Market Update
Wall Street Indexes Meander Amid Economic Growth and Resurgent Inflation Worries
Barry Adams
25 Feb, 2025
New York City
Wall Street indexes lacked direction in Tuesday's trading, and benchmark indexes struggled to shake off losses in the previous three sessions.
The S&P 500 index edged down 0.1%, and the Nasdaq Composite decreased 0.2%, as investors reviewed the latest batch of earnings.
Home Depot, Zoom Communications, Smith & Nephew, Keurig Dr Pepper, and Chegg were in focus after they reported quarterly results.
Investors are increasingly looking for a sign of an economic slowdown amid the growing storm of Trump tariffs, as the White House reiterated its plans to impose the previously announced tariffs on steel and aluminum products shipped from Mexico and Canada.
Investors are also concerned that the additional tariffs on goods shipped from China, Asia, and Europe will stoke inflation, which could delay the Fed's plan to lower interest rates and push the economy on the brink of a recession.
Commodities, Currencies, Indexes, Yields
The S&P 500 index decreased 0.2% to 5,973.87, the Nasdaq Composite edged down 0.7% to 19,159.62, and the Russell 2000 index was up 0.1% to 2,180.98.
The yield on 2-year Treasury notes edged lower to 4.12%, 10-year Treasury notes decreased to 4.33%, and 30-year Treasury bonds declined to 4.59%.
WTI crude oil decreased $0.49 to $70.25 a barrel, and natural gas prices edged higher by $0.04 to $4.02 a thermal unit.
Gold decreased by $11.27 to 2,939.86 an ounce, and silver edged down by $0.18 to $32.08.
The dollar index, which weighs the US currency against a basket of foreign currencies, decreased 0.21 to 106.38 and traded at a two-year high.
U.S. Stock Movers
Zoom Communications Inc. dropped 3% to $81.10 despite the software company reporting a revenue increase in the fourth quarter of fiscal 2025 ending in January.
The company's weak sales outlook in the current fiscal year weighed on the stock.
Home Depot eased 0.1% to $382.13 after the home improvement retailer reported steady sales growth in the fourth quarter ending in December.
The specialty retailer said comparable store sales rose 0.8% in the fourth quarter, ending a decline in eight consecutive quarters driven by a rise in the number of transactions and average ticket size.
Smith & Nephew Plc gained 3.5% to $27.16 after the medical equipment maker reported a revenue increase in the fourth quarter ending in December, despite weakness in the China market.
The company said earnings in the quarter advanced, driven by results from its restructuring efforts.
Chegg plunged 22% to $1.23 after the online education platform operator reported a 23% drop in its subscription revenue to $128.5 million in the fourth quarter.
For the full year, revenue declined 14% to $549.2 million, and net loss expanded to $837.1 million, and subscribers fell 14% to 6.6 million.
The company guided a first quarter revenue range between $114 million and $116 million and a gross margin between 66% and 67%.
Wall Street Indexes Meander Amid Economic Growth and Resurgent Inflation Worries
Barry Adams
25 Feb, 2025
New York City
Wall Street indexes lacked direction in Tuesday's trading, and benchmark indexes struggled to shake off losses in the previous three sessions.
The S&P 500 index edged down 0.1%, and the Nasdaq Composite decreased 0.2%, as investors reviewed the latest batch of earnings.
Home Depot, Zoom Communications, Smith & Nephew, Keurig Dr Pepper, and Chegg were in focus after they reported quarterly results.
Investors are increasingly looking for a sign of an economic slowdown amid the growing storm of Trump tariffs, as the White House reiterated its plans to impose the previously announced tariffs on steel and aluminum products shipped from Mexico and Canada.
Investors are also concerned that the additional tariffs on goods shipped from China, Asia, and Europe will stoke inflation, which could delay the Fed's plan to lower interest rates and push the economy on the brink of a recession.
U.S. Stock Movers
Zoom Communications Inc. dropped 3% to $81.10 despite the software company reporting a revenue increase in the fourth quarter of fiscal 2025 ending in January.
The company's weak sales outlook in the current fiscal year weighed on the stock.
Home Depot eased 0.1% to $382.13 after the home improvement retailer reported steady sales growth in the fourth quarter ending in December.
