Market Update
India Movers: Bharat Highways, HIL, Hindustan Zinc, ITC, Jupiter Wagons, PSP, Pitti Engineering, RK Swamy
Arun Goswami
12 Mar, 2024
Mumbai
Jupiter Wagons edged higher by 0.3% to ₹366.0 after the company won a ₹957 crore contract from the Ministry of Railways for the supply of wagons with side mechanisms.
ITC declined 1% to ₹409.20, and the company's parent, British American Tobacco, is looking to divest between a $2 billion and a $3 billion stake in the company as early as this week.
HIL decreased 0.2% to ₹2,706.0, and the company said it agreed to acquire Crestia Polytech and four other related entities for ₹265 crore.
Mahindra & Mahindra decreased 0.5% to ₹1,888.60, and the company's vehicle sales increased 26% to 71,384 units, and production expanded 26% to 73,380 units from 56,551 units.
However, vehicle exports declined 31.6% to 1,539 units.
PSP Projects fell 2.2% to ₹651.0 after the company said it received additional orders for 410 crore for a building construction project in GIFT city, Gandhinagar.
Hindustan Zinc declined 0.7% to ₹308.80 after the central government ministry declined the company's plan to split its zinc and lead, silver, and recycling into three separate companies.
Pitti Engineering inched lower by 5.7% to ₹745.10 after the company signed a binding agreement to acquire Bagadia Chaitra Industries for ₹124.9 crore.
RK Swampy is scheduled to list its stock after the integrated marketing services provider sold its stock at ₹288 per share in an initial public offering and raised ₹423 crore.
Bharat Highways InvIT, a real estate investment trust, is expected to list its stock at ₹100 per share.
U.S. and World Indexes Extend 2-Day Losses but Stay Close to Record Highs
Barry Adams
11 Mar, 2024
New York City
Benchmark indexes lacked direction and extended the previous week's losses as investors looked ahead to the release of inflation data later in the week.
The S&P500 index and the Nasdaq Composite declined 0.2% in trading in New York, and investors debated the future rate path and labor market conditions.
Last week, stock market indexes declined, and investors focused on labor market updates and overlooked international trade data.
U.S. nonfarm payrolls expanded at a healthy pace in February, and the growing job market also enticed more people to apply for jobs, which in turn increased the jobless rate to a 2-year high, and annual wage gains decelerated to 4.3%.
Moreover, job openings edged slightly lower but remained at a high level, indicating that labor market conditions are healthy, despite multiple rate hikes over the last two years.
The yield on Treasury notes declined on the growing optimism that policymakers are more likely to cut rates as early as June, providing another boost to the stock market advance and driving gold to a record high.
Traders are anticipating that February's consumer price inflation will rise by 0.4% on a monthly basis and 3.0% from a year ago, according to a survey conducted by Ticker.com.
Core inflation, which excludes volatile food and energy prices, is expected to rise 0.3% from the previous month and advance at a faster pace of 3.7% from a year ago.
The U.S. Bureau of Labor Statistics is set to release inflation data on Tuesday and producer price index data on Thursday.
Despite multiple interest rate hikes over the last two years, inflation has still stayed well above the Federal Reserve's target rate of 2%, and bringing down inflation may require higher interest rates to stay longer, contrary to the market's expectations.
U.S. Indexes and Yields
The S&P 500 index decreased 0.2% to 5,112.30, and the Nasdaq Composite fell 0.4% to 16,022.73.
The yield on 2-year Treasury notes increased to 4.51%, 10-year Treasury notes inched up to 4.07%, and 30-year Treasury bonds edged down to 4.24%.
WTI crude oil decreased $0.10 to $77.90 a barrel, and natural gas prices decreased 3 cents to $1.78 a thermal unit.
Gold increased by $1.64 to $2,179.40 an ounce, and silver rose 13 cents to $24.43.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 102.84.
U.S. Stock Movers
Cryptocurrency stocks advanced after Bitcoin surged above $71,000 in the hopes that the U.K. securities regulator may approve retail investing in the digital currency through an exchange-traded note vehicle.
MicroStrategy soared 9%, Coinbase advanced 6%, and Marathon Digital jumped 5%.
Artificial intelligence applications and infrastructure-related stocks declined in Monday's trading.
Nvidia declined 1%, Super Micro dropped 3%, Broadcom fell 1%, and Advanced Micro Devices eased 2%.
European Markets Ease from Record Highs
European market indexes declined from record highs after investors booked profits and reviewed the latest rate announcements last week.
Benchmark indexes in Frankfurt, Paris, and London inched lower in Monday's trading, and bond yields also drifted lower.
Central banks in the U.S. and Eurozone led investors to believe that interest rates are near their peak in the current cycle and raised hopes for rate cuts to begin as early as June.
Last week, the European Central Bank also held its key lending rates steady for the fourth consecutive time in a row, and ECB President Lagarde confirmed that the market’s view of rate cuts in three months is converging with the view of policymakers.
