Market Update
Europe Movers: AstraZeneca, Atos, Banco Bilbao, Deutsche Bank, Vivendi
Inga Muller
29 Apr, 2024
Frankfurt
European stock market indexes struggled in Monday's trading, and bond yields edged lower amid the ongoing rate path debate.
The DAX index decreased by 0.05% to 18,152.12; the CAC-40 index rose by 0.1% to 8,093.87; and the FTSE 100 index inched higher by 0.5% to a new intraday record high of 8,179.73.
The yield on 10-year German bonds edged down to 2.52%; French bonds inched lower to 3.02%; the UK gilts edged lower to 4.30%; and Italian bonds inched lower to 3.83%.
Banco Bilbao decreased 2.2% to €10.73, despite the Spain-based international bank reporting better-than-expected first quarter profit and lifting its profit outlook in 2024.
Deutsche Bank dropped 6.5% to €15.46 after Germany's largest bank confirmed its ongoing litigation related to the acquisition of Post Bank is likely to impact its second quarter and full-year profits.
The company said litigation costs could rise to as much as €1.3 billion and added that it strongly disagrees that the bank underpaid for Postbank.
AstraZeneca increased 1.6% to 12,178.0 pence after the pharmaceutical company announced significant progress with two breast cancer drug treatments.
Vivendi SE decreased 0.4% to €9.81 after the French media holding company said revenue in the first quarter rose, driven by increases in Canal+ Group and Havas and the integration of publishing group Lagardere.
Atos SE soared 18.5% to €2.26 after the company confirmed that French government is looking to acquire key divisions of the company that are deemed strategically important to France.
The non-binding offer of €1 billion from France covers three key divisions: advanced computing, missing-critical systems, and cyber security products.
The finance ministry moved to prevent the company from falling into the hands of foreign private equity groups.
Eurozone Economic Sentiment Weakens, Spain's Consumer Inflation Reaches 3-month High
Bridgette Randall
29 Apr, 2024
Frankfurt
European markets traded mixed, and bond yields edged lower in Monday's trading.
Benchmark indexes in London and Paris edged higher, but the reference index in Frankfurt lacked direction.
Popular indexes staged a strong rally in Frankfurt and London last week and halted a three-week slide as investors reacted to corporate quarterly results and overlooked the ongoing interest rate debate.
Mining and metals stocks also rebounded after BHP Group made an unsolicited £31 billion takeover offer for Anglo American.
Anglo American rejected the offer citing that the BHP's offer significantly undervalues the company and its future prospects.
Euro Area Economic Sentiment Weakens
The European Sentiment Indicator in the eurozone decreased by 0.6 to 95.6 in April, the European Commission reported Monday.
Persistent inflation and elevated interest rates have kept consumers spending on basic items, and businesses are facing macroeconomic headwinds.
Business sentiment weakened among manufacturers, builders, retailers, and service providers.
Among the four largest economies in the region, the sentiment index declined sharply in France and moderately in Italy, but improved in Spain and Germany.
Spain's Consumer Price Inflation Accelerated In April
On the economic front, Spain's consumer price inflation inched up to a three-month high to 3.3% in April from 3.2% in March, the National Statistics Institute (INE) reported Monday.
The rise in energy and food prices drove overall inflation higher in the month.
European Union-harmonized annual inflation rose to 3.4% in April from 3.3% in March.
The consumer price index on a monthly basis increased by 0.7% in April, following a 0.8% rise in March, and the EU harmonized inflation index rose by 0.6% in April from 1.4% in the previous month.
Europe Indexes and Yields
The DAX index decreased by 0.05% to 18,152.12; the CAC-40 index rose by 0.1% to 8,093.87; and the FTSE 100 index inched higher by 0.5% to a new intraday record high of 8,179.73.
The yield on 10-year German bonds edged down to 2.52%; French bonds inched lower to 3.02%; the UK gilts edged lower to 4.30%; and Italian bonds inched lower to 3.83%.
The euro edged higher to $1.071; the British pound inched higher to $1.253; and the U.S. dollar edged higher to 91.15 Swiss cents.
Brent crude decreased $0.35 to $89.99 a barrel, and the Dutch TTF natural gas fell by €1.28 to €28.10 per MWh.
Europe Stock Movers
Banco Bilbao decreased 2.2% to €10.73, despite the Spain-based international bank reporting better-than-expected first quarter profit and lifting its profit outlook in 2024.
Deutsche Bank dropped 6.5% to €15.46 after Germany's largest bank confirmed its ongoing litigation related to the acquisition of Post Bank is likely to impact its second quarter and full-year profits.
The company said litigation costs could rise to as much as €1.3 billion and added that it strongly disagrees that the bank underpaid for Postbank.
AstraZeneca increased 1.6% to 12,178.0 pence after the pharmaceutical company announced significant progress with two breast cancer drug treatments.
Vivendi SE decreased 0.4% to €9.81 after the French media holding company said revenue in the first quarter rose, driven by increases in Canal+ Group and Havas and the integration of publishing group Lagardere.
