Market Update
U.S. Stock Movers: Cal-Maine, Dave & Buster's, Intel, Taiwan Semi, Tesla
Scott Peters
03 Apr, 2024
New York City
Intel declined 5.2% to $41.65 after the advanced semiconductor maker reported a wider loss in its foundry operation.
Operating losses in 2023 expanded to $7.0 billion from $5.2 billion in 2022, after sales in 2023 plunged to $18.9 billion from $27.5 billion in the previous year.
Dave & Buster's gained 6.3% to $65.80 after the company reported its latest quarterly results.
Revenue in the fiscal fourth quarter ending on February 4, which included the 14th week, rose 6.3% to $599.1 million, net income declined to $36.2 million from $39 million, and diluted earnings per share rose to 88 cents from 80 cents a year ago.
The 14th week in the fourth quarter, also the 53rd week in the fiscal year, contributed $39.5 million in revenue.
Cal-Maine jumped 5.6% to $62.46 after egg producers reported better-than-expected quarterly results.
Revenue in the fiscal third quarter ending on March 2 decreased to $703.1 million from $997.5 million, bet income plunged to $146.4 million from $322.7 million, and diluted earnings per share dropped to $3.0 from $6.62 a year ago.
The net average selling price per dozen of eggs declined to $2.24 from $3.30 a year ago.
Tesla declined 1.7% to $163.76 and extended its two-day loss to 10% after the electric vehicle maker reported unit sales declined 8.5% in the first quarter.
Fabless semiconductor companies traded down after a 7.3-magnitude earthquake hit Taiwan, forcing several semiconductor manufacturing companies to evacuate plants and close factories.
Taiwan Semiconductor decreased 0.3% to $139.85 after the largest semiconductor manufacturing company confirmed closing some operations earlier in the day.
Nvidia, Qualcomm, Arm Holdings, and Marvell, which rely on Taiwan Semiconductor for chip manufacturing, decreased by around 0.5% following the earthquake news.
U.S. Major Averages Rest, Investors Dial Down Rate Cut Expectations Amid Strong U.S. Economy
Barry Adams
03 Apr, 2024
New York City
Stocks on Wall Street struggled to advance, and major indexes traded sideways as investors debated the future rate path and interest rate levels.
The S&P 500 index and the Nasdaq Composite traded around flatline in early trading as investors dialed back rate-cut expectations amid stronger-than-expected manufacturing and jobs market data following a sticky inflation report in the previous week.
Despite eleven rate cuts over the last two years, inflation has moderated but stayed above the Fed's preferred target rate of 2%.
Moreover, policymakers may keep interest rates unrevised because of resilient economic conditions and a moderating but healthy labor market.
U.S. Treasury yields held steady and approached a five-month high after investors walked away from rate-cut expectations.
The private sector added more than expected jobs in March, according to the latest monthly update released by payroll processing firm ADP on Wednesday morning.
Companies expanded payrolls by 184,000 in March, faster than the revised 155,000 increase in February.
However, the ADP data series is highly volatile and subject to severe revisions.
U.S. Indexes and Yields
The S&P 500 index decreased 0.1% to 5,202.45, and the Nasdaq Composite fell 0.3% to 16,190.98.
The yield on 2-year Treasury notes hovered at 4.72%, 10-year Treasury notes inched up to 4.39%, and 30-year Treasury bonds edged up to 4.53%.
WTI crude oil increased $0.39 to $85.83 a barrel, and natural gas prices increased 2 cents to $1.87 a thermal unit.
Gold decreased by $12.24 to $2,268.60 an ounce, and silver rose 6 cents to $26.21.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 104.75.
U.S. Stock Movers
Intel declined 5.2% to $41.65 after the advanced semiconductor maker reported a wider loss in its foundry operation.
Operating loss in 2023 expanded to $7.0 billion from $5.2 billion in 2022, after sales in 2023 plunged to $18.9 billion from $27.5 billion in the previous year.
Dave & Buster's gained 6.3% to $65.80 after the company reported its latest quarterly results.
Revenue in the fiscal fourth quarter ending on February 4, which included the 14th week, rose 6.3% to $599.1 million, net income declined to $36.2 million from $39 million, and diluted earnings per share rose to 88 cents from 80 cents a year ago.
The 14th week in the fourth quarter, also the 53rd week in the fiscal year, contributed $39.5 million in revenue.
Cal-Maine jumped 5.6% to $62.46 after egg producers reported better-than-expected quarterly results.
Revenue in the fiscal third quarter ending on March 2 decreased to $703.1 million from $997.5 million, bet income plunged to $146.4 million from $322.7 million, and diluted earnings per share dropped to $3.0 from $6.62 a year ago.
The net average selling price per dozen of eggs declined to $2.24 from $3.30 a year ago.
Europe Movers: Lonza Group, Meyer Burger, Reinshaw, Swiss Re, Topps Tiles, Wizz Air
Inga Muller
03 Apr, 2024
Frankfurt
European stock market indexes flirted near record levels after overall inflation in the Euro Area unexpectedly eased in March.
The DAX index increased by 0.3% to 18,337.92, the CAC-40 index rose by 0.3% to 8,150.63, and the FTSE 100 index inched lower by 0.4% to 7,904.85.
The yield on 10-year German bonds edged down to 2.36%; French bonds inched higher to 2.89%; the UK gilts edged lower to 4.08%; and Italian bonds inched higher to 3.79%.
Lonza Group advanced 1.5% to CHF 540.20 before the Swiss chemical maker requested a trading halt before the pending announcement.
Swiss Re declined 2% to CHF 113.05 after the company appointed Andreas Berger as Group Chief Executive Office effective July 1.
Renishaw plc declined 3.3% to 4,205.0 pence after Siemens AG confirmed it has no plans to acquire the British engineering company.
Genmab A/S fell 1.8% to DKK 2,048.0 after the Danish biotech company announced the purchase of the privately held Profound Bio for $1.8 billion.
Wizz Air Holdings rose 0.6% to 2,132.0 pence after the discount carrier announced its March passenger traffic statistics.
In March 2024, Wizz Air carried 4,778,980 passengers, representing a 12.0% increase from a year ago at a load factor of 90.8%, impacted by home-bound traffic during the Easter holiday.
Over the twelve-month period to March, passenger traffic surged 21.4% to 62.0 million from 51.0 million in the similar period ending in March 2023.
Topps Tiles declined 3.9% to 42.30 pence after the UK-based tiles and supplies retailer reported lower half-year sales.
Sales in the first half ending in March declined 5.9% to £122 million, due to comparable sales in the second quarter falling 11.3%, driven by fewer customers and smaller sales volume.
The company also issued a profit warning, citing weak market conditions and subdued demand for renovation from individual customers.
"Group profitability in the first half of the year will be impacted by a number of factors, including the weaker market, the timing of the holiday pay accrual, and seasonally higher energy usage in the period.
We continue to expect the group's profits in 2024 to be weighted towards the second half as indicated in our Q1 trading update," the company highlighted in its statement to investors.
Meyer Burger Technology AG dropped 22% to CHF 0.016 after the Swiss solar panel maker said it completed its rights offering to raise additional capital.
