Market Update
European Markets Edge Higher After Middle East Tensions Ease and Crude Oil Prices Turn Lower
Bridgette Randall
22 Apr, 2024
Frankfurt
European market indexes advanced after a week of choppy trading as geopolitical tensions eased and crude prices descended from five-month highs.
Benchmark indexes in Frankfurt, Paris, and London rebounded after declining for three weeks in a row as investors prepare to review earnings from leading global tech companies and European banks.
Tensions between Iran and Israel eased for now after two countries carried out limited strikes and avoided escalating tensions following intense diplomatic efforts by the U.S., Oman, Switzerland, and France.
Crude oil futures prices edged lower after tensions eased in the Middle East and U.S. crude oil inventories rose more than expected, easing global demand growth.
Europe Indexes and Yields
The DAX index increased by 0.4% to 17,814.66; the CAC-40 index rose by 0.2% to 8,037.43; and the FTSE 100 index inched higher by 0.6% to 8,007.47.
The yield on 10-year German bonds edged up to 2.53%; French bonds inched higher to 3.03%; the UK gilts edged higher to 4.24%; and Italian bonds inched higher to 3.90%.
The euro edged higher to $1.065; the British pound inched higher to $1.234; and the U.S. dollar edged higher to 91.11 Swiss cents.
Brent crude decreased $0.35 to $86.73 a barrel, and the Dutch TTF natural gas fell by €0.85 to €29.92 per MWh.
Europe Stock Movers
Tyman soared 31% to 388.50 pence after the U.K.-based doors and windows supplier agreed to be acquired by the U.S.-based metal windows maker Quanex for about £788 million in cash and stock.
Alstom SA jumped 0.5% to €15.19 after the French train maker agreed to sell its North American rail conventional signaling business to Knorr-Bremse for €630 million.
Hipgnosis Song Fund soared 10% to 101.0 pence after alternative asset manager Blackstone offered to buy the troubled music rights investor for $1.5 billion.
Galp Energia rose 16% to €18.67, and the Portuguese oil company said the Mopane oil field off the coast of Namibia could have at least 10 billion barrels of oil.
Tesco PLC increased 2.8% to 289.20 pence after the UK-based grocery retailer commenced its first tranche of its £1 billion stock repurchase program.
Tokyo Stocks Advance Higher, Yen Drifts Lower Ahead of the BoJ's Rate Decisions
Akira Ito
22 Apr, 2024
Tokyo
Stocks attempted to rebound in Japan, and investors looked forward to the Bank of Japan's rate decision and Tokyo area inflation data later in the week.
Last week, market indexes in Tokyo plunged 4.7% and declined seven of the last nine weeks, following sharp losses in New York and Europe after investors lowered their expectations of rate cuts in the U.S.
The sharp fall in market indexes was led by a plunge in popular semiconductor and tech stocks after Taiwan Semiconductor projected a weaker-than-expected sales outlook.
Taiwan-based TSMC lowered its growth estimate for global logic semiconductors to 10% from the previous estimate of more than 10%.
The S&P 500 index registered its worst weekly decline in six months after investors estimated that the previously estimated three rate cuts are less likely to materialize this year after the latest data showed a resilient U.S. economy.
The Nikkei 225 Stock Average rose 0.4% to 37,222.11, and the Topix index advanced 1% to 2,651.93.
Asian markets rebounded from a sharp selloff in the previous week due to the lowered rate-cut expectations in the U.S.
Benchmark indexes in Seoul jumped 0.8%, in Sydney advanced 1.0%, in Shanghai edged up 0.01%, and in Hong Kong soared 2.2%.
The People's Bank of China held steady its 1-year and 5-year loan prime rates at 3.45% and 3.95%, respectively.
The decision by the central bank was widely anticipated after China's economy expanded at a faster-than-expected pace of 5.3%.
In Tokyo's trading, tech stocks led the gainers in Monday's trading.
SoftBank, Tokyo Electron, Advantest, and Screen Holdings rebounded between 0.5% and 2.5%.
Tech stocks are expected to be in focus as Alphabet, Meta Platforms, Microsoft, SK Hynix, and Advantest are scheduled to release their quarterly results later in the week.
Financial stocks advanced in the hopes that the Bank of Japan would lay the groundwork to lift rates; however, Governor Kazuo Ueda signaled last week that the central bank is likely to retain an accommodative stance for some time.
The Bank of Japan is scheduled to announce its rate decisions on Friday, April 26.
The yen traded at 154.64 against the U.S. dollar.
Mitsubishi UFJ, Mizuho Financial Group, and Sumitomo Mitsubishi gained between 1% and 1.5%.
Hong Kong Stocks Rebound After China Announces Regulatory Support
Li Chen
22 Apr, 2024
Hong Kong
Stock market indexes in Shanghai struggled to advance, and market indexes in Hong Kong soared following regulatory reforms.
Asian markets rebounded from a sharp selloff in the previous week due to the lowered rate-cut expectations in the U.S.
