Market Update
Hot U.S. Inflation Report Drives Stocks and Bonds Lower
Barry Adams
10 Apr, 2024
New York City
Benchmark indexes on Wall Street turned lower, after consumer price inflation was ahead of market expectations and Treasury yields scaled higher.
The S&P 500 index declined 1.1% and the Nasdaq Composite decreased 1.2% on the worry that hotter-than-expected inflation will delay the Fed's widely advertised rate cuts.
Stocks have been struggling in April in anticipation of the inflation report, amid widespread expectations that the continued easing of inflationary forces over the last nine months will extend to March.
Market indexes have been struggling in April after surging nearly 10% in the first quarter and delivering the best performance in five years.
Consumer Price Inflation Accelerated in March
Consumer price inflation in March accelerated to an annual pace of 3.5% and advanced 0.4% for the month, the U.S. Bureau of Labor Statistics reported Wednesday.
Annual inflation accelerated for the second month in a row to 3.5% in March, up from 3.2% in February and 3.1% in January.
Core inflation, which excludes food and energy prices, held steady at 0.4% from the previous month and rose 3.8% from a year ago in March.
The persistent inflation was driven by a sharp jump in transportation prices of 10.7%, and steady but elevated housing inflation of 5.7%.
The index for shelter and gasoline contributed to over half of the monthly index for all items.
U.S. Indexes and Yields
The S&P 500 index decreased 1.1% to 5,150.31, and the Nasdaq Composite rose 1.2% to 16,122.60.
The yield on 2-year Treasury notes edged higher to 4.95%, 10-year Treasury notes inched up to 4.50%, and 30-year Treasury bonds edged up to 4.59%.
WTI crude oil increased $0.55 to $85.75 a barrel, and natural gas prices increased 3 cents to $1.91 a thermal unit.
Gold decreased by $16.59 to $2,338.72 an ounce, and silver fell 5 cents to $27.85.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 104.81.
U.S. Stock Movers
Delta Air Lines increased 2.8% to $48.65 after the international carrier reported better-than-expected quarterly results.
Revenue increased 8% to $13.75 billion from $12.76 billion, net income swung to a profit of $37 million from a loss of $363 million, and diluted earnings per share were 6 cents compared to a loss of 57 cents a year ago.
The airline guided second-quarter revenue to increase between 5% and 7% and earnings per share to fall between $2.20 and $2.50.
The company also projected 2024 earnings per share to range between $6.0 and $7.0.
PriceSmart increased by 2.6% to $85.25 after the membership warehouse club operator reported better-than-expected second-quarter results.
Revenue in the fiscal second quarter ending in February rose 13.1% to $1.29 billion from $1.14 billion, net income rose to $39.3 million from $31.1 million, and diluted earnings per share rose to $1.31 from $1.02 a year ago.
The company declared a special dividend of $1.0 per share payable on April 30 to shareholders on record on April 19.
WD-40 decreased 2.8% to $248.0 after the lubricant and specialty oil products maker reported weaker-than-expected quarterly revenue.
Revenue in the fiscal second quarter ending in February increased 7% to $139.1 million from $130.2 million, net income edged lower to $15.5 million from $16.5 million, and diluted earnings per share eased to $1.14 from $1.21 a year ago.
NetEase declined 1.4% to 99.23, and Microsoft inched lower 1% to $422.16 after the two companies revived the agreement to distribute computer games in China.
Microsoft's online gaming unit Blizzard revived the previously available distribution partnership with China-based NetEase, including Overwatch and World of Warcraft.
Previously, Blizzard had terminated its partnership with NetEase, alleging intellectual copyright violations.
Europe Movers: Barry Callebaut, Mining Stocks, Philips NV, Semiconductor Stocks, THG
Inga Muller
10 Apr, 2024
Frankfurt
European markets extended weekly gains ahead of the European Central Bank's rate decisions and monetary policy announcements.
The DAX index increased by 0.7% to 18,198.24, the CAC-40 index rose by 0.5% to 8,089.95, and the FTSE 100 index inched higher by 0.6% to 7,981.89.
The yield on 10-year German bonds edged down to 2.36%; French bonds inched lower to 2.86%; the UK gilts edged higher to 4.07%; and Italian bonds inched lower to 3.69%.
Semiconductor equipment companies advanced, following better-than-expected quarterly results from Taiwan Semiconductor.
Infineon Technologies increased 1.9% to €34.19, STMicroelectronics gained 1.4% to €40.12, and ASML Holding added 1.5% to €912.50.
Barry Callebaut soared 8.1% to CHF 1,330.0, after the Swiss chocolate maker reported higher first-half sales.
Revenue in the first half ending in February increased 11.1% to CHF 4.6 billion from CHF 4.2 billion; recurring net profit declined 7.9% to CHF 215.8 million from CHF 234.3 million; and free cash outflow surged to CHF 1.1 billion from CHF 188 million a year ago, respectively.
The chocolate company secured additional financing of CHF 600 million to mitigate higher cash requirements in cocoa bean sourcing and the long cash conversion cycle from cocoa bean sourcing to chocolate sales.
The company projected cocoa bean prices are likely to stay volatile for the rest of the year, and reiterated its annual flat volume and annual recurring operating earnings.
Philips NV rose 2.6% to €19.63 after the Dutch medical device company reached a final settlement with U.S. regulators, primarily linked to its Respironics operations.
Tesco PLC jumped 4.5% to 300.40 pence after the UK-based grocery chain posited a 11% increase in profit in the financial year 2023-2024, and the supermarket chain operator estimated an increase in profit in the current year.
Mining companies advanced for the third day in a row after commodity prices continued to rise on the back of strong global manufacturing activity.
Copper jumped to a 15-month high and approached the record high reached two years ago; gold traded near the record high; and silver hovered near the multi-year high.
Glencore, BHP, Rio Tinto, Anglo American, and Antofagasta advanced between 0.5% and 1.4%.
THG PLC dropped 9% to 62.0 pence after the cosmetics and dietary supplement e-commerce retailer said its revenue declined after the company discontinued loss-making operations.
Revenue in 2023 declined 8.7% to £2.1 billion from £2.2 billion, and adjusted operating earnings from continuing operations rose 78% to 114.1 million from £64.1 million a year ago.
The company said revenue trends in 2024 are "continuing to improve with notable momentum in beauty" and added that the company is likely to "meet consensus estimates" for its annual results.
European Markets Extend Weekly Gains Ahead of ECB Rate Decisions
Bridgette Randall
10 Apr, 2024
Frankfurt
European markets advanced in Wednesday's trading as investors awaited release of the ECB's monetary policy decision on Thursday.
Market sentiment has wavered between euphoric and cautious over the last five trading sessions as investors debate rate paths and economic conditions in the Euro Area.
ECB President Christine Lagarde signaled, after the last rate-setting meeting on March 7, policymakers are likely to approve a rate cut at the end of the meeting in June or after.
Those comments from Lagarde set in motion a market advance and lifted benchmark indexes in France and Germany to new record highs.
Inflation has moderated from as high as 9% to close to 3% over the last eighteen months, but despite multiple interest rate hikes, inflation has stayed significantly above the central bank's target rate of 2%.
Moreover, energy prices have rebounded in the last five weeks, and higher prices are likely to fuel inflationary forces.
In addition, service inflation has stayed firmly above 4%, posing a challenge to policymakers in lowering inflation to closer to its target rate.
Later in the day, the U.S. consumer price inflation report is scheduled to be released at 2:30 p.m. CET.