Eurozone Inflation Slowed In March, Jobless Rate Dropped to a Record Low
Bridgette Randall
03 Apr, 2024
Frankfurt
European markets pared morning losses after eurozone inflation eased more than expected in March.
Benchmark indexes in Paris and Frankfurt inched closer to record territory, and the reference indexes in London struggled to gain traction.
Stocks rebounded after eurozone inflation unexpectedly eased in March, stoking speculation that policymakers may lower the rate as early as June.
Despite the easing of overall and core inflation in March, prices are still rising faster than the central bank's target rate of 2%, suggesting that it may be too soon for policymakers to lower the interest rate.
Moreover, crude oil prices rebounded to a five-month high due to the ongoing war in Ukraine, and persistent supply chain disruptions in the Red Sea.
Eurozone Inflation Slowed In March
Consumer price inflation in the eurozone eased to 2.4% in March from 2.6% in February, according to a preliminary report released by Eurostat.
Overall inflation dropped to a 28-month low and matched the level last seen in November.
The core rate of inflation, which excludes volatile energy and food prices, slowed to 2.9% from 3.1% in February.
Much of the decline in overall inflation was driven by the slowdown in price increases for goods, but service inflation held steady at 4.0%.
Energy price declines slowed to 1.8% from 3.7%, but food, tobacco, and alcohol inflation moderated to 2.7% from 3.9%, and non-energy industrial goods inflation slowed to 1.1% from 1.6% from the previous month, respectively.
On a monthly basis, inflation accelerated to an increase of 0.8% in March from a rise of 0.6% in February.
Euro Area Unemployment Held at Record Low 6.5%
The jobless rate in the Euro Area held firm at 6.5% in February, matching January's level, Eurostat reported Wednesday.
The number of people looking for jobs increased by 17,000 from January to 11.102 million; however, the jobless rate among those younger than 25 years was unchanged at 14.6%.
The number of unemployed declined by 30,000 from a year ago.
The youth jobless rate held steady for the fourth consecutive month, and about 2.319 people were looking for a job in the eurozone.
The unemployment rate across the eurozone varied sharply, and across the four major economies of the currency union, Spain led with 11.5%, followed by Italy with 7.5%, Italy with 7.4%, and Germany with 3.2%.
Europe Indexes and Yields
The DAX index increased by 0.3% to 18,337.92, the CAC-40 index rose by 0.3% to 8,150.63, and the FTSE 100 index inched lower by 0.4% to 7,904.85.
The yield on 10-year German bonds edged down to 2.36%; French bonds inched higher to 2.89%; the UK gilts edged lower to 4.08%; and Italian bonds inched higher to 3.79%.
The euro edged higher to $1.077, the British pound inched higher to $1.257, and the U.S. dollar held steady at 90.85 Swiss cents.
Brent crude increased $0.12 to $89.40. a barrel, and the Dutch TTF natural gas fell by €0.70 to €25.77 per MWh.
Europe Stock Movers
Lonza Group advanced 1.5% to CHF 540.20 before the Swiss chemical maker requested a trading halt before the pending announcement.
Swiss Re declined 2% to CHF 113.05 after the company appointed Andreas Berger as Group Chief Executive Office effective July 1.
Renishaw plc declined 3.3% to 4,205.0 pence after Siemens AG confirmed it has no plans to acquire the British engineering company.
Genmab A/S fell 1.8% to DKK 2,048.0 after the Danish biotech company announced the purchase of the privately held Profound Bio for $1.8 billion.
Wizz Air Holdings rose 0.6% to 2,132.0 pence after the discount carrier announced its March passenger traffic statistics.
In March 2024, Wizz Air carried 4,778,980 passengers, representing a 12.0% increase from a year ago at a load factor of 90.8%, impacted by home-bound traffic during the Easter holiday.
Over the twelve-month period to March, passenger traffic surged 21.4% to 62.0 million from 51.0 million in the similar period ending in March 2023.
Topps Tiles declined 3.9% to 42.30 pence after the UK-based tiles and supplies retailer reported lower half-year sales.
Sales in the first half ending in March declined 5.9% to £122 million, due to comparable sales in the second quarter falling 11.3%, driven by fewer customers and smaller sales volume.
The company also issued a profit warning, citing weak market conditions and subdued demand for renovation from individual customers.
"Group profitability in the first half of the year will be impacted by a number of factors, including the weaker market, the timing of the holiday pay accrual, and seasonally higher energy usage in the period.
We continue to expect the group's profits in 2024 to be weighted towards the second half as indicated in our Q1 trading update," the company highlighted in its statement to investors.
Meyer Burger Technology AG dropped 22% to CHF 0.016 after the Swiss solar panel maker said it completed its rights offering to raise additional capital.
Asian Markets Trade Lower, Taiwan Struck by Strongest Quake in 25 Years
Arjun Pandit
03 Apr, 2024
Mumbai
Market indexes in Japan, South Korea, and China dropped as much as 1% on the growing skepticism that the U.S. Federal Reserve would lower its rate in June after a string of economic data suggested stronger-than-expected economic activities.
Construction spending and manufactured goods orders rose sharply from a year ago in February, and job openings edged higher in March to 8.6 million, indicating moderate but healthy labor market conditions.
Taiwan Struck with 7.3 Magnitude Earthquake
Japan issued a tsunami alert after a 7.3-magnitude earthquake struck Taiwan and tremors felt as far away as Hong Kong.
Semiconductor plants evacuated plants in Taiwan after the earthquake struck the east coast of Taiwan at 7:58 local time on Wednesday, according to local authorities.
Taiwan Power Company confirmed that most of the power supply was restored within two hours of the earthquake.
The quake was the strongest to hit the island since 1999, when a 7.6-magnitude earthquake rocked the island and killed 2,400 people and damaged 50,000 structures in Taiwan's worst-recorded earthquakes.
Tokyo Indexes Turn Lower In Volatile Trading
Market indexes in Tokyo edged lower and dropped to a two-week low after investors dialed back U.S. rate-cut expectations.
Market sentiment was dented after the latest U.S. jobs report showed strong labor demand and resilient economic conditions.
Moreover, investors were on guard after Japan issued a tsunami alert for Okinawa Prefecture after Taiwan was struck by a 7.3-magnitude earthquake, killing at least 4 and injuring 97.
Japan's service index was revised lower to a seven-month high of 54.1 in March from the preliminary estimate of 54.9.
Despite the downward revision, service sector activities have been expanding for 19 consecutive months due to improving demand and an expanding customer base.
The Nikkei 225 index decreased 0.6% to 39,621.99, and the Topix index eased 0.01% to 2,715.70.
Rate-sensitive stocks and technology stocks were among the leading gainers amid weak market conditions in Tokyo trading.
Mitsubishi UFJ, Mizuho Group, and Sumitomo Mitsui gained between 0.3% and 2.2%.
Tokyo Electron, Screen Holdings, and Advantest gained between 0.4% and 1.6%, but SoftBank eased 1.3%.
Kansai Electric Power, Tokyo Gas, and Chubu Electric Power advanced between 2% and 4%.
Shanghai and Hong Kong Indexes Ease
Stocks in Shanghai and Hong Kong fell after strong U.S. economic data pushed U.S. bond yields to a three-month high, sparking global risk-off sentiment.
