- Li Chen
- 10 Oct, 2024
- Hong Kong
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.
- Arun Goswami
- 10 Oct, 2024
- Mumbai
Stocks in Mumbai extended their weekly gain, and investors awaited the start of the earnings season with the latest quarterly results from leading tech services providers.
The Sensex index increased by 0.5% to 81,889.24, and the Nifty index rose by 0.5% to 25,096.80.
On the Mumbai stock exchange, 77 stocks traded at their 52-week highs, and 10 stocks traded at their 52-week lows.
Adani Enterprises decreased 2.6% to ₹3,073.40, and the company launched an institutional offering priced at ₹3,117 per share to raise as much as ₹16,600 crore.
The company plans to use the proceeds to finance multiple projects, including several airport expansions.
Vedanta rose 0.3% to ₹497.25, and the company has pre-paid $869 million to bond holders for notes maturing in 2027 as a part of its plan to save future interest costs.
JSW Infrastructure decreased 0.1% to ₹319.90, and the company received a preliminary interest from the Maharashtra Maritime Board to develop a multi-purpose port in Palghar district at a cost of about 4,260 crore.
ICICI Securities declined 3.3% to ₹839.55, and the National Company Law Tribunal approved the company's merger plan with its parent company, ICICI Bank.
Shareholders of the securities company receive 67 shares of ICICI Bank for every 100 shares held.
Tata Group stocks were in focus after former chairman of Tata Sons, Ratan Tata, passed away at the age of 86.
Tata Consultancy Services increased 0.7% to ₹4,283.50, Tata Chemicals increased 5.3% to ₹1,163.30, and Tata Motors advanced 0.2% to ₹940.70.
HDFC Life Insurance Company decreased 0.03% to ₹717.05, and the company said plans to raise ₹1,000 crore through the sale of unsecured non-convertible bond offerings.
IDFC Ltd declined 1.% to ₹108.78 and IDFC First Bank increased 1.2% after the bank agreed to merge with IDFC.
UBS Group, the Swiss financial services company, agreed to acquire a 0.5% stake for ₹88 crore in IDFC on the heels of the merger announcement.
- Alexander Garcia
- 09 Oct, 2024
- Miami
Stocks on Wall Street overcame morning doldrums to advance on Wednesday as investors reviewed the Fed's policy meeting minutes and awaited inflation updates later in the week.
The S&P 500 index inched higher 0.5% and traded at a new intraday record, and the Nasdaq Composite edged up 0.4%. Investors remained positive ahead of the start of the earnings season, and leading banks are expected to report better-than-expected earnings.
Market sentiment has been on the rebound over the last three weeks after string positive economic data confirmed the resilience of the U.S. economy and supporting labor market conditions.
However, investors dialed down aggressive rate-cut expectations after the U.S. economy added jobs in September at the fastest pace in six months.
The latest FOMC meeting minutes showed members felt confident that inflation is on the sustained downward path towards the Fed's target rate of 2%.
While economic activities continued to expand at a solid pace, job gains have moderated, and the jobless rate had edged up but remained low.
The committee members wanted to make sure that the aggressive rate is viewed as a balancing act to keep the labor market from weakening further and not as a signal that the economy is deteriorating faster than previously estimated.
Market participants are growing confident in the Fed's ability to engineer a so-called soft landing, meaning cooling inflation without dipping the economy into a recession.
Investors are hoping that the consumer price inflation report on Thursday and the producer price inflation report on Friday will confirm the downward trajectory of inflation in September.
Hurricane Milton was also in focus as the big and powerful storm barrels towards the West Coast of Florida, and the National Hurricane Center is anticipating the storm to make landfall sometime late tonight on Wednesday or early Thursday.
Devastating winds of speed as high as 150 mph with rainfall of more than 15 inches are expected to hit most of the coastal cities and towns from Cedar Key down to Naples.
Catastrophe insurance companies are bracing for a surge in claims after the second hurricane hits the Florida shores in as many weeks, as tropical storms turn to hurricanes on warm waters of the Gulf of Mexico and Atlantic Ocean, causing widespread wind and water damage.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.5% to 5,783.48, the Nasdaq Composite rose 0.4% to 18,264.42, and the Russell 2000 index fell 0.5% to 2,205.21.
The yield on 2-year Treasury notes edged higher to 4.0%, 10-year Treasury notes inched up to 4.05%, and 30-year Treasury bonds inched higher to 4.33%.
WTI crude oil decreased $0.57 to $73.08 a barrel, and natural gas prices edged down 8 cents to $2.64 a thermal unit.
Gold fell by $13.44 to $2,608.50 an ounce, and silver decreased by $0.20 to $30.45.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 102.74.
U.S. Stock Movers
Boeing Company declined 3% to $150.09, and the company withdrew its wage offer to machinists after talks broke down.
S&P Global placed Boeing's debt rating on a negative credit watch list and said the 33,000 machinists union strike will cost more than $1 billion per month.
Alphabet Class A declined 1.3% to $162.17 after the Justice Department requested a U.S. judge to order severe restrictions on the company's "unlawful monopoly in search" or break up its operations.
Generac increased 1.6% to $173.85, a two-year high, after Hurricane Milton intensified and widened to cover a larger area in Florida.
The deadly and most severe storm of the year is expected to knock out powerlines in several counties across Florida, potentially impacting several million people.
European Markets Wavered After China Stimulus Rally Faded
European markets struggled to stay above the flatline as the China stimulus rally faded and investors shifted their attention to the rate path and the region's economic growth prospects.
Benchmark indexes in Paris, London, Milan, and Frankfurt edged higher as investors debated rate paths ahead of the ECB policy meeting next week.
Investor sentiment has wavered in recent weeks amid elevated tensions in the Middle East, resurgent crude oil prices, and rate path uncertainty in the U.S. and Europe.
