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Movers: CarTrade Tech, Cipla, IREDA, Prestige Estate Projects, Tata Steel, Vedanta

Arun Goswami
24 Jun, 2024
Mumbai

The indexes in Mumbai hovered near record highs, and investors debated the possible measures in the Union Budget next month.

The Sensex index increased by 0.3% to 77,017.93, and the Nifty index rose by 0.1% to 23,594.45.

On the Mumbai stock exchange, 212 stocks traded at their 52-week highs, and 22 stocks traded at their 52-week lows.

Vedanta Ltd. declined 1.4% to ₹464.40, and the company denied speculation that one of the promoters is planning to sell a stake in the resource company.

Cipla declined 2.4% to ₹1,504.50, and the U.S. drug regulatory agency issued six areas of non-compliance for the company's manufacturing facility in Goa after the latest inspection between June 10 and June 21.

Moreover, the regulatory agency is also demanding additional compliance for the company's plant in Indore.

CarTrade Tech declined 3.5% to ₹828.30 on the news report that two key shareholders are looking to trim their stakes in the company.

Highdell Investment is looking to sell a 7.0% stake and Macritichie Investments a 3.4% stake in the company through block trading at a minimum price of ₹800.

Prestige Estate Projects decreased 0.5% to ₹1,973.45, and the company's board approved raising ₹5,000 crore from institutional investors.

Tata Steel fell 2% to ₹176.25, and the company's 1,500 UK plant workers called for a strike in forty years on disagreements with job cuts and blast furnace closure.

The Indian Renewable Energy Development Agency advanced 2% to ₹191.26 after the company raised ₹1,500 crore through a bond sale.

Stocks Experience Jolt Ride On Triple Witching Friday

Barry Adams
21 Jun, 2024
New York City

Stocks and market indexes are for choppy trading ahead as futures and options on stocks and indexes expire Friday.

The S&P 500 index and the Nasdaq Composite edged slightly lower, and widely held stocks are expected to experience an extra jolt of volatility on the so-called "triple witching."

Artificial intelligence-linked tech stocks faced another day of elevated volatility as ETFs and mutual funds rebalanced holdings ahead of the end of the quarter and the month next week.

On the economic front, investors are looking ahead to the release of existing home sales data for May, and investors are hoping that the sales will rebound from the 4.2 million annual rate in April.

U.S. Indexes and Treasury Yields

The S&P 500 index increased 0.3% to 5,505.13, and the Nasdaq Composite rose 0.3% to 17,923.03.

The yield on 2-year Treasury notes edged lower to 4.71%, 10-year Treasury notes decreased to 4.23%, and 30-year Treasury bonds edged higher to 4.38%.

WTI crude oil decreased $0.12 to $81.11 a barrel, and natural gas prices fell 2 cents to $2.70 a thermal unit.

Gold increased by $4.32 to $2,365.35 an ounce, and silver declined 32 cents to $30.53.

The dollar index, which weighs the U.S. currency against a basket of foreign currencies, edged lower to 105.78.

U.S. Stock Movers

Asana rose 2.5% to $11.66, and the workflow management software company announced a $150 million stock repurchase program to be completed by June 2025.

Sarepta Therapeutics soared 33% to $164.98 after the Food and Drug Administration permitted the company's gene therapy against Duchenne muscular dystrophy.

Nvidia, Apple, and CrowdStrike are likely to face additional volatility as the rebalancing of several indexes takes effect after Friday's trading.

State Street Technology Select Sector SPDR ETF is likely to purchase as much as $10 billion of Nvidia stock as the fund increases its allocation to nearly 21% from the current 5%.

Moreover, the fund will rebalance its Apple holdings to 5% from the current 21%.

Nvidia decreased 1.3% to $127.93, and Apple increased 0.5% to $210.65.

CrowdStrike decreased by 0.3% to $381.02, and the company is set to be included in the S&P 500 index.

Europe Movers: Britvic, STMicroelectronics, Zealand Pharma

Inga Muller
21 Jun, 2024
Frankfurt

European markets turned lower and trimmed weekly gains after a week of tumultuous trading.

The euro held firm, and the spread between the French and German bonds stayed elevated for the second consecutive week.

Eurozone business activity growth slowed in May, and UK retail sales unexpectedly remained strong in May.

