- Li Chen
- 25 Sep, 2024
- Hong Kong
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.
- Arun Goswami
- 25 Sep, 2024
- Mumbai
Stocks in Mumbai struggled to advance amid mixed global cues, and the rupee edged lower following the general weakness in the U.S. dollar.
The Sensex index increased by 0.01% to 84,921.82, and the Nifty index fell by 0.2% to 25,934.65.
On the Mumbai stock exchange, 135 stocks traded at their 52-week highs, and 19 stocks traded at their 52-week lows.
Tata Power Company increased 3.5% to ₹468.75, and the company said its power operations are going to be disrupted at its Trombay Power Plant because of a fire.
The company also confirmed that the Mumba-based power production facilities carry "adequate" insurance to cover potential expenses.
NMDC increased 0.8% to ₹225.80, and the fourth-largest iron ore company in the world said iron ore production and sales in the fiscal year 2024 advanced.
NMDC's annual production increased 10% to record 45 million tons in its latest financial year, the first company to reach that milestone in India, CMD Amitava Mukherjee said at the company's 66th annual general meeting.
Sales in the year also increased 16% to 44.48 million tons.
Revenue in the fiscal year 2024 rose by 21% to 21,294 crores, and after-tax profit increased by 2% to 5,632 crores, driven by an increase of 28% in operating earnings.
BGR Energy Systems declined 2% to ₹50.34, and the securities regulator, SEBI, imposed a fine of ₹9 lakh for regulatory lapses.
Cartrade Tech gained 2.9% to ₹1,008.25, and a fund controlled by Warburg Pincus sold its 8.64% stake in the company for ₹375 crore.
A mutual fund controlled by Mirae Asset Management acquired a 6.4% stake, and the remaining stocks were sold through open market transactions.
- Alexander Garcia
- 24 Sep, 2024
- Miami
Stocks overcame morning jitters, and benchmark indexes approached record highs following the 4% surge in artificial intelligence leader Nvidia.
The S&P 500 index and the Nasdaq Composite rose, and investors overlooked the latest update on consumer confidence.
The consumer confidence index decreased to 98.7 in September from the upwardly revised 105.6 in August, the largest decrease since August 2021, The Conference Board said in a report Tuesday.
“Consumers’ assessments of current business conditions turned negative while views of the current labor market situation softened further.
Consumers were also more pessimistic about future labor market conditions and less positive about future business conditions and future income,” Dana Peterson, Conference Board's chief economist, said in a statement.
China-linked stocks advanced between 3% and 7% after the People's Bank of China announced several measures ahead of the holiday week to revive faltering economic growth and property markets.
JD.com, Alibaba Group, Baidu, Tencent Holdings, and Yum China jumped in New York trading.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.2% to 5,729.29, the Nasdaq Composite rose 0.5% to 18,065.96, and the Russell 2000 index rose 0.3% to 2,226.41.
The yield on 2-year Treasury notes edged lower to 3.57%, 10-year Treasury notes inched up to 3.75%, and 30-year Treasury bonds inched higher to 4.11%.
WTI crude oil increased $1.13 to $71.51 a barrel, and natural gas prices edged down 3 cents to $2.57 a thermal unit.
Gold rose by $36.45 to $2,663.40 an ounce, and silver increased by $1.53 to $32.21.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 100.54.
U.S. Stock Movers
Snowflake declined 0.5% to $112.67 after the cloud data management company announced its plans to raise $2 billion through a convertible bond offering.
AAR Corp. decreased 3.8% to $66.33 despite the aviation services provider reporting better-than-expected quarterly results.
The company said revenue in the fiscal first quarter ending in August increased 20% to $661.7 million from $448.4 million, net income swung to a profit of $18 million from a loss of $0.6 million, and diluted earnings per share were 50 cents compared to a loss of 2 cents a year earlier.
Caterpillar jumped 3.8% to $385.08 after the People's Bank of China announced several stimulus measures to revive the faltering economic growth and support investor confidence.
European Markets Traded Higher Following China's Broad Stimulus Measures
European markets traded higher following a broad list of monetary stimulus measures announced by the People's Bank of China.
Benchmark indexes in Paris, London, and Frankfurt advanced after China's central bank announced wide-ranging measures to revive economic growth towards the 5% target rate.
The People's Bank of China lowered its commercial bank reserve ratio by 50 basis points, which would pump about $141 billion of additional liquidity, and lowered existing mortgage loan rates by the same amount that is likely to benefit about 50 million households.
The central bank also said it is ready to lower the reserve ratio requirement by an additional 50 basis points by the year's end, if needed.
The broad set of stimulus measures lifted market indexes in mainland China and in Hong Kong by 4%, and luxury stocks in Paris, London, and Milan advanced following the announcements.
Market enthusiasm was muted after Germany's business morale dropped to an eight-month low in September.
The Ifo Business Climate Indicator decreased to the lowest level since January to 85.4 in September from 85.6 in August.
Europe Indexes and Yields
The DAX index increased by 0.8% to 18,996.43; the CAC-40 index rose by 1.3% to 7,604.01; and the FTSE 100 index rose by 0.3% to 8,282.73.