Moreover, last week's latest batch of economic reports showed Germany's exports rose more than expected and the trade surplus widened in January, but France's trade balance remained in deficit because of high energy prices.
Spain's retail trade activity increased by 0.3% in January, following the downwardly revised 2.7% rise in the previous month, the National Statistics Institute reported Monday.
Retail sales rose for the fourteenth month in a row, but the rise was the smallest in the period.
Europe Indexes and Yields
The DAX index decreased by 0.4% to 17,746.27, the CAC-40 index fell by 0.1% to 8,019.73, and the FTSE 100 index inched higher by 0.1% to 7,669.23.
The yield on 10-year German bonds edged down to 2.26%; French bonds inched lower to 2.71%; the UK gilts edged lower to 3.95%; and Italian bonds inched lower to 3.59%.
The euro edged higher to $1.09, the British pound inched higher to $1.28, and the U.S. dollar weakened to 87.67 Swiss cents.
Brent crude increased $0.11 to $82.19 a barrel, and the Dutch TTF natural gas decreased by €1.96 to €24.93 per MWh.
Europe Stock Movers
Metals and mining companies fell after cautious comments from the Chinese minister.
China's housing minister said on Monday that the government is prepared to let some property developers go bankrupt if they are deemed to be financially unviable.
Anglo American declined 2.1% to 1,811.60 pence, and Glencore fell 2.2% to 391.70 pence after copper and iron ore prices eased on China's growth worries.
Currys PLC dropped 8.7% to 59.15 pence after U.S.-based activist investment manager Elliott Investment Management said it no longer plans to make a bid for the electronics retailer.
Marston's PLC decreased 1.1% to 29.50 pence after the UK-based pub's chairman confirmed his plans to step down from the company's board later in the year.
Imperial Brands rose 2.1% to 1,728.0 pence after the company announced a stock repurchase plan of £11 billion.
HelloFresh advanced 3.7% to €7.11 after the German meal-kit company's stock plunged 40% last week following the company's weak outlook.
Enel SpA rose 0.6% to €6.16 after the Italian energy company's subsidiary E-distribuzione announced its plans to sell some of its distribution activities for €1.2 billion to Italian regional utility A2A.
LEG Immobilien gained 3.7% to €74.62 after the property company reported better-than-expected quarterly results.
EssilorLuxttica decreased 2.1% to €204.45, and the Financial Times said that the company was one of the top contenders to acquire Italian eyewear maker Marcolin.
Asian Markets Head Lower
Asian markets traded mixed in Monday's trading, and tech stocks led the indexes in Tokyo and Mumbai lower, but the benchmark indexes in China edged higher after the release of inflation data.
Nikkei In Tokyo Dropped 2%, Q4 GDP Revised Higher
Stocks in Tokyo dropped sharply following the weakness in tech stocks in Friday's trading in New York.
Profit-taking sentiment dictated market volatility, and the Japanese yen strengthened against the U.S. dollar after the fourth quarter. GDP was upwardly revised and stoked speculation that the Bank of Japan is likely to end its ultra-loose monetary policy at the end of its policy meeting on March 19.
Japan's fourth-quarter GDP growth was revised to an increase of 0.1% from the preliminary estimate of a decline of 0.1%, avoiding a technical recession after contracting 0.8% in the third quarter. Japan's Cabinet Office reported Monday.
On an annualized basis, GDP increased 0.4% after slumping 2.9% in the three months prior. GDP capital expenditure was up 2.0 percent on the quarter after declining 0.4% in the third quarter.
The Nikkei 225 Stock Average declined 2% to 38,868.10, and the Topix index dropped 2.2% to 2,666.72.
Tokyo Electron, Disco Corp., SoftBank, Advantest, and Screen Holdings declined between 3% and 5%.
Sumitomo Mitsui Financial, Mizuho Financial, and Mitsubishi UFJ Financial declined more than 3%.
Inflation Rebounded and Foreign Investments Lift China Stocks Higher
Stocks in Shanghai and Hong Kong advanced on the hopes that demand conditions are recovering after the rebound in inflation.
Market sentiment was also bolstered by a net inflow of $9.6 billion of funds in Chinese stocks in February, reversing a net outflow in the previous six months in a row, according to the Institute of International Finance.
China's consumer price inflation rebounded to an increase of 0.7% in February after a 14-year steep decline of 0.8% in January, the National Bureau of Statistics reported over the weekend.
The shifting lunar holiday calendar also played a role in the rebound in inflation following the early arrival of the annual holidays last year.
Property developers declined after the housing minister confirmed that the government is prepared to let some developers go bankrupt for a lack of financial viability.
The CSI 300 index increased 0.4% to 3,559.88, and the Hang Seng index added 1.1% to 16,548.22.
Longfor Group, China Vanke, China Resources Land, Henderson Land Development, and Sun Hung Kai traded down but managed to recover in the afternoon trading.