The DAX index decreased by 0.6% to 18,142.95; the CAC-40 index fell by 0.7% to 7,620.26; and the FTSE 100 index fell by 0.8% to 8,208.33.

For the 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 2.35%. French bonds inched lower to 3.08%; the UK gilts edged lower to 4.03%; and Italian bonds increased to 3.89%.

STMicroelectronics NV declined 2.3% to €37.55 after the Franco-Italian semiconductor company launched two stock repurchase programs for up to $1.1 billion, to be completed over the next three years.

The first tranche of the buyback will cover the $989 million employee stock award plans, and the second tranche will cover the $111 million required to meet the convertible bond settlement obligation.

The company plans to hold repurchased shares as treasury stock.

The company completed the previously announced stock buyback of 24,880,267 shares on a weighted average purchase price of €38.67 per share, for a total of €962.1 million, or $1.04 billion.

Britvic rose 6.3% to 1,078.64 pence after the independent-label soft drink maker rejected a second merger offer from the Danish brewery Carlberg Group for 1,250 pence per share.

Zealand Pharma soared 19.5% to DKK 773.0 after the Danish biotech company said a preliminary study showed a high dose of its drug lowered weight by 8.6% over 16 weeks.

European Markets Trim Weekly Gains, Eurozone Business Activity Growth Slowed

Bridgette Randall
21 Jun, 2024
Frankfurt

Eurozone stock market indexes turned lower after the region's business activity growth slowed.

Benchmark indexes in Paris, London, and Frankfurt declined as much as 0.8% after the Euro Area business recovery slowed in June as the weakness in the manufacturing sector gathered momentum and service sector activity deteriorated.

Eurozone and UK Business Activity Growth Slowed

The HCOB Eurozone Composite PMI declined to 50.8 in June from 52.2 in May, as reported by S&P Global.

The latest update showed an increase in private sector activity for the fourth month in a row, but the growth slowed.

U.K. private sector growth slowed to a seven-month low after the weakness in the service sector offset the strength in manufacturing.

UK Retail Sales Growth Surpasses Expectations

Retail sales rose 2.9% on a monthly basis in May, rebounding from an upwardly revised 1.8% fall in April, the Office for National Statistics reported Friday.

Nonfood store sales jumped 3.5%, lifting the overall retail sales to a four-month high, and non-store retailers, which are mostly online retailers, jumped 5.9%, the largest increase since April 2022.

On a yearly basis, retail sales jumped 1.3% in May and rose 1% in the three months to May compared to the previous 3-month period; however, they fell by 0.2% when compared to the similar period a year ago.

Europe Indexes and Yields

The DAX index decreased by 0.6% to 18,142.95; the CAC-40 index fell by 0.7% to 7,620.26; and the FTSE 100 index fell by 0.8% to 8,208.33.

For the 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 2.35%. French bonds inched lower to 3.08%; the UK gilts edged lower to 4.03%; and Italian bonds increased to 3.89%.

The euro edged lower to $1.063; the British pound inched higher to $1.263; and the U.S. dollar weakened to 89.23 Swiss cents.

Brent crude decreased $0.02 to $85.62 a barrel, and the Dutch TTF natural gas fell by €0.32 to €34.12 per MWh.

Europe Stock Movers

STMicroelectronics NV declined 2.3% to €37.55 after the Franco-Italian semiconductor company launched two stock repurchase programs for up to $1.1 billion, to be completed over the next three years.

The first tranche of the buyback will cover the $989 million employee stock award plans, and the second tranche will cover the $111 million required to meet the convertible bond settlement obligation.

The company plans to hold repurchased shares as treasury stock.

The company completed the previously announced stock buyback of 24,880,267 shares on a weighted average purchase price of €38.67 per share, for a total of €962.1 million, or $1.04 billion.

Britvic rose 6.3% to 1,078.64 pence after the independent-label soft drink maker rejected a second merger offer from the Danish brewery Carlberg Group for 1,250 pence per share.

Zealand Pharma soared 19.5% to DKK 773.0 after the Danish biotech company said a preliminary study showed a high dose of its drug lowered weight by 8.6% over 16 weeks.

Japan's Inflation Accelerated In May, Manufacturing Growth Slowed but Expanded for the Second Month

Akira Ito
21 Jun, 2024
Tokyo

Stocks in Tokyo traded higher after consumer price inflation accelerated in May.

Consumer price inflation in Japan accelerated to an annual pace of 2.8% in May from 2.5% in April, the Ministry of Internal Affairs and Communications said in a report on Friday.

