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. 

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. 

India Movers: Adani Total Gas, Dreamfolks Services, HDFC Bank, Religare, Reliance Infrastructure, Signature Global, Tata Steel

India indexes advanced in Monday's trading following positive market sentiment amid receding worries of a global economic slowdown. 

The Sensex and Nifty indexes traded at new intraday highs following the sustained new fund flows from domestic investors.

The Sensex index increased by 0.3% to 84,752.44, and the Nifty index edged up by 0.4% to 25,881.35. 

On the Mumbai stock exchange, 147 stocks traded at their 52-week highs, and 17 stocks traded at their 52-week lows.

Punjab & Sind Bank gained 1% to ₹54.65, and the company plans to raise as much as ₹3,000 crore through a bond offering, following other large offerings from state-controlled banks. 

Dreamfolks Services increased 1.3% to ₹501.45, and the company has halted providing lounge services at airports operated by Adani Group. 

Signature Global advanced 3.2% to ₹1,529.90, and the residential real estate developer placed a 320 crore order with ACC India for its luxury housing project in Gurugram. 

Religare Enterprises inched up 1.2% to ₹274.25, and the company was in focus after it postponed its annual general meeting following the allegations of insider trading by executive chairperson Rashmi Saluja. 

Reliance Infrastructure soared 11% to ₹316.0, and the company announced fund raising of ₹1,100 crore from promoters and ₹1,900 crore from an investment company as part of its efforts to raise as much as 6,000 crore through a secondary offering. 

Tata Steel increased 1.7% to ₹152.10, and the company initiated a new blast furnace operation at a plant in Odisha that will expand its capacity to 8 million tons from 3 million tons. 

Adani Total Gas advanced 1.8% to ₹790.0, and the local gas distribution network operator said it has completed raising $315 million or ₹2,632 crore from international lenders.

The company plans to raise a total of $375 million, or 3,134 crore, from a consortium of international lenders over the next few weeks.

HDFC Bank increased 2.4% to ₹1,749.0, and the company's subsidiary HDB Financial Services plans to raise as much as ₹2,500 crore through an initial public offering. 

U.S. Movers: Chewy, FedEx, MillerKnoll, Nike

FedEx decreased 13% to $261.50, and the parcel delivery company reported a sharp fall in earnings and the company lowered its annual outlook. 

Nike increased 8.3% to $87.68, and the athletic footwear maker said chief executive John Donahoe would step down from the office on October 13. 

Elliott Hill, a Nike veteran, would return to the company to assume the leading role. 

MillerKnoll declined 7.9% to $25.30, and the office furniture maker reported weaker-than-expected revenue and earnings in its latest quarter. 

Revenue in the fiscal first quarter ending in August decreased 6.1% to $851.5 million from $917.7 million, net income swung to a loss of $0.5 million from $16.1 million, and diluted earnings per share were a loss of 1.2 cents compared to a profit of 16.1 cents a year earlier. 

Chewy declined 2.9% to $25.30 after the online pet products store disclosed its plans to raise $500 million through a public offering of Class A stock. 

Wall Street Indexes Rested Near Record Highs Amid Soft Landing Optimism

Market indexes traded around the flatline on Wall Street as investors focused on the positives of the Fed's jumbo-sized rate cut on Wednesday. 

The S&P 500, the Nasdaq Composite, and the Dow Jones Industrial Average traded at or near record highs, boosted by the market enthusiasm over the Fed's latest cut and signaling of additional cuts in the year. 

Market indexes rallied on Thursday after initial jobless claims last week dropped to the lowest level since May, confirming that labor market conditions are moderating and the Federal Reserve is more likely to engineer a soft landing, averting a recession. 

Jumbo-sized rate cuts are positive for consumers and businesses as they increase demand for goods and services, but lower rates also stoke inflationary forces. 

After a week of tumultuous trading, the S&P 500 and the Nasdaq Composite are set to close to advance in the week between 1% and 2%. 

U.S. Indexes and Treasury Yields

The S&P 500 index decreased 0.2% to 5,703.66, the Nasdaq Composite fell 0.01% to 18,013.92, and the Russell 2000 index advanced 2.1% to 2,252.70. 

The yield on 2-year Treasury notes edged lower to 3.62%, 10-year Treasury notes inched down to 3.73%, and 30-year Treasury bonds inched lower to 4.06%.

WTI crude oil decreased $0.46 to $70.68 a barrel, and natural gas prices edged up 2 cents to $2.37 a thermal unit.

Gold rose by $29.19 to $2,816.98 an ounce, and silver increased by $0.16 to $31.37.

The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 100.75.

U.S. Stock Movers

FedEx decreased 13% to $261.50, and the parcel delivery company reported a sharp fall in earnings and the company lowered its annual outlook. 

Nike increased 8.3% to $87.68, and the athletic footwear maker said chief executive John Donahoe would step down from the office on October 13. 

Elliott Hill, a Nike veteran, would return to the company to assume the leading role. 

MillerKnoll declined 7.9% to $25.30, and the office furniture maker reported weaker-than-expected revenue and earnings in its latest quarter. 

Revenue in the fiscal first quarter ending in August decreased 6.1% to $851.5 million from $917.7 million, net income swung to a loss of $0.5 million from $16.1 million, and diluted earnings per share were a loss of 1.2 cents compared to a profit of 16.1 cents a year earlier. 

Chewy declined 2.9% to $25.30 after the online pet products store disclosed its plans to raise $500 million through a public offering of Class A stock. 

Europe Movers: Burberry, Mercedes-Benz Group, Luxury Stocks

European markets trimmed weekly gains after luxury goods and vehicle makers with significant exposure to China led the decliners. 

