Market Update
Tech Rebound Lifts Broader Market Indexes On Wall Street
Alexander Garcia
25 Jun, 2024
Miami
Investors returned to add tech stock exposure, driving the market indexes higher, and investors adjust allocations ahead to corporate quarterly results in two weeks.
Major averages on Wall Street rebounded in Tuesday's trading a day after investors rotated out of semiconductor stocks into the energy and financial services sectors.
The S&P 500 index and the Nasdaq Composite inched higher in early trading, and investors debated their corporate earnings outlook ahead of the end of the quarter this week.
Tech stocks turned volatile after Nvidia dropped 6% in the previous session and extended the 3-day selloff to more than 13%.
However, some investors are still looking for the stock to reach as high as $155 and beyond, as the company's earnings continue to surge at a rapid pace as Microsoft, Meta, Google, and Amazon make multi-billion-dollar investments in artificial intelligence infrastructure.
The Case-Shiller index, the controversial index tracking home prices in the 20 largest metropolitan areas, showed U.S. home price increase slowed to a 7.2% annual pace in April from 7.5% in March.
S&P Global reported the update on the metropolitan home price index.
Later in the week, investors are looking forward to the release of international trade balances, durable goods orders, and the third and final estimate for first quarter GDP growth.
Investors are also awaiting the release of consumer spending and income and the PCE price indicator for May, the preferred measure of inflation by the Fed’s policymakers.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.2% to 5,451.35, and the Nasdaq Composite rose 1.1% to 17,687.46.
The yield on 2-year Treasury notes edged lower to 4.74%, 10-year Treasury notes decreased to 4.25%, and 30-year Treasury bonds edged higher to 4.39%.
WTI crude oil decreased $0.56 to $81.08 a barrel, and natural gas prices fell 2 cents to $2.75 a thermal unit.
Gold decreased by $12.53 to $2,318.32 an ounce, and silver declined 63 cents to $28.18.
The dollar index, which weighs the U.S. currency against a basket of foreign currencies, edged lower to 105.65.
U.S. Stock Movers
Pool Corp. declined 7.3% to $313.10 after the wholesale pool supply distributor lowered its full-year earnings outlook.
Sea Limited decreased 2.8% to $73.75, and the Singapore-based online games developer was downgraded to "neutral" from "overweight" by J.P. Morgan.
SolarEdge Technologies declined 15.8% to $28.07 after the company said it plans to raise $300 million through the sale of convertible notes expiring in 2029.
Carnival Corp. rose 5.3% to $17.27 after the cruise line operator reported stronger-than-estimated second quarter results, and the company lifted its net yield and adjusted its net income outlook for the year.
The largest cruise company also said bookings for 2025 are ahead of those for 2024.
Nvidia rebounded 3% to $121.67 after falling more than 13% in the last three trading sessions and briefly surpassing Microsoft's market cap.
In yesterday's trading, Nvidia declined more than 6%, its worst one-day decline since April, dragging down with it other semiconductor stocks and the Nasdaq Composite.
Microsoft increased 0.2% to $448.52, and the European Commission, the executive arm of the European Union, said that the software company is "abusive" bundling its office productivity software, Office 365, with messaging and collaboration software, Team.
European Markets Turn Lower Amid Rising Election Jitters In France and the UK
European markets turned lower amid election anxieties and a weak economic outlook.
Benchmark indexes in Paris and London traded down nearly 1% as the two European nations headed for elections.
The U.K.'s Conservative Party is likely to suffer significant losses as voter sentiment swings in favor of the Labour Party after running the government since 2010.
In France, the far-right and far-left parties are expected to make significant gains in the snap elections scheduled for June 30 and July 7, altering the balance of power in the legislative assembly.
Prime Minister Emmanuel Macron confirmed in a letter to the French people that he plans to stay in office and complete his term until 2027, regardless of the election outcome.
On the light day of economic news, Spain's statistical agency confirmed the economy expanded at a faster-than-estimated pace of 0.8% in the first quarter compared to the previous quarter.
In the initial estimate, Spain's GDP growth was estimated to grow at a rate of 0.7%.
Europe Indexes and Yields
The DAX index decreased by 0.8% to 18,177.62; the CAC-40 index fell by 0.6% to 7,662.43; and the FTSE 100 index fell by 0.4% to 8,247.79.
The yield on 10-year German bonds edged lower to 2.38%. French bonds inched lower to 3.09%; the UK gilts edged lower to 4.05%; and Italian bonds increased to 3.90%.
The euro edged lower to $1.071; the British pound inched higher to $1.268; and the U.S. dollar advanced to 89.39 Swiss cents.
Brent crude decreased $0.84 to $85.17 a barrel, and the Dutch TTF natural gas fell by €0.7 to €34.52 per MWh.
Europe Stock Movers
Novo Nordisk added 2.1% to DKK 1,008.80, and the Danish pharmaceutical company said it plans to invest $4.1 billion, or 27 billion Danish kroner, to build a new manufacturing plant in Clayton, North Carolina.
Airbus declined 12.3% to €130.44 after the aerospace company lowered its 2024 financial targets and announced a one-time charge of €900 million because of supply chain difficulties and unexpected costs in its space division.
After the Airbus announcement, MTU Aerospace declined 3.5% to €216.80, and Rolls Royce fell 4.5% to 450.20 pence.
Merck KGaA dropped 8.5% to €153.15 after the German pharmaceutical company canceled a late-stage trial for a cancer drug.
