Market Update
Europe Movers: Anglo American, BHP, Oil Stocks, IDS
Inga Muller
29 May, 2024
Frankfurt
European stock market indexes declined, bond yields rose, and crude oil prices jumped ahead of the OPEC meeting this Sunday.
The DAX index decreased by 0.6% to 18,571.37; the CAC-40 index fell by 0.9% to 7,985.61; and the FTSE 100 index decreased by 0.2% to 8,234.89.
The yield on 10-year German bonds edged up to 2.62%; French bonds inched higher to 3.11%; the UK gilts edged lower to 4.35%; and Italian bonds inched higher to 3.93%.
International Distributions Services advanced 4% to 334.0 after the parent company of Royal Mail accepted a £3.57 billion takeover proposal from EP Group, controlled by Czech billionaire Daniel Kretinsky.
BHP Group gained 2.1% to 2,384.0 pence on a report that the mining company has requested Anglo American to extend the deadline for a final takeover proposal worth £39 billion.
Anglo American decreased 1.9% to 2,511.50 pence.
Oil explorers and refiners extended gains for the second day in a row amid rising tensions in the Middle East, and traders hoped that the OPEC member nations would extend production cuts at the next meeting this Sunday.
BP plc gained 1.6% to 493.60 pence, Shell PLC jumped 1.7% to 2,827.0, and TotalEnergies SE gained 0.4% to €66.43.
European Stocks Face Selling Pressure After Bond Yields Advance
Bridgette Randall
29 May, 2024
Frankfurt
The sharp selloff in the bond market weighed on stock market indexes, and the euro held its ground.
Bonds in the Euro Area sold off after the U.S. Treasury auction of 2-year and 5-year notes was weaker than anticipated.
The U.S. Treasury yields jumped following the unexpected weakness in the auction and sparked a selloff in worldwide bonds.
The yield on the 10-year German Bund increased to a 6-month high, the French bond yield advanced to a one-month high, and the UK 10-year government bond yield jumped to a three-week high.
Investors also pared back rate-cut expectations amid slow progress on disinflation and hawkish comments from policymakers in the U.S. and Europe.
Investors are also looking forward to the release of Germany's consumer price inflation data later in the day.
Benchmark indexes in London, Paris, and Frankfurt traded down, and crude oil prices advanced amid rising tensions in the Middle East.
Spain's Retail Sales Growth Slowed In April
Spain's retail sales increase slowed for the third month in a row, according to the data released by the statistical agency INE.
Retail sales in April rose 0.3% from a year ago, after an upwardly revised 0.9% increase in the previous month.
Retail sales rose at the slowest pace since November 2022, after spending on food and non-food items rose at a significantly slower pace.
On a monthly basis, Spain's retail sales rose 0.8%, reversing a 0.4% fall in the previous month.
In the first four months to April 2024, retail sales rose from a year ago by 0.9%.
Europe Indexes and Yields
The DAX index decreased by 0.6% to 18,571.37; the CAC-40 index fell by 0.9% to 7,985.61; and the FTSE 100 index decreased by 0.2% to 8,234.89.
The yield on 10-year German bonds edged up to 2.62%; French bonds inched higher to 3.11%; the UK gilts edged lower to 4.35%; and Italian bonds inched higher to 3.93%.
The euro edged higher to $1.084; the British pound inched higher to $1.274; and the U.S. dollar gained to 91.34 Swiss cents.
The euro approached a record high against the Japanese yen on the speculation that the European Central Bank is likely to take a slower approach to lowering its interest rate compared to the U.S. Federal Reserve.
The yen fell to this month's low of 170.44 and approached a record low of 171.56 against the euro.
Brent crude increased $0.17 to $84.75 a barrel, and the Dutch TTF natural gas fell by €0.21 to €33.31 per MWh.
Europe Stock Movers
International Distributions Services advanced 4% to 334.0 after the parent company of Royal Mail accepted a £3.57 billion takeover proposal from EP Group, controlled by Czech billionaire Daniel Kretinsky.
BHP Group gained 2.1% to 2,384.0 pence on a report that the mining company has requested Anglo American to extend the deadline for a final takeover proposal worth £39 billion.
Oil explorers and refiners extended gains for the second day in a row amid rising tensions in the Middle East, and traders hoped that the OPEC member nations would extend production cuts at the next meeting this Sunday.
BP plc gained 1.6% to 493.60 pence, Shell PLC jumped 1.7% to 2,827.0, and TotalEnergies SE gained 0.4% to €66.43.
The Rise In Global Bond Yields Weighs On Japanese Stocks and Yen
Akira Ito
29 May, 2024
Tokyo
Weak yen and global interest rate worries weighed on market sentiment in Tokyo ahead of the release of the inflation update.
The Nikkei and the Topix fell as much as 1%, and the yield on Japanese government bonds inched higher than 1% to a 12-year high after hawkish comments from non-voting members of the Federal Reserve's policymaker.
Market sentiment in Tokyo was also on the defensive after the U.S. Treasury yields unexpectedly rose following the weaker-than-expected auction of 2-year and 5-year Treasury notes.
The widening yield gap between the U.S. and Japan dragged the Japanese yen lower, and the currency traded at 157.86 against the U.S. dollar in late afternoon trading in Tokyo.
Investors are also looking ahead to the release of the Tokyo area's inflation data for April, and the city's inflation is generally seen as a bellwether of the nationwide price trends.