Longfor Group traded higher by 0.5% to HK$9.43, despite the property developer saying its annual profit declined by as much as 50% in the last year.
Alibaba Group, Tencent Holdings, JD.com, Meituan, and Baidu advanced between 2% and 4% following the bargain hunting for foreign investors.
India indexes track lower global markets.
The Sensex index decreased 0.2% to 73,952.93, and the Nifty index fell 0.2% to 22,458.20.
On the Mumbai stock exchange, 160 stocks traded at their 52-week highs and 57 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds increased to 7.05%, and the Indian rupee strengthened to ₹82.82 against the U.S. dollar.
Stocks in Mumbai headed lower in Monday's trading, and investors reacted to local corporate news amid global markets.
The Sensex and the Nifty indexes dropped more than 0.1% in early trading on global interest rate uncertainties compounded by high valuations in local markets.
Market indexes struggled after extending weekly gains for the seventh week in a row, and international crude oil prices hovered near two-week lows on the ongoing demand growth worries in China and rising supplies in the U.S.
Traders Look Ahead to Inflation Data Amid Monday Market Jitters
Barry Adams
11 Mar, 2024
New York City
Stocks struggled in Monday's trading, and benchmark indexes extended the previous week's losses as investors looked ahead to the release of inflation data later in the week.
The S&P500 index and the Nasdaq Composite declined 0.5% in early trading in New York, and investors debated the future rate path and labor market conditions.
Last week, stock market indexes declined, and investors focused on labor market updates and overlooked international trade data.
U.S. nonfarm payrolls expanded at a healthy pace in February, and the growing job market also enticed more people to apply for jobs, which in turn increased the jobless rate to a 2-year high, and annual wage gains decelerated to 4.3%.
Moreover, job openings edged slightly lower but remained at a high level, indicating that labor market conditions are healthy, despite multiple rate hikes over the last two years.
The yield on Treasury notes declined on the growing optimism that policymakers are more likely to cut rates as early as June, providing another boost to the stock market advance and driving gold to a record high.
Traders are anticipating that February's consumer price inflation will rise by 0.4% on a monthly basis and 3.0% from a year ago, according to a survey conducted by Ticker.com.
Core inflation, which excludes volatile food and energy prices, is expected to rise 0.3% from the previous month and advance at a faster pace of 3.7% from a year ago.
The U.S. Bureau of Labor Statistics is set to release inflation data on Tuesday and producer price index data on Thursday.
Despite multiple interest rate hikes over the last two years, inflation has still stayed well above the Federal Reserve's target rate of 2%, and bringing down inflation may require higher interest rates to stay longer, contrary to the market's expectations.
U.S. Indexes and Yields
The S&P 500 index decreased 0.2% to 5,113.50, and the Nasdaq Composite fell 0.2% to 16,052.06.
The yield on 2-year Treasury notes increased to 4.51%, 10-year Treasury notes inched up to 4.07%, and 30-year Treasury bonds edged down to 4.24%.
WTI crude oil decreased $0.87 to $77.21 a barrel, and natural gas prices decreased 3 cents to $1.78 a thermal unit.
Gold increased by $1.30 to $2,178.70 an ounce, and silver rose 13 cents to $24.43.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 103.83.
U.S. Stock Movers
Cryptocurrency stocks advanced after Bitcoin surged above $71,000 in the hopes that the U.K. securities regulator may approve retail investing in the digital currency through an exchange-traded note vehicle.
MicroStrategy soared 9%, Coinbase advanced 6%, and Marathon Digital jumped 5%.
Artificial intelligence applications and infrastructure-related stocks declined in Monday's trading.
Nvidia declined 1%, Super Micro dropped 3%, Broadcom fell 1%, and Advanced Micro Devices eased 2%.
Europe Movers: Currys, Enel, EssilorLuxottica, HelloFresh, Imperial Brands, Marston's
Inga Muller
11 Mar, 2024
Frankfurt
European stock market indexes declined from record highs, and bond yields drifted lower after the European Central Bank supported the market view of a possible rate cut as early as June.
The DAX index decreased by 0.7% to 17,686.07, the CAC-40 index fell by 0.4% to 7,999.17, and the FTSE 100 index inched lower by 0.3% to 7,637.33.
The yield on 10-year German bonds edged down to 2.26%; French bonds inched lower to 2.71%; the UK gilts edged lower to 3.95%; and Italian bonds inched lower to 3.59%.
Metals and mining companies fell after cautious comments from the Chinese minister.
China's housing minister said on Monday that the government is prepared to let some property developers go bankrupt if they are deemed to be financially unviable.
Anglo American declined 2.1% to 1,811.60 pence, and Glencore fell 2.2% to 391.70 pence after copper and iron ore prices eased on China's growth worries.
Currys PLC dropped 8.7% to 59.15 pence after U.S.-based activist investment manager Elliott Investment Management said it no longer plans to make a bid for the electronics retailer.