The yield on 10-year German bonds edged higher to 2.16%, French bonds inched higher to 2.94%, the UK gilts edged up to 3.97%, and Italian bonds decreased to 3.51%.
The euro edged lower to $1.11; the British pound inched higher to $1.33; and the U.S. dollar weakened to 84.82 Swiss cents.
Brent crude increased $1.44 to $75.64 a barrel, and the Dutch TTF natural gas fell by €0.38 to €35.82 per MWh.
Europe Stock Movers
Mining companies and luxury goods makers traded higher after China announced a raft of monetary measures to revive the faltering economic growth rate.
Antofagasta plc rose 6.8% to 1,948.50 pence, Anglo American advanced 6.6% to 2,262.97 pence, and Glencore jumped 4.5% to 402.20 pence.
LVMH gained 3.4% to €614.80, Hermes International jumped 3.8% to €2,007.0, and Kering SA added 3.5% to €232.05.
Crude oil explorers advanced amid rising tensions in the Middle East and general weakness in the U.S. dollar.
BP plc gained 0.1% to 412.25 pence, Shell PLC increased 0.2% to €31.24, and BHP Group Ltd. advanced 4.1% to 2,127.0 pence.
TotalEnergies SE jumped 1.2% to €63.07, and the French energy company signed an agreement to supply 200,000 tons of LNG to HD Hyundai Chemical for seven years starting 2027.
CRH PLC declined 0.1% to 6,838.0 pence, and the company announced the appointment of a new chief executive.
Johnson Matthey PLC advanced 1.4% to 1,500.0 pence after the company said its previously announced stock repurchase plan of £125 million will commence today.
Japan Indexes Edged Higher After Service Growth Accelerated and Manufacturing Contracted In September
Benchmark indexes in Tokyo edged higher after investors returned from a three-day holiday and reviewed the latest policy comments from the Bank of Japan Governor.
The Nikkei 225 stock average and the Topix index gained at least 0.5% in active trading after China announced wide-ranging stimulus measures ahead of the holiday week.
Bank of Japan Governor Kazuo Ueda said that the central bank's policy committee needs time to reassess the economic developments and market moves before adjusting policy measures.
Market participants interpreted brief comments as a sign that the central bank is not in a hurry to raise interest rates.
In addition, investors reviewed the latest updates on manufacturing and service sector activities.
The service sector activities accelerated for the third month in a row and reached a five-month high, and the manufacturing sector contracted for the seventh month in 2024.
The au Jibun Bank Japan Services PMI increased to 53.9 in September from the final 53.7 in August, S&P Global reported in its latest update released on Tuesday.
The au Jibun Bank Japan Manufacturing PMI eased to 49.6 in September from 49.8 in August, S&P Global said in a separate report released Tuesday.
The Japanese yen weakened to 144.37 against the U.S. dollar, and the yield on the Japanese government bond edged lower to 0.81%.
Japan Stock Movers
The Nikkei 225 Stock Averages increased 0.6% to 37,940.59, and the broader Topix index gained 0.5% to 2,656.73.
Tech stocks traded volatile and struggled to advance despite the gains in the sector in overnight trading in New York.
Tokyo Electron, Advantest, Screen Holdings, and Disco Corp. traded in a tight range.
Kawasaki Heavy Industries increased 2.9% to ¥5,568.0, Mitsubishi Heavy Industries jumped 4.3% to ¥1,986.50, and Hitachi Ltd jumped 5% to ¥3,856.0.
Seven & I Holdings decreased 0.4% to ¥2,139.0, Isetan Mitsukoshi advanced 2.6% to ¥2,203.50, and Fast Retailing added 0.3% to ¥47,930.0.
China Indexes Jumped 4% After Monetary Stimulus Measures
Stock market indexes in mainland China and Hong Kong soared as much as 4% after the central bank announced a slew of policy measures to revive economic growth and bolster market sentiment.
The Han Seng index and CSI 300 indexes jumped nearly 4% after the People's Bank of China announced several measures to increase liquidity in the financial system, facilitate new home purchases, and lower the burden on existing home loan borrowers.
The central bank lowered its reserve requirement ratio for commercial banks by 50 basis points to around 6.6%, in a move that is expected to inject one trillion yuan or $141 billion liquidity into the banking system.
Governor Pan Gongsheng, at a press conference, also said that the central bank is prepared to lower the reserve ratio requirement by as much as an additional 50 basis points before the end of the year if needed.
Governor Gongsheng also added that the down payment required for the second home purchase is lowered to 15% from the current 25% and interest rates for existing home loans by 50 basis points that will help about 50 million households or 150 million people, reducing annual household interest payment by 150 billion yuan.
To send a strong signal to financial markets and underscore the importance of the latest measures, the central bank announced measures in a joint conference held with Li Yunze, the minister of the National Administration of Financial Regulation, and Wu Qing, chairman of the China Securities Regulatory Commission.
The central bank plans to set up a loan facility for listed companies, stock brokerage firms, and mutual fund companies to purchase listed stocks and provide additional support to the stock market.
