- Bridgette Randall
- 21 Sep, 2022
- Frankfurt
European bourses traded near flat-line in cautious morning trading ahead of the Fed's rate-hike decision after the market-close.
Market indexes scaled higher after the U.S. markets advanced with the presumed 75 basis points rate increase later in the day.
The DAX index added 0.6% to 12,741.19, the CAC-40 index gained 0.7% to 6,022.49 and the FTSE 100 index increased 0.5% to 7,230.87.
Energy prices traded higher after Russia mobilized 300,000 reserve troops to bolster its military presence in Ukraine raising the prospects of a prolonged war.
Crude oil was nearly unchanged at $84 a barrel and natural gas price held near $7.90 a thermal unit.
However, in Europe, TTF natural gas price advanced 4% to 202.50 euros a megawatt hour.
Brent crude oil traded up 60 cents to $91.25 a barrel.
Resource stocks were in focus after crude oil and commodities prices advanced.
Antofagasta, BHP Limited, Anglo American and Glencore gained between 1% and 3%.
Homebuilders in the U.K. gained on the hopes that the recently appointed Prime Minister Liz Truss may lower stamp duty in the government's mini-budget this week.
Taylor Wimpey, Persimmons and Barratt Developments increased between 2% and 4%.
AstraZeneca plc increased 0.2% to 10,097.0 pence and the company said its Tezspire (tezepelumab) has been approved for the treatment of severe asthma in the European Union.
Schneider Electric SE increased 1.5% to 117.80 euros after the company agreed to acquire stakes held by minority shareholders in Aveva Plc for 3,100 pence a share.
The offer price is 41% premium to the last closing price of 2,192 pence before the commencement of the offer period.
The acquisition values the entire capital of Aveva at approximately
- Bridgette Randall
- 21 Sep, 2022
- Frankfurt
European bourses traded near flat-line in cautious morning trading ahead of the Fed's rate-hike decision after the market-close.
Market indexes scaled higher after the U.S. markets advanced with the presumed 75 basis points rate increase later in the day.
The Bank of England, the Swiss National Bank, the Norges Bank of Norway and the Bank of Japan are also expected to announce their rate decisions on Thursday.
The DAX index added 0.6% to 12,741.19, the CAC-40 index gained 0.7% to 6,022.49 and the FTSE 100 index increased 0.5% to 7,230.87.
Energy prices traded higher after Russia mobilized 300,000 reserve troops to bolster its military presence in Ukraine raising the prospects of a prolonged war.
Crude oil was nearly unchanged at $84 a barrel and natural gas price held near $7.90 a thermal unit.
However, in Europe, TTF natural gas price advanced 4% to 202.50 euros a megawatt hour.
Brent crude oil traded up 60 cents to $91.25 a barrel.
Resource stocks were in focus after crude oil and commodities prices advanced.
Antofagasta, BHP Limited, Anglo American and Glencore gained between 1% and 3%.
Homebuilders in the U.K. gained on the hopes that the recently appointed Prime Minister Liz Truss may lower stamp duty in the government's mini-budget this week.
Taylor Wimpey, Persimmons and Barratt Developments increased between 2% and 4%.
Uniper SE plunged 31.2% to 2.38 euros after Germany nationalized the natural gas importer and the electric utility.
A German government agency acquired the company stake held by Fortum Oyj for 1.70 euros a share.
Vallourec SA increased 6.1% to 10.37 euros after the maker of premium casing and tubing products signed a 10-year sales agreement with Saudi Arabia based Aramco.
Schneider Electric SE increased 1.5% to 117.80 euros after the company agreed to acquire stakes held by minority shareholders in Aveva Plc for 3,100 pence a share.
The offer price is 41% premium to the last closing price of 2,192 pence before the commencement of the offer period.
Aveva Group Plc rose 1.8% to 3,108 pence.
- Barry Adams
- 21 Sep, 2022
- New York City
Stocks on Wall Street traded higher as investors await the Fed's rate-hike decision and comments on the economy and future rate path.
The Federal Reserve is expected to lift the key lending rate by 75 basis points as inflation is running near 4-decade high.
Benchmark indexes are likely to close higher if the Fed lifts rates as expected but the market advance could come to a screeching halt if the Fed delivers larger or smaller than expected rate hike.
Inflation has been running ahead of the Fed's target rate of 2% for 24 months in a row and the Fed has been lagging in its response in tackling rapid price increases.
