U.S. Movers: China-linked ADRs, Micron Technology, Southwest Airlines

Micron Technology soared 17% to $111.87 after the advanced semiconductor company reported better-than-expected quarterly results.

The company also estimated higher revenue and earnings in the current quarter. 

Southwest Airlines Company increased 9.8% to $31.26 after the regional airline announced its stock buyback plan of $2.5 billion. 

The company also said its third quarter revenue is expected to rise as much as 3% compared to its previous estimate of a decline of 2%. 

The company also announced a host of other changes to its business model and named Bob Fornaro, who previously led Spirit Airlines, to its board of directors. 

China-linked stocks soared for the third day in a row after China's politburo announced their commitment to revive economic growth to 5%. 

JD.com, Alibaba Group, Tencent Holdings, and Baidu jumped between 5% and 9%. 

S&P 500 Climbs to New Record High After Latest Economic Updates

Stocks rebounded on Wall Street following better-than-expected economic data, and investors increased risk exposure. 

The S&P 500 index traded at a new intraday high, and the Nasdaq Composite approached its record high reached in July. 

Market sentiment improved after the latest weekly jobless claims, durable goods orders, and GDP growth revisions met investor expectations. 

Initial weekly jobless claims decreased 4,000 to 218,000 at the end of the last week, the U.S. Department of Labor reported Thursday. 

Jobless claims dropped to a 4-month low, and continuing claims rose 13,000 to 1.834 million in the previous week.

Despite the recent decline in jobless claims, labor market conditions have softened from a year ago and earlier months in the year as employers avoid adding new staff. 

Investors are now awaiting the release of monthly nonfarm payroll data, which could provide additional insights into the current conditions of the labor market. 

U.S. Q2 GDP Growth Confirmed at 3.0% 

The second quarter GDP growth estimate was unrevised at 3.0% in the third estimate and higher than the 1.6% increase in the first quarter, the Bureau of Economic Analysis reported Thursday. 

The GDP update primarily reflected upward revisions to private inventory investment (8.3% from 7.5%) and federal government spending (4.3% from 3.3%) that were offset by downward revisions to nonresidential fixed investment (3.9% from 4.6%) and exports (1% from 1.6%). 

Imports, which are a subtraction in the calculation of GDP, were revised. 

The government agency also revised its GDP growth estimate in the first quarter to 1.6% from the previous estimate of 1.4%, primarily reflecting an upward revision to consumer spending that was partly offset by downward revisions to private inventory investment and residential fixed investment.

Durable Goods Orders Unchanged In August 

In other economic news, new orders for manufactured durable goods were nearly unchanged from the previous month in August, the U.S. Census Bureau reported Thursday. 

New order growth slowed sharply from the 9.8% surge in July, which was the highest rate of growth in four years. 

The better-than-expected orders contrasted with the growing pessimism about manufacturing sector activities, suggesting that the current slowdown may be temporary. 

New orders excluding transportation increased 0.5%, and excluding volatile defense goods eased 0.2%. 

On an annual basis, new orders for durable goods declined 1.3%. 

Non-defense capital goods orders declined 1.3% from the previous month in August, and excluding volatile aircraft orders rose 0.2%. 

From the previous year, non-defense capital goods orders dropped  6.5%, and excluding aircraft rose 0.3%. 

U.S. Indexes and Treasury Yields

The S&P 500 index increased 0.5% to 5,748.64, the Nasdaq Composite rose 0.8% to 18,209.77, and the Russell 2000 index rose 1.1% to 2,219.61. 

The yield on 2-year Treasury notes edged higher to 3.59%, 10-year Treasury notes inched up to 3.77%, and 30-year Treasury bonds inched higher to 4.12%.

WTI crude oil increased $2.55 to $67.13 a barrel, and natural gas prices edged down 1 cent to $2.80 a thermal unit.

Gold rose by $8.15 to $2,664.11 an ounce, and silver increased by $0.20 to $32.02.

The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 100.77.

U.S. Stock Movers

Micron Technology soared 17% to $111.87 after the advanced semiconductor company reported better-than-expected quarterly results.

The company also estimated higher revenue and earnings in the current quarter. 

Southwest Airlines Company increased 9.8% to $31.26 after the regional airline announced its stock buyback plan of $2.5 billion. 

The company also said its third quarter revenue is expected to rise as much as 3% compared to its previous estimate of a decline of 2%. 

The company also announced a host of other changes to its business model and named Bob Fornaro, who previously led Spirit Airlines, to its board of directors. 

China-linked stocks soared for the third day in a row after China's politburo announced their commitment to revive economic growth to 5%. 

JD.com, Alibaba Group, Tencent Holdings, and Baidu jumped between 5% and 9%. 

Europe Movers: BASF, Commerzbank, H&M, PUMA, SMA Solar

The rise in global tech stocks and the expectations of additional stimulus measures in China supported the market advance.

The Swiss National Bank lowered its lending rate for the third time in a row and said additional cuts are likely. 

The overall lending growth to households and non-financial corporations in the eurozone accelerated in August. 

The DAX index increased by 1.1% to 19,129.17; the CAC-40 index rose by 1.5% to 7,677.44; and the FTSE 100 index rose by 0.2% to 8,285.97. 

The yield on 10-year German bonds edged lower to 2.14%, French bonds inched lower to 2.94%, the UK gilts edged up to 3.99%, and Italian bonds decreased to 3.45%.