The specialty retailer said comparable store sales rose 0.8% in the fourth quarter, ending a decline in eight consecutive quarters driven by a rise in the number of transactions and average ticket size.
Smith & Nephew Plc gained 3.5% to $27.16 after the medical equipment maker reported a revenue increase in the fourth quarter ending in December, despite weakness in the China market.
The company said earnings in the quarter advanced, driven by results from its restructuring efforts.
Chegg plunged 22% to $1.23 after the online education platform operator reported a 23% drop in its subscription revenue to $128.5 million in the fourth quarter.
For the full year, revenue declined 14% to $549.2 million, and net loss expanded to $837.1 million, and subscribers fell 14% to 6.6 million.
The company guided a first quarter revenue range between $114 million and $116 million and a gross margin between 66% and 67%.
Defense Rally Extends Gains In Europe, EU Passenger Car Sales Struggle In January
Bridgette Randall
25 Feb, 2025
London
European markets traded around the flatline, and investors reviewed new U.S. trade restrictions on China.
Benchmark indexes in Frankfurt and London advanced, but market indexes in Paris and Milan retained a slight downward bias in Tuesday's trading.
Market sentiment was weak after the U.S. announced additional restrictions on Chinese investment in American technology, infrastructure, and energy companies or projects.
Defense stocks continued their advance for the second week in a row amid rising hopes that the European Union will set up its own $700 billion fund to finance its equipment purchases and support military personnel.
Automobile makers declined after passenger car sales in January dropped 2.6% from a year ago to a four-month low of 831,201 units.
Overall car sales in 2024 rose 0.8% to 10.6 million, and battery electric car share stood at 13.6%.
However, in January, overall sales declined 6.2% in France, followed by a 5.8% fall in Italy and a 2.8% decrease in Germany.
The battery electric vehicles held 15% of the market share in January, up from 10.9% a year ago.
Hybrid-electric vehicles surged ahead with a market share of 34.9% of the market, the top choice among car buyers.
Meanwhile, the combined market share of petrol and diesel cars fell to 39.4% in January 2025, down from 48.7% one year ago.
Europe Indexes and Yields
The DAX index increased by 0.02% to 22,430.44, the CAC-40 index edged lower 0.05% to 8,086.68; and the FTSE 100 index advanced by 0.3% to 8,689.24.
The yield on 10-year German bonds inched lower to 2.47%, French bonds decreased to 3.20%, the UK gilts moved down to 4.54%, 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 89.68 Swiss cents.
Brent crude increased $0.15 to $74.87 a barrel, and the Dutch TTF natural gas was lower by €0.75 to €46.55 per MWh.
Europe Stock Movers
Automakers were under pressure after passenger car sales declined in January.
Mercedes-Benz Group increased 1.2% to €60.40, Renault SA dropped 1.5% to €48.21, Volkswagen AG decreased 0.3% to €101.35, and Stellantis NV edged up 0.5% to €13.54.
Smith & Nephew advanced 5% to 1,095.0 pence after the company reported fourth quarter and full-year results.
Smith & Nephew said fourth quarter revenue increased 7.8% to $1.6 billion from $1.5 billion, and revenue in the full year advanced 4.7% to $5.8 billion from $5.5 billion.
Ericsson AB increased 2.2% to 86.94 krona after the Swedish telecom company signed a deal to sell 5G telecom equipment to India's Bharti Airtel.
John Wood Group advanced 3.5% to 38.42 pence after the struggling oil field services provider said it received a revised buyout proposal from Dubai-based Sidara, which had previously offered £1.6 billion.
Defense stocks continued to advance for the second consecutive week, and Germany's CDU leader, Friedrich Merz, is likely to push for a speedy approval of a special defense funding of €200 billion.
Thyssenkrupp AG increased 13% to €7.15 in the hopes that the company is looking to spinoff its minority stake in its warship division as early as this year.
Defense Rally Extends Gains In Europe, EU Passenger Car Sales Struggle In January
Bridgette Randall
25 Feb, 2025
London
European markets traded around the flatline, and investors reviewed new U.S. trade restrictions on China.
Benchmark indexes in Frankfurt and London advanced, but market indexes in Paris and Milan retained a slight downward bias in Tuesday's trading.
Market sentiment was weak after the U.S. announced additional restrictions on Chinese investment in American technology, infrastructure, and energy companies or projects.
