- Bridgette Randall
- 23 Jan, 2023
- Frankfurt
European markets closed higher and tech stocks led the gainers after positive sentiment supported broad market advance.
Benchmark indexes in the region advanced on the hopes of China's reopening, falling natural gas prices and slower rate hikes in the U.S. but the European policymakers supported aggressive rate hikes at the next meetings in February and March.
The Euro Area consumer sentiment index in January 2023 improved to the high not seen since February 2022 on the hopes of lower energy prices and the region may avoid a recession this year.
The sentiment index increased by 1.1 points to -20.9 in January, the European Commission said in a release Monday.
Broad Rally Power European Market Advance
The DAX index increased 0.5% to 15,102.95, the CAC-40 index rose 0.5% to 7,032.02 and the FTSE 100 index closed up 0.2% to 7,784.67.
The euro rose to a new 9-month high of $1.09 on the expectations of 50 basis points rate increases at least at the next meetings in February and March.
The euro inched higher to a new 9-month high of $1.09, the British pound edged lower to $1.233 and the Swiss franc closed down to 92.39 U.S. cents.
The yield on 10-year German Bunds advanced to 2.20%, French bonds traded higher to 2.65%, the UK Gilts to 3.35% and the Italian bonds to 4.01%.
Brent crude oil increased 49 cents to $88.12 a barrel and the Dutch TTF natural gas futures contract price fell 90 cents to €66.0 per MWh.
Europe Stock Movers
CNH Industrial NV gained 0.6% to €15.79 and the agriculture equipment maker was in focus after union workers ratified a new contract for two manufacturing locations in Iowa.
Balfour Beatty Plc increased 1.06% to 363.80 pence after the construction company won a 1.2 billion contract from National Highways to build 'Roads North of the Thames' network for the proposed Lower Thames Crossing.
Saga Plc increased 2.5% to 154.21 pence after the over-50 travel services provider said it is seeking a buyer for its in-house insurance underwriting operation.
Nokia Oyj increased 1.6% to €4.29 after the Finnish telecom company signed a cross-license patent agreement with Samsung Electronics.
National Express Group Plc increased 4.2% to 143.28 pence after the company said its German unit National Express Rail GmbH secured a one billion euros contract for rail operations in Germany.
Dignity Plc soared 8.5% to 545.0 pence after the company agreed to be acquired by a consortium of investment companies including Phoenix Asset Management Partners, Castelnau Group and SPWOne V Limited.
The company's board accepted a cash offer of 550 pence a share valuing the funeral homes operator at approximately £281 million on a fully diluted basis and an implied enterprise value of approximately £789 million.
The cash offer represents 29.3% premium to the closing price of 425.5 pence of Dignity Share on January 3.
- Barry Adams
- 23 Jan, 2023
- New York City
Stocks on Wall Street traded higher as investors await a flood of corporate earnings this week.
Market sentiment was positive on the hopes that more policymakers may support a smaller rate hike at the next Fed's meeting next week despite the tight labor market conditions.
Spotify SA was the latest tech company to announce significant job cuts as tech companies prepare for a different economic reality after the pandemic-driven boom.
Market exuberance was driven in part on the hopes of a rebound in China business activities after China pivoted from "zero-covid" to "peak infection" policy.
The positive sentiment was also supported by Japan scaling back its antivirus measures and reopening borders as early as this spring.
The S&P 500 index increased 1.7% to 4,039.09 and the Nasdaq Composite index advanced 2.4% to 11,404.88.
Crude Oil Advance to 2-month High
Crude oil traded near a 2-month high as investors assess global demand and supply and brace for additional sanctions on Russian oil from the European Union and the U.S.
Crude oil increased 68 cents to $82.35 a barrel and natural gas edged higher 10 cents to $3.27 a thermal unit.
U.S. Treasury Yields Hold Firm
The yield on 2-year Treasury notes inched higher to 4.23%, 10-year Treasury notes edged up to 3.52% and 30-year Treasury bonds increased to 3.70%.
U.S. Stock Movers
Apple Inc rose 3.2% to $142.23 and the maker of popular computing devices is looking to diversify its manufacturing base following the rising tensions between China and the U.S.
Apple Inc plans to increase its iPhones production in India to 25% from the current 5% to 7%, commerce and industry minister Piyush Goyal said today.
Spotify Technology SA increased 2.2% to $100.22 after the audio streaming platform said it plans to trim its workforce by 6%.
Baker Hughes Company declined 1.1% to $30.74 after the oil services provider reported higher revenues but profit dropped in the fourth quarter.
Revenue increased 7.7% to $5.91 billion from $5.49 billion last year and net income dropped 38% to $182 million from $394 million and diluted earnings per share declined to 18 cents from 44 cents a year ago.
The oil services provider retained its positive outlook for the energy sector despite tightening monetary conditions and operating challenges under recessionary conditions.
European Markets Extend Gains, Euro at New 9-month High
European markets traded higher supported by rising tech stocks.