Investors are anticipating the overall annual pace of inflation in March to rise to 3.4%, and increase 0.35% from the previous month.
Europe Indexes and Yields
The DAX index increased by 0.7% to 18,198.24, the CAC-40 index rose by 0.5% to 8,089.95, and the FTSE 100 index inched higher by 0.6% to 7,981.89.
The yield on 10-year German bonds edged down to 2.36%; French bonds inched lower to 2.86%; the UK gilts edged higher to 4.07%; and Italian bonds inched lower to 3.69%.
The euro edged higher to $1.086, the British pound inched higher to $1.27, and the U.S. dollar edged lower to 90.34 Swiss cents.
Brent crude decreased $0.34 to $89.79. a barrel, and the Dutch TTF natural gas rose by €0.21 to €27.34 per MWh.
Europe Stock Movers
Semiconductor equipment companies advanced, following better-than-expected quarterly results from Taiwan Semiconductor.
Infineon Technologies increased 1.9% to €34.19, STMicroelectronics gained 1.4% to €40.12, and ASML Holding added 1.5% to €912.50.
Barry Callebaut soared 8.1% to CHF 1,330.0, after the Swiss chocolate maker reported higher first-half sales.
Revenue in the first half ending in February increased 11.1% to CHF 4.6 billion from CHF 4.2 billion; recurring net profit declined 7.9% to CHF 215.8 million from CHF 234.3 million; and free cash outflow surged to CHF 1.1 billion from CHF 188 million a year ago, respectively.
The chocolate company secured additional financing of CHF 600 million to mitigate higher cash requirements in cocoa bean sourcing and the long cash conversion cycle from cocoa bean sourcing to chocolate sales.
The company projected cocoa bean prices are likely to stay volatile for the rest of the year, and reiterated its annual flat volume and annual recurring operating earnings.
Philips NV rose 2.6% to €19.63 after the Dutch medical device company reached a final settlement with U.S. regulators, primarily linked to its Respironics operations.
Tesco PLC jumped 4.5% to 300.40 pence after the UK-based grocery chain posited a 11% increase in profit in the financial year 2023-2024, and the supermarket chain operator estimated an increase in profit in the current year.
Mining companies advanced for the third day in a row after commodity prices continued to rise on the back of strong global manufacturing activity.
Copper jumped to a 15-month high and approached the record high reached two years ago; gold traded near the record high; and silver hovered near the multi-year high.
Glencore, BHP, Rio Tinto, Anglo American, and Antofagasta advanced between 0.5% and 1.4%.
THG PLC dropped 9% to 62.0 pence after the cosmetics and dietary supplement e-commerce retailer said its revenue declined after the company discontinued loss-making operations.
Revenue in 2023 declined 8.7% to £2.1 billion from £2.2 billion, and adjusted operating earnings from continuing operations rose 78% to 114.1 million from £64.1 million a year ago.
The company said revenue trends in 2024 are "continuing to improve with notable momentum in beauty" and added that the company is likely to "meet consensus estimates" for its annual results.
China Car Sales Rise Amid Intense Competition, Exports Soar 39% to Record High
Li Chen
10 Apr, 2024
Hong Kong
China's passenger car sales increased 5.7% in March from a year ago to 1.678 million units and rebounded 53% from the previous month after consumer demand rebounded following the Lunar New Year holiday.
Electric vehicles account for about 41.5% of all passenger car sales in China.
Electric vehicle sales rose 10.5% in March from a year ago as automakers launched new vehicles and offered significant price discounts and additional financing incentives.
BYD sales increased 46% to 302,500 units, LI Auto sales advanced 39% to 28,984 units, and Cherry sales rose 45.3% to 181,585 units.
Geely Auto said sales advanced 39% to 150,800 units, and Nio deliveries increased 14.3% to 11,866 units.
Specifically, Chinese carmakers' sales in the first quarter rose 49% from a year ago to 475,700 vehicles, including vehicle exports of 87,000.
The China Passenger Car Association estimated that wholesale new energy vehicle sales, which account for battery EVs and plug-in EVs, increased 33% from a year ago to 820,000 units in March, an 84% rise from the previous month.
China's overall passenger car export growth accelerated to 39% in March, from 18% in February, to 406,000 units.
Rising sales came with a sharp fall in profit margins for Chinese companies after they slashed prices and introduced cheaper models.
The profit margin of the Chinese auto industry has declined to 4.3% from 8.7% in 2015, said Cui Dongshu, the secretary general of the China Passenger Car Association.
Rising exports from China also have policymakers and officials worried in Europe and the U.S.
U.S. Treasury Secretary Janet Yellen confirmed on Monday that tariffs are still likely to stem the rising exports of Chinese vehicles.
“China is now simply too large for the rest of the world to absorb this enormous capacity,” Janet Yellen said at a press conference on Monday.
Japan's Producer Price Inflation Holds Steady, Hong Kong Stocks Approach 4-week High
Akira Ito
10 Apr, 2024
Tokyo
Market indexes in Asia generally traded higher as investors awaited the release of the U.S. consumer price inflation report later today and monetary policy decisions from the European Central Bank on Thursday.
Moreover, China is also scheduled to release its foreign trade and inflation data later in the week.
China's exports for March are expected to decline by about 2%, but the trade surplus may rise on account of the larger decline in imports.
Consumer price inflation in China is expected to rise 0.4% from the previous month in March, the second monthly increase in a row.
Financial markets are closed in South Korea for Election Day and shuttered in Malaysia, Indonesia, and Singapore to celebrate Eid ul-Fitr.
Japan Stocks Halt Two-day Rally, PPI Holds Steady
Stocks in Tokyo headed lower and halted a two-day rally after producer price indexes rose in March.
The producer price index in March rose to 0.8% from an upwardly revised 0.7% increase in February, the Bank of Japan said on Wednesday.
Investors were on the defensive after the measure of wholesale prices in March rose by 0.2% from the previous month and matched the increase in the previous month.
The overall bank lending in Japan rose 3.2% from a year ago to 619.6 trillion yen and accelerated from the 3.0% annual pace in February.
Overall lending in the first quarter rose 3.1%, the Bank of Japan added.
Investors turned cautious in the absence of other local economic news ahead of the U.S. consumer price inflation report later in the day.
The Nikkei 225 Stock Average decreased 0.4% to 39,613.30, and the Topix index declined 0.3% to 2,745.93.
Financial stocks were among the leading losers.
Mizuho Financial, Sumitomo Mitsui Financial, and Mitsubishi UFJ declined between 0.5% and 1.2%.
Tokyo Gas, Tokyo Electric Power, and Japan Steel Works added more than 3.5%.
Advantest, Screen Holdings, Disco Corp., and Softbank declined between 0.3% and 1.1%.
Hong Kong Stocks Advance After Stock Buybacks Support Prices
Stocks in China extended their weekly losses, but stocks advanced in Hong Kong after corporations stepped up stock-buying activities.
Investors are looking forward to the release of inflation data later in the day and the foreign trade report on Thursday.
The CSI 300 index decreased 0.3% to 3,518.42, and the Hang Seng index rose 1.9% to 3,518.42. Both indexes are trading below their historical earnings ratio of below eight.
The Hong Kong market index is nearing a 4-week high after government intervention supported stock prices and foreign investors returned in search of bargains.
About 61 Hong Kong-listed companies repurchased their stocks worth HK$4.59 billion last week, with Tencent Holdings buying back HK$3 billion worth of its stock, Zheshang Securities said in a note to its clients.
