- Akira Ito
- 04 Oct, 2024
- Tokyo
Stock market indexes in Tokyo advanced, and the yen dropped to a one-month low as investors overlooked rising tensions in the Middle East and the sharp rise in the crude oil prices.
The Nikkei 225 stock average increased 0.5% and the Topix index gained 0.4%, and both benchmark indexes advanced nearly 1.5% in the week.
Market indexes traded higher despite rising tensions in the Middle East and crude oil prices soaring as much as 5% in international trading.
For the week, crude oil prices have surged more than 8% as Israel stepped up its bombing attacks in Lebanon and escalated its land-grabbing activities in Gaza.
Moreover, the ongoing worker strike at 14 key ports on the U.S. East and Gulf Coasts has also impacted sentiment for Japanese exports to the region.
The yen weakened 0.5% to 146.08 following comments from the newly elected prime minister, Shigeru Ishiba, supporting a gradual increase in the interest rate.
The unexpected comments from Ishiba's cast doubt about the possibility of another rate cut this year as the Bank of Japan awaits additional rate cuts in the U.S. and Europe.
The large swings in the yen with a spillover effect on the stock market confirm that investors are still nervous about the future rate outlook and fiscal spending outlook under the new leadership.
Japan Stock Movers
The Nikkei 225 stock average added 0.5% to 38,630.54, and the broader Topix index edged up 0.4% to 2,694.21.
Tech stocks led the gainers in Tokyo trading and extended weekly gains following the rebound in semiconductor-related stocks.
Advantest Corp. increased 1.2% to ¥6,950.0, Tokyo Electron fell 2% to ¥25,245.0, Lasertec added 0.04% to ¥23,715.0, and Shin-Etsu Chemical Company decreased 0.7% to ¥6,001.0.
Shipping companies plunged following the escalation of violence in the Middle East and the ongoing dockworker strike in the U.S. East and Gulf Coasts.
Nippon Yusen plunged 9.3% to ¥4,977.0, Mitsui O.S.K. Lines dropped 6.3% to ¥4,820.0, and Kawasaki Kisen Kaisha declined 9.6% to ¥2,070.0.
Retailers participated in the market rebound as the weaker yen boosted demand from foreign tourists.
Seven & I Holdings increased 3.5% to ¥2,194.50, Fast Retailing advanced 1.4% to ¥49,140.0, and Isetan Mitsukoshi added 0.5% to ¥2,309.0.
Mitsubishi UFJ Financial increased 2.2% to ¥1,480.50, Sumitomo Mitsui added 1.9% to ¥3,089.0, and Mizuho Financial gained 1.6% to ¥2,966.50.
- Li Chen
- 04 Oct, 2024
- Hong Kong
Hong Kong stocks advanced, overcoming morning jitters as investors poured more money into large-cap stocks.
The Hang Seng index rebounded from the morning losses of nearly 2% as investors increased exposure to tech stocks, banks, property developers, and oil explorers.
Market indexes in Hong Kong advanced as new domestic and international fund flows drove demand for large-cap stocks.
Investors bid up stocks for the third consecutive week in a row in the hopes that the Chinese authorities are preparing for a big and bold fiscal stimulus package targeting the residential property market.
The Hang Seng index is set to increase 9% in the current week, following a 13% increase in the previous week, the sharpest two consecutive weeks of gains in 26 years.
Financial markets in China have rebounded a whopping 23% since the announcement of monetary stimulus measures on September 24; however, the real economy continues to lag market expectations amid ongoing weakness in manufacturing.
Moreover, investor enthusiasm may be misplaced, as the stock market rally petered out following the expectations of an economic rebound after the ending of coronavirus restrictions at the end of January 2023.
China Stock Movers
The Hang Seng Index increased 1.9% to 22,529.97, and financial markets in mainland China are set to resume trading next Tuesday.
Alibaba Group jumped 3.2% to HK $113.50, Tencent Holdings advanced 2.1% to HK $476.0, Meituan jumped 3.2% to HK $212.0, and Baidu Inc. added 1.1% to HK $110.10.
Longfor Group added 1.4% to HK $17.22, China Vanke decreased 5.2% to HK $11.24, China Resources Land advanced 1.5% to HK $30.20, and Sun Hung Kai Properties fell 0.8% to HK $89.30.
Bank of China added 0.5% to HK $3.83, China Merchants Bank gained 0.4% to HK $45.55, and HSBC was unchanged at HK $69.40.
PetroChina advanced 3% to HK $6.74, CNOOC added 2.2% to HK $21.40, China Petroleum and Chemical gained 2.2% to HK $5.31, and China Shenhua increased 2.7% to HK $36.35.
- Arun Goswami
- 04 Oct, 2024
- Mumbai
Stocks in Mumbai extended weekly losses as violence escalated in the Middle East.
Crude oil jumped 5% in international trading and extended weekly gain to over 8% amid growing worries of a potential Israeli strike on Iran's oil infrastructure.
The Sensex index decreased by 0.5% to 82,096.24, and the Nifty index fell by 0.3% to 25,166.60.
On the Mumbai stock exchange, 70 stocks traded at their 52-week highs, and 40 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds inched higher to 6.77%, and the Indian rupee eased to 83.96 against the U.S. dollar.
The gold price decreased by 0.1% to ₹75,872 per ten grams, and silver edged up by 0.5% to ₹92,870 per kilo.
Crude oil increased by 4.0% to ₹6,174 per barrel, and natural gas was up 2.5% to ₹249.60 per thermal unit.
Piramal Enterprises declined 4.5% to ₹1,052.95, and the financial services company plans to increase its retail assets under management to one lakh crore rupees from the current ₹50,000 crore over the next three years.
Ola Electric Mobility declined 2.5% to ₹100.0, and the company said its September unit sales fell to the lowest monthly amount in the year so far.
Ashok Leyland increased 0.5% to ₹232.0, and the company entered into a joint venture with the Japan-based Nidec Corporation to develop advanced electric drive systems for commercial vehicles.
Refex Industries increased 3% to ₹557.0, and the company said it plans to raise ₹927.8 crore through a preferential equity offering.
The company's promoter group plans to invest ₹372 crore and the company is seeking ₹530 crore from high-net-worth individuals.
Bank of Baroda increased 1.1% to ₹247.81, and the company plans to sell its Oman-based operations to Bank Dhofar to rationalize its operations.
Bank of Baroda's Oman business generates 113.4 million Omani Rials.
Reliance Power decreased 4.2% to ₹51.30, and the renewable energy company is planning to raise ₹4,135 crore through the sale of foreign currency convertible bonds yielding 5%.
Biocon Ltd. decreased 0.8% to ₹353.80, and the company's subsidiary refinanced its $1 billion in long-term debt through the sale of senior secured notes due 2029 with a coupon rate of 6.67% per year.
With the help of the offering, the company will be able to defer $250 million in loan payment by five years and improve its liquidity after the offering.
- Alexander Garcia
- 03 Oct, 2024
- Miami
Stocks struggled to advance on Wall Street amid rising tensions in the Middle East, and investors awaited the release of nonfarm payrolls data on Friday.
The S&P 500 index decreased 0.4%, the 4asdaq Composite declined 0.3%, and the crude oil price extended its weekly gain to 5% amid escalating tensions in the Middle East.
Tensions in the Middle East rose after Israel escalated its attack on Beirut and continued its ground offensive in Gaza.