H&M Mennes & Mauritz AB dropped 4.5% to SEK 174.10 after the Swedish apparel retailer reported weaker-than-expected fiscal third quarter results. 

China-linked companies in Europe advanced after Chinese leaders pledged additional support to meet the annual economic growth target rate of 5%. 

Vehicle makers, luxury goods purveyors, and mining companies advanced for the third session in a row. 

Antofagasta gained 5.7% to 2,030.0 pence, Anglo American jumped 5.9% to 2,434.0 pence, and Glencore increased 4.8% to 422.75 pence. 

LVMH soared 7.4% to €663.50, Hermes International SCA added 7.2% to €2,178.0, Kering SA advanced 8.2% to €247.80, Richemont SA jumped 5.6% to CHF 129.40, Moncler SpA increased 6.6% to €52.08, and Prada gained 2.4% to €6.18. 

Puma SE increased 4.3% to €38.45 after the athletic footwear maker appointed Markus Neubrand as the company's chief financial officer and a board member. 

Commerzbank AG increased 5.3% to €16.17 after the German lender estimated higher profit and return on equity by 2027.

BASF SE decreased 2.2% to €44.33 after the German chemical company announced its plans to lower its fiscal year 2024 dividend to at least €2.25 per share, payable in 2025. 

The revised dividend is a decrease from the €3.40 per share dividend paid in 2023. 

The German chemical company plans to distribute €12 billion between 2025 and 2028, including 8 billion of stock buybacks and €2 billion of dividend payments, the company said in a statement. 

The company also estimated cumulative dividends to exceed €12 billion in the period between 2025 and 2028 and return on capital to reach 10% by 2028.

SMA Solar Technology AG increased 2.2% to €17.48 after the German company announced a companywide restructuring to increase efficiency, sharpen strategic focus, and lower operating costs. 

European Indexes Jump 1% Tracking Higher Global Markets

European markets advanced following the rise in global markets after China announced strong monetary stimulus. 

Benchmark indexes in Paris, London, and Frankfurt jumped as much as 1.5% after China's Politburo pledged to provide additional stimulus to meet an economic growth target of 5% in the current year. 

Chinese authorities are considering injecting as much as one trillion yuan in the state-controlled banks, the largest injection since 2008. 

In addition, Chinese authorities are considering providing direct cash assistance to as many as 25% of the population, which could increase consumption of basic items. 

Global tech stocks advanced after Micron Technology estimated higher sales and earnings, providing another upward push to semiconductor-related stocks in Europe, Japan, and South Korea. 

Closer to home, the Swiss National Bank lowered its policy rate by 25 basis points to 1.0%, a third consecutive decrease in rates, and the cost of borrowing dropped to the lowest since early 2023. 

The central bank noted that policymakers are prepared to lower rates in the coming quarters, if necessary, citing a weakening inflation outlook. 

The Swiss National Bank lowered its inflation outlook to 1.2% from 1.3% in 2024, 0.6% from 1.1% in 2025, and 0.7% from 1.0% in 2026. 

The central bank left its gross domestic product growth estimate at around 1% in 2024 and 1.5% in 2025. 

Bank lending to households increased 0.6% to Є6.891 trillion in August, accelerating from 0.5% in the previous month, the European Central Bank reported Tuesday. 

The increase in lending to households was the fastest since October 2023, amid a slight pick up in consumer demand. 

Meanwhile, lending to corporations increased by 0.8% to Є5.133 trillion, a faster increase than in July. 

Overall lending to the private sector, including households and non-financial corporations, increased by 1.6% from 1.3% in the previous month. 

Europe Indexes and Yields

The DAX index increased by 1.1% to 19,129.17; the CAC-40 index rose by 1.5% to 7,677.44; and the FTSE 100 index rose by 0.2% to 8,285.97. 

The yield on 10-year German bonds edged lower to 2.14%, French bonds inched lower to 2.94%, the UK gilts edged up to 3.99%, and Italian bonds decreased to 3.45%.

The euro edged lower to $1.11; the British pound inched higher to $1.33; and the U.S. dollar weakened to 84.72 Swiss cents.

Brent crude decreased $1.82 to $71.63 a barrel, and the Dutch TTF natural gas fell by €0.65 to €36.91 per MWh. 

Europe Stock Movers

H&M Mennes & Mauritz AB dropped 4.5% to SEK 174.10 after the Swedish apparel retailer reported weaker-than-expected fiscal third quarter results. 

China-linked companies in Europe advanced after Chinese leaders pledged additional support to meet the annual economic growth target rate of 5%. 

Vehicle makers, luxury goods purveyors, and mining companies advanced for the third session in a row. 

Antofagasta gained 5.7% to 2,030.0 pence, Anglo American jumped 5.9% to 2,434.0 pence, and Glencore increased 4.8% to 422.75 pence. 

LVMH soared 7.4% to €663.50, Hermes International SCA added 7.2% to €2,178.0, Kering SA advanced 8.2% to €247.80, Richemont SA jumped 5.6% to CHF 129.40, Moncler SpA increased 6.6% to €52.08, and Prada gained 2.4% to €6.18. 

Puma SE increased 4.3% to €38.45 after the athletic footwear maker appointed Markus Neubrand as the company's chief financial officer and a board member. 

Commerzbank AG increased 5.3% to €16.17 after the German lender estimated higher profit and return on equity by 2027.

BASF SE decreased 2.2% to €44.33 after the German chemical company announced its plans to lower its fiscal year 2024 dividend to at least €2.25 per share, payable in 2025. 