Hang Seng Bank gained 5.6% to HK$99.30 after the company announced its stock repurchase plan of HK$3.0 billion.
BYD Auto gained 2.2% to HK$211.80, Li Auto advanced 3% to HK$125.60, and Xpeng gained 7% to HK$32.05.
Zijin Mining Group soared 5.5% to HK$17.70 after the gold miner tracked a record high gold price in Shanghai and New York as central banks in China and India continued to add to their holdings.
China Auto Sales Expanded Amid Price Wars and New Models
China's passenger car sales increased 5.7% in March from a year ago to 1.678 million units and rebounded 53% from the previous month after consumer demand rebounded following the Lunar New Year holiday.
Electric vehicles account for about 41.5% of all passenger car sales in China.
Electric vehicle sales rose 10.5% in March from a year ago as automakers launched new vehicles and offered significant price discounts and additional financing incentives.
BYD sales increased 46% to 302,500 units, LI Auto sales advanced 39% to 28,984 units, and Cherry sales rose 45.3% to 181,585 units.
Geely Auto said sales advanced 39% to 150,800 units, and Nio deliveries increased 14.3% to 11,866 units.
Specifically, Chinese carmakers' sales in the first quarter rose 49% from a year ago to 475,700 vehicles, including vehicle exports of 87,000.
The China Passenger Car Association estimated that wholesale new energy vehicle sales, which account for battery EVs and plug-in EVs, increased 33% from a year ago to 820,000 units in March, an 84% rise from the previous month.
China's overall passenger car export growth accelerated to 39% in March, from 18% in February, to 406,000 units.
Rising sales came with a sharp fall in profit margins for Chinese companies after they slashed prices and introduced cheaper models.
The profit margin of the Chinese auto industry has declined to 4.3% from 8.7% in 2015, said Cui Dongshu, the secretary general of the China Passenger Car Association.
Rising exports from China also have policymakers and officials worried in Europe and the U.S.
U.S. Treasury Secretary Janet Yellen confirmed on Monday that tariffs are still likely to stem the rising exports of Chinese vehicles.
“China is now simply too large for the rest of the world to absorb this enormous capacity,” Janet Yellen said at a press conference on Monday.
India Indexes Inch Higher In Record Territory Ahead of Tech Earnings
Stocks in Mumbai edged higher, and bond yields held steady ahead of a public holiday on Thursday.
The Sensex and Nifty indexes traded sideways with an upward bias as investors awaited earnings releases from tech services providers later in the week.
Market indexes are expected to trade volatile in thin trading as financial markets are closed for the Ramzan Id public holiday on Thursday.
The Sensex index increased by 0.3% to 74,873.93, and the Nifty index edged higher by 0.3% to 22,705.85.
The yield on the 10-year Indian government bonds inched higher to 7.15%, and the Indian rupee edged lower at ₹83.21 against the U.S. dollar.
Global Markets On Hold Ahead of the U.S. Inflation Report and Rate Decisions in the Euro Area
Barry Adams
09 Apr, 2024
New York City
Stocks traded sideways, Treasury yields edged slightly lower in Tuesday's trading, and metals extended recent gains.
The S&P 500 index and the Nasdaq Composite turned lower in choppy trading and erased morning gains as investors awaited the release of the consumer price index report on Wednesday.
Investors are estimating overall consumer price inflation to increase 3.4% from a year ago, and advance 0.35% on the month in March, according to a survey of ten economists conducted by Ticker.com.
Investors are also anticipating the producer price inflation report on Thursday.
The yield on 10-year Treasury notes edged slightly lower after rising for two days in a row following Friday's nonfarm payrolls report.
The U.S. economy added more-than-expected 330,000 net new jobs in March, the fastest pace of increase in ten months, and indicating resilient labor market conditions.
The jobs report was the last of several reports over the last two weeks that highlighted strong U.S. economic and labor market conditions.
Copper traded at a new high in Shanghai, gold reached a new high in New York, and silver hovered near multi-year highs.
Higher base metal prices suggested robust industrial activities, which are driven by strong construction activities, and demand for consumer and capital goods.
U.S. Indexes and Yields
The S&P 500 index decreased 0.2% to 5,192.68, and the Nasdaq Composite rose 0.01% to 16,254.46.
The yield on 2-year Treasury notes edged higher to 4.78%, 10-year Treasury notes inched down to 4.39%, and 30-year Treasury bonds edged up to 4.53%.
WTI crude oil decreased $1.25 to $85.25 a barrel, and natural gas prices increased 1 cent to $1.86 a thermal unit.
Gold increased by $5.40 to $2,344.85 an ounce, and silver fell 5 cents to $27.85.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 104.10.
U.S. Stock Movers
Boeing Co. declined 0.9% to $181.56, and Southwest Airline's flight lost engine cover during flight takeoff from Denver, Colorado, to Houston, Texas, on Sunday.
Southwest Flight 2695 Boeing 737 800 jet plane safely returned to the ground after reaching a height of 3,140 meters with 135 passengers and six crew members.
Boeing has been under intense scrutiny from aviation regulators and airlines after a series of mishaps and safety lapses over the last four years.
Ally Financial increased 1.3% to $39.26, and Discover Financial Services chief executive Michael Rhodes was appointed as chief executive of the company.
European Markets Closed Down In Cautious Trading Ahead of ECB Rate Decisions
European market indexes traded lower, bond yields declined, and the euro hovered near its two-month average.
Benchmark indexes in Frankfurt, Paris, and London edged lower amid cautious trading ahead of the European Central Bank's monetary policy decisions on Thursday.
Market participants are worried that policymakers may not follow through on the possible rate cut as early as June, as signaled at the end of the last meeting on March 7.
Moreover, investors are also concerned that the U.S. Federal Reserve Bank is more likely to delay its advertised rate cut later than previously expected, with spillover effects in global bond market.
France's Goods Trade Deficit Shrank In February
France's international goods trade deficit shrank to Є5.2 billion from Є7.2 billion in January after exports rose faster than imports, according to the latest data released by the general directorate of customs on Tuesday.
Exports in February rose 4.7% to Є51.1 billion from Є48.8 billion in January, and imports advanced 0.5% to Є56.3 billion from Є56.0 billion in the previous month.
The goods trade deficit in February decreased to Є5.2 billion from Є7.2 billion in the previous month, and the cumulative deficit improved to Є90.9 billion.
Trade deficit dropped to the lowest since January 2021, after exports rose and the energy deficit declined in the month to Є3.8 billion from Є4.5 billion in the previous month.
Excluding energy, the trade deficit shrank to Є2.8 billion from Є4.0 billion in January.
In the manufacturing sector, trade deficit shrank to Є3.3 billon from Є4.0 billion; after consumer goods surplus rose to Є0.8 billion from Є0.7 billion, intermediate goods deficit shrank to Є0.9 billion from Є1.8 billion, and capital goods deficit expanded to Є3.2 billion from Є2.9 billion.
Europe Indexes and Yields
The DAX index decreased by 1.3% to 18,076.69, the CAC-40 index fell by 0.9% to 8,049.17, and the FTSE 100 index inched lower by 0.1% to 7,934.79.
The yield on 10-year German bonds edged down to 2.39%; French bonds inched lower to 2.89%; the UK gilts edged higher to 4.08%; and Italian bonds inched lower to 3.73%.
The euro edged higher to $1.086, the British pound inched higher to $1.267, and the U.S. dollar edged lower to 90.35 Swiss cents.