Market sentiment soured on the growing worries that Israel is likely to target the oil infrastructure of Iran, further lifting oil prices and stoking inflation.
Losses on Wall Street were muted after the service sector index showed its strongest performance in September, according to the latest update by the Institute of Supply Management.
The ISM Service Index showed that 54.9% of businesses reported expansion, up from 51.9% in August and the best reading since February 2023.
The service sector activities expanded for the 49th month in 52 months, highlighting the strength in new orders and business activity expansion.
Initial jobless claims increased by 6,000 to 225,000 in the last week, and continuing claims were little changed at 1.826 million, the U.S. Department of Labor reported Thursday.
The initial claims rose to a record high, confirming the labor market softening trend and supporting the case for a possible rate cut at each of the remaining policy meetings in the year.
U.S. Indexes and Treasury Yields
The S&P 500 index decreased 0.4% to 5,709.83, the Nasdaq Composite fell 0.4% to 17,855.19, and the Russell 2000 index fell 0.7% to 2,179.05.
The yield on 2-year Treasury notes edged higher to 3.70%, 10-year Treasury notes inched up to 3.80%, and 30-year Treasury bonds inched higher to 4.17%.
WTI crude oil increased $3.73 to $73.82 a barrel, and natural gas prices edged up 8 cents to $2.92 a thermal unit.
Gold fell by $1.52 to $2,658.70 an ounce, and silver increased by $0.25 to $32.10.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 101.96.
U.S. Stock Movers
Levi Strauss dropped 7.2% to $19.49, and the denim maker reported mixed results in the third quarter.
Bank of America declined 0.9% to $38.91 after Warren Buffett Controlled Berkshire Hathaway continued to lighten its holding in the bank.
Berkshire sold 8.5 million shares over the last three days for $338 million, according to the latest SEC filing.
Berkshire, the diversified conglomerate, started selling its holding in the bank since mid-July and now lowered its stake to 10.2%.
Hims & Hers Health dropped 14% to $16.30, and investors fear a sharp fall in demand for its pharmaceutical preparation as an alternative to Eli Lilly's GLP-1 treatment.
The Food and Drug Administration said that the GLP-1 treatment shortage has been resolved, which is likely to reduce the addressable market for Hims & Hers compounds.
Hims & Hers sells injections of semaglutide, a key ingredient used in Wegovy, the rival drug made by Novo Nordisk, which remains on the FDA's shortage list.
Nvidia Corp. jumped 3.1% to $122.59, and the company's chief executive confirmed that Blackwell, its next generation artificial intelligence processor, "is in full production."
“Blackwell is in full production, Blackwell is as planned, and the demand for Blackwell is insane,” CEO Jensen Huang said in an interview with CNBC on Wednesday.
Crude oil explorers traded higher after crude oil prices extended their weekly rise to above 5% after tensions escalated in the Middle East.
Exxon Mobil jumped 1% to $122.96, Chevron rose 0.7% to $122.96, and Occidental Petroleum added 1.6% to $54.30.
European Markets Turn Lower Amid Rising Middle East Tensions
Stock market indexes in Europe turned lower as tensions in the Middle East rose and the stimulus rally in China faded.
Benchmark indexes in Paris, Frankfurt, Milan, and London headed lower as investors reviewed the latest economic updates in the region.
Investors turned cautious after Israel stepped up its military offensive in Beirut and vowed to mount a solid retaliatory response to recent missile attacks from Iran.
The escalating tensions between Iran and Israel raised the prospect of crude oil supply disruptions in the Middle East.
Eurozone Producer Price Inflation Eases in August
Eurozone producer price inflation continued to ease in August, driven by weaker energy prices.
Producer price inflation in the currency union slowed to 0.6% in August, following a downwardly revised 0.7% increase in July, according to a report released by Eurostat.
On an annual basis, producer price inflation fell 2.3% from a downwardly revised 2.2% decline in the previous month.
Excluding energy, producer price inflation held steady at 0.3% in August.
Among the four largest economies in the currency union, producer prices on a monthly basis rose 0.2% in Germany and France, 1.2% in Italy, and 1.5% in Spain.
Swiss Inflation Drops to a 3-Year Low
Consumer price inflation in Switzerland decelerated to 0.8% in September from 1.1% in August, the Swiss Federal Statistical Office reported Thursday.
The inflation fell to the lowest level since September 2021, and dropped below 1% for the first time in three years.
Eurozone Private Sector Activities Contracted in September
The private sector activities contracted in the Euro Area for the first time in 2024, according to data compiled by S&P Global.
The final HCOB Eurozone Composite PMI Output Index fell to 49.6 in September from a three-month high of 51.0 in the previous month. The output index was estimated at 48.9 in the preliminary estimate.
Private sector activities contracted month-to-month simultaneously in Germany, France, and Italy for the first time in 2024 so far.
The German private sector output contracted for the third month in a row and fell at the fastest pace since February, and contraction resumed in France after the Olympic Games boost in August.
Italy's private sector activities index decreased for the first time in September, but the decline was marginal, and the index of activities eased to 49.7 from 50.7 in August.
Spain's private sector growth accelerated to a four-month high in September, driven by an increase in manufacturing and service sector activities.
The composite output index increased to 56.3 in September, up from 53.5 in August.
Europe Indexes and Yields
The DAX index decreased by 0.8% to 19,015.41; the CAC-40 index fell by 1.3% to 7,477.78; and the FTSE 100 index rose by 0.1% to 8,282.52.
The yield on 10-year German bonds edged higher to 2.14%, French bonds inched higher to 2.92%, the UK gilts edged up to 4.03%, and Italian bonds increased to 3.50%.
The euro edged lower to $1.10; the British pound inched lower to $1.31; and the U.S. dollar weakened to 85.05 Swiss cents.
Brent crude increased $3.82 to $77.72 a barrel, and the Dutch TTF natural gas fell by €0.88 to €38.77 per MWh.
Europe Stock Movers
Deutsche Lufthansa increased 0.2%, and the German state-controlled carrier said it is resuming flights to certain destinations in the Middle East.
The international flight operator also said the carrier plans to avoid airspace used by Iran and Iraq due to ongoing conflicts in the region.
Alstom SA increased 2.4% to €18.79 after the French mobility company received orders from supply chain procurement company Proxima for 12 high-speed trains.
SAP SE decreased 1.3% to €201.45, and the Germany company is under investigation by the U.S. Department of Justice for the alleged price-fixing practices.
Vonovia SE declined 1.5% to €33.11, and the German residential landlord confirmed total cash inflow of about €4 billion in 2024, matching the level in the previous year.
LANXESS AG declined 1.8% to €28.76, and the German chemical company agreed to sell its Urethane Systems business to Japan-based UBE Corporation.
Tesco PLC increased 2.3% to 363.10 pence after the British grocery company reported an increase in revenue and profit in the first half and lifted its annual outlook.
British Land Company declined 1.1% to 433.0 pence, and the property firm said it acquired seven retail properties for £441 million.
Japan Indexes Rebounded After Rate-Hike Worries Eased
Stock market sentiment rebounded in Tokyo after falling sharply in the previous session amid rising tensions in the Middle East.
The Nikkei 225 stock average jumped 2% and the Topix index increased more than 1% as the yen fell to a one-month low of 146.55 against the U.S. dollar.
