- Bridgette Randall
- 12 Feb, 2024
- Frankfurt
European markets advanced in Monday's trading and attempted to extend gains from the previous week.
Market indexes in London, Paris, and Frankfurt gained quiet trading, and investors prepared for a busy week of corporate results and earnings releases.
Financial markets in Japan were closed to celebrate a public holiday and Greater China, South Korea, Malaysia, and Singapore were closed for the Lunar New Year.
Investors are looking ahead to the release of GDP estimates in the Euro Area and the UK and employment, retail sales, and inflation data in the UK.
European markets struggled in the previous week's trading, and investors lowered their rate-cut expectations, but worries about domestic retail sales and export growth overshadowed market sentiment.
Last week, economic data from the Federal Statistics Office in Germany showed factory orders declined 1.5% in 2023 from a year ago and exports fell 1.4% from a year ago amid weak global demand.
Germany, the largest economy in the Euro Area, contracted 0.3% in 2023, and the economic weakness is likely to persist in the first and second quarters of 2024.
Moreover, the German economy is likely to enter a technical recession as the high cost of living and elevated interest rates are negatively impacting consumer demand and small and medium-sized businesses, the backbone of the German economy.
Despite the market jitters of the last three weeks, benchmark indexes are trading near record highs, and corporate earnings are ahead of market expectations.
Europe Indexes and Yields
The DAX index increased 0.5% to 17,004.46, the CAC-40 index rose 0.6% to 7,690.85, and the FTSE 100 index inched lower by 0.1% to 7,565.23.
The yield on 10-year German bonds edged down to 2.34%; French bonds inched lower to 2.84%; the UK gilts edged lower to 4.04%; and Italian bonds inched higher to 3.90%.
The euro edged lower to $1.077, the British pound inched higher to $1.262, and the U.S. dollar gained to 87.50 Swiss cents.
Brent crude decreased $0.79 to $81.38 a barrel, and the Dutch TTF natural gas decreased by €0.84 to €28.28 per MWh.
Europe Stock Movers
Tod's SpA soared 18% to €42.92 after the LVMH-backed private equity group Catterton announced its plans to acquire a 36% stake in the Italian luxury fashion accessories maker.
Nordex SE increased 7.9% to €10.25 after the German wind turbine maker reported 2023 sales that surpassed its own estimate.
Consolidated revenue increased to €6.5 billion, exceeding its own target range between €5.6 billion and €6.1 billion.
Novo Nordisk A/S increased 0.3% to DKK 834.60 after the controlling shareholder in the company said it plans to invest up to $7 billion by 2030.
Tritax Big Box PLC decreased 2.5% to 156.0 pence after the UK-based real estate investment trust agreed to acquire UK Commercial Property REIT Ltd.
Tritax will exchange 0.444 of its own share for one share of UKCM.
- Arjun Pandit
- 12 Feb, 2024
- Mumbai
Across Asia, markets in mainland China, Hong Kong, Taiwan, South Korea, Malaysia, and Singapore are close for the celebration of Lunar New Year, and in Japan, it is National Foundation Day.
In Friday's trading, market indexes in New York advanced as investors looked beyond interest rate uncertainty and shifted their focus to resilient consumer spending and a healthy labor market.
Surging Exports to Lift Japan's GDP Growth
Japan's economy is likely to show an expansion in rising exports of vehicles and electronic goods, according to the Tokyo-based Japan Center for Economic Research.
The independent research company estimated 0.8% growth in Japan's economy in December from the previous month, despite the persistent weakness in domestic consumption.
The center also estimated the GDP expanded by 2.6% in the December quarter from the previous quarter on a solid performance of exports.
The government is set to release its preliminary estimate on February 15.
India-based GMR Leads Manila Airport Project Bidding
India-based GMR is viewed as a front-runner for a $3.0 billion project to upgrade Manila's Ninoy Aquino International Airport, which currently handles 48 million passengers a year.
The government is set to announce the winner of the project on February 15, and GMR's bid is considered a top contender for the project, beating three other local consortiums of bidders, according to sources in transportation ministry of Philippines.
