Market Update
Hang Seng Index Extended 5-day Rally, Mainland China Indexes Struggled Amid Weak Earnings Outlook
Li Chen
13 Aug, 2024
Hong Kong
Benchmark indexes in Shanghai and Hong Kong struggled to advance amid ongoing economic growth worries and mixed corporate performance.
The Hang Seng Index added 0.2%, but the CSI 300 index edged down 0.2% as investors awaited the release of a flood of economic data later in the week.
The Hang Seng index extended gains for the fifth session in a row, and the benchmark index rebounded but hovered near its three-month low.
Moreover, trading contracted on the Hong Kong Stock Exchange, and stock trading volume dropped to a six-month low of HK $70.3 billion or US$9 billion on Monday, according to the data available from the exchange.
China's statistics bureau is scheduled to release retail sales, industrial output, fixed asset investment, and home price data later in the week.
Market sentiment has been cautious after consumer price inflation advanced for the sixth month in a row in July, but producer price inflation declined for the 22nd month in a row, confirming the deflation trend.
Investors are also worried that the recent gains in exports may come to a halt in the second half as punitive tariffs kick in in the U.S. and Europe, contributing to the economic slowdown in the period.
China Stock Movers
The Hang Seng index increased 0.3% to 17,155.99, and the CSI 300 index fell 0.2% to 3,320.61.
Tencent Holdings jumped 1% to HK $378.60, and the diversified Internet services provider is scheduled to release its earnings on Wednesday.
Investors are estimating earnings to jump more than 50% in the second quarter compared to a year ago.
Country Garden Services decreased 5.5% to HK $4.44, and the company said profit in the first half declined 37% from a year ago to 1.7 billion yuan, or $237 million.
Country Garden Services estimated first-half revenue between 20.9 billion yuan and 21.2 billion yuan and net income between 1.47 billion yuan and 1.65 billion yuan.
The company said it lowered its revenue estimate because of property market weakness and reduced investment income.
Despite the current market weakness, the company expects over $12.2 billion in cash reserves at the end of the first half, as it plans to tighten its risk management and cut costs to improve profitability.
India Movers: Balrampur Chini, Hindustan Copper, IRFC, NMDC, Power Grid
Arun Goswami
13 Aug, 2024
Mumbai
Consumer price inflation slowed in July because of a higher food price base effect, and industrial output slowed in June, driven by a slowdown in government spending during the national election period.
The Sensex index decreased by 0.2% to 79,504.21, and the Nifty index fell 0.2% to 24,301.20.
On the Mumbai stock exchange, 122 stocks traded at their 52-week highs, and 10 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds inched lower to 6.88%, and the Indian rupee weakened to ₹83.95 against the U.S. dollar.
Power Grid Corporation increased 0.3% to ₹342.0, and the company said it won a contract to build and operate a power transmission network connecting Rajasthan REZ Phase II for a 20 GW power supply.
Balrampur Chini Mills gained 0.2% to ₹497.15, and the sugar producer reported a decline in profit in the June quarter because of the shortage of sugarcane crops.
Revenue increased 2.3% to ₹1,421.6 crore from ₹1,389.6 crore, but net income declined 4.6% to ₹70.2 crore from ₹73.50 crore a year ago.
Hindustan Copper added 4.2% to ₹315.45, and the mining company said consolidated net income in the June quarter more than doubled.
Revenue increased to ₹500.4 crore from ₹384.7 crore, and net income soared to ₹113.4 crore from ₹47.3 crore a year ago, respectively.
NMDC advanced 1% to ₹232.09, and the iron ore mining company reported flat consolidated revenue in the June quarter.
Demand for iron ore was driven by higher infrastructure spending by the government.
Revenue stood at ₹5,414.2 crore, and net income increased 19% to ₹1,971 crore from ₹1,652.2 crore a year ago.
IRFC gained 2.2% to ₹188.52, and the railway finance company reported a slight increase in earnings in the June quarter.
Revenue increased 1.4% to ₹6,765.63 crore from ₹6,673.87 crore, and net income advanced 1.6% to ₹1,576.83 crore from ₹1,551.27 crore a year ago, respectively.
U.S. and World Markets Remain Unsettled Ahead of Key Economic Reports
Alexander Garcia
12 Aug, 2024
Miami
Market indexes in New York struggled to extend gains after a week of wild gyration and heightened volatility.
Earlier in previous the week, benchmark indexes extended the previous week's losses to 10%, but they recovered and reversed all losses as market sentiment stabilized.
Last week's global market rout was rooted in worries about the U.S. economic slowdown after nonfarm payrolls in July rose at a slower than expected pace and the tightening of labor market conditions.
However, market sentiment recovered after initial jobless claims fell more than expected, suggesting the labor market is still healthier than previously estimated.
This week, investors are looking forward to the release of producer price inflation on Tuesday, consumer price inflation on Wednesday, and retail sales on Thursday.
Investors are hoping that the Federal Reserve is set to start the rate-cut cycle with the first cut after the September meeting; however, those hopes may be dashed if inflation stays near or above 3%, as it has for several months now.