The revised dividend is a decrease from the €3.40 per share dividend paid in 2023. 

The German chemical company plans to distribute €12 billion between 2025 and 2028, including €8 billion of stock buybacks and €2 billion of dividend payments, the company said in a statement. 

The company also estimated cumulative dividends to exceed €12 billion in the period between 2025 and 2028 and return on capital to reach 10% by 2028.

SMA Solar Technology AG increased 2.2% to €17.48 after the German company announced a companywide restructuring to increase efficiency, sharpen strategic focus, and lower operating costs. 

Rally In Semiconductor Stocks Powered 2.5% Surge In Japan Indexes

Stock market indexes in Tokyo traded at three-week highs following a rebound in semiconductor and related stocks. 

The Nikkei 225 stock average and the Topix index jumped more than 2.5% after Micron Technology reported better-than-expected quarterly results after the close of the regular trading session in New York. 

Investors also reviewed the latest policy meeting minutes, and several policymakers cautioned against creating excessive expectations about future rate hikes and called for sharper focus on upward inflation risks. 

The yen traded in a tight range and edged up 0.04% to 144.77 after the Bank of Japan's policy meeting minutes showed the committee prefers a gradual approach to increasing interest rates in the future. 

The surge in semiconductor stocks also boosted market indexes in South Korea, and the KOSPI index advanced 2.6%. 

In other Asian markets, benchmark indexes in India crossed another record high and extended a string of highs to close to 60 in 2024, amid positive market sentiment and earnings optimism. 

Benchmark indexes in mainland China and Hong Kong extended their three-day tally to over 7% as investors stepped up to buy riskier stocks in the hopes of additional market-supportive measures following the announcement of wide-ranging monetary stimulus measures. 

Japan Stock Movers 

The Nikkei 225 Stock Average jumped 2.8% to 38,925.63, and the broader Topix index advanced 2.6% to 2,721.12. 

Tech stocks led the surge in Tokyo trading in the hopes of improving business after Micron Technology reported better-than-expected quarterly results. 

Tokyo Electron jumped 8% to ¥25,760.0, Advantest soared 5.4% to ¥6,900.0, Screen Holdings gained 5.9% to ¥10,410.0, and Lasertec added 0.1% to ¥24,250.0. 

Banks also participated in the market surge after the latest policy meeting minutes suggested that the central bank is looking to raise rates in gradual steps and not in sharp increments.

Mitsubishi UFJ Financial advanced 2.5% to ¥1,481.50, Sumitomo Mitsui added 3.2% to ¥9,174.0, and Mizuho Financial Group gained 2.7% to ¥2,894.50. 

Retail stocks traded higher amid market rally and stable yen. 

Seven & I Holdings increased 2.1% to ¥2,206.50, Aeon Co. Ltd. gained 1.6% to ¥2,206.50, Fast Retailing advanced 1.7% to ¥47,900.0, and Isetan Mitsukoshi jumped 7.6% to ¥2,326.0. 

China's Indexes Extended Stimulus Rally to Third Day Amid Hopes of Additional Measures

Benchmark indexes in mainland China and Hong Kong extended gains for the third consecutive day after Beijing rolled out stimulus measures. 

The Hang Seng index jumped 2.7% and the CSI 300 index advanced 2.3%, and the benchmark indexes extended three-day gains to over 7%. 

The wide-ranging stimulus measures revived market confidence in Beijing's leadership in the hopes that the regulators and policymakers are finally serious about reviving economic growth and tackling multi-year property market malaise. 

Investors stepped up to buy tech- and consumer-focused stocks amid expectations that the Politburo is likely to approve injecting as much as one trillion yuan into state-controlled banks. 

Despite the wide-ranging monetary policy measures released by the People's Bank of China, caution prevailed in stock trading amid worries of weak consumer sentiment and persistent weakness in the residential property market. 

China Stock Movers 

The Hang Seng index soared 2.7% to 19,641.05, and the mainland-focused CSI 300 index jumped 2.3% to 3,478.54. 

Tech stocks led gainers in Hong Kong after investors stepped up to increase exposure to high-growth and riskier stocks. 

Tencent Holdings jumped 4% to $421.60, Alibaba Group advanced 6.5% to HK $97.25, and JD.com soared 8.2% to HK $136.10. 

China Vanke added 13.4% to HK $5.34, China Resources Land added 11.9% to HK $24.45, and Longfor Group jumped 10.2% to HK $10.34. 

New World Development was halted at HK$8.19, and the company's chief executive, Adrian Cheng, is set to step down ahead of the company's releasing its annual financial results later in the day. 

The residential property developer is expected to announce losses totaling as much as HK $20 billion or $2.5 billion, reflecting a sharp decline in property valuations. 

Hong Kong-based property developers were in focus after New World Development news. 

CK Asset Holdings dropped as much as 1.5% to HK $32.35 before recovering to trade higher by 0.2% to HK $32.80. 

Sun Hung Kai Properties edged up 0.2% to HK $82.95 and rebounded from earlier losses of as much as 1.3%. 

India Movers: Bank of India, Coromandel Intnl, HDFC Bank, KRP Mill, Piramal Pharma, Reliance Power, Spiecejet, Shriram Finance, Vedanta

Benchmark indexes in Mumbai crossed another record high amid positive market sentiment driven by improving macroeconomic outlook and earnings optimism.