The recently appointed prime minister, Shigeru Ishiba, said it is too soon to raise the interest rate after a meeting with Bank of Japan Governor Kazuo Ueda.
Prime Minister Ishiba's comments weakened the yen and pushed export heavy stocks higher in Tokyo.
On the economic front, the au Jibun Bank Japan Services PMI for September was revised lower to 53.1 from the preliminary estimate of 53.9.
Despite the slight easing of activities in the service sector, the index expanded for the third month in a row. but new orders rose modestly amid weak growth in export orders.
On the price front, input costs increased, driven by higher import costs because of the yen's weakness and rising wages; however, the increase was the lowest in six months.
Japan Stock Movers
The Nikkei 225 stock average rose 2% to 38,581.96, and the broader Topix index advanced 1.2% to 2,685.42.
Tech stocks led the gainers in Tokyo as investors overlooked the growing prospects of a wider war in the Middle East.
Tokyo Electron increased 2.7% to ¥25,760.0, Advantest Corp. gained 4.7% to ¥6,865.0, and Lasertec Corp. added 4% to ¥23,705.0.
Banks and financial services companies advanced after the yen weakened to a one-month low.
Mitsubishi UFJ Financial increased 0.1% to ¥1,448.50, Sumitomo Mitsui Financial added 0.2% to ¥3,032.0, but Mizuho Financial edged down 1.3% to ¥2,919.0.
Shipping companies were in focus for the second week in a row, as the U.S. port workers strike showed no sign of ending in the near future.
Nippon Yusen jumped 3.5% to ¥5,485.0, Kawasaki Kisen Kaisha added 3.6% to ¥2,290.0, and Mitsui O.S.K. Lines increased 2.5% to ¥5,149.0.
Hong Kong Indexes Plunged 4% as Market Rally Ran Out of Steam
Hong Kong market indexes declined for the first time in seven days after investors turned cautious.
Benchmark indexes in Hong Kong declined as much as 4% and halted a 6-day rally that saw indexes soar more than 23%.
Financial markets in mainland China are closed for the Golden Week holidays, and trading is set to resume next Tuesday.
The $3 trillion rally over the last six trading sessions in China indexes was powered by a raft of monetary policy measures to revive investor confidence and facilitate residential property market transactions.
Initial market enthusiasm turned into a market frenzy after local governments in Shanghai, Shenzhen, and Guangzhou eased home buying restrictions and lowered down payment requirements.
Property stocks soared as much as 60% over the last six sessions as retail investors rushed to increase exposure to residential property developers and companies linked to the construction industry.
China's president Xi Jinping signaled big fiscal stimulus at a hastily arranged Politburo meeting last week, stoking the market rally further.
The People's Bank of China's $141 billion package to revive investor confidence and the property market is likely to fall far short of what is needed to revive consumer confidence.
Moreover, the announced monetary stimulus measures are not deep and broad enough to change the nature of the business cycle, consumer mood, and revive the flailing job market.
Investors are still holding out for more gains after the release of fiscal measures over the next two weeks, but previous measures by the government have failed to change China's growth trajectory.
China Stock Movers
The Hang Seng index decreased 2.8% to 21,818.41, and financial markets in mainland China are set to resume trading next week.
Property stocks trimmed gains of the previous session after investors questioned the strength of the market rally.
China Vanke increased 0.7% to HK $12.08, China Resources Land plunged 5.9% to HK $29.80, Longfor Group dropped 8.5% to HK $17.14, and Sun Hung Kai Properties declined 1.6% to HK $89.70.
Electric vehicle makers erased gains of the previous session, despite five leading makers reporting a sharp gain in September unit sales.
Li Auto declined 3.7% to HK $117.0, BYD fell 1% to HK $296.40, NIO jumped 6% to HK $55.60, and Xpeng dropped 6.3% to HK $51.55.
Alibaba Group dropped 4% to HK $110.40, Tencent Holding declined 1.1% to HK $464.80, and Baidu Inc. dropped 4.7% to HK $109.80.
- Scott Peters
- 03 Oct, 2024
- New York City
Levi Strauss dropped 7.2% to $19.49, and the denim maker reported mixed results in the third quarter.
Bank of America declined 0.9% to $38.91 after Warren Buffett Controlled Berkshire Hathaway continued to lighten its holding in the bank.
Berkshire sold 8.5 million shares over the last three days for $338 million, according to the latest SEC filing.
Berkshire, the diversified conglomerate, started selling its holding in the bank since mid-July and now lowered its stake to 10.2%.
Hims & Hers Health dropped 14% to $16.30, and investors fear a sharp fall in demand for its pharmaceutical preparation as an alternative to Eli Lilly's GLP-1 treatment.
The Food and Drug Administration said that the GLP-1 treatment shortage has been resolved, which is likely to reduce the addressable market for Hims & Hers compounds.
Hims & Hers sells injections of semaglutide, a key ingredient used in Wegovy, the rival drug made by Novo Nordisk, which remains on the FDA's shortage list.
Nvidia Corp. jumped 3.1% to $122.59, and the company's chief executive confirmed that Blackwell, its next generation artificial intelligence processor, "is in full production."
“Blackwell is in full production, Blackwell is as planned, and the demand for Blackwell is insane,” CEO Jensen Huang said in an interview with CNBC on Wednesday.
Crude oil explorers traded higher after crude oil prices extended their weekly rise to above 5% after tensions escalated in the Middle East.
Exxon Mobil jumped 1% to $122.96, Chevron rose 0.7% to $122.96, and Occidental Petroleum added 1.6% to $54.30.
- Barry Adams
- 03 Oct, 2024
- New York City
Stocks wavered on Wall Street amid rapidly escalating tensions in the Middle East, and the dockworkers strike showed no signs of easing.
The S&P 500 index decreased 0.1%, the Nasdaq Composite declined 0.2%, and the crude oil price extended its weekly gain to 5% amid escalating tensions in the Middle East.
Tensions in the Middle East rose after Israel escalated its attack on Beirut and continued its ground offensive in Gaza.
Market sentiment soured on the growing worries that Israel is likely to target the oil infrastructure of Iran, further lifting oil prices and stoking inflation.
Losses on Wall Street were muted after the service sector index showed its strongest performance in September, according to the latest update by the Institute of Supply Management.
The ISM Service Index showed that 54.9% of businesses reported expansion, up from 51.9% in August and the best reading since February 2023.
The service sector activities expanded for the 49th month in 52 months, highlighting the strength in new orders and business activity expansion.
Initial jobless claims increased by 6,000 to 225,000 in the last week, and continuing claims were little changed at 1.826 million, the U.S. Department of Labor reported Thursday.
The initial claims rose to a record high, confirming the labor market softening trend and supporting the case for a possible rate cut at each of the remaining policy meetings in the year.
U.S. Indexes and Treasury Yields
The S&P 500 index decreased 0.1% to 5,709.83, the Nasdaq Composite fell 0.2% to 17,941.08, and the Russell 2000 index fell 0.5% to 2,183.22.
The yield on 2-year Treasury notes edged higher to 3.70%, 10-year Treasury notes inched up to 3.80%, and 30-year Treasury bonds inched higher to 4.17%.
WTI crude oil increased $3.32 to $73.29 a barrel, and natural gas prices edged up 7 cents to $2.96 a thermal unit.