However, the latest set of U.S. economic data has increased confidence in the Federal Reserve's plan to engineer a so-called soft landing—cooling inflation without dipping the economy into a recession.
In the currency union, inflation has fallen to the target rate set by the European Central Bank, but that has largely been achieved because of the weakening in crude oil prices over the last year.
The Euro Area continues to struggle with near-zero economic growth amid high costs of living and record low unemployment.
Germany's Trade Surplus Widened In August
Germany's goods exports rose unexpectedly in August, helping the country to widen its international goods surplus from the previous month and from a year ago.
Total international goods exports increased 1.3% from the previous month to Є131.9 billion, and imports decreased 3.4% to Є109.4 billion, according to the Federal Statistical Office, or Destatis.
The goods trade surplus widened to 22.5 billion from Є16.9 billion in July and Є18.9 billion in August 2023.
Shipments to three leading destinations rose in August, surpassing the expectations set by the market.
Seasonally adjusted exports to the U.S. increased 5.5% to Є13.5 billion, to the People's Republic of China rose 1.9% to Є7.4 billion, and to the U.K. advanced 5.7% to Є6.8 billion.
Imports from China declined 1.4% to 13.2 billion, from the U.S. rose 0.7% to Є7.8 billion, and from the U.K. eased by 0.1% to Є2.9 billion.
Europe Indexes and Yields
The DAX index increased by 1.0% to 19,254.93; the CAC-40 index rose by 0.5% to 7,560.59; and the FTSE 100 index advanced by 0.7% to 8,243.74.
The yield on 10-year German bonds edged lower to 2.23%, French bonds inched lower to 3.01%, the UK gilts edged down to 4.17%, and Italian bonds increased to 3.54%.
The euro edged lower to $1.09; the British pound inched lower to $1.30; and the U.S. dollar weakened to 85.71 Swiss cents.
Brent crude decreased $1.02 to $76.13 a barrel, and the Dutch TTF natural gas rose by €0.08 to €38.64 per MWh.
Europe Stock Movers
Mondi plc increased 4.6% to 1,468.0 pence, and the packaging company agreed to acquire Schumacher Packaging's businesses in Western Europe for €684 million.
CMC Markets plc increased 4.1% to 317.50 pence after the online financial trading company said its first-half results swung to a profit compared to a loss in the previous year driven by a higher operating income.
Rio Tinto plc declined 0.4% to 5,018.0 pence after the mining company agreed to acquire Arcadium Lithium for $6.7 billion.
Continental AG increased 6.7% to €59.58 after the automotive parts maker estimated third quarter profit to improve despite the expected decline in sales.
The company said its tire business is likely to face some headwinds in the fourth quarter, with a modest increase in volume, stable prices, and higher raw material costs.
Rate and Yen Speculation Continues to Dictate Stock Market Moves In Tokyo
Stocks in Tokyo advanced following the gains in broader market indexes in overnight trading on Wall Street.
The Nikkei 225 stock average gained nearly 1%, but the broader Topix index lagged with a rise of 0.3% as the tech rally in Tokyo failed to spread to other sectors.
Market optimism was also supported by the further weakness in the yen, and the Japanese currency eased to 148.48 against the U.S. dollar.
The Japanese officials attempted to limit the rapid decline in the currency by reminding investors that the central bank is ready to step in to arrest the swift decline in the currency.
Despite the jawboning by Japanese officials, investors are anticipating the yen to fall as low as 158 against the dollar, which could provide an additional boost to the stock market.
Japan Stock Movers
The Nikkei 225 Stock Average increased 0.9% to 39,277.96, and the roader Topix index gained 0.3% to 2,707.24.
Tech stocks traded higher for the second day this week following the surge in New York.
Tokyo Electron increased 1.2% to ¥25,770.0, Advantest gained 3.7% to ¥7,639.0, and Lasertec added 4.4% to ¥24,670.0.
Retailers were in focus again after the recent weakness in the yen raised hopes of a boost in store sales.
Seven & I Holdings increased 4.5% to ¥2,335.0, Fast Retailing added 1.1% to ¥50,710.0, and Isetan Mitsukoshi declined 0.4% to ¥2,334.50.
Seven & I Holding jumped after a Bloomberg News report suggested that Canada-based Couche-Tard revised its takeover offer to $47 billion from the $38 billion original offer.
Seven & I operates a chain of 85,000 convenience store chains in 20 countries.
China Stocks Hit Wall of Earnings Growth Realities
Stock market indexes in mainland China and Hong Kong traded down as investors reassessed the scale of the three-week rally.
The Hang Seng index bounced around between gains and losses, and the CSI 300 index dropped as much as 4% after investors headed for exit.
Chinese investors fell into a familiar pattern of raised hopes by authorities, only to be followed by severe despair for the third time this year.
Investors shifted their attention to an upcoming release of September economic data on October 18 and held out for more clear and specific measures that could revive consumption.
China's economy has struggled to meet the government's annual growth target rate of 5%, but the world's second-largest economy is still the fastest-growing in the top five economies of the world.
About three weeks ago, the People's Bank of China announced a raft of monetary policy measures that jolted the market sentiment.
The market rally reached a feverish pitch after Politburo, in an unexpected meeting at the end of September, issued a strongly worded note to local governments to "do whatever it takes" to meet growth targets.
There is a growing realization among investors, after two weeks of reflection, that the recent market run-up may have gone too far.
And little has changed in the real economy in the near future, which could provide a boost to corporate earnings over the next two quarters.
The central authorities' previous two attempts to jawbone the market rally have produced few results for investors and failed to revive consumer confidence, the critical ingredient needed for the sustained market rally.
China Stock Movers
The Hang Seng index increased 0.8% to 21,096.32, and the mainland-focused CSI 300 index dropped 3.3% to 4,125.26.
Bank of China declined 3% in Shanghai trading but edged up 0.3% in Hong Kong. China Construction Bank was nearly unchanged in Hong Kong but declined 1.5% in Shanghai.