The Sensex index increased by 0.3% to 85,390.20, and the Nifty index rose by 0.2% to 26,060.40.

On the Mumbai stock exchange, 137 stocks traded at their 52-week highs, and 22 stocks traded at their 52-week lows.

The yield on the 10-year Indian government bonds inched lower to 6.74%, and the Indian rupee strengthened to 83.68 against the U.S. dollar.

Vedanta Limited declined 1% to ₹479.35, and the company's board is scheduled to meet on October 8 to discuss a potential fourth interim dividend. 

The mineral resource company has declared a total dividend of ₹13,474 crore in the current fiscal year, despite the company's lackluster quarterly results. 

The mining company is also looking to repay its international debt by $3 billion over the next three years. 

Piramal Pharma increased 1.5% to ₹229.90, and the company's chairman, Nadini Piramal, said that the company is targeting an annual sale of $2 billion by the end of 2030 amid rising demand for its contract development and manufacturing services. 

HDFC Bank decreased 0.3% to ₹1,773.80, and UBS Group acquired 30.72 lakh shares at an average price per share of ₹1,768.08, totaling ₹543 crore. 

Spicejet advanced 1.2% to ₹63.14, and the company's chairman, Ajay Singh, said the company is planning to increase its aircraft fleet to 100 by 2026 following the ₹3,000 crore secondary offering.

Coromandel International declined 1.3% to ₹1,622.70, and the company increased its stake in the Senegal-based rock phosphate company. 

The company increased its stake to 53.8% by acquiring an additional stake of 8.82% for $3.84 million in Baobab Mining and Chemicals Corporation. 

Shriram Finance increased 0.4% to ₹3,538.95, and the company completed its $500 million bond offering with a fixed rate of 6.15%. 

Reliance Power surged 4% to ₹44.15, and the company's subsidiary, Rosa Power, repaid ₹850 crore of debt to Varde Partners. 

The company said it plans to be debt-free by the end of the current financial year. 

KPR Mill Ltd. decreased 1.8% to ₹988.65, and the Coimbatore-based textile mill operator's promoter KP Ramaswamy sold 3.1% stake in the company for ₹971.4 crore at an average price of ₹925.12 per share. 

After the transaction, SBI Mutual Fund increased its stake in the company to 7.74%. 

Bank of India decreased 0.3% to ₹110.14, and the company said it raised ₹2,500 crore through the sale of tier II bonds paying an interest rate of 7.49%. 

U.S. New Single-family House Sales Dropped In August

The sale of single-family houses in August declined 4.7% from the previous month to a seasonally adjusted annual rate of 716,000, the U.S. Census Bureau and the Department of Housing and Urban Development reported Wednesday. 

The single-family house sale declined from July's revised rate of 751,000 but is 9.8% higher than the estimate of 652,00 in August of last year. 

The new home supply decreased by 1.3% from a year ago and rose by 6.8% from the previous month to 7.8 months of supply at the current sales rate. 

The median sales price of new houses sold in August 2024 was $420,600, and the average price was $492,700. 

Single-family house sales in August declined from the previous month, driven by the decline in the West, Northeast, and Midwest but an increase in the South. 

Home sales in the Northeast decreased 27.3% to 24,000, in the Midwest declined 5.8% to 81,000, in the West fell 17.8% to 152,000, but in the South rose 2.7% to 459,000. 

The sale of single-family houses in August declined 4.7% from the previous month to a seasonally adjusted annual rate of 716,000. the U.S. Census Bureau and the Department of Housing and Urban Development reported Wednesday. 

The single-family house sale declined from the July's revised rate of 751,000, but is 9.8% higher than the estimate of 652,00 in August of last year. 

The new home month of supply decreased by 1.3% from a year ago and rose by 6.8% form the previous month to a supply of 7.8 months at the current sales rate.  

The median sales price of new houses sold in August 2024 was $420,600, and the average price was $492,700. 

 

Wall Street Indexes Wavered Near Record Highs, Global Markets Retained Upward Bias

Stock market indexes on Wall Street traded around the flatline as investors reassessed the economic outlook and future rate path. 

The S&P 500 index and the Nasdaq Composite advanced a fraction, and the yields on Treasury notes edged slightly lower as investors debated labor market conditions and economic growth outlook. 

Benchmark indexes are set to close higher in September, and the Dow Jones Industrial Average and the S&P 500 index traded near record highs reached in the previous session. 

The Nasdaq Composite is down about 4% from its record high, as the two-month rally in artificial intelligence-linked stocks and mega-cap stocks came to an abrupt halt in August. 

Investors cheered the Fed's latest move to lower its policy rate by 50 basis points, surprising many economists, as the central bank attempted to engineer a so-called soft landing and avoid a recession. 

However, despite the Fed's move to lower its interest rate range, inflation is well-anchored in the economy, and service sector inflation is well above the Fed's target rate of 2%. 

Moreover, elevated housing inflation continues to keep core inflation near 3%. 

U.S. New Single-family House Sales Dropped In August 

The sale of single-family houses in August declined 4.7% from the previous month to a seasonally adjusted annual rate of 716,000, the U.S. Census Bureau and the Department of Housing and Urban Development reported Wednesday. 

The single-family house sale declined from July's revised rate of 751,000 but is 9.8% higher than the estimate of 652,00 in August of last year. 

The new home supply decreased by 1.3% from a year ago and rose by 6.8% from the previous month to 7.8 months of supply at the current sales rate. 