Benchmark indexes in Tokyo edged higher by 0.5%, in Seoul jumped 0.8%, in Sydney advanced 1.0%, in Shanghai edged down 0.2%, and in Hong Kong soared 1.7%.
The People's Bank of China held steady its 1-year and 5-year loan prime rates at 3.45% and 3.95%, respectively.
The decision by the central bank was widely anticipated after China's economy expanded at a faster-than-expected pace of 5.3%.
The CSI 300 index decreased 0.2% to 3,533.98, and the Hang Seng index rose 1.7% to 16,506.66.
Hong Kong indexes rose after the China Securities Regulatory Commission announced reforms to facilitate the listing of mainland Chinese companies on the Hong Kong Stock Exchange.
The move comes after the Hang Seng index plunged more than 40% over the last three years as foreign investors fled Chinese stocks.
The securities regulator also said it plans to enhance the Stock Connect system that will facilitate trading in mainland China companies listed on stock exchanges in mainland China.
Tech stocks advanced and participated in the market rally.
Tencent Holdings jumped 4.4% to HK$318.20, Meituan jumped 4.9% to $100.0, and Alibaba Group advanced 3.3% to $68.90.
Oil-related stocks traded lower after crude oil prices fell in international trading following the easing of tensions between Iran and Israel and rising inventories in the U.S.
PetroChina decreased 2.2% to HK$7.33, and CNOOC declined 2% to HK$18.26.
Electric vehicle makers were under pressure after the price war intensified in the industry.
Tesla lowered prices by 5% in mainland China for its electric vehicle manufactured in a Shanghai-based facility.
Li Auto declined 9.6% to HK$26.38, Geely Automotive rose 1.2% to HK$8.92, and BYD fell 0.6% to HK$200.40.
India Movers: HDFC Bank, GSPL, IREDA, Jio Financial, Wipro
Arun Goswami
22 Apr, 2024
Mumbai
Stocks in Mumbai rebounded in Monday's trading as investors overlooked elevated geopolitical tensions and global interest rate uncertainty.
The Sensex index increased by 0.3% to 73,303.91, and the Nifty index rose by 0.3% to 22,224.90.
On the Mumbai stock exchange, 138 stocks traded at their 52-week highs, and 8 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds inched higher to 7.22%, and the Indian rupee edged lower at ₹83.43 against the U.S. dollar.
HDFC Bank decreased 0.2% to ₹1,528.50 after the financial services company reported weaker-than-expected March quarter results.
Net interest income in the quarter rose 24.5% to 29,080 crore, and the core net interest margin was 3.4%.
Wipro advanced 1.1% to ₹456.90 after the tech services providers reported smaller-than-expected declines in revenue and earnings in the March quarter.
Revenue fell 4.2% to 22,208.3 crore and net income declined 7.9% to 2,835 crore from a year ago, respectively.
Jio Financial Services rose 2.1% to ₹377.75 after the company reported March quarter financial results that surpassed market expectations.
Consolidated revenue in the March quarter was nearly flat at 418 crore, and net income rose 5.7% to 310.6 crore from the previous quarter, respectively.
Indian Renewable Energy Development Agency soared 7.2% to ₹172.10 after the company reported strong quarterly results.
Net interest income in the March quarter jumped 35% to ₹172.10 and net profit advanced 33% to 337.4 crore from a year ago, respectively.
Gujarat State Petronet plunged 20% to ₹302.15 after the petroleum and natural gas regulatory board cut the tariff on the company's key petroleum transmission pipeline by 47%.
U.S. Movers: KB Home, Intuitive Surgical, Netflix, P&G, Western Alliance
Scott Peters
19 Apr, 2024
New York City
Intuitive Surgical rose 3.3% to $385.0 after the robotic surgical equipment maker reported better-than-expected quarterly results.
Revenue in the first quarter increased 11% to $1.89 billion from $1.70 billion, net income rose to $547.4 million from $360.8 million, and diluted earnings per share advanced to $1.51 from $1.01 a year ago.
The company placed 313 da Vinci surgical systems, compared with 312 in the first quarter of 2023, and increased its installed base by 14% to 8,887 systems from 7,779 at the end of the first quarter of 2023.
Western Alliance decreased 3.4% to $53.82 after the regional bank posted weaker-than-expected quarterly results.
KB Home increased 1% to $61.04 after the home builder said its board of directors announced a new $1 billion stock repurchase plan.
The new plan replaces the previous authorization with the remaining $113.6 million.
The company intends to continue its share repurchases in 2024 in a projected range of between $200 million and $400 million for the full year, including $50 million of share repurchases completed during the company’s 2024 first quarter.
The home builder's board of directors raised quarterly cash dividend by 25% to 25 cent per share payable on May 23 to shareholders on May 9.
The company declared first quarter results on March 20 and said it repurchased $50 million of its stock in the period.