Japan Stock Movers
The Nikkei 225 stock average dropped 0.8% to 38,556.87, and the Topix index declined 1% to 2,741.62.
Stocks in Tokyo traded down on the ongoing monetary policy uncertainty and the weakness in the yen.
Mitsubishi UFJ rose 0.6% to ¥1,637.0 and traded at an 18-year high on the expectations of the company benefiting from the weaker yen and rising bond yields.
Last week, Mitsubishi UFJ reported a record profit of 1.5 trillion yen in the financial year 2024 and announced a stock repurchase program of 50 billion yen.
The company also announced the CET1 ratio, a measure of risk capital, to range between 9.5% and 10.5%, and a dividend payout ratio of around 40%.
Utilities and heavy industry-linked stocks were among the leading decliners.
Tokyo Electric Power dropped 8.3% to ¥926.30, Mitsubishi Heavy Industries declined 3.6% to ¥1,308.0, and Teijin Ltd. fell 5.5% to ¥1,519.0.
Diversified exporters and financial services were among the leading gainers.
Sompo Holding, the diversified insurance group, rose 4.2% to ¥3,306.0; Hoya Corp., the maker of optical products for the semiconductor industry, gained ¥18,635.0; and Konami Group, the video game publisher, gained 3.3% to ¥10,905.0.
China Indexes Extend Losses, Yuan Weakens to a 6-month Low
Li Chen
29 May, 2024
Hong Kong
Market indexes headed lower and extended recent losses as investors assessed the impact of policymakers' plans to revive property market transactions and stabilize economic growth.
Shenzhen and Guangzhou joined other top-tier cities to ease restrictions on home purchases, following efforts by the politburo and the People's Bank of China to encourage more activities in the sector.
Investors are increasingly worried that policymakers' focus on encouraging real estate purchases may fall flat amid a lack of consumer confidence, a lack of credibility among real estate developers, and elevated home prices.
Despite the added incentives to buy real estate, most families are parking their money in bank savings or purchasing precious metals, avoiding the purchase of new and unfinished houses.
Investors are also looking ahead to the release of purchasing managers' index data on Friday, and expectations are high that the manufacturing sector will remain in expansion.
China's top leadership has emphasized advanced manufacturing as one of the key drivers of economic growth, and exports of electric vehicles, renewable energy, and advanced electronics are expected to contribute to job market expansion.
The Chinese yuan drifted to a six-month low of 7.2658 against the U.S. dollar ahead of the release of the manufacturing sector update on Friday.
The People's Bank of China also set the exchange rate near the bottom of its trading range to facilitate exports and stem the growing tide of capital outflow.
Currency traders are bracing for more devaluation of the yuan amid persistent weakness in the Japanese yen, pressuring already narrow margins for exported goods.
China Stock Movers
The CSI 300 index increased 0.1% to 3,614.27, and the Hang Seng index dropped 1.8% to 18,491.92.
Property developers traded with a downward bias on the worry that the recent measures announced by the government are likely to fall short in reviving the fortunes of companies.
China Resources Land decreased 1.6% to HK$30.0, China Vanke declined 3% to $5.70, and Longfor Group fell 1% to HK$13.24.
Property developer stocks have rebounded about 30% in the last three weeks of trading, but stocks in the sector are still down more than 70% from the peak in April 2021.
Lenovo Group declined 1.9% to HK$11.60 after the personal computer maker signed a deal with Saudi Arabia's sovereign wealth fund to sell $2 billion of convertible bonds.
Stock declined on the worry that a higher share count would dilute earnings per share.
BYD soared 5.3% to HK$217.60 after the electric vehicle maker announced an upgrade that could extend the driving range of its hybrid electric vehicle.
India Movers: Amara Raja Energy, Aditya Birla Fashion, GNFC, Hindalco Industries, IRCTC, NBCC
Arun Goswami
29 May, 2024
Mumbai
Stocks in Mumbai headed lower and market indexes declined as the Lok Sabha election results date approached next week.
Market sentiment was also on the defensive amid rising tensions in the Middle East and in the Taiwan Strait.
The Sensex index decreased by 0.5% to 74,766.10, and the Nifty index fell by 0.5% to 22,764.60.
On the Mumbai stock exchange, 74 stocks traded at their 52-week highs, and 32 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds inched higher to 7.01%, and the Indian rupee edged lower at ₹83.25 against the U.S. dollar.
Gujarat Narmada Valley Fertilizers and Chemicals dropped 1.9% to ₹658.0 after the company reported a decline in revenue and earnings in the March quarter.
Consolidated revenue declined 7.1% to ₹2,110 crore from ₹2,271 crore, and net income plunged 61.3% to ₹130 crore from ₹663 crore a year ago, respectively.
Amara Raja Energy decreased 0.4% to ₹1,242.45 despite the battery maker reporting higher revenue and earnings in the March quarter.
Revenue increased 19.5% to ₹2,908 crore from ₹2,433.2 crore, and net income soared 61.4% to ₹229.8 crore from ₹142 crore a year ago, respectively.
Aditya Birla Fashion & Retail eased 1.4% to ₹282.0 after the apparel retail company reported a wider loss in the March quarter.
Consolidated revenue in the quarter rose 18.3% to ₹3,407 crore from ₹2,880 crore, and net loss widened to ₹266 crore from ₹195 crore a year ago, respectively.