Property developers soared as much as 120% in the ten-session rally before turning lower in Tuesday's trading.
China Vanke declined 4% to HK $7.20, China Resources Land fell 1% to HK $25.70, and Longfor Group dropped 1% to HK $12.82.
Alibaba Group increased 0.3% to HK $104.70, Tencent Holdings added 0.7% to HK $440.0, and JD.com edged up 1.7% to HK $165.70.
- Scott Peters
- 09 Oct, 2024
- New York City
Boeing Company declined 3% to $150.09, and the company withdrew its wage offer to machinists after talks broke down.
S&P Global placed Boeing's debt rating on a negative credit watch list and said the 33,000 machinists union strike will cost more than $1 billion per month.
Alphabet Class A declined 1.3% to $162.17 after the Justice Department requested a U.S. judge to order severe restrictions on the company's "unlawful monopoly in search" or break up its operations.
Generac increased 1.6% to $173.85, a two-year high, after Hurricane Milton intensified and widened to cover a larger area in Florida.
The deadly and most severe storm of the year is expected to knock out powerlines in several counties across Florida, potentially impacting several million people.
- Barry Adams
- 09 Oct, 2024
- New York City
Stocks on Wall Street meandered in early trading on Wednesday as investors awaited the Fed's policy meeting minutes later today and inflation updates later in the week.
The S&P 500 index and the Nasdaq Composite traded around the flatline, and investors remained positive ahead of the start of the earnings season.
Market sentiment has been on the rebound over the last three weeks after string positive economic data confirmed the resilience of the U.S. economy and labor market conditions.
However, the investors dialed down aggressive rate-cut expectations after the U.S. economy added jobs at the fastest pace in six months.
Market participants are growing confident in the Fed's ability to engineer soft landings, meaning cooling inflation without dipping the economy into a recession.
Investors are hoping that the consumer price inflation report on Thursday and the producer price inflation report on Friday will confirm the downward trajectory of inflation in September.
Hurricane Milton was also in focus as the potent storm barrels towards the West Coast of Florida, and the National Hurricane Center is anticipating the storm to make landfall sometime late tonight on Wednesday.
Devastating winds of speed as high as 150 mph with rainfall of more than 12 inches are expected to hit most of the coastal cities and towns from Cedar Key down to Naples.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.1% to 5,754.85, the Nasdaq Composite fell 0.1% to 18,166.71, and the Russell 2000 index fell 0.1% to 2,194.98.
The yield on 2-year Treasury notes edged higher to 4.0%, 10-year Treasury notes inched up to 4.05%, and 30-year Treasury bonds inched higher to 4.33%.
WTI crude oil decreased $1.45 to $72.11 a barrel, and natural gas prices edged down 5 cents to $2.67 a thermal unit.
Gold fell by $10.81 to $2,611.10 an ounce, and silver decreased by $0.21 to $30.45.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 102.74.
U.S. Stock Movers
Boeing Company declined 3% to $150.09, and the company withdrew its wage offer to machinists after talks broke down.
S&P Global placed Boeing's debt rating on a negative credit watch list and said the 33,000 machinists union strike will cost more than $1 billion per month.
Alphabet Class A declined 1.3% to $162.17 after the Justice Department requested a U.S. judge to order severe restrictions on the company's "unlawful monopoly in search" or break up its operations.
Generac increased 1.6% to $173.85, a two-year high, after Hurricane Milton intensified and widened to cover a larger area in Florida.
The deadly and most severe storm of the year is expected to knock out powerlines in several counties across Florida, potentially impacting several million people.
- Inga Muller
- 09 Oct, 2024
- Frankfurt
European markets struggled to advance for the second day in a row, and investors shifted their attentions to the rate path after the China stimulus rally faded.
The DAX index increased by 0.2% to 19,101.19; the CAC-40 index rose by 0.2% to 7,537.79; and the FTSE 100 index advanced by 0.3% to 8,215.53.
The yield on 10-year German bonds edged lower to 2.23%, French bonds inched lower to 3.01%, the UK gilts edged down to 4.17%, and Italian bonds increased to 3.54%.
Mondi plc increased 4.6% to 1,468.0 pence, and the packaging company agreed to acquire Schumacher Packaging's businesses in Western Europe for €684 million.
CMC Markets plc increased 4.1% to 317.50 pence after the online financial trading company said its first-half results swung to a profit compared to a loss in the previous year driven by a higher operating income.
Rio Tinto plc declined 0.4% to 5,018.0 pence after the mining company agreed to acquire Arcadium Lithium for $6.7 billion.
Rio Tinto offered $5.85 cash per share, representing a premium of 90% to the closing price of $3.08 on October 4, a premium of 39% to Arcadium’s volume-weighted average price.
On a fully diluted share basis, including outstanding convertible senior notes, the transaction is valued at approximately $6.7 billion.
Continental AG increased 6.7% to €59.58 after the automotive parts maker estimated third quarter profit to improve despite the expected decline in sales.
The company said its tire business is likely to face some headwinds in the fourth quarter, with a modest increase in volume, stable prices, and higher raw material costs.
- Bridgette Randall
- 09 Oct, 2024
- London
European markets struggled to stay above the flatline as the China stimulus rally faded and investors shifted their attention to the rate path and the region's economic growth prospects.
Benchmark indexes in Paris, London, Milan, and Frankfurt edged higher as investors debated rate paths ahead of the ECB policy meeting next week.
Investor sentiment has wavered in recent weeks amid elevated tensions in the Middle East, resurgent crude oil prices, and rate path uncertainty in the U.S. and Europe.
However, the latest set of U.S. economic data has increased confidence in the Federal Reserve's plan to engineer a so-called soft landing—cooling inflation without dipping the economy into a recession.
In the currency union, inflation has fallen to the target rate set by the European Central Bank, but that has largely been achieved because of the weakening in crude oil prices over the last year.
