- Li Chen
- 14 Oct, 2024
- Hong Kong
Market sentiment in China trading was weak after the finance minister failed to provide clarity on the possible fiscal stimulus measures.
The Hang Seng index dropped as much as 1.5% and the CSI 300 index edged higher after investors reacted to comments from the finance minister at a press conference held on Saturday.
At the widely anticipated press conference held by Finance Minister Lan Foan, he reiterated the central government commitment to provide additional liquidity to the local banks and provide direct financial assistance to families.
Minister Foan laid out the government's plan in broad terms to bolster the local government's finances and support the purchase of residential units, helping the property development companies.
The move was widely anticipated, but the plan failed to provide a specific timetable and the size of the stimulus.
Investors were disappointed by the lack of clarity and urgency on the part of policymakers, which could lead to sharp swings in stock trading in the weeks ahead.
Moreover, the latest inflation updates indicated continuation of China's deflationary trend in September.
Consumer price inflation in September slowed to an annual increase of 0.4% from 0.6% in August, the lowest reading in three months, according to the data released by the National Bureau of Statistics.
Consumer price inflation was positive for the eighth consecutive month, but the increase was the smallest in three months because of the weakness in housing prices and transportation costs.
Core consumer inflation, which excludes food and energy prices, increased 0.1% from a year ago.
Producer price inflation, which tracks wholesale prices, declined 2.8% in September, faster than the 1.8% decline in the previous month, the statistics bureau reported in a separate report over the weekend.
Producer prices contracted for the 24th month in a row and fell at the fastest pace since March.
China Stock Movers
The Hang Seng index increased 0.2% to 21,284.91 and the CSI 300 index advanced 2% to 3,965.41.
Alibaba Group declined 0.5% to HK $105.30, JD.com rose 1.6% to HK $169.80, and Tencent.com Holdings dropped 0.8% to HK $435.40.
Longfor Group rose 2.7% to HK $13.74, China Vanke added 1.4% to HK $7.41, and China Resources Land jumped 7.4% to HK $27.60.
China International Capital Corp. dropped 5.2% to HK $13.90 after China's securities regulator confirmed that the company is investigated for its lack of due diligence while listing a local chip company in 2021.
- Arun Goswami
- 14 Oct, 2024
- Mumbai
Stocks in Mumbai advanced as the earning season kicked in. Inclement weather in August dragged down industrial production.
The Sensex index decreased by 0.1% to 81,597.77, and the Nifty index rose by 0.05% to 25,000.82.
On the Mumbai stock exchange, 104 stocks traded at their 52-week highs, and 17 stocks traded at their 52-week lows.
Avenue Supermarts dropped 8% after the parent company of DMart reported weaker-than-expected earnings growth.
Revenue in the September quarter increased 14.4% from a year ago to 14,444.5 crore, and net income advanced 5.8% to 659.6 crore.
Comparable sales increased 5.5%, driven primarily by quick commerce sales at online stores DMart Ready.
Adani Power increased 0.3% to ₹644.0, and the interim government in Bangladesh is expected to seek minor tariff revisions in the 25-year power purchase agreement initiated in 2017.
Currently, Adani sells wholesale power to Bangladesh from its 1,600 MW power plant in Jharkhand.
Oberoi Realty Ltd. increased 0.6% to ₹1,930.20, and the company is planning to raise as much as ₹6,000 crore through a secondary offering.
The Mumbai-based residential real estate developer reported a 54.5% increase in its revenue in the June quarter, and the company estimated revenue growth of at least 35% in the current fiscal year.
Godrej Properties edged down 0.3% to ₹3,005.60, and the Mumbai-based residential real estate developer acquired six land parcels valued at ₹9,650 crore.
The company reported new home sales jumped 3% to ₹5,200 crore in the fiscal second quarter ending in September.
Adani Energy Solutions advanced 1.7% to ₹993.90, and the company said it signed a long-term power distribution agreement with Kenya-controlled Kenya Electricity Transmission Company.
The company plans to invest $736 million (₹6,200 crore) in building and operating key transmission lines and substations for 30 years before transferring assets to Ketraco.
Adani Enterprises increased 0.1% to ₹3,140.50, and the company completed its $500 million secondary offering, which was oversubscribed by four times.
Macrotech Developers advanced 1% to ₹1,182.05, and the company said booking for new home sales in the September quarter increased 21% from a year ago to ₹4,290 crore.
Total debt increased 11% to ₹4,920 crore, and the residential property developer estimated sales in the current fiscal year of ₹17,500 crore.
Life Insurance Corporation of India gained 1.1% to ₹958.65, and the company said new premium sales in September increased 14% to ₹35,020 crore from 30,716 crore a year ago.
- Scott Peters
- 11 Oct, 2024
- New York City
Stellantis NV decreased 3.5% to $12.84, and the parent of Chrysler announced a management shakeup that will change the heads of the Alfa Romeo, Jeep, and Maserati brands.
The company also announced that the current chief executive will retire at the end of his term in 2026.
JPMorgan Chase rose 5% to $223.34 after the New York-based bank reported better-than-expected quarterly results.
Revenue in the third quarter increased 6% to $43.32 billion, and net income declined to $12.9 billion from a year ago.
Net interest income rose 3% to $23.3 billion, fixed income trading revenue was unchanged at $4.5 billion, and investment banking fees increased 31% to $2.27 billion.
The company raised its net interest income estimate for the year to $92.5 billion from the previous estimate of $91 billion.
The company increased its loan loss reserve to $3.1 billion to cover the loan loss charge of $2.1 billion and provide an extra cushion of $1 billion for the future.
Wells Fargo increased 5.7% to $61.05 after the bank reported better-than-expected quarterly results.
