Market Update
Japan Indexes Deepen Losses Amid Twin Headwinds of U.S. Tariffs and Rising Yen
Akira Ito
25 Feb, 2025
Tokyo
Stock market indexes in Tokyo faced headwinds, and investors returned from a three-day holiday.
The Nikkei 225 stock average declined more than 1%, the broader TOPIX fell 0.4%, and they traded at five-week lows amid the U.S. trade policy uncertainty and looming tariffs on Japanese exports.
The newly elected U.S. presidential administration confirmed its plans to go ahead with imposing additional tariffs on imports from Mexico and Canada at the end of this month.
Trump announced additional restrictions on Chinese investments in technology, healthcare, and infrastructure sectors as the U.S. ramps up pressure on China.
The U.S. presidential administration is likely to go ahead with its previously announced plans to impose tariffs on Japanese vehicles, pharmaceuticals, steel products, and advanced semiconductor equipment as early as next week.
Over the last forty years, the U.S. has tried and failed to stem the rise of Japanese manufacturing sector and automobile companies, and exports continue to keep rising because of the quality of Japanese products and value proposition to customers.
The Japanese yen continued to strengthen for the third consecutive week, as investors anticipate another modest rate hike at the end of the Bank of Japan's policy meeting in March.
Japan Indexes and Stocks
The Nikkei 225 Stock Average dropped 1.4% to 38,237.79, and the broader TOPIX declined 0.4% to 2,724.70.
Trading conglomerates led gainers in Tokyo amid choppy trading after Warren Buffett-controlled Berkshire Hathaway increased its stake in Japanese trading houses.
Marubeni advanced 7.5% to ¥2,724.70, Mitsubishi Corp. jumped 8.8% to ¥2,589.0, and Itochu gained 6.7% to ¥6,551.0.
Semiconductor equipment makers declined, following the losses in New York in overnight trading ahead of Nvidia earnings later in the week.
Tokyo Electron declined 4.4% to ¥24,200.0, Advantest Corp. fell 6.5% to ¥9,000.0, and Disco Corp. decreased 6.7% to ¥42,780.0.
China Indexes Struggle After U.S. Restricts Chinese Investment
Li Chen
25 Feb, 2025
Hong Kong
Stock market indexes in China and Hong Kong extended losses of the week after investors questioned the recent revaluation of tech stocks amid euphoria surrounding the rapid adoption of artificial intelligence technology.
Stock market indexes in China and Hong Kong traded down for the second session in a row after surging in the previous week.
The Hang Seng index decreased 0.5%, the CSI 300 index dropped 0.6%, and the U.S. placed restrictions on Chinese investment in technology and infrastructure in the U.S.
The Hang Seng Tech index recovered from an earlier loss of as much as 4%, and the CSI 300 index trimmed losses in the session, but market sentiment remained weak.
The incoming U.S. presidential administration has chosen to impose tariffs on goods shipped by Chinese companies, which is a tax on imported goods, in the hopes that it will provide additional income to the federal government but will not shift manufacturing to the U.S.
Moreover, during the first administration of Trump, over the four years to 2020, China's exports to the U.S. rose more than fifty percent, despite higher trade barriers and the start of the tariff regime.
The import tax on Chinese and Asian goods will drive inflation higher, forcing the U.S. Federal Reserve to keep higher interest rates for longer, which could push the U.S. economy into a recession.
China Indexes and Stocks
The Hang Seng index declined 0.5% to 23,214.73, and the CSI 300 index dropped 0.6% to 3,947.74.
Alibaba Group Holding Ltd. decreased 3.5% to HK $130.90, Tencent Holdings dropped 2.4% to HK $485.20, and Baidu Inc. fell 3.5% to HK $86.20.
China Vanke Company dropped 1.9% to HK $5.99, Longfor Group Holdings declined 1.5% to HK $10.16, and Sun Hug Kai Properties eased 0.4% to HK $72.95.
China Indexes Struggle After U.S. Restricts Chinese Investment
Li Chen
25 Feb, 2025
Hong Kong
Stock market indexes in China and Hong Kong extended losses of the week after investors questioned the recent revaluation of tech stocks amid euphoria surrounding the rapid adoption of artificial intelligence technology.
Stock market indexes in China and Hong Kong traded down for the second session in a row after surging in the previous week.
The Hang Seng index decreased 0.5%, the CSI 300 index dropped 0.6%, and the U.S. placed restrictions on Chinese investment in technology and infrastructure in the U.S.
The Hang Seng Tech index recovered from an earlier loss of as much as 4%, and the CSI 300 index trimmed losses in the session, but market sentiment remained weak.