Gold fell by $10.66 to $2,649.42 an ounce, and silver decreased by $0.08 to $31.76.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 101.93.
U.S. Stock Movers
Levi Strauss dropped 7.2% to $19.49, and the denim maker reported mixed results in the third quarter.
Bank of America declined 0.9% to $38.91 after Warren Buffett Controlled Berkshire Hathaway continued to lighten its holding in the bank.
Berkshire sold 8.5 million shares over the last three days for $338 million, according to the latest SEC filing.
Berkshire, the diversified conglomerate, started selling its holding in the bank since mid-July and now lowered its stake to 10.2%.
Hims & Hers Health dropped 14% to $16.30, and investors fear a sharp fall in demand for its pharmaceutical preparation as an alternative to Eli Lilly's GLP-1 treatment.
The Food and Drug Administration said that the GLP-1 treatment shortage has been resolved, which is likely to reduce the addressable market for Hims & Hers compounds.
Hims & Hers sells injections of semaglutide, a key ingredient used in Wegovy, the rival drug made by Novo Nordisk, which remains on the FDA's shortage list.
Nvidia Corp. jumped 3.1% to $122.59, and the company's chief executive confirmed that Blackwell, its next generation artificial intelligence processor, "is in full production."
“Blackwell is in full production, Blackwell is as planned, and the demand for Blackwell is insane,” CEO Jensen Huang said in an interview with CNBC on Wednesday.
Crude oil explorers traded higher after crude oil prices extended their weekly rise to above 5% after tensions escalated in the Middle East.
Exxon Mobil jumped 1% to $122.96, Chevron rose 0.7% to $122.96, and Occidental Petroleum added 1.6% to $54.30.
- Inga Muller
- 03 Oct, 2024
- Frankfurt
European markets traded down amid rising tensions in the Middle East and uncertainty related to the U.S. port workers strike.
Eurozone private sector activities contracted for the first time in seven months. Swiss consumer price inflation dropped to a three-year low.
The DAX index decreased by 0.5% to 19,066.73; the CAC-40 index fell by 0.7% to 7,521.42; and the FTSE 100 index rose by 0.3% to 8,317.92.
The yield on 10-year German bonds edged higher to 2.14%, French bonds inched higher to 2.92%, the UK gilts edged up to 4.03%, and Italian bonds increased to 3.50%.
Deutsche Lufthansa increased 0.2%, and the German state-controlled carrier said it is resuming flights to certain destinations in the Middle East.
The international flight operator also said the carrier plans to avoid airspace used by Iran and Iraq due to ongoing conflicts in the region.
Alstom SA increased 2.4% to €18.79 after the French mobility company received orders from supply chain procurement company Proxima for 12 high-speed trains.
SAP SE decreased 1.3% to €201.45, and the Germany company is under investigation by the U.S. Department of Justice for the alleged price-fixing practices.
Vonovia SE declined 1.5% to €33.11, and the German residential landlord confirmed total cash inflow of about €4 billion in 2024, matching the level in the previous year.
LANXESS AG declined 1.8% to €28.76, and the German chemical company agreed to sell its Urethane Systems business to Japan-based UBE Corporation.
Tesco PLC increased 2.3% to 363.10 pence after the British grocery company reported an increase in revenue and profit in the first half and lifted its annual outlook.
Comparable same store sales in the UK rose at a slower pace of 4% in the second quarter from 4.6% in the first quarter.
The retailer said its investment in keeping the prices low helped its to increase market share by 62 basis points to 27.8%, the highest since January 2022.
The company declared an interim dividend of 4.25 pence, and the company estimated retail adjusted operating profit of £2.9 billion the full-year.
British Land Company declined 1.1% to 433.0 pence, and the property firm said it plans to acquire seven retail properties for £441 million and raise £301 million through a secondary offering priced at 422 pence per share.
- Bridgette Randall
- 03 Oct, 2024
- London
Stock market indexes in Europe turned lower as tensions in the Middle East rose and the stimulus rally in China faded.
Benchmark indexes in Paris, Frankfurt, Milan, and London headed lower as investors reviewed the latest economic updates in the region.
Investors turned cautious after Israel stepped up its military offensive in Beirut and vowed to mount a solid retaliatory response to recent missile attacks from Iran.
The escalating tensions between Iran and Israel raised the prospect of crude oil supply disruptions in the Middle East.
Eurozone Producer Price Inflation Eases in August
Eurozone producer price inflation continued to ease in August, driven by weaker energy prices.
Producer price inflation in the currency union slowed to 0.6% in August, following a downwardly revised 0.7% increase in July, according to a report released by Eurostat.
On an annual basis, producer price inflation fell 2.3% from a downwardly revised 2.2% decline in the previous month.
Excluding energy, producer price inflation held steady at 0.3% in August.
Among the four largest economies in the currency union, producer prices on a monthly basis rose 0.2% in Germany and France, 1.2% in Italy, and 1.5% in Spain.
Swiss Inflation Drops to a 3-Year Low
Consumer price inflation in Switzerland decelerated to 0.8% in September from 1.1% in August, the Swiss Federal Statistical Office reported Thursday.
The inflation fell to the lowest level since September 2021, and dropped below 1% for the first time in three years.
Eurozone Private Sector Activities Contracted in September
The private sector activities contracted in the Euro Area for the first time in 2024, according to data compiled by S&P Global.
The final HCOB Eurozone Composite PMI Output Index fell to 49.6 in September from a three-month high of 51.0 in the previous month. The output index was estimated at 48.9 in the preliminary estimate.
Private sector activities contracted month-to-month simultaneously in Germany, France, and Italy for the first time in 2024 so far.
The German private sector output contracted for the third month in a row and fell at the fastest pace since February, and contraction resumed in France after the Olympic Games boost in August.
Italy's private sector activities index decreased for the first time in September, but the decline was marginal, and the index of activities eased to 49.7 from 50.7 in August.
Spain's private sector growth accelerated to a four-month high in September, driven by an increase in manufacturing and service sector activities.
The composite output index increased to 56.3 in September, up from 53.5 in August.
Europe Indexes and Yields
The DAX index decreased by 0.5% to 19,066.73; the CAC-40 index fell by 0.7% to 7,521.42; and the FTSE 100 index rose by 0.3% to 8,317.92.
The yield on 10-year German bonds edged higher to 2.14%, French bonds inched higher to 2.92%, the UK gilts edged up to 4.03%, and Italian bonds increased to 3.50%.
The euro edged lower to $1.10; the British pound inched lower to $1.31; and the U.S. dollar weakened to 85.05 Swiss cents.
Brent crude increased $1.31 to $75.21 a barrel, and the Dutch TTF natural gas fell by €0.24 to €38.65 per MWh.
Europe Stock Movers
Deutsche Lufthansa increased 0.2%, and the German state-controlled carrier said it is resuming flights to certain destinations in the Middle East.
The international flight operator also said the carrier plans to avoid airspace used by Iran and Iraq due to ongoing conflicts in the region.
Alstom SA increased 2.4% to €18.79 after the French mobility company received orders from supply chain procurement company Proxima for 12 high-speed trains.
SAP SE decreased 1.3% to €201.45, and the Germany company is under investigation by the U.S. Department of Justice for the alleged price-fixing practices.
Vonovia SE declined 1.5% to €33.11, and the German residential landlord confirmed total cash inflow of about €4 billion in 2024, matching the level in the previous year.