Saga PLC jumped 1.6% to 114.70 pence after the cruise line operator focused on the 50-year-old and older age group of adults, saying revenue in the first four months to April was strong and met management expectations.
The Yen's Decline Raises the Risk of Another Market Intervention
The weakness in the yen supported the broader market advance for the second consecutive session on an improved profit outlook for the companies in the export sector.
The Topix index soared nearly 2%, and the Nikkie 225 index advanced 1%.
Investors also looked ahead to the release of retail sales, industrial output, and jobless rate data later in the busy week of economic updates.
Market indexes in Tokyo have faced persistent selling pressure amid growing uncertainty about the Tokyo Stock Exchange's drive to convince its member companies to accelerate corporate governance reforms.
Moreover, the persistent decline in the yen is also weighing on the market. While the cheaper yen is likely to boost the bottom line of exporting companies, in the long run, the yen's weakness is likely to fuel inflation and dampen consumer spending.
The yen edged down to 159.43 against the U.S. dollar, the level that generally prompts the Bank of Japan to conduct market intervention.
The yen drifted lower after the latest Bank of Japan's policy meeting minutes showed members are divided about the future course of the rate path.
In addition, the Bank of Japan is committed to keeping purchasing Japanese government bonds at the current rate until the next meeting in July.
About a month ago, the Bank of Japan spent near $62 billion on forcing the yen back to 153 after the currency dropped to 158, a three-decade low in late April.
However, the central bank is not likely to conduct market intervention in the near future and may let the currency find its lower low, which could be around 163.
Japan Stock Movers
The Nikkei 225 stock average added 1% to 39,186.38, and the Topix index advanced 1.8% to 2,788.22.
Automobile exporters were among the leading gainers after the yen approached a 34-year low.
Toyota Motor, Nissan Motor, and Honda Motor advanced between 1% and 3%.
Mitsubishi UFJ, Mizuho Financial, and Sumitomo Mitsui Financial gained between 1% and 5%.
SoftBank, Advantest, Tokyo Electron, and Screen Holdings declined between a loss of 0.3% and a gain of 0.4%.
Bargain Hunter Returned to China Markets with Modest Expectations
Bargain hunters returned in search of attractive stocks after market indexes in Hong Kong and Shanghai declined for three days in a row.
The CSI 300 and the Hang Seng indexes retained upward bias, and investors looked for bargains in the technology, banking, and real estate sectors.
Investors have been on the defensive in the last two months amid a weak economic outlook and a lack of earnings visibility after indexes ran up in the first quarter.
Moreover, market confidence has been waning after policymakers failed to announce substantial and deep reforms that could improve consumer and investor confidence.
Foreign investors have been net sellers of Chinese stocks this month as investors lose confidence that Beijing policymakers have run out of options for reviving market confidence amid a fragile economic recovery and persistent real estate market decline.
Investors are looking forward to the Communist Party's third plenum next week, but most investors are not hoping for concrete measures to be announced after the meeting.
Chinese premier Li Qiang, in a speech delivered at an international forum in the northeast city of Dalian, reiterated the annual economic growth target of 5%.
Premier Qiang also dismissed talks of industrial overcapacity and highlighted the risks of economic decoupling from the West.
China Stock Movers
The CSI 300 index decreased 0.2% to 3,471.75 and the Hang Seng Index rose 0.5% to 18,124.80.
China Resources Land jumped 3.5% to HK$27.40, China Vanke jumped 2.2% to HK$4.97, and Longfor Group jumped 3.5% to HK$11.54.
Li Auto edged up 0.7% to HK$70.50, BYD gained 1.3% to HK$240.60, and Xpeng added 0.6% to HK$30.60.
Tencent Holdings jumped 0.4% to HK$382.0, Alibaba Group Holdings advanced 0.7% to $72.75, and Meituan jumped 2% to HK$117.80.
U.S. Major Averages Rebounded Amid High Tech Stock Valuation Worries
Barry Adams
25 Jun, 2024
New York City
Major averages on Wall Street rebounded in Tuesday's trading a day after investors rotated out of semiconductor stocks into the energy and financial services sectors.
The S&P 500 index and the Nasdaq Composite inched higher in early trading, and investors debated their corporate earnings outlook ahead of the end of the quarter this week.
The Case-Shiller index, the controversial index tracking home prices in the 20 largest metropolitan areas, showed home prices slowed to a 7.2% annual pace in April from 7.5% in March.
S&P Global reported the update on the metropolitan home price index.
Later in the week, investors are looking forward to the release of international trade balances, durable goods orders, and the third and final estimate for first quarter GDP growth.
Investors are also awaiting the release of consumer spending and income and the PCE price indicator for May, the preferred measure of inflation by the Fed’s policymakers.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.3% to 5,461.39, and the Nasdaq Composite rose 0.8% to 17,638.86.
The yield on 2-year Treasury notes edged lower to 4.74%, 10-year Treasury notes decreased to 4.25%, and 30-year Treasury bonds edged higher to 4.39%.
WTI crude oil decreased $0.46 to $81.18 a barrel, and natural gas prices fell 2 cents to $2.75 a thermal unit.
Gold decreased by $9.03 to $2,321.27 an ounce, and silver declined 39 cents to $29.15.
The dollar index, which weighs the U.S. currency against a basket of foreign currencies, edged lower to 105.65.
U.S. Stock Movers
Pool Corp. declined 7.3% to $313.10 after the wholesale pool supply distributor lowered its full-year earnings outlook.