Consumer inflation accelerated to a three-month high after electricity prices soared 14.7% from a decline of 1.1% in the previous month, following the ending of energy subsidies.

Electricity prices rose for the first time after falling for the previous 15 consecutive months.

Meanwhile, food price inflation stayed elevated at a 4.1% annual rate compared to 4.3% in the previous month, transportation prices advanced at a 2.3% rate compared to 2.7%, and housing prices rose 0.6%, matching the rate in the previous month.

Core inflation, which excludes food prices and includes energy prices, rose at an annual pace of 2.5%, higher than the three-month low of 2.2% in the previous month.

In other economic news, the au Jibun Bank Japan Manufacturing PMI decreased to 50.1 in June from the final 50.4 in May, indicating a slowdown in growth in the sector.

Despite the growth slowdown, the manufacturing sector expanded for the second month in a row after contracting since May 2023.

The yen continued to drift lower in Friday's trading and hovered at 158.95 against the dollar, prompting fears of another market intervention by the Bank of Japan and the ministry of finance.

Separately, the People's Bank of China weakened the yuan to 7.1196 against the dollar, following the sharp selloff in overnight trading.

Japan Stock Movers

The Nikkei 225 Stock Average decreased 0.1%, and the Topix index rose 0.02% to 2,726.23.

For the week, the Nikkei advanced 1.3% and the Topix index rose 0.7%.

Tech stocks closed down following the weakness in artificial intelligence-linked stocks in overnight trading in New York.

Advantest, Tokyo Electron, and Screen Holdings declined between 1% and 2%.

Banks traded higher despite the yen trading near the intervention level.

Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho Financial gained between 0.3% and 1.1%.

Among other widely held stocks, IHI Corp. jumped 6.5% to ¥4,020.0, Otsuka Holdings jumped 2.8% to ¥6,388.0, and Sumitomo Metal Mining gained 3.9% to ¥5,046.0.

PBoC Forced to Weaken Yuan After Overnight Selloff, China Stock Indexes Dive

Li Chen
21 Jun, 2024
Hong Kong

Market sentiment turned cautious in Friday's trading in Hong Kong and Shanghai as elevated trade tensions and the weakness in the yuan weighed.

The CSI 300 and the Hang Seng indexes declined more than 0.8% and trimmed weekly gains to 1% as investors awaited more concrete steps from policymakers to revive economic growth.

The People's Bank of China set the yuan at 7.1196 after the Chinese currency faced selling pressure in overnight trading on the rising capital outflow.

The revised exchange rate was marginally weaker than Thursday's 7.1192 against the U.S. dollar.

The central bank's move was widely anticipated by currency traders, as the currency has been under pressure for several weeks.

China's policymakers have offered to provide broad support to the faltering stock market and residential property market, but measures announced so far have failed to change the course.

Property prices and transactions continue to plunge in the second- and third-tier cities, and buyers are staying away because the market has still not found the bottom, despite the price decline over the last three years.

Hong Kong stock market indexes are still struggling and trading down between 30% and 45% from their peaks in 2018, and Shanghai market indexes are down at least 40% from their peaks in 2021.

Investors hoping for meaningful reforms are likely to be disappointed in the near future as Chinese central and local governments struggle with record-high debt.

Investors have low hopes of any bold reform announcements at the much-delayed third plenum scheduled to take place next month.

China Stock Movers

The CSI 300 index fell 0.8% to 3,475.48, and the Hang Seng index decreased 1.9% to 17,999.35.

Electric vehicle makers traded down after Canada announced its plans to impose additional tariff measures on Chinese-made electric passenger cars, mirroring the European Union and the U.S.

Geely Automobile declined 2.3% to HK$8.94, LI Auto fell 2.2% to HK$69.65, and BYD dropped 0.4% to HK$236.60.

Residential real estate developers continued to drift lower amid weak market demand and a lack of action from policymakers.

China Vanke rose 1.4% to HK$4.97, China Resources Land dropped 1.1% to HK$26.95, and Longfor Group declined 1.3% to HK$11.24.

SenseTime Group decreased 1.4% to HK$1.24 after the artificial intelligence-focused company announced its plan to raise $260 million through the sale of its shares at a 9.5% discount to finance its growth.