Revenue in the third quarter declined 2% to $20.4 billion from $20.9 billion, net income dropped to $5.1 billion from $5.8 billion, and diluted earnings per share fell to $1.42 from $1.48 a year ago.
BlackRock increased 3% to $984.58, and the asset management company reported strong quarterly results.
Revenue in the third quarter increased 15% to $5.2 billion from $4.5 billion, net income advanced 2% to $1.63 billion from $1.6 billion, and diluted earnings per share rose 2% to $10.90 from $10.66 a year ago.
Assets under management increased 15% to $11.475 trillion from $9.10 trillion, driven by a total net inflow of $221.8 billion.
- Barry Adams
- 11 Oct, 2024
- New York City
Benchmark indexes headed for the fifth winning weak on Wall Street as investors reviewed the latest earnings from banks and wholesale inflation.
The S&P 500 increased 0.2% and the Nasdaq Composite edged lower 0.2% after the measure of wholesale inflation showed a cooling trend in September.
For the week, the S&P 500 index is up 0.5% and the Nasdaq Composite advanced 0.8% as of the end of close on Thursday.
Producer price inflation was flat from the previous month following the increase of 0.2% in the previous month, the U.S. Bureau of Labor Statistics reported Friday.
On an annual basis, the measure of wholesale inflation slowed to 1.8% from an upwardly revised 1.9% in the previous month.
However, the core rate of inflation, which excludes food and energy prices, accelerated to 2.8% from 2.7% in the previous month.
Despite the cooling trend in overall inflation, core wholesale inflation rose, confirming the similar trend in consumer price inflation.
Investors have been ignoring the rise in core inflation, which is driven by service inflation, and despite the Fed's eleven rate hikes over 2022 and 2023, inflation has failed to slow to the target rate of 2%.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.2% to 5,789.69, the Nasdaq Composite fell 0.2% to 18,246.11, and the Russell 2000 index declined 0.5% to 2,189.52.
The yield on 2-year Treasury notes edged lower to 3.97%, 10-year Treasury notes inched up to 4.10%, and 30-year Treasury bonds inched higher to 4.41%.
WTI crude oil increased $0.71 to $75.13 a barrel, and natural gas prices edged down 1 cent to $2.65 a thermal unit.
Gold rose by $14.60 to $2,647.15 an ounce, and silver increased by $0.21 to $31.24.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 102.98.
U.S. Stock Movers
Stellantis NV decreased 3.5% to $12.84, and the parent of Chrysler announced a management shakeup that will change the heads of the Alfa Romeo, Jeep, and Maserati brands.
The company also announced that the current chief executive will retire at the end of his term in 2026.
JPMorgan Chase rose 5% to $223.34 after the New York-based bank reported better-than-expected quarterly results.
Revenue in the third quarter increased 6% to $43.32 billion, and net income declined to $12.9 billion from a year ago.
Net interest income rose 3% to $23.3 billion, fixed income trading revenue was unchanged at $4.5 billion, and investment banking fees increased 31% to $2.27 billion.
The company raised its net interest income estimate for the year to $92.5 billion from the previous estimate of $91 billion.
The company increased its loan loss reserve to $3.1 billion to cover the loan loss charge of $2.1 billion and provide an extra cushion of $1 billion for the future.
Wells Fargo increased 5.7% to $61.05 after the bank reported better-than-expected quarterly results.
Revenue in the third quarter declined 2% to $20.4 billion from $20.9 billion, net income dropped to $5.1 billion from $5.8 billion, and diluted earnings per share fell to $1.42 from $1.48 a year ago.
BlackRock increased 3% to $984.58, and the asset management company reported strong quarterly results.
Revenue in the third quarter increased 15% to $5.2 billion from $4.5 billion, net income advanced 2% to $1.63 billion from $1.6 billion, and diluted earnings per share rose 2% to $10.90 from $10.66 a year ago.
Assets under management increased 15% to $11.475 trillion from $9.10 trillion, driven by a total net inflow of $221.8 billion.
- Inga Muller
- 11 Oct, 2024
- Frankfurt
European markets struggled to advance amid a lack of domestic catalyst. France's proposed fiscal budget estimates a 5% deficit and calls for a mix of spending cuts and new taxes.
The DAX index increased by 0.1% to 19,229.95; the CAC-40 index rose by 0.1% to 7,545.45; and the FTSE 100 index declined by 0.2% to 8,224.35.
For the week, the DAX index increased 1%, the CAC-40 index added 0.4%, and the FTSE 100 index decreased 0.6%.
The yield on 10-year German bonds edged higher to 2.29%, French bonds inched higher to 3.07%, the UK gilts edged up to 4.25%, and Italian bonds increased to 3.56%.
Stellantis NV declined 3.7% to €11.73, and the Italian vehicle maker said chief executive Carlos Tavares retired in 2026 after the company announced a management shakeup.
The automotive global conglomerate also announced new leaders for its Maserati, Alfa Romeo, and Jeep brands.
Doug Ostermann will replace Natalie Knight as the new chief financial officer as the company struggles amid falling sales in China and intensifying competition in Europe.
Late September, the company's management lowered its current year annual profit outlook and added its operating cash flow is going to be negative.
Porsche Automobil SE edged down 0.1% to €39.84 after the German sports vehicle maker reported weak vehicle sales in the nine months of fiscal 2024.
BP plc declined 0.1% to 410.60 pence, and the energy giant confirmed in its trading statement that weak refining margins and volatile trading are going to negatively impact its earnings.
Hays plc rose 0.8% to 86.45 pence despite the recruiting company reporting a sequential decline in its first-half operating profit.
