasury bonds decreased to 4.61%.
WTI crude oil increased $0.53 to $69.77 a barrel, and natural gas prices edged up 11 cents to $3.14 a thermal unit.
Gold decreased by $2.44 to $2,632.63 an ounce, and silver decreased by $0.21 to $31.04.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 106.53.
U.S. Stock Movers
Target Corp. plunged 19% to $127.35 after the discount retailer reported weaker-than-expected quarterly results and guided a cautious outlook.
The retailer reported third quarter earnings per share of $1.85, and the company forecast fourth quarter earnings per share between $1.85 and $2.45, sharply lower than the market expectation of at least $2.65.
Comcast increased 1.7% to $43.05 after The Wall Street Journal said the company is planning to spinoff NBCUniversal cable TV networks, which generates annual revenue of about $7 billion.
The company's cable network portfolio includes, among other properties, MSNBC, CNBC, E!, Golf Channel, and USA.
Delta Air Lines decreased 0.01% to $64.76 after the company reiterated its fourth quarter earnings per share to range between $1.60 and $1.85, and the carrier estimated fiscal 2025 capacity to increase between 3% and 4%.
Nvidia Corp. jumped 0.6% to $147.76 ahead of the company's earnings later in the day, and investors anticipate third quarter earnings per share of 75 cents and revenue of $33.2 billion.
Powell Industries dropped 14.2% to $268.0 after the custom power solution provider reported better-than-expected quarterly results, but new orders fell short of market expectations.
Fiscal fourth quarter revenue jumped 32%, earnings soared 74%, and new orders in the fiscal year fell to $1.1 billion from $1.4 in the previous year.
Dolby Laboratories soared 11.5% to $81.19 after the audio and imaging technology provider reported better-than-expected quarterly earnings in the fiscal fourth quarter ending in September.
Revenue increased to $304.8 million from $290.5 million, net income advanced to $58.6 million from $9.2 million, and diluted earnings per share rose to 61 cents from 9 cents a year earlier.
- Barry Adams
- 20 Nov, 2024
- New York City
Stock market indexes inched higher in early trading as investors reviewed the latest earnings updates and awaited the release of quarterly results from tech giant Nvidia.
The S&P 500 index edged up 0.2%, and the Nasdaq Composite advanced 0.4%, and investors looked forward to details of Nvidia's earnings results.
Specifically, investors are looking to the company's plans to ramp up its production of the popular Blackwell chip and artificial intelligence spending trends.
Target Corp. plunged sharply after the company reported weaker-than-expected third quarter earnings, and the company's fourth quarter earnings outlook fell short of expectations.
Market sentiment improved after tensions between the U.S. and Russia appeared to ease following comments from Russia's foreign minister, Sergei Lavrov, indicating nuclear war could be averted.
Following Lavrov's comments, European markets rebounded and halted a three-day slide.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.1% to $5,944.50, the Nasdaq Composite added 0.1% to 18,768.24, and the Russell 2000 index inched higher 0.1% to 2,335.17.
The yield on 2-year Treasury notes edged higher to 4.31%, 10-year Treasury notes inched up to 4.42%, and 30-year Treasury bonds decreased to 4.61%.
WTI crude oil increased $0.53 to $69.77 a barrel, and natural gas prices edged up 11 cents to $3.14 a thermal unit.
Gold decreased by $2.44 to $2,632.63 an ounce, and silver decreased by $0.21 to $31.04.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 106.53.
U.S. Stock Movers
Target Corp. plunged 19% to $127.35 after the discount retailer reported weaker-than-expected quarterly results and guided a cautious outlook.
The retailer reported third quarter earnings per share of $1.85, and the company forecast fourth quarter earnings per share between $1.85 and $2.45, sharply lower than the market expectation of at least $2.65.
Comcast increased 1.7% to $43.05 after The Wall Street Journal said the company is planning to spinoff NBCUniversal cable TV networks, which generates annual revenue of about $7 billion.