In the first quarter ending in March, revenue increased 6% to $1.47 billion from $1.38 billion, net income rose to $138.6 million from $125.5 million, and diluted earnings per share rose to $1.76 from $1.45 a year ago.
Netflix declined 5.7% to $571.95 after the online streaming service provider reported better-than-expected quarterly results and added it will stop publishing paid subscriber counts starting in 2025.
Revenue in the first quarter increased to $9.37 billion from $8.16 billion, net income rose to $2.13 billion from $1.30 billion, and diluted earnings per share advanced to $5.28 from $2.88 a year ago.
Caution Prevailed On Wall Steet After Israel Conducted Limited Strike Targeting Iran
Barry Adams
19 Apr, 2024
New York City
Safe-have assets were in demand after the long-running conflict between Israel and Iran spilled over into public view amid rapidly escalating tensions in the Middle East.
Israel's limited strike targeted locations deep into Iran's territory after the nuclear-armed nation conducted missile strikes in a retaliatory move.
However, Israel and Iran appear to be in no mood to step up more attacks for now, after diplomats on both sides worked to lower tensions and limit the conflict from spreading to a regional war.
The so-called safe-haven assets were in demand, and the U.S. Treasury yields held stable; crude oil prices soared 4% before erasing most of the gains; and gold edged slightly higher in early trading.
Investors also reviewed the fresh batch of earnings and reacted negatively to Netflix's announcement that it no longer plans to release a paid subscriber count starting in 2025.
The S&P 500 index and the Nasdaq Composite are set to extend weekly losses for the third week in a row after a week of choppy trading.
The S&P 500 index and the Nasdaq Composite have fallen nearly 5% from their peaks.
U.S. Indexes and Yields
The S&P 500 index declined 0.1% to 5,014.45, and the Nasdaq Composite decreased 0.3% to 15,550.10.
The yield on 2-year Treasury notes edged higher to 4.98%, 10-year Treasury notes inched down to 4.59%, and 30-year Treasury bonds edged lower to 4.69%.
WTI crude oil decreased $0.59 to $82.13 a barrel, and natural gas prices decreased 1 cent to $1.74 a thermal unit.
Gold decreased by $0.82 to $2,379.82 an ounce, and silver fell 1 cent to $28.22.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 105.88.
U.S. Stock Movers
Intuitive Surgical rose 3.3% to $385.0 after the robotic surgical equipment maker reported better-than-expected quarterly results.
Western Alliance decreased 3.4% to $53.82 after the regional bank posted weaker-than-expected quarterly results.
KB Home increased 1% to $61.04 after the home builder said its board of directors announced a new $1 billion stock repurchase plan.
Netflix declined 5.7% to $571.95 after the online streaming service provider reported better-than-expected quarterly results and added it will stop publishing paid subscriber counts starting in 2025.
Revenue in the first quarter increased to $9.37 billion from $8.16 billion, net income rose to $2.13 billion from $1.30 billion, and diluted earnings per share advanced to $5.28 from $2.88 a year ago.
Europe Movers: 888 Holdings, L'Oreal, Man Group, Schneider Electric, Sodexo
Inga Muller
19 Apr, 2024
Frankfurt
European market indexes traded at six-week lows after tensions between Israel and Iran escalated, crude oil surged as much as 4%, and the bond yield edged slightly lower.
The DAX index decreased by 0.6% to 17,720.0; the CAC-40 index fell by 0.3% to 7,998.50; and the FTSE 100 index inched lower by 0.6% to 7,831.73.
The yield on 10-year German bonds edged up to 2.45%; French bonds inched lower to 2.97%; the UK gilts edged higher to 4.24%; and Italian bonds inched lower to 3.84%.
Sodexo increased 4.1% to €80.40 after the company reported a net loss in the first half, driven by the weakness in discontinued operations.
The company also confirmed organic revenue growth in 2024 will be near its previously estimated range of between 6% and 8%.
Schneider Electric SA decreased 2.7% to €209.90 after the digital automation and energy management company confirmed that it is in preliminary purchase talks with the U.S.-based software company Bentley Systems Inc.
Man Group declined 5% to 255.0 pence after the UK-based investment management company confirmed a net fund outflow of $1.6 billion in the first quarter.
888 Holdings increased 2.0% to 81.36 pence after the online gambling company reiterated its full-year outlook.
L'Oreal jumped 4.1% to €441.0 after the French cosmetic company reported a 9.4% increase in comparable sales in the first quarter.
Europe's Stock Indexes at Six-week Low, Germany's Producer Price Deflation Extends to Ninth Month
Bridgette Randall
19 Apr, 2024
Frankfurt
Investors sought safety in precious metals, government bonds, and large-cap stocks after news reports confirmed Israeli airstrikes deep into Iran's territory.
Benchmark indexes in Frankfurt, Paris, and London traded down on the final day of the week amid rapidly escalating tensions between Iran and Israel.
Benchmark indexes are set to decline between 1% and 2% in Europe, extending losses for the third week in a row in Paris and Frankfurt.