Philippines has short listed three out of the four qualified bids, and the winner of the project is scheduled to be announced on February.
If GMR wins the bid, this will be the third airport project in the Philippines, after winning the projects to develop and operate Cebu International Airport in 2014 and Clark International Airport in 2019.
France-based Airports de Paris, the operator of three large airports in France, is looking to acquire a 49% stake in GMR.
Market indexes in Mumbai struggled to advance in Monday's trading despite optimism about upcoming earnings releases and positive international market sentiment.
The Sensex and the Nifty indexes advanced, and investors are looking ahead to a busy week of earnings and economic data.
On the earnings front, Mahindra & Mahindra, IRCTC, Coal India, SAIL, and Bharat Forge are some of the leading companies scheduled to release their quarterly results this week.
Among economic releases, market participants are also looking forward to the release of the international trade balance, industrial output, and overall inflation.
The Sensex index decreased 122.22 points to 71,473.27, and the Nifty index fell 14.05 points to 21,768.45.
On the Mumbai stock exchange, 229 stocks traded at their 52-week highs and 21 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds held steady at 7.08%, and the Indian rupee strengthened to ₹82.96 against the U.S. dollar.
Navin Fluorine International gained 0.7% to ₹3,049.35 after the Life Insurance Company, through its various funds, increased its stake in the company to 7.07% from 5.03%.
ONGC declined 2.3% to ₹261.40 after the energy explorer reported a decline in earnings in its latest quarter.
Net profit in the December quarter dropped 10% to ₹10,356 crore from ₹11,489 crore a year ago.
- Arun Goswami
- 12 Feb, 2024
- Mumbai
Stocks in Mumbai looked down in Monday's trading, and investors looked forward to a fresh batch of earnings and economic updates.
The Sensex index decreased 122.22 points to 71,473.27, and the Nifty index fell 14.05 points to 21,768.45.
On the Mumbai stock exchange, 229 stocks traded at their 52-week highs and 21 stocks traded at their 52-week lows.
Railtel Corporation of India advanced 0.2% to ₹394.10 after the company received a ₹18.2 crore order from the defense ministry.
Navin Fluorine International gained 0.7% to ₹3,049.35 after the Life Insurance Company, through its various funds, increased its stake in the company to 7.07% from 5.03%.
Easy Trip Planners increased 3.5% to ₹52.95 after the company's board lent its support for building a luxury hotel at a site near Ram Mandir in Ayodhya, Uttar Pradesh, through a ₹100 crore investment in Jeewani Hospitality Private Limited.
Indian Railway Catering and Tourism Corporation advanced 0.2% to ₹941.40 ahead of the company's quarterly results this week, and the company prepared to launch its online payment app.
Orient Press soared 14% to ₹124.95 after the company announced its plan to venture into the candle manufacturing business.
ONGC declined 2.3% to ₹261.40 after the energy explorer reported a decline in earnings in its latest quarter.
Net profit in the December quarter dropped 10% to ₹10,356 crore from ₹11,489 crore a year ago.
Apex Frozen Foods dropped 13.6% to ₹224.95 after the company reported a decline in profit in its latest quarterly results.
Bandhan Bank declined 5% to ₹205.0 after the financial services provider said net profit in the December quarter more than doubled from a year ago to ₹733 crore.
- Scott Peters
- 09 Feb, 2024
- New York City
Cloudflare jumped 25.3% to $113.50 after the cyber security online content distribution network company reported quarterly results and estimates that surpassed market expectations.
Total revenue increased 33% to $362.4 million from $274.7 million, net loss shrank to $27.9 million from $45.9 million, and diluted loss per share dropped to 8 cents from 14 cents a year ago.
The company won larger deals from existing and new customers, driving its annual contact value to record highs.
Ingles Markets declined 4.2% to $78.38 after the discount grocery store operator reported a slight decline in quarterly sales and a sharp decline in earnings.
Revenue in the fiscal first quarter ending on December 30 declined 0.8% to $1.48 billion from $1.49 billion in the quarter ending on December 24, 2023; net income dropped to $43.4 million from $69.4 million; and diluted earnings per share fell to $2.28 from $3.65 a year ago.