Governor Gongsheng announced that the seven-day repo rate will be lowered to 1.5% from 1.7% and added that the move is expected to lower the medium-term loan rates by 0.3% and the loan prime rate by between 0.2% and 0.25%.
The central bank announced a slew of new measures after the previous fund of 300 billion yuan to support the purchase of unsold residential properties failed to make a dent in the property weakness.
The central bank's delayed measures are not likely to alter the downward trajectory of the stock market in the coming months without additional broad fiscal measures, as weak investor confidence and weakening consumer sentiment dominate trading.
China Stock Movers
The Hang Seng index soared 3.5% to 18,892.29, and the mainland-focused CSI 300 index jumped 3.4% to 3,323.27.
Banks and property stocks soared after the central bank announced wide-ranging measures to stimulate the economy and inject financial liquidity.
China Merchants Bank soared 10.5% to HK $34.30, Bank of China increased 3.1% to HK $3.66, and Industrial and Commercial Bank of China gained 5.2% to HK $4.67.
Ping An Insurance jumped 7.1% to HK $40.45, and China Life Insurance added 6.1% to HK $12.94.
China Resources Land added 5.9% to HK $22.40, China Vanke gained 2.9% to HK $4.69, and Longfor Group Holdings advanced 4.2% to HK $9.14.
- Scott Peters
- 24 Sep, 2024
- New York City
Snowflake declined 0.5% to $112.67 after the cloud data management company announced its plans to raise $2 billion through a convertible bond offering.
AAR Corp. decreased 3.8% to $66.33 despite the aviation services provider reporting better-than-expected quarterly results.
The company said revenue in the fiscal first quarter ending in August increased 20% to $661.7 million from $448.4 million, net income swung to a profit of $18 million from a loss of $0.6 million, and diluted earnings per share were 50 cents compared to a loss of 2 cents a year earlier.
Caterpillar jumped 3.8% to $385.08 after the People's Bank of China announced several stimulus measures to revive the faltering economic growth and support investor confidence.
China-linked stocks advanced between 3% and 7% after the People's Bank of China announced several measures ahead of the holiday week to revive faltering economic growth and property markets.
JD.com, Alibaba Group, Baidu, Tencent Holdings, and Yum China jumped in New York trading.
- Barry Adams
- 24 Sep, 2024
- New York City
Stocks struggled in Tuesday's trading, and benchmark indexes edged lower from record highs after consumer confidence weakened.
The S&P 500 index and the Nasdaq Composite declined slightly as investors reviewed the latest update on consumer confidence.
The consumer confidence index decreased to 98.7 in September from the upwardly revised 105.6 in August, the largest decrease since August 2021, The Conference Board said in a report Tuesday.
“Consumers’ assessments of current business conditions turned negative while views of the current labor market situation softened further.
Consumers were also more pessimistic about future labor market conditions and less positive about future business conditions and future income,” Dana Peterson, Conference Board's chief economist, said in a statement.
China-linked stocks advanced between 3% and 7% after the People's Bank of China announced several measures ahead of the holiday week to revive faltering economic growth and property markets.
JD.com, Alibaba Group, Baidu, Tencent Holdings, and Yum China jumped in New York trading.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.02% to 5,721.72, the Nasdaq Composite rose 0.1% to 17,9996.99, and the Russell 2000 index rose 0.1% to 2,221.38.
The yield on 2-year Treasury notes edged lower to 3.57%, 10-year Treasury notes inched up to 3.75%, and 30-year Treasury bonds inched higher to 4.11%.
WTI crude oil increased $1.03 to $71.40 a barrel, and natural gas prices edged down 0.1 cent to $2.60 a thermal unit.
Gold rose by $13.48 to $2,640.88 an ounce, and silver increased by $0.40 to $31.05.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 100.54.
U.S. Stock Movers
Snowflake declined 0.5% to $112.67 after the cloud data management company announced its plans to raise $2 billion through a convertible bond offering.
AAR Corp. decreased 3.8% to $66.33 despite the aviation services provider reporting better-than-expected quarterly results.
The company said revenue in the fiscal first quarter ending in August increased 20% to $661.7 million from $448.4 million, net income swung to a profit of $18 million from a loss of $0.6 million, and diluted earnings per share were 50 cents compared to a loss of 2 cents a year earlier.
Caterpillar jumped 3.8% to $385.08 after the People's Bank of China announced several stimulus measures to revive the faltering economic growth and support investor confidence.
- Inga Muller
- 24 Sep, 2024
- Frankfurt
European markets advanced after the People's Bank of China announced a broad range of economic stimulus measures to revive faltering economic growth and support weak property markets.
The DAX index increased by 0.5% to 18,945.45; the CAC-40 index rose by 1.1% to 7,607.80; and the FTSE 100 index rose by 0.3% to 8,279.67.
The yield on 10-year German bonds edged higher to 2.16%, French bonds inched higher to 2.94%, the UK gilts edged up to 3.97%, and Italian bonds decreased to 3.51%.
Mining companies and luxury goods makers traded higher after China announced a raft of monetary measures to revive the faltering economic growth rate.
Antofagasta plc rose 6.8% to 1,948.50 pence, Anglo American advanced 6.6% to 2,262.97 pence, and Glencore jumped 4.5% to 402.20 pence.