Crude oil surged as much as 4% after the news of Israel's airstrikes broke, but prices cooled on reports suggesting that diplomats in Oman, Switzerland, France, and the U.S. are looking for ways to avoid the situation deteriorating further.
Tensions between Israel and Iran have been simmering for the last six months in parallel to the war between Israel and Hamas.
Germany's Producer Price Deflation Extends to the Ninth Month
On the economic front, Germany's producer price index declined 2.9% from a year ago in March, following a decline of 4.1% in the previous month, the Federal Statistical Office reported Friday.
The overall cost of energy prices fell by 7%, driving down producer prices in the month, with natural gas prices falling 15.4% and electricity prices by 12.6%.
Producer prices have been falling for the ninth month in a row, but they fell at the slowest pace since July 2023.
UK Retail Sales Held Steady In March
The UK's retail sales volume was unchanged in March from the previous month but rose 0.8% from a year ago, the Office for National Statistics reported on Friday.
Retail sales in February were revised to an increase of 0.1% from the previous month.
The increase in sales of automotive fuel by 3.2% and non-food stores by 0.5% was offset by declines of 0.7% in food stores and 1.5% in non-store retailers.
Retail sales rose 1.9% in the quarter ending in March when compared to the previous quarter ending in December.
Europe Indexes and Yields
The DAX index decreased by 0.6% to 17,720.0; the CAC-40 index fell by 0.3% to 7,998.50; and the FTSE 100 index inched lower by 0.6% to 7,831.73.
The yield on 10-year German bonds edged up to 2.45%; French bonds inched lower to 2.97%; the UK gilts edged higher to 4.24%; and Italian bonds inched lower to 3.84%.
The euro edged higher to $1.064; the British pound inched higher to $1.246; and the U.S. dollar edged higher to 90.68 Swiss cents.
Brent crude decreased $0.49 to $86.61 a barrel, and the Dutch TTF natural gas fell by €0.59 to €31.51 per MWh.
Europe Stock Movers
Sodexo increased 4.1% to €80.40 after the company reported a net loss in the first half, driven by the weakness in discontinued operations.
The company also confirmed organic revenue growth in 2024 will be near its previously estimated range of between 6% and 8%.
Schneider Electric SA decreased 2.7% to €209.90 after the digital automation and energy management company confirmed that it is in preliminary purchase talks with the U.S.-based software company Bentley Systems Inc.
Man Group declined 5% to 255.0 pence after the UK-based investment management company confirmed a net fund outflow of $1.6 billion in the first quarter.
888 Holdings increased 2.0% to 81.36 pence after the online gambling company reiterated its full-year outlook.
L'Oreal jumped 4.1% to €441.0 after the French cosmetic company reported a 9.4% increase in comparable sales in the first quarter.
Nikkei 225 In Japan Leads Asian Market Selloff Amid Growing Worries of Regional War in the Middle East
Akira Ito
19 Apr, 2024
Tokyo
Market sentiment in Tokyo and other financial capitals in Asia was battered by the worries of an all-out regional war sparked by rapidly escalating tensions between Israel and Iran.
Asian markets fell in Friday's trading, and the Nikkei 225 Stock Average led the decliners with a loss of 3.4%.
In Tokyo, market sentiment has been weak as investors grapple with interest rate uncertainties, a persistent fall in the yen, worries about resurgent inflation, and escalating tensions in the Middle East.
Israel is widely expected to be behind several confirmed explosions in Iraq, Syria, and western Iran's city of Isfahan, where Iran's key nuclear installations are located.
However, Iranian officials told Reuters that there was no explosion near the nuclear installation, but the noise was related to Iran activating its air defense system, contradicting reports of explosions in Iran's local media.
The U.S. official confirmed in an interview with ABC News that Israel is targeting Israel's nuclear installations as a retaliation to Iran's conducting its first-ever direct attack on Israel.
Iran carried out its 300 drones and missile strikes after Israel attacked Iran's embassy in Syria, which Iran considers an attack on its territory and that killed two Iranian generals and six other ranking officials.
Crude oil jumped 4%, gold edged 0.4%, and the yield on 10-year U.S. Treasury notes edged higher as investors sought safe-have assets.
The CSI 300 index in Shanghai fell 1%, the ASX 200 index in Sydney dropped 1.5%, the KOSPI index in Seoul decreased 2.8%, and the Nifty 50 index in Mumbai fell 0.6%.
In early afternoon trading, the Nikkei 225 Stock Average dropped 2.7% to 37,049.36 and the Topix index declined 2% to 2,623.30.
The Nikkei 225 fell below 37,000 for the first time in ten weeks on the weakness in semiconductor stocks.
The Nikkei 225 dropped as much as 3.4%, or 1,313.27, in the morning session but recovered from the session's low in the afternoon trading.
The safe-haven yen rebounded to 153 before falling back to 154.40 against the U.S. dollar in late morning Tokyo trading, and the yield on a 10-year Japanese government bond was held at 0.84%.