Sea Limited decreased 2.8% to $73.75, and the Singapore-based online games developer was downgraded to "neutral" from "overweight" by J.P. Morgan.
SolarEdge Technologies declined 15.8% to $28.07 after the company said it plans to raise $300 million through the sale of convertible notes expiring in 2029.
Carnival Corp. rose 5.3% to $17.27 after the cruise line operator reported stronger-than-estimated second quarter results, and the company lifted its net yield and adjusted its net income outlook for the year.
The largest cruise company also said bookings for 2025 are ahead of those for 2024.
Nvidia rebounded 3% to $121.67 after falling more than 13% in the last three trading sessions and briefly surpassing Microsoft's market cap.
In yesterday's trading, Nvidia declined more than 6%, its worst one-day decline since April, dragging down with it other semiconductor stocks and the Nasdaq Composite.
Microsoft increased 0.2% to $448.52, and the European Commission, the executive arm of the European Union, said that the software company is "abusive" bundling its office productivity software, Office 365, with messaging and collaboration software, Team.
U.S. Movers: Carnival Corp, Microsoft, Nvidia, Pool Corp, Sea Limited
Scott Peters
25 Jun, 2024
New York City
Pool Corp. declined 7.3% to $313.10 after the wholesale pool supply distributor lowered its full-year earnings outlook.
Sea Limited decreased 2.8% to $73.75 after the Singapore-based online games developer was downgraded by J.P. Morgan to "neutral" from "overweight."
SolarEdge Technologies declined 15.8% to $28.07 after the company said it plans to raise $300 million through the sale of convertible notes expiring in 2029.
Carnival Corp. rose 5.3% to $17.27 after the cruise line operator reported stronger-than-estimated second quarter results, and the company lifted its net yield and adjusted its net income outlook for the year.
The largest cruise company also said bookings for 2025 are ahead of those for 2024.
Nvidia rebounded 3% to $121.67 after falling more than 13% in the last three trading sessions and briefly surpassing Microsoft's market cap.
In yesterday's trading, Nvidia declined more than 6%, its worst one-day decline since April, dragging down with it other semiconductor stocks and the Nasdaq Composite.
Microsoft increased 0.2% to $448.52, and the European Commission, the executive arm of the European Union, said that the software company is "abusive" bundling its office productivity software, Office 365, with messaging and collaboration software, Team.
Europe Movers: Airbus, Merck, Novo Nordisk, Saga
Inga Muller
25 Jun, 2024
Frankfurt
European markets turned lower ahead of the elections in France and the UK starting this Sunday.
Polls are predicting landslide victories for opposition parties in both countries as voters direct their frustration with the high cost of living, illegal migration, and prolonged war in Ukraine.
The DAX index decreased by 0.9% to 18,151.15; the CAC-40 index fell by 0.7% to 7,649.61; and the FTSE 100 index fell by 0.2% to 8,264.47.
The yield on 10-year German bonds edged lower to 2.38%. French bonds inched lower to 3.09%; the UK gilts edged lower to 4.05%; and Italian bonds increased to 3.90%.
Novo Nordisk added 2.1% to DKK 1,008.80, and the Danish pharmaceutical company said it plans to invest $4.1 billion, or 27 billion Danish kroner, to build a new manufacturing plant in Clayton, North Carolina.
Airbus declined 12.3% to €130.44 after the aerospace company lowered its 2024 financial targets and announced a one-time charge of €900 million because of supply chain difficulties and unexpected costs in its space division.
After the Airbus announcement, MTU Aerospace declined 3.5% to €216.80, and Rolls Royce fell 4.5% to 450.20 pence.
Merck KGaA dropped 8.5% to €153.15 after the German pharmaceutical company canceled a late-stage trial for a cancer drug.
Saga PLC jumped 1.6% to 114.70 pence after the cruise line operator focused on the 50-year-old and older age group of adults, saying revenue in the first four months to April was strong and met management expectations.
European Markets Turn Lower Amid Rising Election Jitters In France and the UK
Bridgette Randall
25 Jun, 2024
Frankfurt
European markets turned lower amid election anxieties and a weak economic outlook.
Benchmark indexes in Paris and London traded down nearly 1% as the two European nations headed for elections.
The U.K.'s Conservative Party is likely to suffer significant losses as voter sentiment swings in favor of the Labour Party after running the government since 2010.
In France, the far-right and far-left parties are expected to make significant gains in the snap elections scheduled for June 30 and July 7, altering the balance of power in the legislative assembly.
Prime Minister Emmanuel Macron confirmed in a letter to the French people that he plans to stay in office and complete his term until 2027, regardless of the election outcome.
On the light day of economic news, Spain's statistical agency confirmed the economy expanded at a faster-than-estimated pace of 0.8% in the first quarter compared to the previous quarter.
In the initial estimate, Spain's GDP growth was estimated to grow at a rate of 0.7%.
Europe Indexes and Yields
The DAX index decreased by 0.9% to 18,151.15; the CAC-40 index fell by 0.7% to 7,649.61; and the FTSE 100 index fell by 0.2% to 8,264.47.
The yield on 10-year German bonds edged lower to 2.38%. French bonds inched lower to 3.09%; the UK gilts edged lower to 4.05%; and Italian bonds increased to 3.90%.
The euro edged lower to $1.071; the British pound inched higher to $1.268; and the U.S. dollar advanced to 89.39 Swiss cents.
Brent crude decreased $0.57 to $85.43 a barrel, and the Dutch TTF natural gas fell by €0.7 to €34.52 per MWh.