The incoming U.S. presidential administration has chosen to impose tariffs on goods shipped by Chinese companies, which is a tax on imported goods, in the hopes that it will provide additional income to the federal government but will not shift manufacturing to the U.S.
Moreover, during the first administration of Trump, over the four years to 2020, China's exports to the U.S. rose more than fifty percent, despite higher trade barriers and the start of the tariff regime.
The import tax on Chinese and Asian goods will drive inflation higher, forcing the U.S. Federal Reserve to keep higher interest rates for longer, which could push the U.S. economy into a recession.
China Indexes and Stocks
The Hang Seng index declined 0.5% to 23,214.73, and the CSI 300 index dropped 0.6% to 3,947.74.
Alibaba Group Holding Ltd. decreased 3.5% to HK $130.90, Tencent Holdings dropped 2.4% to HK $485.20, and Baidu Inc. fell 3.5% to HK $86.20.
China Vanke Company dropped 1.9% to HK $5.99, Longfor Group Holdings declined 1.5% to HK $10.16, and Sun Hug Kai Properties eased 0.4% to HK $72.95.
India Movers: Alkems Labs, Birlasoft, Cello World, Finolex Cables, Honasa Consumer, Reliance Infrastructure, Shalimar Paints, Zydus Lifesciences
Arun Goswami
25 Feb, 2025
Mumbai
The Sensex and Nifty indexes struggled to stay above the flatline, extended losses, and stayed at eight-month lows.
The Sensex index advanced by 0.4% to 74,743, and the Nifty index gained by 0.3% to 22,611.55.
On the Mumbai stock exchange, 14 stocks traded at their 52-week highs, and 93 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds inched lower to 6.7%, and the Indian rupee hovered near a record low and traded at 86.81 against the U.S. dollar.
Honasa Consumer Ltd. increased 0.2% to ₹223.85 after the beauty and personal care online retailer reported a slight increase in revenue and a 26% plunge in quarterly profit, from a year ago, respectively.
Consolidated revenue increased to ₹488.9 crore from ₹461.8 crore, after-tax profit dropped to ₹21.5 crore from ₹28.9 crore, and diluted earnings per share fell to 66 paisa from 90 paisa a year ago.
Reliance Infrastructure Limited rose 1.2% to ₹244 despite the infrastructure company reporting a seven-fold increase in net loss in the December quarter.
Consolidated revenue advanced to ₹5,129.1 crore from ₹4,717.1 crore, net loss expanded to ₹3,298.4 crore from ₹421.2 crore, and diluted losses per share advanced to ₹5.74 from 88 paise a year ago.
Shalimar Paints dropped 0.7% to ₹112.05,and the paint and varnish maker reported net loss expanded in the December quarter.
Consolidated revenue increased to ₹149 crore from ₹147.3 crore, net loss expanded to ₹23.98 crore from ₹11.54 crore, and diluted losses per share advanced to ₹2.86 from ₹1.40 a year ago.
Zydus Lifesciences Limited decreased 0.7% to ₹884.05, despite pharma healthcare providers reporting a slight increase in revenue and net income in the December quarter.
Consolidated revenue advanced to ₹2,593.4 crore from ₹2,478.1 crore, net income increased to ₹470.6 crore from ₹450.4 crore, and diluted earnings per share rose to ₹4.68 from ₹4.45 a year ago.
Birlasoft Ltd. fell 0.7% to ₹468 after the IT services company reported a slight increase in revenue and a 28% decline in profit in the December quarter.
Consolidated revenue increased to ₹1,383.4 crore from ₹1,371.1 crore, after-tax profit fell to ₹1,169 crore from ₹1,610 crore, and diluted earnings per share decreased to ₹4.15 from ₹5.73 a year ago.
Alkem Laboratories advanced 0.3% to ₹4,622.65 after the pharmaceutical company reported a slight increase in revenue and net income in the December quarter.
Consolidated revenue advanced to ₹3,467.2 crore from ₹3,417.5 crore, net income jumped to ₹640.7 crore from ₹604.2 crore, and diluted earnings per share rose to ₹52.34 from ₹49.76 a year ago.
Finolex Cables Limited gained 0.9% to ₹910.20 despite the electrical and telecommunication cable maker reporting a marginal decline in net income and revenue in the December quarter.
Consolidated revenue decreased to ₹1,226.8 crore from ₹1,266.7 crore, after-tax profit fell to ₹147.3 crore from ₹151 crore, and diluted earnings per share declined to ₹9.63 from ₹9.87 a year ago.
Cello World Limited advanced 0.7% to ₹592.95 after the consumer goods company reported an 81% jump in its earnings in the December quarter.