The Korean won declined to 1,385.53, the Indian rupee recovered from a record low of 83.65, and the Chinese yuan hovered near 7.25 against the U.S. dollar.
Tech stocks led the decliners, with SoftBank, Tokyo Electron, Advantest, Screen Holdings, Renesas Electronics, and Disco Corp. declining between 3.5% and 8%.
Banks and financial services stocks were also among the leading decliners as the yen approached the 155 mark.
Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho Financial Group declined between 0.7% and 0.9%.
Inpex jumped as much as 3% before easing to a 1.1% increase to 2,398.50 after crude oil prices advanced 4%.
Vehicle makers Toyota Motor, Honda Motor, Nissan Motor, and Subaru declined between 2% and 3%.
China Indexes Drop 1% After Middle East Conflict Escalates
Li Chen
19 Apr, 2024
Hong Kong
Market indexes in Shanghai and Hong Kong declined on the final day of the week after tensions in the Middle East rose.
Three explosions were heard near Isfahan City in western Iran, and other large explosions were confirmed in Iraq and Syria that are suspected Israeli retaliatory attacks.
The conflict between Iran and Israel is now playing out in the open after six months of covert fights between the two warring nations, in parallel to the Israel-Hamas conflict.
Israel's missiles are likely to target Iran's nuclear facilities in Isfahan City and weaken Iran's nuclear program, but that could also lead to more intense and deadlier attacks from Iran targeting Israel's military and nuclear installations.
Asian markets fell in Friday's trading, and the Nikkei 225 Stock Average led the decliners with a loss of 3.3%.
Crude oil jumped 4%, gold advanced 0.6%, and the yield on 10-year U.S. Treasury yields edged down to 4.56% as investors sought safer assets in the time of rising geopolitical tensions.
The CSI 300 index in Shanghai fell 1%, the ASX 200 index in Sydney dropped 1.5%, and the KOSPI index in Seoul decreased 2.8%.
The CSI 300 index decreased 0.9% to 3,538.37, and the Hang Seng index dropped 1.2% to 16,184.02.
This week, the CSI 300 index is up 1.8%, and the Hang Seng index is down 1.9%.
In a broad sell-off, tech stocks, financial services providers, and automobile makers were among the leading decliners.
Alibaba Group declined 1.9% to HK$66.60, Tencent Holdings fell 0.5% to $302.60, and Baidu dropped 1.4% to HK$92.20.
Energy companies traded higher, reflecting a 4% jump in crude oil prices.
CNOOC jumped 2.1% to HK$18.78, China Petroleum and Chemical gained 1.4% to HK$4.65, and Sinopec China Petrochemical gained 4.2% to HK$1.04.
Sands China declined 4.4% to HK$18.06, and Galaxy Entertainment Group fell 0.9% to $33.80.
Electric vehicle makers fell sharply on the worries of a prolonged price war after Li Auto priced its latest model cheaper than Tesla's best-selling car.
Li Auto declined 7% to HK$106.40, BYD dropped 2.4% to HK$200.40, and Geely Automobile Holdings fell 3.2% to HK$8.76.
India Movers: Bajaj Auto, HDFC Life, ICICI Securities, Infosys, Spicejet
Arun Goswami
19 Apr, 2024
Mumbai
Benchmark indexes in Mumbai dropped as much as 0.7% in the early trading after tensions between Iran and Israel escalated after three bombs exploded in western Iran.
The Sensex index increased by 0.7% to 71,995.30, and the Nifty index fell by 0.6% to 21,861.50.
On the Mumbai stock exchange, 42 stocks traded at their 52-week highs, and 4 stocks traded at their 52-week lows.
Infosys decreased 0.6% to ₹1,429.50 after the company reported weaker-than-expected quarterly results.
The tech services exporter said consolidated revenue in the March quarter rose by 1.3% to ₹37,923 crore from ₹37,441 crore, and net income rose to ₹7,969 crore from ₹6,128 crore a year ago, respectively.
Bajaj Auto increased 1.6% to ₹9,063.15 after the company reported a sharp jump in consolidated revenue and earnings, but the company's results on a standalone basis showed a decline in revenue.
Consolidated revenue in the March quarter increased 30% to ₹11,250 crore, and net profit rose 18% to ₹2,011 crore.
HDFC Life Insurance increased 0.5% to ₹607.95 after the life insurance company reported net profit in the March quarter jumped 14.7% to ₹411.6 crore from ₹358.6 crore a year ago.
Spicejet declined 0.6% to ₹62.96 after three aircraft leasing companies filed an insolvency petition with the National Company Law Tribunal demanding payment of ₹77 crore.
ICICI Securities advanced 0.4% to ₹706.0 after the financial brokerage company reported a sharp jump in profit.
Revenue in the March quarter 74% to ₹1.544 crore from ₹885 crore and after-tax profit more than doubled to ₹537 crore from ₹263 crore a year ago.