Atos SE soared 18.5% to €2.26 after the company confirmed that French government is looking to acquire key divisions of the company that are deemed strategically important to France.
The non-binding offer of €1 billion from France covers three key divisions: advanced computing, missing-critical systems, and cyber security products.
The finance ministry moved to prevent the company from falling into the hands of foreign private equity groups.
Hong Kong Index Extends Two-month Rebound to 20% After Insurer AIA Group Expanded Stock Buyback Plan
Li Chen
29 Apr, 2024
Hong Kong
Markets in Shanghai and Hong Kong advanced following positive earnings, and a move by the regional government to revive the property market bolstered market sentiment.
Bargain hunters stepped up exposure to profitable tech and financial companies in the hopes that the sustained cash flow would support higher valuations.
However, many international investors view the latest rebound in Chinese stocks as a technical and temporary bounce lacking fundamental catalysts.
The CSI 300 index increased 1.4% to 3,634.94, and the Hang Seng index advanced 1.1% to 17,850.12.
The Chinese yuan approached a 16-year low as the currency hovered near 7.25 against the U.S. dollar, and exporters kept revenue in foreign currencies in anticipation of devaluation in the next few weeks.
The yield on a 10-year Chinese government bond traded near a record low of 2.35%, even after the People's Bank of China held its interest rate steady this month.
The broader benchmark index in Shanghai, tracking the largest companies in mainland China, advanced after AIA reported a 27% increase in its new value business.
The Hang Seng index extended the previous week's gain of 8%, and the index advanced to 20% from the low reached on January 22.
Property stocks jumped more than 5% after the Chengdu regulatory body relaxed qualification rules for new home buyers and facilitated financing for home developers.
The move by the largest Southwestern city in China, with a population of more than 16 million, sparked speculation that other large cities may follow similar moves to revive property market activities.
Longfor Group soared 8.5% to HK$11.94, China Resources Land added 3.4% to HK$28.90, and China Vanke advanced 19% to HK$4.91.
AIA Group rallied 7.7% to HK$58.20 after the insurance company reported a sharp increase in its quarterly results and announced a new stock buyback program.
New Value Business increased to $1.3 billion from $1.05 billion a year ago, and annualized new premium increased by 23% to $2.4 billion.
The insurance company expanded its stock repurchase program by $2 billion to $10 billion, and the company said it plans to distribute 75% of its annual net new surplus funds.
The Hong Kong-based insurance company's stock has declined 38% in 2023, despite the company reporting a 30% increase in its new business value.
The insurance company has also ramped up its stock repurchase program following the buyback of $7.2 billion of its own shares in the last two years.
Electric vehicle makers participated in Monday's rally, and Li Auto advanced 4.5% to HK$58.20, Xpeng added 3.9% to HK$31.50, and BYD added 2.4% to HK$217.80.
In Asian trading, market indexes in Mumbai, Seoul, and Sydney advanced as investors overlooked the hot-inflation report in the U.S. and focused on domestic corporate results.
Financial markets are closed in Tokyo on Monday and Friday as Japan celebrates a national holiday between April 29 and May 6, generally known as Golden Week.
India Movers: Apollo Hospitals, Craftsman Automation, HCL Technologies, ICICI Bank, L&T Finance, Maruti Suzuki, Yes Bank
Arun Goswami
29 Apr, 2024
Mumbai
Stocks in Mumbai advanced in Monday's trading and market indexes extended gains after investors reacted positively to the latest batch of earnings.
The Sensex index increased by 0.5% to 74,052.08, and the Nifty index rose by 0.3% to 22,489.36.
On the Mumbai stock exchange, 92 stocks traded at their 52-week highs, and 3 stocks traded at their 52-week lows.
Craftsman Automation increased 2.1% to ₹4,689.0 after the company's board on April 27 approved the plans to raise ₹1,200 crore.
Apollo Hospitals Enterprise declined 1.9% to ₹6,260.70, and the company said it plans to raise ₹2,475 crore from Advent International.
Maruti Suzuki decreased 1.2% to ₹12,760.0, and the vehicle maker reported strong quarterly results on Friday.
Consolidated revenue in the March quarter increased 20% to ₹38,471.20 crore from ₹32,059 crore, and net profit rose 48% to ₹3,952.30 crore from 2,670.80 crore a year ago.
L&T Finance decreased 2.4% to ₹163.65 after the company reported mixed quarterly results.
Consolidated net interest income in the March quarter rose 14% to ₹1,909 crore, and net profit advanced 11% to ₹554 crore from a year ago.
Yes Bank increased 0.4% to ₹26.05 after the financial services company reported strong quarterly results in the March quarter.
Total operating income rose 19.9% to ₹7,457.81 crore from ₹6,218.45 crore, and net profit soared 126.6% to ₹467.3 crore from ₹206.21 crore a year ago, respectively.
HCL Technologies declined 1.8% to ₹1,477.0 after the tech service exporter reported weaker-than-expected quarterly results.