Europe Stock Movers
Novo Nordisk added 2.1% to DKK 1,008.80, and the Danish pharmaceutical company said it plans to invest $4.1 billion, or 27 billion Danish kroner, to build a new manufacturing plant in Clayton, North Carolina.
Airbus declined 12.3% to €130.44 after the aerospace company lowered its 2024 financial targets and announced a one-time charge of €900 million because of supply chain difficulties and unexpected costs in its space division.
After the Airbus announcement, MTU Aerospace declined 3.5% to €216.80, and Rolls Royce fell 4.5% to 450.20 pence.
Merck KGaA dropped 8.5% to €153.15 after the German pharmaceutical company canceled a late-stage trial for a cancer drug.
Saga PLC jumped 1.6% to 114.70 pence after the cruise line operator focused on the 50-year-old and older age group of adults, saying revenue in the first four months to April was strong and met management expectations.
Japan Stocks Rebound, The Decline In Yen Raises the Risk of Another Market Intervention
Akira Ito
25 Jun, 2024
Tokyo
The weakness in the yen supported the broader market advance for the second consecutive session on an improved profit outlook for the companies in the export sector.
The Topix index soared nearly 2%, and the Nikkie 225 index advanced 1%.
Investors also looked ahead to the release of retail sales, industrial output, and jobless rate data later in the busy week of economic updates.
Market indexes in Tokyo have faced persistent selling pressure amid growing uncertainty about the Tokyo Stock Exchange's drive to convince its member companies to accelerate corporate governance reforms.
Moreover, the persistent decline in the yen is also weighing on the market. While the cheaper yen is likely to boost the bottom line of exporting companies, in the long run, the yen's weakness is likely to fuel inflation and dampen consumer spending.
The yen edged down to 159.43 against the U.S. dollar, the level that generally prompts the Bank of Japan to conduct market intervention.
The yen drifted lower after the latest Bank of Japan's policy meeting minutes showed members are divided about the future course of the rate path.
In addition, the Bank of Japan is committed to keeping purchasing Japanese government bonds at the current rate until the next meeting in July.
About a month ago, the Bank of Japan spent near $62 billion on forcing the yen back to 153 after the currency dropped to 158, a three-decade low in late April.
However, the central bank is not likely to conduct market intervention in the near future and may let the currency find its lower low, which could be around 163.
Japan Stock Movers
The Nikkei 225 stock average added 1% to 39,186.38, and the Topix index advanced 1.8% to 2,788.22.
Automobile exporters were among the leading gainers after the yen approached a 34-year low.
Toyota Motor, Nissan Motor, and Honda Motor advanced between 1% and 3%.
Mitsubishi UFJ, Mizuho Financial, and Sumitomo Mitsui Financial gained between 1% and 5%.
SoftBank, Advantest, Tokyo Electron, and Screen Holdings declined between a loss of 0.3% and a gain of 0.4%.
Bargain Hunter Returned to China Markets with Modest Expectations
Li Chen
25 Jun, 2024
Hong Kong
Bargain hunters returned in search of attractive stocks after market indexes in Hong Kong and Shanghai declined for three days in a row.
The CSI 300 and the Hang Seng indexes retained upward bias, and investors looked for bargains in the technology, banking, and real estate sectors.
Investors have been on the defensive in the last two months amid a weak economic outlook and a lack of earnings visibility after indexes ran up in the first quarter.
Moreover, market confidence has been waning after policymakers failed to announce substantial and deep reforms that could improve consumer and investor confidence.
Foreign investors have been net sellers of Chinese stocks this month as investors lose confidence that Beijing policymakers have run out of options for reviving market confidence amid a fragile economic recovery and persistent real estate market decline.
Investors are looking forward to the Communist Party's third plenum next week, but most investors are not hoping for concrete measures to be announced after the meeting.
Chinese premier Li Qiang, in a speech delivered at an international forum in the northeast city of Dalian, reiterated the annual economic growth target of 5%.
Premier Qiang also dismissed talks of industrial overcapacity and highlighted the risks of economic decoupling from the West.
China Stock Movers
The CSI 300 index decreased 0.2% to 3,471.75 and the Hang Seng Index rose 0.5% to 18,124.80.
China Resources Land jumped 3.5% to HK$27.40, China Vanke jumped 2.2% to HK$4.97, and Longfor Group jumped 3.5% to HK$11.54.
Li Auto edged up 0.7% to HK$70.50, BYD gained 1.3% to HK$240.60, and Xpeng added 0.6% to HK$30.60.
Tencent Holdings jumped 0.4% to HK$382.0, Alibaba Group Holdings advanced 0.7% to $72.75, and Meituan jumped 2% to HK$117.80.
India Movers: AU Small Finance, Borosil, Happiest Minds, Interglobe Aviation, KIMC, RBL Bank, Swan Energy
Arun Goswami
25 Jun, 2024
Mumbai
India's current account deficit shrank in the previous financial year due to improved net international trade balances and foreign remittances.
The government's auction for 5G airwaves is expected to draw record fees from telecom companies.
The Sensex index increased by 0.3% to 77,532.23, and the Nifty index rose by 0.3% to 23,595.35.
On the Mumbai stock exchange, 212 stocks traded at their 52-week highs, and 22 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds inched lower to 6.97%, and the Indian rupee edged lower at ₹83.45 against the U.S. dollar.
Happiest Minds Technology declined 7.7% to ₹851.55 on reports that chairman Ashok Soota is looking to sell a 6% stake in the company with a floor price of ₹826 per share and raise ₹754 crore.