In the last one year, the gasoline price inflation has seeped wide and deep in the broader economy, making the Fed's job tougher in lowering inflation to the Fed's preferred rate 2%.
In many ways, the Fed is not only battling rapid price rise but also fighting its diminished credibility with investors for failing to spot and tackle inflation early on.
The Fed actions are also the largest contributors in creating conditions for rapid price increases.
Since 2008, the Federal Reserve has created and added $9 trillion of new money to the financial system.
The S&P 500 index advanced 0.6% to 3,877.56 and the Nasdaq Composite index added 0.3% to 11,466.32.
Energy prices traded higher after Russia mobilized 300,000 reserve troops to bolster its military presence in Ukraine raising the prospects of a prolonged war.
Crude oil was nearly unchanged at $84 a barrel and natural gas price held near $7.90 a thermal unit.
However, in Europe, TTF natural gas price advanced 4% to 202.50 euros a megawatt hour.
European bourses traded flat in cautious trading ahead of the Fed's rate-hike decision after the market-close.
The Bank of England, The Swiss National Bank and Norges Bank of Norway are also expected to announce their rate decisions on Thursday.
The DAX index added 0.3% to 12,710.09, the CAC-40 index gained 0.5% to 6,005.31 and the FTSE 100 index increased 0.3% to 7,210.27.
- Barry Adams
- 20 Sep, 2022
- New York City
Stocks lacked direction ahead of the Fed's rate decision tomorrow.
Investors anticipate the Fed to lift rates by at least 50 basis points and sky-high inflation shows no sign of cooling down.
The Fed is scheduled to announce its rate decision at 2:00 p.m. Wednesday and investors are awaiting insights to the U.S. economy and future rate hikes path.
The yield on 2-year Treasury notes rose to 15-year high as investors debate the size of the next rate hike tomorrow.
The yield on 2-year Treasury notes inched higher to 3.95%, 10-year notes traded up to 3.59% and 30-year bond jumped to 3.57%.
Energy prices traded lower on the lingering worries of global demand and rising supply from the U.S. shale oil fields.
Crude oil declined $1.37 to $84.36 a barrel and natural gas prices eased 3 cents to $7.71 a thermal unit.
U.S. Indexes Fall
U.S. stocks lacked direction ahead of rate decision tomorrow. Investors worry that interest rates may have to go as high as 4.75% and stay at that level for another one year before the inflation cools to the Fed's target rate of 2%.
Interest rates have been rising and staying above the Fed's target rate for 24 months in a row.
The S&P 500 index fell 1.0% to 3,861.63 and the Nasdaq Composite index dropped 0.7% to 11,875.12.
Movers: Oxford Industries, Humana
Oxford Industries surged 6.6% to $95.98 after the parent of Tommy Bahama and Lilly Pulitzer lifted its guidance and announced an acquisition.
Oxford agreed to acquire Johnny Was for $270 million and the acquisition is expected to be earnings accretive in fiscal 2022.
The company also increased its guidance for the third quarter and full year of fiscal 2022.
Humana Inc gained 0.7% to $504.66 and traded at a record high a day after the health insurer revised higher its earnings outlook.
The company lifted its fiscal 2022 ending in December earnings per share outlook to $23.08 from its previous estimate of $20.30.
U.S. Housing Starts Rise, Permits Fall
Housing starts jumped 12.2% in August from July to a seasonally adjusted rate of 1.575 million units, the Commerce Department reported Tuesday.
On an annual basis housing starts fell 0.1%.
Single-family housing starts increased 3.4% to 935,000 units and multi-family home starts surged 28.6% to 621,000.
Building permits dropped 10% from a year ago and fell 14.4% from the previous month to a seasonally adjusted rate of 1.517 million units .
European Indexes Fall Tracking U.S. Markets
Benchmark indexes across Europe declined after German producer prices rose at a faster pace in August and Sweden lifted its rate by larger-than-expected amount.
Benchmark indexes opened higher and began the decline after one hour of trading and fell to new lows every next hour and closed at or near the lows of the day.
Investor sentiment was driven by the persistent uncertainties surrounding energy prices and future rate size increases,
Investors are increasingly factoring the possibilities of a recession next year and higher rates lasting well into 2024.
The DAX index fell 1.0% to 12,670.83, the CAC-40 index dropped 1.4% to 5,979.46 and the FTSE 100 index declined 0.6% to 7,192.66.
German PPI Surges
In Europe, benchmark indexes declined after German producer prices rose at a faster pace in August and Sweden lifted its rate by larger-than-expected amount.