The Euro Area continues to struggle with near-zero economic growth amid high costs of living and record low unemployment.
Germany's Trade Surplus Widened In August
Germany's goods exports rose unexpectedly in August, helping the country to widen its international goods surplus from the previous month and from a year ago.
Total international goods exports increased 1.3% from the previous month to Є131.9 billion, and imports decreased 3.4% to Є109.4 billion, according to the Federal Statistical Office, or Destatis.
The goods trade surplus widened to Є22.5 billion from Є16.9 billion in July and Є18.9 billion in August 2023.
Shipments to three leading destinations rose in August, surpassing the expectations set by the market.
Seasonally adjusted exports to the U.S. increased 5.5% to Є13.5 billion, to the People's Republic of China rose 1.9% to Є7.4 billion, and to the U.K. advanced 5.7% to Є6.8 billion.
Imports from China declined 1.4% to Є13.2 billion, from the U.S. rose 0.7% to Є7.8 billion, and from the U.K. eased by 0.1% to Є2.9 billion.
Europe Indexes and Yields
The DAX index increased by 0.2% to 19,101.19; the CAC-40 index rose by 0.2% to 7,537.79; and the FTSE 100 index advanced by 0.3% to 8,215.53.
The yield on 10-year German bonds edged lower to 2.23%, French bonds inched lower to 3.01%, the UK gilts edged down to 4.17%, and Italian bonds increased to 3.54%.
The euro edged lower to $1.09; the British pound inched lower to $1.30; and the U.S. dollar weakened to 85.71 Swiss cents.
Brent crude decreased $0.32 to $76.85 a barrel, and the Dutch TTF natural gas fell by €0.04 to €38.52 per MWh.
Europe Stock Movers
Mondi plc increased 4.6% to 1,468.0 pence, and the packaging company agreed to acquire Schumacher Packaging's businesses in Western Europe for €684 million.
CMC Markets plc increased 4.1% to 317.50 pence after the online financial trading company said its first-half results swung to a profit compared to a loss in the previous year driven by a higher operating income.
Rio Tinto plc declined 0.4% to 5,018.0 pence after the mining company agreed to acquire Arcadium Lithium for $6.7 billion.
Continental AG increased 6.7% to €59.58 after the automotive parts maker estimated third quarter profit to improve despite the expected decline in sales.
The company said its tire business is likely to face some headwinds in the fourth quarter, with a modest increase in volume, stable prices, and higher raw material costs.
- Akira Ito
- 09 Oct, 2024
- Tokyo
Stocks in Tokyo advanced following the gains in broader market indexes in overnight trading on Wall Street.
The Nikkei 225 stock average gained nearly 1%, but the broader Topix index lagged with a rise of 0.3% as the tech rally in Tokyo failed to spread to other sectors.
Market optimism was also supported by the further weakness in the yen, and the Japanese currency eased to 148.48 against the U.S. dollar.
The Japanese officials attempted to limit the rapid decline in the currency by reminding investors that the central bank is ready to step in to arrest the swift decline in the currency.
Despite the jawboning by Japanese officials, investors are anticipating the yen to fall as low as 158 against the dollar, which could provide an additional boost to the stock market.
Japan Stock Movers
The Nikkei 225 Stock Average increased 0.9% to 39,277.96, and the roader Topix index gained 0.3% to 2,707.24.
Tech stocks traded higher for the second day this week following the surge in New York.
Tokyo Electron increased 1.2% to ¥25,770.0, Advantest gained 3.7% to ¥7,639.0, and Lasertec added 4.4% to ¥24,670.0.
Retailers were in focus again after the recent weakness in the yen raised hopes of a boost in store sales.
Seven & I Holdings increased 4.5% to ¥2,335.0, Fast Retailing added 1.1% to ¥50,710.0, and Isetan Mitsukoshi declined 0.4% to ¥2,334.50.
Seven & I Holding jumped after a Bloomberg News report suggested that Canada-based Couche-Tard revised its takeover offer to $47 billion from the $38 billion original offer.
Seven & I operates a chain of 85,000 convenience store chains in 20 countries.
- Li Chen
- 09 Oct, 2024
- Hong Kong
Stock market indexes in mainland China and Hong Kong traded down as investors reassessed the scale of the three-week rally.
The Hang Seng index bounced around between gains and losses, and the CSI 300 index dropped as much as 4% after investors headed for exit.
Chinese investors fell into a familiar pattern of raised hopes by authorities, only to be followed by severe despair for the third time this year.
Investors shifted their attention to an upcoming release of September economic data on October 18 and held out for more clear and specific measures that could revive consumption.
China's economy has struggled to meet the government's annual growth target rate of 5%, but the world's second-largest economy is still the fastest-growing in the top five economies of the world.
About three weeks ago, the People's Bank of China announced a raft of monetary policy measures that jolted the market sentiment.
The market rally reached a feverish pitch after Politburo, in an unexpected meeting at the end of September, issued a strongly worded note to local governments to "do whatever it takes" to meet growth targets.
There is a growing realization among investors, after two weeks of reflection, that the recent market run-up may have gone too far.
And little has changed in the real economy in the near future, which could provide a boost to corporate earnings over the next two quarters.
The central authorities' previous two attempts to jawbone the market rally have produced few results for investors and failed to revive consumer confidence, the critical ingredient needed for the sustained market rally.
China Stock Movers
The Hang Seng index increased 0.8% to 21,096.32, and the mainland-focused CSI 300 index dropped 3.3% to 4,125.26.
Bank of China declined 3% in Shanghai trading but edged up 0.3% in Hong Kong. China Construction Bank was nearly unchanged in Hong Kong but declined 1.5% in Shanghai.
Property developers soared as much as 120% in the ten-session rally before turning lower in Tuesday's trading.
China Vanke declined 4% to HK $7.20, China Resources Land fell 1% to HK $25.70, and Longfor Group dropped 1% to HK $12.82.