Brent crude decreased $1.01 to $89.50. a barrel, and the Dutch TTF natural gas fell by €0.36 to €27.56 per MWh.
Europe Stock Movers
Atos declined 15% to €1.96, after the struggling French IT company announced its restructuring plan details.
Nordex SE gained 2.5% to Є12.88 after the German wind turbine company won an order to supply 295 MW wind turbines to EDF Renewables in South Africa.
Siemens AG declined a fraction to Є173.68 after the German engineering company said its Supervisory Board extended the contract for President and Chief Executive Officer Roland Busch for five years, starting April 1, 2025.
Imperial Brands inched up 0.4% to 1,737.50 pence after the UK-based tobacco company reiterated its revenue and earnings outlook for fiscal 2024.
Mining companies advanced in London trading after the copper price in Shanghai traded at a record high on the expectation of rising demand for manufactured goods in developed economies and in China.
Anglo American, Antofagasta, and Glencore advanced between 1% and 2%.
BP plc increased 1.5% to 516.30 pence after the company said it anticipates strong performance in the first quarter.
HSBC Holdings gained 0.3% to 646.40 pence after the UK- and China-based bank said it plans to sell its banking operation in Argentina to Grupo Financiero Gallicia for about $550 million.
Asian Markets Scale Higher Ahead of Earnings Season Kickoff
Stocks in Asia generally advanced as investors shifted their focus to the start of the earnings season.
Market sentiment was positive in Asia, ahead of the release of key economic data in China.
In Asia, market indexes in Tokyo advanced 0.4%, Hong Kong advanced 0.6%, and Shanghai and Seoul declined 0.3%.
Tech Stocks Lead Japan Indexes Higher
Stocks in Tokyo rebounded for the second day in a row, led by a surge in tech stocks.
The yen approached the 152 mark against the U.S. dollar as nervous traders worried about government intervention in the currency market.
The yen has been hovering at a multi-year high after the Bank of Japan ended its negative rate policy after eight years and lifted interest rates for the first time since February 2007.
Policymakers were hoping that the yen would strengthen after the end of the negative rate regime on March 19, but the currency has continued to weaken.
The Nikkei 225 Stock Average jumped 0.9% to 39,713.49, and the Topix index advanced 0.8% to 2,750.40.
Among the most active tech stocks, SoftBank, Tokyo Electron, Advantest, Disco Corp., Renesas Electronics, and Shin-Etsu Chemical advanced between 1% and 3%.
Financial stocks also participated in the market rally.
Mitsubishi UFJ, Sumitomo Mitsui Financial, and Mizuho Financial advanced between 0.2% and 0.4%.
Cautious Trading in China Ahead of Inflation and Foreign Trade Data
Stocks in Shanghai and Hong Kong diverged, and investors looked forward to the release of inflation and foreign trade data later in the week.
Stocks in Shanghai remained under pressure ahead of the release of consumer price data on Wednesday, and investors are hoping prices edged higher by 0.4% in March, the second monthly increase in a row.
Moreover, investors are anticipating exports to decline between 1% and 2% in March, and trade surplus to expand.
China's exports in the January–February period rose 7.1% and imports rose 3.1% from a year ago, respectively, according to the customs agency.
The CSI 300 index decreased 0.3% to 3,526.63, and the Hang Seng Index advanced 0.8% to 16,861.38.
Net Ease increased 4.7% to HK$158.50, after the National Press and Publication Administration approved 15 foreign computer games for the Chinese market.
Electric vehicle makers advanced in the hopes of higher domestic and international sales in the second quarte.
Li Auto increased 2.2% to HK$123.40, BYD added 2.5% to $207.0, and Xiamo Corp. jumped 2.9% to HK$15.94.
Property stocks were in focus after Country Garden reported a sharp decline in sales in March.
Contracted sales in March plunged 83% to 4.3 billion yuan, and when measured by area, they dropped 85% to 450,000 square meters.
China Vanke, China Resources Land, and Henderson Land edged higher between 0.2% and 0.6%.
The Guangdong-based Country Garden's stock is suspended from trading on the Hong Kong Stock Exchange, as the company missed Thursday's deadline to file its annual report.
India Indexes Inch Higher in Record Zone Ahead of Earnings Season
Stocks in Mumbai edged higher in subdued trading, as the earnings season gained momentum.
The Sensex and the Nifty indexes struggled to advance in early trading as investors looked forward to the release of corporate earnings from tech services providers.
Stocks in Mumbai are struggling to advance in the second quarter ahead of the general election next month, and there are worries about high valuations in the small and mid-cap sectors.
Moreover, the recent rise in commodity and metal prices has rekindled the fear of resurgent inflation, negatively impacting vehicle sales.
Brent crude oil price decreased 1.6% to $89.70 a barrel, after tensions eased in the Middle East after negotiations between Israel and Hamas resumed in Egypt.
However, Israel stressed that its army is ready to launch a military strike in Rafah City, Gaza, if a settlement is not reached soon.
The Sensex index increased 0.5% to 74,635.23, and the Nifty index edged higher by 0.3% to 22,621.95.
On the Mumbai stock exchange, 266 stocks traded at their 52-week highs, and 12 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds inched higher to 7.15%, and the Indian rupee edged lower at ₹83.26 against the U.S. dollar.
Axis Bank rose 1.7% to ₹1,077.0 after the private equity firm Bain Capital plans to sell its remaining stake in the bank through a block trade in the price range between ₹1,071 and ₹1,076 per share.
Tata Motors increased 0.6% to ₹1,012.70 after the company's Jaguar Land Rover unit said vehicle sales in the March quarter increased 11% to 114,038.
For the fiscal year ending in March 2024, vehicle sales advanced 22% to 431,733 units.
U.S. Movers: Ally Financial, BlackBerry, Boeing, Lucid Group, Norfolk Southern
Scott Peters
09 Apr, 2024
New York City
Boeing Co. declined 0.5% to $180.83 and extended two-day losses to more than 4% after Southwest Airline flight lost engine cover during flight takeoff from Denver, Colorado, to Houston, Texas, on Sunday.
Southwest Flight 2695 flying Boeing 737 800 jet plane safely returned to the ground after reaching altitude of 3,140 meters with 135 passengers and six crew members.
Boeing has been under intense scrutiny from aviation regulators and airlines after a series of mishaps and safety lapses over the last four years.
Southwest decreased 0.8% to $28.43.
Ally Financial increased 1.3% to $39.26, and Discover Financial Services chief executive Michael Rhodes was appointed as chief executive of the company.
Lucid Group rose 3% to $2.72 after the electric vehicle maker reported better-than-expected vehicle sales in the first quarter.
The company sold 1,967 vehicles in the quarter ending in March, and manufactured 1,728 vehicles in the period.
Lucid produced 2,391 vehicles during the December quarter and delivered 1,734 vehicles during the same period.
Last month, the embattled company raised $1 billion from Ayar Third Investment Company, an associate company of Saudi Arabia's sovereign wealth fund.
Norfolk Southern rose 1.1% to $252.86, after the railroad company struck a class action settlement of $600 million, which still needs approval from the court.
The Atlanta, Georgia-based company said it has already spent more than $1.1 billion cleaning up after a train derailed in East Palestine, Ohio, spilling over toxic chemicals in February 2023.
The settlement covers compensation to businesses, residents, and communities impacted by the spilling of hazardous chemicals.