Germany's producer price inflation extended its yearlong decline in August, and the UK's retail sales accelerated after warmer weather boosted demand for food and apparel. 

The DAX index decreased by 0.8% to 18,850.71; the CAC-40 index fell by 0.7% to 7,565.09; and the FTSE 100 index declined by 0.4% to 8,294.19. 

The yield on 10-year German bonds edged higher to 2.20%, French bonds inched higher to 2.93%, the UK gilts edged up to 3.89%, and Italian bonds increased to 3.55%.

Vehicle makers were among the leading decliners in Friday's trading after Mercedes-Benz lowered its annual outlook following a rapid deterioration in its business in China. 

Mercedes-Benz Group dropped 6.4% to €55.24, and the luxury automaker said it plans to invest over $2 billion in China with local partners and accelerate its transition to electric vehicle manufacturing. 

The company said its adjusted operating earnings before interest and tax were "significantly below" last year's level amid a rapid decline in sales in China. 

The company-added return on sales is likely to fall in the range between 7.5% and 8.5% from the previously estimated range between 10% and 11%. 

Following the Mercedes-Benz announcement, stocks of other leading automakers declined in the region. 

Porsche Automobil decreased 2.6% to €39.90, Volvo declined 1.5% to SEK 260.60, Stellantis fell 2.4% to €13.63, BMW dropped 3% to €73.86, and Volkswagen eased 2.4% to €91.62. 

Luxury goods makers were also on the slide on the worry of their exposure to China. 

Hermes International declined 2.8% to €1,937.0, LVMH fell 2.8% to €597.40, and Kering SA, the parent of Gucci, decreased 3.5% to €224.95. 

Burberry Group declined 4.8% to 596.60 pence after Goldman Sachs lowered its target price to €235 from €270 and assigned a "neutral" rating. 

Among other widely held stocks, Deutsche Post, Infineon, Puma, Adidas, Essilor, and L'Oreal fell between 2% and 3% amid market weakness. 

European Markets Trimmed Weekly Gains, Mercedes-Benz Lowered Annual Outlook

European markets traded down and trimmed weekly gains as investors reassessed global economic growth outlook and rate path after rate decisions from major central banks this week. 

Benchmark indexes in Paris, London, and Frankfurt decreased in Friday's trading but traded higher in the week after rate decisions from the Bank of Japan, the People's Bank of China, the Bank of England, the Norges Bank, and the U.S. Federal Reserve. 

The jumbo-sized rate cut by the U.S. Federal Reserve on Wednesday surprised many market participants, and investors hoped that the central bank is more likely to engineer the so-called soft landing and avoid a recession.

On Friday, the Bank of Japan held steady its short-term lending rate, and the People's Bank of China surprisingly held steady its short- and medium-term rates. 

However, market sentiment was cautious amid luxury automobile stocks after Mercedes-Benz lowered its annual outlook, citing weakness in China. 

Closer to home, the producer price index in Germany decreased annually by 0.8% in August, matching the decline in the previous month, the statistical agency, destatis, reported Friday. 

Factory gate prices have been declining since July 2023, primarily reflecting the fall in energy prices. 

Confidence among French manufacturers remained stable in September after rising in the previous month, the statistical office INSEE reported Friday. 

The manufacturing sentiment remained stable at 99.0, matching the level in August and just below the long-term average of 100. 

Separately, UK retail sales rose more than expected after warmer weather boosted demand for food and apparel, the Office for National Statistics reported Friday. 

Retail sales growth accelerated to 1% on a monthly basis in August from a 0.7% rise in July, and on an annual basis, sales advanced 2.5% from the revised annual 1.4% rise in the previous month. 

Europe Indexes and Yields

The DAX index decreased by 0.8% to 18,850.71; the CAC-40 index fell by 0.7% to 7,565.09; and the FTSE 100 index declined by 0.4% to 8,294.19. 

The yield on 10-year German bonds edged higher to 2.20%, French bonds inched higher to 2.93%, the UK gilts edged up to 3.89%, and Italian bonds increased to 3.55%.

The euro edged up to $1.11; the British pound inched higher to $1.32; and the U.S. dollar weakened to 84.91 Swiss cents.

Brent crude decreased $0.46 to $74.40 a barrel, and the Dutch TTF natural gas fell by €1.26 to €34.31 per MWh. 

Europe Stock Movers

Vehicle makers were among the leading decliners in Friday's trading after Mercedes-Benz lowered its annual outlook following a rapid deterioration in its business in China. 

Mercedes-Benz Group dropped 6.4% to €55.24, and the luxury automaker said it plans to invest over $2 billion in China with local partners and accelerate its transition to electric vehicle manufacturing. 

The company said its adjusted operating earnings before interest and tax were "significantly below" last year's level amid a rapid decline in sales in China. 

The company-added return on sales is likely to fall in the range between 7.5% and 8.5% from the previously estimated range between 10% and 11%. 

Following the Mercedes-Benz announcement, stocks of other leading automakers declined in the region. 

Porsche Automobil decreased 2.6% to €39.90, Volvo declined 1.5% to SEK 260.60, Stellantis fell 2.4% to €13.63, BMW dropped 3% to €73.86, and Volkswagen eased 2.4% to €91.62. 

Luxury goods makers were also on the slide on the worry of their exposure to China. 

Hermes International declined 2.8% to €1,937.0, LVMH fell 2.8% to €597.40, and Kering SA, the parent of Gucci, decreased 3.5% to €224.95. 

Burberry Group declined 4.8% to 596.60 pence after Goldman Sachs lowered its target price to €235 from €270 and assigned a "neutral" rating. 