PepsiCo decreased 1% to $172.20 after the food and beverage maker reported mixed quarterly results and said food and beverage volumes declined in its North American unit.
Net revenue in the fourth quarter declined 0.5% to $27.85 billion from $27.99 billion, net income advanced to $1.3 billion from $518 million, and diluted earnings per share rose to 94 cents from 37 cents a year ago.
Volumes in the fourth quarter in its beverage unit declined 6%, Quaker Foods fell 8%, and Frito-Lay eased 2%.
PepsiCo hiked its quarterly dividend by 10% to $1.265 per share, payable to shareholders of record on March 1 and on April 1.
PepsiCo has paid consecutive quarterly dividends since 1965, and 2023 marked the 51st consecutive annual dividend increase.
In 2024, the company plans to return $8.2 billion to shareholders, comprised of $7.2 billion in dividends and $1.0 billion in stock repurchases.
The beverage and food maker also estimated that organic revenue in 2024 will increase by 4%, with at least an 8% increase in constant currency earnings per share.
Based on the company's assumptions and guidance, core earnings per share in 2024 are estimated to increase by 7% to $8.15 from $7.62 a year ago.
Ralph Lauren increased 1.8% to $175.01 after the fashion apparel and accessories maker reported better-than-expected quarterly results.
Revenue in the fiscal third quarter ending in December increased 6% to $1.9 billion from $1.8 billion, net income advanced to $276.6 million from $216.5 million, and diluted earnings per share rose to $4.19 from $3.20 a year ago.
Inventories at the end of the third quarter declined 15% to $1.1 billion, with the planned decline in North America and Europe offsetting the slight increase in Asia to support growth initiatives.
Sales struggled in North America, rebounded in Europe after the lapping of wholesale discounts offered last year, and surged in Asia.
North American sales were flat at $993 million, and comparable store sales at retail outlets increased by 5%, driven by a 6% increase in physical store sales and a 4% rise in online sales.
Revenue in Europe surged 11% to $522 million, driven by 11% in comparable store sales after physical stores rose 11% and online sales advanced 12%.
Revenue in Asia increased 16% to $446 million, driven by a 14% advance in comparable store sales, a 13% rise in physical store sales, and a 25% surge in online sales.
The company reiterated its full-year fiscal 2024 outlook of low-single-digit revenue growth and returned $425 million to shareholders through dividends and stock repurchases in the fiscal year to date.
- Barry Adams
- 09 Feb, 2024
- New York City
Benchmark indexes on Wall Street rested in Friday's trading after a busy week of earnings.
The S&P 500 index and the Nasdaq Composite gained 0.3% in early trading, and investors looked beyond rate uncertainty and focused on a resilient economy and disinflation.
Market indexes are expected to extend gains for the fifth week in a row after more than half of the companies included in the S&P 500 reported better-than-expected earnings.
The S&P 500 index last closed above the 4,000 mark on April 1, 2021, and it took another three years to add the next 1,000 points.
For the week, the WS&P 500 index is up 0.8%, and the Nasdaq Composite is trading higher by 1.1%.
Tech stocks are expected to lead the market indexes higher in Friday's trading.
U.S. indexes and yields
The S&P 500 index decreased 0.3% to 5,034.12, and the Nasdaq Composite rose 0.4% to 15,864.48.
The yield on 2-year Treasury notes increased to 4.48%, 10-year Treasury notes rose to 4.17%, and 30-year Treasury bonds edged up to 4.37%.
Natural gas prices dropped to a 3-year low after the latest weekly report from the Energy Information Administration indicated smaller-than-expected inventory withdrawals last week.
WTI crude oil decreased $0.19 to $76.01 a barrel, and natural gas prices declined 6 cents to $1.85 a thermal unit, a low last seen in September 2020.
Gold decreased by $6.58 to $2,026.81 an ounce and extended the previous week's gains after the U.S. dollar gained in international trading.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 104.19.
U.S. Stock Movers
Cloudflare jumped 25.3% to $113.50 after the cyber security online content distribution network company reported quarterly results and estimates that surpassed market expectations.
The company won larger deals from existing and new customers, driving its annual contact value to record highs.