LANXESS AG declined 1.8% to €28.76, and the German chemical company agreed to sell its Urethane Systems business to Japan-based UBE Corporation.
Tesco PLC increased 2.3% to 363.10 pence after the British grocery company reported an increase in revenue and profit in the first half and lifted its annual outlook.
British Land Company declined 1.1% to 433.0 pence, and the property firm said it acquired seven retail properties for £441 million.
- Akira Ito
- 03 Oct, 2024
- Tokyo
Stock market sentiment rebounded in Tokyo after falling sharply in the previous session amid rising tensions in the Middle East.
The Nikkei 225 stock average jumped 2% and the Topix index increased more than 1% as the yen fell to a one-month low of 146.55 against the U.S. dollar.
The recently appointed prime minister, Shigeru Ishiba, said it is too soon to raise the interest rate after a meeting with Bank of Japan Governor Kazuo Ueda.
Prime Minister Ishiba's comments weakened the yen and pushed export heavy stocks higher in Tokyo.
On the economic front, the au Jibun Bank Japan Services PMI for September was revised lower to 53.1 from the preliminary estimate of 53.9.
Despite the slight easing of activities in the service sector, the index expanded for the third month in a row. but new orders rose modestly amid weak growth in export orders.
On the price front, input costs increased, driven by higher import costs because of the yen's weakness and rising wages; however, the increase was the lowest in six months.
Japan Stock Movers
The Nikkei 225 stock average rose 2% to 38,581.96, and the broader Topix index advanced 1.2% to 2,685.42.
Tech stocks led the gainers in Tokyo as investors overlooked the growing prospects of a wider war in the Middle East.
Tokyo Electron increased 2.7% to ¥25,760.0, Advantest Corp. gained 4.7% to ¥6,865.0, and Lasertec Corp. added 4% to ¥23,705.0.
Banks and financial services companies advanced after the yen weakened to a one-month low.
Mitsubishi UFJ Financial increased 0.1% to ¥1,448.50, Sumitomo Mitsui Financial added 0.2% to ¥3,032.0, but Mizuho Financial edged down 1.3% to ¥2,919.0.
Shipping companies were in focus for the second week in a row, as the U.S. port workers strike showed no sign of ending in the near future.
Nippon Yusen jumped 3.5% to ¥5,485.0, Kawasaki Kisen Kaisha added 3.6% to ¥2,290.0, and Mitsui O.S.K. Lines increased 2.5% to ¥5,149.0.
- Li Chen
- 03 Oct, 2024
- Hong Kong
Hong Kong market indexes declined for the first time in seven days after investors turned cautious.
Benchmark indexes in Hong Kong declined as much as 4% and halted a 6-day rally that saw indexes soar more than 23%.
Financial markets in mainland China are closed for the Golden Week holidays, and trading is set to resume next Tuesday.
The $3 trillion rally over the last six trading sessions in China indexes was powered by a raft of monetary policy measures to revive investor confidence and facilitate residential property market transactions.
Initial market enthusiasm turned into a market frenzy after local governments in Shanghai, Shenzhen, and Guangzhou eased home buying restrictions and lowered down payment requirements.
Property stocks soared as much as 60% over the last six sessions as retail investors rushed to increase exposure to residential property developers and companies linked to the construction industry.
China's president Xi Jinping signaled big fiscal stimulus at a hastily arranged Politburo meeting last week, stoking the market rally further.
The People's Bank of China's $141 billion package to revive investor confidence and the property market is likely to fall far short of what is needed to revive consumer confidence.
Moreover, the announced monetary stimulus measures are not deep and broad enough to change the nature of the business cycle, consumer mood, and revive the flailing job market.
Investors are still holding out for more gains after the release of fiscal measures over the next two weeks, but previous measures by the government have failed to change China's growth trajectory.
China Stock Movers
The Hang Seng index decreased 2.8% to 21,818.41, and financial markets in mainland China are set to resume trading next week.
Property stocks trimmed gains of the previous session after investors questioned the strength of the market rally.
China Vanke increased 0.7% to HK $12.08, China Resources Land plunged 5.9% to HK $29.80, Longfor Group dropped 8.5% to HK $17.14, and Sun Hung Kai Properties declined 1.6% to HK $89.70.
Electric vehicle makers erased gains of the previous session, despite five leading makers reporting a sharp gain in September unit sales.
Li Auto declined 3.7% to HK $117.0, BYD fell 1% to HK $296.40, NIO jumped 6% to HK $55.60, and Xpeng dropped 6.3% to HK $51.55.
Alibaba Group dropped 4% to HK $110.40, Tencent Holding declined 1.1% to HK $464.80, and Baidu Inc. dropped 4.7% to HK $109.80.
- Arun Goswami
- 03 Oct, 2024
- Mumbai
The rising tensions in the Middle East and uncertainties about the supply chain disruptions in the Eastern United States negatively impacted market enthusiasm on Dalal Street as trading resumed after the Gandhi Jayanti holiday.
The Sensex index decreased by 0.7% to 83,707.86, and the Nifty index fell by 0.7% to 25,618.90.
On the Mumbai stock exchange, 183 stocks traded at their 52-week highs, and 54 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds inched higher to 6.73%, and the Indian rupee eased to 83.91 against the U.S. dollar.
Godrej Properties decreased 0.2% to ₹3,243.10, and the company's board approved the company's plans to raise as much as ₹6,000 crore to finance its real estate projects.
HCL Technologies decreased 0.6% to ₹1,798.25, and Taiwan-based Foxconn is planning to invest as much as 424 crore in a semiconductor joint venture with the company.
Adani Power decreased 1% to ₹646.20, and the company agreed to acquire the Dahanu Power Station for ₹815 crore.
Marico Ltd. increased 2.6% to ₹705.10 after the company reported a high single-digit revenue growth in the fiscal second quarter ending in September.
The company said revenue growth is expected to accelerate in the second half of the fiscal year as currency headwinds ease.
Blue Star Ltd. declined 0.7% to ₹2,080.45, and the company said it is likely to prevail in arbitration with Oman-based W J Towell & Company, which is demanding ₹461.74 crore.
The company said the claims asserted by the Oman-based company are unfounded and materially not significant.
NTPC increased 0.3% to ₹440.65, and the company owned THDC India Limited signed a preliminary agreement with the Rajasthan government for 1,600 MW pump storage projects for a total investment of ₹8,000 crore.
Reliance Power increased 5% to ₹53.64 and Reliance Infrastructure jumped 2.7% to ₹340.95, and both companies struck a partnership with Bhutan-based Druk Holding and Investment for renewable energy projects.
The joint venture plans to develop a 770 MW hydroelectric power plant and a 500 MW solar power plant.
Eicher Motors declined 2.7% to ₹4,837.55, and the vehicle maker said unit sales jumped 11% from a year ago to 86,978 in September.
- Alexander Garcia
- 02 Oct, 2024
- Miami
Stock market indexes wavered in early trading on Wednesday amid rising tensions in the Middle East compounded by the uncertainty about the port workers strike.
The S&P 500 index increased 0.1% and the Nasdaq Composite edged higher 0.4% in Wednesday's trading as fears rose about the prospect of a wider war in the Middle East.
Iran said it completed its ballistic missile attack on Israel in retaliation for the killing of its political advisors to Hezbollah and a military commander in Iran.