Benchmark indexes in the region advanced on the hopes of China's reopening, falling natural gas prices and slower rate hikes in the U.S. but the European policymakers supported aggressive rate hikes at the next meetings in February and March.
The Euro Area consumer sentiment index in January 2023 improved to the high not seen since February 2022
The DAX index increased 0.5% to 15,102.95, the CAC-40 index rose 0.5% to 7,032.02 and the FTSE 100 index closed up 0.2% to 7,784.67.
The euro rose to a new 9-month high of $1.09 on the expectations of 50 basis points rate increases at least at the next meetings in February and March.
The euro inched higher to a new 9-month high of $1.09, the British pound edged lower to $1.233 and the Swiss franc closed down to 92.39 U.S. cents.
The yield on 10-year German Bunds advanced to 2.20%, French bonds traded higher to 2.65%, the UK Gilts to 3.35% and the Italian bonds to 4.01%.
Yen Drifts Lower, Tepco Seeks Higher Rates
Markets in Tokyo closed higher after the yen retreated from 7-1/2 month high reached last week and the Bank of Japan's minutes of meeting showed that the central bank took actions to improve bond market functioning.
The Bank of Japan left its ultraloose monetary policy intact after the two-day meeting ending on December 20 but the meeting was also adjourned for 30 minutes to allow government representatives to discuss with the finance ministry, highlighting the gravity of the decision.
Tokyo Electric Power Company declined 1.5% to ¥445.0 and the power utility company said it applied to the industry ministry to raise the residential utility rate by 30% from June to cover the higher fuel procurement expenses.
Tepco also estimated a financial year ending in March loss of ¥317 billion or $2.4 billion compared to a ¥5.64 billion profit in the previous year, due to higher natural gas import prices and elevated wholesale electricity costs.
The Nikkei 225 index added 1.3% to 26,906.04 and the yen closed at 130.63 against the U.S. dollar.
Infection Spike Worries China Investors
Markets in mainland China, Hong Kong, Singapore and South Korea were closed to celebrate the Lunar New Year.
Chinese markets will resume normal operations on January 30.
In Friday's trading, the Shanghai Composite index jumped 0.8% to 26,906.04 and the Hang Seng index advanced 1.8% to 22,044.65.
Bank Earnings Lift India Indexes
Stocks in Mumbai traded higher after five leading banks, Axis Bank, Canara Bank and ICICI Bank, IDBI and Kotak Mahindra reported higher than expected earnings.
Indian market sentiment was also positive after the U.S. Fed officials' comments supported smaller rate hikes in New York on Friday.
The Sensex index added 0.5% or 319.90 points to 60,941.67 and the Nifty index jumped 0.5% or 90.90 to 18,118.55.
The rupee edged lower to 81.30 against the U.S. dollar.
- Arjun Pandit
- 23 Jan, 2023
- Mumbai
Markets in Tokyo closed higher after the yen retreated from 7-1/2 month high reached last week and the Bank of Japan's minutes of meeting showed that the central bank took actions to improve bond market functioning.
The Bank of Japan left its ultraloose monetary policy intact after the two-day meeting ending on December 20 but the meeting was also adjourned for 30 minutes to allow government representatives to discuss with the finance ministry, highlighting the gravity of the decision.
Tokyo Electric Power Company declined 1.5% to ¥445.0 and the power utility company said it applied to the industry ministry to raise the residential utility rate by 30% from June to cover the higher fuel procurement expenses.
Tepco also estimated a financial year ending in March loss of ¥317 billion or $2.4 billion compared to a ¥5.64 billion profit in the previous year, due to higher natural gas import prices and elevated wholesale electricity costs.
The Nikkei 225 index added 1.3% to 26,906.04 and the yen closed at 130.63 against the U.S. dollar.
Markets in mainland China, Hong Kong, Singapore and South Korea were closed to celebrate the Lunar New Year.
Chinese markets will resume normal operations on January 30.
In Friday's trading, the Shanghai Composite index jumped 0.8% to 26,906.04 and the Hang Seng index advanced 1.8% to 22,044.65.
Stocks in Mumbai traded higher after five leading banks, Axis Bank, Canara Bank and ICICI Bank, IDBI and Kotak Mahindra reported higher than expected earnings.
Indian market sentiment was also positive after the U.S. Fed officials' comments supported smaller rate hikes in New York on Friday.
The Sensex index added 0.5% or 319.90 points to 60,941.67 and the Nifty index jumped 0.5% or 90.90 to 18,118.55.
The rupee edged lower to 81.30 against the U.S. dollar.
- Barry Adams
- 20 Jan, 2023
- New York City
Stocks on Wall Street advanced as Fed officials supported smaller rate hikes and investors set aside inflation worries and terminal rates.
Stocks edged higher in volatile fashion after Google parent Alphabet announced a plan to eliminate thousands of jobs and existing homes sales dropped for the eleventh month in a row.