Federal Reserve Chair Jerome Powell has confirmed after the latest policy meeting that policymakers are open to trimming interest rates if inflation continues to follow a downward path to its target rate of 2%.
However, despite multiple rate hikes over 2022 and 2023, inflation has slowed from as high as nearly 9% to 3%.
July’s consumer price inflation is estimated at 2.9%, and core inflation is estimated to stay near 3.2%, higher than the Fed’s target rate of 2%.
Retail sales, unadjusted for inflation but adjusted for calendar and seasonal factors, in July are likely to expand by 0.3%.
U.S. Indexes and Treasury Yields
The S&P 500 index gained 0.2% to 5,354.41, the Nasdaq Composite advanced 0.5% to 16,829.33, and the Russell 2000 index declined 1.0% to 2,059.10.
The yield on 2-year Treasury notes edged higher to 4.08%, 10-year Treasury notes increased to 3.96%, and 30-year Treasury bonds inched lower to 4.24%.
WTI crude oil increased $2.31 to $79.15 a barrel, and natural gas prices edged up 4 cents to $2.18 a thermal unit.
Gold increased by $33.84 to $2,464.44 an ounce, and silver increased by $0.48 to $27.93.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 103.16.
U.S. Stock Movers
Starbucks increased 2.3% to $76.82 after The Wall Street Journal reported that activist investor Starboard Value acquired a stake in a coffee retail store chain to seek a higher stock price.
JetBlue Airways dropped 10.8% to $5.41, and the regional airline said it plans to issue $400 million of convertible senior notes in 2029.
KeyCorp jumped 16.6% to $17.04, and The Bank of Nova Scotia acquired a 14.9% stake in the Cleveland-based bank for $2.8 billion in cash.
European Indexes Trim Early Gains Amid Rate Path Anxieties
European markets attempted to shake off economic growth anxieties after a week of wild gyrations.
Benchmark indexes in London, Paris, and Frankfurt traded around flatline as investors looked forward to the release of key economic data in the U.S. and Europe later in the week.
The Euro Area’s second-quarter GDP is expected to grow by 0.3%, as confirmed by the second estimate scheduled to be released next week, and the international trade balance in the Eurozone is expected to show a modest increase in its surplus.
In the UK, investors are looking forward to the release of second-quarter GDP growth of 0.6%, and the jobless rate is estimated at 4.5%.
In the U.S., consumer price and producer price inflation reports and retail sales updates are expected to shed more light on the future interest rate course.
July’s consumer price inflation is estimated at 2.9%, and core inflation is estimated to stay near 3.2%, higher than the Fed’s target rate of 2%.
Retail sales, unadjusted for inflation but adjusted for calendar and seasonal factors, in July are likely to expand by 0.3%.
In the absence of economic data, investors reacted to the latest corporate earnings announcements from Hanover Re, Munich Re, L'Occitane, Remy Cointreau, British Land Company, and Severn Trent.
Europe Indexes and Yields
The DAX index increased by 0.02% to 17,726.47; the CAC-40 index fell by 0.3% to 7,250.67; and the FTSE 100 index advanced by 0.5% to 8,210.25.
The yield on 10-year German bonds edged higher to 2.24%, French bonds inched higher to 2.99%, the UK gilts inched higher to 3.96%, and Italian bonds inched up to 3.66%.
The euro edged down to $1.09; the British pound inched lower to $1.272; and the U.S. dollar weakened to 86.92 Swiss cents.
Brent crude increased $1.59 to $81.55 a barrel, and the Dutch TTF natural gas fell by €0.15 to €39.91 per MWh.
Europe Stock Movers
Hanover Re rose 4.7% to €226.30, and the reinsurance company reported higher sales and earnings and confirmed its annual outlook.
Munich Re gained 1.2% to €440.0, and the German reinsurance company reported better-than-expected second quarter sales and earnings.
Revenue increased 12% to €15.4 billion, and net income soared 41% to €1.62 billion, driven by a higher profit margin of 11% compared to 8.4% a year ago.
China-linked luxury stocks traded down amid ongoing economic slowdown worries and a protracted property market slump.
Kering SA dropped 1.4% to €250.90, LVMH decreased 0.01% to €636.10, and Remy Cointreau fell 1% to €70.45.
Land Securities Group decreased 0.3% to 618.50 pence, and British Land Company declined 0.6% to 395.0 pence.
Investors Brace for Volatile Yen Amid BoJ's Reluctance to Lift Rates
Benchmark indexes in Japan rebounded in Friday's trading as market sentiment stabilized after a week of wild swings, sharp declines, and rebounds.
Financial markets are closed on Monday to celebrate the Mountain Day holiday.
In Friday's trading, the Nikkei 225 stock average gained 0.6% and the Topix index jumped close to 1% as investors reassessed the future rate path and its implications for the yen.
The yen traded at 147.23 against the U.S. dollar after the Bank of Japan's unexpected rate increase lifted the currency to an eight-month high last week.