LVMH gained 3.4% to €614.80, Hermes International jumped 3.8% to €2,007.0, and Kering SA added 3.5% to €232.05.
Crude oil explorers advanced amid rising tensions in the Middle East and general weakness in the U.S. dollar.
BP plc gained 0.1% to 412.25 pence, Shell PLC increased 0.2% to €31.24, and BHP Group Ltd. advanced 4.1% to 2,127.0 pence.
TotalEnergies SE jumped 1.2% to €63.07, and the French energy company signed an agreement to supply 200,000 tons of LNG to HD Hyundai Chemical for seven years starting 2027.
CRH PLC declined 0.1% to 6,838.0 pence, and the company announced the appointment of a new chief executive.
Johnson Matthey PLC advanced 1.4% to 1,500.0 pence after the company said its previously announced stock repurchase plan of £125 million will commence today.
- Bridgette Randall
- 24 Sep, 2024
- London
European markets traded higher following a broad list of monetary stimulus measures announced by the People's Bank of China.
Benchmark indexes in Paris, London, and Frankfurt advanced after China's central bank announced wide-ranging measures to revive economic growth towards the 5% target rate.
The People's Bank of China lowered its commercial bank reserve ratio by 50 basis points, which would pump about $141 billion of additional liquidity, and lowered existing mortgage loan rates by the same amount that is likely to benefit about 50 million households.
The central bank also said it is ready to lower the reserve ratio requirement by an additional 50 basis points by the year's end, if needed.
The broad set of stimulus measures lifted market indexes in mainland China and in Hong Kong by 4%, and luxury stocks in Paris, London, and Milan advanced following the announcements.
Market enthusiasm was muted after Germany's business morale dropped to an eight-month low in September.
The Ifo Business Climate Indicator decreased to the lowest level since January to 85.4 in September from 85.6 in August.
Europe Indexes and Yields
The DAX index increased by 0.5% to 18,945.45; the CAC-40 index rose by 1.1% to 7,607.80; and the FTSE 100 index rose by 0.3% to 8,279.67.
The yield on 10-year German bonds edged higher to 2.16%, French bonds inched higher to 2.94%, the UK gilts edged up to 3.97%, and Italian bonds decreased to 3.51%.
The euro edged lower to $1.11; the British pound inched higher to $1.33; and the U.S. dollar weakened to 84.82 Swiss cents.
Brent crude increased $1.44 to $75.64 a barrel, and the Dutch TTF natural gas fell by €0.38 to €35.82 per MWh.
Europe Stock Movers
Mining companies and luxury goods makers traded higher after China announced a raft of monetary measures to revive the faltering economic growth rate.
Antofagasta plc rose 6.8% to 1,948.50 pence, Anglo American advanced 6.6% to 2,262.97 pence, and Glencore jumped 4.5% to 402.20 pence.
LVMH gained 3.4% to €614.80, Hermes International jumped 3.8% to €2,007.0, and Kering SA added 3.5% to €232.05.
Crude oil explorers advanced amid rising tensions in the Middle East and general weakness in the U.S. dollar.
BP plc gained 0.1% to 412.25 pence, Shell PLC increased 0.2% to €31.24, and BHP Group Ltd. advanced 4.1% to 2,127.0 pence.
TotalEnergies SE jumped 1.2% to €63.07, and the French energy company signed an agreement to supply 200,000 tons of LNG to HD Hyundai Chemical for seven years starting 2027.
CRH PLC declined 0.1% to 6,838.0 pence, and the company announced the appointment of a new chief executive.
Johnson Matthey PLC advanced 1.4% to 1,500.0 pence after the company said its previously announced stock repurchase plan of £125 million will commence today.
- Akira Ito
- 24 Sep, 2024
- Tokyo
Benchmark indexes in Tokyo edged higher after investors returned from a three-day holiday and reviewed the latest policy comments from the Bank of Japan Governor.
The Nikkei 225 stock average and the Topix index gained at least 0.5% in active trading after China announced wide-ranging stimulus measures ahead of the holiday week.
Bank of Japan Governor Kazuo Ueda said that the central bank's policy committee needs time to reassess the economic developments and market moves before adjusting policy measures.
Market participants interpreted brief comments as a sign that the central bank is not in a hurry to raise interest rates.
In addition, investors reviewed the latest updates on manufacturing and service sector activities.
The service sector activities accelerated for the third month in a row and reached a five-month high, and the manufacturing sector contracted for the seventh month in 2024.
The au Jibun Bank Japan Services PMI increased to 53.9 in September from the final 53.7 in August, S&P Global reported in its latest update released on Tuesday.
The au Jibun Bank Japan Manufacturing PMI eased to 49.6 in September from 49.8 in August, S&P Global said in a separate report released Tuesday.
The Japanese yen weakened to 144.37 against the U.S. dollar, and the yield on the Japanese government bond edged lower to 0.81%.
Japan Stock Movers
The Nikkei 225 Stock Averages increased 0.6% to 37,940.59, and the broader Topix index gained 0.5% to 2,656.73.
Tech stocks traded volatile and struggled to advance despite the gains in the sector in overnight trading in New York.