Producer prices in Germany soared at an annual rate of 45.8% in August after rising at 37.2% in July, the Destatis said Tuesday.
On a monthly basis, producer prices rose at a record rate of 7.9% after rising at 5.3% in July.
Sweden Lifts Rates by 1.0%, More Hikes to Follow
Sweden's Riksbank lifted its key lending rate by 1.0% or 100 basis points to 1.75%, higher than 75 basis points expected by economists.
The central bank also held out for higher rates over the next six months and the accompanying statement added that the monetary policy will adjust to bring down the current high inflation rate to 2% by 2025.
The central bank estimated rates to rise to 2.25% by the year-end and inflation to hover near 8.6% in 2022 and decline to 8.5% in 2023 before declining to 2% in 2025.
Asian Markets Closed Higher, China Rates Stable
Asian markets closed higher following higher closing in New York in the overnight trading.
The People's Bank of China left its 1-year and 5-year lending rates unrevised, matching the market expectations.
The central bank left the 1-year rate at 3.65% and the 5-year rate at 4.3% after trimming rates last month from 3.70% and 4.45% respectively.
The Nikkei 225 index in Tokyo jumped 0.4% and in Hong Kong added 1.2%.
The Sensex index in India gained 1.0% on the expectations of a jump in consumer demand during the upcoming festival season and the rupee held stable at 79.89 despite the rising dollar.
- Barry Adams
- 20 Sep, 2022
- New York City
Change Healthcare Inc gained 6.6% to $27.17 after a federal judge rejected the takeover of the company by UnitedHealth.
Earlier in April 2022, Optum, the pharmacy benefit manager owned by UnitedHealth, had agreed to pay a $650 million fee to Change Healthcare in the event the merger is unable to be completed because of the court
- Scott Peters
- 20 Sep, 2022
- New York City
Oxford Industries surged 6.6% to $95.98 after the parent of Tommy Bahama and Lilly Pulitzer lifted its guidance and announced an acquisition.
Oxford agreed to acquire Johnny Was for $270 million and the acquisition is expected to be earnings accretive in fiscal 2022.
The company also increased its guidance for the third quarter and full year of fiscal 2022.
Third quarter sales are now expected to be $295 million to $310 million, with adjusted earnings per share between $1.10 and $1.30.
Approximately 2/3 of the earnings per share guidance increase is driven by the anticipated results of Johnny Was, with a slightly higher proportion of the sales increase driven by the Johnny Was acquisition.
The remainder of the guidance increase is due to strong quarter-to-date performance in our full-price direct-to-consumer channels and last week
- Bridgette Randall
- 20 Sep, 2022
- Frankfurt
Benchmark indexes declined after German producer prices rose at a faster pace in August and Sweden lifted its rate by larger-than-expected amount.
Benchmark indexes opened higher and began the decline after one hour of trading and fell to new lows every next hour and closed at or near the lows of the day.
Investor sentiment was driven by the persistent uncertainties surrounding energy prices and future rate size increases,
Investors are increasingly factoring the possibilities of a recession next year and higher rates lasting well into 2024.
The DAX index fell 1.0% to 12,670.83, the CAC-40 index dropped 1.4% to 5,979.46 and the FTSE 100 index declined 0.6% to 7,192.66.
German PPI Surges
Producer prices in Germany soared at an annual rate of 45.8% in August after rising at 37.2% in July, the Destatis said Tuesday.
On a monthly basis, producer prices rose at a record rate of 7.9% after rising at 5.3% in July.
Sweden Lifts Rates by 1.0%, More Hikes to Follow
Sweden's Riksbank lifted its key lending rate by 1.0% or 100 basis points to 1.75%, higher than 75 basis points expected by economists.
The central bank also held out for higher rates over the next six months and the accompanying statement added that the monetary policy will adjust to bring down the current high inflation rate to 2% by 2025.
The central bank estimated rates to rise to 2.25% by the year-end and inflation to hover near 8.6% in 2022 and decline to 8.5% in 2023 before declining to 2% in 2025.
Asian Markets Closed Higher, China Rates Stable
Asian markets closed higher following higher closing in New York in the overnight trading.
The People's Bank of China left its 1-year and 5-year lending rates unrevised, matching the market expectations.
The central bank left the 1-year rate at 3.65% and the 5-year rate at 4.3% after trimming rates last month from 3.70% and 4.45% respectively.
The Nikkei 225 index in Tokyo jumped 0.4% and in Hong Kong added 1.2%.