The market sentiment was overwhelmed by the global sell-off, and investors overlooked the improving service activities in China.
China's service activities rose at the fastest pace in three months, according to a private survey released by S&P Global.
The increase in service activities was driven by the rise in new orders and exports, which rose at the fastest pace in nine months amid improvements in demand conditions and new business development activities.
The Caixin China General Service PMI Index improved to 52.7 in March from a three-month low of 52.5 in February, and the index showed rising activities for the 15th month in a row.
Markets in Shanghai and Hong Kong have been on the defensive after the government intervention in February failed to spark a sustained recovery in financial markets.
The CSI 300 index declined 0.3% to 3,570.78, and the Hang Seng index dropped 0.7% to 16,806.29.
Alibaba Group declined 0.3% to HK$70.80 and erased an early gain of as much as 1.2% after the company confirmed the repurchase of $4.8 billion of its own stock in the first quarter.
Interest-rate-sensitive stocks and banks were among the leading decliners.
Bank of China declined 1.3% to HK$3.25, HSBC Holdings plc dropped 1.1% to $61.25, and China Construction Bank eased 0.2% to HK$4.84.
Xiaomi Corp. decreased 3.1% to HK$15.78 and erased about 9% of the gain in the previous session after the smartphone maker launched its first electric vehicle.
India Indexes Under Pressure Amid Rising Commodity Prices and Rate Uncertainties
Stocks in Mumbai struggled to advance in Wednesday's trading amid weakness in Asian markets.
The Sensex and the Nifty indexes edged down, and gold traded at a new record high amid rising tensions in the Middle East.
Moreover, crude oil prices in international markets traded at a 5-month high after Brent crude oil crossed $85 a barrel.
Investors remained cautious ahead of the start of the earnings season, and tech service companies are expected to report muted earnings growth.
Higher commodity prices in international markets also weighed on market sentiment, as rising tensions in the Middle East and Red Sea and the protracted war in Ukraine added to supply chain disruption worries and global interest rate uncertainty.
The Sensex index decreased 0.2% to 73,757.23, and the Nifty index edged down 0.3% to 22,385.70.
The yield on the 10-year Indian government bonds held steady at 7.10%, and the Indian rupee held steady at ₹83.35 against the U.S. dollar.
India Movers: Anupam Rasayn, Ashiana Housing, DroneAcharya, HCL Tech, JSW Energy, NALCO, Olectra, UltraTech
Arun Goswami
03 Apr, 2024
Mumbai
Stocks in Mumbai faced headwinds in early trading on the worry of resurgent inflation after metal prices advanced and crude oil prices traded at a five-month high.
The Sensex index decreased 0.2% to 73,757.23, and the Nifty index edged down 0.3% to 22,385.70.
On the Mumbai stock exchange, 33 stocks traded at their 52-week highs and 3 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds held steady at 7.10%, and the Indian rupee held steady at ₹83.35 against the U.S. dollar.
UltraTech Cement rose 1% to ₹10,057.0, and the company reiterated its plans to increase its annual cement production capacity to 200 million tons.
The company also said it plans to invest ₹32,400 crore over the next three years to achieve its production goals.
JSW Energy rose 4.3% to ₹542.0, and the company's board approved an institutional equity offering to raise as much as ₹5,000 crore with a floor price of ₹510.09 per share.
HCL Technologies declined 1.6% to ₹1,531.95 after the company agreed to sell its 49% stake in a joint venture with the U.S.-based State Street for $172.5 million.
DroneAcharya Aerial Innovation gained 6.8% to ₹150.55 after the company received an order worth ₹4.7 crore for geographical information processing from a UK-based company.
Anupam Rasayan gained 0.5% to ₹884.60 after the company signed an agreement with a leading Japanese company to supply two intermediate chemicals using fluorination technology.
The $90 million, or ₹713 crore, contract spans seven years.
Olectra Greentech increased 0.1% to ₹1,916.95 after the company extended its contract with the China-based BYD Auto Industry for manufacturing and maintaining electric buses till the end of 2030.
National Aluminium Co. or Nalco gained 2.5% to ₹170.40 after the company reported record cast metal production and sales and record bauxite excavation in the fiscal year 2024 ending in March.
The aluminium production rose to 0.46 million tons and sale increased to 0.47 million tons and bauxite excavation increased to 7.6 million tons.
Ashiana Housing advanced 2.4% to ₹309.10 after the company announced the sale of all 224 residential units located in Gurugram, Haryana valued at ₹440.3 crore.
Investors Adjust Rate Cut Expectations, S&P 500 Down 1%
Barry Adams
02 Apr, 2024
New York City
U.S. benchmark indexes extended losses to the second day in a row, and yields on Treasury notes approached three-month highs after a string of data points highlighted a resilient economy.
The S&P 500 index and the Nasdaq Composite fell more than 1%, and the yield on 10-year Treasury notes advanced to a three-month high of 4.39%.
Manufactured goods orders surged more than 7% from a year ago, following the rise of construction spending by 10.7%.
Moreover, job openings edged slightly higher, and hirings and separations were stable for the third month in a row in February.
Investors are scaling back expectations of interest rate cuts as early as June after the personal consumption expenditures price index eased but stayed sharply higher than the Fed's 2% target rate.
Total construction activities, private and public, in February also rose more than expected from a year ago, monthly update from the U.S. Census Bureau showed on Monday.
New orders for manufactured goods in February rose following two consecutive monthly declines, increasing 1.4% monthly to $576.8 billion, the U.S. Census Bureau reported Tuesday.
This followed a monthly 3.8% decrease in January.
New orders for all manufactured goods rose 7.5% from a year ago, indicating strong demand for goods.
Shipments, following two consecutive months of decline, rose 1.4% from the previous month to $581.6 billion and advanced 7.1% from a year ago.
U.S. Indexes and Yields
The S&P 500 index decreased 0.9% to 5,198.17, and the Nasdaq Composite fell 1.1% to 16,219.45.
The yield on 2-year Treasury notes increased to 4.73%, 10-year Treasury notes inched up to 4.39%, and 30-year Treasury bonds edged up to 4.53%.
WTI crude oil increased $0.86 to $84.75 a barrel, and natural gas prices increased 4 cents to $1.87 a thermal unit.
Gold jumped to a record high on the hopes that the U.S. Federal Reserve is more likely to lower interest rates after the release of the weaker-than-expected PCE Price Index.
Moreover, elevated geopolitical tensions in the Middle East and the ongoing war in Ukraine contributed to market anxieties.
Gold increased by $10.60 to $2,261.11 an ounce, and silver rose 72 cents to $25.82.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 104.79.
U.S. Stock Movers
Health insurance stocks fell sharply after the Centers for Medicare and Medicaid Services finalized its capitation rates to 3.7% for financial year 2025, matching the rate in financial year 2024.
Humana dropped 10.9% to $313.0, CVS Health fell 6.5% to $74.49, UnitedHealth Group declined 4.3% to $468.54, and Cigna Group eased 1.9% to $357.32 on the worry that operating margin will remain under pressure.