IRCTC decreased 4.3% to ₹1,034.95 after the food services provider reported weaker-than-expected earnings growth in the March quarter.
Revenue advanced 19.7% to ₹1,154.8 crore from ₹965 crore, and net income inched up 1.9% to ₹284.2 crore from ₹278.8 crore a year ago, respectively.
Hindalco Industries inched up 0.6% to ₹686.40 after the company's subsidiary is set to list its share on the New York Stock Exchange.
Novelis is planning to raise as much as $945 million through the sale of 45 million shares at prices between $18 and $21 a share, according to a filing with the U.S. securities regulator.
NBCC rose 2.4% to ₹142.05 after the construction company reported a rise in revenue and earnings in the March quarter.
Revenue soared 43.1% to ₹4,025 crore from ₹2,813 crore, and net income advanced 24.5% to ₹141 crore from ₹114 crore, a year ago, respectively.
Momentum In Nvidia Powers Nasdaq's Rise Above 17,000
Alexander Garcia
28 May, 2024
Miami
Stocks on Wall Street inched higher as investors looked ahead to the release of inflation data later in the week.
Market sentiment was subdued after Minneapolis Fed President Neal Kashkari said that policymakers will like to see sustained slowdown in inflation for several months before interest rates could be lowered.
Market sentiment was subdued after Minneapolis Fed President Neal Kashkari said that policymakers would like to see a sustained slowdown in inflation for several months before interest rates could be lowered.
Kashkari's comments echo comments from other participants in the rate-setting committee and minutes from the latest policy meeting.
“Many more months of positive inflation data, I think, to give me confidence that it’s appropriate to dial back,” Kashkari said in an interview with the CNBC.
Kashkari is not a voting member of the rate-setting committee in 2024, but he does participate in the policy decision.
Kashkari said that the Federal Reserve could potentially hike interest rates if inflation fails to weaken further in the coming months.
Tech stocks advanced after investors returned from a 3-day weekend amid ongoing interest rate jitters and worries of a consumer pullback.
The Nasdaq Composite advanced by 0.7%, and traded above 17,000 for the first time after Nvidia surged 5.5%.
This month, the S&P 500 index has advanced more than 5% and the Nasdaq Composite has gained about 8%, and the two popular market indexes are set to extend gains in this holiday-shortened week of trading.
Investors are looking forward to the release of the persona income and outlay report, which includes the persona consumption expenditure index, on Friday.
The PCE index, the preferred measure of inflation by Federal Reserve policymakers, is likely to provide fresh insights into the inflationary forces and how consumers are adjusting to the sustained increase in prices of food, fuel, and shelter.
U.S. Indexes and Treasury Yields
The S&P 500 index rose 0.1% to 5,308.81, and the Nasdaq Composite jumped 0.5% to 17,006.51.
The yield on 2-year Treasury notes edged lower to 4.93%, 10-year Treasury notes decreased to 4.46%, and 30-year Treasury bonds edged lower to 4.55%.
WTI crude oil increased $1.07 to $79.68 a barrel, and natural gas prices advanced 2 cents to $2.53 a thermal unit.
Gold increased by $8.61 to $2,361.14 an ounce, and silver rose 7 cents to $31.53.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 104.36.
U.S. Stock Movers
GameStop jumped 21% to $23.30 after the specialty retailer said it raised $933.4 million through the sale of 45 million in a secondary offering.
United States Cellular Corp. jumped 10.3% to $47.50 after the wireless services provider agreed to be acquired by T-Mobile.
Deutsche Telekom-controlled T-Mobile agreed to pay $4.4 billion for the wireless operation of U.S. Cellular and 30% of its wireless spectrum assets.
The deal is expected to be completed in the second quarter of 2025, and T-Mobile will also enter into a new licensing agreement on more than 2,000 towers.
European Indexes Struggled to Advance
European market indexes struggled to rise above the flatline as investors awaited the release of inflation surveys in the eurozone and in the U.S.
Benchmark indexes in Frankfurt, Paris, and London as investors reviewed the latest economic updates.
The Euro Area consumer expectations' for the next 12 months eased to 2.9% in April from 3.0% in March, according to the survey from the European Central Bank released on Tuesday.
Inflation expectations fell to their lowest level since September 2021.
The U.K. shop price inflation slowed to an annual increase of 0.6% in May after an increase of 0.8% in April, the British Retail Consortium and the market research company NielsenIQ reported Tuesday.
The shop price inflation rose at the slowest pace since November 2021.
Germany's Wholesale Price Decline slowed In April
Germany's wholesale prices declined and slowed in April, according to the Federal Statistical Office, or Destastis.
The wholesale price index decline slowed to an annual pace of 1.8% in April, after falling 2.7% in March and 2.6% in February.
The latest wholesale price index is based on a new series that reflects the revised base rate for 2021 from 2015 and changes in baskets of goods and weights for individual items.
On a monthly basis, wholesale prices rose 0.4% in April from the previous month.
The main reason for the overall decline in wholesale prices was the drop in prices in the wholesale trade in chemical products (17.9%), grain, raw tobacco, seeds, and animal feed (12.2%), ores, metals, and semi-finished metal products (7.2%), scrap and residues (6.8%), and milk, milk products, eggs, edible oils, and food fats (6.3%).