PepsiCo decreased 1% to $172.20 after the food and beverage maker reported mixed quarterly results and said food and beverage volumes declined in its North American unit.
Volumes in its beverage unit declined 6%, Quaker Foods fell 8%, and Frito-Lay eased 2%.
- Inga Muller
- 09 Feb, 2024
- Frankfurt
European markets extended weekly gains in quiet trading on Friday after a busy week of earnings results.
The DAX index increased 0.05% to 16,973.47, the CAC-40 index fell 0.2% to 7,653.92, and the FTSE 100 index inched higher by 0.1% to 7,605.52.
The yield on 10-year German bonds edged up to 2.35%; French bonds inched higher to 2.86%; the UK gilts edged higher to 4.05%; and Italian bonds inched higher to 3.93%.
Tesco PLC rose 1% to 283.30 pence after the UK-based grocery retailer said it agreed to sell its banking and financial services operation to Barclays.
Hermes SCA jumped 4.4% to €2,166.50 after the luxury fashion accessories retailer reported fourth-quarter sales surged 17.5% and announced plans to raise prices.
L'Oreal decreased 5.7% to €427.05 after the French personal care product maker reported lower-than-expected fourth-quarter sales.
Orange SA declined 0.1% to €10.58 after the French wireless telecom carrier swung to a pre-tax loss of 2.2 million in 2023 from a profit of 81.6 million a year ago.
Bellway plc edged up 0.1% to 2,812.0 pence after the UK-based home builder reported weak revenue in the first half, reflecting lower home prices and fewer completions.
Total housing revenue in the period declined to £1.25 billion from £1,804.9 million a year ago.
Total housing completions fell to 4,092 homes from 5,695 at an average selling price of £309,300 compared to £316,929.
At the end of January, the company's order backlog of homes was 3,970 compared to 5,108, with a value of £1,012.5 million compared to £1,386.8 million a year ago, respectively.
The home builder estimated home completions of around 7,500 homes at the end of the financial year in July, lower than 10,945 homes a year ago.
"Affordability steadily improved throughout the period, driven by wage increases, the easing of consumer price inflation and a gradual reduction in mortgage interest rates," the company said in a statement to investors.
Ubisoft Entertainment soared 18% to €23.53 after the French video game publisher reported fiscal third quarter sales ahead of its own target.
Carl Zeiss Meditec jumped 5.4% to €111.65, despite the German company reporting a decline in pre-tax operating earnings in the first quarter.
Revenue in the fiscal first quarter increased 1% to €475.0 million from €470.3 million a year ago.
The order backlog normalized to around €315 million.
Earnings before interest and taxes declined to around €43.5 million from €60.3 million, and the EBIT margin eased to 9.2% from 12.8% a year ago.
Ceconomy declined 2.4% to €2.06 after the German electronics retailer reported that fiscal first quarter sales slightly declined to €7 billion.
- Bridgette Randall
- 09 Feb, 2024
- Frankfurt
European markets traded in a tight range after a busy week of earnings and economic updates.
Benchmark indexes in Frankfurt, Paris, and London edged higher in Friday's trading, and bond yields hovered near a 2-month high after investors unwound expectations of an imminent rate cut in the U.S. and the Euro Area.
Crude oil traded volatile amid elevated tensions in the Middle East after a week ago the US and UK struck down several targets controlled by groups allied with Iran.
On the earnings front, L'Oreal, Hermes, Orange, Tesco, and Carl Zeiss Meditec were in focus after the companies released their earnings.
German Inflation Confirmed at a 30-month Low
Germany's consumer price inflation in January was confirmed at 2.9%, the Federal Statistics Office or Destatis, reported Friday.
Overall inflation in January eased from 3.7% in December, and matched the initial estimate released on January 31.
Inflation declined to the lowest level since June 2021, when prices rose 2.4%.
Europe Indexes and Yields
The DAX index increased 0.05% to 16,973.47, the CAC-40 index fell 0.2% to 7,653.92, and the FTSE 100 index inched higher by 0.1% to 7,605.52.