Defense stocks continued their advance for the second week in a row amid rising hopes that the European Union will set up its own $700 billion fund to finance its equipment purchases and support military personnel.
Automobile makers declined after passenger car sales in January dropped 2.6% from a year ago to a four-month low of 831,201 units.
Overall car sales in 2024 rose 0.8% to 10.6 million, and battery electric car share stood at 13.6%.
However, in January, overall sales declined 6.2% in France, followed by a 5.8% fall in Italy and a 2.8% decrease in Germany.
The battery electric vehicles held 15% of the market share in January, up from 10.9% a year ago.
Hybrid-electric vehicles surged ahead with a market share of 34.9% of the market, the top choice among car buyers.
Meanwhile, the combined market share of petrol and diesel cars fell to 39.4% in January 2025, down from 48.7% one year ago.
Europe Indexes and Yields
The DAX index increased by 0.02% to 22,430.44, the CAC-40 index edged lower 0.05% to 8,086.68; and the FTSE 100 index advanced by 0.3% to 8,689.24.
The yield on 10-year German bonds inched lower to 2.47%, French bonds decreased to 3.20%, the UK gilts moved down to 4.54%, 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 89.68 Swiss cents.
Brent crude increased $0.15 to $74.87 a barrel, and the Dutch TTF natural gas was lower by €0.75 to €46.55 per MWh.
Europe Stock Movers
Automakers were under pressure after passenger car sales declined in January.
Mercedes-Benz Group increased 1.2% to €60.40, Renault SA dropped 1.5% to €48.21, Volkswagen AG decreased 0.3% to €101.35, and Stellantis NV edged up 0.5% to €13.54.
Smith & Nephew advanced 5% to 1,095.0 pence after the company reported fourth quarter and full-year results.
Smith & Nephew said fourth quarter revenue increased 7.8% to $1.6 billion from $1.5 billion, and revenue in the full year advanced 4.7% to $5.8 billion from $5.5 billion.
Ericsson AB increased 2.2% to 86.94 krona after the Swedish telecom company signed a deal to sell 5G telecom equipment to India's Bharti Airtel.
John Wood Group advanced 3.5% to 38.42 pence after the struggling oil field services provider said it received a revised buyout proposal from Dubai-based Sidara, which had previously offered £1.6 billion.
Defense stocks continued to advance for the second consecutive week, and Germany's CDU leader, Friedrich Merz, is likely to push for a speedy approval of a special defense funding of €200 billion.
Thyssenkrupp AG increased 13% to €7.15 in the hopes that the company is looking to spinoff its minority stake in its warship division as early as this year.
U.S. Movers: Domino's Pizza, Home Depot, Keurig Dr Pepper, Public Storage, Zoom Communications
Scott Peters
25 Feb, 2025
New York City
Zoom Communications Inc. dropped 3% to $81.10 despite the communication platform operator reporting a revenue increase in the fourth quarter of fiscal 2025 ending in January.
Revenue jumped to $1.18 billion from $1.15 billion, net income climbed to $367.86 million from $298.83 million, and earnings per diluted share rose to $1.16 from 95 cents a year ago.
For the first quarter of fiscal 2026, the company estimated revenue in constant currency between $1.168 billion and $1.173 billion, compared to $1.14 billion in the same period a year ago.
Non-GAAP income from operations is expected between $440.0 million and $445.0 million, compared to $353.3 million in 2025, and non-GAAP earnings per diluted share between $1.29 and $1.31, compared to $1.16 in 2025.
Public Storage dropped 2% to $297.16 despite the self-storage services provider reporting higher revenue for the fourth quarter ending in December.
Revenue increased to $1.18 billion from $1.16 billion, net income surged to $614.61 million from $439.29 million, and earnings per diluted share rose to $3.21 from $2.21 a year ago.
The company proposed a dividend of $3.00 per share, payable on March 28 to shareholders on record as of March 13.
For fiscal 2025, the company provided optimistic guidance based on its portfolio of 2,565 same-store facilities and 508 non-same-store facilities, reflecting strong core FFO per share expectations.
Domino's Pizza gained 0.3% to $456.92 after the pizza delivery company reported strong results for the fourth quarter ending in December.