Meanwhile, wholesale prices for coffee, tea, cocoa, and spices rose (9.3%), sugar, confectionery, and baked goods (7.2%), and tobacco products (5.0%).
Europe Indexes and Yields
The DAX index decreased by 0.6% to 18,664.33; the CAC-40 index fell by 1.0% to 8,046.34; and the FTSE 100 index decreased by 0.8% to 8,253.64.
The yield on 10-year German bonds edged down to 2.56%; French bonds inched higher to 3.05%; the UK gilts edged lower to 4.23%; and Italian bonds inched higher to 3.87%.
The euro edged higher to $1.087; the British pound inched higher to $1.277; and the U.S. dollar gained to 91.06 Swiss cents.
Brent crude increased $1.20 to $84.05 a barrel, and the Dutch TTF natural gas fell by €1.42 to €33.51 per MWh.
Europe Stock Movers
Rheinmetall AG increased 0.3% to €533.80 after the German automotive and arms company won an order from a European government for the supply of 35 mm AHEAD ammunition for the Skynex air defense system.
Cadeler AS decreased 1.7% to €5.80 after the offshore wind turbine installation vessel reported a loss in the first quarter.
Revenue in the first quarter was €19 million, matching the level in the period a year ago, and operating income swung to a loss of €10 million compared to a gain of €8 million a year ago.
The company reiterated its 2024 revenue to range between €225 million and €245 million and its operating income between €105 million and €125 million.
The company's order book swelled to €1.8 billion.
In addition, the company completed a successful private placement on February 15 and sold 39.5 million shares at a price of NOK 44.50 per share, raising €155 million before transaction costs.
Softcat PLC declined 0.9% to 1,700.0 pence despite the IT infrastructure company reiterating its full-year outlook.
ThyssenKrupp AG rose 1.9% to €4.82 after the company's material services unit's chairman, Martin Stillger, decided to resign effective May 31.
Intermediate Capital Group rose 2.7% to 2,382.0 pence after the private equity group reported record management fees and assets under management.
Management fees in the financial year increased 5% to £505 million, and fund management profit before tax soared 21% to £375 million.
Total fee earnings and assets under management rose 11% to £70 billion at the end of the financial year 2024.
The company declared a total ordinary dividend of 79 pence per share, increasing its annual dividend for the 14th year in a row.
Japan Stocks Lack Direction Amid Rate Path and Yen Uncertainties
Stocks in Tokyo traded sideways amid ongoing interest rate jitters and uncertainty surrounding the Bank of Japan's policy response.
The Nikkei 225 and the Topix index edged lower in a choppy trading session as investors parsed comments from Bank of Japan Deputy Governor Shinichi Uchida.
On Monday, Deputy Governor Uchida suggested that Japan's persistent battle against deflation is nearing an end amid sustained price increases driven by the increase in energy prices and that estimated wages are likely to keep rising in the near future.
Moreover, investors also reviewed the latest comments from the European Central Bank's policymakers, suggesting that the first interest rate cut may be announced as early as next week after the next policy meeting.
The Japanese yen traded at 156.87 against the U.S. dollar in late afternoon trading in Tokyo as currency traders bet that the Bank of Japan will keep its accommodative stance intact amid the large rate gap between the U.S. and Japan.
Japan Stock Movers
The Nikkei 2225 Stock Average declined 0.1% to 38,864.32, and the Topix index advanced 0.1% to 2,768.73.
Technology stocks traded mixed, and Tokyo Electron, Advantest, and Screen Holdings declined, but Socionext and Renesas Electronics fell as much as 1.0%.
Financial stocks also traded mixed for the second session in a row, with Sumitomo Mitsui Financial and Mitsubishi Financial advancing 1% and Mizuho Financial falling about 0.8%.
Power generators and distributors led the gainers in Tokyo trading.
Toray Industries, Furukawa Electric, and Kansai Electric Power advanced between 3% and 7%.
Shanghai Announces Measures to Support Property Market Amid Weak Demand and High Prices
Benchmark indexes in Shanghai and Hong Kong attempted to trade higher after the Shanghai government announced measures to support local property market transactions.
Shanghai authorities announced several measures to revive property market transactions and became the first tier-1 city as the central government offers financial incentives for regional governments as a part of a national plan.
Shanghai lowered down-payment requirements and mortgage interest rates for first-time home buyers, permitted families with more than one child to purchase additional houses, and eased property purchase restrictions for out-of-city residents.
The moves are designed to encourage buyers to acquire additional properties and increase liquidity for property developers.
However, these measures are likely to fall short as buyers struggle with affordability issues amid sky-high house prices and job market uncertainty.
The CSI 300 index and the Hang Seng index jumped nearly 1% in early trading but lost momentum in afternoon trading.
China Stock Movers
The CSI 300 index decreased 0.4% to 3,620.25, and the Hang Seng index edged up 0.04% to 18,829.03.
China Vanke declined 1.3% to HK$6.03 after the state-controlled residential property developer agreed to sell an unfinished project for 2.24 billion yuan, or $309 million, and the company is likely to take a loss of 1.8 billion yuan.
China Vanke sold the plot of land to its largest shareholder, Shenzhen Metro, and Baishuo Investment, and the land was acquired in December 2017 with the plan to build the company's headquarters for 3.1 billion yuan.