Western Securities jumped 6.5% to ¥6.83 after the company said in a regulatory filing that it plans to acquire a majority stake in its privately held, smaller rival, Guorong Securities.

China's securities brokerage industry is rapidly consolidating under pressure from policymakers. A sharp decline in market activities and a ban on new listings for several months added more pressure to consolidate.

However, China's State Council is taking steps to nurture at least two local giants that could compete with global players with capital and a large customer base to provide underwriting and merger advisory services to larger firms.

India Movers: Bajaj Consumer Care, Dhanlaxmi Bank, Indiabulls Real Estate, MedPlus Health, Nestle India, Persistent Systems

Arun Goswami
21 Jun, 2024
Mumbai

Market indexes are set to extend weekly gains in the hopes of sustained investment in infrastructure development.

Bond yields edged lower, and the rupee faced selling pressure amid a rising outflow of foreign funds.

Market sentiment remained positive as the number of stocks reaching their 52-week highs jumped to 189, indicating strong demand from investors.

For the week, the Sensex and the Nifty indexes are set to advance 0.9%.

The Sensex index increased by 0.02% to 77,508.87, and the Nifty index rose by 0.1% to 23,594.45.

On the Mumbai stock exchange, 156 stocks traded at their 52-week highs, and 2 stocks traded at their 52-week lows.

Nestle India declined 0.5% to ₹2,527.10, and the company's board is scheduled to meet on July 8 to finalize interim dividend payments to shareholders on record on July 16.

Indiabulls Real Estate rose 2.8% to ₹159.30, and the company will continue its business under the new name Equinox India Developments Limited as of June 20.

Persistent Systems added 3.7% to ₹4,027.30 after the company announced ₹10 per share final dividend for the fiscal year ending in March 2024.

MedPlus Health Services increased 0.6% to ₹695.0 after the company's subsidiary faced a one-day drug license suspension in Karnataka.

Bajaj Consumer Care added 2.2% to ₹268.50, and the company's board set July 2 as the stock buyback date.

Dhanlaxmi Bank declined 1.5% to ₹44.22, and the company appointed Ajith Kumar KK as managing director and chief executive officer for three years from June 20.

U.S. Major Averages Hover Near Record Highs, European Markets Rebound On Rate Cut Hopes

Alexander Garcia
20 Jun, 2024
Miami

Market indexes on Wall Street flirted with new intraday record highs as investors stayed positive on the durability of the market rally powered by artificial intelligence-linked stocks.

The S&P 500 index and the Nasdaq Composite inched up 0.3% before losing steam in early afternoon, taking both indexes to record new highs as Nvidia continues to power ahead to new highs, forcing many analysts to review their price targets.

Nvidia jumped 3.3% to $140.76 in early trading in New York, creating another intraday record high for the most valued company.

On the economic front, housing starts and permits declined in May, and initial jobless claims rose in the previous week, according to two different government reports.

Initial jobless claims decreased from 5,000 to 238,000 for the week ended June 15, and continuing claims increased by 15,000 to 1,828 million, the U.S. Labor Department reported in its weekly update on Thursday.

The job market continues to moderate but remains in tight conditions, despite eleven rate hikes over 2022 and 2023, as employers struggle to fill positions in the service industry.

Housing Starts and Permits Plunged in May

Housing starts decreased 5.5% from the previous month to 1.277 million, building permits fell 3.8% to 1.386 million, and completions fell 8.4% to 1.65 million, according to the latest data released by the U.S. Census Bureau.

From a year ago, housing starts declined 19.3%, permits fell 9.5%, and completions rose 1.0%.

The annualized housing start rate dropped to the lowest since July 2020.

The unexpected decline in starts showed that elevated interest rates are weighing on the housing market.

Single-family starts declined 5.2% from the previous month to 982,000, and multi-unit starts declined 10.2% to 278,000.

U.S. Indexes and Treasury Yields

The S&P 500 index increased 0.3% to 5,505.13, and the Nasdaq Composite rose 0.3% to 17,923.03.

The yield on 2-year Treasury notes edged lower to 4.74%, 10-year Treasury notes decreased to 4.24%, and 30-year Treasury bonds edged higher to 4.40%.

WTI crude oil increased $0.27 to $80.94 a barrel, and natural gas prices fell 5 cents to $2.85 a thermal unit.

Gold increased by $12.70 to $2,341.70 an ounce, and silver rose 12 cents to $30.24.