Israel's president Benjamin Netanyahu vowed to provide a "painful" response to Iran's missile attacks, which were shot down with the help of the U.S. military installations in Jordan and Saudi Arabia.
Israel also launched its ground offensive in southern Lebanon, targeting military hardware and fighters controlled by the Iran-backed Hezbollah.
Investors are on edge as tensions escalate between Iran and Israel, which could possibly pull the U.S. into yet another war, while the U.S.-led NATO is enmeshed in challenging Russia's invasion of Ukraine.
In addition, supply chain worries also dominated market sentiment after International Longshoremen's Association members launched a historic strike at key 14 ports on the East and Gulf Coasts from Maine to Texas.
The last time dock workers on the East Coast and along the Gulf Coast took to strike was in 1977.
If the strike drags on longer than three weeks, retailers and businesses could face shortages, and customers could experience higher prices on items ranging from apparel, fruits, and vegetables, coffee, chemicals, wood products, and Christmas decoration.
Cruise ships and oil tankers are not going to be affected by the port strike, because the union's pledge not to hold up travelers and non-union workers handling the flow.
The United States Maritime Alliance, or USMX, which represents shippers, port associations, and terminal operators, said the now-expired contract of six years covered about 25,000 workers.
On the economic front, private payrolls rose 143,000 in September, higher than the revised increase of 103,000 in August, according to the monthly report by ADP.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.1% to 5,717.41, the Nasdaq Composite rose 0.4% to 17,974.91, and the Russell 2000 index increased 0.1% to 2,199.91.
The yield on 2-year Treasury notes edged higher to 3.65%, 10-year Treasury notes inched up to 3.79%, and 30-year Treasury bonds inched higher to 4.14%.
WTI crude oil increased $0.25 to $70.07 a barrel, and natural gas prices edged up 4 cents to $2.94 a thermal unit.
Gold fell by $9.54 to $2,650.80 an ounce, and silver increased by $0.42 to $31.76.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 101.43.
U.S. Stock Movers
Nike Inc. declined 7.4% to $82.57, and the athletic footwear company reported better-than-expected revenue in its latest quarter.
Revenue in the fiscal first quarter ending in August declined 10% to $11.6 billion from $12.9 billion, net income plunged 28% to $1.05 billion from $1.45 billion, and diluted earnings per share fell to 70 cents from 94 cents a year ago.
The athletic footwear and apparel maker said inventories at the end of the quarter fell 5% to $8.3 billion, reflecting product mix shifts and lower input costs.
In the fiscal first quarter, the company returned to shareholders about $1.8 billion, including $558 million of dividends and $1.2 billion of stock repurchases.
The company also withdrew its annual outlook and postponed its investor day as the new chief executive prepares to take charge.
China-linked stocks advanced for the sixth session in a row following the stimulus rally turned into a frenzy in Hong Kong.
The Hang Seng index soared 6% and extended its six-day rally to a whopping 25%, ahead of the widely anticipated fiscal measures following monetary stimulus and the relaxing of curbs on residential property transactions.
Property stocks in Hong Kong trading soared between 10% and 60%, and tech stocks jumped between 6% and 20%.
In New York trading, Alibaba Group advanced 2.6% to $115.63, JD.com gained 8.6% to $46.65, Baidu increased 5.8% to $116.45, and PDD Holdings jumped 5.3% to $153.06.
Tesla declined 4.4% to $246.85 after the electric vehicle maker reported slightly less-than-expected deliveries in the third quarter.
The electric vehicle maker delivered 462,890 vehicles, higher than 435,059 in the quarter a year ago and 443,956 in the previous quarter.
Tesla is facing growing competition from Chinese automakers, and electric vehicle industry sales in China surged more than 43% from a year ago to 1.03 million in September.
Li Auto, BYD, and NIO reported record monthly sales in China in September.
Eli Lilly increased 0.8% to $885.78, and the pharmaceutical company is planning to invest as much as $4.5 billion in research and manufacturing facilities in Indiana.
The new facility will hire about 400 staff, when fully operational, of scientists, researchers, engineers, and clinical personnel.
The company's latest investment plan is in addition to its previously announced $5.3 billion plan in May to manufacture active ingredients for its diabetes and weight loss drugs.
European Indexes Wavered as Crude Oil Jumped 3%, Eurozone Jobless Rate Held Steady at Record Low
European markets struggled to stay above the flatline amid growing fears of a wider war in the Middle East, which potentially could disrupt crude oil supplies and international goods trade.
Crude oil surged more than 3% in New York and London trading after Iran launched ballistic missiles targeting Israel while the Israeli military entered southern Lebanon.
Benchmark indexes in Paris, London, and Frankfurt traded in a tight range, and investors reviewed the latest update on the labor market in the Euro Area.
Eurozone Jobless Rate Held Steady In August
The jobless rate in the Euro Area held steady at 6.4% in August, according to a Eurostat report released on Wednesday.
The unemployment rate stayed at record lows and stayed resilient despite an elevated interest rate and weakening manufacturing sector activities.
The jobless count increased by 94,000 from the previous month to 10.925 million, and the unemployment rate among those younger than 25 years of age and seeking jobs eased to 14.1%.
Geographically, Spain led with a jobless rate of 11.3%, followed by Greece with 9.5% and Sweden with 8.4%.
On the other hand, the jobless rate was the lowest in Poland with 2.9%, Malta with 3%, Slovenia with 3.3%, and Germany with 3.5%.
Spain's August Jobless Count Dropped to the Lowest Since 2007
The number of people registered as jobless increased by 3,146 to 2.575 million in September, the ministry of employment and social security reported Tuesday.
Unemployment among those younger than 25 increased by 15,027 to 192,139 in the month.
The overall number of unemployed and those younger than 25 were lowest in the month since 2007.
Europe Indexes and Yields
The DAX index decreased by 0.3% to 19,149.33; the CAC-40 index rose by 0.1% to 7,577.59; and the FTSE 100 index rose by 0.2% to 8,290.86.
The yield on 10-year German bonds edged higher to 2.08%, French bonds inched higher to 2.86%, the UK gilts edged up to 4.02%, and Italian bonds increased to 3.42%.
The euro edged lower to $1.10; the British pound inched higher to $1.32; and the U.S. dollar weakened to 84.80 Swiss cents.
Brent crude decreased $2.20 to $75.76 a barrel, and the Dutch TTF natural gas fell by €0.11 to €39.13 per MWh.
Europe Stock Movers
Energy stocks advanced in London following the rise in crude oil prices for the second week in a row amid rising tensions in the Middle East.
Separately, American Petroleum Institute data showed that the U.S. crude oil inventories declined by 1.5 million barrels last week, the second weekly decline in a row.
BP plc increased 2.4% to 410.60 pence, Shell PLC jumped 2.3% to 2,536.50 pence, and TotalEnergies SE advanced 2.7% to €60.91.
TotalEnergies announced an investment of $10.5 billion in the GranMorgu offshore oil exploration block in the Republic of Suriname.
GEA Group AG increased 2.4% to €45.08, and the German technology and system provider for the food processing industry said it achieved its mid-term financial goals two years ahead of schedule.
Wizz Air Holdings dropped 6% to 1,285.0 pence in London trading after discount airline operator said load factor in September dropped.
JD Sports Fashion PLC dropped 5.3% to 141.70 pence despite the retailer reporting record sales in 26 weeks to August and reiterating its annual outlook.
