Market Update
India Movers: Container Corporation, GPT Infra, Hindalco, NLC, Nuvama Wealth, State Bank of India, Ztech India
Arun Goswami
05 Jun, 2024
Mumbai
Stocks in Mumbai struggled for the second session in a row after the ruling coalition lost its solid majority in the Lok Sabha election, forcing the BJP to seek a power-sharing arrangement with regional parties.
The Sensex index increased by 0.3% to 72,315.25, and the Nifty index rose by 0.4% to 21,965.70.
On the Mumbai stock exchange, 50 stocks traded at their 52-week highs, and 90 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds inched higher to 7.03%, and the Indian rupee edged higher at ₹83.52 against the U.S. dollar.
Container Corporation of India decreased 1.5% to ₹936.15, and the company signed an agreement with Shipping Corporation of India to provide a logistic solution.
Nuvama Wealth Management dropped 0.3% to ₹4,536.0, and the company set up a subsidiary in Dubai to serve the growing community of Indian professionals.
NLC India declined 1.2% to ₹198.90, and the company said it plans to raise foreign currency loans of $600 million through a direct offering.
GPT Infraprojects fell 1.5% to ₹225.15, and the company won an order worth ₹547 crore from Rail Vikas Nigam.
Hindalco Industries plunged 7.5% to ₹644.0 after the company postponed the initial public offering of its U.S. unit Novelis, citing challenging market conditions.
State Bank of India decreased 2.5% to ₹774.60, and the financial service provider scheduled a board meeting to discuss its options to raise foreign currency loans worth $3 billion in the current financial year.
Ztech India is set to list its stock in an initial public offering and raise as much as 37.3 crore through the sale of 37.3 crore shares.
The company's initial public offering has been oversubscribed 371 times.
Rate Path and Economic Growth Worries Kept Indexes In Check Across Atlantic, India Indexes Plunged 6%
Alexander Garcia
04 Jun, 2024
Miami
Major averages on Wall Street traded marginally lower as investors assessed the economic growth outlook and the Fed's maneuvering room to lower interest rates.
Investors hoped that the recent weakness in manufacturing activities in May and the slight decline in job openings in April would provide much-needed headroom for policymakers to consider a possible rate cut later in the year.
The S&P 500 index and the Nasdaq Composite declined, and the yield on Treasury notes edged slightly lower after weak manufacturing data weighed on the market.
Moreover, the Federal Reserve is likely to keep rates unrevised in the near future, as the central bank awaits solid evidence of inflation to be on a sustained downward path towards its target rate of 2%.
In a busy week of economic reports, investors are looking forward to the release of the JOLT, or Job Openings and Labor Turnover Survey, and factor orders reports today, and the nonfarm payroll update for May is scheduled to be released on Friday.
The number of job openings changed little, at 8.1 million in April, the U.S. Bureau of Labor Statistics reported today.
The number of job openings declined by 296,000 from the previous month, the lowest level since February 2021.
Job openings decreased by 204,000 in healthcare and social assistance, by 59,000 in state and local government education, but increased by 50,000 in private educational services.
Over the month, both the number of hires and total separations were little changed, at 5.6 million and 5.4 million, respectively.
U.S. Indexes and Treasury Yields
The S&P 500 index decreased 0.2% to 5,271.99, and the Nasdaq Composite fell 0.3% to 16,793.31.
The yield on 2-year Treasury notes edged lower to 4.80%, 10-year Treasury notes decreased to 4.36%, and 30-year Treasury bonds edged higher to 4.51%.
Crude oil prices declined for the fifth day in a row on the expectation of rising supply from OPEC+ member nations.
Over the weekend, the oil-producing nations of OPEC+ announced their plans to keep production cuts until the end of the year in an effort to prevent the price of oil from sliding further.
WTI crude oil decreased $0.66 to $73.58 a barrel, and natural gas prices fell 0.1 cents to $2.75 a thermal unit.
Gold decreased by $21.79 to $2,328.85 an ounce, and silver was down $1.20 to $29.52.
The dollar index, which weighs the U.S. currency against a basket of foreign currencies, edged lower to 104.29.
U.S. Stock Movers
Intel Corp. increased 0.3% to $30.33 after the advanced chip maker announced the release of new artificial intelligence chips as the company played catch with rivals Nvidia and AMD.
Bath & Body Works declined 7.3% to $48.01 after the personal products and fragrance retailer topped revenue and earnings estimates in the first quarter, but the retailer's current quarter outlook fell short of market expectations.
European Market Turn Lower Ahead of Rate Decisions
European markets gave up gains from the previous session as investors awaited monetary policy decisions on Thursday.
Benchmark indexes in Paris, London, and Frankfurt declined between 0.5% and 1.2% in choppy trading, and bond yields in the region edged lower.
Germany's Jobless Rate Held Steady at 5.9% In May
Germany's seasonally adjusted jobless rate held steady at 5.9% for the sixth consecutive session in a row in May, the labor ministry reported Tuesday.
The jobless rate rose to the highest level for the first time since June 2021.
The number of unemployed persons increased by 25,000 to 2.76 million, marking the 17th month of rising unemployment in a row.
U.K. Retail Sales Struggled to Advance in May
The UK's retail sales rose at a slower annual pace in May, according to the latest report released by the British Retail Consortium.
Total retail sales increased by 0.7% in May, slower than the 3.9% increase in the corresponding month a year ago.
The increase in retail sales was above the 3-month average growth of 0.3% and below the 12-month average growth of 2.0%.
Food sales increased 3.6%, and non-food sales decreased 2.4% over the three months to May.
"Despite a strong bank holiday weekend for retailers, minimal improvement in weather across most of May meant only a modest rebound in retail sales last month," said Helen Dickinson, chief executive of the BRC.
Europe Indexes and Yields
The DAX index decreased by 1.1% to 18,405.64; the CAC-40 index fell by 0.8% to 7,937.90; and the FTSE 100 index declined by 0.4% to 8,232.04.
The yield on 10-year German bonds edged lower to 2.55%; French bonds inched lower to 3.04%; the UK gilts edged lower to 4.20%; and Italian bonds inched higher to 3.88%.