Payments from the government to Medicare Advantage plans are expected to increase on average by 3.70%, or over $16 billion, from 2024 to 2025.
The federal government is projected to pay between $500 and $600 billion in Medicare Advantage payments to private health plans in 2025.
PVH Corp. plunged 22% to $108.40 after the apparel maker and the parent company of popular brands Tommy Hilfiger and Calvin Klein offered a weak full-year outlook, citing weak macroeconomic conditions in Europe.
General Electric Co. dropped 20% to $139.91 after the diversified conglomerate completed its three-way breakup, and its aerospace and energy business is scheduled to trade as a separate company starting Tuesday.
Canoo Inc. plunged 30% to $2.68 after the management highlighted "substantial doubt" about the company's ability to continue as a going concern.
Trump Media & Technology Group declined 1% to $48.16 and extended a two-day loss to more than 22% after the company reported a sharply higher quarterly loss in its latest quarter a day ago.
Tesla declined 6.7% to $163.65 after the electric vehicle maker reported sharply lower deliveries in the first quarter.
Tesla deliveries in the first quarter declined to 386,810 units from 412,376 units a year ago, and production eased to 433,371 units from 440.808 units a year ago.
European Markets Drop 1% Tracking Losses in New York
European market indexes struggled to advance, bond yields edged higher, and the euro held steady in Tuesday's trading.
Market sentiment was cautiously optimistic as investors reviewed mixed updates on factory activities in the eurozone, the U.K., Spain, Italy, and Holland.
Benchmark indexes in Paris, Frankfurt, and London hovered near recent record highs as investors debated future interest rate paths amid a weak macroeconomic backdrop and a moderating but elevated inflation level.
Crude oil prices advanced to a five-month high, stoking fears that higher energy prices may fuel another bout of inflation, supporting the case for higher-for-longer interest rates.
In the afternoon trading, benchmark indexes dropped more than 1% tracking losses in New York on the worry that the Federal Reserve is more likely to delay its rate cut following the recent string of positive economic data.
UK Home Price Annual Change Accelerate In March
The UK home price unexpectedly declined in March from the previous month, according to the latest update released by the Nationwide Building Society.
The Nationwide Building Society's house price index decreased 0.2% from the previous month in March, after rising 0.7% in February.
The home price index increased 1.6% from a year ago, faster than 1.2% rise in February, and the average home price increased to £261,142 from £260,420 in the previous month.
Euro Area Inflation Expectations Moderate
The consumer expectations of inflation in the Euro Area moderated in February, according to the latest survey released by the European Central Bank.
Median expectations of inflation over the next 12 months eased to 3.1% in February from 3.3% in January, the survey showed.
The inflation expectations dropped to the lowest since the start of the Ukraine war; however, the three-year forward inflation outlook was unchanged at 2.5%.
However, consumers anticipated home prices to advance at a slightly faster pace of 2.4% from 2.2% in January, but mortgage rate expectations were unchanged at 5.1%.
Unemployment rate expectations over the next 12 months stayed the same at 10.9%, and economic growth over the same period was unchanged at -1.1%.
Consumers were slightly more optimistic about nominal income growth expectations, with an increase of 1.4% compared to the previous expectation of 1.2% in January, but nominal spending growth expectations were stable at 3.7%.
Europe Indexes and Yields
The DAX index decreased by 1.1% to 18,283.13, the CAC-40 index fell by 0.9% to 8,130.05, and the FTSE 100 index inched lower by 0.2% to 7,935.09.
The yield on 10-year German bonds edged up to 2.39%; French bonds inched higher to 2.89%; the UK gilts edged higher to 4.09%; and Italian bonds inched lower to 3.76%.
The euro edged higher to $1.076, the British pound inched higher to $1.256, and the U.S. dollar held steady at 90.84 Swiss cents.
Brent crude increased $0.73 to $88.37. a barrel, and the Dutch TTF natural gas fell by €0.88 to €26.47 per MWh.
Europe Stock Movers
Rheinmetall AG jumped 2.2% to €533.40 after the German automotive products and arms maker won an order worth 135 million from the military contractor KNDS Group.
UBS Group advanced 0.5% to CHF 27.89 after the Swiss bank launched a new stock repurchase program of up to $2 billion.
Metals and mining companies advanced after manufacturing activities expanded at a faster pace in the U.S. and China.
Antofagasta, Anglo America, and Glencore gained between 1% and 2.5%.
BP plc and Shell PLC jumped 2.9% after Brent crude oil prices approached a five-month high of $89 a barrel on the expectation of rising demand in China and falling inventories in the U.S.
Persimmon declined 1.9% to 1,290.50 pence, and Taylor Wimpey decreased 1,290.50 pence after the home price index unexpectedly fell in March after higher mortgage rates dented demand.
CTS Eventim increased 0.5% to €82.95 after the German festival ticketing company signed a put option agreement to acquire Vivendi's festival and ticketing operation outside of France for an undisclosed amount.
See Tickets, owned by Vivendi, sold about 44 million tickets in 2023 for trade shows, sports events, concerts, and other consumer and business events in the U.S., Belgium,
Vivendi's ticketing business generated about €105 million of the total of €137 million through its broader festival operations, with U.S. and UK revenues accounting for the majority of the share.
Asian Markets Turn Lower Amid Rate Uncertainties
Asian markets rebounded; the Nikkei index in Tokyo soared more than 1.5% but erased most of the gains; and market indexes in Shanghai struggled to gain traction.
The Hang Seng index in Hong Kong advanced 2.4% after investors returned from a long weekend and reacted to an improving economic manufacturing activity report released over the weekend.
However, market indexes in South Korea and Australia closed mixed amid interest rate uncertainties.
Japan Indexes Erase Early Gains in Choppy Trading
Stocks in Japan attempted to rebound in Tuesday's trading in cautious trading after the U.S. manufacturing survey showed stronger-than-expected activities in March.
Moreover, investors also turned cautious a day after the release of data on business confidence among large manufacturing companies and the persistent weakness in factory activities for the tenth month in a row.
In other economic news, the monetary base in Japan increased by 1.6% from a year ago in March to 666,240 trillion yen, the Bank of Japan said on Tuesday.
The monetary base data for February was revised higher to 2.4% from the previous estimate of 2.1%, and the seasonally adjusted monetary base rose 3.6%.
The Nikkei 225 index rose 0.1% to 39,837.47, and the Topix index fell 0.2% to 2,714.93.
Large manufacturing companies traded lower on the prospect of higher labor costs, but tech companies continued to extend this year's gains.
Tokyo Electron, SoftBank, Screen Holdings, and Disco Corp. gained between 1% and 3%.
Sumco Corp., Ebara Corp., and Rrenesas Electronics gained between 2% and 4%.
Toyota Motor, Honda Motor, Nissan Motor, and Subaru declined between 1% and 4%.
Nippon Steel advanced 2% to ¥3,689.0 as the company made its final push to acquire U.S. Steel for $14.1 billion.
Hong Kong Stocks Rebound, Shanghai Stocks Struggle Near Flatline
Stocks in Shanghai lacked direction, but benchmark indexes in Hong Kong advanced after investors reacted positively to the rising factory activity data released over the weekend.