Zalando SE increased 0.1% to €29.84 after the German online retailer lifted its fiscal year outlook.
- Bridgette Randall
- 11 Oct, 2024
- London
European markets lacked direction in Friday's trading as investors reviewed the region's economic data and looked forward to China's finance minister's press briefing on Saturday.
Benchmark indexes in Paris, Milan, Frankfurt, and London struggled to advance, and the euro edged slightly lower.
France's prime minister, Michele Barnier, proposed a fiscal budge with the aim of lowering the budget deficit to 5% of gross domestic product, still higher than the 3% limit set by the European Union.
The proposed budget includes spending cuts of Є41.3 billion and tax increases of Є19.3 billion targeting ultra-wealthy individuals and large businesses.
Budget is expected to face tough resistance in the fragmented legislative assembly, but France has little choice and must find ways to bring down its large and growing budget deficit if it wants to avoid restrictions from the European Union.
In other economic news, Germany's consumer price inflation slowed to 1.6% in September from 1.9% in August. the Federal Statistical Office confirmed in a report today.
The preliminary estimate was released on September 30.
Europe Indexes and Yields
The DAX index increased by 0.1% to 19,229.95; the CAC-40 index rose by 0.1% to 7,545.45; and the FTSE 100 index declined by 0.2% to 8,224.35.
For the week, the DAX index increased 1%, the CAC-40 index added 0.4%, and the FTSE 100 index decreased 0.6%.
The yield on 10-year German bonds edged higher to 2.29%, French bonds inched higher to 3.07%, the UK gilts edged up to 4.25%, and Italian bonds increased to 3.56%.
The euro edged lower to $1.09; the British pound inched higher to $1.30; and the U.S. dollar strengthened to 85.79 Swiss cents.
Brent crude decreased $0.67 to $78.72 a barrel, and the Dutch TTF natural gas rose by €0.12 to €40.21 per MWh.
Europe Stock Movers
Stellantis NV declined 3.7% to €11.73, and the Italian vehicle maker said chief executive Carlos Tavares retired in 2026 after the company announced a management shakeup.
The automotive global conglomerate also announced new leaders for its Maserati, Alfa Romeo, and Jeep brands.
Doug Ostermann will replace Natalie Knight as the new chief financial officer as the company struggles amid falling sales in China and intensifying competition in Europe.
Late September, the company's management lowered its current year annual profit outlook and added its operating cash flow is going to be negative.
Porsche Automobil SE edged down 0.1% to €39.84 after the German sports vehicle maker reported weak vehicle sales in the nine months of fiscal 2024.
BP plc declined 0.1% to 410.60 pence, and the energy giant confirmed in its trading statement that weak refining margins and volatile trading are going to negatively impact its earnings.
Hays plc rose 0.8% to 86.45 pence despite the recruiting company reporting a sequential decline in its first-half operating profit.
Zalando SE increased 0.1% to €29.84 after the German online retailer lifted its fiscal year outlook.
- Akira Ito
- 11 Oct, 2024
- Tokyo
Market indexes in Japan advanced for the third consecutive session and traded at two-week highs.
The Nikkei 225 stock average gained 0.5% and the broader Topix index edged lower 0.1%.
The yen drifted lower to 148.68 against the U.S. dollar as investors lowered expectations of another rate increase in the imminent future.
Financial markets in Tokyo traded volatile over the last four weeks amid rising geopolitical tensions, and a rebound in crude oil prices also stoked fears of resurgent inflation.
Volatility in the yen has also overshadowed market sentiment in stocks, with the yen dropping as low as 161.68 in early July but managed to recover to the 140 mark.
The Bank of Japan commenced its rate increase cycle in March, followed by the second rate increase in July, and signaled additional rate hikes.
However, the central bank policymakers have stressed several times that future rate increases are likely but not imminent, and the central bank needs time to review the impact of recent rate increases on the economy.
Japan Stock Movers
The Nikkei 225 stock average increased 0.5% to 39,582.32, and the broader Topix index declined 0.1% to 2,708.65.
For the week, the Nikkei 225 edged higher by 0.5% and the Topix index decreased by 1%.
Fast Retailing surged 5.5% to ¥54,220.0 after the parent company of Uniqlo reported better-than-expected earnings.
Revenue in the fiscal year ending in August increased 12.2% to 3.1 trillion yen, net profit rose 25% to 393.6 billion yen, and diluted earnings per share rose to 1,210.81 yen from 964.48 yen a year ago.
For the full year, the company increased its dividends to 122.7 billion yen from 88.93 billion yen, an increase in payout ratio to 33.3% from 30% a year ago.
Revenue in Japan increased 4.7% to 932.2 billion yen, and operating profit soared 32% to 155.8 billion yen.
Warmer weather in the fiscal second half and the surge in tourism supported the rise in sales at domestic stores.
Same store sales in the first half contracted 3.4% as a result of the warm winter, but sales rebounded in the second half to 11.7% as the company took advantage of longer summer weather temperatures.
Revenue at international stores increased 19.1% to 1.72 trillion yen, and operating profit soared 24.9% to 283.4 billion yen.
In fiscal year 2025, the company expects consolidated revenue to increase 9.5% to 3.4 trillion yen, operating profit to rise 5.8% to 530 billion yen, profit before income taxes to rise 5% to 585.0 billion, and profit attributable to owners of the parent to rise 3.5% to 385.0 billion yen.
Seven & I declined 1.4% to ¥2,292.0, and the parent company of Seven 11 announced restructuring to lift its stock price.
Revenue for the six-month period ending August increased 8.8% to 6.03 trillion yen, net income declined 26.3% to 167.2 billion yen, and diluted earnings per share fell to 20.08 yen from 30.28 yen.