Interglobe Aviation edged up a fraction to ₹4,315.50, and the carrier said it plans to double the number of non-stop flights to 14 between Mumbai and Jeddah, Saudi Arabia, from August 15.
Krishna Institute of Medical Sciences increased 4.3% to ₹2,142.50, and the company's board plans to meet on June 28 to consider the sub-division of its equity shares from one share of ₹10 to five equity shares of ₹2 per share.
AU Small Finance Bank increased 0.9% to ₹684.85, and the company scheduled a board meeting on June 27 to raise additional capital from institutional investors.
Borosil Ltd. increased 3.8% to ₹357.85, and the company launched a secondary stock offering to raise ₹250 crore with a floor price of ₹331.75 per share.
RBL Bank increased 0.3% to ₹257.16, and the bank's board is scheduled to meet on June 27 to consider the sale of debt securities through a private placement.
Swan Energy increased 1.7% to ₹633.90, and the company plans to acquire a 49% stake in Triumph Offshore Private Ltd. from Indian Farmers Fertilisers Cooperative for ₹440 crore.
AI-fueled U.S. Tech Rally Halted After Two Months, European Markets Closed Higher
Alexander Garcia
24 Jun, 2024
Miami
Market indexes struggled to advance on Monday as investors turned cautious after a two-month market rally fueled by artificial intelligence-linked stocks paused.
The S&P 500 index and the Nasdaq Composite fell following the advance in the last eight of the nine consecutive weeks, and for the year, both indexes are up 15% and 19.2%, respectively.
Market heavyweight Nvidia declined 6% and extended three-day loss to more than 12% after investors turned cautious following the rapid rise of the stock this year.
For the year so far, Nvidia jumped 150% as of this afternoon trading, as the stock scaled back from its peak f $135.58 last Tuesday.
The yield on the 10-year Treasury held steady ahead of a flood of economic data later this week, and crude oil prices hovered near a two-month high.
This week, investors in the U.S. are looking forward to the release of international trade balances, durable goods orders, and the third and final estimate for first quarter GDP growth.
Investors are also awaiting the release of consumer spending and income and the PCE price indicator for May, the preferred measure of inflation by the Fed’s policymakers.
U.S. Indexes and Treasury Yields
The S&P 500 index decreased 0.1% to 5,458.93, and the Nasdaq Composite fell 0.8% to 17,540.03.
The yield on 2-year Treasury notes edged lower to 4.75%, 10-year Treasury notes decreased to 4.26%, and 30-year Treasury bonds edged higher to 4.41%.
WTI crude oil decreased $0.01 to $80.58 a barrel, and natural gas prices fell 2 cents to $2.69 a thermal unit.
Gold increased by $6.32 to $2,328.32 an ounce, and silver declined 1 cent to $29.55.
The dollar index, which weighs the U.S. currency against a basket of foreign currencies, edged lower to 105.48.
U.S. Stock Movers
RXO soared 10.6% to $22.35 after the trucking company said it plans to acquire Coyote Logistics, a freight brokerage business, from UPS for $1.03 billion.
"The addition of Coyote’s customer base will diversify RXO’s vertical mix and will increase the number of customers that do more than $1 million in business with us by approximately 80%.
This acquisition will provide RXO with both immediate and long-term opportunities for revenue and earnings growth and will generate significant returns for shareholders," said Drew Wilkerson, chief executive of RXO.
UPS jumped 0.4% to $137.30.
Apple Inc. declined a fraction to $207.49 after regulators in the European Union said that the company is in breach of the new Digital Markets Act.
The regulators said that Apple's App Store rules "prevent app developers from freely steering consumers to alternative channels for offers and content."
Resmed Inc. declined 6.2% to $193.02 on the news last week that Eli Lilly's tirzepatide weight loss drug lowered the severity of obstructive apnea.
Eli Lilly rose 0.4% to $887.64.
European Markets Rebound Amid French Political Uncertainty
European markets headed higher as investors looked ahead to the first round of the French election this weekend, and bond yields showed elevated stress.
Early polls indicate French President Emmanuel Macron's party is likely to lose its grip on power amid growing uneasiness about immigration, the high cost of living, and economic uncertainty.
Meanwhile, investors are worried that the rise of far-right parties in the French parliament is likely to alter the government's domestic economic priorities and plans to lower the budget deficit to meet the 2% target set by the European Union.
On the economic front this week, Germany and France are scheduled to release their jobless rates, and the central banks of Sweden and Turkey are expected to hold their rates steady.
In addition, France, Italy, and Spain are set to release their inflation data ahead of France’s first-round election on June 30.
Europe Indexes and Yields
The DAX index increased by 0.9% to 18,325.58; the CAC-40 index rose by 1.0% to 7,706.89; and the FTSE 100 index rose by 0.5% to 8,281.55.
In the previous week, the DAX index jumped 0.2%, the CAC-40 index rose 0.9%, and the FTSE 100 index advanced 1%.
The yield on 10-year German bonds edged lower to 2.41%. French bonds inched lower to 3.13%; the UK gilts edged lower to 4.08%; and Italian bonds increased to 3.91%.
The euro edged lower to $1.072; the British pound inched higher to $1.266; and the U.S. dollar weakened to 89.30 Swiss cents.
Brent crude increased $0.94 to $86.18 a barrel, and the Dutch TTF natural gas fell by €0.53 to €34.93 per MWh.