The dollar index, which weighs the U.S. currency against a basket of foreign currencies, edged lower to 105.44.

U.S. Stock Movers

Darden Restaurants gained 1.4% to $154.04, and the parent company of Olive Garden reported revenue of $2.96 billion and adjusted earnings per share of $2.65, slightly ahead of market expectations.

Total sales increased 6.8%, driven by sales from the addition of 80 company-owned Ruth's Chris Steak House restaurants and 37 other net new restaurants in the quarter.

During the quarter, the company repurchased approximately 600,000 shares of its common stock for a total of approximately $97.3 million.

As of the end of the fiscal fourth quarter, the company had approximately $915 million remaining under the current $1 billion repurchase authorization.

However, consolidated same-store sales declined for the second quarter in a row, and fine dining sales fell 2.6%.

Accenture soared 7.2% to $305.86, and the company reported weaker-than-expected quarterly results but added that it won $900 million in new generative artificial intelligence-related contracts.

Trump Media & Technology declined 11.6% to $27.67, and the company said its registration of additional shares was declared effective by the Securities and Exchange Commission, allowing the company to sell shares and warrants and raise as much as $247 million.

Bank of England and Norway Hold Rates, Swiss National Bank Cuts Rates Again

European markets advanced as investors reviewed the flood of monetary policy decisions.

The Bank of England held its policy rate at 5.25%, as widely expected, and policymakers showed no urgency in lowering rates despite inflation declining to 2% in May.

Policymakers, in a 7-to-2 vote, decided to leave rates at 5.25%, a 16-year high, and held rates for the seventh time in a row since August 2023.

However, policymakers held out for inflation to rebound in the second half due to the lower base of energy prices last year.

Despite the majority of policymakers voting for holding rates, most committee members struggled to decide between holding and cutting rates, according to the minutes of the meeting released by the Bank of England.

"For some members within this group, the return of headline inflation to 2%, while welcome, was not necessarily indicative of the required sustained return to target," the Bank of England noted in a statement released after the policy meeting.

"For other members within this group, the upside news in service price inflation relative to the May Report did not alter significantly the disinflationary trajectory that the economy was on," highlighted the BoE in the statement.

The Swiss National Bank decided to lower its benchmark rate by 25 basis points to 1.25%, following a similar-sized cut in the previous meeting in March.

The SNB held its annual inflation outlook at 1.3% in 2024 and 1.5% in 2025, and the central bank estimated the economy to expand at 1.0% in the current year and accelerate at 1.5% in 2025.

Policymakers estimated growth "to remain moderate" in the following quarter, unemployment is expected "to rise slightly," and capacity utilization "is likely to decline slightly" as the manufacturing sector stagnates on weak global demand growth.

The Norges Bank held its policy rate steady at 4.5%, and estimated rates are likely to stay at the current level for "some time ahead."

Despite the rapid increase in interest rates, inflation is still above the central bank's long-term target rate, but economic growth has cooled.

The policy committee worried that wage inflation is likely to pick up in the coming quarters, and a premature rate cut could fan inflationary forces.

"The Committee judges that the policy rate is sufficiently high to bring inflation down to target within a reasonable time horizon, but that there will be a need to maintain a tight monetary policy stance for somewhat longer than previously projected," according to the statement released by the Norges Bank.

“If the economy evolves as currently envisaged, the policy rate will continue to lie at 4.5 percent until the end of the year, before gradually being reduced,” says Governor Ida Wolden Bache.

Economic growth is projected to pick up a little in the years ahead, but unemployment is likely to edge up. Inflation is projected to decline further and approach 2% towards the end of 2027.

Europe Indexes and Yields

The DAX index increased by 0.6% to 18,180.11; the CAC-40 index rose by 0.9% to 7,642.93; and the FTSE 100 index advanced by 0.4% to 8,238.69.

The yield on 10-year German bonds edged lower to 2.42%. French bonds inched higher to 3.16%; the UK gilts edged lower to 4.07%; and Italian bonds increased to 3.93%.

The euro edged lower to $1.073; the British pound inched higher to $1.269; and the U.S. dollar weakened to 88.94 Swiss cents.

Brent crude decreased $0.14 to $85.19 a barrel, and the Dutch TTF natural gas fell by €0.30 to €35.03 per MWh.

Europe Stock Movers

Tate & Lyle declined 8.2% to 622.0 pence after the British food ingredient maker agreed to acquire nature-based ingredient provider CP Kelco for $1.8 billion.