Revenue in the March quarter increased 7% to 28,499 crore from 26,606 crore, and net income rose 0.08% to 3,986 crore from 3,983 crore a year ago, respectively.
ICICI Bank increased 1.9% to ₹1,129.35 after the bank reported strong quarterly results on Friday.
Net interest income increased 8.1% to 17,667 crore, and net income rose 17.4% to 10,708 crore from a year ago.
Net interest margin slipped 4.4% from 4.9% a year ago and 4.43% in the previous quarter.
Microsoft and Google Earnings Power Big Tech Rally
Barry Adams
26 Apr, 2024
New York City
Stocks on Wall Street advanced after positive earnings from Google and Microsoft lifted market sentiment, and the S&P 500 index and the Nasdaq Composite gained 1%.
Investors also reviewed the latest update on the personal consumption expenditure index, an alternative measure of inflation, which indicated stubborn inflationary pressure despite multiple rate hikes over the last two years.
The personal consumption expenditure index rose 0.3% from the previous month in March, matching the rate in the previous month, the U.S. Bureau of Economic Analysis reported Friday.
On an annual basis, the PCE index increased 2.7% after rising at a 2.5% annual pace in the previous two consecutive months.
The core personal consumption expenditure index, excluding food and energy, rose 2.8%, matching the rate in the previous month, and stayed above the Fed's target rate of 2%.
Personal spending rose by 0.8% from the previous month in March and maintained the rate in the previous month after spending on goods rose, driven by higher expenditures on gasoline and other energy goods.
Tech stocks rallied after Microsoft reported fiscal third-quarter revenue and earnings that exceeded the market's expectations. Google's parent company, Alphabet, announced a stock repurchase program of $70 billion and announced its first-ever dividend.
U.S. indexes and yields
The S&P 500 index increased 0.95% to 5,095.48, and the Nasdaq Composite surged 1.8% to 15,891,41.
The yield on 2-year Treasury notes edged higher to 4.98%, 10-year Treasury notes inched higher to 4.66%, and 30-year Treasury bonds edged lower to 4.77%.
WTI crude oil decreased $0.18 to $83.92 a barrel, and natural gas prices decreased 4 cents to $1.93 a thermal unit.
Gold decreased by $9.60 to $2,340.08 an ounce, and silver rose 10 cents to $27.45.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 105.85.
U.S. Stock Movers
Snap Inc. jumped 24.7% to $14.20 after the social media network operator reported stronger-than-expected sales in the first quarter.
DexCom dropped 6.5% to $129.0 despite the glucose monitoring system maker's reported sales and earnings that exceeded market expectations.
Intel declined 7.7% to $32.39 after the advanced chipmaker reported weaker-than-expected sales in the first quarter and estimated a weak outlook for the current quarter.
Microsoft jumped 4.3% to $416.25 after the software company reported better-than-expected revenue and earnings.
Revenue in the fiscal third quarter increased 17% to $61.86 billion, net income jumped to $21.94 billion from $18.30 billion, and diluted earnings per share advanced to $2.94 from $2.45 a year ago.
Microsoft guided fiscal fourth quarter revenue of $64 billion, driven by strong growth of 31% in its Azure and other cloud service businesses.
Alphabet jumped 11% to $176.0 after the parent company of the search engine, Google, reported stronger-than-expected quarterly results.
Revenue in the first quarter increased by 15% to $80.5 billion. $69.8 billion, net income soared to $23.7 billion from $15.0 billion, and diluted earnings per share rose to $1.89 from $1.17 a year ago.
Google search revenue jumped to $46.2 billion from $40.3 billion, YouTube ad revenue advanced to $8.0 billion from $6.7 billion, and Google cloud revenue increased to $9.5 billion from $7.5 billion a year ago.
Hertz Global increased 0.9% to $4.72 after the company reported mixed quarterly results.
Revenue in the first quarter increased 2% to $2.08 billion from $2.04 billion; the company swung to a net loss of $186 million from a profit of $196 million; and diluted earnings per share were a loss of 61 cents compared to a profit of 61 cents a year ago.
Nasdaq decreased 0.2% to $60.20 after the company reported a decline in earnings in the first quarter.
Revenue in the first quarter increased to $1.7 billion from $1.5 billion, net income fell to $233 million from $301 million, and diluted earnings per share decreased to 40 cents from 61 cents a year ago.
European Markets Extend Weekly Advance, Bond Yields Edge Higher
Bridgette Randall
26 Apr, 2024
Frankfurt
European markets extended weekly gains and indexes are set to halt declines of three weeks in a row.
Benchmark indexes in Frankfurt, Paris, and London advanced in Friday's trading; the euro held firm; and bond yields edged slightly higher.
Investors stayed focused on the latest batch of earnings after Electrolux, SKF, Saint-Gobain, Vinci, Airbus, and Safran reported positive quarterly results.
Market enthusiasm was curbed after U.S. economic growth slowed in the first quarter to 1.6%, but consumer price inflation accelerated to 3.4% from 1.8% in the previous quarter.