Revenue increased to $1.44 billion from $1.40 billion, net income surged to $169.44 million from $157.29 million, and earnings per diluted share rose to $4.89 from $4.48 a year ago.
The company raised its quarterly dividend by 15% to $1.74 per share, payable on March 28 to shareholders on record as of March 14.
In addition, Domino’s Pizza repurchased 258,568 shares and 758,242 shares of common stock for a total of $112.0 million and $327.0 million, in the fourth quarter and full-year, respectively.
By the end of 2024, the company had a total remaining authorized amount for share repurchases of $814.3 million.
Home Depot eased 0.1% to $382.13 after the home improvement retailer reported a steady sales growth in the fourth quarter ending in February.
Net sales increased 14.1% to $39.70 billion from $34.79 billion, net earnings jumped 7% to $2.99 billion from $2.80 billion, and earnings per diluted share rose to $3.02 from $2.82 a year ago.
For fiscal 2025, the company estimated revenue growth of approximately 2.8%, comparable sales growth of 1%, and the opening of 13 new stores.
Diluted earnings per share are expected to decline 3% from $14.91 in fiscal 2024; and capital expenditures would be approximately 2.5% of total sales.
In the fourth quarter, same-store sales edged up 0.8%, and same-store sales in the U.S. increased 1.3%.
For the full year 2024, same-store sales decreased 1.8%, and same-store sales in the U.S. decreased 1.8%.
The company approved a quarterly cash dividend of $2.30 per share, up 2.2% from the previous year, and totaling to an annual dividend of $9.20 per share.
The dividend is payable on March 27 to shareholders on record as of March 13.
Keurig Dr Pepper Inc. surged 2.3% to $34.90 after the beverage company reported higher revenue in the fourth quarter ending in December.
Net sales increased to $4.07 billion from $3.87 billion, net income swung to a loss of $144 million from a profit of $693 million, and loss per diluted share was 11 cents compared to a profit of 49 cents a year ago.
The U.S. refreshment beverages and the international segments reported sales growth of 10.3% to $9.3 billion and 0.8% to $2.1 billion for the full year, respectively, while sales in the U.S. coffee unit decreased 2.4% to $1.1 billion.
For fiscal 2025, the company estimated net sales growth in a mid-single-digit range and adjusted earnings per diluted share in a high-single-digit range on a constant currency basis.
The projections include the anticipated contribution from the recent Ghost acquisition.
At current rates, foreign currency translation is forecasted to approximate a one to two percentage point headwind to full year top- and bottom-line growth.
The company proposed a regular quarterly cash dividend of 23 cents per share, payable on April 11 to shareholders on record as of March 28.
Last year, Keurig agreed to buy a 60% stake in energy-drink maker Ghost for $990 million, with a plan to purchase the rest in 2028.
U.S. Movers: Domino's Pizza, Public Storage, Zoom Communications
Scott Peters
25 Feb, 2025
New York City
Zoom Communications Inc. dropped 3% to $81.10 despite the communication platform operator reporting a revenue increase in the fourth quarter of fiscal 2025 ending in January.
Revenue jumped to $1.18 billion from $1.15 billion, net income climbed to $367.86 million from $298.83 million, and earnings per diluted share rose to $1.16 from 95 cents a year ago.
For the first quarter of fiscal 2026, the company estimated revenue in constant currency between $1.168 billion and $1.173 billion, compared to $1.14 billion in the same period a year ago.
Non-GAAP income from operations is expected between $440.0 million and $445.0 million, compared to $353.3 million in 2025, and non-GAAP earnings per diluted share between $1.29 and $1.31, compared to $1.16 in 2025.
Public Storage dropped 2% to $297.16 despite the self-storage services provider reporting higher revenue for the fourth quarter ending in December.
Revenue increased to $1.18 billion from $1.16 billion, net income surged to $614.61 million from $439.29 million, and earnings per diluted share rose to $3.21 from $2.21 a year ago.
The company proposed a dividend of $3.00 per share, payable on March 28 to shareholders on record as of March 13.
For fiscal 2025, the company provided optimistic guidance based on its portfolio of 2,565 same-store facilities and 508 non-same-store facilities, reflecting strong core FFO per share expectations.
Domino's Pizza gained 0.3% to $456.92 after the pizza delivery company reported strong results for the fourth quarter ending in December.