China's manufacturing purchasing managers' index increased to 50.8 in March from 49.1 in February, the National Bureau of Statistics reported on Sunday.
Moreover, investors hoped that foreign investors would continue to purchase Chinese stocks following the net inflows in February and March.
The Hang Seng index declined nearly 3% in the first quarter and extended four-year losses on the protracted property market slump, weak consumer and investor confidence, and the government's prioritizing of national security over the economy, targeting foreign firms.
The CSI 300 index decreased 0.5% to 3,576.11, but the Hang Seng index rose 2.2% to 16,912.34.
Bank of China, China Merchant Bank, ICBC, and Agriculture Bank of China advanced between 1% and 4% in Hong Kong trading.
Xiaomi Corp. soared 10.4% to HK$16.48 after the smart phone maker reported strong demand for its electric vehicle released last week.
India Stocks Look Down, Rupee Holds Firm Near Record Low
Stocks lacked direction in Mumbai trading, and investors awaited interest rate decisions from the Reserve Bank of India on Friday.
The Sensex and the Nifty indexes traded around the flatline as investors debated future rate paths and domestic macroeconomic conditions.
The yield on 5-year Indian government bonds held stable, and the Indian rupee traded near record lows after the U.S. dollar edged higher against major international currencies.
The Sensex index increased 0.04% to 74,044.45, and the Nifty index edged up 0.2% to 22,490.05.
On the Mumbai stock exchange, 68 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 held steady at 7.05%, and the Indian rupee held steady at ₹83.35 against the U.S. dollar.
Job Openings, Hires, and Separations Changed Little In February
Brian Turner
02 Apr, 2024
New York City
The number of job openings, hires, and separations were a little unchanged for the third month in a row.
Job openings at the end of the last business day of February rose by 8.000 to 8.8 million, the U.S. Bureau of Labor Statistics reported Tuesday.
Total hires in the month were 5.8 million and separations were 5.6 million; both activities were little changed from the previous month.
Job Openings
The number of job openings is down from a series high of 12.2 million in March 2022, after post-pandemic demand drove demand for new staff.
The rate was 5.3% for the third month in a row.
In February, job openings increased in finance and insurance by 126,000; state and local government, excluding education, by 91,000; and arts, entertainment, and recreation by 51,000.
Job openings decreased in information by 85,000 and in federal government by 21,000.
Job Separations
The number of total separations in February changed little, at 5.6 million, and the rate was unchanged at 3.5%.
Over the month, the number of total separations increased in arts, entertainment, and recreation by 64,000 but decreased in transportation, warehousing, and utilities by 62,000.
In February, the number of quits was little changed at 3.5 million, and the rate was 2.2% for the fourth consecutive month.
In February, the number and rate of layoffs and discharges changed little, at 1.7 million and 1.1%, respectively.
The number of layoffs and discharges increased in accommodation and food services by 67,000 and in arts, entertainment, and recreation by 57,000.
U.S. Movers: Cigna, General Electric, Humana, PVH, UnitedHealth, Tesla
Scott Peters
02 Apr, 2024
New York City
Stocks on Wall Street headed lower, and the tech-heavy Nasdaq Composite index declined more than 1%.
Health insurance stocks fell sharply after the Centers for Medicare and Medicaid Services proposed a lower than expected rate increase in the financial year 2025.
The S&P 500 index decreased 0.8% to 5,200.07, and the Nasdaq Composite fell 1.2% to 16,198.84.
The yield on 2-year Treasury notes increased to 4.73%, 10-year Treasury notes inched up to 4.39%, and 30-year Treasury bonds edged up to 4.53%.
WTI crude oil increased $1.12 to $85.01 a barrel, and natural gas prices decreased 4 cents to $1.78 a thermal unit.
Health insurance stocks fell sharply after the Centers for Medicare and Medicaid Services finalized its capitation rates to 3.7% for financial year 2025, matching the rate in financial year 2024.
Humana dropped 10.9% to $313.0, CVS Health fell 6.5% to $74.49, UnitedHealth Group declined 4.3% to $468.54, and Cigna Group eased 1.9% to $357.32 on the worry that operating margin will remain under pressure.
Payments from the government to Medicare Advantage plans are expected to increase on average by 3.70%, or over $16 billion, from 2024 to 2025.
The federal government is projected to pay between $500 and $600 billion in Medicare Advantage payments to private health plans in 2025.
PVH Corp. plunged 22% to $108.40 after the apparel maker and the parent company of popular brands Tommy Hilfiger and Calvin Klein offered a weak full-year outlook, citing weak macroeconomic conditions in Europe.
General Electric Co. dropped 20% to $139.91 after the diversified conglomerate completed its three-way breakup, and its energy business, GE Vernova, is scheduled to trade as a separate company starting Tuesday.
General Electric spun off its medical devices business, GE Healthcare, in 2023.
The industrial conglomerate's ill-focused expansion in financial services, powered by financial leverage, forced the company's breakup years later.
Canoo Inc. plunged 30% to $2.68 after the management highlighted "substantial doubt" about the company's ability to continue as a going concern.
Trump Media & Technology Group declined 1% to $48.16 and extended a two-day loss to more than 22% after the company reported a sharply higher quarterly loss in its latest quarter a day ago.
Tesla declined 6.7% to $163.65 after the electric vehicle maker reported sharply lower deliveries in the first quarter.
Tesla deliveries in the first quarter declined to 386,810 units from 412,376 units a year ago, and production eased to 433,371 units from 440.808 units a year ago.
U.S. Stocks Extend Two-day Losses, Tesla Drops 6%
Barry Adams
02 Apr, 2024
New York City
U.S. stocks declined for the second day in a row, and yields on Treasury notes approached three-month highs after a string of data points highlighted a resilient economy.
The S&P 500 index and the Nasdaq Composite fell close to 1%, and the yield on 10-year Treasury notes advanced to a three-month high of 4.39%.
Investors are scaling back expectations of interest rate cuts as early as June after the personal consumption expenditures price index eased but stayed sharply higher than the Fed's 2% target rate.
Moreover, a private survey showed manufacturing activities were ahead of the market's expectations in March.
Total construction activities, private and public, in February also rose more than expected from a year ago, indicating resilient economic conditions.
Investors are also awaiting the release of the JOLT job openings report and the factory orders report later in the day.
U.S. Indexes and Yields
The S&P 500 index decreased 0.8% to 5,200.07, and the Nasdaq Composite fell 1.2% to 16,198.84.
The yield on 2-year Treasury notes increased to 4.73%, 10-year Treasury notes inched up to 4.39%, and 30-year Treasury bonds edged up to 4.53%.
WTI crude oil increased $1.12 to $85.01 a barrel, and natural gas prices decreased 4 cents to $1.78 a thermal unit.
Gold jumped to a record high on the hopes that the U.S. Federal Reserve is more likely to lower interest rates after the release of the weaker-than-expected PCE Price Index.
Moreover, elevated geopolitical tensions in the Middle East and the ongoing war in Ukraine contributed to market anxieties.
Gold increased by $6.41 to $2,256.04 an ounce, and silver rose 4 cents to $25.01.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 104.93.