Rate Path Uncertainty and Stretched Tech Valuations Drag Down U.S. Indexes
Barry Adams
18 Apr, 2024
New York City
Stocks turned lower on Wall Street, and benchmark indexes extended weekly losses as investors adjusted their rate path expectations and future levels of interest rates.
The S&P 500 index and the Nasdaq Composite lacked direction in choppy trading, and investors debated future rate paths, the impact of sharply higher energy prices on inflation, and escalating tensions between Iran and Israel.
Popular indexes wavered around the flatline, and the S&P 500 index is down more than 2% in the week, while the Nasdaq Composite has lost more than 3%.
The S&P 500 index and the Nasdaq Composite are likely to extend their losses to the third and fourth weeks, respectively, if they decline this week.
Crude oil prices eased for the second day in a row after U.S. inventories rose more than expected at the end of last week, suggesting a slightly weakening demand outlook.
The U.S. dollar's strength is also in focus, as a large number of companies in the S&P 500 index rely on foreign markets for their sales and earnings growth.
The Japanese yen is trading at a 34-year low; the South Korean won is hovering near an 18-month low; the Indian rupee is at a record low; and the euro and the British pounds are at 4-month lows.
The Chinese yuan is approaching a record low.
U.S. Indexes and Yields
The S&P 500 index declined 0.2% to 5,010.01, and the Nasdaq Composite decreased 0.4% to 15,622.37.
The yield on 2-year Treasury notes edged higher to 4.95%, 10-year Treasury notes inched down to 4.59%, and 30-year Treasury bonds edged lower to 4.71%.
WTI crude oil decreased $0.37 to $83.06 a barrel, and natural gas prices increased 3 cents to $1.75 a thermal unit.
Gold increased by $15.39 to $2,383.23 an ounce, and silver rose 10 cents to $28.32.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 105.88.
U.S. Stock Movers
D.R. Horton increased 5.2% to $153.31 after the homebuilder reported better-than-expected results in the fiscal second quarter.
Revenue in the March quarter increased 14% to $9.1 billion from $7.9 billion, net income rose to $1.2 billion from $941 million, and diluted earnings per share advanced to $3.52 from $2.73 a year ago.
Blackstone decreased 1.8% to $121.0 after the alternative asset manager reported better-than-expected quarterly results.
The company also lowered its cash dividend to 83 cents per share, payable on May 6 to shareholders on record on April 29.
Total revenue increased to $3.7 billion from $1.4 billion, net income soared to $1.7 billion from $210 million, and diluted earnings per share advanced to $1.11 from 11 cents a year ago.
The company repurchased 0.7 million common shares in the quarter and 3.4 million common shares over the last twelve months.
Total assets under management rose to $1.06 trillion from $991 billion a year ago.
European Markets Rebounded, Bond Yields Edged Lower
European markets edged higher, bond yields in the region inched lower, and the euro held near recent levels as investors debated future rate paths.
Benchmark indexes in Frankfurt, Paris, and London looked up in choppy trading, and investors reviewed the latest update on EU car registration, current account surplus, and construction activities in the currency union.
Eurozone Current Account Surplus Expands
The current account surplus widened to €31.6 billion in February from €10.7 billion a year ago, the European Central Bank reported Thursday.
The increase was driven by the surge in international goods trade surplus to €40.5 billion from €21.0 billion, and service surplus decreased to €2.1 billion from €4.6 billion from a year ago, respectively.
On a seasonally adjusted basis, the current account surplus declined to a three-month low of €29 billion from €39 billion in January.
EU Passenger Car Registration Falls In March
New passenger car registration in the European Union decreased 5.2% from a year ago in March to 1.0 million vehicles, according to the European Automobile Manufacturers' Association.
The annual pace of passenger car registration declined for the first time in three months on weak demand in all four leading markets in the union.
Car registration reversed the increase of 10.1% in February, and the annual pace of decline was the largest since July 2022, largely because of the timing of the Easter holidays.
However, passenger car registration increased 16% from February to 884,000.
Car registration declined 6.2% in Germany, 4.7% in Spain, 3.7% in Italy, and 1.5% in France.
In the first quarter of the year, car registrations increased by 4.4%, reaching nearly 2.8 million units.
The bloc’s major markets saw solid growth from January to March, with Italy and France each recording a 5.7% increase, followed by 4.2% in Germany and 3.1% in Spain.
Battery-electric car registrations fell by 11.3% to 134,397 units amid a broader market downturn, and as a result, battery-powered vehicle's market share shrank to 13% from 13.9% in the month a year ago.
The first quarter of 2024 ended with a total of 332,999 new battery-electric cars registered, a 3.8% rise from the same quarter in the previous year.
Europe Indexes and Yields
The DAX index increased by 0.4% to 17,837.40; the CAC-40 index rose by 0.5% to 8,023.26; and the FTSE 100 index inched higher by 0.4% to 7,877.05.