Despite the two-day rebound in stock market indexes, investors are expecting the yen to resume its slide toward the 160 level because of the yawning gap between Japan and U.S. government bond yields.
Moreover, corporate earnings have been in focus as investors look forward to the release of quarterly results from leading industrial and financial companies later this week.
On the economic front, investors are looking ahead to the release of Japan’s second quarter GDP to show a slight pick-up from the first quarter, driven by an increase in exports and higher domestic demand for industrial goods.
Japan Stock Movers
The Nikkei 225 stock average increased 0.6% to 35,025.0, and the Topix index gained 0.9% to 2,483.30.
Technology and chip-related stocks led the gainers in Monday's trading as investors returned to increase exposure to advanced semiconductor equipment makers.
Advantest, Screen Holdings, and Lasertec fell between 0.5% and 0.9%, but Tokyo Electron advanced 0.7%.
Toyota Motor and Nissan Motor declined 0.5%, and Honda Motor advanced 0.3% in muted trading on Friday.
China Stocks Resume Downward Slide
Stocks in Hong Kong and Shanghai struggled to advance in Monday's trading as investors awaited key economic data later in the week.
The Hang Seng index and the CSI 300 index traded around the flatline amid hopes of more policy support from the People's Bank of China.
Retail sales in July are expected to show an increase of 2.5%, and industrial output is likely to increase more than 5%, according to an informal survey of nine economists in Shanghai and Hong Kong conducted by Ticker.com.
Chinese stocks have been under pressure, and benchmark indexes have erased this year's gains amid persistent worries about weak consumer demand growth, the protracted real estate market crisis, and the uneven and fragile economic recovery.
The People's Bank of China is expected to cut its reserve ratio for banks by 25 basis points to facilitate the sale of long-term bonds by the Chinese government.
Corporate earnings so far in the quarter have lagged market expectations amid weak domestic demand growth and falling investment in property-related industry sectors.
China's current account surplus narrowed to $54.9 billion in the second quarter from $59.3 billion in the corresponding quarter in the previous year, according to data released by the China's State Administration of Foreign Exchange.
The international goods surplus widened to $167.1 billion from $160.3 billion, but service deficit widened to $61.7 billion from $49.2 billion in the period a year ago.
China Stock Movers
The Hang Seng index edged up 0.01% to 17,095.06, and the CSI 300 index decreased 0.1% to 3,327.74.
Guangzhou R&F Properties was nearly unchanged at HK 79 cents, and the real estate development company said in a filing with an exchange that its unit missed interest payments of $147 million.
The company said it is in negotiations with its lender to find a workable solution and may revise its future payment plans.
Galaxy Entertainment Group decreased 4.9% to HK$29.30 after local authorities planned to crackdown on unlicensed money exchange service providers for gambling.
Technology stocks traded volatile in Hong Kong following a muted rebound in Friday's trading in New York.
Alibaba Group jumped 0.8% to HK $78.45, Baidu decreased 1% to HK $82.35, and Meituan dropped 2.7% to $103.30.
Stocks On Wall Street Trade Volatile as Investors Yearn for Stability
Barry Adams
12 Aug, 2024
New York City
Stocks lacked direction in early trading on Monday as investors reassessed wild swings from the previous week.
Earlier in the week, benchmark indexes extended the previous week's losses to 10%, but they recovered and reversed all losses as market sentiment stabilized.
Last week's global market rout was rooted in worries about the U.S. economic slowdown after nonfarm payrolls in July rose at a slower than expected pace and the tightening of labor market conditions.
However, market sentiment recovered after initial jobless claims fell more than expected, suggesting the labor market is still healthier than previously estimated.
This week, investors are looking forward to the release of producer price inflation on Tuesday, consumer price inflation on Wednesday, and retail sales on Thursday.
Investors are hoping that the Federal Reserve is set to start the rate-cut cycle with the first cut after the September meeting; however, those hopes may be dashed if inflation stays near or above 3%, as it has for several months now.
Federal Reserve Chair Jerome Powell has confirmed after the latest policy meeting that policymakers are open to trimming interest rates if inflation continues to follow a downward path to its target rate of 2%.
However, despite multiple rate hikes over 2022 and 2023, inflation has slowed from as high as nearly 9% to 3%.
July’s consumer price inflation is estimated at 2.9%, and core inflation is estimated to stay near 3.2%, higher than the Fed’s target rate of 2%.
Retail sales, unadjusted for inflation but adjusted for calendar and seasonal factors, in July are likely to expand by 0.3%.
U.S. Indexes and Treasury Yields
The S&P 500 index gained 0.1% to 5,344.58, the Nasdaq Composite advanced 0.2% to 16,772.65, and the Russell 2000 index declined 0.2% to 2,080.92.
The yield on 2-year Treasury notes edged higher to 4.08%, 10-year Treasury notes increased to 3.96%, and 30-year Treasury bonds inched lower to 4.24%.