Danone SA declined 3.2% to €57.0 after the French food company said it is targeting comparable sales growth between 3% and 5% in the period between 2025 and 2028 and recurring operating income to grow faster than net sales.

The company said its current growth plan is expected to support its long-term objective of free cash flow of €3 billion.

Japan Indexes Struggle Ahead of Inflation and Business Activities Surveys On Friday

Stocks opened lower in Tokyo and traded down for most of the session amid interest rate uncertainty, persistent weakness in the yen, and ahead of the release of economic data.

Investors are looking forward to the release of consumer inflation data in May and business activity updates in the manufacturing and services sectors on Friday.

The Nikkei 225 and the Topix index traded down in the session, but the Nikkei managed to climb above the flatline in the final thirty minutes of the session.

The yen weakened to 158.24 against the U.S. dollar in Tokyo amid interest rate uncertainty and the Bank of Japan's lack of urgency in fixing the persistent and wide rate differential between the U.S. and Japanese government bonds.

Japan Stock Movers

The Nikkei 225 Stock Average closed up 0.2% to 38,631.0, and the Topix Index declined 0.1% to 2,725.05.

Tech sector stocks turned lower amid a lack of clues from New York trading. Financial markets in the U.S. were closed for a public holiday on Wednesday.

Advantest, Tokyo Electron, and Screen Holding dropped as much as 1%.

Banks were among the leading decliners due to rate uncertainty and the persistent weakness of the yen.

Mitsubishi UFJ Financial, Sumitomo Mitsui, and Mizuho Financial dropped between 1% and 2%.

Among other widely held stocks, Fujikura, Kawasaki Heavy Industries, and Nidec fell between 3% and 5%.

Toyota Chairman Reelected With Fewer Votes of Approval

Toyota Motor decreased 0.7% to ¥3,084.0, and earlier this week only 71.93% of shareholders approved the company Chairman Akio Toyoda reelection, according to a tally released by the finance ministry.

Akio Toyoda's approval took a big hit after the certification scandal and fell from 84.57% in 2023 to 96% in 2022.

Earlier this month, Japan's transportation ministry suspended the shipment of six Japanese vehicles, including three made by Toyota.

Despite the ongoing regulatory challenges linked to the embarrassing certification scandal, the company is enjoying record global sales and holding onto its number one positive for the fourth year in a row, surpassing Volkswagen AG.

In its latest fiscal year, Tokyo posted five trillion yen, or $31.7 billion, in operating profit, making it the first Japanese company to achieve the record.

In early 2023, Akio Toyoda stepped down from its chief executive position after 14 years and assumed the role of chairman, leading the company's transition to hybrid cars when the industry was shifting to electric vehicles.

PBOC Holds Loan Prime Rates Steady, China-controlled Funds Step Up Buying

China stocks lacked momentum in Thursday's trading, and the central bank held its loan prime rates steady as widely expected but failed to announce new stimulus measures.

The Hang Seng and the CSI 300 indexes traded down 0.5% after the Hang Seng index gained 2.9% in the previous session, the best one-day gain in three months.

Investors welcomed the People's Bank of China's decision to hold its rates steady, but they were disappointed that the bank failed to provide additional measures to facilitate property transactions.

On Wednesday, China's top securities regulator announced broad outlines of financial market reforms for tech start ups to encourage more new company listings and support financing activities for emerging companies.

PBoC Holds Rates Steady

The People's Bank of China held its lending rates unchanged as the second-largest economy struggles to meet its ambitious annual economic growth target of 5%.

The People's Bank of China held its one-year loan prime rate at 3.45% and its five-year loan prime rate, the reference rate for mortgage lending, at 3.95%.

The central bank last lowered the 5-year LPR rate by 25 basis points in February.

Both lending rates are at record lows as the central bank steers the economy through the protracted property market malaise, weakening labor market, and rising capital flight.

Earlier in the week, the central bank held its medium-term lending rate at 2.5% while draining 55 billion yuan from the banking system to retain an appropriate level of liquidity.

China Stock Movers

The CSI 300 index decreased 0.6% to 3,507.78, and the Hang Seng index dropped 0.6% to 18,312.82.

State-owned companies were in focus in active trading for the second day in a row after China-controlled funds stepped up buying on Wednesday.