Consolidated revenue advanced to ₹296.3 crore from ₹264.6 crore, net income jumped to ₹26.6 crore from ₹14.7 crore, and diluted earnings per share rose to ₹1.23 from 69 paisa a year ago.
India Movers: Alkems Labs, Birlasoft, Cello World, Finolex Cables, Honasa Consumer, Reliance Infrastructure, Shalimar Paints, Zydus Lifesciences
Arun Goswami
25 Feb, 2025
Mumbai
The Sensex and Nifty indexes struggled to stay above the flatline, extended losses, and stayed at eight-month lows.
The Sensex index advanced by 0.4% to 74,743, and the Nifty index gained by 0.3% to 22,611.55.
On the Mumbai stock exchange, 14 stocks traded at their 52-week highs, and 93 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds inched lower to 6.7%, and the Indian rupee hovered near a record low and traded at 86.81 against the U.S. dollar.
Honasa Consumer Ltd. increased 0.2% to ₹223.85 after the beauty and personal care online retailer reported a slight increase in revenue and a 26% plunge in quarterly profit, from a year ago, respectively.
Consolidated revenue increased to ₹488.9 crore from ₹461.8 crore, after-tax profit dropped to ₹21.5 crore from ₹28.9 crore, and diluted earnings per share fell to 66 paisa from 90 paisa a year ago.
Reliance Infrastructure Limited rose 1.2% to ₹244 despite the infrastructure company reporting a seven-fold increase in net loss in the December quarter.
Consolidated revenue advanced to ₹5,129.1 crore from ₹4,717.1 crore, net loss expanded to ₹3,298.4 crore from ₹421.2 crore, and diluted losses per share advanced to ₹5.74 from 88 paise a year ago.
Shalimar Paints dropped 0.7% to ₹112.05,and the paint and varnish maker reported net loss expanded in the December quarter.
Consolidated revenue increased to ₹149 crore from ₹147.3 crore, net loss expanded to ₹23.98 crore from ₹11.54 crore, and diluted losses per share advanced to ₹2.86 from ₹1.40 a year ago.
Zydus Lifesciences Limited decreased 0.7% to ₹884.05, despite pharma healthcare providers reporting a slight increase in revenue and net income in the December quarter.
Consolidated revenue advanced to ₹2,593.4 crore from ₹2,478.1 crore, net income increased to ₹470.6 crore from ₹450.4 crore, and diluted earnings per share rose to ₹4.68 from ₹4.45 a year ago.
Birlasoft Ltd. fell 0.7% to ₹468 after the IT services company reported a slight increase in revenue and a 28% decline in profit in the December quarter.
Consolidated revenue increased to ₹1,383.4 crore from ₹1,371.1 crore, after-tax profit fell to ₹1,169 crore from ₹1,610 crore, and diluted earnings per share decreased to ₹4.15 from ₹5.73 a year ago.
Alkem Laboratories advanced 0.3% to ₹4,622.65 after the pharmaceutical company reported a slight increase in revenue and net income in the December quarter.
Consolidated revenue advanced to ₹3,467.2 crore from ₹3,417.5 crore, net income jumped to ₹640.7 crore from ₹604.2 crore, and diluted earnings per share rose to ₹52.34 from ₹49.76 a year ago.
Finolex Cables Limited gained 0.9% to ₹910.20 despite the electrical and telecommunication cable maker reporting a marginal decline in net income and revenue in the December quarter.
Consolidated revenue decreased to ₹1,226.8 crore from ₹1,266.7 crore, after-tax profit fell to ₹147.3 crore from ₹151 crore, and diluted earnings per share declined to ₹9.63 from ₹9.87 a year ago.
Cello World Limited advanced 0.7% to ₹592.95 after the consumer goods company reported an 81% jump in its earnings in the December quarter.
Consolidated revenue advanced to ₹296.3 crore from ₹264.6 crore, net income jumped to ₹26.6 crore from ₹14.7 crore, and diluted earnings per share rose to ₹1.23 from 69 paisa a year ago.
S&P 500 Extends Losses Amid White House Chaos Fueling Stagflation Scenario
Barry Adams
24 Feb, 2025
New York City
Stock market indexes in New York extended Friday's losses amid worries of economic slowdown and rising inflation, driven by the Trump administration's drive to cut costs and pass on savings to wealthy donors.
World markets halted a multi-week rally after investors began to factor in the implications of higher tariffs on inflation and a sharp slowdown in private sector activities in February.
Businesses of all sizes are worried that the latest barrage of firing federal workers and imposing an import tax on all manufactured goods shipped from Europe and Asia will begin to negatively impact consumer demand.