The median sales price of new houses sold in August 2024 was $420,600, and the average price was $492,700. 

U.S. Indexes and Treasury Yields

The S&P 500 index decreased 0.1% to 5,726.83, the Nasdaq Composite rose 0.1% to 18,083.80, and the Russell 2000 index fell 0.5% to 2,214.05. 

The yield on 2-year Treasury notes edged lower to 3.54%, 10-year Treasury notes inched up to 3.76%, and 30-year Treasury bonds inched higher to 4.12%.

WTI crude oil increased $1.39 to $70.16 a barrel, and natural gas prices edged up 7 cents to $2.62 a thermal unit.

Gold fell by $0.05 to $2,658.20 an ounce, and silver decreased by $0.25 to $31.87.

The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 100.31.

U.S. Stock Movers

SAP SE declined 2.5% to $225.27 after the German software company's chief financial officer confirmed in an interview with CNBC that the company is being investigated by the U.S. Department of Justice for alleged price-fixing practices. 

KB Home declined 3.9% to $83.99 after the home builder reported weaker-than-expected results in its latest quarter. 

Progress Software surged 12% to $64.01 after the insurance company reported better-than-expected adjusted earnings and revenue in the fiscal third quarter. 

Bank of America Corp. declined 0.5% to $39.27, and Warren Buffett-controlled Berkshire Hathaway continued to reduce its holding in the bank. 

Berkshire Hathaway has now sold $9 billion of Bank of America's stock and lowered its holding to 10.5%. 

China-linked ADRs were in focus for the second day in a row after the People's Bank of China announced additional measures to support economic expansion. 

The central bank lowered its one-year loan prime rate, used for loans to financial institutions, by 30 basis points to 2.0%. 

JD.com decreased 3.5% to $32.70, Tencent Holdings dropped 1.6% to $52.60, and Alibaba Group declined 2.2% to $95.05. 

Artificial intelligence-linked stocks advanced amid growing speculation that the demand is running ahead of the supply. 

Nvidia increased 2.2% to $123.41, Qualcomm edged up 0.1% to $167.30, AMD added 0.8% to $159.56, and Micron Technology edged higher 0.9% to $94.84. 

European Markets Turned Down, Sweden Lowered Rates and Spain's Producer Price Deflation Decelerated 

European stock market indexes hovered near recent highs as investors reviewed the latest policy decisions from Sweden and China. 

Benchmark indexes in Paris, London, and Frankfurt traded around the flatline amid improving sentiment for the global economic outlook, but elevated tensions in the Middle East kept investors on edge. 

Crude oil traded near a two-week high after fears of a wider war in the Middle East rose after Israel bombed more territories controlled by Hezbollah in southern Lebanon. 

The latest Israel's bombing campaign has killed more than 500 people, including 35 children, and about 10,00 people have been displaced, and President Benjamin Netanyahu said that the current campaign is necessary to "restore the security balance."

On the economic front, Sweden's Riksbank lowered its benchmark rate by 25 basis points to 3.25% after the policy meeting today. 

The Riksbank lowered the rates after the policy meeting today and signaled additional rate cuts of at least 50 basis points over the next two policy meetings if the outlook for inflation and economic growth remains unchanged. 

The central bank lowered the rate by 25 basis points after the policy meeting in May and August. 

Spain's producer price deflation extended to the 18th month in a row to August, but prices fell at the slowest pace over the period. 

The annual producer price index decreased 1.3% in August following the revised 1.6% fall in the previous month.  

Vehicle and luxury goods makers were in focus for the second day in a row after the People's Bank of China lowered its 1-year loan prime rate by 30 basis points to 2.0% after holding it steady only days ago. 

The latest move follows a string of broad range of monetary policy decisions announced by the central bank on Tuesday to revive economic growth, increase investor confidence, and facilitate more property transactions. 

Europe Indexes and Yields

The DAX index decreased by 0.4% to 18,923.10; the CAC-40 index fell by 0.5% to 7,565.62; and the FTSE 100 index fell by 0.2% to 8,268.70. 

The yield on 10-year German bonds edged higher to 2.17%, French bonds inched lower to 2.92%, the UK gilts edged up to 3.97%, and Italian bonds decreased to 3.50%.

The euro edged lower to $1.11; the British pound inched higher to $1.33; and the U.S. dollar weakened to 84.88 Swiss cents.

Brent crude decreased $1.16 to $74.06 a barrel, and the Dutch TTF natural gas fell by €1.10 to €37.41 per MWh. 

Europe Stock Movers

Rightmove Plc dropped 1.3% to 674.0 pence, and the online property platform's board unanimously rejected the revised takeover offer from Australia's REA Group and said the offer "materially undervalues" the company. 

Valmet Oyj soared 10.3% to €27.87, and the Finnish pulp and paper production automation company won an order worth more than one billion euros in Brazil. 

UniCredit SpA jumped 1.9% to €37.99, and the Italian bank said it has initiated internalizing its life insurance business and terminated its partnership with Allianz S.p.A. and CNP Assurances SA. 

Orange SA decreased 0.1% to €10.69, and the French mobile telephone company said it has voluntarily decided to terminate its listing on the New York Stock Exchange. 

SAP SE declined 2.3% to €201.40 after the German software company's chef financial officer confirmed in an interview with CNBC that the company is investigated by the U.S. Justice Department for alleged price-fixing practices. 

Luxury stocks advanced for the second day in a row after China announced more monetary stimulus measures. 