The company's cable network portfolio includes, among other properties, MSNBC, CNBC, E!, Golf Channel, and USA.
Delta Air Lines decreased 0.01% to $64.76 after the company reiterated its fourth quarter earnings per share to range between $1.60 and $1.85, and the carrier estimated fiscal 2025 capacity to increase between 3% and 4%.
Nvidia Corp. jumped 0.6% to $147.76 ahead of the company's earnings later in the day, and investors anticipate third quarter earnings per share of 75 cents and revenue of $33.2 billion.
Powell Industries dropped 14.2% to $268.0 after the custom power solution provider reported better-than-expected quarterly results, but new orders fell short of market expectations.
Fiscal fourth quarter revenue jumped 32%, earnings soared 74%, and new orders in the fiscal year fell to $1.1 billion from $1.4 in the previous year.
Dolby Laboratories soared 11.5% to $81.19 after the audio and imaging technology provider reported better-than-expected quarterly earnings in the fiscal fourth quarter ending in September.
Revenue increased to $304.8 million from $290.5 million, net income advanced to $58.6 million from $9.2 million, and diluted earnings per share rose to 61 cents from 9 cents a year earlier.
- Bridgette Randall
- 20 Nov, 2024
- London
European markets rebounded after tensions between the U.S. and Russia appeared to ease, and investors debated future rate paths.
Benchmark indexes in Paris, Frankfurt, Milan, and London edged slightly higher, but they traded in a tight range.
Market sentiment recovered after Russia's foreign minister, Sergei Lavrov, said all efforts would be made to avoid a nuclear confrontation and the U.S. restrained from updating its nuclear policy.
UK Consumer Price Inflation Accelerated
Consumer price inflation in the U.K. accelerated more than expected in October, according to the latest data released by the Office for National Statistics.
Annual inflation accelerated to a six-month high of 2.3% in October from 1.7% in September, driven by a 5.5% jump in housing and household services, a 4.3% increase in restaurants and hotels, and a 5% rise in prices for services.
However, food inflation was steady at 1.9%.
Annual core inflation, which excludes volatile food and energy prices, accelerated to 3.3% from 3.2%.
Germany's Producer Price Deflation Extends to 16th Month in October
Producer prices in Germany declined for the sixteenth month in a row, driven by a sharp drop in energy prices, the Federal Statistical Office, or Destatis, reported Wednesday.
Producer prices declined 1.1% from a year ago in October, easing from a 1.4% in the previous month.
Excluding energy, producer prices rose 1.3% from a year ago.
Capital goods prices rose 2.0%, consumer goods prices advanced 1.9%, durable goods rose 0.9%, and intermediate goods edged up 0.4%.
On a monthly basis, producer prices increased by 0.2%, rebounding from a 0.5% decrease in September.
Europe Indexes and Yields
The DAX index increased by 0.2% to 19,107.86; the CAC-40 index advanced by 0.2% to 7,242.55; and the FTSE 100 index rose by 0.1% to 8,104.60.
The yield on 10-year German bonds edged higher to 2.36%, French bonds inched up to 3.10%, the UK gilts edged higher to 4.49%, and Italian bonds increased to 3.58%.
The euro edged lower to $1.05; the British pound inched down to $1.26; and the U.S. dollar strengthened to 88.61 Swiss cents.
Brent crude increased $0.16 to $73.48 a barrel, and the Dutch TTF natural gas rose by €0.18 to €46.08 per MWh.
Europe Stock Movers
Sage Group PLC soared 19% to 1,281.50 pence after the enterprise resource planning software company reported strong full-year financial results and announced a new stock repurchase plan.
La Francaise des Jeux SA dropped 4.2% to €37.70 after Credit Agricole announced plans to sell a 2.2% stake in the lottery operator in France.
Bank and construction stocks were among the leading gainers as investors unwound safe-haven trades following the easing of tensions between the U.S. and Russia.
UniCredit SpA increased 0.3% to €38.87, Credit Agricole SA advanced 0.2% to €13.38, BNP Paribas decreased 0.7% to €58.89, Deutsche Bank advanced 0.9% to €16.04, and Barclays advanced 1% to 258.50 pence.