Europe Stock Movers
Argenx soared 6.4% to €395.60 after the Belgian drug company won approval from the U.S. drug regulator for its treatment for chronic inflammatory demyelinating polyneuropathy, a condition that causes chronic weakness in muscles.
Prudential PLC surged 6.6% to 753.20 pence after the UK-based insurance company launched a $2.2 billion stock repurchase program.
GSK plc increased 0.6% to 1,608.50 pence after a Japanese drug regulator approved the company's Omijara for the treatment of myelofibrosis.
Valneva SE rose 7.5% to €3.34 after Health Canada, the drug regulator, approved the company's IXCHIQ for the treatment of chikungunya virus in adults.
Safran SA gained 1.6% to €205.80 after the company entered into an exclusive discussion to acquire Preligens for an enterprise value of €220 million.
Preligens is the developer of artificial intelligence technology to analyze defense and intelligence industry data.
The Bank of Japan Struggles to Arrest the Yen's Decline, Nikkei 225 Heads Higher
Stock market indexes rebounded in Monday's trading in Tokyo in the hopes that the weaker yen would boost the earnings of industrial and automotive companies.
The Nikkei 225 and the Topix index gained more than 0.7% after the yen drifted to a 34-year low.
The yen traded at 159.71 against the U.S. dollar amid the persistently wide yield gap between U.S. and Japanese government bonds.
Currency traders are bracing for another bout of weakness in the yen as the Bank of Japan and the Ministry of Finance struggle to arrest the rapid decline.
Moreover, foreign investors have become net sellers of Japanese stocks, and the benchmark Nikkei has declined about 5% from its peak on March 22, after the slow progress in the widely publicized corporate governance reform and the unwinding of interlocking stock holdings.
On the economic front, this week investors are looking forward to the release of industrial production, retail sales, and the jobless rate for May and the metropolitan Tokyo area's June inflation data.
Japan Stock Movers
Market sentiment was strong in Monday's trading, and banks, technology, and industrial companies were among the leading gainers.
The Nikkei 225 stock average jumped 0.7% to 38,875.87, and the Topix index gained 0.8% to 2,747.11.
Tokyo Electron, Advantest, Screen Holdings, and SoftBank gained between 0.5% and 2%.
Mitsubishi UFJ and Mizuho Financial Group advanced 2.2% and 0.9%, respectively, but Sumitomo Mitsui Financial decreased 0.6%.
Toyota Motor, Honda Motor, and Nissan Motor declined around 0.5% despite the weaker yen.
Leading exporters, Mitsubishi Electric, Canon, Nidec, TDK, Fujitsu, and Sony, advanced between 1% and 3%.
China Stocks Fall Amid Rising Capital Outflows and Falling Foreign Direct Investment
Market indexes in Shanghai and Hong Kong faced selling pressure in Monday's trading as foreign investors continued to lower their stock holdings amid a poor economic outlook.
The Hang Seng index declined more than 1% and dropped about 10% from its high in March, and foreign investors sold 33 billion yuan of stocks this month.
Policymakers have struggled to announce concrete measures to revive consumer confidence and support economic growth as the Chinese government struggles with sky-high debt at the national and local levels, limiting the availability of funds.
Moreover, corporate earnings have been mixed, indicating that depressed market valuations are likely to persist amid a lack of catalysts in the near term.
Rising tensions with the West also negatively impacted foreign direct investment flow in the first five months of May.
Between January and May, 21,764 new foreign-invested enterprises were established nationwide, an increase of 17.4%, and foreign capital used was 412.51 billion yuan, or $56.7 billion, a decline of 28.2% from a year ago.
However, capital use in high-tech manufacturing was 12.7%, an increase of 2.7 percentage points to 50.4 billion yuan.
Germany increased its investment by 24.2% and Singapore by 16.2% from a year ago, respectively.
The Chinese yuan declined to 7.28 against the U.S. dollar amid worries about rising capital outflows as foreign investors lighten their domestic stock holdings.
China Stock Movers
The CSI 300 index increased 0.2% to 3,503.17, and the Hang Seng index declined 0.8% to 17,892.75.
Midea Real Estate Group soared 70% to HK$6.38 on a proposal to take the company private.
Haidilao International declined 4.5% to HK$14.42, and the company named Gou Yiqun as its new chief executive, replacing Yang Lijuan.
Kweichow Moutai fell as much as 2% before recovering to an increase of 1% to ¥1,483.88 on a news report that prices of its popular liquor declined below 2,100 yuan, or about $290.
SMIC declined 2.2% to HK$18.20, and Trip.com fell 3.2% to HK$373.60.
Chinese tourist arrivals in Singapore and Malaysia are likely to surpass pre-pandemic levels in 2019, but arrivals in Thailand and Japan are still lagging.
U.S. Movers: Apple, Eli Lilly, RXO, ResMed, UPS
Scott Peters
24 Jun, 2024
New York City
RXO soared 10.6% to $22.35 after the trucking company said it plans to acquire Coyote Logistics, a freight brokerage business, from UPS for $1.03 billion.
"The addition of Coyote’s customer base will diversify RXO’s vertical mix and will increase the number of customers that do more than $1 million in business with us by approximately 80%.
This acquisition will provide RXO with both immediate and long-term opportunities for revenue and earnings growth and will generate significant returns for shareholders," said Drew Wilkerson, chief executive of RXO.
UPS jumped 0.4% to $137.30.
Apple Inc. declined a fraction to $207.49 after regulators in the European Union said that the company is in breach of the new Digital Markets Act.
The regulators said that Apple's App Store rules "prevent app developers from freely steering consumers to alternative channels for offers and content."