Among other widely held stocks, Deutsche Post, Infineon, Puma, Adidas, Essilor, and L'Oreal fell between 2% and 3% amid market weakness. 

Japan Indexes Extended Weekly Gain to 3%, BoJ Held Rates Steady

Benchmark indexes in Tokyo advanced, extending gains from the previous session and following a surge in overnight trading in New York. 

The Nikkei 225 stock average jumped 1.6% and the Topix index gained 1.3% as investors reviewed the latest update on inflation and the Bank of Japan's rate decisions. 

The Bank of Japan kept its short-term rate at 0.25% and left its yield curve unchanged after a policy meeting on Friday and reiterated its hawkish outlook. 

The central bank decided to take a wait-and-see approach after lifting rates twice this year, in March and July. The policy committee said it needs more time to evaluate the impact of its hawkish stand on the economy and financial markets before it decides its next move. 

The policy board also reiterated that the economy is gradually recovering, despite patches of weakness, and private consumption is on an upward trend amid improving corporate profits and rising wages. 

The yen edged 0.5% higher to 142.15 against the U.S. dollar and hovered near 2024's high. 

Japan's overall consumer price inflation rate increased to 3.0% from 2.8% in the previous three months and is increasing to the highest level since October 2023, the Ministry of Internal Affairs and Communications said Friday. 

Core inflation, which excludes volatile food by including energy prices, accelerated for the fourth month in a row to 2.8% after the cost of electricity soared 26.2% following the ending of household subsidies. 

Japan Stock Movers 

The Nikkei 225 Stock Average gained 1.6% to 37,773.11, and the broader Topix index added 1.3% to 2,649.57. 

Banks were in focus after the Bank of Japan reiterated its plan to lift rates gradually. 

Mitsubishi UFJ Financial increased 3.2% to ¥1,489.50, Sumitomo Mitsui Financial added 2.7% to ¥9,191.0, and Mizuho Financial advanced 3.1% to ¥2,916.0. 

Vehicle makers advanced following the rise in the yen after the Bank of Japan held rates steady. 

Hino Motors jumped 2.5% to ¥452.40, Toyota Motor advanced 0.7% to ¥2,629.50, Honda Motor gained 1% to ¥1,558.0, and Nissan Motor edged up 1.2% to ¥406.90. 

Tokai Carbon soared 7.2% to ¥932.90, Fanuc gained 3.7% to ¥3,966.0, and Taiyo Yuden added 2.4% to ¥2,913.50. 

Tech stocks were among the leading gainers in Friday's trading, following the surge in New York in overnight trading. 

Tokyo Electron increased 5.4% to ¥24,315.0, Advantest gained 1.2% to ¥6,289.0, Screen Holdings declined 1.5% to ¥9,956.0, and Disco Corp. advanced 2.4% to ¥36,260.0. 

Hang Seng Index Book Best Weekly Gains In Five Months, PBoC Holds Rates Steady

Stock market indexes in Hong Kong headed higher, but they declined in Shanghai after the People's Bank of China in a surprise move kept its short- and medium-term rates unchanged. 

The Hang Seng index soared 1.5% and extended this week's gains to over 5%, the best weekly gain since April 26. 

The CSI 300 index edged down 0.3% and extended weekly losses to a fraction in a holiday-shortened week as market sentiment remained weak.

The central bank in Beijing, in a surprise move, announced its plan to hold rates steady despite weak economic momentum and a stable exchange rate. 

Investors were widely anticipating a rate cut following a jumbo-sized 50 basis points cut by the U.S. Federal Reserve on Wednesday. 

The People's Bank of China held steady its one-year loan prime rate at 3.35% and five-year loan prime rate at 3.85%. 

Economists still held out for the central bank to lower rates in the months ahead, following the latest string of weak retail sales, industrial output growth, and falling investment in the property sector. 

In other economic news in Asia, the Bank of Japan held its short-term lending rate unrevised between 0.25% and 1.0%, meeting market expectations. 

China Stock Movers 

The Hang Seng Index jumped 1.5% to 18,275.14, and the CSI 300 index fell 0.3% to 3,187.38. 

Tech stocks in Hong Kong jumped, tracking a higher closing in New York in overnight trading. 

Alibaba Group gained 2.5% to HK $87.80, Tencent Holdings advanced 0.3% to HK $392.20, JD.com jumped 0.5% to HK $112.30, and Baidu added 0.2% to HK $85.45.

Banks were in focus after the People's Bank of China, in a surprise move, held steady its short- and medium-term loan rates. 

Bank of China added 1.1% to HK $3.49, Agriculture Bank of China jumped 1.9% to HK$3.66, and China Construction Bank increased 1% to HK $5.62.

Mainland-focused residential property sectors were in focus for the second day in a row, after the HKMA lowered its base rate and the People's Bank of China held steady interest rates. 

China Vanke jumped 1% to HK $4.41, China Resources Land gained 2.4% to HK $21.40, and Longfor Group advanced 1.9% to HK $8.84. 

Zhejiang Zhongxin Environmental Protection Technology Group soared 55% to 40.08 yuan on its first day of trading in Shanghai. 

The food packaging company priced its public offering at 26.80 yuan per share and raised 677 million in its initial public offering. 

India Movers: Adani Group, IDFC First, MSTC, Nykka, SJVN, Shapoorji Pallonji Group

Benchmark indexes in Mumbai advanced to new record highs and extended this year's string of multiple record highs amid solid demand from domestic and foreign investors. 

The Sensex index increased by 0.3% to 83,399.27, and the Nifty index edged up by 0.3% to 25,498.40. 