Partners Group Holding AG advanced 1.1% to CHF 1,222.0 after the Swiss private equity group acquired a majority stake in Spain-based hospitality platform Bluesea Hotels.
- Bridgette Randall
- 20 Nov, 2024
- London
European markets rebounded after tensions between the U.S. and Russia appeared to ease, and investors debated future rate paths.
Benchmark indexes in Paris, Frankfurt, Milan, and London edged slightly higher, but they traded in a tight range.
Market sentiment recovered after Russia's foreign minister, Sergei Lavrov, said all efforts would be made to avoid a nuclear confrontation and the U.S. restrained from updating its nuclear policy.
UK Consumer Price Inflation Accelerated
Consumer price inflation in the U.K. accelerated more than expected in October, according to the latest data released by the Office for National Statistics.
Annual inflation accelerated to a six-month high of 2.3% in October from 1.7% in September, driven by a 5.5% jump in housing and household services, a 4.3% increase in restaurants and hotels, and a 5% rise in prices for services.
However, food inflation was steady at 1.9%.
Annual core inflation, which excludes volatile food and energy prices, accelerated to 3.3% from 3.2%.
Germany's Producer Price Deflation Extends to 16th Month in October
Producer prices in Germany declined for the sixteenth month in a row, driven by a sharp drop in energy prices, the Federal Statistical Office, or Destatis, reported Wednesday.
Producer prices declined 1.1% from a year ago in October, easing from a 1.4% in the previous month.
Excluding energy, producer prices rose 1.3% from a year ago.
Capital goods prices rose 2.0%, consumer goods prices advanced 1.9%, durable goods rose 0.9%, and intermediate goods edged up 0.4%.
On a monthly basis, producer prices increased by 0.2%, rebounding from a 0.5% decrease in September.
Europe Indexes and Yields
The DAX index increased by 0.2% to 19,107.86; the CAC-40 index advanced by 0.2% to 7,242.55; and the FTSE 100 index rose by 0.1% to 8,104.60.
The yield on 10-year German bonds edged higher to 2.36%, French bonds inched up to 3.10%, the UK gilts edged higher to 4.49%, and Italian bonds increased to 3.58%.
The euro edged lower to $1.05; the British pound inched down to $1.26; and the U.S. dollar strengthened to 88.61 Swiss cents.
Brent crude increased $0.16 to $73.48 a barrel, and the Dutch TTF natural gas rose by €0.18 to €46.08 per MWh.
Europe Stock Movers
Sage Group PLC soared 19% to 1,281.50 pence after the enterprise resource planning software company reported strong full-year financial results and announced a new stock repurchase plan.
La Francaise des Jeux SA dropped 4.2% to €37.70 after Credit Agricole announced plans to sell a 2.2% stake in the lottery operator in France.
Bank and construction stocks were among the leading gainers as investors unwound safe-haven trades following the easing of tensions between the U.S. and Russia.
UniCredit SpA increased 0.3% to €38.87, Credit Agricole SA advanced 0.2% to €13.38, BNP Paribas decreased 0.7% to €58.89, Deutsche Bank advanced 0.9% to €16.04, and Barclays advanced 1% to 258.50 pence.
Partners Group Holding AG advanced 1.1% to CHF 1,222.0 after the Swiss private equity group acquired a majority stake in Spain-based hospitality platform Bluesea Hotels.
- Akira Ito
- 20 Nov, 2024
- Tokyo
Stock market indexes in Tokyo advanced, and the yen resumed its downward slide amid the rate path and ongoing worries of impending trade tariffs.
The Nikkei 225 stock average and the Topix index turned lower after struggling to stay above the flatline in the early morning trading.
Market indexes are facing headwinds over the last three weeks as the Bank of Japan signals a gradual increase in interest rates and ends a decade of unconventional interest rate policy.