Five leading tech companies, Alphabet, Amazon, Meta, Microsoft and Salesforce.com have announced plans to eliminate about 80,000 jobs worldwide.
Despite the layoffs from leading tech companies, labor market experts highlighted the tight labor market conditions and investors shifted focus to the pick up in earnings season next week.
The constant drumbeat of Fed officials supporting the need to increase rates was in full-force today as policymakers prepare to meet in ten days.
Fed Reserve Governor Christopher Wallace said at a gathering in New York that rates have a long way to go and supported a smaller rate hike of 25 basis points at the next policy meeting scheduled in ten days.
Yesterday at an industry gathering in New York, Federal Reserve Bank of New York President John Williams also supported the case for raising rates and reiterated the central bank's commitment in bringing down inflation to the target rate of 2%.
However, Williams did not express any view about the size of the rate hike and the level of terminal rates, according to two event attendees.
Federal Reserve policy makers are set to hike rates at the end of a two-day meeting on February 1 and investors are factoring an increase of 25 basis points, smaller than the previous 50 basis points increase last month.
Existing Home Sales Dropped Eleven Months In a Row
Existing homes sales in December declined for the eleventh month in a row and dropped to the lowest level not seen since November 2010 to 4.02 million units, 34% lower than a year ago.
S&P 500and Nasdaq Trade Higher
Benchmark indexes traded higher on Friday but are set to close down for the week.
The S&P 500 index increased 1.9% to 3,972.31 and the Nasdaq Composite index added 2.7% to 11,140.44.
For the week, the S&P 500 declined 0.7% and the Nasdaq gained 0.6% and registered third weekly advance in a row.
Crude oil increased $1.15 to $81.75 and natural gas futures decreased 14 cents to $3.13 a thermal unit.
The yield on 2-year Treasury notes increased to 4.17%, 10-year Treasury notes inched higher to 3.48% and 30-year Treasury bonds advanced to 3.65%.
U.S. Stock Movers
Google parent Alphabet Inc soared 4.8% to $97.50 after CEO Sundar Pichai said the company is planning to eliminate 12,000 worldwide jobs.
The company will begin layoffs immediately in the U.S and may take longer to trim staff in other countries reflecting local laws and practices.
Netflix Inc increased 7.1% to $337.99 after the streaming services provider reported higher-than-expected increase in new subscribers.
Netflix said fourth quarter revenues increased 1.9% to $7.85 billion but net income plunged to $55 million from $607 million and diluted earnings per share fell to 12 cents from $1.33 a year ago.
Netflix added 7.6 million net new subscribers in the fourth quarter and ended the year 2022 with 230.75 million subscribers.
Nordstrom Inc increased 0.5% to $17.53 after the company posted weak holiday sales citing the "promotional" retail environment forced the retailer to offer larger-than-usual discounts.
Nordstrom said 9-week holiday period sales fell 3.5% from a year ago and lowered its fiscal year earnings per share outlook to between $1.33 and $1.53 from the previous range between $2.13 and $2.43.
Sales at namesake stores declined 1.7% and fell 7.6% at discount Rack stores.
Ocean Freight Prices Plunged
Baltic Exchange's Dry Bulk Index, a measure of worldwide ocean freight cost, plunged 8.8% to a 30-month low to 801 ahead of the Lunar New Year holiday period in China.
European Markets Look Ahead to Earnings
European markets traded higher on Friday but closed down for a week after central bankers pushed for aggressive rate-path to continue.
In Friday's trading, market sentiment was positive and crude prices advanced on the hopes of a rebound in business activities in China and Japan.
Japan's Prime Minister Fumio Kishida announced a plan to loosen border restrictions and end quarantine requirements for international travelers.
European Central Bank President Christine Lagarde said at a gathering of business leaders in Switzerland today that the reopening of China could also spark inflation higher.
The rebound in business activities are likely to increase LNG consumption higher in 2023 from the previous year and there is not enough available spare capacity to meet the new demand.
Higher energy prices are the main drivers of inflation in Europe and the reopening of the second-largest economy could ease supply chain pressures but will drive energy inflation higher.
German Wholesale Inflation Dropped to 15-month Low
Germany's wholesale price inflation declined for the third month in a row and dropped to the lowest level in just over a year after energy price inflation receded, the Federal Statistics Office said Friday.
Wholesale price inflation in Germany slowed to 21.6% in December from 28.2% in November and fell to the lowest level in fifteen months, the Federal Statistical Office said Friday.
UK Retail Sales Declined In December
Retail sales in the UK unexpectedly declined in December despite the Christmas holiday period.
December sales fell 1.0% after falling revised 0.5% in November, the Office for National Statistics said Friday.
Europe Indexes Recoup Losses
The DAX index increased 0.8% to 15,033.56, the CAC-40 index added 0.6% to 6,995.99 and the FTSE !00 index closed up 0.3% to 7,770.59.