Constant policy flip-flops and lack of stability in the White House, compounded by weak presidential administration, have kept multinational businesses worried about the erosion of U.S. competitiveness in the long term.
Also, the lack of immediate resolution on the Russia-Ukraine conflict also weighed on bond yields and commodity markets.
Market mood soured on Wall Street after the latest FOMC meeting minutes confirmed that policymakers are not ready to lower rates unless inflation is on a sustainable downward path.
The slowdown in U.S. private sector activities in February, driven by uncertainty related to federal government policies, also weighed on the market, extending weekly losses and halting a five-week market rally.
Earnings dominated local stock markets around the world, as several leading companies reported results this week.
In the week ahead, the U.S. statistical agency is set to confirm its second estimate of the fourth quarter GDP growth at 2.3%.
International goods trade balance, new home sales, and durable goods orders are also expected to confirm a sustained slowdown in economic activities.
On the earnings front, investors are awaiting results from Nvidia, Salesforce, Home Depot, Lowe’s, and TJX Companies.
U.S. Commodities, Currencies, Indexes, Yields
The S&P 500 index decreased 0.3% to 5,995.07, the Nasdaq Composite edged down 0.8% to 19,364.47, and the Russell 2000 index was down 0.1% to 2,194.01.
The yield on 2-year Treasury notes edged higher to 4.21%, 10-year Treasury notes decreased to 4.42%, and 30-year Treasury bonds declined to 4.67%.
WTI crude oil decreased $0.11 to $70.30 a barrel, and natural gas prices edged lower by $0.28 to $3.95 a thermal unit.
Gold increased by $4.37 to 2,938.05 an ounce, and silver edged down by $0.17 to $32.32.
The dollar index, which weighs the US currency against a basket of foreign currencies, increased 0.12 to 106.73 and traded at a two-year high.
U.S. Stock Movers
Apple Inc. decreased 0.5% to $243.31, and the popular smartphone maker said it plans to invest $500 billion in the U.S. in order to boost its artificial intelligence capabilities.
Robinhood Markets jumped 1.5% to $52.32 after the online trading platform operator said that the SEC is going to drop its investigation into its crypto unit.
Rivian Automotive Inc. eased 0.4% to $12.92 despite the electric vehicle manufacturer reporting revenue growth in the fourth quarter ending in December.
Revenue increased to $1.73 billion from $1.31 billion, net loss shrank to $744 million from a loss of $1.52 billion, and net loss per diluted share declined to 70 cents from a loss of $1.58 a year ago.
For fiscal 2025, the company estimated it would deliver between 46,000 and 51,000 vehicles, compared to 51,579 vehicles in 2024.
Capital expenditures are expected to be between $1.60 billion and $1.70 billion, compared to a negative $1.14 billion, and adjusted EBITDA is expected to be between $1.70 billion and $1.90 billion, compared to an EBITDA loss of $2.68 billion in 2024.
S&P 500 Extends Losses with Growing Possibilities of Stagflation Amid Whi
Barry Adams
24 Feb, 2025
New York City
Stock market indexes in New York extended Friday's losses amid worries of economic slowdown and rising inflation, driven by the Trump administration's drive to cut costs and pass on savings to wealthy donors.
World markets halted a multi-week rally after investors began to factor in the implications of higher tariffs on inflation and a sharp slowdown in private sector activities in February.
Businesses of all sizes are worried that the latest barrage of firing federal workers and imposing an import tax on all manufactured goods shipped from Europe and Asia will begin to negatively impact consumer demand.
Constant policy flip-flops and lack of stability in the White House, compounded by weak presidential administration, have kept multinational businesses worried about the erosion of U.S. competitiveness in the long term.
Also, the lack of immediate resolution on the Russia-Ukraine conflict also weighed on bond yields and commodity markets.
Market mood soured on Wall Street after the latest FOMC meeting minutes confirmed that policymakers are not ready to lower rates unless inflation is on a sustainable downward path.
The slowdown in U.S. private sector activities in February, driven by uncertainty related to federal government policies, also weighed on the market, extending weekly losses and halting a five-week market rally.
Earnings dominated local stock markets around the world, as several leading companies reported results this week.
In the week ahead, the U.S. statistical agency is set to confirm its second estimate of the fourth quarter GDP growth at 2.3%.
International goods trade balance, new home sales, and durable goods orders are also expected to confirm a sustained slowdown in economic activities.
On the earnings front, investors are awaiting results from Nvidia, Salesforce, Home Depot, Lowe’s, and TJX Companies.