Resmed Inc. declined 6.2% to $193.02 on the news last week that Eli Lilly's tirzepatide weight loss drug lowered the severity of obstructive apnea.
Eli Lilly rose 0.4% to $887.64.
Benchmark Indexes Hover Near Record Highs, Mega-cap Tech Stocks Retreat
Barry Adams
24 Jun, 2024
New York City
Market indexes struggled to find a direction in early trading on Monday as investors turned cautious after a two-month market rally.
The S&P 500 index and the Nasdaq Composite edged lower following the advance in the last eight of the nine consecutive weeks, and for the year, both indexes are up 15% and 19.2%, respectively.
Market heavyweight Nvidia declined 3% and extended three-day loss to more than 10% after investors turned cautious following the rapid rise of the stock this year.
For the year so far, Nvidia jumped 158% as of Friday's trading.
The yield on the 10-year Treasury held steady ahead of a flood of economic data later this week, and crude oil prices hovered near a two-month high.
This week, investors in the U.S. are looking forward to the release of international trade balances, durable goods orders, and the third and final estimate for first quarter GDP growth.
Investors are also awaiting the release of consumer spending and income and the PCE price indicator for May, the preferred measure of inflation by the Fed’s policymakers.
U.S. Indexes and Treasury Yields
The S&P 500 index decreased 0.03% to 5,463.30, and the Nasdaq Composite fell 0.1% to 17,676.18.
The yield on 2-year Treasury notes edged lower to 4.75%, 10-year Treasury notes decreased to 4.26%, and 30-year Treasury bonds edged higher to 4.41%.
WTI crude oil decreased $0.01 to $80.58 a barrel, and natural gas prices fell 2 cents to $2.69 a thermal unit.
Gold increased by $6.32 to $2,328.32 an ounce, and silver declined 1 cent to $29.55.
The dollar index, which weighs the U.S. currency against a basket of foreign currencies, edged lower to 105.48.
U.S. Stock Movers
RXO soared 10.6% to $22.35 after the trucking company said it plans to acquire Coyote Logistics, a freight brokerage business, from UPS for $1.03 billion.
"The addition of Coyote’s customer base will diversify RXO’s vertical mix and will increase the number of customers that do more than $1 million in business with us by approximately 80%.
This acquisition will provide RXO with both immediate and long-term opportunities for revenue and earnings growth and will generate significant returns for shareholders," said Drew Wilkerson, chief executive of RXO.
UPS jumped 0.4% to $137.30.
Apple Inc. declined a fraction to $207.49 after regulators in the European Union said that the company is in breach of the new Digital Markets Act.
The regulators said that Apple's App Store rules "prevent app developers from freely steering consumers to alternative channels for offers and content."
Resmed Inc. declined 6.2% to $193.02 on the news last week that Eli Lilly's tirzepatide weight loss drug lowered the severity of obstructive apnea.
Eli Lilly rose 0.4% to $887.64.
Europe Movers: Argenx, GSK, Prudential, Safran, Valneva
Inga Muller
24 Jun, 2024
Frankfurt
The European market attempted to rebound for the second week, but the French government bond's risk premium remained elevated ahead of the parliamentary election later in the week.
The DAX index increased by 0.4% to 18,242.31; the CAC-40 index rose by 0.5% to 7,669.07; and the FTSE 100 index rose by 0.4% to 8,270.03.
In the previous week, the DAX index jumped 0.2%, the CAC-40 index rose 0.9%, and the FTSE 100 index advanced 1%.
The yield on 10-year German bonds edged lower to 2.41%. French bonds inched lower to 3.13%; the UK gilts edged lower to 4.08%; and Italian bonds increased to 3.91%.
Argenx soared 6.4% to €395.60 after the Belgian drug company won approval from the U.S. drug regulator for its treatment for chronic inflammatory demyelinating polyneuropathy, a condition that causes chronic weakness in muscles.
Prudential PLC surged 6.6% to 753.20 pence after the UK-based insurance company launched a $2.2 billion stock repurchase program.
GSK plc increased 0.6% to 1,608.50 pence after a Japanese drug regulator approved the company's Omijara for the treatment of myelofibrosis.
Valneva SE rose 7.5% to €3.34 after Health Canada, the drug regulator, approved the company's IXCHIQ for the treatment of chikungunya virus in adults.
Safran SA gained 1.6% to €205.80 after the company entered into an exclusive discussion to acquire Preligens for an enterprise value of €220 million.
Preligens is the developer of artificial intelligence technology to analyze defense and intelligence industry data.
European Markets Rebound Amid French Political Uncertainty
Bridgette Randall
24 Jun, 2024
Frankfurt
European markets headed higher as investors looked ahead to the first round of the French election this weekend, and bond yields showed elevated stress.
Early polls indicate French President Emmanuel Macron's party is likely to lose its grip on power amid growing uneasiness about immigration, the high cost of living, and economic uncertainty.
Meanwhile, investors are worried that the rise of far-right parties in the French parliament is likely to alter the government's domestic economic priorities and plans to lower the budget deficit to meet the 2% target set by the European Union.
On the economic front this week, Germany and France are scheduled to release their jobless rates, and the central banks of Sweden and Turkey are expected to hold their rates steady.
In addition, France, Italy, and Spain are set to release their inflation data ahead of France’s first-round election on June 30.
Europe Indexes and Yields
The DAX index increased by 0.4% to 18,242.31; the CAC-40 index rose by 0.5% to 7,669.07; and the FTSE 100 index rose by 0.4% to 8,270.03.