The slower growth and higher inflation are the worst combination for investors, as the report signaled that the Federal Reserve is less likely to lower its policy rate at its next meeting in June.
Moreover, the U.S. personal consumption expenditure index, an alternative measure of inflation, is scheduled to be released at 8:30 a.m. ET.
Closer to home, the consumer confidence index in France eased to 90 in April from 91 in the previous month, France's statistical agency, INSEE, reported Friday.
Bank lending to households in the Euro Area in March edged up 0.2% to €6.875 trillion, the slowest pace of increase since February 2015, the European Central Bank reported Friday.
Consumer loan demand continues to fall amid tightening measures by the central bank and two-decade-high interest rates.
Lending to corporations rose 0.4% to €5.132 trillion, following a rise of 0.3% in the previous month.
Overall lending to the private sector, including non-financial corporations and households, rose to 0.8% from 0.7%.
Europe Indexes and Yields
The DAX index increased by 0.8% to 18,062.35; the CAC-40 index rose by 0.4% to 8,044.96; and the FTSE 100 index inched higher by 0.5% to a new intraday record high of 8,120.09.
The yield on 10-year German bonds edged up to 2.59%; French bonds inched higher to 3.08%; the UK gilts edged higher to 4.35%; and Italian bonds inched higher to 3.92%.
The euro edged higher to $1.073; the British pound inched higher to $1.253; and the U.S. dollar edged higher to 91.14 Swiss cents.
Brent crude increased $0.49 to $89.60 a barrel, and the Dutch TTF natural gas rose by €0.53 to €29.37 per MWh.
U.S. Movers: Alphabet, DexCom, Hertz Global, Intel, Microsoft, Nasdaq
Scott Peters
26 Apr, 2024
New York City
Snap Inc. jumped 24.7% to $14.20 after the social media network operator reported stronger-than-expected sales in the first quarter.
DexCom dropped 6.5% to $129.0 despite the glucose monitoring system maker's reported sales and earnings that exceeded market expectations.
Intel declined 7.7% to $32.39 after the advanced chipmaker reported weaker-than-expected sales in the first quarter and estimated a weak outlook for the current quarter.
Microsoft jumped 4.3% to $416.25 after the software company reported better-than-expected revenue and earnings.
Revenue in the fiscal third quarter increased 17% to $61.86 billion, net income jumped to $21.94 billion from $18.30 billion, and diluted earnings per share advanced to $2.94 from $2.45 a year ago.
Microsoft guided fiscal fourth quarter revenue of $64 billion, driven by strong growth of 31% in its Azure and other cloud service businesses.
Alphabet jumped 11% to $176.0 after the parent company of the search engine Google reported stronger-than-expected quarterly results.
Revenue in the first quarter increased by 15% to $80.5 billion. $69.8 billion, net income soared to $23.7 billion from $15.0 billion, and diluted earnings per share rose to $1.89 from $1.17 a year ago.
Google search revenue jumped to $46.2 billion from $40.3 billion, YouTube ad revenue advanced to $8.0 billion from $6.7 billion, and Google cloud revenue increased to $9.5 billion from $7.5 billion a year ago.
Hertz Global increased 0.9% to $4.72 after the company reported mixed quarterly results.
Revenue in the first quarter increased 2% to $2.08 billion from $2.04 billion; the company swung to a net loss of $186 million from a profit of $196 million; and diluted earnings per share were a loss of 61 cents compared to a profit of 61 cents a year ago.
Nasdaq decreased 0.2% to $60.20 after the company reported a decline in earnings in the first quarter.
Revenue in the first quarter increased to $1.7 billion from $1.5 billion, net income fell to $233 million from $301 million, and diluted earnings per share decreased to 40 cents from 61 cents a year ago.
Bank of Japan Holds Rates Steady, Yen Tumbles to a New 34-year Low
Akira Ito
26 Apr, 2024
Tokyo
Stocks in Tokyo advanced after the Bank of Japan held its reference rate steady and signaled possible rate cuts later.
The Nikkei 225 Stock Average jumped 1.2% to 38,083.63, and the Topix index added 1% to 2,692.52.
BOJ Holds Rates Steady and Lifts Inflation Outlook
The Bank of Japan held its overnight lending rate range steady between zero and 0.1% in a widely anticipated move.
In a statement released after the two-day policy meeting, the central bank also increased its inflation expectation to 2.8% from the previous estimate of 2.4% for the financial year 2024.
The committee also lifted its core inflation estimate to 1.9% from the previous estimate of 1.8%, citing persistently high import inflation and a lack of policy support.
The Bank of Japan is struggling to keep interest rates low to support economic expansion, but the move is also widening the interest rate gap between the U.S. and Japan.
The central bank lifted its rate for the first time since 2007 and ended its negative rate regime after revising its interest rate range to between zero and 0.1% in March.
The U.S. Federal Reserve has increased its policy rate eleven times between March 2022 and July 2023, from zero to between 5.25% and 5.50%, but the rates in Japan have hovered near zero.