U.S. Commodities, Currencies, Indexes, Yields
The S&P 500 index decreased 0.3% to 5,995.07, the Nasdaq Composite edged down 0.8% to 19,364.47, and the Russell 2000 index was down 0.1% to 2,194.01.
The yield on 2-year Treasury notes edged higher to 4.21%, 10-year Treasury notes decreased to 4.42%, and 30-year Treasury bonds declined to 4.67%.
WTI crude oil decreased $0.11 to $70.30 a barrel, and natural gas prices edged lower by $0.28 to $3.95 a thermal unit.
Gold increased by $4.37 to 2,938.05 an ounce, and silver edged down by $0.17 to $32.32.
The dollar index, which weighs the US currency against a basket of foreign currencies, increased 0.12 to 106.73 and traded at a two-year high.
U.S. Stock Movers
Apple Inc. decreased 0.5% to $243.31, and the popular smartphone maker said it plans to invest $500 billion in the U.S. in order to boost its artificial intelligence capabilities.
Robinhood Markets jumped 1.5% to $52.32 after the online trading platform operator said that the SEC is going to drop its investigation into its crypto unit.
Rivian Automotive Inc. eased 0.4% to $12.92 despite the electric vehicle manufacturer reporting revenue growth in the fourth quarter ending in December.
Revenue increased to $1.73 billion from $1.31 billion, net loss shrank to $744 million from a loss of $1.52 billion, and net loss per diluted share declined to 70 cents from a loss of $1.58 a year ago.
For fiscal 2025, the company estimated it would deliver between 46,000 and 51,000 vehicles, compared to 51,579 vehicles in 2024.
Capital expenditures are expected to be between $1.60 billion and $1.70 billion, compared to a negative $1.14 billion, and adjusted EBITDA is expected to be between $1.70 billion and $1.90 billion, compared to an EBITDA loss of $2.68 billion in 2024.
U.S. Movers: Apple, Live Nation Entertainment, Pool Corp., Rivian Automotive, Robinhood Markets
Scott Peters
24 Feb, 2025
New York City
Live Nation Entertainment Inc. dropped 1.9% to $149.40 after the ticket sales company reported lower revenue for the fourth quarter ending in December, impacted by weak concert sales.
Revenue declined to $5.68 billion from $5.82 billion, and consolidated operating loss expanded to $239.4 million from a loss of $81.5 million a year ago.
Revenue in full year 2024 increased to $23.15 billion from $22.73 billion, net income rose to $896.29 million from $556.89 million, and earnings per diluted share jumped to $2.74 from $1.34 a year ago.
For the first quarter of 2025, the company estimated revenue between $3.18 billion and $4.09 billion, compared to $3.8 billion in the same period in 2024.
Rivian Automotive Inc. eased 0.4% to $12.92 despite the electric vehicle manufacturer reporting revenue growth in the fourth quarter ending in December.
Revenue increased to $1.73 billion from $1.31 billion, net loss shrank to $744 million from a loss of $1.52 billion, and net loss per diluted share declined to 70 cents from a loss of $1.58 a year ago.
For fiscal 2025, the company estimated it would deliver between 46,000 and 51,000 vehicles, compared to 51,579 vehicles in 2024.
Capital expenditures are expected to be between $1.60 billion and $1.70 billion, compared to a negative $1.14 billion, and adjusted EBITDA is expected to be between $1.70 billion and $1.90 billion, compared to an EBITDA loss of $2.68 billion in 2024.
Pool Corp. eased 0.1% to $344.0 after the swimming pool equipment provider reported lower revenue in the fourth quarter ending in December.
Net sales decreased to $987.49 million from $1.00 billion, net income declined to $37.30 million from $51.44 million, and earnings per diluted share fell to 98 cents from $1.32 a year ago.
For fiscal 2025, the company estimated earnings per share between $11.08 and $11.58, compared to $11.30 per share in 2024, and a gross margin between 29.7% and 30.0%, compared to 29.7% in 2024.
Robinhood Markets jumped 1.5% to $52.32 after the online trading platform operator said that the SEC is going to drop its investigation into its crypto unit.
Apple Inc. decreased 0.5% to $243.31, and the popular smartphone maker said it plans to invest $500 billion in the U.S. in order to boost its artificial intelligence capabilities.
U.S. Movers: Apple, Live Nation Entertainment, Pool Corp., Rivian Automotive, Robinhood Markets
Scott Peters
24 Feb, 2025
New York City
Live Nation Entertainment Inc. dropped 1.9% to $149.40 after the ticket sales company reported lower revenue for the fourth quarter ending in December, impacted by weak concert sales.