Marston's PLC decreased 1.1% to 29.50 pence after the UK-based pub's chairman William Rucker confirmed his plans to step down from the company's board as of July 8.
Imperial Brands rose 2.1% to 1,728.0 pence after the company announced a stock repurchase plan of £11 billion.
HelloFresh advanced 3.7% to €7.11 after the German meal-kit company's stock plunged 40% last week following the company's weak outlook.
Enel SpA rose 0.6% to €6.16 after the Italian energy company's subsidiary E-distribuzione announced its plans to sell some of its distribution activities for €1.2 billion to Italian regional utility A2A.
LEG Immobilien gained 3.7% to €74.62 after the property company reported better-than-expected quarterly results.
EssilorLuxottica decreased 2.1% to €204.45, and the Financial Times said that the company was one of the top contenders to acquire Italian eyewear maker Marcolin.
European Indexes Decline from Record Highs, Spain's Retail Trade Expanded
Bridgette Randall
11 Mar, 2024
Frankfurt
European market indexes declined from record highs after investors booked profits and reviewed the latest rate announcements last week.
Benchmark indexes in Frankfurt, Paris, and London inched lower in Monday's trading, and bond yields also drifted lower.
Central banks in the U.S. and Eurozone led investors to believe that interest rates are near their peak in the current cycle and raised hopes for rate cuts to begin as early as June.
Last week, the European Central Bank also held its key lending rates steady for the fourth consecutive time in a row, and ECB President Lagarde confirmed that the market’s view of rate cuts in three months is converging with the view of policymakers.
Moreover, last week's latest batch of economic reports showed Germany's exports rose more than expected and the trade surplus widened in January, but France's trade balance remained in deficit because of high energy prices.
Spain's retail trade activity increased by 0.3% in January, following the downwardly revised 2.7% rise in the previous month, the National Statistics Institute reported Monday.
Retail sales rose for the fourteenth month in a row, but the rise was the smallest in the period.
Europe Indexes and Yields
The DAX index decreased by 0.7% to 17,686.07, the CAC-40 index fell by 0.4% to 7,999.17, and the FTSE 100 index inched lower by 0.3% to 7,637.33.
The yield on 10-year German bonds edged down to 2.26%; French bonds inched lower to 2.71%; the UK gilts edged lower to 3.95%; and Italian bonds inched lower to 3.59%.
The euro edged higher to $1.09, the British pound inched higher to $1.28, and the U.S. dollar weakened to 87.67 Swiss cents.
Brent crude increased $0.29 to $82.39 a barrel, and the Dutch TTF natural gas decreased by €0.96 to €25.43 per MWh.
Europe Stock Movers
Metals and mining companies fell after cautious comments from the Chinese minister.
China's housing minister said on Monday that the government is prepared to let some property developers go bankrupt if they are deemed to be financially unviable.
Anglo American declined 2.1% to 1,811.60 pence, and Glencore fell 2.2% to 391.70 pence after copper and iron ore prices eased on China's growth worries.
Currys PLC dropped 8.7% to 59.15 pence after U.S.-based activist investment manager Elliott Investment Management said it no longer plans to make a bid for the electronics retailer.
Marston's PLC decreased 1.1% to 29.50 pence after the UK-based pub's chairman confirmed his plans to step down from the company's board later in the year.
Imperial Brands rose 2.1% to 1,728.0 pence after the company announced a stock repurchase plan of £11 billion.
HelloFresh advanced 3.7% to €7.11 after the German meal-kit company's stock plunged 40% last week following the company's weak outlook.
Enel SpA rose 0.6% to €6.16 after the Italian energy company's subsidiary E-distribuzione announced its plans to sell some of its distribution activities for €1.2 billion to Italian regional utility A2A.
LEG Immobilien gained 3.7% to €74.62 after the property company reported better-than-expected quarterly results.
EssilorLuxttica decreased 2.1% to €204.45, and the Financial Times said that the company was one of the top contenders to acquire Italian eyewear maker Marcolin.
Japan Narrowly Avoided Recession After GDP Growth Revised Higher, China's Inflation Rebounded
Arjun Pandit
11 Mar, 2024
Mumbai
Asian markets traded mixed in Monday's trading, and tech stocks led the indexes in Tokyo and Mumbai lower, but the benchmark indexes in China edged higher after the release of inflation data.
Nikkei In Tokyo Dropped 2%, Q4 GDP Revised Higher
Stocks in Tokyo dropped sharply following the weakness in tech stocks in Friday's trading in New York.
Profit-taking sentiment dictated market volatility, and the Japanese yen strengthened against the U.S. dollar after the fourth quarter. GDP was upwardly revised and stoked speculation that the Bank of Japan is likely to end its ultra-loose monetary policy at the end of its policy meeting on March 19.