For the week, the DAX and the CAC-40 indexes declined 0.4% and the FTSE 100 index fell 1%.
Euro Closed at 9-month High
The euro continued to advance and rebounded to a nine-month high after the easing of the U.S. inflation worries and hopes of smaller rate hikes by the Federal Reserve.
The euro inched higher to $1.084, the British pound edged up to $1.238 and the Swiss franc increased to 92.18 U.S. cents.
Energy Markets Close Higher In Europe
Natural gas prices traded near a 16-month low of €50 amid warmer climate conditions in the region and above 80% storage capacity in major markets in France, Germany, Spain and Italy.
In addition, LNG supplies for China are redirected to Europe after Chinese storage capacities are at near-full levels.
Brent crude oil advanced $1.25 to $87.37 a barrel and the Dutch TTF natural gas futures rose 11.3% to $67.55 per MWh.
Europe Stock Movers
Telefonaktiebolaget LM Ericsson dropped 4.70% to Skr 59.0 in Stockholm trading after the Swedish telecom equipment maker said fourth quarter profit fell on large one-time charges.
Sales in the fourth quarter increased 21% to Skr 86 billion and net income fell 39% to Skr 6.0 billion from Skr 10.1 billion.
The quarterly earnings were down after the company booked a one-time of Skr 4.0 billion charge related to IoT divestment and cloud software and services contract and portfolio exits and reserve of Skr 2.3 billion for a potential U.S. Department of Justice corruption investigation settlement.
4imprint Group plc increased 4.5% to 4,677.50 pence after the UK-based but the US-focused corporate gift seller reported higher-than-expected fiscal year profit.
The company said 2022 revenues increased 45% to $1.14 billion from $787 million and ended the year with a cash balance of $86.7 million compared to $41.6 million a year ago.
Standard Chartered Plc increased 0.5% to 699.01 pence after the UK-bank won an approval to set up a securities brokerage unit in China.
Japan to End Coronavirus Restrictions In Spring
Asian markets advanced after rate hike worries in the U.S. eased and China left its key lending rates unrevised.
The Nikkei 225 index inched up 0.6% to 26,553.53 and the yen eased to 129.50 against the U.S. dollar.
Japan's inflation in December surged to 4.0% from a year ago to the highest level since 1991 on the yen weakness and a surge in international commodities prices.
Airline and travel stocks were in demand after Prime Minister Fumio Kishida announced a plan to downgrade Covid-19 disease to a seasonal influenza in the spring.
The major policy change since nearly three years of pandemic, Japan will end mask requirements, review border controls and end quarantine requirements.
The shift in policy comes after three years of strict social mobility restrictions as the nation prepares to live with the virus despite hundreds of deaths daily linked to coronavirus infections.
Japan's international arrivals surged 15-fold to 3.1 million in 2022 from the previous year, but the number of arrivals are significantly down from the pre-pandemic level of 32 million in 2019.
PBoC Lowered Rates, China Official Says Infections are Stable
Stocks in China gained after vice premier Sun Chunlan, the leader for the implementation of Covid-19 policy for the last three years, said new infections are at "low level."
Chunlan sought to reassure residents ahead of the Lunar New Year but infections are expected to surge after the holiday period.
Stocks also advanced after the People's Bank of China left its key lending rates unchanged for the fifth month in a row.
One-year Loan Prime Rate was left at 3.65% and five-year rate used for the mortgage market was held at 4.3%.
The Shanghai Composite index advanced 0.8% to 3,264.81 and the Hang Seng index jumped 1.8% to 22,044.65.
Hong Kong stocks advanced after the city's jobless rate declined for the eighth month in a row.
India Stocks Edged Lower
Stocks in Mumbai traded down for the second day in a row after investors reacted to local corporate earnings news.
Global weakness also contributed to market weakness after Microsoft announced a plan to lay off 10,000 employees and Google's parent Alphabet said it plans to eliminate 18,000 jobs.
The Sensex index decreased 0.4% or 236.66 points to 60,621.77 and the Nifty index declined 0.4% or 80.20 points to 60,621.77.
The Indian rupee traded higher to 80.98 against the U.S. dollar and the yield on 10-year Indian government bonds closed higher at 7.34%.
- Bridgette Randall
- 20 Jan, 2023
- Frankfurt
European markets traded higher on Friday but closed down for a week after central bankers pushed for aggressive rate-path to continue.
In Friday's trading, market sentiment was positive and crude prices advanced on the hopes of a rebound in business activities in China and Japan.
Japan's Prime Minister Fumio Kishida announced a plan to loosen border restrictions and end quarantine requirements for international travelers.
European Central Bank President Christine Lagarde said at a gathering of business leaders in Switzerland today that the reopening of China could also spark inflation higher.
The rebound in business activities are likely to increase LNG consumption higher in 2023 from the previous year and there is not enough available spare capacity to meet the new demand.
Higher energy prices are the main drivers of inflation in Europe and the reopening of the second-largest economy could ease supply chain pressures but will drive energy inflation higher.