The Japanese yen dropped to a new 34-year low of 156.16 against the U.S. dollar after the Bank of Japan said it will continue to purchase Japanese government bond purchases "in accordance with the decisions made at the March 2024 monetary policy meeting."
The Japanese yen has dropped 9% so far in the year, and extended loss to 33.5% since December 2020.
The central bank stepped up its purchase of Japanese government bonds over the last three years in order to keep 10-year Japanese government bond yields from rising despite rising inflationary pressure driven in large part by energy imports.
Tokyo Area Inflation Slowed to two-year Low
In other economic news, the Tokyo area's core inflation slowed to a two-year low of 1.6%, reflecting the start of educational subsidies.
The core consumer price index for the Ku-area of Tokyo declined to a two-year low of 1.6% in April, the Statistics Bureau of Japan reported Friday.
The overall consumer price index for the metropolitan city fell to 1.8% in April from 2.6% in March.
Tokyo's inflation rate declined below the target rate of 2% set by the Bank of Japan for the second time this year, lowering the urgency to lift rates in the immediate future.
Japan Stock Movers
Tech stocks led the gainers in Tokyo trading, and SoftBank, Advantest, Tokyo Electron, and Socionext jumped between 1% and 5%.
Vehicle makers advanced after the yen drifted to a new low, and Toyota Motor, Honda Motor, and Nissan Motor gained between 0.3% and 0.7%.
Leading banks also gained, and Mitsubishi UFJ, Mizuho Financial Group, and Sumitomo Mitsui advanced around 0.3%.
In overnight trading in New York, market indexes extended losses after the U.S. economy expanded at a slower annual pace of 1.6% in the first quarter, and consumer prices rose at a faster pace of 3.4%.
The latest economic data suggests that the U.S. Federal Reserve is likely to hold rates steady at its next policy meeting in June amid stubborn inflation.
Asian Markets
Elsewhere in Asia, market indexes in Hong Kong and Shanghai advanced on earnings optimism after CNOOC reported a 24% jump in its quarterly profit.
The market indexes in India edged slightly higher, extending the weekly advance to 1.1%, and the benchmark indexes in South Korea added 1.1%, extending the weekly rise to 1.7%.
Hang Seng Index Extends Weekly Gain to 7% On Earnings Optimism
Li Chen
26 Apr, 2024
Hong Kong
Stocks in Shanghai and Hong Kong advanced and extended weekly and monthly gains amid earnings optimism and supportive policy measures.
Market sentiment was positive after CNOOC, the state-owned oil giant, reported a 24% increase in profit in its latest quarter.
Earlier in the week, Hong Kong Exchanges and Clearing, Li Ning, and Ping An reported better-than-expected quarterly results.
The broader CSI 300 index, tracking stocks on mainland China, extended the weekly gain to 0.9%, and the reference index in Hong Kong soared 7% in the week and the month, respectively.
The CSI 300 index increased 1% to 3,566.74, and the Hang Seng index soared 2% to 17,626.75.
Foreign investors have been cautiously bargain hunting in state-owned companies and tech companies that confirm the government's policy.
However, China's government is known for its swift change in priorities and arbitrary and selective implementation of laws and rules, which could rapidly change investment scenarios.
CNOOC advanced 4.2% to HK$19.88, Sinopec Shanghai Petrochemical rose 1.8% to HK1.10, and China jumped 3.2% to HK$7.60.
Electric vehicle makers participated in the market rally, and BYD jumped 4.5% to HK$214.80, Li Auto added HK$97.85, and Xiaomi advanced 4.1% to HK$17.28.
BYD acquired $27.8 worth of its stock in Thursday's trading.
Guolian Securities jumped 15.5% to HK$3.40, and the brokerage firm plans to acquire privately held Minsheng Securities.
Guolian said it plans to fund the acquisition through the sale of its shares.
China's securities industry is struggling, and amid the four-year downturn that has seen trading activities plunge and thousands of jobs eliminated, the industry is poised for consolidation.
Citic Securities jumped 5% to HK$12.18, and China International Capital Corp. rose 5% to HK$9.32.
In overnight trading in New York, market indexes extended losses after the U.S. economy expanded at a slower annual pace of 1.6% in the first quarter, and consumer prices rose at a faster pace of 3.4%.
The latest economic data suggests that the U.S. Federal Reserve is likely to hold rates steady at its next policy meeting in June amid stubborn inflation.
Elsewhere in Asia, market indexes in Tokyo advanced 0.7% after the Bank of Japan held interest rates steady but lifted its inflation outlook, signaling a possible rate tightening later in the year.
The central bank was widely anticipated to hold rates steady and end negative rates for the first time after eight years at its last meeting in March.
India Movers: Bajaj Finance, IndusInd Bank, Inox winds, Interglobe Aviation, Laurus Labs, Tata Steel, Tech Mahindra
Arun Goswami
26 Apr, 2024
Mumbai
Stocks in Mumbai opened higher, and benchmark indexes extended weekly gains amid a flood of earnings.