WTI crude oil increased $1.06 to $77.89 a barrel, and natural gas prices edged up 7 cents to $2.22 a thermal unit.
Gold increased by $14.09 to $2,444.67 an ounce, and silver increased by $0.38 to $27.82.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 103.25.
U.S. Stock Movers
Starbucks increased 2.3% to $76.82 after The Wall Street Journal reported that activist investor Starboard Value acquired a stake in a coffee retail store chain to seek a higher stock price.
JetBlue Airways dropped 10.8% to $5.41, and the regional airline said it plans to issue $400 million of convertible senior notes in 2029.
KeyCorp jumped 16.6% to $17.04, and The Bank of Nova Scotia acquired a 14.9% stake in the Cleveland-based bank for $2.8 billion in cash.
Europe Movers: British Land Company, Hannover Re, Land Securities, Luxury Stocks, Munich Re
Inga Muller
12 Aug, 2024
Frankfurt
European market indexes struggled to advance after a week of wild gyrations in global markets.
Hannover Re and Munch Re reported better-than-expected financial results.
The DAX index increased by 0.2% to 17,766.44; the CAC-40 index rose by 0.03% to 7,272.09; and the FTSE 100 index advanced by 0.6% to 8,214.71.
The yield on 10-year German bonds edged higher to 2.24%, French bonds inched higher to 2.99%, the UK gilts inched higher to 3.96%, and Italian bonds inched up to 3.66%.
Hanover Re rose 4.7% to €226.30, and the reinsurance company reported higher sales and earnings and confirmed its annual outlook.
Munich Re gained 1.2% to €440.0, and the German reinsurance company reported better-than-expected second quarter sales and earnings.
Revenue increased 12% to €15.4 billion, and net income soared 41% to €1.62 billion, driven by a higher profit margin of 11% compared to 8.4% a year ago.
China-linked luxury stocks traded down amid ongoing economic slowdown worries and a protracted property market slump.
Kering SA dropped 1.4% to €250.90, LVMH decreased 0.01% to €636.10, and Remy Cointreau fell 1% to €70.45.
Land Securities Group decreased 0.3% to 618.50 pence, and British Land Company declined 0.6% to 395.0 pence.
European Indexes Trim Early Gains Amid Rate Path Anxieties and Growth Worries
Bridgette Randall
12 Aug, 2024
London
European markets attempted to shake off economic growth anxieties after a week of wild gyrations.
Benchmark indexes in London, Paris, and Frankfurt traded around flatline as investors looked forward to the release of key economic data in the U.S. and Europe later in the week.
The Euro Area’s second-quarter GDP is expected to grow by 0.3%, as confirmed by the second estimate scheduled to be released next week, and the international trade balance in the Eurozone is expected to show a modest increase in its surplus.
In the UK, investors are looking forward to the release of second-quarter GDP growth of 0.6%, and the jobless rate is estimated at 4.5%.
In the U.S., consumer price and producer price inflation reports and retail sales updates are expected to shed more light on the future interest rate course.
July’s consumer price inflation is estimated at 2.9%, and core inflation is estimated to stay near 3.2%, higher than the Fed’s target rate of 2%.
Retail sales, unadjusted for inflation but adjusted for calendar and seasonal factors, in July are likely to expand by 0.3%.
In the absence of economic data, investors reacted to the latest corporate earnings announcements from Hanover Re, Munich Re, L'Occitane, Remy Cointreau, British Land Company, and Severn Trent.
Europe Indexes and Yields
The DAX index increased by 0.2% to 17,766.44; the CAC-40 index rose by 0.03% to 7,272.09; and the FTSE 100 index advanced by 0.6% to 8,214.71.
The yield on 10-year German bonds edged higher to 2.24%, French bonds inched higher to 2.99%, the UK gilts inched higher to 3.96%, and Italian bonds inched up to 3.66%.
The euro edged down to $1.09; the British pound inched lower to $1.272; and the U.S. dollar weakened to 86.92 Swiss cents.
Brent crude increased $0.67 to $80.33 a barrel, and the Dutch TTF natural gas fell by €1.99 to €42.05 per MWh.
Europe Stock Movers
Hanover Re rose 4.7% to €226.30, and the reinsurance company reported higher sales and earnings and confirmed its annual outlook.
Munich Re gained 1.2% to €440.0, and the German reinsurance company reported better-than-expected second quarter sales and earnings.
Revenue increased 12% to €15.4 billion, and net income soared 41% to €1.62 billion, driven by a higher profit margin of 11% compared to 8.4% a year ago.
China-linked luxury stocks traded down amid ongoing economic slowdown worries and a protracted property market slump.
Kering SA dropped 1.4% to €250.90, LVMH decreased 0.01% to €636.10, and Remy Cointreau fell 1% to €70.45.
Land Securities Group decreased 0.3% to 618.50 pence, and British Land Company declined 0.6% to 395.0 pence.
Global Investors Brace for Volatile Yen Amid BoJ's Reluctance to Lift Rates
Akira Ito
12 Aug, 2024
Tokyo
Benchmark indexes in Japan rebounded in Friday's trading as market sentiment stabilized after a week of wild swings, sharp declines, and rebounds.