Tokyo Electron, Advantest, Screen Holdings, and Disco Corp. traded in a tight range.
Kawasaki Heavy Industries increased 2.9% to ¥5,568.0, Mitsubishi Heavy Industries jumped 4.3% to ¥1,986.50, and Hitachi Ltd jumped 5% to ¥3,856.0.
Seven & I Holdings decreased 0.4% to ¥2,139.0, Isetan Mitsukoshi advanced 2.6% to ¥2,203.50, and Fast Retailing added 0.3% to ¥47,930.0.
- Li Chen
- 24 Sep, 2024
- Hong Kong
Stock market indexes in mainland China and Hong Kong soared as much as 4% after the central bank announced a slew of policy measures to revive economic growth and bolster market sentiment.
The Han Seng index and CSI 300 indexes jumped nearly 4% after the People's Bank of China announced several measures to increase liquidity in the financial system, facilitate new home purchases, and lower the burden on existing home loan borrowers.
The central bank lowered its reserve requirement ratio for commercial banks by 50 basis points to around 6.6%, in a move that is expected to inject one trillion yuan or $141 billion liquidity into the banking system.
Governor Pan Gongsheng, at a press conference, also said that the central bank is prepared to lower the reserve ratio requirement by as much as an additional 50 basis points before the end of the year if needed.
Governor Gongsheng also added that the down payment required for the second home purchase is lowered to 15% from the current 25% and interest rates for existing home loans by 50 basis points that will help about 50 million households or 150 million people, reducing annual household interest payment by 150 billion yuan.
To send a strong signal to financial markets and underscore the importance of the latest measures, the central bank announced measures in a joint conference held with Li Yunze, the minister of the National Administration of Financial Regulation, and Wu Qing, chairman of the China Securities Regulatory Commission.
The central bank plans to set up a loan facility for listed companies, stock brokerage firms, and mutual fund companies to purchase listed stocks and provide additional support to the stock market.
Governor Gongsheng announced that the seven-day repo rate will be lowered to 1.5% from 1.7% and added that the move is expected to lower the medium-term loan rates by 0.3% and the loan prime rate by between 0.2% and 0.25%.
The central bank announced a slew of new measures after the previous fund of 300 billion yuan to support the purchase of unsold residential properties failed to make a dent in the property weakness.
The central bank's delayed measures are not likely to alter the downward trajectory of the stock market in the coming months without additional broad fiscal measures, as weak investor confidence and weakening consumer sentiment dominate trading.
China Stock Movers
The Hang Seng index soared 3.5% to 18,892.29, and the mainland-focused CSI 300 index jumped 3.4% to 3,323.27.
Banks and property stocks soared after the central bank announced wide-ranging measures to stimulate the economy and inject financial liquidity.
China Merchants Bank soared 10.5% to HK $34.30, Bank of China increased 3.1% to HK $3.66, and Industrial and Commercial Bank of China gained 5.2% to HK $4.67.
Ping An Insurance jumped 7.1% to HK $40.45, and China Life Insurance added 6.1% to HK $12.94.
China Resources Land added 5.9% to HK $22.40, China Vanke gained 2.9% to HK $4.69, and Longfor Group Holdings advanced 4.2% to HK $9.14.
- Arun Goswami
- 24 Sep, 2024
- Mumbai
Stocks in Mumbai edged slightly higher, but the rising tensions in the Middle East kept market enthusiasm in check on Dalal Street.
The Sensex index increased by 0.1% to 85,032.78, and the Nifty index edged up by 0.1% to 25,971.50.
On the Mumbai stock exchange, 190 stocks traded at their 52-week highs, and 20 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds inched lower to 6.70%, and the Indian rupee strengthened to 83.55 against the U.S. dollar.
Spicejet decreased 1.2% to ₹69.37, and the struggling discount airline said it has completed its ₹3,000 crore secondary issue.
Moreover, the company said it received an additional ₹736 crore from the previous fund-raising round.
Reliance Power gained 5% to ₹40.05, and the electric power company said it plans to raise ₹1,525 crore to accelerate its plans to expand its renewable energy business.
Punjab National Bank decreased 0.7% to ₹110.73, and the financial service provider set the terms of its upcoming ₹7,500 crore secondary issue for institutional investors.
The company set the floor price of ₹109.16 per share with a maximum discount of 5%.
Adani Power increased 0.04% to ₹672.30, and the company is looking to sell electric power from the Godda thermal power plant located in Jharkhand in the domestic market following the lack of payment from Bangladesh.
V2 Retail soared 5% to ₹1,284.85, and Lighthouse Advisors sold a 2% stake for ₹85 crore in the Kolkatta-based apparel and household goods retailer.
After the latest stake sale to a mutual fund controlled by Motilal Oswal, Lighthouse still controls 4.24% stake in the retailer.
NHPC decreased 0.2% to ₹94.02, and the hydroelectric power company paid a total of ₹1,286.33 crore, including the final dividend of 338.51 crore paid recently to the central government.
Samvardhana Motherson International decreased 0.4% to ₹206.55, and the automotive component manufacturer completed its secondary issue ₹6,438 crore.