The company also reiterated its plans to lower its total annual dividend to 20 yen per share from 113 yen in the previous year.
The company estimated full-year revenue in the fiscal year 2025 to increase 3.5% to 11.87 trillion yen, net income attributable to shareholders to fall 27.4% to 163 billion yen, and diluted earnings per share of 62.74 yen.
Sales at domestic stores declined to 462.4 billion yen compared to 470.7 billion yen as consumers battled rising prices.
- Li Chen
- 11 Oct, 2024
- Hong Kong
Market sentiment was cautious ahead of the finance minister's conference on Saturday as investors awaited more clarity on stimulus measures.
The CSI 300 index decreased 2.4%, setting the stage for the first weekly loss in four weeks.
Financial markets in Hong Kong are closed for a public holiday and will resume trading on Monday.
Stock market indexes in mainland China and Hong Kong have soared over the last four weeks after the People's Bank of China announced monetary measures to revive investor confidence.
Moreover, three weeks ago, top political leaders signaled the release of additional fiscal measures to revive consumption and support the moribund residential property market.
However, investors have been let down in the past by politicians with piecemeal measures that do little to revive consumer confidence.
Chinese politicians and regulators have a history of announcing bold reforms and wild projections, which have not been followed up with real reforms.
Politicians are struggling to deliver deep fiscal measures that will require financial commitments of between $2 trillion and $3 trillion and approval from the National People's Congress.
Investors are hoping that Finance Minister Lao Fan at Saturday's conference will announce significant measures to pump liquidity into the real economy, including bond sales and measures to revive consumption.
China Stock Movers
The CSI 300 index declined 2.4% to 3,905.40, and the SSE Composite index decreased 1.9%.
Contemporary Amperex Technology Co. Ltd. declined 5.4% to ¥244.07, and Semiconductor Manufacturing International Corp. dropped 4.5% to ¥71.37.
China Vanke declined 1.4% to ¥9.25, China Shenhua Energy fell 1.5% to ¥42.32, and Sinopec Shanghai Petrochemical fell 0.7% to ¥2.89.
- Arun Goswami
- 11 Oct, 2024
- Mumbai
India indexes extended losses for the second week in a row, bond yields edged lower, and the Indian rupee hovered near record low.
The Sensex index decreased by 0.1% to 81,597.77, and the Nifty index rose by 0.05% to 25,000.82.
On the Mumbai stock exchange, 104 stocks traded at their 52-week highs, and 17 stocks traded at their 52-week lows.
NBCC India increased 0.3% to ₹117.33, and the company's subsidiary won a ₹1,000 crore contract to develop the campus of Gondwana University in Maharashtra.
Ola Electric Mobility increased 0.2% to ₹90.97, and the company said it is cooperating with the Automotive Research Association's investigation about product defects and delivery delays.
Puravankara Ltd. increased 0.5% to ₹388.45, and the residential property developer said booking in the September quarter dropped 17% from a year ago to ₹1,331 crore.
Tata Consultancy Services declined 0.3% to ₹4,199.30 after the company reported mixed quarterly results.
Revenue in the September quarter rose 7.6% from a year ago to ₹64,259 crore, and net income advanced 5% to ₹11,909 crore.
Net income from the previous quarter was 1.1%, and total contract value for new orders plunged 23% from a year ago to $8.6 billion.
Tata Elxsi Ltd. increased 1.1% to ₹7,848.60 after the engineering and technology company reported higher sales and earnings in the September quarter.
Revenue increased 8.3% from a year ago to ₹955 crore, and net income advanced 14.7% to ₹229 crore.
- Alexander Garcia
- 10 Oct, 2024
- Miami
Stocks on Wall Street struggled after consumer price inflation was ahead of market expectations and initial jobless claims soared.
The S&P 500 index edged down 0.2% and the Nasdaq Composite rose 0.1% on the worry that the Federal Reserve may slow down its rate-cut cycle following the stubborn inflation report.
Despite the Fed's eleven rate hikes over 2022 and 2023, inflation has not dropped near the target rate of 2%, indicating rates are still not restrictive enough.
Overall inflation has been moderating since June 2022, but that decline is largely reflecting the fall in energy prices, which are not impacted by the Fed's policy decisions.
Moreover, inflation is likely to rebound from November when comparison with the previous year becomes tougher because of the lower base.
Despite the Fed's tough talk on inflation, core inflation is still above the Fed's target rate and may swing higher because most services are still passing higher prices to consumers.
In other words, interest rates have never been restrictive enough for inflation forces to be tamed, since the onset of the COVID-19 in 2020.
U.S. CPI Declines but Core CPI Rebounds In September
Consumer price inflation slowed to 2.4% in September, the sixth consecutive month of decline, the U.S. Bureau of Labor Statistics reported Thursday.
Overall inflation dropped to the lowest level since February 2021.
The decline in inflation largely reflected the weakness in energy prices, and energy costs fell at a faster pace of 6.8% compared to 4.0% in the previous month.
The cost of shelter rose at a slower pace of 4.9% compared to 5.2% in the previous month.
However, food inflation accelerated to 2.3% from 2.1%, and transportation jumped to 8.5% from 7.9%.
Core inflation edged up to 3.3% in September after staying at a three-year low of 3.2% in the previous two consecutive months.
Hurricane and Michigan Layoffs Drive Weekly Jobless Claims Higher
In other economic news, initial jobless claims rose by 33,000 to 258,000 for the week ending October 5, the Department of Labor reported Thursday.
Initial jobless claims increase was driven by the increase in claims in Florida by 3,842 and North Carolina by 8,534 following the widespread damages caused by Hurricane Helena.