German Wholesale Inflation Dropped to 15-month Low
Germany's wholesale price inflation declined for the third month in a row and dropped to the lowest level in just over a year after energy price inflation receded, the Federal Statistics Office said Friday.
Wholesale price inflation in Germany slowed to 21.6% in December from 28.2% in November and fell to the lowest level in fifteen months, the Federal Statistical Office said Friday.
UK Retail Sales Declined In December
Retail sales in the UK unexpectedly declined in December despite the Christmas holiday period.
December sales fell 1.0% after falling revised 0.5% in November, the Office for National Statistics said Friday.
Europe Indexes Recoup Losses
The DAX index increased 0.8% to 15,033.56, the CAC-40 index added 0.6% to 6,995.99 and the FTSE !00 index closed up 0.3% to 7,770.59.
For the week, the DAX and the CAC-40 indexes declined 0.4% and the FTSE 100 index fell 1%.
Euro Closed at 9-month High
The euro continued to advance and rebounded to a nine-month high after the easing of the U.S. inflation worries and hopes of smaller rate hikes by the Federal Reserve.
The euro inched higher to $1.084, the British pound edged up to $1.238 and the Swiss franc increased to 92.18 U.S. cents.
Energy Markets Close Higher In Europe
Natural gas prices traded near a 16-month low of €50 amid warmer climate conditions in the region and above 80% storage capacity in major markets in France, Germany, Spain and Italy.
In addition, LNG supplies for China are redirected to Europe after Chinese storage capacities are at near-full levels.
Brent crude oil advanced $1.25 to $87.37 a barrel and the Dutch TTF natural gas futures rose 11.3% to $67.55 per MWh.
Europe Stock Movers
Telefonaktiebolaget LM Ericsson dropped 4.70% to Skr 59.0 in Stockholm trading after the Swedish telecom equipment maker said fourth quarter profit fell on large one-time charges.
Sales in the fourth quarter increased 21% to Skr 86 billion and net income fell 39% to Skr 6.0 billion from Skr 10.1 billion.
The quarterly earnings were down after the company booked a one-time of Skr 4.0 billion charge related to IoT divestment and cloud software and services contract and portfolio exits and reserve of Skr 2.3 billion for a potential U.S. Department of Justice corruption investigation settlement.
4imprint Group plc increased 4.5% to 4,677.50 pence after the UK-based but the US-focused corporate gift seller reported higher-than-expected fiscal year profit.
The company said 2022 revenues increased 45% to $1.14 billion from $787 million and ended the year with a cash balance of $86.7 million compared to $41.6 million a year ago.
Standard Chartered Plc increased 0.5% to 699.01 pence after the UK-bank won an approval to set up a securities brokerage unit in China.
- Barry Adams
- 20 Jan, 2023
- New York City
Stocks on Wall Street advanced as Fed officials supported smaller rate hikes.
Stocks edged higher in volatile fashion after Google parent Alphabet announced a plan to eliminate thousands of jobs and existing homes sales dropped for the eleventh month in a row.
Fed Reserve Governor Christopher Wallace said at a gathering in New York that rates have a long way to go and supported a smaller rate hike of 25 basis points at the next policy meeting scheduled in ten days.
Yesterday at an industry gathering in New York, Federal Reserve Bank of New York President John Williams also supported the case for raising rates and reiterated the central bank's commitment in bringing down inflation to the target rate of 2%.
However, Williams did not express any view about the size of the rate hike and the level of terminal rates, according to two event attendees.
Federal Reserve policy makers are set to hike rates at the end of a two-day meeting on February 1 and investors are factoring an increase of 25 basis points, smaller than the previous 50 basis points increase last month.
Existing Home Sales Dropped Eleven Months In a Row
Existing homes sales in December declined for the eleventh month in a row and dropped to the lowest level not seen since November 2010 to 4.02 million units, 34% lower than a year ago.
S&P 500and Nasdaq Trade Higher
Benchmark indexes traded higher on Friday but are set to close down for the week.
The S&P 500 index increased 0.9% to 3,931.95 and the Nasdaq Composite index added 1.5% to 11,012.27.
Crude oil was unchanged at $80.59 and natural gas futures increased 3 cents to $3.30 a thermal unit.
The yield on 2-year Treasury notes increased to 4.19%, 10-year Treasury notes inched higher to 3.49% and 30-year Treasury bonds advanced to 3.66%.
U.S. Stock Movers
Google parent Alphabet Inc soared 4.8% to $97.50 after CEO Sundar Pichai said the company is planning to eliminate 12,000 worldwide jobs.
The company will begin layoffs immediately in the U.S and may take longer to trim staff in other countries reflecting local laws and practices.
Netflix Inc increased 7.1% to $337.99 after the streaming services provider reported higher-than-expected increase in new subscribers.