The company plans to use the proceeds to repay its debt and for general corporate expenses.
- Alexander Garcia
- 23 Sep, 2024
- Miami
Stock market indexes traded in a tight range as investors digested the latest update on private sector activities.
Benchmark indexes rose sharply in the previous week after the Federal Reserve announced a bod rate cut.
Financial markets cheered the jumbo-sized 50 basis points rate cut after some initial hesitation, as investors hoped that the central bank was more likely to engineer a so-called "soft landing," a gradual economic slowdown without dipping the economy into a recession.
The rate cut was also seen as the Fed’s acknowledgement that labor market conditions are moderate and inflation is falling at a faster-than-expected pace.
However, the large rate cut may fan inflationary forces in the months ahead, prolonging higher inflation next year.
But for now, investors around the world cheered the Fed’s aggressive move and awaited additional rate cuts later in the year.
On Monday, the release of the manufacturing and service sector activities survey kicked-off a busy week of economic releases.
The S&P Global Flash U.S. Composite PMI declined to 54.4 in September from 54.6 in August.
On Monday, the manufacturing and service sector activities survey kicked off a busy week of economic releases.
The S&P Global Flash U.S. Composite PMI declined to 54.4 in September from 54.6 in August.
The private sector activity growth remained strong, suggesting a robust economic expansion in the third quarter.
Growth in the service sector remained strong, but it edged lower to 55.4 in September from 55.7 in August, but the contraction in manufacturing deepened to 47 from 47.9 in the previous month.
Prices for goods and services rose at the fastest pace since March; input costs advanced the most in a year.
Investors are looking forward to the release of the PCE price index, an alternative measure of inflation, amid expectations of a monthly increase of 0.2%.
Second quarter GDP growth revision, durable goods orders, and new and pending home sales data are also set to be released this week.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.2% to 5,718.05, the Nasdaq Composite rose 0.3% to 18,004.65, and the Russell 2000 index fell 0.4% to 2,219.22.
The yield on 2-year Treasury notes edged lower to 3.58%, 10-year Treasury notes inched up to 3.75%, and 30-year Treasury bonds inched higher to 4.10%.
WTI crude oil increased $0.11 to $71.11 a barrel, and natural gas prices edged up 6 cents to $2.50 a thermal unit.
Gold rose by $3.48 to $2,625.13 an ounce, and silver decreased by $0.41 to $30.75.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 100.94.
U.S. Stock Movers
Ciena Corp. jumped 4.2% to $61.31 after the networking software and system developer for optical connectivity was upgraded to "buy" from "sell," citing improving conditions in the telecom industry.
Intel Corp. increased 2.4% to $22.43 on a report that Apollo Global Management offered the chipmaker to make an equity-like investment of as much as $5 billion.
The news was first reported by Bloomberg News on Sunday.
Intel has fallen more than 60% from a high of $68.26 reached in early April 2021, as the advanced chipmaker struggled to make a transition to smaller and more powerful chips suitable for artificial intelligence applications amid rising competitions.
Eurozone Business Activities Contracted for the Fourth Month, Stocks and Euro Edged Lower
European markets traded down in cautious trading as investors reacted to the latest political developments in the region and weak business activity data.
Benchmark indexes in Paris, London, and Frankfurt were down between 0.2% and 0.5% after the business activity index declined for the fourth consecutive month in September.
The HCOB Flash Eurozone Composite PMI decreased to 48.9 in September from 51.0 in August and fell to the lowest level since January, according to the data released by S&P Global.
The service sector growth slowed to 50.5 from 52.9, and the manufacturing downturn extended to the 18th month in a row to 44.5 from 45.8 in the previous month, respectively.
The composite PMI fell at the fastest pace in 15 months after the Olympic games had temporarily boosted activities in France.
The euro dropped to $1.11 after the report, amid concerns that the European Central Bank may need to accelerate easing of its monetary policy and provide additional support.
The British pound jumped to a two-and-a-half years high of $1.33 as the UK's Labour Party kicked off its annual conference on Monday.
In political news, France's prime minister, Michel Barnier, said his government is open to increasing taxes for big businesses and the wealthiest citizens to tackle its large and widening budget deficit.
The Social Democratic Party, led by Olaf Scholz, narrowly defeated far-right party Alternative for Germany in an election in the east German state of Brandenburg.
Europe Indexes and Yields
The DAX index increased by 0.6% to 18,828.59; the CAC-40 index rose by 0.1% to 7,508.08; and the FTSE 100 index advanced by 0.4% to 8,259.71.
The yield on 10-year German bonds edged lower to 2.15%, French bonds inched higher to 2.93%, the UK gilts edged up to 3.91%, and Italian bonds decreased to 3.52%.
The euro edged lower to $1.11; the British pound inched higher to $1.33; and the U.S. dollar weakened to 84.94 Swiss cents.
Brent crude decreased $1.08 to $73.44 a barrel, and the Dutch TTF natural gas rose by €1.50 to €36.11 per MWh.
Europe Stock Movers
Rightmove Plc increased 1.2% to 682.60 pence after Australia's REA Group increased its offer for the UK-based property portal.