Moreover, large-scale layoffs in Michigan, driven by 10,667 job losses in manufacturing and management over the past two weeks, also contributed to the increase in weekly claims.
Continuing claims, which lag by one week, rose 42,000 to 1.861 million.
U.S. Indexes and Treasury Yields
The S&P 500 index decreased 0.1% to 5,784.13, the Nasdaq Composite rose 0.1% to 18,302.15, and the Russell 2000 index declined 0.9% to 2,182.11.
The yield on 2-year Treasury notes edged lower to 3.98%, 10-year Treasury notes inched up to 4.07%, and 30-year Treasury bonds inched higher to 4.36%.
WTI crude oil increased $2.79 to $76.04 a barrel, and natural gas prices edged down 3 cents to $2.62 a thermal unit.
Gold fell by $16.10 to $2,624.16 an ounce, and silver increased by $0.57 to $31.07.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 102.90.
U.S. Stock Movers
Delta Air Lines declined 0.2% to $50.72 after the company's forward-looking outlook disappointed some investors.
Revenue in the third quarter increased 1% to $15.7 billion from $15.5 billion, net income increased 15% to $1.3 billion from $1.1 billion, and diluted earnings per share rose to $1.97 from $1.92 a year ago.
The airline said the direct revenue impact caused by the CrowdStrike-caused outage on August 8 was about $380 million, and the fuel expense was $50 million lower because of 7,000 flight cancellations over the five-day period.
Hurricane Milton exited from the Florida East Coast, leaving behind a wave of destruction, flash flooding, and power outages for at least 3 million residents.
Universal Insurance, which primarily provides catastrophic insurance in Florida, rose 10.9% to $10.82.
Other property insurance companies with significant Florida exposures rebounded after falling in the previous three consecutive sessions.
Allstate Corp. increased 1.2% to $187.26, Fidelis Insurance jumped 2.2% to $17.90, and Progressive Corp. gained 0.9% to $252.82.
Generac Holdings declined 2.8% to $167.36, and the generator provider had run up as much as 11% over the last three days as Hurricane Milton had intensified.
European Markets Traded Around Flatline
European markets lacked momentum on Thursday as investors reassessed the future rate path amid elevated geopolitical tensions.
Benchmark indexes in London, Paris, and Frankfurt struggled to rise above the flatline as investors worried that weak economic growth in the Euro Area could crimp corporate earnings in the second half.
On the economic front, investors reviewed Germany's retail sales, Swedish GDP growth, and Norway's inflation data.
Germany's Retail Sales Growth Accelerated In August
Germany's retail sales in August accelerated to a monthly increase of 1.6% in August from 1.5% in July, the Federal Statistical Office, or Destatis, reported today.
Monthly retail sales rose by the same amount in both real and nominal terms, adjusted for calendar and seasonal effects.
Food sales increased 1.9% and nonfood sales rose 1.1%, and e-commerce and mail order sales advanced 8.9%.
From a year ago, retail sales rose 2.1% after adjusting for inflation and increased 3.1% in nominal terms.
The statistical office resumed reporting retail sales after suspending in June due to technology issues encountered during a conversion process while meeting new EU data requirements.
Retail sales rebounded after falling monthly 1.4% in May and 1.1% in June.
Norway's CPI Accelerated in September
Norway's consumer price inflation increased 3% in September from 2.6% in August and rebounded to the highest pace since May, Statistics Norway reported Thursday.
Consumer price inflation, adjusted for tax charges and energy prices, increased at a slower pace of 3.1% in September from 3.2% in August, dropping to the lowest level since August 2022.
Sweden's GDP Expanded at the Fastest Pace in 13 months
Sweden's GDP growth in August rebounded to 1.1% from the downwardly revised 0.9% decline in August, Statistics Sweden reported Thursday.
The monthly rate of increase in August was the strongest in 13 months, and faster household consumption and an increase in service sector activities were the key drivers.
Europe Indexes and Yields
The DAX index increased by 0.01% to 19,210.19; the CAC-40 index fell by 0.2% to 7,541.59; and the FTSE 100 index declined by 0.1% to 8,237.73.
The yield on 10-year German bonds edged higher to 2.27%, French bonds inched higher to 3.04%, the UK gilts edged up to 4.24%, and Italian bonds increased to 3.57%.
The euro edged lower to $1.09; the British pound inched higher to $1.31; and the U.S. dollar strengthened to 85.85 Swiss cents.
Brent crude decreased $2.95 to $79.55 a barrel, and the Dutch TTF natural gas rose by €1.55 to €40.06 per MWh.
Europe Stock Movers
GSK plc increased 4.5% to 1,525.0 pence after the British drug maker agreed to settle 80,000 lawsuits in state courts in the U.S. related to Zantac.
SCOR SE increased 3.2% to €20.60, and the French reinsurance company initiated a discussion to sell its stake in the ninth largest educational publishing company.
SCOR entered into exclusive negotiations with Huyghens de Participations, the holding company of the Albin Michel group, for the sale of its stake in the capital of Humensis.
Deutsche Telekom increased 1.5% to €27.16 after the German telephone company said it plans a stock buyback program in 2025.
BMW decreased 0.2% to €76.60 after the German luxury automobile company reported sales in the third quarter declined, weighed down by the weakness in China.
Unit sales across all models declined 13% from a year ago in the quarter, driven by a 30% plunge in China.
Sales across battery-operated and hybrid vehicles stalled at 0.1% after rising at 40% in the corresponding period in 2023.
Suedzucker AG declined 0.5% to €11.12 after the German company reported a decline in operating results in the second quarter amid high costs and low prices.
Yen Drops to Six-Week Low, Producer Price Inflation Accelerates In September
Tech stocks powered the market rebound in Tokyo in Thursday's trading, tracking gains in overnight trading in New York.