The yield on 10-year German bonds edged up to 2.45%; French bonds inched lower to 2.95%; the UK gilts edged lower to 4.23%; and Italian bonds inched lower to 3.84%.
The euro edged higher to $1.064; the British pound inched higher to $1.246; and the U.S. dollar edged higher to 90.68 Swiss cents.
Brent crude decreased $0.14 to $87.43 a barrel, and the Dutch TTF natural gas rose by €0.26 to €32.19 per MWh.
Europe Stock Movers
BHP Group declined 0.5% to 2,354.0 pence after iron ore production declined in the fiscal third quarter.
Centamin PLC dropped 4.5% to 123.40 pence after production in the first quarter slightly declined.
Danone SA rose 1.8% to €59.60 after the yogurt maker posted better-than-expected results and reiterated its fiscal year 2024 sales outlook.
Net sales in the first quarter decreased by 2.5% to 6.78 billion from 6.96 billion in the quarter a year ago.
Comparable sales in the quarter rose 4.1% after taking into account the sale of its French biscuit brand, Michel et Augustin.
The company guided comparable sales to increase between 3% and 5%, with a moderate improvement in recurring operating margin.
easyJet rose 2.5% to 531.0 pence after the discount airline forecasted a smaller-than-expected loss in the first half.
Passengers in the fiscal second quarter increased to 16.8 million from 15.6 million, and seats flown increased to 19.3 million from 17.7 million, resulting in a slight decline in load factor to 87% from 88% in the quarter a year ago.
Total group revenue and headline costs for the first half are expected to be around £3,270 million and around £3,620 million, respectively.
China Indexes Struggle In Cautious Trading
Stocks in Shanghai and Hong Kong diverged for the second day in a row this week as investors grappled with multiple headwinds amid optimism about corporate results.
Market sentiment was cautious in China after the latest batch of economic data confirmed a fragile recovery.
Chinese policymakers are betting on technology and manufacturing to drive exports higher to overcome domestic market weakness primarily linked to weak consumer demand and a protracted property market slump.
China's transition from property market-led economic growth to manufacturing-driven expansion is not without its own challenges, as many sectors face overcapacity, falling margins, and intense competition.
Moreover, investors were on the sidelines after the U.S. Fed's hawkish stance on rate outlook and escalating tensions between Iran and Israel stoked fears of crude oil supply disruptions.
In stock trading, casino and insurance companies were among the leading gainers, and tech stocks were among the leading decliners.
The CSI 300 index advanced 0.6% to 3,587.11, and the Hang Seng index gained 1.4% to 16,469.29.
CNOOC and Petro China declined 2% after crude oil prices stayed near five-week highs, denting companies refining margins.
JD.com, Baidu.com, Alibaba Group, and Tencent Holdings traded between a loss of 0.5% and an increase of 1.5%.
Longfor Group, China Vanke, China Resource Land, and Henderson Land advanced between 0.4% and 1.5%.
Sands China and Galaxy Entertainment Group gained around 1.8% in active trading in the hopes of rising tourism spending.
Bank of China, ICBC, Agriculture Bank of China, China Communication Bank, and China Construction Bank advanced between 0.1% and 2.5%.
Rising Home Supply Failed to Lift Existing Home Sales In March
Brian Turner
18 Apr, 2024
New York City
Existing home sales in March declined as buyers struggled to find homes amid elevated prices and rising mortgage rates.
Existing home sales, which include single-family and multi-family homes, decreased in March by 4.3% to an annual pace of 4.19 million, the National Association of Realtors said in its monthly update Thursday.
Existing home sales decreased 3.7% from 4.35 million in March 2023.
"Though rebounding from cyclical lows, home sales are stuck because interest rates have not made any major moves," said NAR Chief Economist Lawrence Yun.
Despite the higher availability of homes, home sales declined and the median home price increased.
Homes available for sale at the end of March increased by 4.7% from February to 1.11 million units, and by 14.4% from 970,000 a year ago.
The median existing-home sale price increased 4.8% from a year ago to $393.500, the ninth monthly price increase in a row and the record price for the month of March.
Higher mortgage rates weighed on the market, and 30-year fixed-rate mortgages averaged 6.88% as of the end of last week, compared to 6.82% in the previous week and 6.27% a year ago.
Single-family home sales declined to a seasonally adjusted annual rate of 3.8 million in March, down 4.3% from 3.97 million in February and 2.8% from the prior year.
The median existing single-family home price increased 4.7% from a year ago to $397,200.
Regionally, sales declined in the larger markets but rose in the Northeast.
Existing home sales in the Northeast increased 4.2% from February to a 500,000 annual pace; in the Midwest, sales shrank 1.9% to an annual rate of 1.01 million; in the South, sales decreased 5.9% to an annual rate of 1.9 million; and in the West, sales dropped 8.2% to an annual rate of 780,000 in March, respectively.
U.S. Movers: Alaska Air, Blackstone, D.R. Horton, Equifax
Scott Peters
18 Apr, 2024
New York City
D.R. Horton increased 5.2% to $153.31 after the homebuilder reported better-than-expected results in the fiscal second quarter.