The Sensex index increased by 0.4% to 74,400.59, and the Nifty index rose by 0.1% to 22,589.60.
On the Mumbai stock exchange, 145 stocks traded at their 52-week highs, and 6 stocks traded at their 52-week lows.
Bajaj Finance decreased 0.5% to ₹7,296.0 after the financial services company reported net profit in the March quarter increased 21% from a year ago to ₹3,825 crore.
The company said in a regulatory filing that assets under management at the end of the quarter rose 34% from a year ago to ₹3.3 lakh crore.
IndusInd Bank increased 1.8% to ₹1,496.85 after the bank said net profit in the March quarter rose 15% to ₹2,347 crore and net interest income advanced 13.9% to 5,376 crore from a year ago, respectively.
The net interest margin in the quarter edged slightly lower to 4.26% from 4.28% in the previous quarter.
Tech Mahindra increased 0.4% to ₹1,190.75 after the tech services provider reported consolidated profit declined 41% from a year ago to ₹661 crore.
Operating revenue in the quarter declined 6.1% from a year ago to ₹12,871 crore.
Interglobe Aviation rose 2.1% to ₹3,820.0, and the parent company of IndiGo Airlines placed an order for 30 Airbus 350-900 widebody aircraft in a deal estimated to be valued between $4 billion and $5 billion.
Inox Wind increased 7.6% to ₹649.0, and the company's board approved the plan to issue three bonus shares for every share held by shareholders.
Laurus Labs declined 2.4% to ₹424.0, and the company fixed May 8 as the record date for the payment of a 40-paisa dividend to shareholders.
Tata Steel increased 0.9% to ₹167.0, and the company said it plans to invest £1.25 billion at the Port Talbot facility in Wales, U.K.
The steel company also rejected the plan offered by the worker's union to keep the blast furnace working while building the electric furnace, highlighting cost and safety concerns.
The investment in an electric arc furnace will replace two blast furnaces and lower carbon footprints, but the move will also eliminate as many as 2,800 jobs.
Tata said it plans to place the furnace order in September and start construction by August 2025.
GDP Growth Slowed and Inflation Accelerated In the First Quarter
Brian Turner
25 Apr, 2024
Washington, D.C.
First quarter GDP growth fell short of expectations due to lower investment in inventories, the U.S. Bureau of Economic Analysis reported Thursday.
GDP in the first quarter expanded at an annual pace of 1.6%, sharply lower than the 3.4% annual rate in the final quarter of 2023.
Increases in consumer and government spending and residential and non-residential fixed investment were offset by a decrease in private inventory investment.
Moreover, personal consumption price index, a measure of inflation, rose at 3.4%, faster than 1.8% in the previous quarter, and core PCE index, which excludes food and energy prices, accelerated 3.7% from 2.0%.
The yield on 10-year Treasury notes rose to 4.71% after the release of the GDP report on the worry that interest rates are likely to stay elevated, after economic growth slowed and inflation accelerated.
Market Indexes In the U.S. and Europe Turn Lower Amid Interest Rates Uncertainties
Alexander Garcia
25 Apr, 2024
Miami
Benchmark indexes on Wall Street dropped more than 1% and the yield on Treasury notes advanced after the release of the latest GDP report.
The S&P 500 index and the Nasdaq Composite fell more than 1% after the economy sharply slowed down in the first quarter ad consumer price inflation accelerated.
First quarter GDP growth fell short of expectations due to lower investment in inventories, the U.S. Bureau of Economic Analysis reported Thursday.
GDP in the first quarter expanded at an annual pace of 1.6%, sharply lower than the 3.4% annual rate in the final quarter of 2023.
Increases in consumer and government spending and residential and non-residential fixed investment were offset by a decrease in private inventory investment.
Moreover, personal consumption price index, a measure of inflation, rose at 3.4%, faster than 1.8% in the previous quarter, and core PCE index, which excludes food and energy prices, accelerated 3.7% from 2.0%.
The yield on 10-year Treasury notes rose to 4.71% after the release of the GDP report on the worry that interest rates are likely to stay elevated, after economic growth slowed and inflation accelerated.
Tech stocks were also under pressure after Meta Platform's light revenue estimate in the current quarter disappointed some investors.
IBM declined more than 7% after the company's revenues fell short of market expectations.
However, Chipotle Mexican Grill and Honeywell advanced after reporting strong earnings.
Southwest declined after the regional airline lowered its growth outlook and American Airlines reported a quarterly loss, but the company's current quarter outlook supported the market enthusiasm.
U.S. indexes and yields
The S&P 500 index decreased 1.2% to 5,010.05, and the Nasdaq Composite fell 1.7% to 15,447,56.
The yield on 2-year Treasury notes edged higher to 5.0%, 10-year Treasury notes inched up to 4.73%, and 30-year Treasury bonds edged lower to 4.81%.
WTI crude oil decreased $0.54 to $82.15 a barrel, and natural gas prices fell 1 cent to $1.64 a thermal unit.