The Nikkei 225 stock average gained 0.3%, and the broader Topix index advanced 0.2%.
The yen continued its downward journey to 149.16 against the U.S. dollar and fell to a six-week low as investors lowered their expectations of another rate increase in the near future.
Producer price inflation in Japan accelerated to 2.8% in September from 2.6% in August, the Bank of Japan reported Thursday.
The measure of wholesale price inflation was positive for the 43rd month in a row, due mainly to higher prices of basic items, including food staples and rice.
Rising costs of transportation and fertilizers contributed to inflationary pressures.
Stock market indexes in Tokyo have been volatile amid rate path uncertainties, elevated geopolitical tensions in the Middle East, and worries about the economic slowdown in China and the U.S.
The People's Bank of China launched a new lending program worth 500 billion yuan, or $70 billion, that will provide liquidity to qualified brokerage houses, insurance companies, and asset management companies to purchase stocks.
Investors are hoping that the press conference scheduled by China's finance minister on Saturday may provide clarity on potential broad fiscal reforms.
Investors are also gearing up for the start of the earnings season starting Friday, and retail stocks were in focus ahead of the release of their quarterly results.
Japan Stock Movers
The Nikkei 225 Stock Average increased 0.3% to 39,380.89, and the broader Topix index added 0.2% to 2,712.67.
Mitsubishi UFJ Financial increased 1.6% to ¥1,525.50, Sumitomo Mitsui Financial advanced 1.3% to ¥3,121.0, and Mizuho Financial gained 0.6% to ¥3,018.0.
Seven & I decreased 0.4% to ¥2,325.0, Fast Retailing Company increased 1.3% to ¥51,360.0, and Isetan Mitsukoshi rose 0.9% to ¥2,355.0.
Toyota Motor advanced 0.7% to ¥2,581.0, Honda Motor increased 1.4% to ¥1,574.0, and Nissan Motor edged higher 1% to ¥399.80.
Marubeni Corp. added 1% to ¥2,438.50, Itochu Corp gained 0.7% to ¥7,769.0, and Mitsui & Company added 0.7% to ¥3,256.0.
China Indexes Advanced 3% After PBoC Launched $70 B Swap Facility
Financial markets in mainland China and Hong Kong rebounded after the central bank launched its lending plan to facilitate liquidity in the stock market.
The Hang Seng index jumped nearly 4%, and the mainland-focused CSI 300 index advanced as much as 3%.
The People's Bank of China launched its 500 billion yuan swap plan for "qualified brokerage firms, life insurance, and asset management companies to exchange their bond holdings for Treasury bonds and bills," according to the statement released by the central bank.
The move is part of the 800 billion yuan plan announced by the central bank a few weeks ago to stabilize financial markets.
The central bank also plans to facilitate stock buyback plans and stake increases by listed companies and major shareholders.
Investors are also looking forward to a press conference by Finance Minister Lan Foan on Saturday, and market participants are anticipating the release of new fiscal measures.
China's stock markets have been volatile over the last four weeks after the People's Bank of China unexpectedly announced monetary measures to increase liquidity in the financial system.
However, China's top leadership signaled the possibilities of more fiscal measures at a hurriedly scheduled meeting ahead of the start of the Golden Week holiday; however, those expectations have not been met so far.
The world's second-largest economy is struggling to meet the 5% annual GDP growth target rate set by the top leadership, and many economists have lowered their 2024 growth estimate to 4.6%.
Financial markets are expected to remain volatile until the government implements measures to revive the residential property market and boost consumer spending.
Financial markets in Hong Kong are close on Friday for a holiday, and the Hang Seng index decreased nearly 3% in the shortened week of trading.
China Stock Movers
The Hang Seng index increased 3.7% to 21,400.54, and the CSI 300 index advanced 2.4% to 4,051.56.
Longfor Group increased 7% to HK $13.42, China Vanke increased 7.5% to HK $7.36, and China Resources Land advanced 2.9% to HK $25.90.
Sun Hung Kai Properties decreased 0.8% to HK $84.95, and New World Development added 1.3% to HK $8.63.
Life insurance companies traded higher after China's central bank launched swap facilities that could provide additional liquidity to purchase more stocks.
China Life increased 5% to HK $16.50, and Ping An Insurance advanced 6% to HK $51.0.
Haitong Securities and Goutai Junan Securities jumped the daily limit of 10% in mainland trading after both companies announced a detailed merger plan.
Both brokerages traded for the first time after being suspended from trading on September 5.
In Hong Kong, Haitong Securities soared 97% to HK $7.13.
- Scott Peters
- 10 Oct, 2024
- New York City
Delta Air Lines declined 0.2% to $50.72 after the company's forward-looking outlook disappointed some investors.
Revenue in the third quarter increased 1% to $15.7 billion from $15.5 billion, net income increased 15% to $1.3 billion from $1.1 billion, and diluted earnings per share rose to $1.97 from $1.92 a year ago.
The airline said the direct revenue impact caused by the CrowdStrike-caused outage on August 8 was about $380 million, and the fuel expense was $50 million lower because of 7,000 flight cancellations over the five-day period.
Hurricane Milton exited from the Florida East Coast, leaving behind a wave of destruction, flash flooding, and power outages for at least 3 million residents.
Universal Insurance, which primarily provides catastrophic insurance in Florida, rose 10.9% to $10.82.
Other property insurance companies with significant Florida exposures rebounded after falling in the previous three consecutive sessions.
Allstate Corp. increased 1.2% to $187.26, Fidelis Insurance jumped 2.2% to $17.90, and Progressive Corp. gained 0.9% to $252.82.