The euro edged higher to $1.086; the British pound inched higher to $1.275; and the U.S. dollar weakened to 89.35 Swiss cents.
Brent crude decreased $1.35 to $77.01 a barrel, and the Dutch TTF natural gas declined by €1.06 to €35.09 per MWh.
Europe Stock Movers
A.P. Moeller Maersk decreased a fraction to DKK11,730, despite the company raising its annual profit outlook.
British American Tobacco declined 1.2% to 2,405.0 pence after the cigarette maker said its first-half revenue and adjusted operating profit, on an organic and constant currency basis, were "single-digit."
Wizz Air Holdings rose 0.4% to 2,428.0 pence after the deep discount air carrier said passenger booking jumped 2.1% and load factor improved slightly in May.
Credit Agricole declined 1.2% to €14.70 after the French lender said its unit, Indosuez Wealth Management, has finalized the purchase of Bank Degroof Petercam.
Vistry Group declined 1.3% to 1,291.0 pence after the home builder agreed to sell 1,750 homes to the private equity group Backstone and its partner Regis in a £580 million deal.
The group of "affordable homes" are located across 36 developments in south-east England and meets demands from housing associations and families.
Vistry said most homes are expected to be delivered over the next two years, with the first batch of deliveries in June.
Nikkei Index In Tokyo Halts a Two-day Rally, Automakers In Focus
Japan's stock market indexes halted two-day gains amid weak market sentiment, valuation worries, and a lack of catalysts.
The Nikkei and the Topix index turned lower following mixed closings in overnight trading in New York after the U.S. manufacturing sector contracted for the second month in a row, according to a private survey.
The weakness in the U.S. manufacturing sector raised speculation that the U.S. Federal Reserve may be able to pass at least one rate cut before the end of the year.
Automakers were in focus after Japanese automakers reported a 15.7% increase in vehicle sales in North America in May to 2.2 million units.
Closer to home, investors are looking ahead to the release of Japanese wage and household data this week.
The Japanese yen hovered near 156.03 against the U.S. dollar in late afternoon trading in Tokyo as investors continued to bet on additional weakness in the Japanese yen.
Crude oil futures prices extended a two-day drop to 5% after OPEC+ announced its plans to phase out voluntary production cuts over the next year.
Brent crude oil futures for immediate-month delivery decreased 1.1% to $77.64 per barrel.
Japan Stock Movers
The Nikkei 225 stock average decreased 0.4% to 38,766.29, and the Topix index dropped 0.4% to 2,786.64.
Tech stocks were among the leading decliners following the weakness in overnight trading in New York.
Advantest, Tokyo Electron, Screen Holdings, and Softbank declined between 0.3% and 1.2%.
Banks lacked direction, and Sumitomo Mitsui traded nearly unchanged, Mizuho Financial declined 0.3%, and Mitsubishi UFJ fell 1.0%.
Toyota Motor decreased 1.3% to ¥3,299.0 after the vehicle maker temporarily halted shipments of some models on safety concerns.
Nissan Chemical advanced 4.2% to ¥4,814.0, and J. Front Retailing added 3.2% to ¥1,600.50.
Diversified conglomerates, known as Shogo Shosha, traded down.
Mitsui & Company fell 2.9% to ¥7,846.0, Mitsubishi Corp. fell 1.6% to ¥3,305.0, Marubeni declined 1.7% to ¥3,037.0, and Itochu decreased 1% to ¥7,457.0.
Hopes of Additional Supportive Measures Lift China Indexes
Market indexes in Hong Kong and Shanghai advanced, and the yuan faced headwinds as investors debated the strength of the economic recovery.
The CSI 300 and Hang Seng indexes edged up in active trading as investors hoped policymakers were preparing to provide additional measures to support financial and property markets.
Despite the recent flurry of announcements from the People's Bank of China, regulatory agencies, and leading policymakers, little has changed on the ground.
Consumer sentiment remains cautious amid weak job markets and an uneven economic recovery, which has generally bypassed small and medium businesses.
Moreover, the announced measures to support the property market have failed to revive transactions and improve liquidity among large developers.
Foreign investors are also avoiding Chinese stocks, despite their cheap valuation and stable earnings, because of ongoing geopolitical tensions, regulatory uncertainty, and the government's policy favoring large domestic companies.
The Chinese yuan traded around 7.25 against the U.S. dollar, and the yield on China's 10-year government bond held at 2.3% after a private survey showed activities in the manufacturing sector accelerated in May, contrasting the government survey showing a decline.
China Stock Movers
The CSI 300 index increased 0.4% to 3,602.60, and the Hang Seng Index advanced 0.2% to 18,441.59.
Banks generally traded higher in Shanghai and Hong Kong in the hopes that the People's Bank of China may ease requirements for mortgage loans.
Bank of China decreased 3.7% to HK$3.70, China Merchants Bank gained 0.1% to $35.30, and ICBC decreased 0.7% to $4.44.
Vehicle makers traded higher ahead of international trade statistics later in the week, and investors are hoping that exports of electric vehicles are likely to sustain elevated growth.
Li Auto fell 2.9% to $79.95, BYD added 0.4% to $231.40, and Xpeng decreased 1.3% to $32.25.
Internet companies edged higher in Hong Kong as foreign investors searched for bargains in beaten-down stocks.
Tencent Holdings increased 0.6% to $377.20, Meituan jumped 4.2% to HK$113.50, and Alibaba Group decreased 1.3% to HK$76.25.
Property stocks advanced in the hopes of additional measures to improve liquidity among large developers.
China Vanke, the largest residential developer in China, said sales in May increased from the prior month by 11.2% to US$3.2 billion.
China Vanke jumped HK$5.75, China Resources Land added 3% to HK$30.10, and Longfor Group added 3.3% to HK$12.98.
India Indexes Collapse 6% After Ruling Coalition Suffered Significant Setback In National Election
Market indexes on Dalal Street fell sharply in Tuesday's trading, as vote counting in the Lok Sabha election showed tighter-than-expected races in several leading states.
The Sensex and the Nifty indexes dropped 5.8% after the BJP-led NDA alliance was ahead in 293 seats and the opposition alliance INDIA was leading in 232 seats.