Commerzbank added 0.2% to €15.71, and the German government agency said in a statement that it has no plans to sell its remaining 12% stake in the bank.
Scout24 SE increased 2.3% to €77.30, and Germany's largest online property platform operator announced its plans to commence its stock buyback program worth €150 million.
The company plans to launch its stock buyback plan in the next few weeks and end in 2026.
UBS Group AG was nearly unchanged at CHF 25.46 on reports that the Swiss regulator is investigating the collapse of Credit Suisse ahead of its merger with the bank.
Siemens AG increased 0.4% to €167.26, and the company said it plans to separate its eMobility business.
China Lowered Short Term Rate, Hong Kong Indexes Hovered at 3-Month High
Stocks in Hong Kong and Shanghai advanced in Monday's trading following an unexpected rate cut by the People's Bank of China.
The Hang Seng increased 0.6%, and the mainland-focused CSI 300 index gained 0.7% in active trading.
The People's Bank of China unexpectedly lowered its 14-day reverse repurchase rate by 10 basis points to 1.85% from 1.95%. It also injected liquidity of 74.5 billion yuan into the financial system, according to a statement released by the central bank.
Last week, the central bank held steady 1-year and 5-year loan prime rates, despite the U.S. Federal Reserve Bank lowering its target rate range by 50 basis points to between 4.75% and 5.0%.
The latest move is likely to spur more lending to businesses and residential property developers, amid weak consumer confidence and domestic demand.
The central bank's move comes ahead of a 7-day National Day Holiday period starting October 1.
In other economic news, China's jobless rate among those between the ages of 16 and 24, excluding students, increased to 18.8% in August from 17.1% in July, the National Bureau of Statistics reported Monday.
The jobless rate increased to the highest since December, when the statistical agency revised its methodology after halting the release of data for four months.
The revised methodology vastly understates the jobless count among young applicants, according to most private economists.
Last week, the Hang Seng index advanced 5.1%, the most in five months, following the receding worries of the global economic slowdown.
However, financial market indexes in mainland China continued to struggle near five-year lows as corporate earnings growth outlook remained clouded.
Indexes in India traded at new record highs and gained 0.2%, and in Australia they edged down 0.5% but hovered near recent record highs.
In Friday's trading, benchmark indexes in New York and Europe closed mixed but extended weekly advance after the U.S. Federal Reserve lowered its target rate range and signaled possible rate declines in the year.
Japan's financial markets are closed on Monday for a holiday.
China Stock Movers
The Hang Seng index increased 0.6% to 18,359.38, and the CSI 300 index added 0.7% to 3,223.15.
Tech stocks led the gainers in Hong Kong following the rise in the sector in Friday's trading in New York.
Alibaba Group gained 0.5% to HK $87.70, JD.com gained 2% to $114.80, and Tencent Holdings declined 0.5% to HK $387.0.
Bank of China increased 1.1% to HK $3.54.0, China Minsheng Banking advanced 1.9% to HK $2.86, China Construction Construction Bank added 1.4% to HK $5.66, and Industrial and Commercial Bank of China added 1.6% to HK $4.46.
Property developers were in focus for the second day in a row after the People's Bank of China unexpectedly lowered short-term rates.
China Vanke gained 2.2% to HK $4.55, China Resources Land decreased 0.3% to HK $21.20, Longfor Group added 0.1% to HK $8.78, Henderson Land decreased 0.3% to HK $25.40, and Sun Hung Kai Properties added 0.7% to HK $81.95.
Xiaomi Corp. gained 3.9% to HK $20.65 after its chief executive confirmed the company's plans to launch its popular and expensive flip phone into the global market this month.
Kweichow Moutai increased 0.3% to ¥1,267.38 in Shanghai trading, and the liquor maker said it plans to repurchase up to 6 billion yuan of its own stock.
Kweichow Moutai stock is trading at a four-year low amid an economic slowdown and falling wholesale prices.
- Barry Adams
- 23 Sep, 2024
- New York City
Benchmark indexes looked higher following the sharp gains the previous week after the Federal Reserve announced a bod rate cut.
Financial markets cheered the jumbo-sized 50 basis points rate cut after some initial hesitation, as investors hoped that the central bank was more likely to engineer a so-called "soft landing," a gradual economic slowdown without dipping the economy into a recession.
The rate cut was also seen as the Fed’s acknowledgement that labor market conditions are moderate and inflation is falling at a faster-than-expected pace.
However, the large rate cut may fan inflationary forces in the months ahead, prolonging higher inflation next year.
But for now, investors around the world cheered the Fed’s aggressive move and awaited additional rate cuts later in the year.
On Monday, the release of the manufacturing and service sector activities survey is set to kick-off a busy week of economic releases.
Investors are hoping to get more insights into the growth drivers in the service sector, the main driver of the U.S. economy.
Investors are looking forward to the release of the PCE price index, an alternative measure of inflation, amid expectation of an increase of 0.2% from the previous month in August.
Second quarter GDP growth revision, durable goods orders, and new and pending home sales data are also set to be released this week.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.2% to 5,715.87, the Nasdaq Composite rose 0.1% to 17,968.59, and the Russell 2000 index fell 1.1% to 2,227.89.