The Sensex index in India gained 1.0% on the expectations of a jump in consumer demand during the upcoming festival season and the rupee held stable at 79.89 despite the rising dollar.
- Brian Turner
- 20 Sep, 2022
- New York City
Housing starts jumped 12.2% in August from July to a seasonally adjusted rate of 1.575 million units, the Commerce Department reported Tuesday.
On an annual basis housing starts fell 0.1%.
Single-family housing starts increased 3.4% to 935,000 units and multi-family home starts surged 28.6% to 621,000.
Building permits dropped 10% from a year ago and fell 14.4% from the previous month to a seasonally adjusted rate of 1.517 million units .
- Barry Adams
- 20 Sep, 2022
- New York City
Stocks opened lower and quickly accelerated declines as the Fed's policy committee began its two-day meeting.
The yield on 2-year Treasury notes rose to 15-year high as investors debate the size of the next rate hike tomorrow.
The S&P 500 index fell 1.3% to 3,850.63 and the Nasdaq Composite index dropped 0.9% to 11,430.14.
Crude oil declined $1.70 to $84.06 a barrel and natural gas prices eased 5 cents to $7.69 a thermal unit.
The yield on 2-year Treasury notes inched higher to 3.98%, 10-year notes traded up to 3.58% and 30-year bond jumped to 3.60%.
Housing Starts Rise, Permits Fall
Housing starts jumped 12.2% in August from July to a seasonally adjusted rate of 1.575 million units, the Commerce Department reported Tuesday.
On an annual basis housing starts fell 0.1%.
Single-family housing starts increased 3.4% to 935,000 units and multi-family home starts surged 28.6% to 621,000.
Building permits dropped 10% from a year ago and fell 14.4% from the previous month to a seasonally adjusted rate of 1.517 million units .
German PPI Surges
In Europe, benchmark indexes declined after German producer prices rose at a faster pace in August and Sweden lifted its rate by larger-than-expected amount.
Producer prices in Germany soared at an annual rate of 45.8% in August after rising at 37.2% in July, the Destatis said Tuesday.
On a monthly basis, producer prices rose at a record rate of 7.9% after rising at 5.3% in July.
Sweden Lifts Rates by 1.0%, More Hikes to Follow
Sweden's Riksbank lifted its key lending rate by 1.0% or 100 basis points to 1.75%, higher than 75 basis points expected by economists.
The central bank also held out for higher rates over the next six months and the accompanying statement added that the monetary policy will adjust to bring down the current high inflation rate to 2% by 2025.
The central bank estimated rates to rise to 2.25% by the year-end and inflation to hover near 8.6% in 2022 and decline to 8.5% in 2023 before declining to 2% in 2025.
The DAX index fell 1.2% to 12,649.23, the CAC-40 index dropped 1.4% to 5,977.66 and the FTSE 100 index declined 0.8% to 7,181.92.
Asian Markets Closed Higher, China Rates Stable
Asian markets closed higher following higher closing in New York in the overnight trading.
The People's Bank of China left its 1-year and 5-year lending rates unrevised, matching the market expectations.
The central bank left the 1-year rate at 3.65% and the 5-year rate at 4.3% after trimming rates last month from 3.70% and 4.45% respectively.
The Nikkei 225 index in Tokyo jumped 0.4% and in Hong Kong added 1.2%.
The Sensex index in India gained 1.0% on the expectations of a jump in consumer demand during the upcoming festival season and the rupee held stable at 79.89 despite the rising dollar.
- Scott Peters
- 19 Sep, 2022
- New York City
Autozone Inc declined 2.4% to 2,114.2 after the specialty retailer said same store sales in the fiscal fourth quarter increased 6.2%.
Revenues, in the quarter ending on August 27, increased 8.9% to $5.4 billion from $4.9 billion a year ago.
Net income in the quarter jumped 3.1% to $810.0 million from $785.8 million a year ago and diluted earnings per share rose to $40.51 from $35.72.
Inventories in the quarter increased 21.5% to $5.6 billion from $4.6 billion a year ago on rising costs and product levels in support of larger store base.
Inventory per store rose 18.4% to $812,000 from $686,000 a year ago.
Net inventory, defined as merchandise inventories less accounts payable, on a per store basis, was negative $240,000 compared to negative $203,000 a year ago and negative $216,000 in the previous quarter.
For the fiscal year 2022, revenues rose 11.1% to $16.2 billion from $14.6 billion a year ago.