U.S. Stock Movers
Health insurance stocks fell sharply after the Centers for Medicare and Medicaid Services finalized its capitation rates to 3.7% for financial year 2025, matching the rate in financial year 2024.
Humana dropped 10.9% to $313.0, CVS Health fell 6.5% to $74.49, UnitedHealth Group declined 4.3% to $468.54, and Cigna Group eased 1.9% to $357.32 on the worry that operating margin will remain under pressure.
Payments from the government to Medicare Advantage plans are expected to increase on average by 3.70%, or over $16 billion, from 2024 to 2025.
The federal government is projected to pay between $500 and $600 billion in Medicare Advantage payments to private health plans in 2025.
PVH Corp. plunged 22% to $108.40 after the apparel maker and the parent company of popular brands Tommy Hilfiger and Calvin Klein offered a weak full-year outlook, citing weak macroeconomic conditions in Europe.
General Electric Co. dropped 20% to $139.91 after the diversified conglomerate completed its three-way breakup, and its aerospace and energy business is scheduled to trade as a separate company starting Tuesday.
Canoo Inc. plunged 30% to $2.68 after the management highlighted "substantial doubt" about the company's ability to continue as a going concern.
Trump Media & Technology Group declined 1% to $48.16 and extended a two-day loss to more than 22% after the company reported a sharply higher quarterly loss in its latest quarter a day ago.
Tesla declined 6.7% to $163.65 after the electric vehicle maker reported sharply lower deliveries in the first quarter.
Tesla deliveries in the first quarter declined to 386,810 units from 412,376 units a year ago, and production eased to 433,371 units from 440.808 units a year ago.
Europe Movers: CTS Eventim, Rheinmetall, Resource Stocks, UBS Group, UK Home Builders
Inga Muller
02 Apr, 2024
Frankfurt
European markets struggled to advance after a four-day holiday weekend, and bond yields edged higher.
The DAX index decreased by 0.1% to 18,480.81, the CAC-40 index rose by 0.2% to 8,218.86, and the FTSE 100 index inched higher by 0.3% to 7,973.30.
The yield on 10-year German bonds edged up to 2.39%; French bonds inched higher to 2.89%; the UK gilts edged higher to 4.09%; and Italian bonds inched lower to 3.76%.
Rheinmetall AG jumped 2.2% to €533.40 after the German automotive products and arms maker won an order worth 135 million from the military contractor KNDS Group.
UBS Group advanced 0.5% to CHF 27.89 after the Swiss bank launched a new stock repurchase program of up to $2 billion.
Metals and mining companies advanced after manufacturing activities expanded at a faster pace in the U.S. and China.
Antofagasta, Anglo America, and Glencore gained between 1% and 2.5%.
BP plc and Shell PLC jumped 2.9% after Brent crude oil prices approached a five-month high of $89 a barrel on the expectation of rising demand in China and falling inventories in the U.S.
Home builders in the U.K. edged lower on the worry that rising home prices may dent demand in the months ahead.
Persimmon declined 1.9% to 1,290.50 pence, and Taylor Wimpey decreased 1,290.50 pence after the home price index unexpectedly fell in March after higher mortgage rates dented demand.
CTS Eventim increased 0.5% to €82.95 after the German festival ticketing company signed a put option agreement to acquire Vivendi's festival and ticketing operation outside of France for an undisclosed amount.
See Tickets, owned by Vivendi, sold about 44 million tickets in 2023 for trade shows, sports events, concerts, and other consumer and business events in the U.S., Belgium,
Vivendi's ticketing business generated about €105 million of the total of €137 million through its broader festival operations, with U.S. and UK revenues accounting for the majority of the share.
Eurozone Inflation Expectations Moderate, UK Home Price Gain Accelerates In March
Bridgette Randall
02 Apr, 2024
Frankfurt
European market indexes struggled to advance, bond yields edged higher, and the euro held steady in Tuesday's trading.
Market sentiment was cautiously optimistic as investors reviewed mixed updates on factory activities in the eurozone, the U.K., Spain, Italy, and Holland.
Benchmark indexes in Paris, Frankfurt, and London hovered near recent record highs as investors debated future interest rate paths amid a weak macroeconomic backdrop and a moderating but elevated inflation level.
Crude oil prices advanced to a five-month high, stoking fears that higher energy prices may fuel another bout of inflation, supporting the case for higher-for-longer interest rates.
UK Home Price Annual Change Accelerate In March
The UK home price unexpectedly declined in March from the previous month, according to the latest update released by the Nationwide Building Society.
The Nationwide Building Society's house price index decreased 0.2% from the previous month in March, after rising 0.7% in February.
The home price index increased 1.6% from a year ago, faster than 1.2% rise in February, and the average home price increased to £261,142 from £260,420 in the previous month.
Euro Area Inflation Expectations Moderate
The consumer expectations of inflation in the Euro Area moderated in February, according to the latest survey released by the European Central Bank.
Median expectations of inflation over the next 12 months eased to 3.1% in February from 3.3% in January, the survey showed.
The inflation expectations dropped to the lowest since the start of the Ukraine war; however, the three-year forward inflation outlook was unchanged at 2.5%.
However, consumers anticipated home prices to advance at a slightly faster pace of 2.4% from 2.2% in January, but mortgage rate expectations were unchanged at 5.1%.
Unemployment rate expectations over the next 12 months stayed the same at 10.9%, and economic growth over the same period was unchanged at -1.1%.
Consumers were slightly more optimistic about nominal income growth expectations, with an increase of 1.4% compared to the previous expectation of 1.2% in January, but nominal spending growth expectations were stable at 3.7%.
Europe Indexes and Yields
The DAX index decreased by 0.1% to 18,480.81, the CAC-40 index rose by 0.2% to 8,218.86, and the FTSE 100 index inched higher by 0.3% to 7,973.30.
The yield on 10-year German bonds edged up to 2.39%; French bonds inched higher to 2.89%; the UK gilts edged higher to 4.09%; and Italian bonds inched lower to 3.76%.
The euro edged higher to $1.076, the British pound inched higher to $1.256, and the U.S. dollar held steady at 90.84 Swiss cents.
Brent crude increased $1.21 to $88.92. a barrel, and the Dutch TTF natural gas fell by €0.35 to €26.98 per MWh.
Europe Stock Movers
Rheinmetall AG jumped 2.2% to €533.40 after the German automotive products and arms maker won an order worth 135 million from the military contractor KNDS Group.
UBS Group advanced 0.5% to CHF 27.89 after the Swiss bank launched a new stock repurchase program of up to $2 billion.
Metals and mining companies advanced after manufacturing activities expanded at a faster pace in the U.S. and China.
Antofagasta, Anglo America, and Glencore gained between 1% and 2.5%.
BP plc and Shell PLC jumped 2.9% after Brent crude oil prices approached a five-month high of $89 a barrel on the expectation of rising demand in China and falling inventories in the U.S.
Persimmon declined 1.9% to 1,290.50 pence, and Taylor Wimpey decreased 1,290.50 pence after the home price index unexpectedly fell in March after higher mortgage rates dented demand.
CTS Eventim increased 0.5% to €82.95 after the German festival ticketing company signed a put option agreement to acquire Vivendi's festival and ticketing operation outside of France for an undisclosed amount.