On the Mumbai stock exchange, 91 stocks traded at their 52-week highs, and 18 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 83.61 against the U.S. dollar.

FSN E-commerce Ventures gained 0.7% to ₹201.09, and the cosmetic retailer said it has expanded its same-day or next-day delivery service to 110 cities. 

The cosmetic retailer added that about 60% of orders are fulfilled on the same day. 

Shapoorji Pallonji Group of companies is likely to receive an investment of ₹2,100 crore, arranged by Deutsche Bank, ahead of the company's debt repayments. The company is also preparing to list Afcons Infrastructure on Mumbai stock exchanges through a public offering as early as next year. 

The group companies include Eureka Forbes, Forbes & Company, Gokak Textiles, Vascon Engineers, and Sterling & Wilson Renewable Energy. 

SJVN increased 0.2% to ₹129.0, and the renewable power company announced better-than-expected quarterly results. 

Standalone revenue increased to 2,533.59, and after-tax profit rose to 908.40 crore. 

The company said it has expanded its project portfolio to a record 56.8 GW, driven by 89 projects and three transmission lines. 

The power projects include 5.1 GW hydropower projects in Arunachal Pradesh, 2.4 GW Darzo Lui Pumped Storage Project in Mizoram, and securing 16 renewable projects totaling 4.5 GW of power generation capacity. 

MSTC Ltd. increased 2.2% to ₹739.0, and the government approved the sale of the company's subsidiary Ferro Scrap Nigam to Japan's Konoike Transport Company for ₹320 crore. 

IDFC First Bank increased 0.7% to ₹74.34, and the Reserve Bank of India approved the reappointment of the company's managing director, V. Vaidyanathan, effective December 19.

Reliance Infrastructure increased 3.3% to ₹293.0, and the company's board approved its plans to raise 3,014 crore through a preferential issue. 

S&P 500 Jumps to New Record High Amid Hopes of Soft Landing

Stock market indexes soared a day after the Federal Reserve delivered a larger rate cut, surprising many market watchers. 

Investors returned to add stock positions on Thursday after the Federal Reserve lowered rates for the first time in over four years, cutting down rates from a 23-year high. 

Benchmark indexes jumped more than 2% in the hopes that the Federal Reserve's efforts to engineer a so-called "soft landing" are likely to succeed. 

The Fed appears to be confident that it has tamed inflation, and policymakers pivoted to their other mandate of maximum employment. 

A larger rate cut is a double-edged sword, as lower interest rates create more demand for goods and services but also stoke inflation and wipe out hard-fought gains against rapid price hikes over the last two years. 

Investors, in a delayed reaction to the Fed's jumbo-sized rate cut of 50 basis points, bid up tech stocks, home builders, and small-cap names. 

The Fed cut its fed funds rate to a range between 4.75% and 5.0% from the 5.25% to 5.50%, and the amount of rate cut surprised investors. 

Initial jobless claims for the week ending on September 14 declined 12,000 to 219,000, the U.S. Department of Labor reported on Thursday. 

Initial claims were the lowest since May 18, and continuing claims, which lag by a week, edged lower to 1.829 million. 

Existing Home Sales Fell Sharply In August 

Existing home sales, which account for the bulk of home sales, declined 2.5% from the prior month in August to an annual rate of 3.86 million in August, according to the latest data released by the National Association of Realtors. 

August home sales were the lowest since 2010, and median home price increased 3.1% from a year ago to $416,700, the 14th consecutive month of annual price increase and a record for August home prices. 

“Home sales were disappointing again in August, but the recent development of lower mortgage rates coupled with increasing inventory is a powerful combination that will provide the environment for sales to move higher in future months,” said NAR Chief Economist Lawrence Yun. 

The inventory of unsold existing homes improved by 0.7% from the previous month to 1.35 million at the end of August, or the equivalent of 4.2 months’ supply at the current monthly sales pace.

U.S. Indexes and Treasury Yields

The S&P 500 index increased 1.6% to 5,708.29, the Nasdaq Composite rose 2.3% to 17,973.09, and the Russell 2000 index advanced 1.4% to 2,238.17. 

The yield on 2-year Treasury notes edged lower to 3.63%, 10-year Treasury notes inched up to 3.76%, and 30-year Treasury bonds inched lower to 4.09%.

WTI crude oil decreased $0.76 to $71.63 a barrel, and natural gas prices edged down 3 cents to $2.25 a thermal unit.

Gold rose by $16.57 to $2,565.78 an ounce, and silver increased by $0.18 to $31.03.

The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 100.95.

U.S. Stock Movers

Home builders jumped after the Federal Reserve lowered rates by 50 basis points in the hopes that lower mortgage rates will spur demand for new homes. 

Lennar Corp. jumped 0.9% to $190.29, NVR Homes gained 1.7% to $9,624.67, KB Home gained 1.9% to $88.31, Toll Brothers added 1.4% to $152.02, PulteGroup inched higher 0.6% to $141.88, and DR Horton added 0.9% to $195.97. 

Chipmakers and artificial intelligence stocks rallied after lower interest rates spurred investors to return to high-growth stocks. 

AMD increased 4.2% to $154.55, Apple gained 3% to $227.27, Alphabet increased 1% to $162.54, Microsoft advanced 1.5% to $437.12, and Nvidia jumped 4.5% to $118.41. 

SLB increased 2.1% to $42.27 after the company announced a partnership with Nvidia to develop AI modes for subsurface exploration and operations and data management. 

Steelcase declined 11% to $12.56 after the office furniture maker reported weaker-than-expected quarterly results. 

Revenue in the second quarter stood at $855.8 million, and the company forecast a third-quarter revenue range between $785 million and $810 million, lower than the previous upper range of $812.1 million. 