Net income jumped 11.9% to $2.43 billion from $2.2 billion and diluted earnings per share increased to $117.19 from $95.19 a year ago.
Stock holder's deficit soared 97% to $3.53 billion from $1.8 billion a year ago.
Stock Buybacks
In the quarter, the retailer repurchased $1 billion of its own stock at an average price of $2,111 a share and for the fiscal year repurchased 2.2 million shares for $4.4 billion, at an average price of $1,964 a share.
At year end, the company had $1.1 billion remaining under its current share repurchase authorization.
Store Network
During the fiscal year, AutoZone opened 118 new stores and closed one in the U.S., opened 39 stores in Mexico and 20 stores in Brazil.
As of August 27, 2022, the company had 6,168 stores in the U.S., 703 in Mexico and 72 in Brazil for a total store count of 6,943.
- Barry Adams
- 19 Sep, 2022
- New York City
Stocks on Wall Street managed to rise above the morning doldrums and benchmark indexes eked out gains at close.
The Federal Reserve Bank's policy committee is set to announce its rate decision this Wednesday and investors are expecting a rate hike between 50 and 75 basis points.
The yield on 2-year Treasury notes rose to 3.95%, 10-year Treasury notes jumped to 3.49% and 30-year bonds increased to 3.51%.
The 10-year Treasury yield closed at a 11-year high.
U.S. interest rates are expected to rise for the foreseeable future as the consumer price inflation is running above 8% and the inflation has stayed ahead of the Fed's target rate of 2% for nearly 24 months.
Moreover, 13 central banks are scheduled to announce their rate decision this week as interest rates are expected to rise around the world.
Last Friday, Russia lowered its key lending rate by 50 basis points, matching expectations.
The People's Bank of China lowered its reverse repo rate for 14-day lending to 2.15% from 2.25% on Monday.
The central bank lowered its key lending rate to provide more liquidity in the financial system and spurred banks to increase lending in the housing, steel, and construction related industries.
Wall Street Advances
On Wall Street, stocks were in a holding pattern ahead of the Fed's decision on Wednesday and investors await more insights from policymakers.
The S&P 500 index advanced 0.7% or 26.56 points to 3,899.80 and the Nasdaq Composite index increased 0.8% or 86.62 points to 11,535.02.
Future price of the immediate-month delivery of crude oil edged up 33 cents to $85.56 a barrel and natural gas inched up 13 cents to $7.89 a thermal unit.
More than 400 stocks hit their 52-week lows including Ciena Corp, Church & Dwight, Fidelity National Information Services, GAMCO, Garmin, Korn Ferry, Microsoft, PerkinElmer, Teradata and WeWork.
Autozone Inc declined 2.4% to 2,114.2 after the specialty retailer said same store sales in the fiscal fourth quarter ending on August 27 increased 6.2%.
Revenues in the quarter increased 8.9% to $5.4 billion from $4.9 billion a year ago and the retailer repurchased its own stock worth $1 billion in the quarter.
Ralph Lauren Corp increased 2.4% to $95.72 after the company reiterated its fiscal 2023 outlook issued on August 9th.
Wix.com Ltd jumped 13% to $83.27 after activist investor Starboard Value controls 9% stake in the web site development company.
Mixed Closing On European Bourses
Benchmark indexes in Europe traded mixed on the first day of the week after falling 3% in the previous week.
Investors are bracing for rate decisions from at least 13 central banks this week including policy insights from the U.S., Switzerland, China, Japan and the U.K.
U.S. rates are expected to rise for the foreseeable future as the consumer price inflation is running above 8% and the inflation has stayed ahead of the Fed's target rate of 2% for nearly 24 months.
The Bank of England, The Swiss National Bank and The Bank of Japan are set to release their rate decisions on Thursday.
Bond yields rose across the eurozone and Europe.
The yield on 10-year bonds of Germany rose to 1.79%, the U.K. inched up to 3.16%, France advanced to 2.33%, Italy increased to 4.07% but Switzerland edged down to 1.1%.
The DAX index inched up 0.5% to 12,803.24, the CAC-40 index fell 0.3% to 6,059.70 and the FTSE 100 index dropped 0.6% to 7,236.68.
The dollar rose against all European currencies ahead of the key U.S. rate decision on Wednesday.
The euro traded down to $0.99 and the British pound fell to a nearly a 4-decade low to $1.137.