Netflix said fourth quarter revenues increased 1.9% to $7.85 billion but net income plunged to $55 million from $607 million and diluted earnings per share fell to 12 cents from $1.33 a year ago.
Netflix added 7.6 million net new subscribers in the fourth quarter and ended the year 2022 with 230.75 million subscribers.
Nordstrom Inc increased 0.5% to $17.53 after the company posted weak holiday sales citing the "promotional" retail environment forced the retailer to offer larger-than-usual discounts.
Nordstrom said 9-week holiday period sales fell 3.5% from a year ago and lowered its fiscal year earnings per share outlook to between $1.33 and $1.53 from the previous range between $2.13 and $2.43.
Sales at namesake stores declined 1.7% and fell 7.6% at discount Rack stores.
Ocean Freight Prices Plunged
Baltic Exchange's Dry Bulk Index, a measure of worldwide ocean freight cost, plunged 8.8% to a 30-month low to 801 ahead of the Lunar New Year holiday period in China.
European Markets
Germany's wholesale price inflation declined for the third month in a row and dropped to the lowest level in just over a year after energy price inflation receded, the Federal Statistics Office said Friday.
Wholesale price inflation in Germany slowed to 21.6% in December from 28.2% in November and fell to the lowest level in thirteen months, the Federal Statistical Office said Friday.
Retail sales in the UK unexpectedly declined in December despite the Christmas holiday period.
December sales fell 1.0% after falling revised 0.5% in November, the Office for National Statistics said Friday.
The DAX index increased 0.8% to 15,033.56, the CAC-40 index added 0.6% to 6,995.99 and the FTSE !00 index closed up 0.3% to 7,770.59.
The euro inched higher to $1.084, the British pound edged up to $1.238 and the Swiss franc increased to 92.18 U.S. cents.
Brent crude oil advanced $1.25 to $87.37 a barrel and the Dutch TTF natural gas futures rose 11.3% to $67.55 per MWh.
Asian Markets
Asian markets advanced after rate hike worries in the U.S. eased and China left its key lending rates unrevised.
The Nikkei 225 index inched up 0.6% to 26,553.53 and the yen eased to 129.50 against the U.S. dollar.
Japan's inflation in December surged to 4.0% from a year ago to the highest level since 1991 on the yen weakness and a surge in international commodities prices.
Airline and travel stocks were in demand after Prime Minister Fumio Kishida announced a plan to downgrade Covid-19 disease to a seasonal influenza in the spring.
The major policy change since nearly three years of pandemic, Japan will end mask requirements, review border controls and end quarantine requirements.
The shift in policy comes after three years of strict social mobility restrictions as the nation prepares to live with the virus despite hundreds of deaths daily linked to coronavirus infections.
Japan's international arrivals surged 15-fold to 3.1 million in 2022 from the previous year, but the number of arrivals are significantly down from the pre-pandemic level of 32 million in 2019.
Stocks in China gained after vice premier Sun Chunlan, the leader for the implementation of Covid-19 policy for the last three years, said new infections are at "low level."
Chunlan sought to reassure residents ahead of the Lunar New Year but infections are expected to surge after the holiday period.
Stocks also advanced after the People's Bank of China left its key lending rates unchanged for the fifth month in a row.
One-year Loan Prime Rate was left at 3.65% and five-year rate used for the mortgage market was held at 4.3%.
The Shanghai Composite index advanced 0.8% to 3,264.81 and the Hang Seng index jumped 1.8% to 22,044.65.
Hong Kong stocks advanced after the city's jobless rate declined for the eighth month in a row.
Stocks in Mumbai traded down for the second day in a row after investors reacted to local corporate earnings news.
Global weakness also contributed to market weakness after Microsoft announced a plan to lay off 10,000 employees and Google's parent Alphabet said it plans to eliminate 18,000 jobs.
The Sensex index decreased 0.4% or 236.66 points to 60,621.77 and the Nifty index declined 0.4% or 80.20 points to 60,621.77.
The Indian rupee traded higher to 80.98 against the U.S. dollar and the yield on 10-year Indian government bonds closed higher at 7.34%.
- Arjun Pandit
- 20 Jan, 2023
- Mumbai
Asian markets advanced after rate hike worries in the U.S. eased and China left its key lending rates unrevised.
The Nikkei 225 index inched up 0.6% to 26,553.53 and the yen eased to 129.50 against the U.S. dollar.
Japan's inflation in December surged to 4.0% from a year ago to the highest level since 1991 on the yen weakness and a surge in international commodities prices.
Airline and travel stocks were in demand after Prime Minister Fumio Kishida announced a plan to downgrade Covid-19 disease to a seasonal influenza in the spring.
The major policy change since nearly three years of pandemic, Japan will end mask requirements, review border controls and end quarantine requirements.
The shift in policy comes after three years of strict social mobility restrictions as the nation prepares to live with the virus despite hundreds of deaths daily linked to coronavirus infections.
“We will step up moves toward living with the coronavirus to restore normalcy to Japan,” Prime Minister Kishida announced today.