Darden Restaurants jumped 7.4% to $170.86, and the company announced weaker-than-expected quarterly results because of the weakness in its fine dining restaurants. 

The parent company of Olive Garden reported revenue in the fiscal first quarter decreased 1% to $2.76 billion, net income rose to $207.2 million from $194.5 million, and diluted earnings per share advanced to $1.74 from $1.59 a year ago. 

Same store sales at Olive Garden declined 2.9%, and the company said it is reviving its Never Ending Past Bowl later this month in the hopes of attracting more customers. 

Despite the weakness in the current quarter, the company reiterated its full-year sales forecast between $11.8 billion and $11.9 billion and earnings per share from continuing operations between $9.40 and $9.60. 

UK and Norway Held Rates Steady, Passenger Car Registration Dropped 18% In August 

European stock market indexes advanced, and investors reviewed the latest monetary policy decisions in the UK and Norway. 

Benchmark indexes in London, Paris, and Frankfurt traded higher after the U.S. Federal Reserve cut its main lending rate range by 50 basis points and signaled possible rate cuts in the year. 

The Bank of England held its main financing rate at 5.0%, as widely expected by investors. 

The central bank in the UK held rates steady after lowering rates by 25 basis points for the first time in over four years. 

The Monetary Policy Committee voted 8-1 to keep the bank rate at 5.0%, with one member dissenting to trim the rate by 0.25%. 

In a unanimous vote, the committee voted to lower the purchase of government bonds by £100 billion over the next 12 months to £558 billion. 

The Norges Bank held steady its policy rate at a sixteen-year high of 4.5%, and signaled rates are likely to remain unrevised for the remainder of the year. 

The Norges Bank left its rate unrevised for the sixth consecutive meeting in September. 

EU passenger Car Registration Plunged 18% In August 

Passenger car registration in the European Union plunged by 18.3% to 643,637 in August, reversing an increase of 0.2% in the previous month, said the European Automobile Manufacturers' Association on Thursday. 

In four leading markets in the union, car sales declined amid weakness in battery-operated vehicles. 

Passenger car registration in Germany declined 27.8%, in France fell 24.3%, in Italy dropped 13.4%, and in Spain decreased 6.5%. 

Battery electric car registration plunged 43.9% to 92,627 units, with total market share slipping to 14.4% from 21% in the previous year. Sales in Germany fell 68.8% and in France dropped 33.1%. 

Sales of battery-operated electric vehicles declined for the fourth consecutive month in a row, after rising steadily nearly every month last year. 

For the first eight months of 2024, passenger car registration increased 1.4% to 7.2 million units, after sales increased 4.5% in Spain and 3.8% in Italy but stagnated in France and Germany. 

Europe Indexes and Yields

The DAX index increased by 1.5% to 18,986.06; the CAC-40 index rose by 2.0% to 7,593.55; and the FTSE 100 index added by 1.3% to 8,363.69. 

The yield on 10-year German bonds edged higher to 2.19%, French bonds inched higher to 2.93%, the UK gilts edged up to 3.84%, and Italian bonds increased to 3.55%.

The euro edged up to $1.11; the British pound inched higher to $1.32; and the U.S. dollar weakened to 84.59 Swiss cents.

Brent crude increased $0.41 to $74.06 a barrel, and the Dutch TTF natural gas fell by €0.78 to €36.37 per MWh. 

Europe Stock Movers

Next plc increased as much as 2% before easing to a decline of 0.1% to 10,325.0 pence, and the UK apparel retailer estimated an annual profit of £1 billion. 

Ocado Group jumped 6.6% to 372.15 pence after the online grocery store operator and technology company reported strong fiscal third quarter results. 

The retail joint venture between Ocado and Marks & Spencer saw an increase in revenue of 15.5% to £658 million for the 13 weeks to September 1.

The company said active customer base increased 10.3% to 1.06 million and average weekly orders rose 14.7% to 437,000.

The company said the number of items per order edged up 0.7% to 44, and the average value of the order held steady at £120.97. 

The company revised its sales outlook to "low double-digit percentage growth" from its previous forecast of "mid-high single-digit growth" in sales in the current fiscal year. 

Close Brothers declined 4.9% to 501.70 pence, and the company said it agreed to sell its wealth management unit, Close Brothers Asset Management, to a private equity firm. 

Japan Stock Indexes Jumped 2% Following U.S. Rate Cut 

Stock market indexes in Tokyo soared following the jumbo rate cut by the U.S. Federal Reserve, and the yen weakened.

The Nikkei 225 stock average and the Topix index jumped nearly 2.5% after the latest Federal Reserve policy decision. 

The Federal Reserve lowered its key lending rate range by 50 basis points to between 4.75% and 5.0%, its first rate cut since March 20220.

In addition, the central bank also signaled additional rate cuts totaling as much as 50 basis points over the next two meetings this year. 

But Fed Chair Jerome Powell stressed that this is not the beginning of a series of 50 basis point rate cuts. 

While the larger rate cut was welcomed by investors, the move also raised concerns about the health of the U.S. economy and labor market conditions. 

The super-sized rate cut lifted markets in Asia, and the Japanese yen weakened to 142.77 and the Chinese yuan gained 0.3% to 7.07 against the U.S. dollar. 

The euro and the British pound gained 0.1% in trading to $1.12 and $1.32 following the Fed's move. 

The Nikkei 225 stock average jumped as much as 2%, the CSI 300 index added 0.8%, the Hang Seng index advanced 1.6%, and the ASX 200 index inched higher by 0.3%. 

Export-driven stocks were among the leading gainers in Tokyo's trading; investors shifted their attention to the Bank of Japan's rate decisions on Friday. 