In the previous week, the DAX index jumped 0.2%, the CAC-40 index rose 0.9%, and the FTSE 100 index advanced 1%.
The yield on 10-year German bonds edged lower to 2.41%. French bonds inched lower to 3.13%; the UK gilts edged lower to 4.08%; and Italian bonds increased to 3.91%.
The euro edged lower to $1.072; the British pound inched higher to $1.266; and the U.S. dollar weakened to 89.30 Swiss cents.
Brent crude increased $0.30 to $85.30 a barrel, and the Dutch TTF natural gas fell by €0.10 to €33.86 per MWh.
Europe Stock Movers
Argenx soared 6.4% to €395.60 after the Belgian drug company won approval from the U.S. drug regulator for its treatment for chronic inflammatory demyelinating polyneuropathy, a condition that causes chronic weakness in muscles.
Prudential PLC surged 6.6% to 753.20 pence after the UK-based insurance company launched a $2.2 billion stock repurchase program.
GSK plc increased 0.6% to 1,608.50 pence after a Japanese drug regulator approved the company's Omijara for the treatment of myelofibrosis.
Valneva SE rose 7.5% to €3.34 after Health Canada, the drug regulator, approved the company's IXCHIQ for the treatment of chikungunya virus in adults.
Safran SA gained 1.6% to €205.80 after the company entered into an exclusive discussion to acquire Preligens for an enterprise value of €220 million.
Preligens is the developer of artificial intelligence technology to analyze defense and intelligence industry data.
The Bank of Japan Struggles to Arrest the Yen's Decline, Nikkei 225 Heads Higher
Akira Ito
24 Jun, 2024
Tokyo
Stock market indexes rebounded in Monday's trading in Tokyo in the hopes that the weaker yen would boost the earnings of industrial and automotive companies.
The Nikkei 225 and the Topix index gained more than 0.7% after the yen drifted to a 34-year low.
The yen traded at 159.71 against the U.S. dollar amid the persistently wide yield gap between U.S. and Japanese government bonds.
Currency traders are bracing for another bout of weakness in the yen as the Bank of Japan and the Ministry of Finance struggle to arrest the rapid decline.
Moreover, foreign investors have become net sellers of Japanese stocks, and the benchmark Nikkei has declined about 5% from its peak on March 22, after the slow progress in the widely publicized corporate governance reform and the unwinding of interlocking stock holdings.
On the economic front, this week investors are looking forward to the release of industrial production, retail sales, and the jobless rate for May and the metropolitan Tokyo area's June inflation data.
Japan Stock Movers
Market sentiment was strong in Monday's trading, and banks, technology, and industrial companies were among the leading gainers.
The Nikkei 225 stock average jumped 0.7% to 38,875.87, and the Topix index gained 0.8% to 2,747.11.
Tokyo Electron, Advantest, Screen Holdings, and SoftBank gained between 0.5% and 2%.
Mitsubishi UFJ and Mizuho Financial Group advanced 2.2% and 0.9%, respectively, but Sumitomo Mitsui Financial decreased 0.6%.
Toyota Motor, Honda Motor, and Nissan Motor declined around 0.5% despite the weaker yen.
Leading exporters, Mitsubishi Electric, Canon, Nidec, TDK, Fujitsu, and Sony, advanced between 1% and 3%.
China Stocks Fall Amid Rising Capital Outflows and Falling Foreign Direct Investment
Li Chen
24 Jun, 2024
Hong Kong
Market indexes in Shanghai and Hong Kong faced selling pressure in Monday's trading as foreign investors continued to lower their stock holdings amid a poor economic outlook.
The Hang Seng index declined more than 1% and dropped about 10% from its high in March, and foreign investors sold 33 billion yuan of stocks this month.
Policymakers have struggled to announce concrete measures to revive consumer confidence and support economic growth as the Chinese government struggles with sky-high debt at the national and local levels, limiting the availability of funds.
Moreover, corporate earnings have been mixed, indicating that depressed market valuations are likely to persist amid a lack of catalysts in the near term.
Rising tensions with the West also negatively impacted foreign direct investment flow in the first five months of May.
Between January and May, 21,764 new foreign-invested enterprises were established nationwide, an increase of 17.4%, and foreign capital used was 412.51 billion yuan, or $56.7 billion, a decline of 28.2% from a year ago.
However, capital use in high-tech manufacturing was 12.7%, an increase of 2.7 percentage points to 50.4 billion yuan.
Germany increased its investment by 24.2% and Singapore by 16.2% from a year ago, respectively.
The Chinese yuan declined to 7.28 against the U.S. dollar amid worries about rising capital outflows as foreign investors lighten their domestic stock holdings.
China Stock Movers
The CSI 300 index increased 0.2% to 3,503.17, and the Hang Seng index declined 0.8% to 17,892.75.
Midea Real Estate Group soared 70% to HK$6.38 on a proposal to take the company private.
Haidilao International declined 4.5% to HK$14.42, and the company named Gou Yiqun as its new chief executive, replacing Yang Lijuan.
Kweichow Moutai fell as much as 2% before recovering to an increase of 1% to ¥1,483.88 on a news report that prices of its popular liquor declined below 2,100 yuan, or about $290.
SMIC declined 2.2% to HK$18.20, and Trip.com fell 3.2% to HK$373.60.
Chinese tourist arrivals in Singapore and Malaysia are likely to surpass pre-pandemic levels in 2019, but arrivals in Thailand and Japan are still lagging.