Japan's fourth-quarter GDP growth was revised to an increase of 0.1% from the preliminary estimate of a decline of 0.1%, avoiding a technical recession after contracting 0.8% in the third quarter. Japan's Cabinet Office reported Monday.
On an annualized basis, GDP increased 0.4% after slumping 2.9% in the three months prior. GDP capital expenditure was up 2.0 percent on the quarter after declining 0.4% in the third quarter.
The Nikkei 225 Stock Average declined 2% to 38,868.10, and the Topix index dropped 2.2% to 2,666.72.
Tokyo Electron, Disco Corp., SoftBank, Advantest, and Screen Holdings declined between 3% and 5%.
Sumitomo Mitsui Financial, Mizuho Financial, and Mitsubishi UFJ Financial declined more than 3%.
Inflation Rebounded and Foreign Investments Lift China Stocks Higher
Stocks in Shanghai and Hong Kong advanced on the hopes that demand conditions are recovering after the rebound in inflation.
Market sentiment was also bolstered by a net inflow of $9.6 billion of funds in Chinese stocks in February, reversing a net outflow in the previous six months in a row, according to the Institute of International Finance.
China's consumer price inflation rebounded to an increase of 0.7% in February after a 14-year steep decline of 0.8% in January, the National Bureau of Statistics reported over the weekend.
The shifting lunar holiday calendar also played a role in the rebound in inflation following the early arrival of the annual holidays last year.
Property developers declined after the housing minister confirmed that the government is prepared to let some developers go bankrupt for a lack of financial viability.
The CSI 300 index increased 0.4% to 3,559.88, and the Hang Seng index added 1.1% to 16,548.22.
Longfor Group, China Vanke, China Resources Land, Henderson Land Development, and Sun Hung Kai traded down but managed to recover in the afternoon trading.
Longfor Group traded higher by 0.5% to HK$9.43, despite the property developer saying its annual profit declined by as much as 50% in the last year.
Alibaba Group, Tencent Holdings, JD.com, Meituan, and Baidu advanced between 2% and 4% following the bargain hunting for foreign investors.
India indexes track lower global markets.
The Sensex index decreased 0.2% to 73,952.93, and the Nifty index fell 0.2% to 22,458.20.
On the Mumbai stock exchange, 160 stocks traded at their 52-week highs and 57 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds increased to 7.05%, and the Indian rupee strengthened to ₹82.82 against the U.S. dollar.
Stocks in Mumbai headed lower in Monday's trading, and investors reacted to local corporate news amid global markets.
The Sensex and the Nifty indexes dropped more than 0.1% in early trading on global interest rate uncertainties compounded by high valuations in local markets.
Market indexes struggled after extending weekly gains for the seventh week in a row, and international crude oil prices hovered near two-week lows on the ongoing demand growth worries in China and rising supplies in the U.S.
India Movers: Interglobe Aviation, Exide Industries, HG Infra, JM Financial, Rail Vikas Nigam, Torrent Power
Arun Goswami
11 Mar, 2024
Mumbai
Stock market indexes declined in Monday's trading after extending weekly gains for the seventh week in a row in the previous week.
The Sensex index decreased 0.2% to 73,952.93, and the Nifty index fell 0.2% to 22,458.20.
On the Mumbai stock exchange, 160 stocks traded at their 52-week highs and 57 stocks traded at their 52-week lows.
Torrent Power increased 4.1% to ₹1,192.15 after the company was awarded a 306 MW solar power project by Maharashtra State Electricity Distribution.
Interglobe Aviation decreased 0.2% to ₹3,099.85 on a report that the company's promoter, Rakesh Gangwal, and other entities controlled by his family are expected to sell a 3.3% stake, or 13 crore shares, in the airline in a block deal today.
Rail Vikas Nigam gained 5% to ₹249.90 after the company won orders from Himachal Pradesh and Madhya Pradesh for expanding 11 KV powerlines.
JM Financial decreased 8.5% to ₹80.15 after the financial services provider was barred by the securities regulator from managing a new public offering of debt securities.
Sonata Software added 0.2% to ₹789.70, and the company announced the integration of its artificial intelligence application with Microsoft Azure.
HG Infra Engineering increased 2.3% to ₹929.50 after the company's 610 crore bid was selected as the lowest for the construction of a 4-lane highway in Jharkhand.
Coal India advanced 0.5% to ₹460.90 after the company signed a preliminary contract to investigate the possibility of setting up a 4,1000 MW power plant in Rajasthan.
Exide Industries decreased 0.5% to ₹326.50, and the company announced a plan to raise ₹40 crore through a rights offering in its advanced battery manufacturing subsidiary.
U.S. Movers: Broadcom, Costco Wholesale, Gap, Marvell Technology
Scott Peters
08 Mar, 2024
New York City
Broadcom declined 0.4% to $1,402.0 after the advanced chipmaker reported better-than-expected quarterly results and estimated revenue in the current quarter in line with market expectations.