Japan Stock Movers 

The Nikkei 225 Stock Average increased 2.4% to 37,260.42, and the Topix index added 2.3% to 2,624.53. 

Toyota Motor jumped 5.4% to ¥2,618.50, Honda Motor advanced 4.1% to ¥1,555.0, and Nissan Motor edged higher 3.8% to ¥404.40. 

Among major exporters, Sony Group gained 2.4% to ¥13,170.0, Canon advanced 1.8% to ¥4,753.0, and Panasonic increased 3.3% to ¥1,251.0. 

Seven & I Holdings edged up 0.7% to ¥2,166.0, Isetan Mitsukoshi increased 2.1% to ¥2,169.0, Fast Retailing advanced 2.8% to ¥46,070.0, and Aeon Corp. gained 1% to ¥4,057.0. 

Trading companies, also known as Sogo Shosha, also participated in Thursday's market rally. 

Mitsui & Co. Ltd. jumped 3.6% to ¥2,933.0, Marubeni Corp. advanced 2.7% to ¥2,273.0, Mitsubishi Corp. increased 2.8% to ¥2,878.50, and Itochu shot up 4.4% to ¥7,655.0. 

HSBC and BoC Pass On Smaller Rate Cut After HKMA Lowers Base Rate 

Stocks in Hong Kong rebounded after investors returned from a holiday, and the Hong Kong Monetary Authority lowered its base rate, reflecting the move by the U.S. Federal Reserve. 

The Hang Seng index jumped nearly 2% and the mainland-focused CSI 300 index advanced nearly 1%. 

The U.S. Federal Reserve lowered its key lending rate for the first time since March, with an aggressive cut of 50 basis points to between 4.75% and 5.0%. 

The Fed's latest move indicated that policymakers feel confident about the inflation trajectory towards the target rate of 2%. 

However, most of the decline in inflation in 2024 reflects the weakening of crude oil prices and imported goods from Asia, which is struggling with manufacturing overcapacity. 

The Hong Kong Monetary Authority lowered its base rate by 50 basis points to 5.25%, following the Fed's move to maintain the Hong Kong dollar's parity with the U.S. dollar. 

Still, market indexes in China and Hong Kong are down in September amid a weak earnings growth outlook and the protracted property market crisis that shows no end in sight. 

Moreover, the latest batch of economic data for August, from retail sales to fixed investment and industrial output, missed expectations set by economists. 

China Stock Movers 

The Hang Seng index soared 1.8% to 17,978.83, and the mainland-focused CSI 300 index gained 0.6% to 3,196.35. 

Property stocks advanced for the second day in a row after the HKMA lowered its lending rate by half a point. 

China Resources Land jumped 9.3% to HK $21.10, China Vanke gained 8.2% to HK $4.24, Longfor Group added 7.2% to HK $8.55, and Henderson Land added 2.2% to HK $24.85. 

Tech stocks participated in the market rally in Hong Kong following the easing of interest rates because the lower rate increases the current value of the future earnings stream. 

Alibaba Group added 3.4% to HK $85.65, Tencent Holdings advanced 2.4% to HK $389.0, and the Meituan jumped 3.7% to HK $133.30. 

Banks were in focus after HSBC Bank and Bank of China lowered their prime lending rates by 25 basis points, leading the first decline in rates in Hong Kong since November 2019. 

HSBC lowered its prime lending rate to 5.625% and lowered its savings rate for deposits that exceed HK $5,000 by 25 basis points to 0.625%. 

Bank of China's Hong Kong operations also lowered its prime lending and savings rate by a similar amount. 

BYD rose 0.5% to HK $244.0, Li Auto increased 4.3% to HK $82.30, and Xpeng edged up 0.4% to HK $35.65. 

U.S. Movers: Darden Restaurants, Home Builders, SLB, Steelcase, Tech Stocks

Home builders jumped after the Federal Reserve lowered rates by 50 basis points in the hopes that lower mortgage rates will spur demand for new homes. 

Lennar Corp. jumped 0.9% to $190.29, NVR Homes gained 1.7% to $9,624.67, KB Home gained 1.9% to $88.31, Toll Brothers added 1.4% to $152.02, PulteGroup inched higher 0.6% to $141.88, and DR Horton added 0.9% to $195.97. 

Chipmakers and artificial intelligence stocks rallied after lower interest rates spurred investors to return to high-growth stocks. 

AMD increased 4.2% to $154.55, Apple gained 3% to $227.27, Alphabet increased 1% to $162.54, Microsoft advanced 1.5% to $437.12, and Nvidia jumped 4.5% to $118.41. 

SLB increased 2.1% to $42.27 after the company announced a partnership with Nvidia to develop AI modes for subsurface exploration and operations and data management. 

Steelcase declined 11% to $12.56 after the office furniture maker reported weaker-than-expected quarterly results. 

Revenue in the second quarter stood at $855.8 million, and the company forecast a third-quarter revenue range between $785 million and $810 million, lower than the previous upper range of $812.1 million. 

Darden Restaurants jumped 7.4% to $170.86, and the company announced weaker-than-expected quarterly results because of the weakness in its fine dining restaurants. 

The parent company of Olive Garden reported revenue in the fiscal first quarter decreased 1% to $2.76 billion, net income rose to $207.2 million from $194.5 million, and diluted earnings per share advanced to $1.74 from $1.59 a year ago. 

Same store sales at Olive Garden declined 2.9%, and the company said it is reviving its Never Ending Past Bowl later this month in the hopes of attracting more customers. 