Japan Indexes Erase Gains of Previous Session, Diet Elects Ishiba as Next Prime Minister
Stock market indexes in Tokyo erased most of the gains of the previous session, and investors turned cautious amid rising tensions in the Middle East.
The Nikkei 225 stock average dropped nearly 2%, and the broader Topix index declined more than 1% amid worries of a wider war in the Middle East.
Iran launched a ballistic missile attack targeting Israel, escalating war in the Middle East, and Israeli forces carried out a ground invasion in Lebanon to dismantle installations controlled by Hezbollah.
Despite Israel's recent military advances against Hezbollah in Lebanon and Hamas in Gaza, security conditions are not likely to improve in the Middle East in the near future.
Investors in Tokyo and Asia are worried about the possibilities of crude oil supply disruptions if the war draws Iran and its supporters to a wider war, prolonging instability in the region.
The yen decreased 0.1% to 143.64 against the U.S. dollar as currency traders monitored developments in the Middle East.
Japan's parliament elected Shigeru Ishiba, the president of the Liberal Democratic Party, as the 102nd prime minister, and investors looked for clues about the future course of the monetary and fiscal policies.
Prime Minister Ishiba is expected to support a gradual increase in the interest rate and is likely to be more conservative in increasing government spending.
The newly elected prime minister announced dissolution of the parliament on October 9 and called for a general election on October 27, as the ruling party sought to regain public trust following the political funds scandal.
On Tuesday, the Bank of Japan's Tankan survey found optimism among large manufacturing companies, but the mid-sized and smaller companies in the construction and service sectors expect conditions to worsen in the months ahead.
Japan Stock Movers
The Nikkei 225 stock average declined 1.9% to 37,930.58, and the Topix index dropped 1.1% to 2,660.87.
Tech stocks were among the leading decliners in Tokyo as investors turned cautions amid rising tensions in the Middle East.
Tokyo Electron decreased 3.6% to ¥25,105.0, Advantest fell 4% to ¥6,616.0, and Lasertec Corporation dropped 4% to ¥22,970.0.
Seven & I decreased 0.1% to ¥2,161.0, Isetan Mitsukoshi dropped 4.4% to ¥2,242.0, Fast Retailing declined 3.7% to ¥46,950.0, and Takashimaya fell 0.7% to ¥1,154.50.
Marubeni Corp. gained 1.5% to ¥2,417.50, Itochu advanced 1% to ¥7,868.0, Mitsubishi Corp added 0.6% to ¥3,046.0, and Mitsui & Company gained 1.2% to ¥3,332.0.
Shipping companies were in focus for the second day in a row after workers at 14 key ports in the U.S. went on a strike following the breakdown of wage negotiations.
Nippon Yusen KK decreased 0.4% to ¥5,312.0, Kawasaki Kisen Kaisha fell 0.6% to ¥2,216.0, and Mitsui O.S.K. Lines gained 1.2% to ¥5,046.0.
Automobile companies were in focus ahead of monthly sales data, and the vehicle makers scrambled to stock additional inventories after the U.S. port workers strike disrupted supply chains.
Toyota Motor decreased 0.9% to ¥2,573.50, Honda Motor increased 0.2% to ¥1,544.50, and Nissan Motor jumped 0.2% to ¥410.70.
China Stock Frenzy Powers Hong Kong Rally for the Sixth Consecutive Session, EV Sales Soar In September
The stimulus rally in China has turned into a frenzy as investors piled in after the People's Bank of China announced measures to support financial markets.
The Hang Seng index soared nearly 4%, extending the rally to the sixth session in a row and gains to over a whopping 23%.
Financial markets in mainland China are closed for the Golden Week holidays, and trading is set to resume next Wednesday.
Last week, the People's Bank of China announced a raft of measures to revive investor confidence, facilitate lending to corporations and consumers, and provide support to the residential property market.
Moreover, Beijing's policymakers pivoted their attention to reviving economic growth and supporting the property market after sitting on the sidelines for four years.
Local authorities in Shanghai, Guangzhou, and Shenzhen eased restrictions on buying homes by lowering down payment requirements and approving purchases by nonresidents.
Luxury property sales soared in Shanghai over the weekend, following the easing of restrictions, powering the sale of more than 11 billion yuan in just two days.
Retail investors jumped on the bandwagon in Monday's trading, lifting the trading volume to record highs in Shenzhen and Shanghai stock exchanges.
About HK$506 billion, or $65 billion worth of stocks, changed hands on Monday in Hong Kong, breaking the previous record on Friday.
Trading turnover on exchanges in Shanghai and Shenzhen soared to a record high of 2.6 trillion yuan, or $371 billion, as individual and institutional investors bid up stocks.
The improving investor confidence is expected to draw more investments from global fund managers and foreign investors as foreign investors recalibrate their China exposure.
Despite the current euphoric market sentiment, it will take time before consumers feel the positive effect of the monetary policy easing.
Investors are now expecting the release of significant fiscal measures from policymakers over the next two weeks, but previous measures released earlier in the year have failed to revive consumer confidence and arrest the decline in the property market.
China Stock Movers
The Hang Seng index soared 3.6% to 22,380.41, and financial markets in China were closed for National Holidays.
Mainland China-focused property developers soared in Hong Kong trading.
China Resources Land jumped 10.5% to HK $31.55, China Vanke soared 41% to HK $10.52, Longfor Group Holding surged 30.1% to HK $19.62, and Sun Hung Kai Properties added 6.3% to HK $90.90.
Tech stocks also participated in the market rally, as investors warmed up to high-growth stocks and riskier assets.
Alibaba Group added 7.1% to HK $118.20, JD.com jumped 12.1% to HK $189.0, and Tencent Holdings gained 7.7% to HK $477.80.
Electric vehicle makers advanced in Hong Kong trading following the strong September sales driven by heavy discounting, and new models attracted new buyers.
Li Auto advanced 13.1% to HK $122.30 and BYD increased 7.2% to HK $305.0 after five leading electric vehicle makers reported record sales in September.
BYD sold a record 419,426 electric vehicles in September, an increase of 12.4% from the previous month and a surge of 45.9% from a year ago.
Li Auto shipped 53,709 electric vehicles last month, a rise of 11.6% from August and a jump of 48.9% from a year ago.
NIO Inc. increased 5.9% to HK $59.50 after the electric vehicle maker reported September vehicle sales increased 5% from the previous month and 35.4% from a year ago to 21,181.
Xpeng advanced 3.8% to HK $54.95 after the electric vehicle maker sold a record 21,352 units, an increase of 52.1% from August and a surge of 39.5% from a year ago.
- Scott Peters
- 02 Oct, 2024
- New York City
Nike Inc. declined 7.4% to $82.57, and the athletic footwear company reported better-than-expected revenue in its latest quarter.
Revenue in the fiscal first quarter ending in August declined 10% to $11.6 billion from $12.9 billion, net income plunged 28% to $1.05 billion from $1.45 billion, and diluted earnings per share fell to 70 cents from 94 cents a year ago.
The athletic footwear and apparel maker said inventories at the end of the quarter fell 5% to $8.3 billion, reflecting product mix shifts and lower input costs.
In the fiscal first quarter, the company returned to shareholders about $1.8 billion, including $558 million of dividends and $1.2 billion of stock repurchases.