Gold decreased by $15.34 to $2,331.35 an ounce, and silver fell 21 cents to $27.40.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 105.69.
U.S. Stock Movers
Southwest Airlines plunged 7% to $27.0 after the regional airline reported a wider-than-expected loss in the first quarter, and the company said it anticipates fewer plane deliveries from Boeing.
Revenue in the first quarter increased 11% to $6.3 billion, net loss expanded to $231 million from $159 million, and diluted loss per share increased to 39 cents from 27 cents a year ago.
The airline said it expects to receive a total of 20 Boeing 737 Max 8 airplanes compared to its previous estimate of 46 planes in 2024, and the company plans to delay retiring some of its older planes and look for ways to cut costs.
American Airlines Group rose 5.2% to $14.63 after the company reported better-than-expected quarterly results.
Revenue in the first quarter increased 3.1% to $12.6 billion from $12.2 billion; the company swung to a net loss of $312 million compared to a profit of $10 million; and diluted earnings per share were a loss of 48 cents compared to a profit of 2 cents.
The company said it lowered its debt by $950 million in the first quarter, and it is on track to lower its debt by $15 billion by 2025.
The company estimated its adjusted diluted earnings per share for the second quarter between $1.15 and $1.45 and for the full year between $2.25 and $3.25.
Meta Platforms plunged 14.5% to $421.80 after the social networking site operator projected weaker-than-estimated revenue.
Revenue in the first quarter increased 27% to $36.5 billion from $28.6 billion, net income rose 117% to $12.4 billion, and diluted earnings per share advanced to $4.71 from $2.20 a year ago.
In the quarter, the company repurchased $14.64 billion of its common stock and paid $1.27 billion in dividends.
The company guided second-quarter revenue to range between $36.5 billion and $39 billion and revised its full-year revenue to a range between $96 billion and $99 billion compared to the previous estimate of $94 billion and $99 billion.
European Markets Trade Lower, BHP Bids for Rival Anglo American
European market indexes decreased in cautious trading as investors reviewed the latest batch of earnings in the region and accelerated losses after the release of the U.S. GDP data.
The market mood was cautious amid interest rate path uncertainties and a widening yield gap between the U.S. and Europe.
Benchmark indexes in Frankfurt and Paris edged lower, and the reference index in London advanced after BHP proposed to acquire rival Anglo American and create the largest copper miner in the world, with about 10% of the world's production.
French Manufacturing Confidence Index Eased
France's manufacturing confidence index weakened in April, reflecting the pessimistic outlook for new orders, the latest survey from the statistical office INSEE showed.
The confidence index eased to 100 from the revised 103 in March and hovered near the 5-year average as expectations for general production remained weak but the selling price trend turned positive.
German Consumer Morale Improved
Forward-looking German consumer morale improved in May, according to the latest survey released by the market research group GfK.
The consumer climate index improved to -24.2 for May from -27.3 for April, reaching the highest level in two years.
Income expectations surged to the highest level since January 2022, while the propensity to save rose to a high level of 14.9 from 12.4 in the previous year due to the persistent economic uncertainty in Europe's largest economy.
Consumer sentiment has been on the recovery after reaching a record low in October, but consumers still avoided discretionary items due to economic uncertainties, elevated inflation, and interest rates.
Europe Indexes and Yields
The DAX index decreased by 1.1% to 17,883.74; the CAC-40 index fell by 1.1% to 8,003.36; and the FTSE 100 index inched higher by 0.4% to 8,067.60.
The yield on 10-year German bonds edged up to 2.57%; French bonds inched higher to 3.07%; the UK gilts edged higher to 4.32%; and Italian bonds inched higher to 3.92%.
The euro edged higher to $1.072; the British pound inched higher to $1.252; and the U.S. dollar edged higher to 91.23 Swiss cents.
Brent crude decreased $0.27 to $87.61 a barrel, and the Dutch TTF natural gas rose by €1.09 to €30.26 per MWh.
Europe Stock Movers
Anglo American plc soared 12.9% to 2,491.50 pence after the company received a takeover proposal from the rival BHP Group for £31 billion.
BHP Group declined 2.9% to 2,295.0 pence.
Nestle SA decreased 3.4% to CHF 90.78 after the Swiss food and beverage maker missed its organic sales growth estimates in the first quarter.
Unilever plc rose 4.5% to 4,064.0 pence after the consumer products company reported better-than-expected quarterly sales and reiterated its full-year sales growth estimate between 3% and 5%.
Hellofresh SE increased 3.8% to €7.0 after the meal-kit provider reiterated its fiscal year 2024 outlook.
Delivery Hero soared 9% to €31.55 after the food delivery company reported strong first-quarter results and confirmed its fiscal year 2024 annual outlook.
Pernod Ricard declined 3.3% to €140.25 after the French wine and spirit maker reported weaker-than-anticipated fiscal third quarter sales.
Barclays PLC rose 5.4% to 200.85 pence after the UK-based financial services provider suffered a smaller-than-expected fall in profit in the first quarter.