Longfor Group decreased 1% to HK$13.48, and China Resources Land was nearly unchanged at HK$30.55.
Semiconductor stocks traded higher after Beijing announced the setting up of a $47.5 billion investment plan to achieve self-sufficiency in advanced semiconductor production.
SMIC gained 0.5% to HK$16.36, and Hua Hon Semiconductors jumped 0.4% to HK$19.86.
Alibaba Health Information Technology soared 10.4% to HK$3.40 after the company reported annual income rose 65% from a year ago in its latest financial year ending in March.
U.S. Movers: GameStop, U.S. Cellular, T-Mobile U.S., Texas Instruments
Scott Peters
28 May, 2024
New York City
GameStop jumped 21% to $23.30 after the specialty retailer said it raised $933.4 million through the sale of 45 million in a secondary offering.
United States Cellular Corp. jumped 10.3% to $47.50 after the wireless services provider agreed to be acquired by T-Mobile.
Deutsche Telekom-controlled T-Mobile agreed to pay $4.4 billion for the wireless operation of U.S. Cellular and 30% of its wireless spectrum assets.
The deal is expected to be completed in the second quarter of 2025, and T-Mobile will also enter into a new licensing agreement on more than 2,000 towers.
Texas Instruments increased 0.4% to $199.97 after activist investor Elliott Management acquired a $2,5 billion stake in the semiconductor company.
The activist investor said in a letter to the company that it should improve its cash flow to $9 a share by 2026 and urged the company to take a more flexible approach to its capital expenditure plan.
The news was first reported by CNBC, and ticker.com has viewed the electronic copy of the 13-page letter signed by several members of Elliott Management.
U.S. Stocks Opened Mixed After Another Round of Hawkish Messages from Fed policymakers
Barry Adams
28 May, 2024
New York City
Stocks in early trading on Wall Street inched higher as investors looked ahead to the release of inflation data later in the week.
Market sentiment was subdued after Minneapolis Fed President Neal Kashkari said that policymakers will like to see sustained slowdown in inflation for several months before interest rates could be lowered.
Market sentiment was subdued after Minneapolis Fed President Neal Kashkari said that policymakers would like to see a sustained slowdown in inflation for several months before interest rates could be lowered.
Kashkari's comments echo comments from other participants in the rate-setting committee and minutes from the latest policy meeting.
“Many more months of positive inflation data, I think, to give me confidence that it’s appropriate to dial back,” Kashkari said in an interview with the CNBC.
Kashkari is not a voting member of the rate-setting committee in 2024, but he does participate in the policy decision.
Kashkari said that the Federal Reserve could potentially hike interest rates if inflation fails to weaken further in the coming months.
Tech stocks advanced after investors returned from a 3-day weekend amid ongoing interest rate jitters and worries of a consumer pullback.
The S&P 500 index inched higher by 0.1% and the Nasdaq Composite advanced by 0.2%.
This month, the S&P 500 index has advanced more than 5% and the Nasdaq Composite has gained about 8%, and the two popular market indexes are set to extend gains in this holiday-shortened week of trading.
Investors are looking forward to the release of the persona income and outlay report, which includes the persona consumption expenditure index, on Friday.
The PCE index, the preferred measure of inflation by Federal Reserve policymakers, is likely to provide fresh insights into the inflationary forces and how consumers are adjusting to the sustained increase in prices of food, fuel, and shelter.
U.S. Indexes and Treasury Yields
The S&P 500 index rose 0.1% to 5,322.24, and the Nasdaq Composite jumped 0.2% to 16,952.80.
The yield on 2-year Treasury notes edged lower to 4.93%, 10-year Treasury notes decreased to 4.46%, and 30-year Treasury bonds edged lower to 4.55%.
WTI crude oil increased $0.57 to $79.77 a barrel, and natural gas prices advanced 2 cents to $2.53 a thermal unit.
Gold increased by $1.53 to $2,353.84 an ounce, and silver rose 7 cents to $31.53.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 104.36.
U.S. Stock Movers
GameStop jumped 21% to $23.30 after the specialty retailer said it raised $933.4 million through the sale of 45 million in a secondary offering.
United States Cellular Corp. jumped 10.3% to $47.50 after the wireless services provider agreed to be acquired by T-Mobile.
Deutsche Telekom-controlled T-Mobile agreed to pay $4.4 billion for the wireless operation of U.S. Cellular and 30% of its wireless spectrum assets.
The deal is expected to be completed in the second quarter of 2025, and T-Mobile will also enter into a new licensing agreement on more than 2,000 towers.
Europe Movers: Cadeler, Intermediate Capital Group, Rheinmetall, SoftCat, ThyssenKrupp
Inga Muller
28 May, 2024
Frankfurt
European indexes struggled to advance ahead of inflation reports. Germany's wholesale price index declined at the slowest pace in nearly 30 months.
The DAX index increased by 0.1% to 18,800.32; the CAC-40 index fell by 0.4% to 8,099.12; and the FTSE 100 index decreased by 0.4% to 8,289.11.
The yield on 10-year German bonds edged down to 2.56%; French bonds inched higher to 3.05%; the UK gilts edged lower to 4.23%; and Italian bonds inched higher to 3.87%.
Rheinmetall AG increased 0.3% to €533.80 after the German automotive and arms company won an order from a European government for the supply of 35 mm AHEAD ammunition for the Skynex air defense system.