Alibaba Group increased 0.3% to HK $104.70, Tencent Holdings added 0.7% to HK $440.0, and JD.com edged up 1.7% to HK $165.70.
- Arun Goswami
- 09 Oct, 2024
- Mumbai
The Reserve Bank of India held its key lending rate and trimmed its GDP growth estimate for the September quarter but retained its annual growth outlook for the financial year 2025.
The Sensex index increased by 0.5% to 82,004.61, and the Nifty index rose by 0.5% to 25,135.75.
On the Mumbai stock exchange, 133 stocks traded at their 52-week highs, and 23 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds inched higher to 6.83%, and the Indian rupee eased to 83.93 against the U.S. dollar.
IRB Infrastructure Developers increased 2% to ₹60.11, and the road operator said toll revenue increased 19% from a year ago in September.
JM Financial increased 4.1% to ₹143.10 after the competition commission approved the company's purchase of a 43% stake in JM Financial Credit Solutions for ₹1,282 crore.
Embassy Office Parks REIT decreased 0.5% to ₹392.86, and the company raised 2,000 crore ahead of its maturing non-convertible debentures.
The latest date has a coupon rate of 7.95%.
Patanjali Foods increased 0.2% to ₹1,693.0, and the competition commission approved the company's purchase of home and personal care businesses controlled by Patanjali Ayurved for ₹1,100 crore.
Tata Motors increased 2.1% to ₹939.75, and the vehicle maker said total wholesale sales in the September quarter declined 11% from a year ago to 304,189 units.
Jaguar and Land Rover, luxury division, wholesale sales dropped 10% from a year ago.
- Alexander Garcia
- 08 Oct, 2024
- Miami
Wall Street investors shifted their focus to the U.S. economy and debated future rate path as crude oil prices eased.
The S&P 500 index edged up 0.9% and the Nasdaq Composite advanced 1.3% as investors awaited earnings from leading banks this week.
Bond yields hovered above 4% for the second day in a row and stayed at a five-week high amid worries of a rebound in inflation following the 11% jump in crude oil prices over the last two weeks.
However, crude oil prices fell as much as 4% in New York and London trading as the supply disruption stemming from the rising Middle East tensions have not materialized so far.
Stocks have been volatile, and crude oil prices have been on the rise on the worries that Israel could strike Iran's oil infrastructure after country's missile attacks.
For now, the U.S. has managed to stave off a retaliatory strike, but investors are fearful that Israel's strike could lead to a wider war that could make shipping riskier through the Strait of Hormuz.
On the economic front, the international trade deficit declined 10% to a five-month low of $70.4 billion in August from an upwardly revised $78.9 billion in July, the Commerce Department reported Tuesday.
Exports increased 2% from the previous month to a record high of $271.8 billion, and imports eased 0.9% to $342.2 billion.
Trade deficit with China shrank to $27.9 billion from $31.1 billion, and with Canada, it eased to $3.1 billion from $8.1 billion.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.9% to 5,745.51, the Nasdaq Composite rose 1.3% to 18,148.82, and the Russell 2000 index rose 0.2% to 2,196.45.
The yield on 2-year Treasury notes edged higher to 4.01%, 10-year Treasury notes inched up to 4.05%, and 30-year Treasury bonds inched higher to 4.33%.
WTI crude oil decreased $3.40 to $73.73 a barrel, and natural gas prices edged down 2 cents to $2.73 a thermal unit.
Gold fell by $27.53 to $2,615.65 an ounce, and silver decreased by $1.15 to $30.43.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 102.55.
U.S. Stock Movers
PepsiCo increased 1.1% to $169.11, and the food and beverage company lowered its annual earnings outlook.
Bank of America increased 0.1% to $40.01, and the company is scheduled to release earnings next week.
Berkshire Hathaway sold additional 9.6 million shares of the bank over the last three trading sessions and lowered its stake to 10.1%, according to a regulatory filing with the Securities and Exchange Commission.
China-linked stocks were in focus after Chinese authorities failed to announce new stimulus measures.
Alibaba Group decreased 6% to $110.28, Las Vegas Sands dropped 2.9% to $51.78, and Wynn Resorts declined 2.9% to $103.41.
DocuSign jumped 8.3% to $67.95 after the company was selected to replace MDU Resources in the S&P MidCap 400 Index.
MDU Resources advanced 3.8% to $28.50.
European Markets Closed Down After China Disappointments
European market sentiment was weak after China's latest fiscal measure announcements fell short of market expectations.
Benchmark indexes in London, Paris, Frankfurt, and Milan hovered near two-week lows after the weakness in luxury goods and resource companies dragged down markets.
On Tuesday, China's National Reform and Development Commission announced several key steps to implement previously announced monetary and fiscal measures.
However, the top planning body failed to provide any new key measures that could support higher consumption and alter the downward trajectory in employment and economic growth.
The widely attended press conference underwhelmed investors, and benchmark indexes in Hong Kong plunged as much as 11%.
Closer to home, on the economic front, investors overlooked the latest update on German industrial output and the French trade deficit.
German Industrial Output Confirmed Volatile Trend In Automobile Industry
German industrial output rebounded 2.9% from the previous month in August, reversing a decline of revised 2.9% in July, according to the Federal Statistical Office, or Destatis.
The statistical office adjusts industrial data for seasonal and calendar factors and also for inflation.
On an annual basis, industrial production fell at a slower pace of 2.7% compared to a fall of 5.6% in July.
Industrial production data have been volatile over the last twelve months because of the sharp swings in automobile production.
Production of motor vehicles, trailers, and semitrailers soared 19.3% after shrinking 8.2% in the previous month.
In addition, construction activities increased 0.3%, and energy production advanced 2.3%.
Industrial production, excluding energy and construction, increased by 3.4% in August compared to July.