Marvell Technology decreased 4.2% to $81.50 after the semiconductor company reported mixed quarterly results and issued a lighter-than-expected revenue and adjusted earnings outlook for the current quarter.
Costco Wholesale declined 3.8% to $761.41 after the membership retailer reported weaker than expected revenue in its latest quarter.
Gap Inc. increased 9.5% to $21.17 after the apparel retailer reported better-than-expected holiday quarter sales of $4.3 billion and earnings per share of 49 cents.
The U.S. Job Market Stays Hot, Wage Growth Decelerates
Brian Turner
08 Mar, 2024
New York City
Total nonfarm payroll employment increased by 275,000 in February, and the unemployment rate increased to 3.9%, the Bureau of Labor Statistics reported Friday.
The February month's increase was higher than the average 230,00 monthly gain in the last 12 months.
The unemployment rate rose by 0.2 percentage points to 3.9% in February, and the number of unemployed people increased by 334,000 to 6.5 million.
A year earlier, the jobless rate was 3.6%, and the number of unemployed people was 6.0 million.
The number of long-term unemployed, those seeking jobs for 27 weeks or more, held steady at 1.2 million in February.
Moreover, the employment participation rate and employment-to-population ratio held steady for the third month in a row at 62.5% and 60.1%, respectively.
In addition, there are 5.7 million people still seeking jobs, but not in the labor force, as in the previous month.
Average hourly earnings for all employees rose at a slower monthly pace of 0.1% and an annual rate of 4.3% to $34.57 in February.
The change in total nonfarm payroll employment for December was revised down by 43,000 to 290,000, and the change for January was revised down by 124,000 to 229,000.
With these revisions, employment in December and January combined is 167,000 lower than previously reported.
Expanding Job Market Sends Mixed Signals to Policymakers, Treasury Yields Edged Lower
Barry Adams
08 Mar, 2024
New York City
Benchmark indexes traded higher in early trading, and the popular indexes are set to extend gains after a week of turbulent trading.
The S&P 500 index and the Nasdaq Composite edged higher after investors reviewed the nonfarm payroll update for February.
The February jobs report offered a mixed picture of expanding payrolls, but the jobless rate also rose, sending conflicting signals to policymakers.
The economy is still adding jobs above its long-term average, and that sustained expansion is also attracting more people to the job market, driving unemployment higher.
Treasury yields edged lower after the release of the jobs report.
U.S. Job Growth Stays Hot
Total nonfarm payroll employment increased by 275,000 in February, and the unemployment rate increased to 3.9%, the Bureau of Labor Statistics reported Friday.
The February month's increase was higher than the average 230,00 monthly gain in the last 12 months.
The unemployment rate rose by 0.2 percentage points to 3.9% in February, and the number of unemployed people increased by 334,000 to 6.5 million.
A year earlier, the jobless rate was 3.6%, and the number of unemployed people was 6.0 million.
The number of long-term unemployed, those seeking jobs for 27 weeks or more, held steady at 1.2 million in February.
Moreover, the employment participation rate and employment-to-population ratio held steady for the third month in a row at 62.5% and 60.1%, respectively.
In addition, there are 5.7 million people still seeking jobs, but not in the labor force, as in the previous month.
Average hourly earnings for all employees rose at a slower monthly pace of 0.1% and an annual rate of 4.3% to $34.57 in February.
The change in total nonfarm payroll employment for December was revised down by 43,000 to 290,000, and the change for January was revised down by 124,000 to 229,000.
With these revisions, employment in December and January combined is 167,000 lower than previously reported.
U.S. Indexes and Yields
The S&P 500 index increased 0.2% to 5,165.60, and the Nasdaq Composite advanced 0.4% to 16,324.28.
The yield on 2-year Treasury notes decreased to 4.42%, 10-year Treasury notes inched down to 4.05%, and 30-year Treasury bonds edged down to 4.22%.
WTI crude oil decreased $0.21 to $78.70 a barrel, and natural gas prices decreased 3 cents to $1.78 a thermal unit.
Gold increased by $7.50 to $2,155.90 an ounce, and silver rose 23 cents to $24.39.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 103.23.
U.S. Stock Movers
Broadcom declined 0.4% to $1,402.0 after the advanced chipmaker reported better-than-expected quarterly results and estimated revenue in the current quarter in line with market expectations.
Marvell Technology decreased 4.2% to $81.50 after the semiconductor company reported mixed quarterly results and issued a lighter-than-expected revenue and adjusted earnings outlook for the current quarter.
Costco Wholesale declined 3.8% to $761.41 after the membership retailer reported weaker than expected revenue in its latest quarter.
Gap Inc. increased 9.5% to $21.17 after the apparel retailer reported better-than-expected holiday quarter sales of $4.3 billion and earnings per share of 49 cents.
Europe Movers: Curry, DS Smith, HelloFresh, Informa, Mondi
Inga Muller
08 Mar, 2024
Frankfurt
The DAX index decreased by 0.05% to 17,833.07, the CAC-40 index rose by 0.2% to 8,032.07, and the FTSE 100 index inched lower by 0.3% to 7,668.35.