If approved by the court, the agreement will resolve all class action claims within a 20-mile radius of the derailment and, for those residents, personal injury claims within a 10-mile radius of the derailment.
Norfolk Southern is still facing lawsuits from shareholders, the Justice Department, and Ohio State.
BlackBerry Ltd. increased 8% to $3.11, and the cyber security company announced a partnership with Advanced Micro Devices for its robotics platform for advanced applications in healthcare and industrial applications.
U.S. Major Averages Trade Sideways Ahead of Inflation Reports
Barry Adams
09 Apr, 2024
New York City
Stocks traded sideways, and Treasury yields edged slightly lower in Tuesday's trading.
The S&P 500 index and the Nasdaq Composite inched higher as investors awaited the release of the consumer price index report on Wednesday.
Investors are estimating overall consumer price inflation to increase 3.4% from a year ago and advance 0.35% on the month in March, according to a survey of ten economists conducted by Ticker.com.
Investors are also anticipating the producer price inflation report on Thursday.
The yield on 10-year Treasury notes edged higher for the third day in a row after Friday's nonfarm payrolls surpassed market expectations and the U.S. economy added more-than-expected 330,000 net new jobs in March.
The jobs report was the last of several reports over the last two weeks that highlighted strong U.S. economic and labor market conditions.
U.S. Indexes and Yields
The S&P 500 index increased 0.2% to 5,242.13, and the Nasdaq Composite rose 0.4% to 16,314.26.
The yield on 2-year Treasury notes edged higher to 4.78%, 10-year Treasury notes inched down to 4.39%, and 30-year Treasury bonds edged up to 4.53%.
WTI crude oil decreased $0.17 to $86.52 a barrel, and natural gas prices increased 3 cents to $1.88 a thermal unit.
Gold increased by $15.09 to $2,354.51 an ounce, and silver rose 14 cents to $26.04.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 104.08.
U.S. Stock Movers
Boeing Co. declined 0.9% to $181.56, and Southwest Airline's flight lost engine cover during flight takeoff from Denver, Colorado, to Houston, Texas, on Sunday.
Southwest Flight 2695 Boeing 737 800 jet plane safely returned to the ground after reaching a height of 3,140 meters with 135 passengers and six crew members.
Boeing has been under intense scrutiny from aviation regulators and airlines after a series of mishaps and safety lapses over the last four years.
Ally Financial increased 1.3% to $39.26, and Discover Financial Services chief executive Michael Rhodes was appointed as chief executive of the company.
Europe Movers: Atos, BP, HSBC, Imperial Brands, Nordex, Siemens
Inga Muller
09 Apr, 2024
Frankfurt
Investors in Europe turned cautious and dialed back rate-cut expectations ahead of the European Central Bank's policy announcement on Thursday.
The DAX index decreased by 0.7% to 18,198.56, the CAC-40 index fell by 0.6% to 8,072.06, and the FTSE 100 index inched higher by 0.1% to 7,952.90.
The yield on 10-year German bonds edged down to 2.39%; French bonds inched lower to 2.89%; the UK gilts edged higher to 4.08%; and Italian bonds inched lower to 3.73%.
Atos declined 15% to €1.96, after the struggling French IT company announced its restructuring plan details.
Nordex SE gained 2.5% to Є12.88 after the German wind turbine company won an order to supply 295 MW wind turbines to EDF Renewables in South Africa.
Siemens AG declined a fraction to Є173.68 after the German engineering company said its Supervisory Board extended the contract for President and Chief Executive Officer Roland Busch for five years, starting April 1, 2025.
Imperial Brands inched up 0.4% to 1,737.50 pence after the UK-based tobacco company reiterated its revenue and earnings outlook for fiscal 2024.
Mining companies advanced in London trading after the copper price in Shanghai traded at a record high on the expectation of rising demand for manufactured goods in developed economies and in China.
Anglo American, Antofagasta, and Glencore advanced between 1% and 2%.
BP plc increased 1.5% to 516.30 pence after the company said it anticipates strong performance in the first quarter.
HSBC Holdings gained 0.3% to 646.40 pence after the UK- and China-based bank said it plans to sell its banking operation in Argentina to Grupo Financiero Gallicia for about $550 million.
European Investors Turned Cautious Ahead of the ECB Meeting, French Trade Deficit Shrank
Bridgette Randall
09 Apr, 2024
Frankfurt
European market indexes traded lower, bond yields declined, and the euro hovered near its two-month average.
Benchmark indexes in Frankfurt, Paris, and London edged lower amid cautious trading ahead of the European Central Bank's monetary policy decisions on Thursday.
Market participants are worried that policymakers may not follow through on the possible rate cut as early as June, as signaled at the end of the last meeting on March 7.
Moreover, investors are also concerned that the U.S. Federal Reserve Bank is more likely to delay its advertised rate cut later than previously expected, with spillover effects in global bond market.
France's Goods Trade Deficit Shrank In February
France's international goods trade deficit shrank to Є5.2 billion from Є7.2 billion in January after exports rose faster than imports, according to the latest data released by the general directorate of customs on Tuesday.
Exports in February rose 4.7% to Є51.1 billion from Є48.8 billion in January, and imports advanced 0.5% to Є56.3 billion from Є56.0 billion in the previous month.
The goods trade deficit in February decreased to Є5.2 billion from Є7.2 billion in the previous month, and the cumulative deficit improved to Є90.9 billion.
Trade deficit dropped to the lowest since January 2021, after exports rose and the energy deficit declined in the month to Є3.8 billion from Є4.5 billion in the previous month.
Excluding energy, the trade deficit shrank to Є2.8 billion from Є4.0 billion in January.
In the manufacturing sector, trade deficit shrank to Є3.3 billon from Є4.0 billion; after consumer goods surplus rose to Є0.8 billion from Є0.7 billion, intermediate goods deficit shrank to Є0.9 billion from Є1.8 billion, and capital goods deficit expanded to Є3.2 billion from Є2.9 billion.
Europe Indexes and Yields
The DAX index decreased by 0.7% to 18,198.56, the CAC-40 index fell by 0.6% to 8,072.06, and the FTSE 100 index inched higher by 0.1% to 7,952.90.
The yield on 10-year German bonds edged down to 2.39%; French bonds inched lower to 2.89%; the UK gilts edged higher to 4.08%; and Italian bonds inched lower to 3.73%.
The euro edged higher to $1.086, the British pound inched higher to $1.267, and the U.S. dollar edged lower to 90.35 Swiss cents.
Brent crude decreased $0.09 to $90.60. a barrel, and the Dutch TTF natural gas rose by €0.12 to €28.04 per MWh.
Europe Stock Movers
Atos declined 15% to €1.96, after the struggling French IT company announced its restructuring plan details.
Nordex SE gained 2.5% to Є12.88 after the German wind turbine company won an order to supply 295 MW wind turbines to EDF Renewables in South Africa.
Siemens AG declined a fraction to Є173.68 after the German engineering company said its Supervisory Board extended the contract for President and Chief Executive Officer Roland Busch for five years, starting April 1, 2025.
Imperial Brands inched up 0.4% to 1,737.50 pence after the UK-based tobacco company reiterated its revenue and earnings outlook for fiscal 2024.
Mining companies advanced in London trading after the copper price in Shanghai traded at a record high on the expectation of rising demand for manufactured goods in developed economies and in China.
Anglo American, Antofagasta, and Glencore advanced between 1% and 2%.
BP plc increased 1.5% to 516.30 pence after the company said it anticipates strong performance in the first quarter.