Brent crude oil edged up 5 cents to $91.37 a barrel and TTF natural gas prices dropped to a 2-month low of 175.06 euros a megawatt hours.
Stocks on European bourses generally traded sideways but with a downward bias.
Porsche IPO Seeks 75 Billion Valuation
Volkswagen AG gained 2.4% to 201.40 euros and the automaker is planning to raise as much as 9.5 billion euro through the initial public offering of its sports car division Porsche Automobil.
Porsche Auto is expected to fetch a valuation between 70 billion and 75 billion euros.
Bundesbank Estimates Recession Ahead
The German economy is anticipated to slow down considerably and slip into a recession in the first quarter 2023, according to the monthly report released by the Bundesbank Monday.
The bank noted that the economic outlook is "extremely uncertain" as energy intensive businesses suffer from a sky-high oil and natural gas prices and slowing consumer spending.
On the consumer inflation front, prices are expected to rise at a faster pace with the expiry of the government subsidy in the purchase of transportation fuel and price cap on utilities on September 1.
Portugal's PPI Eases
Portugal's producer price inflation eased for the second month in a row.
Prices rose at a slower annual pace of 22.4% in August after rising 24.6% in July, Statistics Portugal reported Monday.
Energy prices surged 49.7% and intermediate goods prices increased 20.4%.
On a monthly basis, prices fell 1%, reversing the increase of 0.6% in July.
- Barry Adams
- 19 Sep, 2022
- New York City
Stocks on Wall Street struggled to stay above the flat-line ahead of interest rate decisions from at least 13 central banks this week.
The S&P 500 index inched up 0.5% to 3,893.17 and the Nasdaq Composite index added 0.6% to 11,518.69.
Of the 11 sectors, health, energy and real estate sectors declined and the remaining sectors traded higher.
American Airlines, Delta Air and United Airlines gained between 2% and 3% after crude oil prices edged lower and on the expectations of a better-than-expected summer air travel traffic.
Autozone Inc declined 2.4% to 2,114.2 after the specialty retailer said same store sales in the fiscal fourth quarter ending on August 27 increased 6.2%.
Revenues in the quarter increased 8.9% to $5.4 billion from $4.9 billion a year ago.
Net income in the quarter jumped to $810.0 million from $785.8 million a year ago and diluted earnings per share rose to $40.51 from $35.72.
In the quarter, the retailer repurchased $1 billion of its own stock at an average price of $2,111 a share and for the fiscal year repurchased 2.2 million shares for $4.4 billion, at an average price of $1,964 a share.
At year end, the company had $1.1 billion remaining under its current share repurchase authorization.
Coinbase Global Inc plunged 8.8% to $67.52 after the popular cryptocurrency bitcoin declined to $19,039, the lowest since June 19.
Gamco Investors Inc plunged 12.1% to $17.56 after the company controlled by Mario Gabelli filed a voluntary delisting petition with the New York Stock Exchange.
Gamco has also filed an application with the OTC Markets Group for a quote-listing of its common stock.
Homebuilders were in focus after sentiment in the industry dropped for the ninth month in a row.
Homebuilder sentiment dropped to the lowest level since May 2014, except in the spring of 2020, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index released today.
The index declined 3 points to 46, any reading below 50 indicates negative or a decline.
The number of builders reducing home prices jumped to 24% from 19% in August.
Lennar Corp gained 2.5% to $77.64, Toll Brothers Inc added 1.3% to $44.24, PulteGroup added 2.5% to $40.34 and DR Horton Inc advanced 1.8% to $72.42.
Ralph Lauren Corp increased 2.4% to $95.72 after the company reiterated its fiscal 2023 outlook issued on August 9th.
"Over the next three years, from a base of Fiscal 2022 through Fiscal 2025, the Company expects an acceleration in revenue growth to a compound annual growth rate of mid- to high-single digits in constant currency.
Operating profit growth is expected to exceed the rate of top-line growth as a result of continued operating margin expansion. Operating margin is expected to expand to at least 15% by Fiscal 2025 in constant currency, " added the company in its investor update released Monday.
Theravance Biopharma Inc increased 2.7% to $10.35 after the company announced to buyback its shares in a tender offer of $95 million followed by a $60 million open market purchases to be completed by the end of 2023.
The company also agreed to acquire the entire stake of 9.6 million shares held by GSK for $9.75 a share.
Wix.com Ltd jumped 13% to $83.27 after activist investor Starboard Value controls 9% stake in the web site development company.