Revenue declined to $5.68 billion from $5.82 billion, and consolidated operating loss expanded to $239.4 million from a loss of $81.5 million a year ago.
Revenue in full year 2024 increased to $23.15 billion from $22.73 billion, net income rose to $896.29 million from $556.89 million, and earnings per diluted share jumped to $2.74 from $1.34 a year ago.
For the first quarter of 2025, the company estimated revenue between $3.18 billion and $4.09 billion, compared to $3.8 billion in the same period in 2024.
Rivian Automotive Inc. eased 0.4% to $12.92 despite the electric vehicle manufacturer reporting revenue growth in the fourth quarter ending in December.
Revenue increased to $1.73 billion from $1.31 billion, net loss shrank to $744 million from a loss of $1.52 billion, and net loss per diluted share declined to 70 cents from a loss of $1.58 a year ago.
For fiscal 2025, the company estimated it would deliver between 46,000 and 51,000 vehicles, compared to 51,579 vehicles in 2024.
Capital expenditures are expected to be between $1.60 billion and $1.70 billion, compared to a negative $1.14 billion, and adjusted EBITDA is expected to be between $1.70 billion and $1.90 billion, compared to an EBITDA loss of $2.68 billion in 2024.
Pool Corp. eased 0.1% to $344.0 after the swimming pool equipment provider reported lower revenue in the fourth quarter ending in December.
Net sales decreased to $987.49 million from $1.00 billion, net income declined to $37.30 million from $51.44 million, and earnings per diluted share fell to 98 cents from $1.32 a year ago.
For fiscal 2025, the company estimated earnings per share between $11.08 and $11.58, compared to $11.30 per share in 2024, and a gross margin between 29.7% and 30.0%, compared to 29.7% in 2024.
Robinhood Markets jumped 1.5% to $52.32 after the online trading platform operator said that the SEC is going to drop its investigation into its crypto unit.
Apple Inc. decreased 0.5% to $243.31, and the popular smartphone maker said it plans to invest $500 billion in the U.S. in order to boost its artificial intelligence capabilities.
Conservatives In Germany to Lead Coalition Government, Far-Right Party Makes Significant Gain
Bridgette Randall
24 Feb, 2025
London
European markets edged higher as investors digested the results of the latest general election in Germany, and bond market yields stayed elevated.
Benchmark indexes in Frankfurt and London edged higher, and in Paris and Milan, they struggled to stay above the flatline in Monday's trading.
Investors generally welcomed the German election results, and the Christian Democratic Union's leader, Friedrich Merz, will head the next coalition government.
Germany's far-right party AfD made significant gains in the general election and increased its share to 20.8% of the votes, nearly doubling its support.
On the economic front, investors are awaiting inflation reports from the eurozone, Germany, France, Italy, and Spain.
On the earnings front this week, investors are looking for forward to results from Smith & Nephew, AXA, Swiss Re, Pearson plc, Allianz, Holcim BASF, Rolls Royce, Saint-Gobain and Telefonica.
Europe Indexes and Yields
The DAX index increased by 0.7% to 22,442.25, the CAC-40 index edged lower 0.2% to 8,138.91, and the FTSE 100 index advanced by 0.3% to 8,683.27.
The yield on 10-year German bonds inched higher to 2.46%, French bonds decreased to 3.21%, the UK gilts moved down to 4.56%, and Italian bonds edged lower to 3.54%.
The euro increased to $1.05; the British pound was higher at $1.26; and the U.S. dollar was lower and traded at 89.88 Swiss cents.
Brent crude decreased $0.03 to $74.40 a barrel, and the Dutch TTF natural gas was higher by €0.49 to €46.40 per MWh.
Europe Stock Movers
Just Eat Takeaway.com NV soared 54% to €19.20 after the Dutch investment company Prosus NV said it plans to acquire the company for €4.1 billion.
BayWa AG declined 2.5% to €8.58, and the Swiss investment group Energy Infrastructure Partners said it plans to increase its stake in the company to 65% from 49%.
GSK plc increased 1.3% to 1,447.50 pence after the UK-based pharmacy company launched its £2 billion stock repurchase plan.
National Grid plc increased 7.5% to 972.20 pence, and the UK-based company agreed to sell its onshore renewable assets in the U.S. to Brookfield Asset Management.
B&M European Value Retail SA decreased 9.2% to 264.23 pence, and the deep discount store chain operator said its chief executive will retire at the end of April.
The retailer also lowered its annual core profit outlook.
Conservatives In Germany to Lead Coalition Government, Far-Right Party Makes Significant Gain
Bridgette Randall
24 Feb, 2025
London
European markets edged higher as investors digested the results of the latest general election in Germany, and bond market yields stayed elevated.