For the week, the DAX index increased by 0.5%, the CAC-40 index advanced by 1.2%, but the FTSE 100 index fell 0.3%.
The yield on 10-year German bonds edged down to 2.26%; French bonds inched lower to 2.71%; the UK gilts edged lower to 3.96%; and Italian bonds inched lower to 3.59%.
Mondi plc decreased 2.2% to 1,350.50 pence after the UK-based paper company agreed to acquire its smaller rival DS Smith for £5.14 billion.
DS Smith stock soared 5.6% to 344.30 pence.
Informa gained 0.4% to 808.60 pence after the UK-based information services provider and business-to-business trade show manager said organic revenue increased 30% in 2023.
HelloFresh SE plunged 42% to €6.80 after the German meal-kit provider cut its core earnings outlook for the second time in five months and withdrew its half-year targets.
Currys PLC fell 1.8% to 64.35 pence after the UK-based electronics retailer confirmed the sale of its operations in Greece and Cyprus for £156 million.
German Industrial Production Rebounded, French Trade Deficit Widened
Bridgette Randall
08 Mar, 2024
Frankfurt
European market indexes struggled to advance in Friday's trading, and investors awaited the release of the eurozone's GDP data and labor market update in the U.S.
Benchmark indexes in Frankfurt and Paris traded around the flatline, and they declined in London.
Market sentiment remained positive in the hopes that major central banks are ready to pivot to cut interest rates as early as June.
Broad Rebounds in German Industrial Production
Germany's monthly industrial production advanced for the first time in nine months in January, the Federal Statistics Office, or destatis, reported Friday.
Seasonal and calendar-adjusted industrial production rose 1.0% from the previous month after falling 2.0% in December.
Calendar-adjusted industrial production fell 5.5% from a year ago.
The production of capital goods fell by 2.1%. However, the production of intermediate goods rose by 4.4% and the production of consumer goods by 4.0%.
The broad-based increase in industrial production was driven by the rise in chemical production by 4.7%, in the food industry by 5.9%, and in machine maintenance and assembly by 11.1%.
However, automobile industry production declined by 7.6%.
Industrial production data excludes the output of the energy and construction sectors.
Energy production declined by 3.7% and construction output increased by 2.7% from the previous month, respectively.
France's Goods Trade Balance Deteriorated
France's goods trade balance deteriorated to €7.4 billion from €6.4 billion after the decline in exports overwhelmed the smaller fall in imports.
Over the month, exports decreased to €48.8 billion from €50.4 billion, while imports declined to €56.2 billion to €56.8 billion.
In January 2024, the energy balance weakened by €0.4 billion, driven largely by the increase in the price of imported energy products.
The balance of manufactured products fell by €0.2 billion and stood at a deficit of €4.0 billion, dragging the overall trade balance.
The energy trade balance deteriorated by €0.4 billion to a deficit of €4.6 billion after five consecutive months of increase, and agricultural product surpluses held steady at €0.2 billion.
Europe Indexes and Yields
The DAX index decreased by 0.05% to 17,833.07, the CAC-40 index rose by 0.2% to 8,032.07, and the FTSE 100 index inched lower by 0.3% to 7,668.35.
The yield on 10-year German bonds edged down to 2.26%; French bonds inched lower to 2.71%; the UK gilts edged lower to 3.96%; and Italian bonds inched lower to 3.59%.
The euro edged higher to $1.09, the British pound inched higher to $1.28, and the U.S. dollar weakened to 88.09 Swiss cents.
Brent crude decreased $0.02 to $82.94 a barrel, and the Dutch TTF natural gas increased by €0.47 to €26.48 per MWh.
Europe Stock Movers
Mondi plc decreased 2.2% to 1,350.50 pence after the UK-based paper company agreed to acquire its smaller rival DS Smith for £5.14 billion.
DS Smith stock soared 5.6% to 344.30 pence.
Informa gained 0.4% to 808.60 pence after the UK-based information services provider and business-to-business trade show manager said organic revenue increased 30% in 2023.
HelloFresh SE plunged 42% to €6.80 after the German meal-kit provider cut its core earnings outlook for the second time in five months and withdrew its half-year targets.
Currys PLC fell 1.8% to 64.35 pence after the UK-based electronics retailer confirmed the sale of its operations in Greece and Cyprus for £156 million.
Rate Cut Optimism Boosts Asian Markets, Japan's Household Spending Declined 11th Consecutive Month
Arjun Pandit
07 Mar, 2024
Mumbai
Asian markets traded higher on the final day of the week on speculation that major central banks are laying the groundwork for a pivot rate cut as early as June.
Benchmark indexes in Japan rebounded and trimmed losses in the previous session in the hopes that major central banks will pivot to trimming interest rates later in the year.