Japan's international arrivals surged 15-fold to 3.1 million in 2022 from the previous year, but the number of arrivals are significantly down from the pre-pandemic level of 32 million in 2019.
Stocks in China gained after vice premier Sun Chunlan, the leader for the implementation of Covid-19 policy for the last three years, said new infections are at "low level."
Chunlan sought to reassure residents ahead of the Lunar New Year but infections are expected to surge after the holiday period.
Stocks also advanced after the People's Bank of China left its key lending rates unchanged for the fifth month in a row.
One-year Loan Prime Rate was left at 3.65% and five-year rate used for the mortgage market was held at 4.3%.
The Shanghai Composite index advanced 0.8% to 3,264.81 and the Hang Seng index jumped 1.8% to 22,044.65.
Hong Kong stocks advanced after the city's jobless rate declined for the eighth month in a row.
Stocks in Mumbai traded down for the second day in a row after investors reacted to local corporate earnings news.
Global weakness also contributed to market weakness after Microsoft announced a plan to lay off 10,000 employees and Google's parent Alphabet said it plans to eliminate 18,000 jobs.
The Sensex index decreased 0.4% or 236.66 points to 60,621.77 and the Nifty index declined 0.4% or 80.20 points to 60,621.77.
The Indian rupee traded higher to 80.98 against the U.S. dollar and the yield on 10-year Indian government bonds closed higher at 7.34%.
- Barry Adams
- 19 Jan, 2023
- New York City
Market sentiment on Wall Street swung to pessimism for the second day in a row and rate path worries dominated.
With central bankers in the U.S. and Europe reiterating the need to bring down inflation to 2%, investors took a dim view of corporate earnings growth.
The fresh batch of economic data from the labor market signaled tight conditions but the housing market is reeling under record home prices and rising mortgage rates.
Investors also feared that the Federal Reserve ,in its relentless focus on taming inflation may over tighten and raise rates to restrictive levels forcing the economy into a slowdown or a full-blown recession.
Despite seven rate hikes in 2022, inflation is still way above the central bank's target rate of 2%.
At the time of the last rate hike in December, the Federal Reserve said terminal rates are likely to be near 5.25% but investors are divided if rates may need to go higher.
S&P 500 and Nasdaq Extend Weekly Losses
Benchmark indexes traded down and investors focused on rate path and terminal rates after the latest economic data sent mixed signals.
Low jobless claims showed tight labor market conditions but weakening housing starts and completions also signaled difficult market conditions for home buyers and builders.
The S&P 500 index fell 0.8% to 3,898.85 and the Nasdaq Composite index dropped 1% to 10,852.27.
Crude Oil Hovered Near December High
Energy investors bid up crude oil prices on the hopes that China's reopening will lift demand.
Reports from the International Energy Association controlled by western nations and OPEC controlled by oil producers in the Middle East indicated that demand for oil is expected to rise at least 2% amid shrinking supply from Russia in international markets.
Crude oil rose 91 cents to $80.39 and natural gas edged down 11 cents to $3.19 a thermal unit.
U.S. Treasury Yields Trend Lower
U.S. Treasury yields retained downward bias on the hopes that the recent inflation-cooling data is likely to slow down the future rate hikes.
The yield on 2-year Treasury notes edged higher to 4.13%, 10-year Treasury notes to 3.39% and 30-year Treasury bonds to 3.57%.
U.S. Stock Movers
KeyCorp declined 4.7% to $16.41 after the regional bank reported a sharp fall in earnings on stable revenue in its latest quarter.
KeyCorp said revenue in December quarter fell 2.5% to $1.89 billion and net income dropped 41% to $356 million or diluted earnings per share fell to 38 cents from 64 cents a year ago.
Charles Schwab dropped 6.9% to $75.73 after the financial services provider reported quarterly results in-line with expectations.
Stock was under pressure after negative comments and double-downgrade from Bank of America on the worries that the rising interest rate environment is a double-edged sword for the online broker.
Charles Schwab Corp said fourth quarter revenue increased 17% to $5.5 billion and net income rose 25% to $1.96 billion and diluted earnings per share increased to 97 cents from 76 cents a year ago.
Building Permits Declined in December and In 2022
Home building permits in December declined 1.6% to 1.33 million annual rate and fell 29.9% from a year ago, the U.S. Census Bureau reported Thursday.
Housing starts fell 1.4% from November to 1.38 million and plunged 21.8% from a year ago after mortgage rates surged to 15-year high and home prices stayed elevated across the nation.
In 2022, U.S. building permits for private residential construction fell 5% from a year ago to 1.65 million, starts declined 3% to 1.55 million and completions dropped 3.8% to 1.39 million.
Weekly Jobless Claims Show Tight Labor Market Conditions
Initial claims for jobless benefits declined 15,000 to 190,000 last week and the four-week moving average fell 6,500 to 206,000, the U.S. Department of Labor reported Thursday.