The yield on 2-year Treasury notes edged lower to 3.58%, 10-year Treasury notes inched up to 3.75%, and 30-year Treasury bonds inched higher to 4.10%.
WTI crude oil increased $0.11 to $71.11 a barrel, and natural gas prices edged up 6 cents to $2.50 a thermal unit.
Gold rose by $3.48 to $2,625.13 an ounce, and silver decreased by $0.41 to $30.75.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 100.94.
U.S. Stock Movers
Ciena Corp. jumped 4.2% to $61.31 after the networking software and system developer for optical connectivity was upgraded to "buy" from "sell," citing improving conditions in the telecom industry.
Intel Corp. increased 2.4% to $22.43 on a report that Apollo Global Management offered the chipmaker to make an equity-like investment of as much as $5 billion.
The news was first reported by Bloomberg News on Sunday.
Intel has fallen more than 60% from a high of $68.26 reached in early April 2021, as the advanced chipmaker struggled to make a transition to smaller and more powerful chips suitable for artificial intelligence applications amid rising competitions.
- Inga Muller
- 23 Sep, 2024
- Frankfurt
Business activities in the European Union contracted for the fourth month in a row amid persistent weakness in the manufacturing sector.
Germany's SDP narrowly won an election in the Brandenburg state.
The DAX index increased by 0.5% to 18,824.07; the CAC-40 index fell by 0.3% to 7,480.31; and the FTSE 100 index declined by 0.1% to 8,219.74.
The yield on 10-year German bonds edged lower to 2.15%, French bonds inched higher to 2.93%, the UK gilts edged up to 3.91%, and Italian bonds decreased to 3.52%.
Rightmove Plc increased 1.2% to 682.60 pence after Australia's REA Group increased its offer for the UK-based property portal.
Commerzbank added 0.2% to €15.71, and the German government agency said in a statement that it has no plans to sell its remaining 12% stake in the bank.
Scout24 SE increased 2.3% to €77.30, and Germany's largest online property platform operator announced its plans to commence its stock buyback program worth €150 million.
The company plans to launch its stock buyback plan in the next few weeks and end in 2026.
UBS Group AG was nearly unchanged at CHF 25.46 on reports that the Swiss regulator is investigating the collapse of Credit Suisse ahead of its merger with the bank.
Siemens AG increased 0.4% to €167.26, and the company said it plans to separate its eMobility business.
- Bridgette Randall
- 23 Sep, 2024
- London
European markets traded down in cautious trading as investors reacted to the latest political developments in the region and weak business activity data.
Benchmark indexes in Paris, London, and Frankfurt were down between 0.2% and 0.5% after the business activity index declined for the fourth consecutive month in September.
The HCOB Flash Eurozone Composite PMI decreased to 48.9 in September from 51.0 in August and fell to the lowest level since January, according to the data released by S&P Global.
The service sector growth slowed to 50.5 from 52.9, and the manufacturing downturn extended to the 18th month in a row to 44.5 from 45.8 in the previous month, respectively.
The composite PMI fell at the fastest pace in 15 months after the Olympic games had temporarily boosted activities in France.
The euro dropped to $1.11 after the report, amid concerns that the European Central Bank may need to accelerate easing of its monetary policy and provide additional support.
The British pound jumped to a two-and-a-half years high of $1.33 as the UK's Labour Party kicked off its annual conference on Monday.
In political news, France's prime minister, Michel Barnier, said his government is open to increasing taxes for big businesses and the wealthiest citizens to tackle its large and widening budget deficit.
The Social Democratic Party, led by Olaf Scholz, narrowly defeated far-right party Alternative for Germany in an election in the east German state of Brandenburg.
Europe Indexes and Yields
The DAX index increased by 0.5% to 18,824.07; the CAC-40 index fell by 0.3% to 7,480.31; and the FTSE 100 index declined by 0.1% to 8,219.74.
The yield on 10-year German bonds edged lower to 2.15%, French bonds inched higher to 2.93%, the UK gilts edged up to 3.91%, and Italian bonds decreased to 3.52%.
The euro edged lower to $1.11; the British pound inched higher to $1.33; and the U.S. dollar weakened to 84.94 Swiss cents.
Brent crude increased $0.18 to $74.66 a barrel, and the Dutch TTF natural gas rose by €0.20 to €34.80 per MWh.
Europe Stock Movers
Rightmove Plc increased 1.2% to 682.60 pence after Australia's REA Group increased its offer for the UK-based property portal.
Commerzbank added 0.2% to €15.71, and the German government agency said in a statement that it has no plans to sell its remaining 12% stake in the bank.
Scout24 SE increased 2.3% to €77.30, and Germany's largest online property platform operator announced its plans to commence its stock buyback program worth €150 million.
The company plans to launch its stock buyback plan in the next few weeks and end in 2026.
UBS Group AG was nearly unchanged at CHF 25.46 on reports that the Swiss regulator is investigating the collapse of Credit Suisse ahead of its merger with the bank.
Siemens AG increased 0.4% to €167.26, and the company said it plans to separate its eMobility business.