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Market Update

U.S. Movers: HPE, Juniper Networks, PriceSmart, Intuitive Surgical, WD 40

Scott Peters
10 Jan, 2024
New York City

Hewlett-Packard Enterprise increased 0.4% to $16.20 after the company confirmed it agreed to acquire Juniper Networks for $40 a share, or about $14 billion, in an all-cash deal.

Lennar Corp. increased 1.4% to $150.17 after the home builder increased its annual dividend to $2.0 from $1.50 a share and the company's board approved the stock repurchase program of $5 billion.

WD-40 Company advanced 6.5% to $252.0 after the lubricant maker reported better-than-expected quarterly results.

Revenue in the fiscal first quarter ending in November increased 12% from a year ago to $140.4 million, rose to $17.5 million from $13.99 million, and diluted earnings per share advanced to $1.28 from $1.02 a year ago.

PriceSmart jumped 8.9% to $79.42 after the membership warehouse club reported fiscal first quarter results.

Revenue in the quarter ending in November rose 10.6% to $1.2 billion from $1.05 billion, net income jumped to $38 million from $32.9 million, and diluted earnings per share advanced to $1.24 from $1.05 a year ago.

Intuitive Surgical rose 4.9% to $347.0 after the medical equipment maker reported preliminary quarterly results and a stronger-than-expected fourth-quarter sales outlook.

Revenue in the fourth quarter increased 17% to $1.93 billion from $1.66 billion, and revenue in the full-year 2023 rose 14% to $7.12 billion from $6.22 billion a year ago.

The company placed 415 da Vinci surgical systems, an increase of 12% from a year ago.

In 2023, the number of da Vinci surgical systems installed increased by 8% to 1,370 from 1,264 a year ago.

Taiwan Semiconductor Manufacturing decreased 1.1% to $100.70 after the company reported December 2023 sales.

On a consolidated basis, revenue for December was approximately NT$176.30 billion, a decrease of 14.4% from November and a decline of 8.4% from a year ago.

Revenue for January through December 2023 totaled NT$2,161.74 billion, a decrease of 4.5% compared to the same period in 2022.

Europe Movers: ASML, Greggs, J Sainsbury, Hunting

Inga Muller
10 Jan, 2024
Frankfurt

European markets struggled to advance, bond yield held firm, and the euro edged slightly higher against the dollar in Wednesday's trading.

The DAX index increased 0.3% to 16,741.54, the CAC-40 index rose 0.2% to 7,442.13, and the FTSE 100 index inched lower by 0.3% to 7,664.76.

The yield on 10-year German bonds edged down to 2.16%; French bonds inched lower to 2.69%; the UK gilts edged down to 3.77%; and Italian bonds decreased to 3.80%.

ASML edged up 0.06% to €654.90, and the Dutch chip-making equipment maker was in focus after TSMC, the world's largest chip-making foundry, reported better-than-expected fourth-quarter revenue.

J Sainsbury plc declined by 5% to 290.54 pence after the UK-based grocery company reported weaker-than-expected sales during the holiday period.

Total retail sales, excluding fuel, in the sixteen-week period ending on January 6 rose 6.5%, and in the six-week Christmas holiday period, sales advanced 4.9%.

Grocery sales rose 9.3% and 8.6%, and non-food sales rose 1.5% and decreased 1.3%, excluding the impact of Argos in Ireland, in the sixteen-week and six-week periods, respectively.

Greggs plc rose 6% to 2,623.95 pence after the bakery and convenience food retailer reported strong year-end sales.

Total sales in the financial year 2023 rose 19.6% to £1.8 billion from £1.5 billion, and comparable sales at the company-managed stores rose 13.7% in the year and 9.4% in the fourth quarter.

The company opened a record 220 new stores in the year, with 33 closures and 42 relocations, resulting in a net new 145 stores totaling 2,473 stores at the end of 2023.

Hunting Plc increased 2.4% to 280.50 pence after the precision engineering group reiterated its 2023 outlook and confirmed it is in alignment with market expectations.

Eurozone Faces Technical Recession and Inflation Rebound

Bridgette Randall
10 Jan, 2024
Frankfurt

Benchmark indexes struggled to hold steady after economic growth and resurgent inflation worries dominated trading sentiment.

Market indexes in Frankfurt, Paris, and London traded around the flatline, and investors focused on the latest comments from ECB vice president Luis de Guindos.

Guindos stressed that economic activities are expected to remain weak in the short term in the face of weak export growth and tight financial conditions at home.

Moreover, the eurozone is facing a technical recession in the second half because of a broad-based slowdown driven by weaknesses in construction and manufacturing activities.

Inflation is expected to fall at a slower pace this year than in 2023, added Vice President Luis De Guindos.

"High wage pressures, geopolitical tensions, and upcoming wage negotiations are adding to uncertainty around the future path of inflation," added De Guindos.