CNOOC advanced 3.5% to HK$23.50, China Petroleum Chemical gained 1.9% to HK$4.94, and PetroChina added 2.4% to HK$7.81.

Consumer-focused stocks headed lower on the persistent worries of weak consumer sentiment.

Haidilao International decreased 6.5% to HK$15.26, Budweiser Brewing declined 3.3% to HK$8.82, Li Ning fell 2.5% to HK$17.86, and Shenzhou International dropped 4.% to HK$80.10.

Real estate developers turned lower after the PBOC's rate decisions.

China Vanke decreased 4% to HK$4.92, China Resources Land declined 0.5% to HK$27.45, and Longfor Group turned down 4.4% to HK$11.48.

Housing Starts and Permits Plunged in May as Higher Interest Rates Weigh

Brian Turner
20 Jun, 2024
Washington, D.C.

Housing starts decreased 5.5% in May from the previous month to 1.277 million, building permits fell 3.8% to 1.386 million, and completions fell 8.4% to 1.65 million, according to the latest data released by the U.S. Census Bureau.

From a year ago, housing starts declined 19.3%, permits fell 9.5%, and completions rose 1.0%.

The annualized housing start rate dropped to the lowest since July 2020.

The unexpected decline in starts showed that elevated interest rates are weighing on the housing market.

Single-family starts declined 5.2% from the previous month to 982,000, and multi-unit starts declined 10.2% to 278,000.

Total seasonally adjusted building permits declined 25.3% from a year ago to 118,000 annual rate, fell 10.5% to 315,000 in the West, decreased 7.2% to 180,000 in the Midwest, and eased 6.6% to 773,000 in the South.

Total seasonally adjusted starts declined 19.8% to 77,000 in the Northeast, plunged 43.1% to 149,000, decreased 16.1% to 733,000, and fell 9.4% to 318,000.

U.S. Movers: Accenture, Darden Restaurants, Trump Media

Scott Peters
20 Jun, 2024
New York City

Darden Restaurants gained 1.4% to $154.04, and the parent company of Olive Garden reported revenue of $2.96 billion and adjusted earnings per share of $2.65, slightly ahead of market expectations.

Net earnings in the fiscal fourth quarter ending in May decreased to #308.1 million from $315.1 million, and diluted earnings per share fell to $2.57 from $2.58 a year ago.

Total sales increased 6.8%, driven by sales from the addition of 80 company-owned Ruth's Chris Steak House restaurants and 37 other net new restaurants in the quarter.

During the quarter, the company repurchased approximately 600,000 shares of its common stock for a total of approximately $97.3 million.

As of the end of the fiscal fourth quarter, the company had approximately $915 million remaining under the current $1 billion repurchase authorization.

However, consolidated same-store sales declined for the second quarter in a row, and fine dining sales fell 2.6%.

Accenture soared 7.2% to $305.86, and the company reported weaker-than-expected quarterly results but added that it won $900 million in new generative artificial intelligence-related contracts.

Trump Media & Technology declined 11.6% to $27.67, and the company said its registration of additional shares was declared effective by the Securities and Exchange Commission, allowing the company to sell shares and warrants and raise as much as $247 million.

Nvidia Retains Leadership In the AI-Driven Marker Rally

Barry Adams
20 Jun, 2024
New York City

Benchmark indexes on Wall Street inched further into record territory, and artificial intelligence-driven stocks raced higher.

The S&P 500 index and the Nasdaq Composite inched up 0.3%, taking both indexes to record new highs as Nvidia continues to power ahead to new highs, forcing many analysts to review their price targets.

Nvidia jumped 2.2% to $140.12 in early trading in New York.

On the economic front, housing starts and permits declined in May, and initial jobless claims rose in the previous week, according to two different government reports.

Initial jobless claims decreased from 5,000 to 238,000 for the week ended June 15, and continuing claims increased by 15,000 to 1,828 million, the U.S. Labor Department reported in its weekly update on Thursday.

The job market continues to moderate but remains in tight conditions, despite eleven rate hikes over 2022 and 2023, as employers struggle to fill positions in the service industry.

Housing Starts and Permits Plunged in May

Housing starts decreased 5.5% in May from the previous month to 1.277 million, building permits fell 3.8% to 1.386 million, and completions fell 8.4% to 1.65 million, according to the latest data released by the U.S. Census Bureau.