Cadeler AS decreased 1.7% to €5.80 after the offshore wind turbine installation vessel reported a loss in the first quarter.
Revenue in the first quarter was €19 million, matching the level in the period a year ago, and operating income swung to a loss of €10 million compared to a gain of €8 million a year ago.
The company reiterated its 2024 revenue to range between €225 million and €245 million and its operating income between €105 million and €125 million.
The company's order book swelled to €1.8 billion.
In addition, the company completed a successful private placement on February 15 and sold 39.5 million shares at a price of NOK 44.50 per share, raising €155 million before transaction costs.
Softcat PLC declined 0.9% to 1,700.0 pence despite the IT infrastructure company reiterating its full-year outlook.
ThyssenKrupp AG rose 1.9% to €4.82 after the company's material services unit's chairman, Martin Stillger, decided to resign effective May 31.
Intermediate Capital Group rose 2.7% to 2,382.0 pence after the private equity group reported record management fees and assets under management.
Management fees in the financial year increased 5% to £505 million, and fund management profit before tax soared 21% to £375 million.
Total fee earnings and assets under management rose 11% to £70 billion at the end of the financial year 2024.
The company declared a total ordinary dividend of 79 pence per share, increasing its annual dividend for the 14th year in a row.
European Indexes Struggled to Advance, Germany's Wholesale Price Decline Slowed In April
Bridgette Randall
28 May, 2024
Frankfurt
European market indexes struggled to rise above the flatline as investors awaited the release of inflation surveys in the eurozone and in the U.S.
Benchmark indexes in Frankfurt, Paris, and London as investors reviewed the latest economic updates.
The Euro Area consumer expectations' for the next 12 months eased to 2.9% in April from 3.0% in March, according to the survey from the European Central Bank released on Tuesday.
Inflation expectations fell to their lowest level since September 2021.
The U.K. shop price inflation slowed to an annual increase of 0.6% in May after an increase of 0.8% in April, the British Retail Consortium and the market research company NielsenIQ reported Tuesday.
The shop price inflation rose at the slowest pace since November 2021.
Germany's Wholesale Price Decline slowed In April
Germany's wholesale prices declined and slowed in April, according to the Federal Statistical Office, or Destastis.
The wholesale price index decline slowed to an annual pace of 1.8% in April, after falling 2.7% in March and 2.6% in February.
The latest wholesale price index is based on a new series that reflects the revised base rate for 2021 from 2015 and changes in baskets of goods and weights for individual items.
On a monthly basis, wholesale prices rose 0.4% in April from the previous month.
The main reason for the overall decline in wholesale prices was the drop in prices in the wholesale trade in chemical products (17.9%), grain, raw tobacco, seeds, and animal feed (12.2%), ores, metals, and semi-finished metal products (7.2%), scrap and residues (6.8%), and milk, milk products, eggs, edible oils, and food fats (6.3%).
Meanwhile, wholesale prices for coffee, tea, cocoa, and spices rose (9.3%), sugar, confectionery, and baked goods (7.2%), and tobacco products (5.0%).
Europe Indexes and Yields
The DAX index increased by 0.1% to 18,800.32; the CAC-40 index fell by 0.4% to 8,099.12; and the FTSE 100 index decreased by 0.4% to 8,289.11.
The yield on 10-year German bonds edged down to 2.56%; French bonds inched higher to 3.05%; the UK gilts edged lower to 4.23%; and Italian bonds inched higher to 3.87%.
The euro edged higher to $1.087; the British pound inched higher to $1.277; and the U.S. dollar gained to 91.06 Swiss cents.
Brent crude increased $0.47 to $83.35 a barrel, and the Dutch TTF natural gas rose by €0.42 to €34.50 per MWh.
Europe Stock Movers
Rheinmetall AG increased 0.3% to €533.80 after the German automotive and arms company won an order from a European government for the supply of 35 mm AHEAD ammunition for the Skynex air defense system.
Cadeler AS decreased 1.7% to €5.80 after the offshore wind turbine installation vessel reported a loss in the first quarter.
Revenue in the first quarter was €19 million, matching the level in the period a year ago, and operating income swung to a loss of €10 million compared to a gain of €8 million a year ago.
The company reiterated its 2024 revenue to range between €225 million and €245 million and its operating income between €105 million and €125 million.
The company's order book swelled to €1.8 billion.
In addition, the company completed a successful private placement on February 15 and sold 39.5 million shares at a price of NOK 44.50 per share, raising €155 million before transaction costs.
Softcat PLC declined 0.9% to 1,700.0 pence despite the IT infrastructure company reiterating its full-year outlook.
ThyssenKrupp AG rose 1.9% to €4.82 after the company's material services unit's chairman, Martin Stillger, decided to resign effective May 31.
Intermediate Capital Group rose 2.7% to 2,382.0 pence after the private equity group reported record management fees and assets under management.
Management fees in the financial year increased 5% to £505 million, and fund management profit before tax soared 21% to £375 million.
Total fee earnings and assets under management rose 11% to £70 billion at the end of the financial year 2024.
The company declared a total ordinary dividend of 79 pence per share, increasing its annual dividend for the 14th year in a row.
Japan Stocks Lack Direction Amid Rate Path and Yen Uncertainties
Akira Ito
28 May, 2024
Tokyo
Stocks in Tokyo traded sideways amid ongoing interest rate jitters and uncertainty surrounding the Bank of Japan's policy response.