The early results were in sharp contrast to the expectations set by the leading exit polls for the NDA alliance to win at least 355 seats.
Prime Minister Narendra Modi's government is looking for a rare third term, and the winning coalition needs at least 272 seats to form the next government.
In the 2019 general election, the NDA alliance won 352 seats and the opposition alliance of parties controlled 94 seats.
In a broad market selloff, market indexes opened lower and continued to slide further as vote counting continued.
At market close, the NDA was ahead in 295 seats, and the INDIA Bloc alliance was leading in 232 seats, placing the opposition alliance closer to forming a government, which every leading exit poll failed to predict.
The BJP-led NDA is still likely to form the next government, but the slimmer majority of the alliance raises the prospect of an unstable government.
Indexes and Yields
The Sensex index decreased by 5,8% to 72,079.05, and the Nifty index fell by 5.9% to 21,884.50.
On the Mumbai stock exchange, 139 stocks traded at their 52-week highs, and 292 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds inched lower to 6.94%, and the Indian rupee edged higher at ₹83.15 against the U.S. dollar.
The gold price increased by 0.01% to ₹72,211 per ten grams, and silver edged up by 0.5% to ₹92,045 per kilo.
Crude oil futures prices declined by 4% after OPEC+ announced its plans to end voluntary quotas over the next year.
Crude oil decreased by 4.2% to ₹6,176 per barrel, and natural gas rose by 5% to ₹226.10 per thermal unit.
U.S. Movers: Bath & Body Works, Intel, Oil Explorers
Scott Peters
04 Jun, 2024
New York City
Intel Corp. increased 0.3% to $30.33 after the advanced chip maker announced the release of new artificial intelligence chips as the company played catch with rivals Nvidia and AMD.
Bath & Body Works declined 7.3% to $48.01 after the personal products and fragrance retailer topped revenue and earnings estimates in the first quarter, but the retailer's current quarter outlook fell short of market expectations.
Oil complex stock traded down after crude oil prices headed lower for the fifth session in a row and dropped to a four-month low on the fears that the global supply could rise later in the year.
Over the weekend, the oil-producing nations of OPEC+ announced their plans to keep production cuts until the end of the year in an effort to prevent the price of oil from sliding further.
Exxon Mobil declined 2.4% to $111.73, Chevron Corp. decreased 1.4% to $155.20, and ConocoPhillips fell 1.1% to $112.60.
U.S. Major Averages Edged Lower On Economic Growth Fears, Job Openings Changed Little
Barry Adams
04 Jun, 2024
New York City
Stocks on Wall Street lacked direction, and benchmark indexes traded down in early trading.
The S&P 500 index and the Nasdaq Composite declined, and the yield on Treasury notes edged slightly lower after weak manufacturing data weighed on the market.
Moreover, the Federal Reserve is likely to keep rates unrevised in the near future, as the central bank awaits solid evidence of inflation to be on a sustained downward path towards its target rate of 2%.
In a busy week of economic reports, investors are looking forward to the release of the JOLT, or Job Openings and Labor Turnover Survey, and factor orders reports today, and the nonfarm payroll update for May is scheduled to be released on Friday.
The number of job openings changed little, at 8.1 million in April, the U.S. Bureau of Labor Statistics reported today.
The number of job openings declined by 296,000 from the previous month, the lowest level since February 2021.
Job openings decreased by 204,000 in healthcare and social assistance, by 59,000 in state and local government education, but increased by 50,000 in private educational services.
Over the month, both the number of hires and total separations were little changed, at 5.6 million and 5.4 million, respectively.
U.S. Indexes and Treasury Yields
The S&P 500 index decreased 0.2% to 5,274.14, and the Nasdaq Composite fell 0.3% to 16,785.85.
The yield on 2-year Treasury notes edged lower to 4.80%, 10-year Treasury notes decreased to 4.36%, and 30-year Treasury bonds edged higher to 4.51%.
Crude oil prices declined for the fifth day in a row on the expectation of rising supply from OPEC+ member nations.
Over the weekend, the oil-producing nations of OPEC+ announced their plans to keep production cuts until the end of the year in an effort to prevent the price of oil from sliding further.
WTI crude oil decreased $1.24 to $72.97 a barrel, and natural gas prices fell 0.1 cents to $2.75 a thermal unit.
Gold decreased by $15.35 to $2,335.06 an ounce, and silver was down 72 cents to $29.99.
The dollar index, which weighs the U.S. currency against a basket of foreign currencies, edged lower to 104.29.
U.S. Stock Movers
Intel Corp. increased 0.3% to $30.33 after the advanced chip maker announced the release of new artificial intelligence chips as the company played catch with rivals Nvidia and AMD.
Bath & Body Works declined 7.3% to $48.01 after the personal products and fragrance retailer topped revenue and earnings estimates in the first quarter, but the retailer's current quarter outlook fell short of market expectations.
Europe Movers: BAT, Credit Agricole, Maersk, Vistry, Wizz Air
Inga Muller
04 Jun, 2024
Frankfurt
European market indexes struggled to advance ahead of the monetary policy decisions on Thursday, and investors are widely anticipating the first rate cut since 2016.
The DAX index decreased by 1.2% to 18,389.41; the CAC-40 index fell by 0.9% to 7,925.94; and the FTSE 100 index declined by 0.5% to 8,223.02.
The yield on 10-year German bonds edged lower to 2.55%; French bonds inched lower to 3.04%; the UK gilts edged lower to 4.20%; and Italian bonds inched higher to 3.88%.
A.P. Moeller Maersk decreased a fraction to DKK11,730, despite the company raising its annual profit outlook.
British American Tobacco declined 1.2% to 2,405.0 pence after the cigarette maker said its first-half revenue and adjusted operating profit, on an organic and constant currency basis, were "single-digit."
Wizz Air Holdings rose 0.4% to 2,428.0 pence after the deep discount air carrier said passenger booking jumped 2.1% and load factor improved slightly in May.
Credit Agricole declined 1.2% to €14.70 after the French lender said its unit, Indosuez Wealth Management, has finalized the purchase of Bank Degroof Petercam based in Luxembourg.