Production of capital goods rose by 6.9%, intermediate goods by 0.1%, and consumer goods remained unchanged.
Outside industry, energy production increased by 2.3% in August, and construction production increased by 0.3% compared to the previous month.
France's Goods Deficit Widened In August
France's international goods trade deficit widened in August after exports rose at a softer pace than imports.
Goods exports increased 0.4% from the previous month to €49.7 billion, and imports rose 2.7% to €57 billion, widening the trade deficit to €7.4 billion from the revised €6 billion in July, according to the latest data available from the ministry of economy and finance.
Deficit in energy trade expanded to €4.5 billion from €4.0 billion in the previous month, in manufactured goods increased to €4.4 billion from €3.5 billion, and agriculture products edged up to €0.3 billion from €0.1 billion.
Europe Indexes and Yields
The DAX index decreased by 0.2% to 19,066.47; the CAC-40 index fell by 0.7% to 7,521.32; and the FTSE 100 index declined by 1.4% to 8,190.61.
The yield on 10-year German bonds edged higher to 2.25%, French bonds inched higher to 3.03%, the UK gilts edged up to 4.20%, and Italian bonds increased to 3.58%.
The euro edged lower to $1.09; the British pound inched lower to $1.30; and the U.S. dollar weakened to 85.61 Swiss cents.
Brent crude decreased $3.50 to $77.36 a barrel, and the Dutch TTF natural gas fell by €2.36 to €38.59 per MWh.
Europe Stock Movers
China-linked luxury brands declined in Paris and Milan, automakers fell in Frankfurt, and resource companies eased in London.
LVMH dropped 3.4% to €656.40, Hermes International declined 1% to €2,139.0, and Prada SpA decreased 1.4% to €6.50.
Mercedes-Benz Group declined 1.5% to €56.79, BMW fell 2% to €76.26, and Volkswagen Group edged lower 1.3% to €92.60.
French spirit and wine makers dropped after China imposed a temporary retaliatory tariff on brandy imports from the European Union.
Remy Cointreau SA dropped 7.6% to €60.75, and Pernod Ricard declined 3.8% to €126.50.
Antofagasta decreased 4.2% to 1,907.50 pence, Glencore declined 3.2% to 423.35 pence, and Anglo American fell 5.3% to 2,314.0 pence.
Japan Indexes Halt 3-Day Rally
Stock market indexes in Tokyo closed down and halted a three-day rally following a rebound in Treasury yields in overnight trading.
The Nikkei 225 stock average decreased 1%, the Topix index dropped 1.5%, and the yen rebounded 0.4% to 147.57 against the U.S. dollar amid ongoing uncertainty related to the Bank of Japan's monetary policy.
Investors in Japan were also on the backfoot after the National Reform and Development Commission in China failed to announce any new meaningful and specific measures to revive consumption at a widely publicized press conference held Tuesday.
The Hang Seng Index plunged as much as 8% in early trading following yet another policy disappointment in five months, after policymakers touted the possibilities of strong fiscal measures.
Real Household Spending and Wages Eased In August
Closer to home, on the economic front. Japan's nominal wages rose in August, but real wages fell for the first time in three months as wage growth lagged the acceleration in price increases.
Household spending is a key indicator for private consumption, as it accounts for more than half of Japan's economy.
The average total wage income, including overtime, or nominal wage, increased 3% to 295,000 yen, or about $2,000, according to the Ministry of Health, Labor, and Welfare.
Nominal wages increased for the 32nd consecutive month, and average for full-time workers increased 2.7% to 377,861 yen and for part-time workers rose 3.9% to 110,033 yen.
Average monthly income of salaried households of two or more people increased 2% in real terms to 574,334 yen, and spending decreased 1.9% to 297,487 yen.
Japan's households are struggling with high costs of living amid rising costs of fuel and food and stagnant wages for more than two decades.
But in March of this year, large employers agreed to increase wages that exceeded inflation for the time in several years, but those wage gains were not matched by small- and medium-sized companies mostly operating in the domestic economy.
Current Account Surplus Jumps to Record High
In other economic news, Japan's current account balance was in surplus for the 19th consecutive month in August, the Ministry of Finance reported Tuesday.
The current account surplus rose to a record high of 3.803 trillion yen from 2.293 trillion yen, after the deficit in the international goods account shrank to 378 billion from 755 billion yen and the international service account narrowed to 105 billion from 302 billion yen.
Japan Stock Movers
The Nikkei 225 Stock Average declined 1% to 38,937.54, and the broader Topix index decreased 1.5% to 2,699.15.
Investors looked forward to the start of the earnings season later in the week, and retailers were in focus.
Seven & I edged up 0.3% to ¥2,230.0, AEON Co Ltd. decreased 1.1% to ¥3,894.0, and Fast Retailing fell 0.5% to ¥50,140.0.
Tokyo Electron fell 0.7% to ¥25,460.0, Advantest rose 2.5% to ¥7,370.0, and Lasertec Corporation fell 2.2% to ¥23,625.0.
Nippon Yusen declined 1.3% to ¥4,898.0, Kawasaki Kisen Kaisha dropped 1.5% to ¥2,021.0, and Mitsui O.S.K. Lines fell 1.9% to ¥2,021.0.
China Stocks Plunge In Hong Kong Amid Dashed Hopes of Additional Stimulus
Stock market indexes in mainland China soared after investors returned from a week of holidays, but market enthusiasm quickly faded.
Trading in Shanghai and Shenzhen was in focus as investors scrambled to catch up with market gains during the Golden Week of holidays, as retail investors returned.
However, the record one-day surge of 10.8% quickly dissipated to an increase of 6% after the top planning body failed to announce any new significant fiscal measures.
The National Reform and Development Commission announced at a press conference implementation plans following the recently announced monetary policy measures to revive investor confidence and support the residential property market.
However, the commission failed to announce any new and concrete steps to restore consumer confidence, tackle elevated unemployment, and revive manufacturing activities.