Despite the weakness in the current quarter, the company reiterated its full-year sales forecast between $11.8 billion and $11.9 billion and earnings per share from continuing operations between $9.40 and $9.60. 

S&P 500, Nasdaq, and Russell 2000 Jump Between 1.5% and 2.5%

Investors returned to add stock positions on Thursday after the Federal Reserve lowered rates for the first time in over four years. 

The S&P 500 index and the Nasdaq Composite jumped more than 1.5% in the hopes that the Federal Reserve's efforts to engineer a so-called "soft landing" are likely to succeed, where the central bank manages to cool the economy and moderates inflation without causing a recession. 

Investors, in a delayed reaction to the Fed's jumbo-sized rate cut of 50 basis points, bid up tech stocks, home builders, and small-cap names. 

The Fed cut its fed funds rate to a range between 4.75% and 5.0% from the 5.25% to 5.50%, and the amount of rate cut surprised investors. 

Initial jobless claims for the week ending on September 14 declined 12,000 to 219,000, the U.S. Department of Labor reported on Thursday. 

Initial claims were the lowest since May 18, and continuing claims, which lag by a week, edged lower to 1.829 million. 

U.S. Indexes and Treasury Yields

The S&P 500 index increased 1.6% to 5,708.29, the Nasdaq Composite rose 2.3% to 17,973.09, and the Russell 2000 index advanced 1.4% to 2,238.17. 

The yield on 2-year Treasury notes edged lower to 3.63%, 10-year Treasury notes inched up to 3.76%, and 30-year Treasury bonds inched lower to 4.09%.

WTI crude oil decreased $0.76 to $71.63 a barrel, and natural gas prices edged down 3 cents to $2.25 a thermal unit.

Gold rose by $16.57 to $2,565.78 an ounce, and silver increased by $0.18 to $31.03.

The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 100.95.

U.S. Stock Movers

Home builders jumped after the Federal Reserve lowered rates by 50 basis points in the hopes that lower mortgage rates will spur demand for new homes. 

Lennar Corp. jumped 0.9% to $190.29, NVR Homes gained 1.7% to $9,624.67, KB Home gained 1.9% to $88.31, Toll Brothers added 1.4% to $152.02, PulteGroup inched higher 0.6% to $141.88, and DR Horton added 0.9% to $195.97. 

Chipmakers and artificial intelligence stocks rallied after lower interest rates spurred investors to return to high-growth stocks. 

AMD increased 4.2% to $154.55, Apple gained 3% to $227.27, Alphabet increased 1% to $162.54, Microsoft advanced 1.5% to $437.12, and Nvidia jumped 4.5% to $118.41. 

SLB increased 2.1% to $42.27 after the company announced a partnership with Nvidia to develop AI modes for subsurface exploration and operations and data management. 

Steelcase declined 11% to $12.56 after the office furniture maker reported weaker-than-expected quarterly results. 

Revenue in the second quarter stood at $855.8 million, and the company forecast a third-quarter revenue range between $785 million and $810 million, lower than the previous upper range of $812.1 million. 

Darden Restaurants jumped 7.4% to $170.86, and the company announced weaker-than-expected quarterly results because of the weakness in its fine dining restaurants. 

The parent company of Olive Garden reported revenue in the fiscal first quarter decreased 1% to $2.76 billion, net income rose to $207.2 million from $194.5 million, and diluted earnings per share advanced to $1.74 from $1.59 a year ago. 

Same store sales at Olive Garden declined 2.9%, and the company said it is reviving its Never Ending Past Bowl later this month in the hopes of attracting more customers. 

Despite the weakness in the current quarter, the company reiterated its full-year sales forecast between $11.8 billion and $11.9 billion and earnings per share from continuing operations between $9.40 and $9.60. 

Europe Movers: Close Brothers, Next plc, Ocado Group

European markets advanced after the Federal Reserve cut its lending rate range by 50 basis points. 

The Bank of England and the Norges Bank held steady their interest rate range. 

The DAX index increased by 1.5% to 18,986.06; the CAC-40 index rose by 2.0% to 7,593.55; and the FTSE 100 index added by 1.3% to 8,363.69. 

The yield on 10-year German bonds edged higher to 2.19%, French bonds inched higher to 2.93%, the UK gilts edged up to 3.84%, and Italian bonds increased to 3.55%.

Next plc increased as much as 2% before easing to a decline of 0.1% to 10,325.0 pence, and the UK apparel retailer estimated an annual profit of £1 billion. 

Ocado Group jumped 6.6% to 372.15 pence after the online grocery store operator and technology company reported strong fiscal third quarter results. 

The retail joint venture between Ocado and Marks & Spencer saw an increase in revenue of 15.5% to £658 million for the 13 weeks to September 1.

The company said active customer base increased 10.3% to 1.06 million and average weekly orders rose 14.7% to 437,000.

The company said the number of items per order edged up 0.7% to 44, and the average value of the order held steady at £120.97. 

The company revised its sales outlook to "low double-digit percentage growth" from its previous forecast of "mid-high single-digit growth" in sales in the current fiscal year. 

Close Brothers declined 4.9% to 501.70 pence, and the company said it agreed to sell its wealth management unit, Close Brothers Asset Management, to a private equity firm. 

BoE and Norges Bank Held Rates Steady, Passenger Car Registration Dropped 18% In August

European stock market indexes advanced, and investors reviewed the latest monetary policy decisions in the UK and Norway. 

Benchmark indexes in London, Paris, and Frankfurt traded higher after the U.S. Federal Reserve cut its main lending rate range by 50 basis points and signaled possible rate cuts in the year. 

The Bank of England held its main financing rate at 5.0%, as widely expected by investors. 