Rate Jitters Sap Market Sentiment In Japan, Yen Falls Below 155 Mark
Benchmark indexes in Tokyo halted a three-day market rally ahead of the Bank of Japan's monetary policy decisions on Friday.
The Nikkei 225 Stock Average declined 1.9% to 37,734.39, and the Topix index dropped 1.4% to 2,673.27.
Amid a broad selloff, technology and exporters led the decliners as rate jitters turned volatile in the session.
The Japanese yen traded at 155.61 against the U.S. dollar and fell below the 155 mark for the first time in 34 years, and the Bank of Japan was widely expected to hold rates steady at the end of a two-day meeting on Friday.
Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho fell around 1%, and banks and financial services were among the leading decliners ahead of the BOJ's rate decision.
Tech stocks were under pressure after Facebook-parent Meta Platforms issued a weaker-than-expected revenue outlook.
Tokyo Electron, SoftBank, Screen Holdings, Lastertec, Advantest, and Socionext fell between 1.5% and 4%.
Retailers were also under pressure; Isetan Mitsukoshi declined 5%, J Front Retailing fell 2.5%, and Fast Retailing dropped 3.5%.
Canon Inc. declined 7.7% to ¥4,100.0 after the camera maker reported weaker-than-expected earnings in the March quarter.
Revenue in the quarter increased by 1.8% to ¥988.5 billion, after the increases in printer, medical, and industrial equipment sales growth were overwhelmed by an 8.8% decline in sales in the camera business.
Operating profit declined 5.2% to ¥80.2 billion, or $515.5 million, after selling and other expenses rose at a faster pace than revenue.
Net profit rose 6.3% to ¥59.9 billion and fell short of market expectations despite the weakness in the yen.
The camera and printer maker reiterated its 2024 net income outlook at ¥305 billion.
Elsewhere in Asia, markets traded lower tracking losses in overnight trading in New York, and tech stocks dropped after Facebook-parent Meta Platform's guidance fell short of market expectations.
The KOSPI index in Seoul declined 1%, and South Korea's economy expanded by 3.4% in the March quarter from a year ago, following a 2.2% increase in the fourth quarter.
The economy expanded at the fastest pace since the fourth quarter of 2021, driven by higher consumption of goods and services and a sustained increase in exports of tech products.
China Stocks Ride Earnings Wave
Stocks in Shanghai edged slightly higher, and those in Hong Kong gained on the optimism about growing interest from foreign investors.
Market indexes in Shanghai advanced as investors brace for corporate results, and investors are hoping that quarterly results would exceed lowered expectations.
Stocks in Hong Kong advanced after foreign investors increased their holdings of Chinese stocks, and mainland investors also added exposure for the 19th consecutive session.
Investor sentiment was cautiously optimistic after a Chinese regulatory agency announced support for mainland companies to list on the Hong Kong Stock Exchange.
Investors overlooked rising tensions between China and the U.S. after President Joe Biden approved the divestment of a stake in video-sharing platform TikTok.
The CSI 300 index increased 0.2% to 3,530.09, and the Hang Seng Index rose 0.6% to 17,295.93.
Lenovo Group added 3.4% to HK$8.92; SMIC added 2.2% to HK$15.16; and SenseTime Group jumped 10% to HK$0.88.
China Overseas Land & Investment reported first quarter profit rose 14% from a year ago, lifting property stocks in Hong Kong.
China Vanke gained 1% to HK$3.89, and Longfor Group added 3.9% to HK$9.78.
Honk Kong Exchanges Earnings Drop
Hong Kong Exchanges and Clearing Limited increased 3.6% to HK$247.80 after the stock exchange operator reported earnings during Wednesday's lunch break.
Revenue in the first quarter ending in March declined 6% to HK$5.2 billion, or $664 million, and net profit fell 13% to HK$2.97 billion, or $356 million.
The average daily trading volume in the period fell by 22%, and the company blamed the decline on continued geopolitical tensions and macroeconomic volatility.
Weaker trading revenue and listing fees negatively impacted first-quarter revenue, but the exchange operator said in a statement that 85 companies are looking to list their stocks on the bourse in the near future.
A total of 12 companies raised HK$4.7 billion, a decline of 28% from a year ago, according to the data compiled by Ticker.com.
Li Ka-shing Controlled Companies Acquires Ireland's Phoenix Energy
CK Asset Holdings gained 1.5% to HK$32.75, and CK Infrastructure Holdings jumped 0.6% to HK$44.60 after the two companies controlled by Li Ka-shing formed a consortium to acquire the largest natural gas network operator in Northern Ireland, Phoenix Energy.
CK Assets and CK Infrastructure will own 40% each, and Power Assets Holdings, the international energy investment unit controlled by Li Ka-Shing, will hold the remaining 20%.
The three-company consortium agreed to pay $940 million, or £757 million, to acquire the holdings controlled by NatWest Group Pension Fund and Utilities Trust of Australia.