Vistry Group declined 1.3% to 1,291.0 pence after the home builder agreed to sell 1,750 homes to the private equity group Backstone and its partner Regis in a £580 million deal.
The group of "affordable homes" are located across 36 developments in south-east England and meets demands from housing associations and families.
Vistry said most homes are expected to be delivered over the next two years, with the first batch of deliveries in June.
Germany's Jobless Rate Held Steady for the 6th Consecutive Month, UK's Retail Sales Growth Slowed In May
Bridgette Randall
04 Jun, 2024
Frankfurt
European markets gave up gains from the previous session as investors awaited monetary policy decisions on Thursday.
Benchmark indexes in Paris, London, and Frankfurt declined between 0.5% and 1.2% in choppy trading, and bond yields in the region edged lower.
Germany's Jobless Rate Held Steady at 5.9% In May
Germany's seasonally adjusted jobless rate held steady at 5.9% for the sixth consecutive session in a row in May, the labor ministry reported Tuesday.
The jobless rate rose to the highest level for the first time since June 2021.
The number of unemployed persons increased by 25,000 to 2.76 million, marking the 17th month of rising unemployment in a row.
U.K. Retail Sales Struggled to Advance in May
The UK's retail sales rose at a slower annual pace in May, according to the latest report released by the British Retail Consortium.
Total retail sales increased by 0.7% in May, slower than the 3.9% increase in the corresponding month a year ago.
The increase in retail sales was above the 3-month average growth of 0.3% and below the 12-month average growth of 2.0%.
Food sales increased 3.6%, and non-food sales decreased 2.4% over the three months to May.
"Despite a strong bank holiday weekend for retailers, minimal improvement in weather across most of May meant only a modest rebound in retail sales last month," said Helen Dickinson, chief executive of the BRC.
Europe Indexes and Yields
The DAX index decreased by 1.2% to 18,389.41; the CAC-40 index fell by 0.9% to 7,925.94; and the FTSE 100 index declined by 0.5% to 8,223.02.
The yield on 10-year German bonds edged lower to 2.55%; French bonds inched lower to 3.04%; the UK gilts edged lower to 4.20%; and Italian bonds inched higher to 3.88%.
The euro edged higher to $1.086; the British pound inched higher to $1.275; and the U.S. dollar weakened to 89.35 Swiss cents.
Brent crude decreased $1.35 to $77.01 a barrel, and the Dutch TTF natural gas declined by €1.06 to €35.09 per MWh.
Europe Stock Movers
A.P. Moeller Maersk decreased a fraction to DKK11,730, despite the company raising its annual profit outlook.
British American Tobacco declined 1.2% to 2,405.0 pence after the cigarette maker said its first-half revenue and adjusted operating profit, on an organic and constant currency basis, were "single-digit."
Wizz Air Holdings rose 0.4% to 2,428.0 pence after the deep discount air carrier said passenger booking jumped 2.1% and load factor improved slightly in May.
Credit Agricole declined 1.2% to €14.70 after the French lender said its unit, Indosuez Wealth Management, has finalized the purchase of Bank Degroof Petercam.
Vistry Group declined 1.3% to 1,291.0 pence after the home builder agreed to sell 1,750 homes to the private equity group Backstone and its partner Regis in a £580 million deal.
The group of "affordable homes" are located across 36 developments in south-east England and meets demands from housing associations and families.
Vistry said most homes are expected to be delivered over the next two years, with the first batch of deliveries in June.
Nikkei Index In Tokyo Halts a Two-day Rally, Automakers In Focus
Akira Ito
04 Jun, 2024
Tokyo
Japan's stock market indexes halted two-day gains amid weak market sentiment, valuation worries, and a lack of catalysts.
The Nikkei and the Topix index turned lower following mixed closings in overnight trading in New York after the U.S. manufacturing sector contracted for the second month in a row, according to a private survey.
The weakness in the U.S. manufacturing sector raised speculation that the U.S. Federal Reserve may be able to pass at least one rate cut before the end of the year.
Automakers were in focus after Japanese automakers reported a 15.7% increase in vehicle sales in North America in May to 2.2 million units.
Closer to home, investors are looking ahead to the release of Japanese wage and household data this week.
The Japanese yen hovered near 156.03 against the U.S. dollar in late afternoon trading in Tokyo as investors continued to bet on additional weakness in the Japanese yen.
Crude oil futures prices extended a two-day drop to 5% after OPEC+ announced its plans to phase out voluntary production cuts over the next year.
Brent crude oil futures for immediate-month delivery decreased 1.1% to $77.64 per barrel.
Japan Stock Movers
The Nikkei 225 stock average decreased 0.4% to 38,766.29, and the Topix index dropped 0.4% to 2,786.64.
Tech stocks were among the leading decliners following the weakness in overnight trading in New York.
Advantest, Tokyo Electron, Screen Holdings, and Softbank declined between 0.3% and 1.2%.
Banks lacked direction, and Sumitomo Mitsui traded nearly unchanged, Mizuho Financial declined 0.3%, and Mitsubishi UFJ fell 1.0%.
Toyota Motor decreased 1.3% to ¥3,299.0 after the vehicle maker temporarily halted shipments of some models on safety concerns.
Nissan Chemical advanced 4.2% to ¥4,814.0, and J. Front Retailing added 3.2% to ¥1,600.50.
Diversified conglomerates, known as Shogo Shosha, traded down.
Mitsui & Company fell 2.9% to ¥7,846.0, Mitsubishi Corp. fell 1.6% to ¥3,305.0, Marubeni declined 1.7% to ¥3,037.0, and Itochu decreased 1% to ¥7,457.0.
Hopes of Additional Supportive Measures Lift China Indexes
Li Chen
04 Jun, 2024
Hong Kong
Market indexes in Hong Kong and Shanghai advanced, and the yuan faced headwinds as investors debated the strength of the economic recovery.
The CSI 300 and Hang Seng indexes edged up in active trading as investors hoped policymakers were preparing to provide additional measures to support financial and property markets.
Despite the recent flurry of announcements from the People's Bank of China, regulatory agencies, and leading policymakers, little has changed on the ground.