HSBC Holdings gained 0.3% to 646.40 pence after the UK- and China-based bank said it plans to sell its banking operation in Argentina to Grupo Financiero Gallicia for about $550 million.
Asian Markets Advance, China's Inflation and International Trade Data In Spotlight
Li Chen
09 Apr, 2024
Hong Kong
Stocks in Asia generally advanced as investors shifted their focus to the start of the earnings season.
Market sentiment was positive in Asia, ahead of the release of key economic data in China.
In Asia, market indexes in Tokyo advanced 0.4%, Hong Kong advanced 0.6%, and Shanghai and Seoul declined 0.3%.
Tech Stocks Lead Japan Indexes Higher
Stocks in Tokyo rebounded for the second day in a row, led by a surge in tech stocks.
The yen approached the 152 mark against the U.S. dollar as nervous traders worried about government intervention in the currency market.
The yen has been hovering at a multi-year high after the Bank of Japan ended its negative rate policy after eight years and lifted interest rates for the first time since February 2007.
Policymakers were hoping that the yen would strengthen after the end of the negative rate regime on March 19, but the currency has continued to weaken.
The Nikkei 225 Stock Average jumped 0.9% to 39,713.49, and the Topix index advanced 0.8% to 2,750.40.
Among the most active tech stocks, SoftBank, Tokyo Electron, Advantest, Disco Corp., Renesas Electronics, and Shin-Etsu Chemical advanced between 1% and 3%.
Financial stocks also participated in the market rally.
Mitsubishi UFJ, Sumitomo Mitsui Financial, and Mizuho Financial advanced between 0.2% and 0.4%.
Cautious Trading in China Ahead of Inflation and Foreign Trade Data
Stocks in Shanghai and Hong Kong diverged, and investors looked forward to the release of inflation and foreign trade data later in the week.
Stocks in Shanghai remained under pressure ahead of the release of consumer price data on Wednesday, and investors are hoping prices edged higher by 0.4% in March, the second monthly increase in a row.
Moreover, investors are anticipating exports to decline between 1% and 2% in March, and trade surplus to expand.
China's exports in the January–February period rose 7.1% and imports rose 3.1% from a year ago, respectively, according to the customs agency.
The CSI 300 index decreased 0.3% to 3,526.63, and the Hang Seng Index advanced 0.8% to 16,861.38.
Net Ease increased 4.7% to HK$158.50, after the National Press and Publication Administration approved 15 foreign computer games for the Chinese market.
Electric vehicle makers advanced in the hopes of higher domestic and international sales in the second quarte.
Li Auto increased 2.2% to HK$123.40, BYD added 2.5% to $207.0, and Xiamo Corp. jumped 2.9% to HK$15.94.
Property stocks were in focus after Country Garden reported a sharp decline in sales in March.
Contracted sales in March plunged 83% to 4.3 billion yuan, and when measured by area, they dropped 85% to 450,000 square meters.
China Vanke, China Resources Land, and Henderson Land edged higher between 0.2% and 0.6%.
The Guangdong-based Country Garden's stock is suspended from trading on the Hong Kong Stock Exchange, as the company missed Thursday's deadline to file its annual report.
India Indexes Inch Higher in Record Zone Ahead of Earnings Season
Stocks in Mumbai edged higher in subdued trading, as the earnings season gained momentum.
The Sensex and the Nifty indexes struggled to advance in early trading as investors looked forward to the release of corporate earnings from tech services providers.
Stocks in Mumbai are struggling to advance in the second quarter ahead of the general election next month, and there are worries about high valuations in the small and mid-cap sectors.
Moreover, the recent rise in commodity and metal prices has rekindled the fear of resurgent inflation, negatively impacting vehicle sales.
Brent crude oil price decreased 1.6% to $89.70 a barrel, after tensions eased in the Middle East after negotiations between Israel and Hamas resumed in Egypt.
However, Israel stressed that its army is ready to launch a military strike in Rafah City, Gaza, if a settlement is not reached soon.
The Sensex index increased 0.5% to 74,635.23, and the Nifty index edged higher by 0.3% to 22,621.95.
On the Mumbai stock exchange, 266 stocks traded at their 52-week highs, and 12 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds inched higher to 7.15%, and the Indian rupee edged lower at ₹83.26 against the U.S. dollar.
Axis Bank rose 1.7% to ₹1,077.0 after the private equity firm Bain Capital plans to sell its remaining stake in the bank through a block trade in the price range between ₹1,071 and ₹1,076 per share.
Tata Motors increased 0.6% to ₹1,012.70 after the company's Jaguar Land Rover unit said vehicle sales in the March quarter increased 11% to 114,038.
For the fiscal year ending in March 2024, vehicle sales advanced 22% to 431,733 units.
Earnings Take Center Stage as Rate Cut Expectations Fade
Barry Adams
08 Apr, 2024
New York City
Stocks wavered on Wall Street, and Treasury yields edged higher for the second day in a row, as investors adjusted their rate-path expectations.
The S&P 500 index and the Nasdaq Composite edged slightly higher as investors awaited the start of the earnings season, with leading banks set to announce earnings.
Last week, market indexes closed on a positive note after nonfarm payrolls advanced, wages gained, and more people sought employment.
Investors weighed the positive impact of an expanding labor market on the U.S. economy, which will support higher corporate earnings despite interest rates staying higher for longer.
However, market enthusiasm was kept in check, after Treasury yields edged higher for the second session in a row.
This week, the U.S. Bureau of Labor Statistics is set to release the consumer price index on Wednesday, and the producer price index on Thursday.
The consumer price index for March is expected to increase at annual pace of 3.4% and advance 0.35% from the previous month, according to a poll of ten economists conducted by ticker.com.
The consumer price index advanced 3.2% in February, higher than most economists were looking for.
U.S. Indexes and Yields
The S&P 500 index increased 0.2% to 5,212.74, and the Nasdaq Composite rose 0.3% to 16,294.02.
The yield on 2-year Treasury notes edged higher to 4.78%, 10-year Treasury notes inched down to 4.42%, and 30-year Treasury bonds edged up to 4.54%.
WTI crude oil decreased $1.21 to $85.61 a barrel, and natural gas prices increased 8 cents to $1.82 a thermal unit.
Gold decreased by $2.95 to $2,327.49 an ounce, and silver rose 2 cents to $27.50.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 104.18.
U.S. Stock Movers
Tesla jumped 4% to $171.50 after the company's chief executive, Elon Musk, said the company is ready to release its robotaxi design on August 8.
Oil companies traded down after crude oil prices eased more than 1% following the easing of tensions in the Middle East.
Exxon Mobil, Chevron, Hess, and Marathon Oil declined around 0.6%.
Popular tech stocks also drifted lower in early trading.
Apple, Microsoft, Meta, Netflix, Amazon, Alphabet, and Amazon declined between 0.1% and 0.4%.
Semiconductor stocks drifted downward, and Intel, AMD, Nvidia, Broadcom, and Qualcomm declined around 0.2%.
European Markets Extend Gains
Stocks in Europe extended the previous week's gains, and investors reviewed the latest economic updates from Germany.
In cautious trading, investors bid up stocks in the hopes that the European Central Bank will hold rates steady later this week and provide an update on its rate path views.
Investors are hoping that the central bank is still on track to lower rates as early as June.
However, investor expectations may be dashed.
Crude oil prices have rebounded to a five-month high in the last two months, and service sector inflation is near 4% and shows no sign of easing after multiple rate hikes over the last two years.