Financial markets are closed on Monday to celebrate the Mountain Day holiday.
In Friday's trading, the Nikkei 225 stock average gained 0.6% and the Topix index jumped close to 1% as investors reassessed the future rate path and its implications for the yen.
The yen traded at 147.23 against the U.S. dollar after the Bank of Japan's unexpected rate increase lifted the currency to an eight-month high last week.
Despite the two-day rebound in stock market indexes, investors are expecting the yen to resume its slide toward the 160 level because of the yawning gap between Japan and U.S. government bond yields.
Moreover, corporate earnings have been in focus as investors look forward to the release of quarterly results from leading industrial and financial companies later this week.
On the economic front, investors are looking ahead to the release of Japan’s second quarter GDP to show a slight pick-up from the first quarter, driven by an increase in exports and higher domestic demand for industrial goods.
Japan Stock Movers
The Nikkei 225 stock average increased 0.6% to 35,025.0, and the Topix index gained 0.9% to 2,483.30.
Technology and chip-related stocks led the gainers in Monday's trading as investors returned to increase exposure to advanced semiconductor equipment makers.
Advantest, Screen Holdings, and Lasertec fell between 0.5% and 0.9%, but Tokyo Electron advanced 0.7%.
Toyota Motor and Nissan Motor declined 0.5%, and Honda Motor advanced 0.3% in muted trading on Friday.
China Stocks Resume Downward Slide Amid Worries of Weak Economic and Earnings Outlook
Li Chen
12 Aug, 2024
Hong Kong
Stocks in Hong Kong and Shanghai struggled to advance in Monday's trading as investors awaited key economic data later in the week.
The Hang Seng index and the CSI 300 index traded around the flatline amid hopes of more policy support from the People's Bank of China.
Retail sales in July are expected to show an increase of 2.5%, and industrial output is likely to increase more than 5%, according to an informal survey of nine economists in Shanghai and Hong Kong conducted by Ticker.com.
Chinese stocks have been under pressure, and benchmark indexes have erased this year's gains amid persistent worries about weak consumer demand growth, the protracted real estate market crisis, and the uneven and fragile economic recovery.
The People's Bank of China is expected to cut its reserve ratio for banks by 25 basis points to facilitate the sale of long-term bonds by the Chinese government.
Corporate earnings so far in the quarter have lagged market expectations amid weak domestic demand growth and falling investment in property-related industry sectors.
China's current account surplus narrowed to $54.9 billion in the second quarter from $59.3 billion in the corresponding quarter in the previous year, according to data released by the China's State Administration of Foreign Exchange.
The international goods surplus widened to $167.1 billion from $160.3 billion, but service deficit widened to $61.7 billion from $49.2 billion in the period a year ago.
China Stock Movers
The Hang Seng index edged up 0.01% to 17,095.06, and the CSI 300 index decreased 0.1% to 3,327.74.
Guangzhou R&F Properties was nearly unchanged at HK 79 cents, and the real estate development company said in a filing with an exchange that its unit missed interest payments of $147 million.
The company said it is in negotiations with its lender to find a workable solution and may revise its future payment plans.
Galaxy Entertainment Group decreased 4.9% to HK$29.30 after local authorities planned to crackdown on unlicensed money exchange service providers for gambling.
Technology stocks traded volatile in Hong Kong following a muted rebound in Friday's trading in New York.
Alibaba Group jumped 0.8% to HK $78.45, Baidu decreased 1% to HK $82.35, and Meituan dropped 2.7% to $103.30.
India Movers: Aurobindo Pharma, Berger Paints, Inox Wind, Grasim Industries, Trent
Arun Goswami
12 Aug, 2024
Mumbai
Stocks in Mumbai struggled to advance in Monday's trading as investors reviewed a fresh batch of corporate results.
After the close, investors are looking forward to the release of industrial output and inflation data.
Grasim Industries increased 0.3% to ₹2,585.70, and the diversified specialty chemical company reported better-than-expected June quarter results.
Revenue rose 9% from a year ago to ₹33,861 crore, but net profit declined 23.4% to ₹1,208 crore from a year ago.
The company also announced a capital expenditure plan of ₹4,533 crore in the current financial year.
Berger Paints advanced 2.2% to ₹542.90, and the paint and chemical company reported a weaker-than-expected sales increase in the June quartet.
Revenue edged up 2% to ₹3,091 crore from ₹3,029 crore, and net income edged slightly lower to ₹353.5 crore from ₹354.3 crore a year ago, respectively.
The India-based paint company operates manufacturing plants in India, Bangladesh, Nepal, Russia, and Poland.
Inox Wind jumped 6% to ₹184.80, and the renewable energy company reported a surge in profit in the June quarter.
Revenue increased 85% to ₹651 crore from ₹352 crore, and net income swung to a profit of ₹50 crore from a loss of ₹65 crore a year ago.