Market attention now shifted to the finance ministry, as investors hope for additional stimulus measures that could revive retail sales and create more jobs for recent graduates.
Retail investors in China have lost hope of a market rebound after benchmark indexes plunged as much as 40% over the last four years but are prone to be drawn to periodic short-lived market rallies that are driven by policy announcements.
Policymakers, at least on three occasions over the last two years, have drummed up investor interest by dangling piecemeal measures, and these measures have failed to alter the downward trajectory in consumption, employment, and economic growth.
The latest market euphoria may have hit the reality wall for the third time this year as investors reassessed policymakers limitations in arresting the current deepening economic growth downturn.
"Investors have lost touch with the sense of reality with the hopes of a stimulus for an economy that is still growing at a 5% annual rate, surpassing the U.S. and the Euro Area by a wide margin," said Manish Shah, Chief Investment Officer of the Miami, Florida-based Tollbooth Strategy.
China Stock Movers
The Hang Send index plunged 7.6% to 21,334.37, and the mainland-focused CSI 300 index gained 4% to 4,181.12.
Alibaba Group declined 5% to HK $108.20, JD.com decreased 8.5% to HK $169.30, Tencent Holdings dropped 7.7% to HK $444.60, and Baidu plunged 8.6% to HK $101.50.
Property stocks were among the leading decliners in Hong Kong trading.
Longfor Group Holdings plunged 18.9% to HK $13.56, China Vanke decreased 28% to HK $7.87, and China Resources Land dropped 10.6% to HK $26.75.
Bank of China decreased 3.9% to HK $3.75, China Construction Bank dropped 3.5% to HK $5.96, and Industrial and Commercial Bank of China eased 2.9% to HK $4.69.
- Scott Peters
- 08 Oct, 2024
- New York City
PepsiCo increased 1.1% to $169.11, and the food and beverage company lowered its annual earnings outlook.
Revenue in the third quarter decreased to $23.3 billion from $23.5 billion, net income eased to $2.95 billion from $3.1 billion, and diluted earnings per share fell to $2.13 from $2.24 a year ago.
The company estimated its annual organic revenue to increase in "low single-digit," compared to its previous estimate of an increase of 4%.
The company also estimated core earnings per share to increase 7% to $8.15 from $7.62 a year ago.
Pepsi also reiterated its estimate of returning to shareholders approximately $8.2 billion, comprised of dividends of $7.2 billion and $1.0 billion of share repurchase.
Bank of America increased 0.1% to $40.01, and the company is scheduled to release earnings next week.
Berkshire Hathaway sold additional 9.6 million shares of the bank over the last three trading sessions and lowered its stake to 10.1%, according to a regulatory filing with the Securities and Exchange Commission.
China-linked stocks were in focus after Chinese authorities failed to announce new stimulus measures.
Stock market indexes in mainland China soared after investors returned from a week of holidays, but market enthusiasm quickly faded.
Trading in Shanghai and Shenzhen was in focus as investors scrambled to catch up with market gains during the Golden Week of holidays, as retail investors returned.
However, the record one-day surge of 10.8% quickly dissipated to an increase of 6% after the top planning body failed to announce any new significant fiscal measures.
The National Reform and Development Commission announced at a press conference implementation plans following the recently announced monetary policy measures to revive investor confidence and support the residential property market.
However, the commission failed to announce any new and concrete steps to restore consumer confidence, tackle elevated unemployment, and revive manufacturing activities.
Alibaba Group decreased 6% to $110.28, Las Vegas Sands dropped 2.9% to $51.78, and Wynn Resorts declined 2.9% to $103.41.
DocuSign jumped 8.3% to $67.95 after the company was selected to replace MDU Resources in the S&P MidCap 400 Index.
MDU Resources advanced 3.8% to $28.50.
- Barry Adams
- 08 Oct, 2024
- New York City
Investors returned to increase stock exposure following a sell-off in the previous session, but worries of a wider war in the Middle East persisted.
The S&P 500 index edged up 0.6% and the Nasdaq Composite advanced 1% as investors focused on the start of the earnings season and awaited results from Wells Fargo, Morgan Stanley, Bank of America, and JP Morgan.
PepsiCo declined about 1% after the food and beverage company lowered its annual earnings outlook.
Bond yields hovered above 4% for the second day in a row and stayed at a five-week high amid worries of a rebound in inflation following the 11% jump in crude oil prices over the last two weeks.
Stocks have been volatile, and crude oil prices have been on the rise on the worries that Israel could strike oil infrastructure after Iran's missile attacks.
For now, the U.S. has managed to stave off a retaliatory strike, but investors are fearful that Israel's strike could lead to a wider war that could make shipping riskier through the Strait of Hormuz.
On the economic front, the international trade deficit declined 10% to a five-month low of $70.4 billion in August from an upwardly revised $78.9 billion in July, the Commerce Department reported Tuesday.
Exports increased 2% from the previous month to a record high of $271.8 billion, and imports eased 0.9% to $342.2 billion.
Trade deficit with China shrank to $27.9 billion from $31.1 billion, and with Canada, it eased to $3.1 billion from $8.1 billion.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.6% to 5,729.32, the Nasdaq Composite rose 0.9% to 18,095.15, and the Russell 2000 index fell 0.1% to 2,191.69.
The yield on 2-year Treasury notes edged higher to 4.01%, 10-year Treasury notes inched up to 4.05%, and 30-year Treasury bonds inched higher to 4.33%.
WTI crude oil decreased $2.49 to $74.63 a barrel, and natural gas prices edged down 2 cents to $2.72 a thermal unit.
Gold fell by $2.28 to $2,640.35 an ounce, and silver decreased by $0.65 to $31.53.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 102.49.
U.S. Stock Movers
PepsiCo increased 1.1% to $169.11, and the food and beverage company lowered its annual earnings outlook.