German Industrial Output Increased In February
German industrial output rose monthly by 2.1% in February and accelerated from a 1.3% increase in January, Destatis reported Monday.
Industrial output, adjusted for seasonal and calendar factors, rose at the fastest pace since January 2023, after increase in activities in automotive, chemical, and construction industries.
The output increased in the automotive industry by 5.7%, in the chemical industry by 4.6%, and in the construction industry by 7.9%.
However, the decline in energy generation sector production by 6.5%, significantly negatively impacted the overall output.
The annual decline in industrial output softened to 4.9% from a decrease of 5.3% in January.
Seasonally and calendar-adjusted industrial production, excluding energy and construction, increased by 1.9% in February from the previous month but fell 5.5% from a year ago.
German Trade Surplus Shrank In February
Germany's trade surplus shrank from the previous month in February after imports rose and exports fell, Destatis reported Monday.
Adjusted for seasonal and calendar factors, exports in February decreased 2.2% to €132.9 billion and imports rose 3.2% to €111.5 billion from the previous month, respectively.
Germany's foreign trade was negatively impacted by elevated interest rates and rising macroeconomic uncertainty; however, lower energy prices supported the decline in overall imports.
Exports decreased by 4.4% and imports declined by 8.7% compared to the same month a year ago.
The trade balance shrank to €21.4 billion from €27.6 billion in January but rose from €16.9 billion in the corresponding month a year ago.
Exports to the European Union contracted 3.9% to €72.9 billion, and imports from the region decreased 5.7% to €57.5 billion.
Germany's three main trading partners outside the European Union showed mixed performance.
Exports to the U.S. increased by 10.2% from the previous month to €13.8 billion, but fell to China by 0.6% to €8 billion and to the U.K. by 2.0% to €6.6 billion. in the same period.
Imports from China surged 16% from the previous month to €12.1 billion; imports from the U.S. declined by 5.2% to €7.4 billion; and imports from the U.K. declined by 4.6% to €3.1 billion.
Europe Indexes and Yields
The DAX index increased by 0.8% to 18,318.97, the CAC-40 index rose by 0.7% to 8,119.30, and the FTSE 100 index inched higher by 0.4% to 7,943.47.
The yield on 10-year German bonds edged up to 2.44%; French bonds inched lower to 2.93%; the UK gilts edged higher to 4.14%; and Italian bonds inched higher to 3.80%.
The euro edged higher to $1.083, the British pound inched higher to $1.263, and the U.S. dollar edged higher to 90.57 Swiss cents.
Brent crude decreased $1.17 to $89.99. a barrel, and the Dutch TTF natural gas rose by €1.17 to €27.92 per MWh.
Europe Stock Movers
Mining companies in London traded higher after the price of copper in Shanghai jumped to a record on the expectation of a demand rebound and supply constraints.
Antofagasta, Anglo American, and Glencore rose between 1.2% and 1.6%.
Entain PLC rose 4.7% to 821.20 pence on speculation that private equity companies are looking to make a bid for the troubled online gambling and sports betting company.
Energy companies edged lower after the crude oil price declined more than 1% in London trading after tensions eased in the Middle East following the start of negotiations between Israel and Hamas in Egypt.
Asian Rebound Tracking Friday's Wall Street Gains
Asian markets attempted to rebound in Monday's trading following better-than-expected U.S. economic data on Friday.
For now, investors set aside the expectations of a U.S. rate cut as early as June and its likely impact on the world bond market.
Benchmark indexes in Japan, India, South Korea, and Australia advanced.
Gold miners in China and Australia traded higher after the bullion price soared to a new record high amid speculation about the U.S. rate path, elevated tensions in the Middle East, and persistent buying by the central banks, including the People's Bank of China.
The People's Bank of China lifted its declared gold holding for the 17th month in a row, according to the official figures released on Sunday.
The central bank increased its holding by 0.2% in March to 72.74 million troy ounces, the smallest monthly purchase since the latest buying spree began in November 2022.
Nikkei 225 Rebounds Tracking Friday's Wall Street Gains
Benchmark indexes in Japan advanced in Monday's trading and rebounded from a three-week low, tracking gains on Wall Street in Friday's trading.
The U.S. economy added more-than-expected 303,000 jobs in March, higher than 270,000 jobs in February, and at the fastest pace in ten months.
The Nikkei 225 Stock Average added 0.8% to 39,293.52, and the Topix index gained 0.7% to 2,723.59.
The yen hovered near 151.64 against the U.S. dollar as traders speculated on the timing and amount of government intervention in the currency market.
Tech and financial services stocks were among the leading gainers in Monday's trading.
SoftBank, Tokyo Electron, Advantest, Screen Holdings, and Disco Corp. gained between 1.4% and 3.2%.
Socionext jumped 6.1% to ¥4,896.0, and Fujitsu advanced 3.8% to ¥2,476.0.
Mitsubishi UFJ, Sumitomo Mitsui Financial, and Mizuho Financial gained around 1.5%.
China Stocks Struggle Ahead of Inflation and Trade Data
Benchmark indexes in Shanghai and Hong Kong struggled to hold morning gains as investors awaited the release of economic data later in the week.
China is scheduled to release its overall inflation data on Thursday and its international trade data on Friday.
In addition, this week, the People's Bank of China is also likely to provide information on money supply and new loan updates.
Stocks opened higher but quickly lost ground as foreign investors stayed on the sidelines.
U.S. Treasury Secretary Janet Yellen said talks with Chinese Premier Li Qiang were "extensive and productive" after the two met on Sunday.
Electric vehicle makers advanced after China's Commerce Minister Wang Wentao refuted the allegation of overcapacity and added that vehicle makers are not reliant on government subsidies.
Li Auto jumped 3.3% to HK$119.90, and BYD jumped 2.1% to HK$202.0.
The CSI 300 index decreased 0.5% to 3,551.93 and the Hang Seng index declined 0.1% to 16,709.68.
Zijin Mining Group advanced 1.7% to HK$17.06 after yellow metal's price soared to a record high of $2,339.35 an ounce in New York.
India Indexes Advance Amid Elevated Geopolitical Tension
Stocks in Mumbai opened higher after benchmark indexes extended the previous week's gains.
Crude oil edged lower in international trading but hovered near a five-month high amid the prospect of a wider war between Israel and Iran.
Israel withdrew its military from South Gaza and returned to negotiations with Hamas in Egypt amid rising international pressure.
About two weeks ago, Israel bombed Iran's embassy in Syria and killed seven people, including three military advisors.
Military experts in the region worry that Iran will conduct a retaliatory strike targeting Israeli embassies.
On Friday, the Reserve Bank of India held its repo rate at 6.5% and projected India's economy to expand at an annual pace of 7.0% in fiscal 2025.
However, the central bank did not provide clear indications on rate paths and inflation, citing elevated macroeconomic headwinds and global market uncertainty.
Moreover, investors worried about the spillover effects of the higher-for-longer U.S. interest rates after the latest data showed stronger-than-expected payroll growth and economic conditions.
This week, investors are looking ahead to the release of industrial output in March and overall inflation data in February.
On the earning front, Tata Consultancy Services is scheduled to release its March quarter earnings after the close of trading hours in Mumbai.
The Sensex index increased 0.5% to 74,635.23, and the Nifty index edged higher by 0.3% to 22,621.95.
On the Mumbai stock exchange, 151 stocks traded at their 52-week highs, and 4 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds inched higher to 7.12%, and the Indian rupee edged lower at ₹83.28 against the U.S. dollar.