Aurobindo Pharma edged up 1% to ₹1,462.0, and the generic pharmaceutical company reported a strong increase in profit in the June quarter.
Revenue increased 10.5% to ₹7,567 crore from ₹6,850 crore, and net income jumped 61.3% to ₹918 crore from ₹569 crore a year ago.
The surge in profit was partly driven by an increase in sales across all key markets.
Sales in the U.S. increased 13.3% to ₹3,555 crore; in Europe, they advanced 8% to ₹1.982 crore; in other international markets, they soared 49% to ₹709 crore; and in India, they were ₹61 crore.
Active pharmaceutical ingredient revenue edged up 5.6% from a year ago to ₹1,092 crore.
Sterling & Wilson Renewable Energy edged up 1.3% to ₹682.35, and the company said in an exchange filing that it won a 550 crore order to design and build a solar power plant project in Rajasthan.
Trent Ltd advanced 1.3% to ₹6,364.40, and the diversified specialty retailer reported a sharp jump in earnings in the June quarter.
Revenue in the quarter increased 56% to 4,228 crore to 2,704 crore, and pre-tax income jumped 133% to 450 crore from 193 crore a year ago.
The company's grocery-focused Star Bazaar unit with more than 66 stores in 38 cities accounting for roughly 20% of total sales, reported a 29% increase in sales from a year ago, and a 20% rise in comparable store sales.
The company also operates 228 Westside, a diversified general merchandise stores and 559 Zudio, a discount apparel stores.
The company's stock advanced for the fourth session in a row and extended gains to close to 25%.
Stocks Extend Weekly Gains After Recession Fears Eased On Wall Street
Barry Adams
09 Aug, 2024
New York City
Stocks on Wall Street seesawed in early trading on Friday amid a lack of economic catalysts and corporate news.
The S&P 500 index and the Nasdaq Composite struggled to advance following a surge in the previous session after jobless claims rose less than expected.
Earlier in the week, stocks turned volatile after nonfarm payrolls rose at a slower-than-expected pace in July, stoking fears that weakening labor market conditions are signaling a possible economic slowdown.
Those fears were compounded by fewer new job openings in June and worries about the possible slowdown in capital spending for artificial intelligence infrastructure.
However, market indexes attempted to rebound after weekly jobless claims in the previous week rose less-than-expected by 233,000, soothing fears of an imminent economic slowdown.
U.S. Indexes and Treasury Yields
The S&P 500 index gained 0.2% to 5,327.20, the Nasdaq Composite advanced 0.2% to 16,693.24, and the Russell 2000 index declined 0.3% to 2,077.57.
The yield on 2-year Treasury notes edged higher to 4.02%, 10-year Treasury notes increased to 3.93%, and 30-year Treasury bonds inched lower to 4.22%.
WTI crude oil increased $0.35 to $76.51 a barrel, and natural gas prices edged up 2 cents to $2.15 a thermal unit.
Gold increased by $6.71 to $2,431.13 an ounce, and silver increased by $0.01 to $27.52.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 103.13.
U.S. Stock Movers
Expedia Group increased 10.3% to $130.10 after the online travel agency reported better-than-expected revenue of $3.56 billion and earnings per share of $3.51 in its latest quarter.
The company also said travel demand softened in July because of a challenging macroeconomic environment.
Paramount Global advanced 4.1% to $10.63 after the media company reported better-than-expected 54 cents per share earnings in the second quarter.
The company also announced its plan to cut 15% of its U.S. employees ahead of its merger with Skydance Media.
Unity Software jumped 6.5% to $15.30, and video game developers reported better-than-expected second quarter results.
The company estimated revenue for the third quarter to range between $415 million and $420 million, below market expectation of $445 million.
Take Two Interactive increased 3.5% to $143.65, and the video game developer reported fiscal first-quarter revenue of $1.3 billion compared to $1.26 billion, net loss expanded to $262 million from $206 million, and diluted loss per share increased to $1.52 from $1.22 a year ago.
The company guided full-year net bookings between $5.55 billion and $5.65 billion.
Europe Movers: Generali, Hargreaves Lansdown, Jenoptik, Lanxess, RTL Group
Inga Muller
09 Aug, 2024
Frankfurt
European markets closed higher after a turbulent week of trading and a batch of mixed corporate earnings.
France's jobless rate dropped in the second quarter, and Norway's consumer price inflation accelerated in July.
The DAX index increased by 0.3% to 17,730.30; the CAC-40 index rose by 0.5% to 7,280.94; and the FTSE 100 index advanced by 0.5% to 8,182.85.
The yield on 10-year German bonds edged lower to 2.23%, French bonds inched lower to 2.97%, the UK gilts inched higher to 3.94%, and Italian bonds decreased to 3.65%.
Hargreaves Lansdown advanced 2% to 1,099.50 pence after the UK-based investment platform agreed to be acquired by a consortium of private equity firms led by CVC Capital Partners for £5.44 billion or $6.94 billion.
Generali Group increased 0.2% to €22.16 after the Italian insurance company reported mixed results in the first half of 2024.