LVMH increased 0.3% to €616.10, Hermes International SCA gained 1.3% to €2,038.0, and Kering SA added 0.8% to €230.75. 

Japan Stock Indexes Halt a 4-Day Rally, Yen Slides Ahead of BoJ Minutes and Tokyo Inflation Data 

Stock market indexes turned lower near the close of the trading after indexes spent most of the session in the positive territory and halted a 4-day winning streak. 

The Nikkei 225 stock average and the Topix index eased 0.2% and erased gains of as much as 0.3%.

The Japanese yen weakened to 143.44 against the dollar after Bank of Japan Governor Kazuo Ueda said on Tuesday that policymakers need time to assess economic developments. 

The comments were widely interpreted as the central bank is in no rush to hike rates, and investors shifted their attention to the release of minutes of policy meetings on Thursday and Tokyo-area inflation data on Friday. 

In other news in Asia, the People's Bank of China lowered its one-year loan prime rate by 30 basis points to 2.0%, just a day after announcing a list of stimulus measures to revive economic growth and lift market sentiment. 

Benchmark indexes in Shanghai and Hong Kong advanced as much as 2.5% before erasing most of the gains by the end of the session. 

Market indexes in India and Australia hovered near record highs, and in South Korea they closed down 1%. 

Japan Stock Movers 

The Nikkei 225 stock average decreased 0.2% to 37,870.26 and the broader Topix index fell 0.2% to 2,650.50. 

Financial stocks led the decliners in Tokyo amid a weakness in banks, insurance companies, and financial services providers. 

Mitsubishi UFJ Financial declined 2.5% to ¥1,444.50, Sumitomo Mitsui Financial dropped 2.8% to ¥8,882.0, MS&AD dropped 2.9% to ¥3,298.0, and Nomura Holdings declined 2.5% to ¥773.0. 

General wholesale trading companies, also known as Sogo Shosha, closed higher. 

Marubeni Corp added 1.1% to ¥2,366.0, Itochu fell 0.9% to ¥7,689.0, Mitsui & Company advanced 2.4% to ¥3,172.0, and Mitsubishi Corp added 0.9% to ¥2,987.50. 

Nippon Steel Corp. gained 0.8% to ¥3,236.0, and the steelmaker said it plans to pursue the acquisition of U.S. Steel despite the political pushback ahead of the upcoming presidential election in the U.S. 

China Indexes Extend Rally to Second Consecutive Day, PBoC Lowered 1-Year Loan Rates 

Stocks rallied for the second day in a row as investors cheered wide aggressive stimulus measures released by the Bank of China. 

The Hang Seng index rose as much as 2.5% and the CSI 300 index advanced 2.2% after the central bank announced additional steps on Wednesday. 

The People's Bank of China lowered its one-year medium-term lending rate to 2.0% from 2.3%, the rate used to load money to financial institutions. 

The latest move follows a raft of measures released by the central bank on Tuesday, ahead of the week of the National Holiday, to revive the faltering economic growth and moribund property market. 

On Tuesday, the central bank lowered its reserve requirement for commercial banks by 50 basis points, trimmed mortgage loan rates on existing loans to 50 basis points, and lowered the down payment requirement to 15% for the purchase of a second home. 

Moreover, the central bank also set up a fund of one trillion yuan to facilitate the purchase of stocks by institutional investors and revive investor confidence. 

The wide-ranging stimulus measures by the central bank were welcomed by investors, but these measures are likely to fall short without additional fiscal measures amid weak consumer demand. 

For now, investors lapped up stocks of real estate developers and high-risk tech stocks amid rising confidence that the central government is serious about reviving economic growth and the property market. 

China Movers 

The Hang Seng index increased 1.1% to 19,211.15, and the mainland-focused CSI 300 index advanced 1.5% to 3,400.47. 

Tech stocks and property developers extended their rally for the second day in a row. 

JD.com advanced 1.9% to HK $127.0, Alibaba Group rose 0.2% to HK $92.15, Baidu.com increased 1% to HK $89.80.

China Vanke added 1.9% to HK $4.77, China Resource Land decreased 1.5% to HK $22.05, and Longfor Group added 0.7% to $9.31. 

CATL increased 2.2% to ¥203.30, Kweichow Moutai advanced 2.1% to ¥1,401.90, and AIA Group added 2.2% to HK $60.95. 

U.S. Movers: Bank of America, China ADRs, KB Home, Progress Software, SAP

SAP SE declined 2.5% to $225.27 after the German software company's chief financial officer confirmed in an interview with CNBC that the company is being investigated by the U.S. Department of Justice for alleged price-fixing practices. 

KB Home declined 3.9% to $83.99 after the home builder reported weaker-than-expected results in its latest quarter. 

Progress Software surged 12% to $64.01 after the insurance company reported better-than-expected adjusted earnings and revenue in the fiscal third quarter. 

Bank of America Corp. declined 0.5% to $39.27, and Warren Buffett-controlled Berkshire Hathaway continued to reduce its holding in the bank. 

Berkshire Hathaway has now sold $9 billion of Bank of America's stock and lowered its holding to 10.5%. 

China-linked ADRs were in focus for the second day in a row after the People's Bank of China announced additional measures to support economic expansion. 

The central bank lowered its one-year loan prime rate, used for loans to financial institutions, by 30 basis points to 2.0%. 