Generac Holdings declined 2.8% to $167.36, and the generator provider had run up as much as 11% over the last three days as Hurricane Milton had intensified.
- Barry Adams
- 10 Oct, 2024
- New York City
Stocks on Wall Street headed lower after consumer price inflation was ahead of market expectations and initial jobless claims soared.
The S&P 500 index edged down 0.2% and the Nasdaq Composite declined 0.4% on the worry that the Federal Reserve may slow down its rate-cut cycle following the stubborn inflation report.
Despite the Fed's eleven rate hikes over 2022 and 2023, inflation has not dropped near the target rate of 2%, indicating rates are still not restrictive enough.
Overall inflation has been moderating since June 2022, but that decline is largely reflecting the fall in energy prices, which are not impacted by the Fed's policy decisions.
CPI and Core CPI Diverged In September
Consumer price inflation slowed to 2.4% in September, the sixth consecutive month of decline, the U.S. Bureau of Labor Statistics reported Thursday.
Overall inflation dropped to the lowest level since February 2021.
The decline in inflation largely reflected the weakness in energy prices, and energy costs fell at a faster pace of 6.8% compared to 4.0% in the previous month.
The cost of shelter rose at a slower pace of 4.9% compared to 5.2% in the previous month.
However, food inflation accelerated to 2.3% from 2.1%, and transportation jumped to 8.5% from 7.9%.
Core inflation edged up to 3.3% in September after staying at a three-year low of 3.2% in the previous two consecutive months.
Hurricane and Michigan Layoffs Drive Weekly Jobless Claims Higher
In other economic news, initial jobless claims rose by 33,000 to 258,000 for the week ending October 5, the Department of Labor reported Thursday.
Initial jobless claims increase was driven by the increase in claims in Florida by 3,842 and North Carolina by 8,534 following the widespread damages caused by Hurricane Helena.
Moreover, large-scale layoffs in Michigan, driven by 10,667 job losses in manufacturing and management over the past two weeks, also contributed to the increase in weekly claims.
Continuing claims, which lag by one week, rose 42,000 to 1.861 million.
U.S. Indexes and Treasury Yields
The S&P 500 index decreased 0.2% to 5,779.49, the Nasdaq Composite fell 0.4% to 18,213.09, and the Russell 2000 index declined 1.1% to 2,174.50.
The yield on 2-year Treasury notes edged lower to 3.98%, 10-year Treasury notes inched up to 4.07%, and 30-year Treasury bonds inched higher to 4.36%.
WTI crude oil increased $0.90 to $74.14 a barrel, and natural gas prices edged down 3 cents to $2.62 a thermal unit.
Gold fell by $10.40 to $2,611.10 an ounce, and silver increased by $0.14 to $30.64.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 102.90.
U.S. Stock Movers
Delta Air Lines declined 0.2% to $50.72 after the company's forward-looking outlook disappointed some investors.
Revenue in the third quarter increased 1% to $15.7 billion from $15.5 billion, net income increased 15% to $1.3 billion from $1.1 billion, and diluted earnings per share rose to $1.97 from $1.92 a year ago.
The airline said the direct revenue impact caused by the CrowdStrike-caused outage on August 8 was about $380 million, and the fuel expense was $50 million lower because of 7,000 flight cancellations over the five-day period.
Hurricane Milton exited from the Florida East Coast, leaving behind a wave of destruction, flash flooding, and power outages for at least 3 million residents.
Universal Insurance, which primarily provides catastrophic insurance in Florida, rose 10.9% to $10.82.
Other property insurance companies with significant Florida exposures rebounded after falling in the previous three consecutive sessions.
Allstate Corp. increased 1.2% to $187.26, Fidelis Insurance jumped 2.2% to $17.90, and Progressive Corp. gained 0.9% to $252.82.
Generac Holdings declined 2.8% to $167.36, and the generator provider had run up as much as 11% over the last three days as Hurricane Milton had intensified.
- Inga Muller
- 10 Oct, 2024
- Frankfurt
Germany's nominal and real retail sales growth accelerated in August, driven by an increase in food and nonfood sales.
Norway's consumer price inflation accelerated in September to 3.2%, the highest pace since May.
The DAX index increased by 0.01% to 19,255.54; the CAC-40 index fell by 0.2% to 7,545.81; and the FTSE 100 index declined by 0.3% to 8,219.22.
The yield on 10-year German bonds edged higher to 2.27%, French bonds inched higher to 3.04%, the UK gilts edged up to 4.24%, and Italian bonds increased to 3.57%.
GSK plc increased 4.5% to 1,525.0 pence after the British drug maker agreed to settle 80,000 lawsuits in state courts in the U.S. related to Zantac.
SCOR SE increased 3.2% to €20.60, and the French reinsurance company initiated a discussion to sell its stake in the ninth largest educational publishing company.
SCOR entered into exclusive negotiations with Huyghens de Participations, the holding company of the Albin Michel group, for the sale of its stake in the capital of Humensis.
Deutsche Telekom increased 1.5% to €27.16 after the German telephone company said it plans a stock buyback program in 2025.
BMW decreased 0.2% to €76.60 after the German luxury automobile company reported sales in the third quarter declined, weighed down by the weakness in China.
Unit sales across all models declined 13% from a year ago in the quarter, driven by a 30% plunge in China.
Sales across battery-operated and hybrid vehicles stalled at 0.1% after rising at 40% in the corresponding period in 2023.
Suedzucker AG declined 0.5% to €11.12 after the German company reported a decline in operating results in the second quarter amid high costs and low prices.
- Bridgette Randall
- 10 Oct, 2024
- London
European markets lacked momentum on Thursday as investors reassessed the future rate path amid elevated geopolitical tensions.