Revenue increased to $1.44 billion from $1.40 billion, net income surged to $169.44 million from $157.29 million, and earnings per diluted share rose to $4.89 from $4.48 a year ago.
The company raised its quarterly dividend by 15% to $1.74 per share, payable on March 28 to shareholders on record as of March 14.
In addition, Domino’s Pizza repurchased 258,568 shares and 758,242 shares of common stock for a total of $112.0 million and $327.0 million, in the fourth quarter and full-year, respectively.
By the end of 2024, the company had a total remaining authorized amount for share repurchases of $814.3 million.
Europe Movers: Bureau Veritas, PostNL, Smith & Nephew
Inga Muller
25 Feb, 2025
Frankfurt
PostNL NV traded flat at €1.08 after the Dutch mail, parcel, and e-commerce company reported higher revenue for fiscal 2024 ending in December.
Revenue increased to €3.25 billion from €3.16 billion, and reported EBITDA declined to €225 million from €261 million a year ago.
The company guided for fiscal 2025 in line with 2024.
PostNL will propose a dividend of 7 cents per share at the next annual general meeting.
Bureau Veritas SA dropped 4% to €30.0 despite the French testing, inspection, and certification company reporting revenue growth in fiscal 2024.
Revenue increased to €6.24 billion from €5.87 billion, net profit surged to €589.2 million from €515.9 million, and earnings per diluted share rose to €1.25 from €1.10 a year ago.
Revenue in the fourth quarter rose 8.5% to €1.67 billion from €1.54 billion a year ago.
The company guided for fiscal 2025 organic revenue growth in the mid-to-high single-digits, improvement in adjusted operating margin at constant exchange rates, and cash conversion above 90%.
Bureau Veritas proposed a cash dividend of 90 cents per share, up 8.4% from the previous year, and payable on July 3 to shareholders on record as of July 2.
Smith & Nephew advanced 5% to 1,095.0 pence after the company reported fourth quarter and full-year results.
Revenue for the full year 2024 increased to $5.81 billion from $5.55 billion, operating profit climbed to $657 million from $425 million, and earnings per share rose to 47.2 cents from 30.2 cents a year ago.
Revenue in the fourth quarter increased to $1.57 billion from $1.46 billion a year earlier.
For fiscal 2025, the company estimated underlying revenue growth of around 4.8%, and a trading profit margin between 19% and 20%.
First-quarter underlying revenue growth is expected between 1% and 2%.
Smith & Nephew also expects trading cash conversion of 80% to 90% and restructuring costs of around $45 million in 2025.
The company proposed a final dividend of 23.1 cents per share as well as an interim dividend of 14.4 cents per share, payable on May 28 to shareholders on record as of March 28.
Europe Movers: Bureau Veritas, PostNL, Smith & Nephew
Inga Muller
25 Feb, 2025
Frankfurt
PostNL NV traded flat at €1.08 after the Dutch mail, parcel, and e-commerce company reported higher revenue for fiscal 2024 ending in December.
Revenue increased to €3.25 billion from €3.16 billion, and reported EBITDA declined to €225 million from €261 million a year ago.
The company guided for fiscal 2025 in line with 2024.
PostNL will propose a dividend of 7 cents per share at the next annual general meeting.
Bureau Veritas SA dropped 4% to €30.0 despite the French testing, inspection, and certification company reporting revenue growth in fiscal 2024.
Revenue increased to €6.24 billion from €5.87 billion, net profit surged to €589.2 million from €515.9 million, and earnings per diluted share rose to €1.25 from €1.10 a year ago.
Revenue in the fourth quarter rose 8.5% to €1.67 billion from €1.54 billion a year ago.
The company guided for fiscal 2025 organic revenue growth in the mid-to-high single-digits, improvement in adjusted operating margin at constant exchange rates, and cash conversion above 90%.
Bureau Veritas proposed a cash dividend of 90 cents per share, up 8.4% from the previous year, and payable on July 3 to shareholders on record as of July 2.
Smith & Nephew advanced 5% to 1,095.0 pence after the company reported fourth quarter and full-year results.
Smith & Nephew said fourth quarter revenue increased 7.8% to $1.6 billion from $1.5 billion, and revenue in the full year advanced 4.7% to $5.8 billion from $5.5 billion.
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.
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.