The yield on 10-year German bonds edged up to 2.35%; French bonds inched higher to 2.86%; the UK gilts edged higher to 4.05%; and Italian bonds inched higher to 3.93%.
The euro edged lower to $1.076, the British pound inched higher to $1.260, and the U.S. dollar gained to 87.55 Swiss cents.
Brent crude decreased $0.10 to $81.52 a barrel, and the Dutch TTF natural gas decreased by €0.50 to €27.52 per MWh.
Europe Stock Movers
Tesco PLC rose 1% to 283.30 pence after the UK-based grocery retailer said it agreed to sell its banking and financial services operation to Barclays.
Hermes SCA jumped 4.4% to €2,166.50 after the luxury fashion accessories retailer reported fourth-quarter sales surged 17.5% and announced plans to raise prices.
L'Oreal decreased 5.7% to €427.05 after the French personal care product maker reported lower-than-expected fourth-quarter sales.
Orange SA declined 0.1% to €10.58 after the French wireless telecom carrier swung to a pre-tax loss of 2.2 million in 2023 from a profit of 81.6 million a year ago.
- Arjun Pandit
- 09 Feb, 2024
- Mumbai
In Asia, market indexes in Japan advanced 1%, and the benchmark indexes surpassed 37,000, a new 34-year high, in the hopes that the Bank of Japan is not ready to hike interest rates.
The Bank of Japan Deputy Governor Shinchi Uchida clarified that the central bank is not ready to increase rates aggressively even when the monetary stance is revised and the rate hike campaign begins.
The Nikkei 225 index gained 0.2% to 36,951.38 and cross 37,000 in intra-day trading for the first time since 1990.
The Nikkei index advanced 2.5% this week and extend its gain for the year so far to 11%.
SoftBank soared 9% to ¥8,016.0 after the company's US-listed British chipmaker Arm Holdings reported revenue in its latest quarter that surpassed the company's expectations.
SoftBank owns about 90% of Arm Holdings.
Tech stocks in Tokyo trading advanced following the surge in SoftBank, and Renesas Electronics, Screen Holdings, and Keyence jumped between 0.5% and 5.5%.
Nissan Motor plunged 11.3% to ¥554.40 after the Japanese automaker highlighted its business difficulties in China and lowered its annual unit sales estimate.
Nissan retained its fiscal year operating income to 620 billion yen, and a more profitable product mix is expected to offset its decline in annual vehicle sales outlook to 3.55 million from 3.7 million.
The Japanese automaker is facing intense price competition in China, and vehicle sales dropped 26% in the first nine months of the fiscal year, offset by a 19% increase in sales to 247,000 in the final quarter ending in December after the company improved regional focus to improve electric vehicle sales.
Hong Kong Indexes Extend 3-Day Losses Ahead of Lunar New Year Holidays
Markets in mainland China, Taiwan, South Korea, and Indonesia are closed for Lunar New Year holidays.
The Hang Seng index in Hong Kong declined 1% and extended losses for the third day after a short-lived market enthusiasm fizzled following the market reform announcements and intervention by China.
Financial markets will be closed Friday and all next week in mainland China, and markets in Hong Kong will close after mid-day Friday and resume trading on Wednesday, February 14.
Alibaba Group, Baidu, JD.com, Tencent, and Meituan declined between 1% and 2.5% amid weakness in tech stocks ahead of the long weekend.
Longfor Group, China Resources Land, and China Vanke dropped between 2.5% and 7%.
India Indexes Trim Weekly Gains
Stocks in Mumbai traded down, and investors reacted to the latest batch of mixed earnings.
The Sensex and the Nifty indexes turned lower and extended weekly losses a day after the Reserve Bank of India held its key lending rates.
Market sentiment was weak after the central bank cited underlying inflation risks and cautioned that prices could flare up because of the ongoing conflicts in the Middle East impacting ocean freight traffic in the Red Sea Lanes.
Investors also reacted to mixed earnings from LIC, JK Lakshmi, Grasim, SKF India, Apollo Hospitals, Balrampur Chini Mills, and Zomato.
Telecom stocks were in focus after the Union Cabinet approved the auction of wireless spectrum amounting to a cumulative reserve price of ₹96,317 crore.