JD.com decreased 3.5% to $32.70, Tencent Holdings dropped 1.6% to $52.60, and Alibaba Group declined 2.2% to $95.05. 

Artificial intelligence-linked stocks advanced amid growing speculation that the demand is running ahead of the supply. 

Nvidia increased 2.2% to $123.41, Qualcomm edged up 0.1% to $167.30, AMD added 0.8% to $159.56, and Micron Technology edged higher 0.9% to $94.84. 

S&P 500 and Dow Jones Trades Around Record Highs, Nasdaq Composite Approaches Record Reached In July

Stock market indexes on Wall Street traded around the flatline as investors reassessed the Fed's supersized rate cut last week. 

The S&P 500 index and the Nasdaq Composite advanced a fraction, and the yields on Treasury notes edged slightly lower as investors debated labor market conditions and economic growth outlook. 

Benchmark indexes are set to close higher in September, and the Dow Jones Industrial Average and the S&P 500 index traded near record highs reached in the previous session. 

The Nasdaq Composite is down about 4% from its record high, as the two-month rally in artificial intelligence-linked stocks and mega-cap stocks came to an abrupt halt in August. 

Investors cheered the Fed's latest move to lower its policy rate by 50 basis points, surprising many economists, as the central bank attempted to engineer a so-called soft landing and avoid a recession. 

However, despite the Fed's move to lower its interest rate range, inflation is well-anchored in the economy, and service sector inflation is well above the Fed's target rate of 2%, and housing inflation continues to keep overall inflation at elevated levels. 

U.S. Indexes and Treasury Yields

The S&P 500 index increased 0.1% to 5,736.02, the Nasdaq Composite rose 0.2% to 18,111.79, and the Russell 2000 index fell 0.2% to 2,218.44. 

The yield on 2-year Treasury notes edged lower to 3.54%, 10-year Treasury notes inched up to 3.76%, and 30-year Treasury bonds inched higher to 4.12%.

WTI crude oil increased $0.75 to $70.81 a barrel, and natural gas prices edged up 6 cents to $2.61 a thermal unit.

Gold rose by $6.06 to $2,664.88 an ounce, and silver decreased by $0.26 to $31.89.

The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 100.31.

U.S. Stock Movers

SAP SE declined 2.5% to $225.27 after the German software company's chief financial officer confirmed in an interview with CNBC that the company is being investigated by the U.S. Department of Justice for alleged price-fixing practices. 

KB Home declined 3.9% to $83.99 after the home builder reported weaker-than-expected results in its latest quarter. 

Progress Software surged 12% to $64.01 after the insurance company reported better-than-expected adjusted earnings and revenue in the fiscal third quarter. 

Bank of America Corp. declined 0.5% to $39.27, and Warren Buffett-controlled Berkshire Hathaway continued to reduce its holding in the bank. 

Berkshire Hathaway has now sold $9 billion of Bank of America's stock and lowered its holding to 10.5%. 

China-linked ADRs were in focus for the second day in a row after the People's Bank of China announced additional measures to support economic expansion. 

The central bank lowered its one-year loan prime rate, used for loans to financial institutions, by 30 basis points to 2.0%. 

JD.com decreased 3.5% to $32.70, Tencent Holdings dropped 1.6% to $52.60, and Alibaba Group declined 2.2% to $95.05. 

Artificial intelligence-linked stocks advanced amid growing speculation that the demand is running ahead of the supply. 

Nvidia increased 2.2% to $123.41, Qualcomm edged up 0.1% to $167.30, AMD added 0.8% to $159.56, and Micron Technology edged higher 0.9% to $94.84. 

Europe Movers: Luxury Stocks, Orange, Rightmove, SAP, Unicredit, Valmet

The central bank in Sweden lowered its key lending rate by 25 basis points and held out for more cuts later in the year. 

Spain's producer price deflation extended to the 18th month in a row in August. 

The DAX index decreased by 0.2% to 18,947.99; the CAC-40 index fell by 0.2% to 7,587.11; and the FTSE 100 index rose by 0.3% to 8,307.63. 

The yield on 10-year German bonds edged higher to 2.17%, French bonds inched lower to 2.92%, the UK gilts edged up to 3.97%, and Italian bonds decreased to 3.50%.

Rightmove Plc dropped 1.3% to 674.0 pence, and the online property platform's board unanimously rejected the revised takeover offer from Australia's REA Group and said the offer "materially undervalues" the company. 

Valmet Oyj soared 10.3% to €27.87, and the Finnish pulp and paper production automation company won an order worth more than one billion euros in Brazil. 

UniCredit SpA jumped 1.9% to €37.99, and the Italian bank said it has initiated internalizing its life insurance business and terminated its partnership with Allianz S.p.A. and CNP Assurances SA. 

Orange SA decreased 0.1% to €10.69, and the French mobile telephone company said it has voluntarily decided to terminate its listing on the New York Stock Exchange. 

SAP SE declined 2.3% to €201.40 after a report suggested that the German software company is investigated by the U.S. regulatory authorities for alleged price-fixing practices. 

Luxury stocks advanced for the second day in a row after China announced more monetary stimulus measures. 

LVMH increased 0.3% to €616.10, Hermes International SCA gained 1.3% to €2,038.0, and Kering SA added 0.8% to €230.75. 

European Markets Turned Down, Sweden Lowered Rates and Spain's Producer Price Deflation Decelerated

European stock market indexes hovered near recent highs as investors reviewed the latest policy decisions from Sweden and China. 