On an unadjusted basis for seasonal factors, the claims declined 53,582 to 285,575 largely on the account of holiday calendar and other seasonal factors.
European Indexes Drop After Hawkish Comments From Central Bankers
European markets fell more than 1% after six-days of gains after hawkish comments from the central bankers dented market sentiment.
European Central Bank President Lagarde reiterated the central bank's commitment in lowering rates to 2% "in a timely manner" at a gathering of business executives in Davos, Switzerland.
European policymaker and Dutch central bank governor Klaas Knot also reiterated ECB's commitment in raising rates in 50 basis points increment and keeping the hawkish stance intact.
Tough talks from two central bankers shifted investors attention from economic growth to the implications of rising rates on the region's economy.
European Indexes Halt Weekly Advance
The DAX index declined 1.4% to 14,962.49, the CAC-40 index fell 1.6% to 6,967.94 and the FTSE 100 index declined 0.9% to 6,967.94.
Rate Path Expectations Lift Euro and Pound
The euro traded near $1.078, the British pound edged higher to $1.23 and the Swiss franc edged lower to 91.63 U.S. cents.
Europe Bond Yields Drift Lower
The yield on 10-year German Bunds inched lower to 2.04%, French bonds to 2.46% UK Gilts to 3.30% and Italian bonds to 3.77%.
Oil Prices Stay Elevated On China Recovery Hopes
Brent crude oil price edged higher 70 cents to $85.71 a barrel and the Dutch TTF natural gas futures contract price for immediate month delivery declined 4% to 59.08 per MWh.
Europe Stock Movers
Informa plc increased 0.4% to 662.74 pence after the event management and academic publishing company said revenue and adjusted earnings are expected to increase in 2022.
In its annual trading update released Thursday, the company estimated 2022 revenue of £2.38 billion, adjusted operating profit of £530 million and free cash flow of £440 million.
Melrose Industries PLC decreased 2.2% to 146.49 pence and the company said GKN divisions operating performance is in-line with management expectations.
The aerospace industry focused holding company revenues rose more than expected 6% and operating profit surged 21% from a year ago.
On September 8, 2022 Melrose announced its plan to separate its GKN Automotive and GKN Powder Metallurgy businesses from the Melrose Group by way of a demerger of shares in a new holding company to Melrose shareholders.
Japan Reports Record Trade Deficit
Asian markets diverged amid the weakening global sentiment and reacted to local news.
Japan's trade deficit widened in December on higher energy and raw materials prices and weaker yen, the Finance Ministry said in a report released Thursday.
In full-year 2022 international trade deficit soared to ¥19.97 trillion or $155 billion, surpassing the previous high of ¥12.82 trillion in 2014.
The annual deficit was the largest since record keeping began in 1979 and weaker yen played a crucial role in widening the deficit.
In December, imports soared 39.2% to a record ¥118.16 trillion and exports jumped 18.2% to record ¥98.19 trillion.
Japan recorded a trade deficit for the 17th month in a row in December and posted a second annual deficit in a row in 2022.
Stocks in Japan were under pressure ahead of the inflation report on Friday. Automakers led the losers with Toyota Motor, Honda Motor and Mitsubishi Motor falling between 2% and 4.5%.
J Front Retailing jumped 3% after inbound tourists in Japan surged in 2022.
Japan's Tourists Arrivals Surge In 2022
Total international arrivals in 2022 soared more than 15-fold from a year ago to 3.83 million, the Japan National Tourism Organization reported Thursday.
Tax-free sales increased to ¥17.5 billion in November and jumped five-fold from the previous year, the Japan Department Stores Association said on Wednesday.
The Nikkei 225 average fell 1.4% to 26,405.23 and the yen weakened to 128.30 against the U.S. dollar.
China Stocks Lack Momentum
Stocks in China closed mixed and investors took a cautious view in the absence of domestic economic or corporate news.
The Shanghai Composite index increased 0.5% to 3,240.28 and the Hang Seng Index declined 0.1% to 21,650.98.
India's Domestic Air Traffic Jumped In 2022
Stocks in Mumbai rested after two-days of advance and investors weighed the prospect of U.S. recession against the weakening of oil price in international trading and the dollar edged lower.
Domestic passenger air traffic surged nearly 47% to 12.3 crore or 123 million in full-year 2022 from 8.4 crore or 84 million in 2021, the aviation regulator DGCA said in a statement today.
The Sensex index decreased 0.3% or 187.31 to 60,858.43 and the Nifty index fell 0.3% or 57.50 to 18,107.85.
Adani Enterprises fell as much as 4% after the company set floor price of ₹3,112 a share with a 10% discount for retail investors for its $2.5 billion secondary offering.
Coal India advanced 2% after the coal ministry set an annual production target of one billion tons in the next financial year.
Hindustan Unilever said December quarter revenue increased 16.4% to ₹15,707 crore and net income rose 7.9% to ₹2,481 crore.