See Tickets, owned by Vivendi, sold about 44 million tickets in 2023 for trade shows, sports events, concerts, and other consumer and business events in the U.S., Belgium,
Vivendi's ticketing business generated about €105 million of the total of €137 million through its broader festival operations, with U.S. and UK revenues accounting for the majority of the share.
Asian Markets Turn Lower Amid Interest Rate Uncertainties and Rising Geopolitical Tensions
Akira Ito
02 Apr, 2024
Tokyo
Asian markets rebounded; the Nikkei index in Tokyo soared more than 1.5% but erased most of the gains; and market indexes in Shanghai struggled to gain traction.
The Hang Seng index in Hong Kong advanced 2.4% after investors returned from a long weekend and reacted to an improving economic manufacturing activity report released over the weekend.
However, market indexes in South Korea and Australia closed mixed amid interest rate uncertainties.
Japan Indexes Erase Early Gains in Choppy Trading
Stocks in Japan attempted to rebound in Tuesday's trading in cautious trading after the U.S. manufacturing survey showed stronger-than-expected activities in March.
Moreover, investors also turned cautious a day after the release of data on business confidence among large manufacturing companies and the persistent weakness in factory activities for the tenth month in a row.
In other economic news, the monetary base in Japan increased by 1.6% from a year ago in March to 666,240 trillion yen, the Bank of Japan said on Tuesday.
The monetary base data for February was revised higher to 2.4% from the previous estimate of 2.1%, and the seasonally adjusted monetary base rose 3.6%.
The Nikkei 225 index rose 0.1% to 39,837.47, and the Topix index fell 0.2% to 2,714.93.
Large manufacturing companies traded lower on the prospect of higher labor costs, but tech companies continued to extend this year's gains.
Tokyo Electron, SoftBank, Screen Holdings, and Disco Corp. gained between 1% and 3%.
Sumco Corp., Ebara Corp., and Rrenesas Electronics gained between 2% and 4%.
Toyota Motor, Honda Motor, Nissan Motor, and Subaru declined between 1% and 4%.
Nippon Steel advanced 2% to ¥3,689.0 as the company made its final push to acquire U.S. Steel for $14.1 billion.
Hong Kong Stocks Rebound, Shanghai Stocks Struggle Near Flatline
Stocks in Shanghai lacked direction, but benchmark indexes in Hong Kong advanced after investors reacted positively to the rising factory activity data released over the weekend.
China's manufacturing purchasing managers' index increased to 50.8 in March from 49.1 in February, the National Bureau of Statistics reported on Sunday.
Moreover, investors hoped that foreign investors would continue to purchase Chinese stocks following the net inflows in February and March.
The Hang Seng index declined nearly 3% in the first quarter and extended four-year losses on the protracted property market slump, weak consumer and investor confidence, and the government's prioritizing of national security over the economy, targeting foreign firms.
The CSI 300 index decreased 0.5% to 3,576.11, but the Hang Seng index rose 2.2% to 16,912.34.
Bank of China, China Merchant Bank, ICBC, and Agriculture Bank of China advanced between 1% and 4% in Hong Kong trading.
Xiaomi Corp. soared 10.4% to HK$16.48 after the smart phone maker reported strong demand for its electric vehicle released last week.
India Stocks Look Down, Rupee Holds Firm Near Record Low
Stocks lacked direction in Mumbai trading, and investors awaited interest rate decisions from the Reserve Bank of India on Friday.
The Sensex and the Nifty indexes traded around the flatline as investors debated future rate paths and domestic macroeconomic conditions.
The yield on 5-year Indian government bonds held stable, and the Indian rupee traded near record lows after the U.S. dollar edged higher against major international currencies.
The Sensex index increased 0.04% to 74,044.45, and the Nifty index edged up 0.2% to 22,490.05.
On the Mumbai stock exchange, 68 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 held steady at 7.05%, and the Indian rupee held steady at ₹83.35 against the U.S. dollar.
India Movers: Anant Raj, ABFL, Hero Motocorp, IIFL, IREDA, Maruti Suzuki, NMDC, TVS Motor
Arun Goswami
02 Apr, 2024
Mumbai
Stocks in Mumbai trading lacked direction and, investors debated future rate paths after crude oil prices rose to a five-month high.
The Sensex index increased 0.04% to 74,044.45, and the Nifty index edged up 0.2% to 22,490.05.
On the Mumbai stock exchange, 68 stocks traded at their 52-week highs and 12 stocks traded at their 52-week lows.
JTL Industries increased 5.2% to ₹211.50, and the pipe and tube maker said its fiscal year 2024 sales rose to a record high of 341,845 metric tons.
NMDC gained 0.1% to ₹212.90, and the iron ore mining company said its production declined 13.2% from the previous month to 4.86 million tons in March.
Jubilant Pharmova decreased 0.6% to ₹571.35 after the company received a demand of ₹228.8 crore from the Income Tax Department.
Bharat Dynamics declined 3% to ₹1,720.00, and the company said sales in the fiscal year 2024 decreased to 2,350 crore from 2,489 crore in the previous year, citing supply chain disruptions linked to the ongoing war in Ukraine and rebel attacks in Red Sea lanes.
South Indian Bank decreased 4.1% to ₹27.95, and the financial service company said gross loans in the fiscal year 2024 increased 11.4% to ₹80,337 crore and total deposits rose 11.2% to ₹1.01 lakh crore.
Indian Renewable Energy Development Agency, or Ireda, gained 5% to ₹149.75, and the financing company said total outstanding loans expanded 26.7% to ₹59,650 crore.
IIFL Finance added 0.9% to ₹348.60, and the company received approval to increase its stake in the National Stock Exchange through the purchase of ₹284.4 crore worth of stake from FIH Mauritius Investments Ltd.
Maruti Suzuki India decreased 0.04% to ₹12,564.30, and the vehicle maker said production in the fiscal year 2024 rose to 166,730 units from 154,148 units a year ago.
Anant Raj rose 2% to ₹330.55 after the residential development company confirmed the sale of ₹4,150 crore for its projects located at Sector 63 A Gurugram, Haryana.
Aditya Birla Fashion and Retail soared 14% to ₹241.15 after the retailer confirmed its plans to spinoff Madura Fashion as a separate company.
Hero Motocorp declined 2% to ₹4,578.0 and the maker of 2-wheeler vehicles said unit sales declined 5.6% to 490,415 units in March.
Total vehicle sale in the fiscal year 2024 rose 5.5% from a year ago to 5.621 million or 56.21 lakhs.
TVS Motor Company increased 0.1% to ₹2,141.50 after the maker of two-wheeler said its vehicle sales in March rose 12% to 354,592 units.
Vehicle sales in the fiscal year 2024 rose 14% to 4.2 million or 42 lakh units.
U.S. Stocks Turn Lower as Treasury Yields Approach 3-month Highs
Barry Adams
01 Apr, 2024
New York City
Stocks on Wall Street lacked direction after traders returned from a three-day weekend.
Benchmark indexes struggled around the flat line after February's price consumption expenditures index met market expectations.
Moreover, construction spending eased in February from the previous month but rose in double digits from a year ago.