Jenoptik AG increased 9.8% to €27.48 after the German optics company reported an increase in sales and earnings in the second quarter.
RTL Group declined 0.5% to €28.25, and the German television and radio station operator controlled by Bertelsmann reported a 4.7% increase in advertising revenue in the first half of 2024.
Lanxess AG added 5.8% to €22.96, and the German specialty chemical company reiterated its full-year outlook despite reporting a 6% decline in second quarter sales.
European Indexes Advanced Tracking Global Gains, France's Jobless Rate Eased
Bridgette Randall
09 Aug, 2024
London
European markets attempted to advance in Friday's trading after a week of wild trading and historic volatility.
Benchmark indexes in Paris, London, and Frankfurt increased more than 0.3% and extended weekly gains to as much as 3%.
Investor confidence was bolstered after worries about the U.S. economy subsided following a smaller-than-expected increase in jobless claims.
Market sentiment was also supported by an additional batch of positive earnings in the U.S. and Europe.
Closer to home on the domestic economic front, France's jobless rate eased to 7.3% in the second quarter from 7.5% in the first quarter, the statistical office, INSEE, reported Friday.
The number of jobless increased by 40,000 to 2.3 million, and the youth jobless rate among those between the ages of 15 and 24 eased by 0.4 percentage points to 17.7%.
Consumer price inflation accelerated to 2.8% in July from a 42-month low of 2.6% in June, Statistics Norway reported Friday.
Meanwhile, consumer inflation, adjusted for tax changes and excluding energy prices, increased by 3.3% lower than 3.4% in the previous year and dropped to the lowest level since April 2022.
Europe Indexes and Yields
The DAX index increased by 0.3% to 17,730.30; the CAC-40 index rose by 0.5% to 7,280.94; and the FTSE 100 index advanced by 0.5% to 8,182.85.
The yield on 10-year German bonds edged lower to 2.23%, French bonds inched lower to 2.97%, the UK gilts inched higher to 3.94%, and Italian bonds decreased to 3.65%.
The euro edged down to $1.09; the British pound inched lower to $1.272; and the U.S. dollar weakened to 86.48 Swiss cents.
Brent crude increased $0.20 to $79.36 a barrel, and the Dutch TTF natural gas fell by €0.41 to €39.90 per MWh.
Europe Stock Movers
Hargreaves Lansdown advanced 2% to 1,099.50 pence after the UK-based investment platform agreed to be acquired by a consortium of private equity firms led by CVC Capital Partners for £5.44 billion or $6.94 billion.
Generali Group increased 0.2% to €22.16 after the Italian insurance company reported mixed results in the first half of 2024.
Jenoptik AG increased 9.8% to €27.48 after the German optics company reported an increase in sales and earnings in the second quarter.
RTL Group declined 0.5% to €28.25, and the German television and radio station operator controlled by Bertelsmann reported a 4.7% increase in advertising revenue in the first half of 2024.
Lanxess AG added 5.8% to €22.96, and the German specialty chemical company reiterated its full-year outlook despite reporting a 6% decline in second quarter sales.
Japan Indexes Close Higher After A Week of Wild Swings
Akira Ito
09 Aug, 2024
Tokyo
Benchmark indexes erased early gains in Tokyo, and investors turned cautious after a week of wild swings.
The Nikkei 225 stock average decreased 0.3% and the Topix index advanced 0.4% as investors continued to assess the monetary policy outlook in Japan.
Stock markets gyrated earlier in the week after market indexes plunged 12% and recovered most of the losses the next day, following the Bank of Japan's unexpected increase in key lending rates.
The rate increase forced hedge funds to unwind risky yen carry trade, setting the market indexes on a roller coaster ride after the yen continued to strengthen to an 8-month high.
Markets returned to calmness after Deputy Governor of the Bank of Japan Shinichi Uchida assured that the central bank will avoid raising rates when markets are unstable.
Global markets advanced after better-than-expected U.S. jobless data alleviated worries about the U.S. economic slowdown.
The yen drifted lower from its 8-month high for the third day in a row and weakened to 147.54 against the U.S. dollar.
Japan Stock Movers
The Nikkei 225 stock average increased 0.2% to 34,891.90, and the Topix index rose 0.4% to 2,472.73.
For the week, the Nikkei 225 stock average gained 2.6% and the Topix index advanced 4.8%.
Advanced chip equipment makers and financial stocks were among the leading gainers in Friday's trading.
Tokyo Electron, Advantest, Screen Holdings, and Lasertec gained between 1% and 4%.
Mitsubishi UFJ Financial, Sumitomo Mitsui Financial, and Mizuho Financial advanced between 2% and 4%.
JGC Holdings increased 7% to 1,208.0 yen after the refinery construction company reported better-than-expected June quarter results due to foreign exchange gains.
Itochu Corp. gained 6.4% to 6,750.0 yen after the trading company reported better-than-expected results in the June quarter.