Benchmark indexes in Frankfurt and London edged higher, and in Paris and Milan, they struggled to stay above the flatline in Monday's trading.
Investors generally welcomed the German election results, and the Christian Democratic Union's leader, Friedrich Merz, will head the next coalition government.
Germany's far-right party AfD made significant gains in the general election and increased its share to 20.8% of the votes, nearly doubling its support.
On the economic front, investors are awaiting inflation reports from the eurozone, Germany, France, Italy, and Spain.
On the earnings front this week, investors are looking for forward to results from Smith & Nephew, AXA, Swiss Re, Pearson plc, Allianz, Holcim BASF, Rolls Royce, Saint-Gobain and Telefonica.
Europe Indexes and Yields
The DAX index increased by 0.7% to 22,442.25, the CAC-40 index edged lower 0.2% to 8,138.91, and the FTSE 100 index advanced by 0.3% to 8,683.27.
The yield on 10-year German bonds inched higher to 2.46%, French bonds decreased to 3.21%, the UK gilts moved down to 4.56%, and Italian bonds edged lower to 3.54%.
The euro increased to $1.05; the British pound was higher at $1.26; and the U.S. dollar was lower and traded at 89.88 Swiss cents.
Brent crude decreased $0.03 to $74.40 a barrel, and the Dutch TTF natural gas was higher by €0.49 to €46.40 per MWh.
Europe Stock Movers
Just Eat Takeaway.com NV soared 54% to €19.20 after the Dutch investment company Prosus NV said it plans to acquire the company for €4.1 billion.
BayWa AG declined 2.5% to €8.58, and the Swiss investment group Energy Infrastructure Partners said it plans to increase its stake in the company to 65% from 49%.
GSK plc increased 1.3% to 1,447.50 pence after the UK-based pharmacy company launched its £2 billion stock repurchase plan.
National Grid plc increased 7.5% to 972.20 pence, and the UK-based company agreed to sell its onshore renewable assets in the U.S. to Brookfield Asset Management.
B&M European Value Retail SA decreased 9.2% to 264.23 pence, and the deep discount store chain operator said its chief executive will retire at the end of April.
The retailer also lowered its annual core profit outlook.
Europe Movers: BayWa, Just Eat Takeaway.com, Modi, Prosus, Scandic Hotels,
Inga Muller
24 Feb, 2025
Frankfurt
European markets advanced amid optimism about German elections and a rally in defense stocks.
Europe Indexes and Yields
The DAX index increased by 0.7% to 22,442.25, the CAC-40 index edged lower 0.2% to 8,138.91, and the FTSE 100 index advanced by 0.3% to 8,683.27.
The yield on 10-year German bonds inched higher to 2.46%, French bonds decreased to 3.21%, the UK gilts moved down to 4.56%, and Italian bonds edged lower to 3.54%.
The euro increased to $1.05; the British pound was higher at $1.26; and the U.S. dollar was lower and traded at 89.88 Swiss cents.
Brent crude decreased $0.03 to $74.40 a barrel, and the Dutch TTF natural gas was higher by €0.49 to €46.40 per MWh.
Recent Earnings Movers
Leonardo DRS Inc. plunged 7.5% to $28.85 despite the Italian aerospace and security company reporting a revenue increase in the fourth quarter ending in December.
Revenue climbed 6% to $981 million from $926 million, net earnings climbed 20% to $89 million from $74 million, and earnings per diluted share rose to 33 cents from 28 cents a year ago.
Bookings amounted to $1.27 billion from $1.01 billion a year earlier.
Leonardo DRS received $1.3 billion in new funded contract awards during the fourth quarter and $4.1 billion for the full year.
For fiscal 2025, the company estimated revenue between $3.42 billion and $3.52 billion, compared to $3.23 billion in 2024, and adjusted earnings per diluted share between $1.02 and $1.08, compared to 93 cents last year.
Adjusted EBITDA is expected to be between $435 million and $455 million, compared to $400 million in 2024.
The company plans to repurchase $75 million in outstanding shares, or up to 0.9% of its stock, through open market repurchases.
In addition, Leonardo DRS proposed a dividend of 9 cents a share, payable on March 27 to shareholders on record as of March 13.
This represents a dividend of 36 cents per share on an annualized basis and a yield of 1.25%, with the ex-dividend date March 13 and a payout ratio of 45.57%.
Scandic Hotels Group AB eased 0.4% to 85.65 krona after the Swedish hotel chain operator reported a slight increase in revenue for the October-December quarter.