The U.S. Personal Consumption Expenditures Price Index in February and the alternative measure of inflation rose less than expected. The index is closely watched by the Federal Reserve to monitor how consumers react to inflation and adjust purchases.
The latest update on the index was released on Friday, and U.S. investors reacted to the data after trading resumed following the Good Friday holiday.
The widely followed stock market indexes advanced in the first quarter, and the S&P 500 index gained 10.2%, its best quarterly performance in five years.
The Nasdaq Composite advanced 9.1%, and the Dow Jones Industrial Average added 5.6%.
Investors have been bidding up stocks in the hopes that central banks around the world are laying the groundwork for possible rate cuts in the second half as inflation continues to soften.
A week ago, the US, the UK, and Norway held their policy rates, but Switzerland bucked the trend and led other central banks by lowering rates by 25 basis points.
This week investors are looking ahead to the release of the Job Openings and Labor Turnover Survey report on Tuesday, the ADP’s private sector employment update on Wednesday, and the nonfarm payrolls report on Friday.
PCE Price Index Slows But Stays Elevated
The PCE price index rose 2.5% from a year ago and advanced 0.3% from the previous month, the U.S. Bureau of Economic Analysis reported Friday.
The index accelerated to an annual rate of 2.5% from 2.4% and slowed to 0.3% monthly from 1.0% in the previous month, respectively.
The core rate, which excludes volatile food and energy prices, rose at a slower pace of 2.8% from the 2.9% rate in January.
Construction Spending Edges Lower
Construction spending in February decreased by 0.3% from the previous month but soared by 10.7% from a year ago, the U.S. Census Bureau reported Monday.
Total construction spending eased to an annual pace of $2.091 trillion, up from $2.096 trillion.
Private construction was unchanged from the previous month but rose 9% from a year ago to $1.6 trillion, and public construction spending edged down 1.2% from the previous month but rose 16.8% to an annual pace of $474.4 billion.
Of the private construction spending, residential construction spending increased 0.7% from the previous month or rose 6.3% from a year ago to $901 billion.
U.S. Indexes and Yields
The S&P 500 index decreased 0.3% to 5,237.58, and the Nasdaq Composite fell 0.1% to 16,368.48.
The yield on 2-year Treasury notes increased to 4.62%, 10-year Treasury notes inched down to 4.21%, and 30-year Treasury bonds edged up to 4.37%.
WTI crude oil increased $1.26 to $84.39 a barrel, and natural gas prices increased 9 cents to $1.84 a thermal unit.
Gold jumped to a record high on the hopes that the U.S. Federal Reserve is more likely to lower interest rates after the release of the weaker-than-expected PCE Price Index.
Moreover, elevated geopolitical tensions in the Middle East and the ongoing war in Ukraine contributed to market anxieties.
Gold increased by $9.88 to $2,241.81 an ounce, and silver rose 8 cents to $25.05.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 105.03.
Indexes In Japan and China Diverge After Factory Activities Updates
Stock markets in Asia lacked momentum amid thin trading as investors in Japan confronted weak economic data, but factory activities rose more than expected in China.
Investors also reviewed the U.S. Personal Consumption Expenditures Price Index in February, and the alternative measure of inflation watched by the Federal Reserve rose less than expected.
Nikkei 225 Drops 1% Amid Weak Key Economic Reports
Benchmark indexes in Tokyo headed lower and extended losses after the Bank of Japan showed a decline in sentiment among large manufacturers.
The quarterly Tankan survey showed that sentiment among large manufacturers eased to +11 in the first quarter from an upwardly revised +13 in the fourth quarter, while the manufacturing outlook for the second quarter points to a further slowdown to +10.
The weakness in the outlook was due to the shut-down of automobile manufacturing plants.
The au Jibun Bank Japan Manufacturing PMI was confirmed at 48.2% in March, following the final reading of 47.2 in February, which was the lowest level since August 2020, according to S&P Global.
The private survey showed that factory activities contracted for the tenth month in a row, but the decline was the smallest since November, amid softer declines in output and new orders falling at the slowest pace in five months.
Nonetheless, factory activities continued to shrink amid global macroeconomic headwinds and continued supply chain disruptions in the Red Sea and Panama Canal.
The Nikkei 225 stock average decreased 1.1% to 39,920.18, and the Topix index dropped 1.5% to 39,920.18.
Stocks declined in a broad-based sell-off, and technology, financial services providers, and diversified conglomerates led the decliners.
SoftBank, Screen Holdings, Advantest, Tokyo Electron, and Disco Holdings dropped between 1.5% and 4%.
Mitsubishi UFJ, Mizuho Financial Group, and Sumitomo Mitsui are around 3.5%.
Marubeni, Itochu, Mitsui & Company, Mitsubishi Corp., and Sumitomo declined between 1.3% and 3.0%.
China Manufacturing Activities Expanded Fifth Consecutive Month
Chinese stocks jumped and benchmark indexes advanced the most in a month after a private survey showed China's manufacturing activities rose at a faster-than-expected pace in March.
The Caixin China General Manufacturing PMI was 51.1 in March, higher than 50.9 in February.
The 50-level mark separates growth from contraction, and activities expanded for the fifth month in a row and reached their highest level since February 2023.
The CSI 300 index jumped 1.5% to 3,589.29, and financial markets in Hong Kong were closed for a public holiday.
Foreign Investors Increase Exposure to Chinese stocks
Stocks also powered ahead after the data from exchanges showed that foreign investors purchased $11.5 billion of mainland stocks in the last two months.
Funds controlled by foreign investors purchased 22 billion yuan, or $3 billion, of stocks in March, following the purchase of 60.7 billion yuan in February, according to Stock Connect data.
Foreign investors have been selling mainland China stocks for six months in a row between August and January due to the protracted property market malaise, weak consumer confidence, and fragile economic recovery after the ending of zero COVID restrictions.
BYD added 3.8% to 210.70 yuan, CATL gained 4% to 197.96 yuan, Ganfeng Lithium Group advanced 7.7% to 39.15 yuan, and Tianqi Lithium added 4.8% to 50.27 yuan.
India Stocks Advance Ahead of Rate Decision
Stocks in Mumbai advanced amid thin trading in Asia and positive international sentiment.
The Sensex and the Nifty indexes gained more than 0.7%, and the yield on Indian government bonds held steady in the hopes that the Reserve Bank of India would hold its benchmark rate later in the week.
Market sentiment was positive, and metals stocks advanced after a private survey showed China's manufacturing activities rose at a faster-than-expected pace in March.
The Sensex index increased 0.7% to 74,213.44, and the Nifty index edged up 0.8% to 22,519.55.
On the Mumbai stock exchange, 95 stocks traded at their 52-week highs and 37 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds decreased to 7.05%, and the Indian rupee held steady at ₹83.35 against the U.S. dollar.
Prestige Estates Projects jumped 4% to ₹1,217.60 after the company struck an investment partnership with the Abu Dhabi Investment Authority and funds controlled by Kotak Mahindra.
NHPC rose 0.5% to ₹89.30, and the company secured a loan of 20 billion yen from a Japan-controlled investment company for the construction of a power plant in Manipur.