U.S. Major Averages Looked Higher In Cautious Trading Ahead of Earnings Releases
Barry Adams
08 Apr, 2024
New York City
Benchmark indexes traded around the flatline in early trading on Monday, and investors remained positive ahead of the start of the earnings season.
The S&P 500 index and the Nasdaq Composite edged slightly higher as investors awaited the start of the earnings season, with leading banks set to announce earnings.
Last week, market indexes trimmed losses following the gains on Friday after nonfarm payrolls advanced, wages gained, and more people sought employment.
Investors weighed the positive impact of an expanding labor market on the U.S. economy, which will support higher corporate earnings despite interest rates staying higher for longer.
However, market enthusiasm was kept in check after Treasury yields edged higher.
This week, investors are looking ahead to the release of consumer price and producer price indexes.
The consumer price index for March is expected to increase at annual pace of 3.4% and advance 0.35% from the previous month, according to a poll of ten economists conducted by ticker.com.
U.S. Indexes and Yields
The S&P 500 index increased 0.2% to 5,212.74, and the Nasdaq Composite rose 0.3% to 16,294.02.
The yield on 2-year Treasury notes edged higher to 4.78%, 10-year Treasury notes inched down to 4.42%, and 30-year Treasury bonds edged up to 4.54%.
WTI crude oil decreased $1.21 to $85.61 a barrel, and natural gas prices increased 8 cents to $1.82 a thermal unit.
Gold decreased by $2.95 to $2,327.49 an ounce, and silver rose 2 cents to $27.50.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 104.18.
U.S. Stock Movers
Tesla jumped 4% to $171.50 after the company's chief executive, Elon Musk, said the company is ready to release its robotaxi design on August 8.
Oil companies traded down after crude oil prices eased more than 1% following the easing of tensions in the Middle East.
Exxon Mobil, Chevron, Hess, and Marathon Oil declined around 0.6%.
Popular tech stocks also drifted lower in early trading.
Apple, Microsoft, Meta, Netflix, Amazon, Alphabet, and Amazon declined between 0.1% and 0.4%.
Semiconductor stocks drifted downward, and Intel, AMD, Nvidia, Broadcom, and Qualcomm declined around 0.2%.
Europe Movers: German Automakers, Entain, Oil Stocks, UK Mining Companies
Inga Muller
08 Apr, 2024
Frankfurt
European markets extended the previous week's gains ahead of the European Central Bank's monetary policy decisions later this week.
The DAX index increased by 0.6% to 18,281.97, the CAC-40 index rose by 0.6% to 8,105.36, and the FTSE 100 index inched higher by 0.1% to 7,918.41.
The yield on 10-year German bonds edged up to 2.44%; French bonds inched lower to 2.93%; the UK gilts edged higher to 4.14%; and Italian bonds inched higher to 3.80%.
Mining companies in London traded higher after the price of copper in Shanghai jumped to a record on the expectation of a demand rebound and supply constraints.
Antofagasta, Anglo American, and Glencore rose between 1.2% and 1.6%.
Entain PLC rose 4.7% to 821.20 pence on speculation that private equity companies are looking to make a bid for the troubled online gambling and sports betting company.
Energy companies traded volatile after the crude oil price declined more than 1% in London trading after tensions eased in the Middle East following the start of negotiations between Israel and Hamas in Egypt.
BP plc gained 1% to 511.40 pence, Shell PLC added 1.1% to 2,808.0 pence, and TotalEnergies SE advanced 1.3% to €67.67.
German automakers advanced after the release of industrial output data.
Mercedes Benz gained 2.5% to €76.58, Volkswagen Group advanced 0.7% to €127.30, and BMW AG increased 1.5% to €114.20.
European Markets Advance, German Industrial Output Rebounds and Trade Surplus Shrinks
Bridgette Randall
08 Apr, 2024
Frankfurt
Stocks in Europe extended the previous week's gains, and investors reviewed the latest economic updates from Germany.
In cautious trading, investors bid up stocks in the hopes that the European Central Bank will hold rates steady later this week and provide an update on its rate path views.
Investors are hoping that the central bank is still on track to lower rates as early as June.
However, investor expectations may be dashed.
Crude oil prices have rebounded to a five-month high in the last two months, and service sector inflation is near 4% and shows no sign of easing after multiple rate hikes over the last two years.
German Industrial Output Increased In February
German industrial output rose monthly by 2.1% in February and accelerated from a 1.3% increase in January, Destatis reported Monday.
Industrial output, adjusted for seasonal and calendar factors, rose at the fastest pace since January 2023, after increase in activities in automotive, chemical, and construction industries.
The output increased in the automotive industry by 5.7%, in the chemical industry by 4.6%, and in the construction industry by 7.9%.
However, the decline in energy generation sector production by 6.5%, significantly negatively impacted the overall output.
The annual decline in industrial output softened to 4.9% from a decrease of 5.3% in January.
Seasonally and calendar-adjusted industrial production, excluding energy and construction, increased by 1.9% in February from the previous month but fell 5.5% from a year ago.
German Trade Surplus Shrank In February
Germany's trade surplus shrank from the previous month in February after imports rose and exports fell, Destatis reported Monday.
Adjusted for seasonal and calendar factors, exports in February decreased 2.2% to €132.9 billion and imports rose 3.2% to €111.5 billion from the previous month, respectively.
Germany's foreign trade was negatively impacted by elevated interest rates and rising macroeconomic uncertainty; however, lower energy prices supported the decline in overall imports.
Exports decreased by 4.4% and imports declined by 8.7% compared to the same month a year ago.
The trade balance shrank to €21.4 billion from €27.6 billion in January but rose from €16.9 billion in the corresponding month a year ago.
Exports to the European Union contracted 3.9% to €72.9 billion, and imports from the region decreased 5.7% to €57.5 billion.
Germany's three main trading partners outside the European Union showed mixed performance.
Exports to the U.S. increased by 10.2% from the previous month to €13.8 billion, but fell to China by 0.6% to €8 billion and to the U.K. by 2.0% to €6.6 billion. in the same period.
Imports from China surged 16% from the previous month to €12.1 billion; imports from the U.S. declined by 5.2% to €7.4 billion; and imports from the U.K. declined by 4.6% to €3.1 billion.
Europe Indexes and Yields
The DAX index increased by 0.6% to 18,281.97, the CAC-40 index rose by 0.6% to 8,105.36, and the FTSE 100 index inched higher by 0.1% to 7,918.41.
The yield on 10-year German bonds edged up to 2.44%; French bonds inched lower to 2.93%; the UK gilts edged higher to 4.14%; and Italian bonds inched higher to 3.80%.
The euro edged higher to $1.083, the British pound inched higher to $1.263, and the U.S. dollar edged higher to 90.57 Swiss cents.
Brent crude decreased $0.80 to $90.36. a barrel, and the Dutch TTF natural gas rose by €0.39 to €27.0 per MWh.
Europe Stock Movers
Mining companies in London traded higher after the price of copper in Shanghai jumped to a record on the expectation of a demand rebound and supply constraints.
Antofagasta, Anglo American, and Glencore rose between 1.2% and 1.6%.
Entain PLC rose 4.7% to 821.20 pence on speculation that private equity companies are looking to make a bid for the troubled online gambling and sports betting company.
Energy companies edged lower after the crude oil price declined more than 1% in London trading after tensions eased in the Middle East following the start of negotiations between Israel and Hamas in Egypt.