- Bridgette Randall
- 19 Sep, 2022
- Frankfurt
Benchmark indexes in Europe traded mixed on the first day of the week after falling 3% in the previous week.
Investors are bracing for rate decisions from at least 13 central banks this week including policy insights from the U.S., Switzerland, China, Japan and the U.K.
U.S. rates are expected to rise for the foreseeable future as the consumer price inflation is running above 8% and the inflation has stayed ahead of the Fed's target rate of 2% for nearly 24 months.
Last Friday, Russia lowered its key lending rate by 50 basis points, matching expectations.
The People's Bank of China lowered its reverse repo rate for 14-day lending to 2.15% from 2.25% on Monday.
The central bank lowered its key lending rate to provide more liquidity in the financial system and spurred banks to increase lending in the housing, steel, and construction related industries.
The Bank of England, The Swiss National Bank and The Bank of Japan are set to release their rate decisions on Thursday.
Bond yields rose across the eurozone and Europe.
The yield on 10-year bonds of Germany rose to 1.79%, the U.K. inched up to 3.16%, France advanced to 2.33%, Italy increased to 4.07% but Switzerland edged down to 1.1%.
The DAX index inched up 0.5% to 12,803.24, the CAC-40 index fell 0.3% to 6,059.70 and the FTSE 100 index dropped 0.6% to 7,236.68.
The dollar rose against all European currencies ahead of the key U.S. rate decision on Wednesday.
The euro traded down to $0.99 and the British pound fell to a nearly a 4-decade low to $1.137.
Brent crude oil edged up 5 cents to $91.37 a barrel and TTF natural gas prices dropped to a 2-month low of 175.06 euros a megawatt hours.
Stocks on European bourses generally traded sideways but with a downward bias.
Porsche IPO Seeks 75 Billion Valuation
Volkswagen AG gained 2.4% to 201.40 euros and the automaker is planning to raise as much as 9.5 billion euro through the initial public offering of its sports car division Porsche Automobil.
Porsche Auto is expected to fetch a valuation between 70 billion and 75 billion euros.
Bundesbank Estimates Recession Ahead
The German economy is anticipated to slow down considerably and slip into a recession in the first quarter 2023, according to the monthly report released by the Bundesbank Monday.
The bank noted that the economic outlook is "extremely uncertain" as energy intensive businesses suffer from a sky-high oil and natural gas prices and slowing consumer spending.
On the consumer inflation front, prices are expected to rise at a faster pace with the expiry of the government subsidy in the purchase of transportation fuel and price cap on utilities on September 1.
Portugal's PPI Eases
Portugal's producer price inflation eased for the second month in a row.
Prices rose at a slower annual pace of 22.4% in August after rising 24.6% in July, Statistics Portugal reported Monday.
Energy prices surged 49.7% and intermediate goods prices increased 20.4%.
On a monthly basis, prices fell 1%, reversing the increase of 0.6% in July.
- Barry Adams
- 19 Sep, 2022
- New York City
Benchmark indexes hugged the flat-line ahead of rate decision this week after a week of sharp sell-off.
The U.S. Federal Reserve Bank's policy committee is set to announce its rate decision this Wednesday and investors are expecting a rate hike between 50 and 75 basis points.
The yield on 2-year Treasury notes rose to 3.96%, 10-year Treasury notes jumped to 3.49% and 30-year bonds increased to 3.5%.
The 10-year Treasury yield is now trading at a 11-year high.
U.S. rates are expected to rise for the foreseeable future as the consumer price inflation is running above 8% and the inflation has stayed ahead of the Fed's target rate of 2% for nearly 24 months.
Moreover, 13 central banks are scheduled to announce their rate decision this week as interest rates are expected to rise around the world.
Last Friday, Russia lowered its key lending rate by 50 basis points, matching expectations.
The People's Bank of China lowered its reverse repo rate for 14-day lending to 2.15% from 2.25% on Monday.
The central bank lowered its key lending rate to provide more liquidity in the financial system and spurred banks to increase lending in the housing, steel, and construction related industries.
The Bank of England and the Bank of Japan are set to release their rate decisions on Thursday.
On Wall Street, stocks were in a holding pattern ahead of the Fed's decision on Wednesday and investors await more insights from policymakers.
The S&P 500 index fell 1.46 to 3,871.0 and the Nasdaq Composite index declined 0.3% or 31.0 points to 11,417.40.
Future price of the immediate-month delivery of crude oil eased 50 cents to $84.72 a barrel and natural gas was nearly unchanged at $7.74 a thermal unit.