Market jitters were compounded by the ongoing political instability after the ruling coalition of LDP-Komeito parties lost its majority in the lower house of Diet, complicating policy priorities.
So far in the year to Tuesday, the Nikkei 225 stock average has gained 14.9%, and the benchmark index has advanced for the second consecutive year in a row, largely driven by foreign fund inflow in the hopes of corporate reforms.
Market sentiment has been cautious amid a sharp escalation of tensions between the U.S. and Russia after Ukraine launched American-made missiles striking towns near the border with Russia.
Following the strike, Russia's president Vladimir Putin lowered the threshold for a retaliatory nuclear strike, sharply escalating tensions in the region.
The yen resumed its slide and eased to 155.28 after investors overlooked the latest verbal intervention by officials at the ministry of finance.
Currency traders are looking for the yen to trade as low as 165 against the U.S. dollar by the end of the current fiscal year.
Japan's Trade Deficit Shrank in October
Japan's international trade balance recorded its fourth consecutive deficit as imports continue to surpass exports, the Ministry of Finance said on Wednesday.
Japan's exports in October increased 3.1% from a year ago to a three-month high of 9.4 trillion yen; imports advanced 0.4% to 9.88 trillion yen.
Sales of semiconductor machinery soared 42.6%, and scientific and optical instruments advanced 11.8%; however, shipments of transportation equipment fell 4.4%.
Shipments to the U.S. declined 6.2%, to the European Union dropped 11.3%, but exports advanced to China by 1.5%, to India by 18.9%, to Russia by 52.8%, and to the ASEAN region by 7.5%.
Imports advanced for the seventh month in a row but rose at the slowest pace.
Imports of machinery rose 12.5%, chemical by 5.6%, but purchases of mineral fuels fell 11.5% from a year ago, respectively.
Trade deficit shrank to 461.25 billion yen from 702.8 billion yen a year ago, as exports rose faster than imports, but deficit expanded from 294.1 billion yen in September.
Japan Stock Movers
The Nikkei 225 Stock Average decreased 0.3% to 38,328.03, and the broader Topix index declined 0.3% to 38,328.03.
Seven & I Holdings increased 6.6% to ¥2,596.0 on reports that the founding family is looking to raise 8 trillion yen and take the retailer private by the end of this financial year in March.
Tokio Marine dropped 6.9% to ¥5,636.0 despite the insurance company raising its full-year net income outlook and announcing a stock buyback of up to 120 billion yen.
Net premiums written in the first half increased 5.7% from a year ago, reflecting higher rates; however, life insurance premiums plunged 32.9%.
Revenue in the first-half ending in September increased 16% to 4.34 trillion yen, net income attributable to shareholders soared 235% to 688.5 billion yen, and basic net income per share advanced to 351.38 yen from 103.38 yen a year earlier.
The company declared 81 yen per share earnings and forecast a total dividend of 162 yen per share in the current year, higher than 123 yen per share.
The company revised consolidated business forecasts and ordinary profit of 1,240.0 billion yen and 880.0 billion yen for net income attributable to owners of the parent.
The company projected full-year net premiums of 5.08 trillion yen and life insurance premiums of 890 billion yen.
The insurance company forecast net incurred losses related to natural catastrophes occurring during the period of 116 billion yen in Japan and 85 billion yen outside Japan.
SOMPO Holdings increased 11.8% to ¥3,984.0 after the insurance company reported strong financial performance in the first half, driven by higher premiums and investment gains.
Ordinary income increased 11.4% to 2.96 trillion yen from 2.65 trillion yen, and the insurance company estimated annual net income to decline.
Net premiums written increased by 8.3% to 2.26 billion yen, and investment income soared 51% to 386.76 billion yen, largely attributed to gains on sales of securities.
Basic earnings per share increased to 267.05 yen from 132.21 yen a year earlier.
Meanwhile, the net income attributable to shareholders almost doubled to 262.23 billion yen from 131.5 billion yen.
The company forecast net income attributable to shareholders in the current year to decline 3.9% to 400 billion yen and earnings per share of 412.27 yen.