Benchmark indexes in Paris, London, and Frankfurt traded around the flatline amid improving sentiment for the global economic outlook, but elevated tensions in the Middle East kept investors on edge. 

Crude oil traded near a two-week high after fears of a wider war in the Middle East rose after Israel bombed more territories controlled by Hezbollah in southern Lebanon. 

The latest Israel's bombing campaign has killed more than 500 people, including 35 children, and about 10,00 people have been displaced, and President Benjamin Netanyahu said that the current campaign is necessary to "restore the security balance."

On the economic front, Sweden's Riksbank lowered its benchmark rate by 25 basis points to 3.25% after the policy meeting today. 

The Riksbank lowered the rates after the policy meeting today and signaled additional rate cuts of at least 50 basis points over the next two policy meetings if the outlook for inflation and economic growth remains unchanged. 

The central bank lowered the rate by 25 basis points after the policy meeting in May and August. 

Spain's producer price deflation extended to the 18th month in a row to August, but prices fell at the slowest pace over the period. 

The annual producer price index decreased 1.3% in August following the revised 1.6% fall in the previous month.  

Vehicle and luxury goods makers were in focus for the second day in a row after the People's Bank of China lowered its 1-year loan prime rate by 30 basis points to 2.0% after holding it steady only days ago. 

The latest move follows a string of broad range of monetary policy decisions announced by the central bank on Tuesday to revive economic growth, increase investor confidence, and facilitate more property transactions. 

Europe Indexes and Yields

The DAX index decreased by 0.2% to 18,947.99; the CAC-40 index fell by 0.2% to 7,587.11; and the FTSE 100 index rose by 0.3% to 8,307.63. 

The yield on 10-year German bonds edged higher to 2.17%, French bonds inched lower to 2.92%, the UK gilts edged up to 3.97%, and Italian bonds decreased to 3.50%.

The euro edged lower to $1.11; the British pound inched higher to $1.33; and the U.S. dollar weakened to 84.88 Swiss cents.

Brent crude decreased $0.86 to $74.29 a barrel, and the Dutch TTF natural gas fell by €0.51 to €36.63 per MWh. 

Europe Stock Movers

Rightmove Plc dropped 1.3% to 674.0 pence, and the online property platform's board unanimously rejected the revised takeover offer from Australia's REA Group and said the offer "materially undervalues" the company. 

Valmet Oyj soared 10.3% to €27.87, and the Finnish pulp and paper production automation company won an order worth more than one billion euros in Brazil. 

UniCredit SpA jumped 1.9% to €37.99, and the Italian bank said it has initiated internalizing its life insurance business and terminated its partnership with Allianz S.p.A. and CNP Assurances SA. 

Orange SA decreased 0.1% to €10.69, and the French mobile telephone company said it has voluntarily decided to terminate its listing on the New York Stock Exchange. 

SAP SE declined 2.3% to €201.40 after the German software company's chef financial officer confirmed in an interview with CNBC that the company is investigated by the U.S. Justice Department for alleged price-fixing practices. 

Luxury stocks advanced for the second day in a row after China announced more monetary stimulus measures. 

LVMH increased 0.3% to €616.10, Hermes International SCA gained 1.3% to €2,038.0, and Kering SA added 0.8% to €230.75. 

Japan Stock Indexes Halt a 4-Day Rally, Yen Slides Ahead of BoJ Minutes and Tokyo Inflation Data

Stock market indexes turned lower near the close of the trading after indexes spent most of the session in the positive territory and halted a 4-day winning streak. 

The Nikkei 225 stock average and the Topix index eased 0.2% and erased gains of as much as 0.3%.

The Japanese yen weakened to 143.44 against the dollar after Bank of Japan Governor Kazuo Ueda said on Tuesday that policymakers need time to assess economic developments. 

The comments were widely interpreted as the central bank is in no rush to hike rates, and investors shifted their attention to the release of minutes of policy meetings on Thursday and Tokyo-area inflation data on Friday. 

In other news in Asia, the People's Bank of China lowered its one-year loan prime rate by 30 basis points to 2.0%, just a day after announcing a list of stimulus measures to revive economic growth and lift market sentiment. 

Benchmark indexes in Shanghai and Hong Kong advanced as much as 2.5% before erasing most of the gains by the end of the session. 

Market indexes in India and Australia hovered near record highs, and in South Korea they closed down 1%. 

Japan Stock Movers 

The Nikkei 225 stock average decreased 0.2% to 37,870.26 and the broader Topix index fell 0.2% to 2,650.50. 

Financial stocks led the decliners in Tokyo amid a weakness in banks, insurance companies, and financial services providers. 

Mitsubishi UFJ Financial declined 2.5% to ¥1,444.50, Sumitomo Mitsui Financial dropped 2.8% to ¥8,882.0, MS&AD dropped 2.9% to ¥3,298.0, and Nomura Holdings declined 2.5% to ¥773.0. 

General wholesale trading companies, also known as Sogo Shosha, closed higher. 

Marubeni Corp added 1.1% to ¥2,366.0, Itochu fell 0.9% to ¥7,689.0, Mitsui & Company advanced 2.4% to ¥3,172.0, and Mitsubishi Corp added 0.9% to ¥2,987.50. 

Nippon Steel Corp. gained 0.8% to ¥3,236.0, and the steelmaker said it plans to pursue the acquisition of U.S. Steel despite the political pushback ahead of the upcoming presidential election in the U.S.