In Europe, indexes traded mixed on the first day of the week after falling 3% in the previous week.
The DAX index inched up 0.3% to 12,776.28, the CAC-40 index fell 0.3% to 6,059.70 and the FTSE 100 index dropped 0.6% to 7,236.68.
The dollar rose against all European currencies ahead of the key rate decision on Wednesday.
The euro traded down to $0.99 and the British pound fell to a nearly a 4-decade low to $1.137.
Stocks on European bourses generally traded sideways but with a downward bias.
Volkswagen AG gained 2.4% to 201.40 euros and the automaker is planning to raise as much as 9.5 billion euro through the initial public offering of its sports car division Porsche Automobil.
Porsche Auto is expected to fetch valuation between 70 billion and 75 billion euros.
- Barry Adams
- 16 Sep, 2022
- New York City
Stocks on Wall Street extended weekly losses after the bellwether transportation index declined adding to the list of investor worries.
Nervous investors sold after FedEx withdrew its annual earnings guidance and cited weakening demand for shipments in Asia and delivery difficulties in Europe.
The FedEx earnings and warning on the economy sparked a wave of global selloff after the World Bank also forecasted the arrivals of recession in 2023.
The FedEx earnings warning stoked anxieties of more warnings to follow from other transportation, logistics and retail companies.
The World Bank in its latest report said that the global economic slowdown is accelerating at the fastest pace since the early seventies and several recession indicators are flashing warning signals.
The multilateral bank also said that the global economy is likely to sink into a recession in 2023 as central banks around the world lift interest rates to tame inflation.
In addition, the U.S. dominated institution also cited that despite the higher interest rates, inflation is likely to stay elevated on the persistent supply chain problems.
The S&P 500 index declined 0.7% to 3,873.33 and the Nasdaq Composite index dropped 0.9% to 11,448.40.
For the week, the S&P 500 index declined 4.2% and the Nasdaq Composite index dropped 5.2%.
All eleven sectors logged losses after investors were rattled by an earnings warning from FedEx, another dive in energy prices and bond yields trading near 15-year highs.
Exxon Mobil, Chevron, Schlumberger, Hess Corp and Marathon Oil dropped between 2% and 5%.
Of the eleven sectors only consumer staples and real estate sectors closed up marginally, at close.
Can We Tame Inflation and Avert a Recession?
Investors are increasingly accepting the scenario that high inflation can not be tackled without the high interest rates and the longer the Fed takes in lifting rates to or above 5% the longer the economic slowdown or even a recession will last.
Crude Oil futures increased 33 cents to $85.38 and natural gas fell to 52 cents to $7.79 a thermal unit.
Bond Yields Advance Ahead of Fed Meeting Next Week
The bond yields continue to trade higher with 2-year Treasury notes trading near 15-year high and ahead of 30-year Treasury bonds indicating that the bond market is forecasting a recession or an economic slowdown in the coming quarters.
The yield on 2-year Treasury notes hovered near 3.89%, 10-year notes traded at 3.46% and 30-year bonds at 3.52%.
European Markets Head Lower
Benchmark indexes in Europe extended losses and bond yields rose on the persistent worries of economic slowdown and deepening energy crisis.
The DAX index fell 1.3% to 12,788.31, the CAC-40 index dropped 0.9% to 6,104.77 and the FTSE 100 index fell 0.3% to 7,259.25.
For the week, the DAX fell 2.7%, the CAC-40 declined 2.3%, and the FTSE 100 index dropped 1.7%.
The euro edged up 0.2% to $1,0007 as investors brace for higher rates in the U.S. next week.
Pound at 37-year Low
The U.K. pound declined to a 37-year low of $1.14 as latest economic data point to economic slowdown and weakening activities.
Retail sales in the U.K. dropped 1.6% on a monthly basis in August, the largest monthly decline so far in the year after a 0.4% rise in July, the Office for National Statistics reported Friday.
Eurozone August Inflation Reaffirmed
The Eurozone inflation was unrevised in the final estimate at 9.1% in August according to the Eurostat report released on Friday.
The inflation[s previous estimate was released on August 31 and the rate accelerated from 8.9% in July.
Russia Cuts Rate Again
The Central Bank of Russia lowered its key lending rate by 50 basis points to 7.5%, matching the expectations.
The central bank lowered the rate for the sixth time in a row but guided 2022 inflation to range between 11.0% and 13.0% before cooling down to between 5.0% and 7.0% in 2023.