Revenue in the March quarter increased 14% to $9.1 billion from $7.9 billion, net income rose to $1.2 billion from $941 million, and diluted earnings per share advanced to $3.52 from $2.73 a year ago.
Blackstone decreased 1.8% to $121.0 after the alternative asset manager reported better-than-expected quarterly results.
The company also lowered its cash dividend to 83 cents per share, payable on May 6 to shareholders on record on April 29.
Total revenue increased to $3.7 billion from $1.4 billion, net income soared to $1.7 billion from $210 million, and diluted earnings per share advanced to $1.11 from 11 cents a year ago.
The company repurchased 0.7 million common shares in the quarter and 3.4 million common shares over the last twelve months.
Total assets under management rose to $1.06 trillion from $991 billion a year ago.
Equifax declined 9.6% to $214.04 after the credit score company's second quarter outlook fell short of market expectations.
Revenue in the first quarter increased 7% to $1.4 billion from $1.3 billion, net income to $124.9 million from $112.4 million, and diluted earnings per share advanced to $1.01 from 92 cents a year ago.
The company projected revenue in the second quarter to range between $1.41 billion and $1.43 billion and diluted earnings per share between $1.65 and $1.75.
Alaska Air Group jumped 4.4% to $44.66 after the regional airline reported better-than-expected quarterly results.
Revenue in the March quarter increased 2% to $2.23 billion from $2.19 billion, net loss shrank to $132 million from $142 million, and diluted loss per share contracted to $1.05 from $1.11 a year ago.
The company received $162 million in compensation from Boeing related to Flight 1282 and the Boeing Max plane grounding ordered by the Federal Aviation Authority.
The company said it expects additional payments from Boeing.
The company's purchase of Hawaiian Airlines for $18 a share was approved by Hawaiian shareholders, and the proposed merger needs regulatory approval.
Alaska Air projected earnings per share for the second quarter between $2.20 and $2.40 and for full-year 2024 between $3.25 and $5.25.
U.S. Averages Struggle, Dollar's Strength to Weigh on Earnings
Barry Adams
18 Apr, 2024
New York City
Stocks advanced in early trading as investors shifted their focus to earnings releases, and Treasury yields hovered near recent highs.
The S&P 500 index and the Nasdaq Composite lacked direction in choppy trading, and investors debated future rate paths, the impact of sharply higher energy prices on inflation, and escalating tensions between Iran and Israel.
Crude oil prices eased for the second day in a row after U.S. inventories rose more than expected at the end of last week, suggesting a slightly weakening demand outlook.
The U.S. dollar's strength is also in focus, as a large number of companies in the S&P 500 index rely on foreign markets for their sales and earnings growth.
The Japanese yen is trading at a 34-year low, the South Korean won is hovering near an 18-month low, the Indian rupee is at a record low, and the euro and the British pounds are at 4-month lows.
The Chinese yuan is approaching its record low.
U.S. Indexes and Yields
The S&P 500 index increased 0.07% to 5,023.36, and the Nasdaq Composite decreased 0.03% to 15,678.15.
The yield on 2-year Treasury notes edged higher to 4.95%, 10-year Treasury notes inched down to 4.59%, and 30-year Treasury bonds edged lower to 4.71%.
WTI crude oil decreased $0.48 to $82.21 a barrel, and natural gas prices increased 5 cents to $1.76 a thermal unit.
Gold increased by $17.22 to $2,383.56 an ounce, and silver rose 22 cents to $28.43.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 105.88.
U.S. Stock Movers
D.R. Horton increased 5.2% to $153.31 after the homebuilder reported better-than-expected results in the fiscal second quarter.
Revenue in the March quarter increased 14% to $9.1 billion from $7.9 billion, net income rose to $1.2 billion from $941 million, and diluted earnings per share advanced to $3.52 from $2.73 a year ago.
Blackstone decreased 1.8% to $121.0 after the alternative asset manager reported better-than-expected quarterly results.
The company also lowered its cash dividend to 83 cents per share, payable on May 6 to shareholders on record on April 29.
Total revenue increased to $3.7 billion from $1.4 billion, net income soared to $1.7 billion from $210 million, and diluted earnings per share advanced to $1.11 from 11 cents a year ago.
The company repurchased 0.7 million common shares in the quarter and 3.4 million common shares over the last twelve months.
Total assets under management rose to $1.06 trillion from $991 billion a year ago.
Equifax declined 9.6% to $214.04 after the credit score company's second quarter outlook fell short of market expectations.
Revenue in the first quarter increased 7% to $1.4 billion from $1.3 billion, net income to $124.9 million from $112.4 million, and diluted earnings per share advanced to $1.01 from 92 cents a year ago.
The company projected revenue in the second quarter to range between $1.41 billion and $1.43 billion and diluted earnings per share between $1.65 and $1.75.