The Nikkei 225 and the Topix index edged lower in a choppy trading session as investors parsed comments from Bank of Japan Deputy Governor Shinichi Uchida.
On Monday, Deputy Governor Uchida suggested that Japan's persistent battle against deflation is nearing an end amid sustained price increases driven by the increase in energy prices and that estimated wages are likely to keep rising in the near future.
Moreover, investors also reviewed the latest comments from the European Central Bank's policymakers, suggesting that the first interest rate cut may be announced as early as next week after the next policy meeting.
The Japanese yen traded at 156.87 against the U.S. dollar in late afternoon trading in Tokyo as currency traders bet that the Bank of Japan will keep its accommodative stance intact amid the large rate gap between the U.S. and Japan.
Japan Stock Movers
The Nikkei 2225 Stock Average declined 0.1% to 38,864.32, and the Topix index advanced 0.1% to 2,768.73.
Technology stocks traded mixed, and Tokyo Electron, Advantest, and Screen Holdings declined, but Socionext and Renesas Electronics fell as much as 1.0%.
Financial stocks also traded mixed for the second session in a row, with Sumitomo Mitsui Financial and Mitsubishi Financial advancing 1% and Mizuho Financial falling about 0.8%.
Power generators and distributors led the gainers in Tokyo trading.
Toray Industries, Furukawa Electric, and Kansai Electric Power advanced between 3% and 7%.
Shanghai Announces Measures to Support Property Market Transactions Amid Weak Demand and High Prices
Li Chen
28 May, 2024
Hong Kong
Benchmark indexes in Shanghai and Hong Kong attempted to trade higher after the Shanghai government announced measures to support local property market transactions.
Shanghai authorities announced several measures to revive property market transactions and became the first tier-1 city as the central government offers financial incentives for regional governments as a part of a national plan.
Shanghai lowered down-payment requirements and mortgage interest rates for first-time home buyers, permitted families with more than one child to purchase additional houses, and eased property purchase restrictions for out-of-city residents.
The moves are designed to encourage buyers to acquire additional properties and increase liquidity for property developers.
However, these measures are likely to fall short as buyers struggle with affordability issues amid sky-high house prices and job market uncertainty.
The CSI 300 index and the Hang Seng index jumped nearly 1% in early trading but lost momentum in afternoon trading.
China Stock Movers
The CSI 300 index decreased 0.4% to 3,620.25, and the Hang Seng index edged up 0.04% to 18,829.03.
China Vanke declined 1.3% to HK$6.03 after the state-controlled residential property developer agreed to sell an unfinished project for 2.24 billion yuan, or $309 million, and the company is likely to take a loss of 1.8 billion yuan.
China Vanke sold the plot of land to its largest shareholder, Shenzhen Metro, and Baishuo Investment, and the land was acquired in December 2017 with the plan to build the company's headquarters for 3.1 billion yuan.
Longfor Group decreased 1% to HK$13.48, and China Resources Land was nearly unchanged at HK$30.55.
Semiconductor stocks traded higher after Beijing announced the setting up of a $47.5 billion investment plan to achieve self-sufficiency in advanced semiconductor production.
SMIC gained 0.5% to HK$16.36, and Hua Hon Semiconductors jumped 0.4% to HK$19.86.
Alibaba Health Information Technology soared 10.4% to HK$3.40 after the company reported annual income rose 65% from a year ago in its latest financial year ending in March.
India Movers: Elgi, GMDC, LIC Lumax Auto Technologies, Natco, National Aluminium
Arun Goswami
28 May, 2024
Mumbai
Stocks in Mumbai advanced as investors reacted to the latest batch of mixed earnings. The rupee held firm, and the yield on the Indian government bond edged lower.
The Sensex index decreased by 0.1% to 75,368.18, and the Nifty index fell by 0.1% to 22,946.05.
On the Mumbai stock exchange, 140 stocks traded at their 52-week highs, and 27 stocks traded at their 52-week lows.
Life Insurance Corporation gained 0.8% to ₹1,037.65 after the largest insurance company reported a rise in revenue and earnings in the March quarter.
Standalone net premium increased 15.6% to ₹1.52 lakh crore from ₹1.32 lakh crore, and net income advanced 2.5% to ₹13,763 crore from ₹13,428 crore a year ago, respectively.
The company's board proposed a final dividend of ₹6 per share.
Lumax Auto Technologies gained 4% to ₹491.50 despite the auto component maker reporting a sharp decline in revenue and earnings in the March quarter.
Revenue declined 25.5% to ₹971 crore from ₹1,303 crore, and net income plunged 29.9% to ₹66 crore from ₹94 crore a year ago, respectively.
The company's board proposed a ₹75 per share final dividend.
Natco Pharma jumped 6.8% to ₹1,100.0 after the generic pharmaceutical products maker reported a surge in revenue and earnings in the March quarter.
Consolidated revenue advanced 19% to ₹1,068 crore from ₹898 crore, and net income soared 40.1% to ₹386 crore from ₹276 crore a year ago, respectively.
National Aluminium Company rose 4.2% to ₹204.50 despite the company reporting a decline in revenue in its March quarter.
Revenue decreased 2.5% to ₹3,579 crore from ₹3,671 crore, and net income soared to ₹997 crore from ₹495 crore a year ago, respectively.