The Sensex index decreased 108.11 points to 71,317.57, and the Nifty index fell 63.40 points to 21,655.55.
On the Mumbai stock exchange, 297 stocks traded at their 52-week highs and 28 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds held steady at 7.08%, and the Indian rupee strengthened ₹82.96 against the U.S. dollar.
Life Insurance Corp. gained 6.5% to ₹1,112.0 after the company reported its quarterly results.
Net premium income in the December quarter increased 4.6% to ₹1.16 lakh crore, and net profit rose 49.10% to ₹9,444 crore.
Zomato Ltd. added 1.4% to ₹142.0 after the food delivery company reported its latest quarterly results.
Total revenue in the December quarter jumped 69% to ₹3,288 crore, and the company swung to a consolidated net profit of ₹138 crore from a loss of ₹90.98 crore a year ago.
- Arun Goswami
- 09 Feb, 2024
- Mumbai
Stocks in Mumbai struggled to advance in Friday's trading, and bond yields held firm a day after the Reserve Bank of India held its key lending rates steady.
The Sensex index increased 321.42 points to 72,473.42, and the Nifty index gained 79.15 points to 22,009.85.
On the Mumbai stock exchange, 194 stocks traded at their 52-week highs and 5 stocks traded at their 52-week lows.
Life Insurance Corp. gained 6.5% to ₹1,112.0 after the company reported its quarterly results.
Net premium income in the December quarter increased 4.6% to ₹1.16 lakh crore, and net profit rose 49.10% to ₹9,444 crore.
JSW Steel declined 1.8% to ₹822.0, and the company finalized its 50:50 joint venture with the Japan-based JFE in JSW Electrical Steel Pvt. Ltd.
Zomato Ltd. added 1.4% to ₹142.0 after the food delivery company reported its latest quarterly results.
Total revenue in the December quarter jumped 69% to ₹3,288 crore, and the company swung to a consolidated net profit of ₹138 crore from a loss of ₹90.98 crore a year ago.
JK Lakshmi declined 1.1% to ₹915.0 after the cement maker reported quarterly results.
Consolidated profit in the December quarter increased 93.9% to ₹150.2 crore, and the company declared an interim dividend of ₹21 per share to shareholders on record on February 21.
Power Finance decreased 8.1% to ₹430.40 after the company reported quarterly results and declared an interim dividend.
Revenue in the December quarter rose 20% to ₹23,571.8 crore from ₹19,639 crore, and net income soared 23% to ₹4,727.4 crore from ₹3,860.3 crore a year ago.
The company also announced its second interim dividend of ₹3.50 per share.
Lupin Ltd. increased 1.8% to ₹1,636.35 after the company reported its latest quarterly results.
Revenue from operations in the December quarter increased 20.2% to ₹5,197.4 crore from ₹4,322.2 crore, and net income soared 300% to ₹613.1 crore from ₹153.4 crore a year ago, respectively.
United Breweries increased 2.5% to ₹1,799.95 after the alcoholic beverage company reported its quarterly results.
Revenue in the December quarter increased 12.2% to ₹4,155 crore and net income swung to a profit of ₹85.34 crore compared to a loss of ₹1.97 core in the corresponding period a year ago.
Aster DM Healthcare decreased 1.3% to ₹435.20 after the healthcare company active in India and the Middle East reported its quarterly results.
Consolidated profit in its December quarter rose 28.6% from a year ago to ₹179.2 crore.
Bombay Dyeing and Manufacturing declined 6% to ₹174.45 after the ready-to-use textile company reported quarterly results.
Consolidated revenue in the December quarter declined to ₹386.4 crore from ₹658.2 crore, net income soared to ₹3,053 crore from a loss of ₹100.8 crore, and diluted earnings per share were ₹147.7 compared to a loss of ₹4.88 per share a year ago.
The company booked a profit of ₹3,880 crore ($467 million) from the 20-acre land sale to Japan-based Goisu Realty, a group company of Sumitomo Realty & Development.
The 20-acre property was sold for 79.5 billion yen or $532.2 million at the current exchange rate of 149.38 yen to one U.S. dollar.