Benchmark indexes in London, Paris, and Frankfurt struggled to rise above the flatline as investors worried that weak economic growth in the Euro Area could crimp corporate earnings in the second half.
On the economic front, investors reviewed Germany's retail sales, Swedish GDP growth, and Norway's inflation data.
Germany's Retail Sales Growth Accelerated In August
Germany's retail sales in August accelerated to a monthly increase of 1.6% from 1.5% in July, the Federal Statistical Office, or Destatis, reported today.
Monthly retail sales rose by the same amount in both real and nominal terms, adjusted for calendar and seasonal effects.
Food sales increased 1.9% and nonfood sales rose 1.1%, and e-commerce and mail order sales advanced 8.9%.
From a year ago, retail sales rose 2.1% after adjusting for inflation and increased 3.1% in nominal terms.
The statistical office resumed reporting retail sales after suspending in June due to technology issues encountered during a conversion process while meeting new EU data requirements.
Retail sales rebounded after falling monthly 1.4% in May and 1.1% in June.
Norway's CPI Accelerated in September
Norway's consumer price inflation increased 3% in September from 2.6% in August and rebounded to the highest pace since May, Statistics Norway reported Thursday.
Consumer price inflation, adjusted for tax charges and energy prices, increased at a slower pace of 3.1% in September from 3.2% in August, dropping to the lowest level since August 2022.
Sweden's GDP Expanded at the Fastest Pace in 13 months
Sweden's GDP growth in August rebounded to 1.1% from the downwardly revised 0.9% decline in August, Statistics Sweden reported Thursday.
The monthly rate of increase in August was the strongest in 13 months, and faster household consumption and an increase in service sector activities were the key drivers.
Europe Indexes and Yields
The DAX index increased by 0.01% to 19,255.54; the CAC-40 index fell by 0.2% to 7,545.81; and the FTSE 100 index declined by 0.3% to 8,219.22.
The yield on 10-year German bonds edged higher to 2.27%, French bonds inched higher to 3.04%, the UK gilts edged up to 4.24%, and Italian bonds increased to 3.57%.
The euro edged lower to $1.09; the British pound inched higher to $1.31; and the U.S. dollar strengthened to 85.85 Swiss cents.
Brent crude decreased $1.02 to $77.58 a barrel, and the Dutch TTF natural gas rose by €0.87 to €39.35 per MWh.
Europe Stock Movers
GSK plc increased 4.5% to 1,525.0 pence after the British drug maker agreed to settle 80,000 lawsuits in state courts in the U.S. related to Zantac.
SCOR SE increased 3.2% to €20.60, and the French reinsurance company initiated a discussion to sell its stake in the ninth largest educational publishing company.
SCOR entered into exclusive negotiations with Huyghens de Participations, the holding company of the Albin Michel group, for the sale of its stake in the capital of Humensis.
Deutsche Telekom increased 1.5% to €27.16 after the German telephone company said it plans a stock buyback program in 2025.
BMW decreased 0.2% to €76.60 after the German luxury automobile company reported sales in the third quarter declined, weighed down by the weakness in China.
Unit sales across all models declined 13% from a year ago in the quarter, driven by a 30% plunge in China.
Sales across battery-operated and hybrid vehicles stalled at 0.1% after rising at 40% in the corresponding period in 2023.
Suedzucker AG declined 0.5% to €11.12 after the German company reported a decline in operating results in the second quarter amid high costs and low prices.
- Akira Ito
- 10 Oct, 2024
- Tokyo
Tech stocks powered the market rebound in Tokyo in Thursday's trading, tracking gains in overnight trading in New York.
The Nikkei 225 stock average gained 0.3%, and the broader Topix index advanced 0.2%.
The yen continued its downward journey to 149.16 against the U.S. dollar and fell to a six-week low as investors lowered their expectations of another rate increase in the near future.
Producer price inflation in Japan accelerated to 2.8% in September from 2.6% in August, the Bank of Japan reported Thursday.
The measure of wholesale price inflation was positive for the 43rd month in a row, due mainly to higher prices of basic items, including food staples and rice.
Rising costs of transportation and fertilizers contributed to inflationary pressures.
Stock market indexes in Tokyo have been volatile amid rate path uncertainties, elevated geopolitical tensions in the Middle East, and worries about the economic slowdown in China and the U.S.
The People's Bank of China launched a new lending program worth 500 billion yuan, or $70 billion, that will provide liquidity to qualified brokerage houses, insurance companies, and asset management companies to purchase stocks.
Investors are hoping that the press conference scheduled by China's finance minister on Saturday may provide clarity on potential broad fiscal reforms.
Investors are also gearing up for the start of the earnings season starting Friday, and retail stocks were in focus ahead of the release of their quarterly results.
Japan Stock Movers
The Nikkei 225 Stock Average increased 0.3% to 39,380.89, and the broader Topix index added 0.2% to 2,712.67.
Mitsubishi UFJ Financial increased 1.6% to ¥1,525.50, Sumitomo Mitsui Financial advanced 1.3% to ¥3,121.0, and Mizuho Financial gained 0.6% to ¥3,018.0.
Seven & I decreased 0.4% to ¥2,325.0, Fast Retailing Company increased 1.3% to ¥51,360.0, and Isetan Mitsukoshi rose 0.9% to ¥2,355.0.
Toyota Motor advanced 0.7% to ¥2,581.0, Honda Motor increased 1.4% to ¥1,574.0, and Nissan Motor edged higher 1% to ¥399.80.
Marubeni Corp. added 1% to ¥2,438.50, Itochu Corp gained 0.7% to ¥7,769.0, and Mitsui & Company added 0.7% to ¥3,256.0.