Consumer sentiment remains cautious amid weak job markets and an uneven economic recovery, which has generally bypassed small and medium businesses.
Moreover, the announced measures to support the property market have failed to revive transactions and improve liquidity among large developers.
Foreign investors are also avoiding Chinese stocks, despite their cheap valuation and stable earnings, because of ongoing geopolitical tensions, regulatory uncertainty, and the government's policy favoring large domestic companies.
The Chinese yuan traded around 7.25 against the U.S. dollar, and the yield on China's 10-year government bond held at 2.3% after a private survey showed activities in the manufacturing sector accelerated in May, contrasting the government survey showing a decline.
China Stock Movers
The CSI 300 index increased 0.4% to 3,602.60, and the Hang Seng Index advanced 0.2% to 18,441.59.
Banks generally traded higher in Shanghai and Hong Kong in the hopes that the People's Bank of China may ease requirements for mortgage loans.
Bank of China decreased 3.7% to HK$3.70, China Merchants Bank gained 0.1% to $35.30, and ICBC decreased 0.7% to $4.44.
Vehicle makers traded higher ahead of international trade statistics later in the week, and investors are hoping that exports of electric vehicles are likely to sustain elevated growth.
Li Auto fell 2.9% to $79.95, BYD added 0.4% to $231.40, and Xpeng decreased 1.3% to $32.25.
Internet companies edged higher in Hong Kong as foreign investors searched for bargains in beaten-down stocks.
Tencent Holdings increased 0.6% to $377.20, Meituan jumped 4.2% to HK$113.50, and Alibaba Group decreased 1.3% to HK$76.25.
Property stocks advanced in the hopes of additional measures to improve liquidity among large developers.
China Vanke, the largest residential developer in China, said sales in May increased from the prior month by 11.2% to US$3.2 billion.
China Vanke jumped HK$5.75, China Resources Land added 3% to HK$30.10, and Longfor Group added 3.3% to HK$12.98.
India Movers: Biocon, Kalyan Jewellers, M&M Financial, RVNL, Sansera Engineering
Arun Goswami
04 Jun, 2024
Mumbai
Stock gauges were under pressure after early vote counting in the Lok Sabha showed the BJP-led ruling alliance is likely to get far fewer than expected seats.
The Sensex index increased by 3% to 74,313.70, and the Nifty index fell by 2.8% to 22,575.6.
On the Mumbai stock exchange, 63 stocks traded at their 52-week highs, and 44 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds inched lower to 6.94%, and the Indian rupee edged higher at ₹83.15 against the U.S. dollar.
RVNL increased 6.1% to ₹404.90 after the railway construction company won an order worth ₹440 crore from South Central Railway.
Mahindra & Mahindra Financial Services fell 2.7% to ₹272.70, and the vehicle finance company said loans issued increased 7% from a year ago to ₹4,430 crore.
The company also said its total assets rose 23% from a year ago to 1,05,250 crore.
Sansera Engineering dropped 1.1% to ₹1,036.95, and the group company's affiliate, MMRFIC Technology, opened a new research and development facility in Bengaluru for semiconductor packaging, assembly, and testing.
Biocon Ltd. jumped 0.4% to ₹310.50, and the company said its injectable drug to treat yeast and fungal infections received approval from the U.S. drug regulator.
Kalyan Jewellers rose 1.4% to ₹394.0, and the company said it acquired the remaining 15% stake in the online jewelry portal, Candere, from Rupesh Jain for ₹42 crore.
U.S. Indexes Struggled to Advance and Treasury Yields Turned Lower
Alexander Garcia
03 Jun, 2024
Miami
Stocks on Wall Street turned lower after two hours of trading following the latest update on the manufacturing sector.
Market indexes struggled after U.S. manufacturing showed signs of a slowdown, and the S&P 500 index and Nasdaq turned lower by more than 0.5%.
The ISM manufacturing purchasing managers' index declined to 48.7 in May from 49.2 in April.
The reading showed another month of contraction on soft demand, and new order growth eased and the backlog of orders fell.
The S&P 500 and the Nasdaq Composite have advanced in six of the last seven months, following better-than-expected earnings for the second quarter in a row and the continued surge in semiconductor stocks linked to artificial intelligence.
The Nasdaq Composite halted its five consecutive weekly gains.
This week, investors are looking forward to the release of two critical labor market updates: nonfarm payrolls and the job opening reports.
The nonfarm payroll employment data, scheduled to be released on Friday, is expected to increase by 185,000 after expanding by 170,000 in April, according to a survey conducted by Ticker.com.
The jobless rate is expected to remain steady at 3.9%, but wage gains are likely to increase at a faster pace of 0.3%.
The number of job openings in April, scheduled to be released on Tuesday, is expected to ease to 8.4 million, closer to the normal pattern of hiring.
Private payrolls in May are likely to accelerate to 190,000, following the gains in April, according to the survey released by ADP.
The ADP survey is generally unreliable, and monthly data show larger swings than the government's nonfarm payroll data.
U.S. Indexes and Treasury Yields
The S&P 500 index decreased 0.3% t6 5,247.80, and the Nasdaq Composite fell 0.2% to 16,696.56.
The yield on 2-year Treasury notes edged lower to 4.83%, 10-year Treasury notes decreased to 4.41%, and 30-year Treasury bonds edged higher to 4.55%.
Over the weekend, the oil-producing nations of OPEC+ announced their plans to keep production cuts until the end of the year in an effort to prevent the price of oil from sliding further.
WTI crude oil increased $2.79 to $74.20 a barrel, and natural gas prices rose 9 cents to $2.68 a thermal unit.
Gold increased by $21.33 to $2,348.60 an ounce, and silver rose 23 cents to $30.64.
The dollar index, which weighs the U.S. currency against a basket of foreign currencies, edged lower to 104.20.
U.S. Stock Movers
Stericylce soared 14.5% to $59.25 after the company agreed to be acquired by Waster Management for $7.2 billion.
Waste management decreased 1.8% to $206.80.
GameStop soared 74% to $40.35 on speculation that investor Keith Gill, who inspired a short squeeze in the stock in 2021, could have a large position in the stock.
The social media accounts controlled by Keith Gill showed 5 million shares and 120,000 call options.