The central bank in the UK held rates steady after lowering rates by 25 basis points for the first time in over four years. 

The Monetary Policy Committee voted 8-1 to keep the bank rate at 5.0%, with one member dissenting to trim the rate by 0.25%. 

In a unanimous vote, the committee voted to lower the purchase of government bonds by £100 billion over the next 12 months to £558 billion. 

The Norges Bank held steady its policy rate at a sixteen-year high of 4.5%, and signaled rates are likely to remain unrevised for the remainder of the year. 

The Norges Bank left its rate unrevised for the sixth consecutive meeting in September. 

EU passenger Car Registration Plunged 18% In August 

Passenger car registration in the European Union plunged by 18.3% to 643,637 in August, reversing an increase of 0.2% in the previous month, said the European Automobile Manufacturers' Association on Thursday. 

In four leading markets in the union, car sales declined amid weakness in battery-operated vehicles. 

Passenger car registration in Germany declined 27.8%, in France fell 24.3%, in Italy dropped 13.4%, and in Spain decreased 6.5%. 

Battery electric car registration plunged 43.9% to 92,627 units, with total market share slipping to 14.4% from 21% in the previous year. Sales in Germany fell 68.8% and in France dropped 33.1%. 

Sales of battery-operated electric vehicles declined for the fourth consecutive month in a row, after rising steadily nearly every month last year. 

For the first eight months of 2024, passenger car registration increased 1.4% to 7.2 million units, after sales increased 4.5% in Spain and 3.8% in Italy but stagnated in France and Germany. 

Europe Indexes and Yields

The DAX index increased by 1.5% to 18,986.06; the CAC-40 index rose by 2.0% to 7,593.55; and the FTSE 100 index added by 1.3% to 8,363.69. 

The yield on 10-year German bonds edged higher to 2.19%, French bonds inched higher to 2.93%, the UK gilts edged up to 3.84%, and Italian bonds increased to 3.55%.

The euro edged up to $1.11; the British pound inched higher to $1.32; and the U.S. dollar weakened to 84.59 Swiss cents.

Brent crude increased $0.41 to $74.06 a barrel, and the Dutch TTF natural gas fell by €0.78 to €36.37 per MWh. 

Europe Stock Movers

Next plc increased as much as 2% before easing to a decline of 0.1% to 10,325.0 pence, and the UK apparel retailer estimated an annual profit of £1 billion. 

Ocado Group jumped 6.6% to 372.15 pence after the online grocery store operator and technology company reported strong fiscal third quarter results. 

The retail joint venture between Ocado and Marks & Spencer saw an increase in revenue of 15.5% to £658 million for the 13 weeks to September 1.

The company said active customer base increased 10.3% to 1.06 million and average weekly orders rose 14.7% to 437,000.

The company said the number of items per order edged up 0.7% to 44, and the average value of the order held steady at £120.97. 

The company revised its sales outlook to "low double-digit percentage growth" from its previous forecast of "mid-high single-digit growth" in sales in the current fiscal year. 

Close Brothers declined 4.9% to 501.70 pence, and the company said it agreed to sell its wealth management unit, Close Brothers Asset Management, to a private equity firm. 

Japan Stock Indexes Jumped 2% Following U.S. Rate Cut

Stock market indexes in Tokyo soared following the jumbo rate cut by the U.S. Federal Reserve, and the yen weakened.

The Nikkei 225 stock average and the Topix index jumped nearly 2.5% after the latest Federal Reserve policy decision. 

The Federal Reserve lowered its key lending rate range by 50 basis points to between 4.75% and 5.0%, its first rate cut since March 20220.

In addition, the central bank also signaled additional rate cuts totaling as much as 50 basis points over the next two meetings this year. 

But Fed Chair Jerome Powell stressed that this is not the beginning of a series of 50 basis point rate cuts. 

While the larger rate cut was welcomed by investors, the move also raised concerns about the health of the U.S. economy and labor market conditions. 

The super-sized rate cut lifted markets in Asia, and the Japanese yen weakened to 142.77 and the Chinese yuan gained 0.3% to 7.07 against the U.S. dollar. 

The euro and the British pound gained 0.1% in trading to $1.12 and $1.32 following the Fed's move. 

The Nikkei 225 stock average jumped as much as 2%, the CSI 300 index added 0.8%, the Hang Seng index advanced 1.6%, and the ASX 200 index inched higher by 0.3%. 

Export-driven stocks were among the leading gainers in Tokyo's trading; investors shifted their attention to the Bank of Japan's rate decisions on Friday. 

Japan Stock Movers 

The Nikkei 225 Stock Average increased 2.4% to 37,260.42, and the Topix index added 2.3% to 2,624.53. 

Toyota Motor jumped 5.4% to ¥2,618.50, Honda Motor advanced 4.1% to ¥1,555.0, and Nissan Motor edged higher 3.8% to ¥404.40. 

Among major exporters, Sony Group gained 2.4% to ¥13,170.0, Canon advanced 1.8% to ¥4,753.0, and Panasonic increased 3.3% to ¥1,251.0. 

Seven & I Holdings edged up 0.7% to ¥2,166.0, Isetan Mitsukoshi increased 2.1% to ¥2,169.0, Fast Retailing advanced 2.8% to ¥46,070.0, and Aeon Corp. gained 1% to ¥4,057.0. 

Trading companies, also known as Sogo Shosha, also participated in Thursday's market rally. 

Mitsui & Co. Ltd. jumped 3.6% to ¥2,933.0, Marubeni Corp. advanced 2.7% to ¥2,273.0, Mitsubishi Corp. increased 2.8% to ¥2,878.50, and Itochu shot up 4.4% to ¥7,655.0.