Bank of America increased 0.1% to $40.01, and the company is scheduled to release earnings next week.
Berkshire Hathaway sold additional 9.6 million shares of the bank over the last three trading sessions and lowered its stake to 10.1%, according to a regulatory filing with the Securities and Exchange Commission.
China-linked stocks were in focus after Chinese authorities failed to announce new stimulus measures.
Alibaba Group decreased 6% to $110.28, Las Vegas Sands dropped 2.9% to $51.78, and Wynn Resorts declined 2.9% to $103.41.
DocuSign jumped 8.3% to $67.95 after the company was selected to replace MDU Resources in the S&P MidCap 400 Index.
MDU Resources advanced 3.8% to $28.50.
- Inga Muller
- 08 Oct, 2024
- Frankfurt
The weakness in resource, luxury goods, and automobile stocks dragged down European indexes.
Germany's industrial output rebounded, confirming a volatile trend over the last year.
France's goods trade deficit widened amid the persistent deficit in energy and manufactured products.
China-linked luxury brands declined in Paris and Milan, automakers fell in Frankfurt, and resource companies eased in London.
LVMH dropped 3.4% to €656.40, Hermes International declined 1% to €2,139.0, and Prada SpA decreased 1.4% to €6.50.
Mercedes-Benz Group declined 1.5% to €56.79, BMW fell 2% to €76.26, and Volkswagen Group edged lower 1.3% to €92.60.
French spirit and wine makers dropped after China imposed a temporary retaliatory tariff on brandy imports from the European Union.
Remy Cointreau SA dropped 7.6% to €60.75, and Pernod Ricard declined 3.8% to €126.50.
Antofagasta decreased 4.2% to 1,907.50 pence, Glencore declined 3.2% to 423.35 pence, and Anglo American fell 5.3% to 2,314.0 pence.
Vistry Group plunged 24% to 966.25 pence after the UK-based home builder sharply lowered its fiscal 2024 profit estimate.
Imperial Brands increased 4.4% to 2,239.0 pence after the tobacco products maker reaffirmed its fiscal year outlook.
Deutz AG increased 0.5% to €4.14, and the German engine maker said it plans to cut job costs amid challenging economic environment.
- Bridgette Randall
- 08 Oct, 2024
- London
European market sentiment was weak after China's latest fiscal measure announcements fell short of market expectations.
Benchmark indexes in London, Paris, Frankfurt, and Milan hovered near two-week lows after the weakness in luxury goods and resource companies dragged down markets.
On Tuesday, China's National Reform and Development Commission announced several key steps to implement previously announced monetary and fiscal measures.
However, the top planning body failed to provide any new key measures that could support higher consumption and alter the downward trajectory in employment and economic growth.
The widely attended press conference underwhelmed investors, and benchmark indexes in Hong Kong plunged as much as 11%.
Closer to home, on the economic front, investors overlooked the latest update on German industrial output and the French trade deficit.
German Industrial Output Confirmed Volatile Trend In Automobile Industry
German industrial output rebounded 2.9% from the previous month in August, reversing a decline of revised 2.9% in July, according to the Federal Statistical Office, or Destatis.
The statistical office adjusts industrial data for seasonal and calendar factors and also for inflation.
On an annual basis, industrial production fell at a slower pace of 2.7% compared to a fall of 5.6% in July.
Industrial production data have been volatile over the last twelve months because of the sharp swings in automobile production.
Production of motor vehicles, trailers, and semitrailers soared 19.3% after shrinking 8.2% in the previous month.
In addition, construction activities increased 0.3%, and energy production advanced 2.3%.
Industrial production, excluding energy and construction, increased by 3.4% in August compared to July.
Production of capital goods rose by 6.9%, intermediate goods by 0.1%, and consumer goods remained unchanged.
Outside industry, energy production increased by 2.3% in August, and construction production increased by 0.3% compared to the previous month.
France's Goods Deficit Widened In August
France's international goods trade deficit widened in August after exports rose at a softer pace than imports.
Goods exports increased 0.4% from the previous month to €49.7 billion, and imports rose 2.7% to €57 billion, widening the trade deficit to €7.4 billion from the revised €6 billion in July, according to the latest data available from the ministry of economy and finance.
Deficit in energy trade expanded to €4.5 billion from €4.0 billion in the previous month, in manufactured goods increased to €4.4 billion from €3.5 billion, and agriculture products edged up to €0.3 billion from €0.1 billion.
Europe Indexes and Yields
The DAX index decreased by 0.2% to 19,067.95; the CAC-40 index fell by 0.6% to 7,532.55; and the FTSE 100 index declined by 1.0% to 8,217.95.
The yield on 10-year German bonds edged higher to 2.25%, French bonds inched higher to 3.03%, the UK gilts edged up to 4.20%, and Italian bonds increased to 3.58%.
The euro edged lower to $1.09; the British pound inched lower to $1.30; and the U.S. dollar weakened to 85.61 Swiss cents.
Brent crude decreased $1.40 to $79.48 a barrel, and the Dutch TTF natural gas fell by €1.20 to €39.50 per MWh.
Europe Stock Movers
China-linked luxury brands declined in Paris and Milan, automakers fell in Frankfurt, and resource companies eased in London.
LVMH dropped 3.4% to €656.40, Hermes International declined 1% to €2,139.0, and Prada SpA decreased 1.4% to €6.50.
Mercedes-Benz Group declined 1.5% to €56.79, BMW fell 2% to €76.26, and Volkswagen Group edged lower 1.3% to €92.60.
French spirit and wine makers dropped after China imposed a temporary retaliatory tariff on brandy imports from the European Union.
Remy Cointreau SA dropped 7.6% to €60.75, and Pernod Ricard declined 3.8% to €126.50.
Antofagasta decreased 4.2% to 1,907.50 pence, Glencore declined 3.2% to 423.35 pence, and Anglo American fell 5.3% to 2,314.0 pence.