The Japanese yen edged higher to 147.20 against the U.S. dollar on widespread speculation that the Bank of Japan is likely to end its ultra-loose policy at the end of two-day meeting on March 19.
Moreover, tech and semiconductor stocks rallied on the persistent enthusiasm linked to the boom in artificial intelligence-related demand for chips, servers, and application providers.
The Nikkei 225 Stock Average gained 0.7% to 39,877.01, and the Topix index added 0.6% to 2,734.10.
For the week, the Topix index advanced 1.0%, but the Nikkei index fell 0.6%.
Tech stocks rebounded, and Tokyo Electron, Advantest, Softbank, Disco Corp., and Screen Holdings increased between 1.5% and 2.5%.
Japan's Household Spending Decline Extends to the Tenth Month
Japan's household spending declined for the 11th month in a row in January, the Ministry of Internal Affairs & Communications reported Friday.
Household spending fell 6.3% from a year ago in January, the steepest decline since February 2021, driven by sharp declines in food, fuel, transportation, and housing costs.
Household spending in December fell 2.5%.
Japan's Current Account Swings to Surplus
Japan reported a current account surplus of 438.2 billion yen in January, the Ministry of Finance said on Friday, following the 744 billion yen surplus in December.
Imports declined 12.1% from a year ago to 8.783 trillion yen, and exports gained an annual 7.6% to 7.340 trillion yen, resulting in a trade deficit of 1.442 trillion yen.
The capital account reported a deficit of 100 million yen, while the financial account had a surplus of 1.808 trillion yen.
Global Rate Cut Hopes Lift China Stocks
Stocks in Shanghai struggled, but in Hong Kong they advanced as investors debated monetary policy stimulus measures by the central banks.
The People's Bank of China Governor Gongsheng commented that banks could lower reserves and offer more loans to individuals and businesses.
During a panel discussion of Chinese lawmakers's annual legislative, Governor Gongsheng said China's reserve requirement ratio is still higher than its peers, and there is room to lower the ration.
Investors also took note of positive comments from Fed Chair Jerome Powell that the central bank is well aware of cutting rates too late and that policymakers are willing and ready to lower rates once inflation is on a sustainable path towards 2%.
The European Central Bank's President Christine Lagarde also suggested that the market view of a rate cut after the June policy meeting is converging with the view of the central bank.
The CSI 300 index declined 0.05% to 3,527.82, and the Hang Seng index advanced 1.3% to 16,441.33.
For the week, the CSI 300 index fell 0.3% and the Hang Seng index dropped 1.2% after advancing in the previous week.
Tech stocks in Hong Kong advanced, and Alibaba Group, JD.com, Baidu, and Tencent added between 0.5% and 1.1%.
Wuxi Biologic and Wuxi Apptec rebounded 3%, recouping some of the losses from the previous session after the U.S. Senate committee advanced a bill preventing Chinese biotech companies from doing business with U.S. government agencies.
Property developers generally declined after lawmakers failed to provide specific and substantial stimulus to revive the moribund property market.
China Vanke, China Resource Land, Henderson Land, and Sun Hung Kai declined between 0.3% and 0.8%.
India Indexes Extend Weekly Gains
Financial markets were closed for a holiday in India, and benchmark Sensex and Nifty indexes advanced 1.5% in the week to close at a new record high after a volatile week.
Gujarat State allocated more land to accelerate the setting up of semiconductor production plants for Tata Group and CG Power.
NTT Data Group is in the process of expanding one of its 14 data centers in India, as demand for data storage and transfer is expected to double over the next five years.
The company is planning to invest as much as $2.4 billion this year in expanding its data centers in the U.S., where demand is driven by artificial intelligence applications, and India, where broader digital connectivity adoption is growing at a rapid clip.
U.S. Trade Gap Rebounds to 9-month High
Brian Turner
07 Mar, 2024
New York City
The U.S. goods and services trade deficit increased to $67.4 billion in January from the revised $64.2 billion in December, the Bureau of Economic Analysis reported Thursday.
The trade deficit in goods and services was the widest in nine months, after exports struggled to advance and imported energy rebounded.
Exports edged up 0.1% to $257.2 billion, and imports advanced 1.1% to $324.6 billion.
The goods and services deficit decreased $2.9 billion from a year ago, or 4.1%, after exports fell 0.4%, or $1.0 billion, and imports decreased 1.2%, or $3.9 billion.
The January increase in the goods and services deficit reflected an increase in the goods deficit of $3.0 billion to $91.6 billion and a decrease in the services surplus of $0.3 billion to $24.2 billion.
The U.S. recorded a goods deficit with China of $22.9 billion, the European Union $18.1 billion, Mexico $12.7 billion, Vietnam $8.5 billion, Japan $7.3 billion, Germany $6.3 billion, Ireland $6.0 billion, Canada $5.7 billion, South Korea $5.5 billion, Taiwan $4.8 billion, Italy $3.8 billion, and India $3.7 billion.