The company also withdrew its annual outlook and postponed its investor day as the new chief executive prepares to take charge.
China-linked stocks advanced for the sixth session in a row following the stimulus rally turned into a frenzy in Hong Kong.
The Hang Seng index soared 6% and extended its six-day rally to a whopping 25%, ahead of the widely anticipated fiscal measures following monetary stimulus and the relaxing of curbs on residential property transactions.
Property stocks in Hong Kong trading soared between 10% and 60%, and tech stocks jumped between 6% and 20%.
In New York trading, Alibaba Group advanced 2.6% to $115.63, JD.com gained 8.6% to $46.65, Baidu increased 5.8% to $116.45, and PDD Holdings jumped 5.3% to $153.06.
Tesla declined 4.4% to $246.85 after the electric vehicle maker reported slightly less-than-expected deliveries in the third quarter.
The electric vehicle maker delivered 462,890 vehicles, higher than 435,059 in the quarter a year ago and 443,956 in the previous quarter.
Tesla is facing growing competition from Chinese automakers, and electric vehicle industry sales in China surged more than 43% from a year ago to 1.03 million in September.
Li Auto, BYD, and NIO reported record monthly sales in China in September.
Eli Lilly increased 0.8% to $885.78, and the pharmaceutical company is planning to invest as much as $4.5 billion in research and manufacturing facilities in Indiana.
The new facility will hire about 400 staff, when fully operational, of scientists, researchers, engineers, and clinical personnel.
The company's latest investment plan is in addition to its previously announced $5.3 billion plan in May to manufacture active ingredients for its diabetes and weight loss drugs.
- Barry Adams
- 02 Oct, 2024
- New York City
Stock market indexes were under pressure amid rising tensions in the Middle East compounded by the uncertainty about the port workers strike.
The S&P 500 index decreased 0.3% and the Nasdaq Composite declined 0.4% in Wednesday's trading, as fears rose about the prospect of a wider war in the Middle East.
Iran said it completed its ballistic missile attack on Israel in retaliation of death of its political advisors to Hezbollah.
Israel president Benjamin Netanyahu vowed to provide a "painful response" to Iran's missile attacks, which were thwarted with the help of the U.S. military installations in Jordan and Saudi Arabia.
Israel also launched its ground offensive in southern Lebanon, targeting military hardware controlled by the Iran-backed Hezbollah.
Investors are on edge as tensions escalate between Iran and Israel, which could possibly pull the U.S. in yet another war, while the U.S.-led NATO is enmeshed in challenging Russia's invasion of Ukraine.
In addition, supply chain worries also dominated market sentiment after International Longshoremen's members launched a historic strike at key 14 ports on the East and Gulf Coasts.
If the strike drags on longer than a week, retailers and businesses could face shortages and customers could experience higher prices.
On the economic front, private payrolls rose 143,000 in September, higher than the revised increase of 103,000 in August, according to the monthly report by ADP.
U.S. Indexes and Treasury Yields
The S&P 500 index decreased 0.3% to 5,687.86, the Nasdaq Composite fell 0.2% to 17,867.55, and the Russell 2000 index fell 1.5% to 2,197.03.
The yield on 2-year Treasury notes edged higher to 3.65%, 10-year Treasury notes inched up to 3.79%, and 30-year Treasury bonds inched higher to 4.14%.
WTI crude oil increased $2.07 to $71.87 a barrel, and natural gas prices edged up 8 cents to $2.98 a thermal unit.
Gold fell by $9.77 to $2,650.97 an ounce, and silver increased by $0.31 to $31.66.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 101.43.
U.S. Stock Movers
Nike Inc. declined 7.4% to $82.57, and the athletic footwear company reported better-than-expected revenue in its latest quarter.
Revenue in the fiscal first quarter ending in August declined 10% to $11.6 billion from $12.9 billion, net income plunged 28% to $1.05 billion from $1.45 billion, and diluted earnings per share fell to 70 cents from 94 cents a year ago.
The athletic footwear and apparel maker said inventories at the end of the quarter fell 5% to $8.3 billion, reflecting product mix shifts and lower input costs.
In the fiscal first quarter, the company returned to shareholders about $1.8 billion, including $558 million of dividends and $1.2 billion of stock repurchases.
The company also withdrew its annual outlook and postponed its investor day as the new chief executive prepares to take charge.
China-linked stocks advanced for the sixth session in a row following the stimulus rally turned into a frenzy in Hong Kong.
The Hang Seng index soared 6% and extended its six-day rally to a whopping 25%, ahead of the widely anticipated fiscal measures following monetary stimulus and the relaxing of curbs on residential property transactions.
Property stocks in Hong Kong trading soared between 10% and 60%, and tech stocks jumped between 6% and 20%.
In New York trading, Alibaba Group advanced 2.6% to $115.63, JD.com gained 8.6% to $46.65, Baidu increased 5.8% to $116.45, and PDD Holdings jumped 5.3% to $153.06.
Tesla declined 4.4% to $246.85 after the electric vehicle maker reported slightly less-than-expected deliveries in the third quarter.
The electric vehicle maker delivered 462,890 vehicles, higher than 435,059 in the quarter a year ago and 443,956 in the previous quarter.
Tesla is facing growing competition from Chinese automakers, and electric vehicle industry sales in China surged more than 43% from a year ago to 1.03 million in September.
Li Auto, BYD, and NIO reported record monthly sales in China in September.
Eli Lilly increased 0.8% to $885.78, and the pharmaceutical company is planning to invest as much as $4.5 billion in research and manufacturing facilities in Indiana.
The new facility will hire about 400 staff, when fully operational, of scientists, researchers, engineers, and clinical personnel.
The company's latest investment plan is in addition to its previously announced $5.3 billion plan in May to manufacture active ingredients for its diabetes and weight loss drugs.
- Inga Muller
- 02 Oct, 2024
- Frankfurt
European market indexes wavered amid rising fears of a wider war in the Middle East, which could potentially disrupt international trade in crude oil and manufactured goods.
The jobless rate in the Euro Area held steady at a record low in August.
The DAX index decreased by 0.4% to 19,140.96; the CAC-40 index rose by 0.1% to 7,580.34; and the FTSE 100 index rose by 0.2% to 8,292.31.
The yield on 10-year German bonds edged higher to 2.08%, French bonds inched higher to 2.86%, the UK gilts edged up to 4.02%, and Italian bonds increased to 3.42%.
Energy stocks advanced in London following the rise in crude oil prices for the second week in a row amid rising tensions in the Middle East.
Separately, American Petroleum Institute data showed that the U.S. crude oil inventories declined by 1.5 million barrels last week, the second weekly decline in a row.
BP plc increased 2.4% to 410.60 pence, Shell PLC jumped 2.3% to 2,536.50 pence, and TotalEnergies SE advanced 2.7% to €60.91.
TotalEnergies announced an investment of $10.5 billion in the GranMorgu offshore oil exploration block in the Republic of Suriname.
GEA Group AG increased 2.4% to €45.08, and the German technology and system provider for the food processing industry said it achieved its mid-term financial goals two years ahead of schedule.
Wizz Air Holdings dropped 6% to 1,285.0 pence in London trading after discount airline operator said load factor in September dropped.
JD Sports Fashion PLC dropped 5.3% to 141.70 pence despite the retailer reporting record sales in 26 weeks to August and reiterating its annual outlook.