MarineMax jumped 19.3% to $34.02, and the company is in talks to be acquired by OneWater Marine for $40 a share.
The news was first reported by Bloomberg News and could not be independently verified.
Spotify Technology jumped 4.9% to $311.12 after the music streaming service provider announced a price increase for its premium subscriptions in the U.S. starting in July.
Paramount Global jumped 6.4% to $22.0 after the media company agreed on merger terms with Skydance.
The companies are expected to announce the details of the deal terms as early as this week, according to reports by CNBC and The Wall Street Journal.
Nvidia Corp. jumped 4.2% to $1,142.19 after the advanced chipmaker announced three new products.
Rate Cut Hopes Lift European Markets 1%
Market indexes in Europe soared as much as 1% in Monday's trading on the expectation that the European Central Bank is ready to cut its rate for the first time since 2016.
Benchmark indexes in Frankfurt, Paris, and London closed down in the previous week amid rate jitters and high-valuation worries. as investors reassessed the economic outlook amid high energy prices and weak consumer sentiment.
The European Central Bank is expected to cut its policy rate by 25 basis points, and investors are looking for clues about the possible additional rate cuts.
In Monday's trading, market sentiment was bolstered after the eurozone's manufacturing activity outlook was revised slightly lower.
Eurozone Manufacturing Downturn Eases
On the economic front this week, investors are looking forward to the release of a final update on the first quarter GDP growth, retail sales, producer price inflation, and employment estimates in the eurozone.
Germany and France are also set to release international trade updates.
The eurozone manufacturing purchasing managers' index was revised to a 14-month high to 47.3 in May from 45.6 in April, S&P Global and Hamburg Commercial Bank (HCOB) said in a joint report.
Two weeks ago, in the preliminary estimate, the index was valued at 47.4.
France's manufacturing index was revised one point higher to 46.4, but the index remains deep in contraction territory.
The index value below 50 indicates contraction in growth, and the index value above 50 shows growth.
“This could be the turning point for the manufacturing sector.
The industry is on the verge of halting the production decline that has persisted since April 2023," said Cyrus de la Rubia, HCOB's chief economist.
France and Germany saw manufacturing contractions ease, but Spain and the Netherlands experienced an acceleration in growth in May.
Europe Indexes and Yields
The DAX index increased by 0.6% to 18,608.16; the CAC-40 index rose by 0.06% to 7,998,02; and the FTSE 100 index advanced by 0.2% to 8,262.75.
At the end of last week, the DAX index declined 1.3% and advanced 3.2% in May. and the CAC 40 index fell 1.6% in the week and declined 0.1% in May.
The FTSE 100 index declined 0.6% in the week and rose 1.6% in May.
The yield on 10-year German bonds edged lower to 2.62%; French bonds inched lower to 3.10%; the UK gilts edged lower to 4.29%; and Italian bonds inched higher to 3.91%.
The euro edged higher to $1.082; the British pound inched higher to $1.272; and the U.S. dollar gained to 90.14 Swiss cents.
Brent crude decreased $2.50 to $78.51 a barrel, and the Dutch TTF natural gas rose by €1.50 to €36.50 per MWh.
Europe Stock Movers
L. M. Ericsson increased 2.7% to SEK 66.12 after the company said its four-year compliance period for the U.S. anti-corruption agreement ended on June 2.
Cerillion PLC jumped 3.2% to 1,588.0 pence after the customer billion system provider for the telecom industry signed an agreement with Virgin Media Ireland.
Sirius Real Estate jumped 1.6% to 98.90 pence after the commercial and industrial real estate developer reported higher fund flows in the year ended in March.
GSK plc dropped 9.6% to 1,600.81 pence after a state court in Delaware found enough reasons to link its Zantac heartburn drug to cancer, permitting as many as 70,000 lawsuits to go forward.
China-linked luxury stocks advanced following the news that China's manufacturing activities expanded for the seventh month in a row in May.
LVMH, L'Oreal, Kering, and Richemont jumped between 0.2% and 0.6%.
Japan's Corporate Capital Spending Rises 12th Consecutive Quarter
In a broad rally, market indexes advanced in Monday's trading in Tokyo.
The Nikkei 225 and the Topix indexes advanced following the market gains in Friday's trading in New York and Europe.
Market sentiment was positive for the second session in a row after the PCE price index, an alternative measure of inflation, held steady at 2.7%.
The PCE price index increased at an annual pace of 2.7% in April, matching the four-month high rate in March.
The core PCE price index, which excludes food and energy prices, held steady at 2.9%, matching the rate in the previous two consecutive months.
Closer to home, Japanese companies increased capital expenditure on plant and equipment by 6.8% from a year ago in the first quarter, an increase for the twelfth quarter in a row, but slowed from the 16.4% jump in the fourth quarter of 2023.
Japan Stock Movers
The Nikkei 225 Stock Average rose 1.2% to 38,965.50, and the Topix index advanced 1% to 2,798.93.
Financial stocks led the gainers in Tokyo trading, and Mitsubishi UFJ, Mizuho Financial Group, and Sumitomo Mitsui gained between 1.5% and 1.9%.
Tech stocks also gained following the late rally in tech stocks in overnight trading in New York.
Tokyo Electron, Advantest, Screen Holdings, and Softbank jumped between 0.5% and 1.3%.
Chemical and pharmaceutical companies were also in favor of Monday's trading.
Nissan Chemical jumped 6% to ¥4,620.0, and Sumitomo Pharma jumped 7.5% to ¥328.0.
Mercari, the community marketplace operator, jumped 11.7% to ¥2,048.0.
China's Factory Activities Accelerates to a 2-year High
Stocks in Shanghai and Hong Kong advanced in Monday's trading after a private survey showed a sustained expansion in general manufacturing activities.
Benchmark indexes in Shanghai and Hong Kong jumped after the general manufacturing activities index showed expansion for the seventh month in a row and accelerated growth for the fourth consecutive month in May.
The Caixin China General Manufacturing Purchasing Managers' Index rose to 51.7 in May from 51.4 in April, S&P Global reported Monday.