Net profit attributable to shareholders declined 6.6% to 206 billion yen from 213.2 billion yen, and revenue increased 7.5% to 3.6 trillion yen from 3.3 trillion yen.
The company reiterated its dividend payout ratio plan of 30% or a cash dividend of at least 200 yen per share in the fiscal year 2025 and increased its stock buyback to 150 billion yen.
China Indexes Extended 3-day Rally, China's Consumer Price Inflation Accelerated In July
Li Chen
09 Aug, 2024
Hong Kong
Stocks in Shanghai and Hong Kong recovered for the third day in a row after global market volatility subsided.
Calmness returned to financial markets after investors reassessed the U.S. economic outlook and set aside the worry of a possible slowdown in artificial intelligence spending by mega-cap companies.
On Monday, the worries about the U.S. economic slowdown sparked a worldwide market sell-off that wiped out nearly $6 trillion in market capitalization, with market indexes in Japan dropping as much as 20% over three days of trading to Tuesday.
In Friday's trading, the Hang Seng index jumped nearly 1.8% and the CSI 300 index advanced 0.3% after consumer price inflation accelerated in July.
Consumer price inflation increased to 0.5% in July from 0.3% in June, the National Bureau of Statistics reported Friday.
Consumer price inflation was positive for the sixth month in a row, indicating rising demand after the central government ramped up stimulus spending.
Core inflation, which excludes food and energy prices, rose 0.4%, at the slowest pace in four months.
On a monthly basis, consumer price inflation rose 0.5%, the gain since April and
Producer price inflation decreased 0.8% in the month, matching the rate in the previous month, the statistical agency noted in a separate report released Friday.
China Stock Movers
The Hang Seng index soared 1.7% to 17,191.43, and the CSI 300 index advanced 0.3% to 3,347.69.
For the week, the Hang Seng extended the weekly increase to 3%, and the CSI 300 index closes down 0.6%.
SMIC increased 6.3% to $16.80 after the advanced chip maker reported better-than-expected second quarter results.
Kweichow Moutai rose 0.7% to 1,440.21 yuan, and the liquor maker increased shareholder payout after profit jumped 16% in the first half.
Core brand sales increased to 68.6 billion yuan, and other series liquor sales rose to 13.2 billion yuan.
Technology and electric vehicle makers were among the leading gainers in Friday's market rally.
Alibaba Group increased 1.8% to HK $78.0, Tencent Holdings advanced 0.4% to HK $369.60, and Meituan jumped 1.4% to HK $106.0.
Li Auto jumped 4.5% to HK $78.0, BYD gained 3.5% to HK $215.0, and Xpeng added 2.8% to HK $27.45.
India Movers: ABB India, Container Corporation, Eicher Motors, Ircon, Morepen, SAIL
Arun Goswami
09 Aug, 2024
Mumbai
Stocks in Mumbai rebounded and extended weekly gains after wild gyration in global markets earlier in the week.
The Sensex index increased by 1.2% to 79,840.33, and the Nifty index rose 1.2% to 24,405.10.
On the Mumbai stock exchange, 74 stocks traded at their 52-week highs, and 12 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds inched lower to 6.87%, and the Indian rupee edged lower to ₹83.94 against the U.S. dollar.
Eicher Motors increased 3.6% to ₹4,745.0 after the vehicle maker reported a double-digit increase in revenue and earnings in the June quarter.
Revenue increased 10.2% to ₹4,393 crore from ₹3,986.4 crore, and net income advanced 19.9% to ₹1,101.5 crore from ₹918.3 crore a year ago, respectively.
Operating margin expanded to 26.5% from 25.6% in the corresponding period a year ago.
ABB India advanced 2.2% to ₹8,121.40 after the industrial equipment and systems maker reported solid results in the June quarter.
Revenue rose 12.8% to ₹2,830.9 crore, and net income soared 50% to ₹443.5 crore from ₹295.6 crore a year ago, respectively.
The company also declared an interim dividend of ₹10.66 per share.
Container Corporation declined 1.4% to ₹984.50 after the logistics and transportation company reported a weaker-than-expected increase in revenue and earnings in the June quarter.
Revenue increased 9.4% to ₹2,103.1 crore, and net income advanced 5.8% to ₹259.4 crore.
SAIL decreased 1.2% to ₹135.77 after the steelmaker reported a sharp decline in revenue and earnings in the June quarter.
Revenue decreased 1.5% to ₹23,997.8 crore, and net income plunged 61.6% to ₹81.5 crore from ₹212.5 crore a year ago.
Ircon International declined 0.3% to ₹269.0, and the railway construction company reported mixed results in the June quarter.
Revenue decreased 17.2% to ₹2,287.1 crore, but net income rose 19.6% to ₹224 crore from ₹187.4 crore a year ago, respectively.
Morepen Industries increased 1.3% to ₹ 58.46, and the specialty chemical and medical device maker is scheduled to release its earnings on August 12.
The company also launched a ₹200 crore institutional offering and plans to sell 3.68 crore shares at a 5% discount and not lower than ₹52.37 per share.