Net sales increased 1.4% to SEK 5.49 billion from SEK 5.41 billion, net profit surged to SEK 132 million from SEK 41 million, and earnings per share rose to 60 cents from 27 cents a year ago.
Earlier this year, the company repurchased 195,000 of its shares as part of its share buyback program worth SEK 300 million.
The share buyback program runs between December 9, 2924, and March 31, 2025.
Mondi Plc. eased 2.1% to 1,238 pence after the UK-based packaging and paper group reported strong results for fiscal 2024 ending in December.
Revenue increased to €7.42 billion from €7.33 billion, net income surged to €218 million from a loss of €153 million, and earnings per diluted share rose to 49.1 cents from a loss of 31.5 cents a year ago.
The company proposed a final dividend of 46.67 cents per share for a total of €206 million, payable on May 16 to shareholders on the register as of April 4.
Last year, Mondi paid total ordinary and special dividends worth €1.08 billion, compared to €345 million in 2023.
The company returned the net proceeds from the sale of its Russian assets to shareholders by way of a special dividend of €1.60 per existing ordinary share.
Mondi said that its acquisition of packaging assets from Schumacher Packaging GmbH for €634 million is on track to complete in the first half of 2025.
Societe Bic SA increased 0.3% to €61.02 after the French disposable items maker reported lower revenue in the fourth quarter ending in December.
Net sales declined to €517.5 million from €526.1 million, net income fell to €27.0 million from €45.1 million, and group earnings per share dropped to 65 cents from €1.05 a year ago.
For fiscal 2025, the company estimated net sales growth between 4% and 6% at constant currency and an adjusted EBIT margin at 15.6%, the same level as in 2024.
BIC proposed a dividend of 3.08 per share, up 8% from 2023, and worth €127 million.
In addition, the company plans a share buyback program of up to €40 million, to be executed in 2025.
Europe Movers: BayWa, Just Eat Takeaway.com, Modi, Prosus, Scandic Hotels,
Inga Muller
24 Feb, 2025
Frankfurt
China Investors Debate Valuations Amid Rally In AI-Driven Stocks
Li Chen
24 Feb, 2025
Hong Kong
Stock market indexes in Hong Kong and China edged lower in Monday's trading after surging in the previous session.
The Hang Seng index declined 0.6%, and the CSI 300 index eased 0.2%, and investors debated earnings outlook and stretched valuation for tech companies.
The Hang Seng Index and the tech index jumped 4% and more than 6% in Friday's trading amid strong demand from foreign investors and institutional investors from the mainland.
Investors have been chasing internet platform operators in the hopes that the affordable artificial intelligence technology from Deep Seek will provide another cycle of revenue and earnings growth.
Moreover, investors welcomed Alibaba Group's announcement to invest as much as $53 billion in artificial intelligence technology and tools over the next three years.
In the year so far, to Monday's close, the CSI 300 index increased 4% and the Hang Seng index advanced 19%, and Hong Kong's benchmark index is leading world markets in 2025.
China Indexes and Stocks
The Hang Seng index decreased 0.6% to 23,341.61, and the CSI 300 index dropped 0.2% to 3,969.72.
Tech stocks were in focus in Hong Kong and Shanghai trading.
Alibaba Group decreased 2% to HK $135.70, Tencent Holdings declined 4% to HK $497.20, and Badu Inc. was unchanged at HK $89.50.
China Investors Debate Valuations Amid Rally In AI-Driven Stocks
Li Chen
24 Feb, 2025
Hong Kong
Stock market indexes in Hong Kong and China edged lower in Monday's trading after surging in the previous session.
The Hang Seng index declined 0.6%, and the CSI 300 index eased 0.2%, and investors debated earnings outlook and stretched valuation for tech companies.
The Hang Seng Index and the tech index jumped 4% and more than 6% in Friday's trading amid strong demand from foreign investors and institutional investors from the mainland.
Investors have been chasing internet platform operators in the hopes that the affordable artificial intelligence technology from Deep Seek will provide another cycle of revenue and earnings growth.
Moreover, investors welcomed Alibaba Group's announcement to invest as much as $53 billion in artificial intelligence technology and tools over the next three years.
In the year so far, to Monday's close, the CSI 300 index increased 4% and the Hang Seng index advanced 19%, and Hong Kong's benchmark index is leading world markets in 2025.
China Indexes and Stocks
The Hang Seng index decreased 0.6% to 23,341.61, and the CSI 300 index dropped 0.2% to 3,969.72.
Tech stocks were in focus in Hong Kong and Shanghai trading.
Alibaba Group decreased 2% to HK $135.70, Tencent Holdings declined 4% to HK $497.20, and Badu Inc. was unchanged at HK $89.50.