The rate of growth was the fastest in 23 months, with firms in the consumer segment reporting sharp growth in output, driven by demand from domestic and foreign customers for new products.
"Backlogged work meanwhile accumulated for a third month in a row and at the quickest pace since September 2021 amid rising new work inflows," the S&P report highlighted.
Last week, the official manufacturing survey, which is based on smaller number of companies and relies on large and government controlled companies, unexpectedly contracted to 49.5 in May from 50.4 in April.
China Stock Movers
The CSI 300 index increased 0.3% to 3,588.99, and the Hang Seng Index jumped 2.5% to 18,530.77.
In broad recovery, electric vehicle makers, banks, property developers, and general manufacturing companies advanced in Monday's trading.
Li Auto jumped 5.3% to HK$82.30, BYD gained HK$234.0, and Geely Automobile Holdings advanced 4.6% to $9.92.
Alibaba Group increased 2.6% to HK$76.85, JD.com traded higher by 2.3% to HK$116.60, and Tencent Holdings jumped 4.4% to HK$376.0.
HSBC Holdings gained 1.4% to HK$69.50, Bank of China increased 1.6% to HK$3.76, and China Minsheng Banking rose 1% to HK$2.99.
U.S. Movers: GameStop, Nvidia, Paramount Global, MarineMax, OneWater Marine, Spotify, Stericycle, Waste Management
Scott Peters
03 Jun, 2024
New York City
Stericylce soared 14.5% to $59.25 after the company agreed to be acquired by Waster Management for $7.2 billion.
Waste management decreased 1.8% to $206.80.
GameStop soared 74% to $40.35 on speculation that investor Keith Gill, who inspired a short squeeze in the stock in 2021, could have a large position in the stock.
The social media accounts controlled by Keith Gill showed 5 million shares and 120,000 call options.
MarineMax jumped 19.3% to $34.02, and the company is in talks to be acquired by OneWater Marine for $40 a share.
The news was first reported by Bloomberg News and could not be independently verified.
Spotify Technology jumped 4.9% to $311.12 after the music streaming service provider announced a price increase for its premium subscriptions in the U.S. starting in July.
Paramount Global jumped 6.4% to $22.0 after the media company agreed on merger terms with Skydance.
The companies are expected to announce the details of the deal terms as early as this week, according to reports by CNBC and The Wall Street Journal.
Nvidia Corp. jumped 4.2% to $1,142.19 after the advanced chipmaker announced three new products.
S&P 500 and Nasdaq Advance On Merger Monday, Waste Management to Acquire Stericycle
Barry Adams
03 Jun, 2024
New York City
Stocks edged slightly higher in early trading on Monday as investors hoped that the recent market momentum would continue.
The S&P 500 and the Nasdaq Composite have advanced in six of the last seven months, following better-than-expected earnings for the second quarter in a row and the continued surge in semiconductor stocks linked to artificial intelligence.
The Nasdaq Composite halted its five consecutive weekly gains.
This week, investors in the U.S. are looking forward to the release of two critical labor market updates: nonfarm payrolls and the job opening reports.
Nonfarm payrolls are expected to increase by 185,000 after expanding by 170,000 in April, according to a survey conducted by Ticker.com.
The jobless rate is expected to remain steady at 3.9%, but wage gains are likely to increase at a faster pace of 0.3%.
The number of job openings in April, scheduled to be released on Tuesday, is expected to ease to 8.4 million, closer to the normal pattern of hiring.
Private payrolls in May are likely to accelerate to 190,000, following the gains in April, according to the survey released by ADP.
The ADP survey is generally unreliable, and monthly data show larger swings than the government's nonfarm payroll data.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.3% to 5,292.03, and the Nasdaq Composite dropped 0.6% to 16,851.14.
The yield on 2-year Treasury notes edged lower to 4.86%, 10-year Treasury notes decreased to 4.46%, and 30-year Treasury bonds edged higher to 4.61%.
Over the weekend, the oil-producing nations of OPEC+ announced their plans to keep production cuts until the end of the year in an effort to prevent the price of oil from sliding further.
WTI crude oil increased $0.06 to $77.07 a barrel, and natural gas prices rose 9 cents to $2.67 a thermal unit.
Gold increased by $1.25 to $2,328.18 an ounce, and silver rose 5 cents to $30.35.
The dollar index, which weighs the U.S. currency against a basket of foreign currencies, edged lower to 104.63.
U.S. Stock Movers
Stericylce soared 14.5% to $59.25 after the company agreed to be acquired by Waster Management for $7.2 billion.
Waste management decreased 1.8% to $206.80.
GameStop soared 74% to $40.35 on speculation that investor Keith Gill, who inspired a short squeeze in the stock in 2021, could have a large position in the stock.
The social media accounts controlled by Keith Gill showed 5 million shares and 120,000 call options.
MarineMax jumped 19.3% to $34.02, and the company is in talks to be acquired by OneWater Marine for $40 a share.
The news was first reported by Bloomberg News and could not be independently verified.
Spotify Technology jumped 4.9% to $311.12 after the music streaming service provider announced a price increase for its premium subscriptions in the U.S. starting in July.
Paramount Global jumped 6.4% to $22.0 after the media company agreed on merger terms with Skydance.
The companies are expected to announce the details of the deal terms as early as this week, according to reports by CNBC and The Wall Street Journal.
Nvidia Corp. jumped 4.2% to $1,142.19 after the advanced chipmaker announced three new products.
Europe Movers: Cerillion, Ericsson, GSK, Sirius Real Estate
Inga Muller
03 Jun, 2024
Frankfurt
The European Central Bank is widely anticipated to begin its rate-cut cycle with the first cut this week.
Market indexes rebounded after falling sharply in the previous three consecutive weeks on the worry of resurgent inflation.
The DAX index increased by 0.8% to 18,650.40; the CAC-40 index rose by 0.4% to 8,024,37; and the FTSE 100 index advanced by 0.3% to 8,297.98.
At the end of last week, the DAX index declined 1.3% and advanced 3.2% in May. and the CAC 40 index fell 1.6% in the week and declined 0.1% in May.
The FTSE 100 index declined 0.6% in the week and rose 1.6% in May.