From a year ago, housing starts declined 19.3%, permits fell 9.5%, and completions rose 1.0%.

The annualized housing start rate dropped to the lowest since July 2020.

The unexpected decline in starts showed that elevated interest rates are weighing on the housing market.

Single-family starts declined 5.2% from the previous month to 982,000, and multi-unit starts declined 10.2% to 278,000.

U.S. Indexes and Treasury Yields

The S&P 500 index increased 0.3% to 5,505.13, and the Nasdaq Composite rose 0.3% to 17,923.03.

The yield on 2-year Treasury notes edged lower to 4.74%, 10-year Treasury notes decreased to 4.24%, and 30-year Treasury bonds edged higher to 4.40%.

WTI crude oil increased $0.27 to $80.94 a barrel, and natural gas prices fell 5 cents to $2.85 a thermal unit.

Gold increased by $12.70 to $2,341.70 an ounce, and silver rose 12 cents to $30.24.

The dollar index, which weighs the U.S. currency against a basket of foreign currencies, edged lower to 105.44.

U.S. Stock Movers

Darden Restaurants gained 1.4% to $154.04, and the parent company of Olive Garden reported revenue of $2.96 billion and adjusted earnings per share of $2.65, slightly ahead of market expectations.

Total sales increased 6.8%, driven by sales from the addition of 80 company-owned Ruth's Chris Steak House restaurants and 37 other net new restaurants in the quarter.

During the quarter, the company repurchased approximately 600,000 shares of its common stock for a total of approximately $97.3 million.

As of the end of the fiscal fourth quarter, the company had approximately $915 million remaining under the current $1 billion repurchase authorization.

However, consolidated same-store sales declined for the second quarter in a row, and fine dining sales fell 2.6%.

Accenture soared 7.2% to $305.86, and the company reported weaker-than-expected quarterly results but added that it won $900 million in new generative artificial intelligence-related contracts.

Trump Media & Technology declined 11.6% to $27.67, and the company said its registration of additional shares was declared effective by the Securities and Exchange Commission, allowing the company to sell shares and warrants and raise as much as $247 million.

Europe Movers: CMC Markets, Danone, Nordex, Tate & Lyle, Technip Energies, Vallourec

Inga Muller
20 Jun, 2024
Frankfurt

Investors bid up stocks after the Swiss National Bank lowered its policy rate for the second time in a row, the Bank of England held its policy rate for the seventh time in a row, and the Norges Bank held its rates at 4.5%.

The DAX index increased by 0.6% to 18,180.11; the CAC-40 index rose by 0.9% to 7,642.93; and the FTSE 100 index advanced by 0.4% to 8,238.69.

The yield on 10-year German bonds edged lower to 2.42%. French bonds inched higher to 3.16%; the UK gilts edged lower to 4.07%; and Italian bonds increased to 3.93%.

Tate & Lyle declined 8.2% to 622.0 pence after the British food ingredient maker agreed to acquire nature-based ingredient provider CP Kelco for $1.8 billion.

Danone SA declined 3.2% to €57.0 after the French food company said it is targeting comparable sales growth between 3% and 5% in the period between 2025 and 2028 and recurring operating income to grow faster than net sales.

The company said its current growth plan is expected to support its long-term objective of free cash flow of €3 billion.

CMC Markets jumped 7.5% to 302.17 pence after the UK-based investment platform operator reported a 52% jump in annual income, and the company estimated higher profits in 2025.

Adjusted pre-tax profit soared 52% to £80 million, and net revenue rose 11% to £259.1 million in the fiscal year ending in March.

The company declared a final dividend of 7.3 pence, increasing the total dividend to 8.3 pence per share, an increase of 12% from a year ago.

The company estimated net operating income to range between £320 million and £360 million in the current fiscal year, excluding variable remuneration and non-recurring charges, of approximately £225 million.

Technip Energies advanced 2.4% to €21.38, and the chemical and energy industry-focused company said it won a significant contract from Indian Oil Corporation Limited.

Vallourec SA gained 1.9% to €15.30, and the pipe product maker for the energy industry said Abu Dhabi National Oil Company extended the original contract worth $900 million for the next two years.

Nordex increased 1.6% to €12.44, and the wind turbine company won orders for 172 MW from various customers.

Bank of England and Norway Hold Rates, Swiss National Bank Cuts Rates Again

Bridgette Randall
20 Jun, 2024
Frankfurt