Gujarat Mineral Development Corp. decreased 2.1% to ₹394.45 after the resource company reported a decline in revenue and profit in the March quarter.
Revenue fell 20.8% to ₹751 crore from ₹948 crore, and net profit fell 53.2% to ₹207 crore from ₹442 crore a year ago, respectively.
Elgi Equipments Ltd. dropped 5.2% to ₹616.45 after the compressor and heating systems maker reported a sharp decline in profit in the March quarter.
Revenue increased 3.6% to 866 crore from 836 crore, and net income plunged 55.2% to 76 crore from 170 crore a year ago, respectively.
The company declared a final dividend of 2 per share payable on or before August 29 to shareholders on record on July 24.
European Investors Look Ahead to Inflation Data, Alstom Launches Rights Issue
Bridgette Randall
27 May, 2024
Frankfurt
In thin trading, stocks edged slightly higher in Europe, and investors awaited the release of economic data later in the week.
Investors are looking forward to the release of consumer price inflation reports in the eurozone. Annual inflation is expected to rise to 2.5% in May, and core inflation is estimated to hold steady at 2.7%.
Investors are looking forward to the release of France’s jobless data and Switzerland’s foreign trade balances later in the week.
Benchmark indexes in Paris and London inched higher, and markets in the U.S. and the U.K. are closed for public holidays.
Eurozone inflation data later in the week could provide more insight into the inflation forces. Inflation has dropped over the last 12 months, but prices are still rising faster than the 2% target rate set by the European Central Bank, despite multiple rate hikes.
The German business climate index was unchanged in May, according to the report released by the Ifo Institute on Monday.
The business climate index was unchanged at 89.3 in May compared to a downwardly revised level in April.
Europe Indexes and Yields
The DAX index increased by 0.3% to 18,705.11; the CAC-40 index rose by 0.1% to 8,104.94; and the UK financial markets are closed for a holiday.
The yield on 10-year German bonds edged down to 2.56%; French bonds inched higher to 3.04%; the UK gilts edged higher to 4.26%; and Italian bonds inched lower to 3.86%.
The euro edged higher to $1.085; the British pound inched higher to $1.276; and the U.S. dollar gained to 91.39 Swiss cents.
Brent crude increased $0.57 to $82.68 a barrel, and the Dutch TTF natural gas rose by €0.78 to €34.74 per MWh.
Europe Stock Movers
Alstom SA rose 4.4% to €19.52 after the French transportation company launched a preferential rights issue of €1 billion, taking the final step of completing its plan to lower its debt by €2 billion.
EFG International soared 2.6% to CHF 12.56 on speculation that the Swiss rival Julius Baer Group Ltd. is looking to acquire the company.
PF Bakkafrost declined 1.9% to NOK 591.0 after the Norwegian salmon farming company confirmed that infectious salmon anaemia had been found at two Bakkafrost pens at a site in the Faroe Islands.
SBB gained 2% to SEK4.61 after the Swedish bank struck a joint venture with the U.S.-based Castlelake.
Castlelake agreed to provide a loan of €464 million, or SEK 5.2 billion, to the joint venture SBB Infrastructure AB to acquire properties from SBB and refinance debt.
The joint venture agreed to provide collateral totaling SEK 9.4 billion for properties in Sweden and Finland.
JGB Yield Hold Above 1% and the Yen Retains Downward Pressure
Akira Ito
27 May, 2024
Tokyo
Benchmark indexes in Tokyo advanced and pared losses in the previous session as investors reacted to the latest comments from Bank of Japan Governor Kazuo Ueda.
The Nikkei 225 and the Topix indexes advanced after Governor Ueda said investors should exercise caution in estimating higher interest rates because it is "challenging" to accurately predict neutral interest rates in Japan.
His comments were directed at curbing the recent enthusiasm about possible rate increases later in the year and arresting the decline in the Japanese yen.
The yen edged slightly higher to 156.80 against the U.S. dollar in late afternoon trading in Tokyo.
The yield on a 10-year Japanese government bond inched higher to 1.02%, a twelve-year high, after investors reacted to comments from BOJ Governor Ueda.
Investors are looking ahead to the release of retail sales, industrial production, the unemployment rate, and housing starts data later in the week.
In stock trading, tech stocks and shipping companies led the gainers, but financial services, automakers, and industrial companies traded mixed.
Japan Stock Movers
The Nikkei 225 Stock Average rose 0.5% to 38,837.44, and the Topix index advanced 0.7% to 2,760.35.
Renesas Electronics, Socionext, Disco Corp., Tokyo Electron, and Advantest gained between 1% and 3%.
Shipping lines were among the leading gainers in Tokyo trading.
Nippon Yusen advanced 3.2% to ¥5,059.0, Mitsui OSK added 2.1% to ¥5,184.0, and Kawasaki Kisen added 4% to ¥2,418.0.
Toyota Motor advanced 1.7% to ¥3,450.0, Honda Motor gained 0.6% to ¥1,745.0, Nissan Motor increased 1.2% to ¥559.20, and Mitsubishi Motor added 1% to ¥430.0.
Nexon dropped 3.5% to ¥2,466.0, CyberAgent dropped 4.2% to ¥965.80, and Hoya Corp. decreased 1.4% to ¥18,225.0.