The yield on 10-year German bonds edged lower to 2.62%; French bonds inched lower to 3.10%; the UK gilts edged lower to 4.29%; and Italian bonds inched higher to 3.91%.
L. M. Ericsson increased 2.7% to SEK 66.12 after the company said its four-year compliance period for the U.S. anti-corruption agreement ended on June 2.
Cerillion PLC jumped 3.2% to 1,588.0 pence after the customer billion system provider for the telecom industry signed an agreement with Virgin Media Ireland.
Sirius Real Estate jumped 1.6% to 98.90 pence after the commercial and industrial real estate developer reported higher fund flows in the year ended in March.
GSK plc dropped 9.6% to 1,600.81 pence after a state court in Delaware found enough reasons to link its Zantac heartburn drug to cancer, permitting as many as 70,000 lawsuits to go forward to jury trials.
China-linked luxury stocks advanced following the news that China's manufacturing activities expanded for the seventh month in a row in May.
LVMH, L'Oreal, Kering, Hermes, and Richemont jumped between 0.2% and 0.6%.
Rate Cut Hopes Lift European Markets 1%, Manufacturing Downturn Eases In May
Bridgette Randall
03 Jun, 2024
Frankfurt
Market indexes in Europe soared as much as 1% in Monday's trading on the expectation that the European Central Bank is ready to cut its rate for the first time since 2016.
Benchmark indexes in Frankfurt, Paris, and London closed down in the previous week amid rate jitters and high-valuation worries. as investors reassessed the economic outlook amid high energy prices and weak consumer sentiment.
The European Central Bank is expected to cut its policy rate by 25 basis points, and investors are looking for clues about the possible additional rate cuts.
In Monday's trading, market sentiment was bolstered after the eurozone's manufacturing activity outlook was revised slightly lower.
Manufacturing Downturn Eases In Eurozone
On the economic front this week, investors are looking forward to the release of a final update on the first quarter GDP growth, retail sales, producer price inflation, and employment estimates in the eurozone.
Germany and France are also set to release international trade updates.
The eurozone manufacturing purchasing managers' index was revised to a 14-month high to 47.3 in May from 45.6 in April, S&P Global and Hamburg Commercial Bank (HCOB) said in a joint report.
Two weeks ago, in the preliminary estimate, the index was valued at 47.4.
France's manufacturing index was revised one point higher to 46.4, but the index remains deep in contraction territory.
The index value below 50 indicates contraction in growth, and the index value above 50 shows growth.
“This could be the turning point for the manufacturing sector.
The industry is on the verge of halting the production decline that has persisted since April 2023," said Cyrus de la Rubia, HCOB's chief economist.
France and Germany saw manufacturing contractions ease, but Spain and the Netherlands experienced an acceleration in growth in May.
Europe Indexes and Yields
The DAX index increased by 0.8% to 18,650.40; the CAC-40 index rose by 0.4% to 8,024,37; and the FTSE 100 index advanced by 0.3% to 8,297.98.
At the end of last week, the DAX index declined 1.3% and advanced 3.2% in May. and the CAC 40 index fell 1.6% in the week and declined 0.1% in May.
The FTSE 100 index declined 0.6% in the week and rose 1.6% in May.
The yield on 10-year German bonds edged lower to 2.62%; French bonds inched lower to 3.10%; the UK gilts edged lower to 4.29%; and Italian bonds inched higher to 3.91%.
The euro edged higher to $1.082; the British pound inched higher to $1.272; and the U.S. dollar gained to 90.14 Swiss cents.
Brent crude decreased $0.24 to $80.86 a barrel, and the Dutch TTF natural gas rose by €3.54 to €38.74 per MWh.
Europe Stock Movers
L. M. Ericsson increased 2.7% to SEK 66.12 after the company said its four-year compliance period for the U.S. anti-corruption agreement ended on June 2.
Cerillion PLC jumped 3.2% to 1,588.0 pence after the customer billion system provider for the telecom industry signed an agreement with Virgin Media Ireland.
Sirius Real Estate jumped 1.6% to 98.90 pence after the commercial and industrial real estate developer reported higher fund flows in the year ended in March.
GSK plc dropped 9.6% to 1,600.81 pence after a state court in Delaware found enough reasons to link its Zantac heartburn drug to cancer, permitting as many as 70,000 lawsuits to go forward.
China-linked luxury stocks advanced following the news that China's manufacturing activities expanded for the seventh month in a row in May.
LVMH, L'Oreal, Kering, and Richemont jumped between 0.2% and 0.6%.
Japan's Corporate Capital Spending Rises 12th Consecutive Quarter, Nikkei Jumps 1%
Akira Ito
03 Jun, 2024
Tokyo
In a broad rally, market indexes advanced in Monday's trading in Tokyo.
The Nikkei 225 and the Topix indexes advanced following the market gains in Friday's trading in New York and Europe.
Market sentiment was positive for the second session in a row after the PCE price index, an alternative measure of inflation, held steady at 2.7%.
The PCE price index increased at an annual pace of 2.7% in April, matching the four-month high rate in March.
The core PCE price index, which excludes food and energy prices, held steady at 2.9%, matching the rate in the previous two consecutive months.
Closer to home, Japanese companies increased capital expenditure on plant and equipment by 6.8% from a year ago in the first quarter, an increase for the twelfth quarter in a row, but slowed from the 16.4% jump in the fourth quarter of 2023.
Japan Stock Movers
The Nikkei 225 Stock Average rose 1.2% to 38,965.50, and the Topix index advanced 1% to 2,798.93.
Financial stocks led the gainers in Tokyo trading, and Mitsubishi UFJ, Mizuho Financial Group, and Sumitomo Mitsui gained between 1.5% and 1.9%.
Tech stocks also gained following the late rally in tech stocks in overnight trading in New York.
Tokyo Electron, Advantest, Screen Holdings, and Softbank jumped between 0.5% and 1.3%.
Chemical and pharmaceutical companies were also in favor of Monday's trading.
Nissan Chemical jumped 6% to ¥4,620.0, and Sumitomo Pharma jumped 7.5% to ¥328.0.
Mercari, the community marketplace operator, jumped 11.7% to ¥2,048.0.