Italian Retail Sales Advanced In November

Italian retail sales rose 0.4% from the previous month and 1.5% from the previous year in November, the National Institute of Statistics, or ISTAT, reported Wednesday.

Retail sales rose for the second month in a row and matched the growth rate in October.

Food product sales increased by 0.2%, and non-food goods sales advanced by 0.6% in the month.

France's Industrial Production Rebounded In November

France's industrial production rose 0.5% from the previous month and 0.6% from a year ago in November, the statistical agency INSEE reported Wednesday.

Volatile industrial production on a monthly basis rose for the first time after falling for three months in a row and falling 0.3% in the previous month.

Mining and energy exploration rebounded to an increase of 1.8% from the decline of 2.7% in the previous month; manufacturing growth rose slightly to 0.3% from 0.2%; and construction activities declined at a slower pace of 1% from 2.2%.

Europe Indexes and Yields

The DAX index increased 0.3% to 16,741.54, the CAC-40 index rose 0.2% to 7,442.13, and the FTSE 100 index inched lower by 0.3% to 7,664.76.

The yield on 10-year German bonds edged down to 2.16%; French bonds inched lower to 2.69%; the UK gilts edged down to 3.77%; and Italian bonds decreased to 3.80%.

The euro edged higher to $1.095, the British pound inched higher to $1.275, and the U.S. dollar eased to 85.17 Swiss cents.

Brent crude decreased $0.40 to $77.20 a barrel, and the Dutch TTF natural gas decreased by €0.09 to €30.56 per MWh.

Europe Stock Movers

ASML edged up 0.06% to €654.90, and the Dutch chip-making equipment maker was in focus after TSMC, the world's largest chip-making foundry, reported better-than-expected fourth-quarter revenue.

J Sainsbury plc declined by 5% to 290.54 pence after the UK-based grocery company reported weaker-than-expected sales during the holiday period.

Total retail sales, excluding fuel, in the sixteen-week period ending on January 6 rose 6.5%, and in the six-week Christmas holiday period, sales advanced 4.9%.

Grocery sales rose 9.3% and 8.6%, and non-food sales rose 1.5% and decreased 1.3%, excluding the impact of Argos in Ireland, in the sixteen-week and six-week periods, respectively.

Greggs plc rose 6% to 2,623.95 pence after the bakery and convenience food retailer reported strong year-end sales.

Total sales in the financial year 2023 rose 19.6% to £1.8 billion from £1.5 billion, and comparable sales at the company-managed stores rose 13.7% in the year and 9.4% in the fourth quarter.

The company opened a record 220 new stores in the year, with 33 closures and 42 relocations, resulting in a net new 145 stores totaling 2,473 stores at the end of 2023.

Hunting Plc increased 2.4% to 280.50 pence after the precision engineering group reiterated its 2023 outlook and confirmed it is in alignment with market expectations.

China Stocks Extend Losses, Suzuki to Double Capacity In India

Arjun Pandit
10 Jan, 2024
Mumbai

In Asian trading, most markets traded down amid U.S. interest rate uncertainties, on-going property woes in China, and the lack of stimulus measures from the Chinese government.

Benchmark indexes in Tokyo edged higher by 1.9% to 34,402.07 on the expectation that the Bank of Japan will maintain its ultra-loose policy stance, despite the early signs of a rise in inflation.

Average cash earnings in Japan rose 0.2% in November from the previous month, the Ministry of Health, Labor, and Welfare reported Wednesday.

The wage gains slowed from a 1.5% increase in October and lagged behind the increase of 2% in core inflation in November, marking the 20th consecutive month of decline in real wages after adjusting for inflation.

Maruti Suzuki India will invest about $4 billion to set up its second manufacturing facility in Gujarat, Suzuki Motor Corporation President Toshihiro Suzuki said on Wednesday.

Toshihiro announced the investment plan at the 10th Vibrant Gujarat Global Summit and added that the manufacturing plant will double its annual production capacity to 2 million vehicles in Gujarat.

The company currently manufactures 2.2 million vehicles in plants based in Haryana and Gujarat, and the automobile company is looking to double its capacity by the end of this decade.

China stocks continue to drift lower in the new year amid consumer confidence and the lack of a meaningful policy response from the government.

The benchmark index in Hong Kong declined for the seventh session in a row.

The Hang Seng index declined 0.7% to 16,077.01 and extended this year's loss to 5.5%, the worst start of the year in about two decades.

In Shanghai, the SSE Composite decreased 0.3% to 2,884.99 and extended this year's loss to 3% amid deepening property market woes across the mainland.

China also revved up cross-strait tensions ahead of a presidential election in Taiwan this Saturday.

Earnings Jitters Keep India Stocks Down

Caution prevailed on Dalal Street ahead of the start of earnings releases and weak global market signals.

Benchmark indexes The Nifty and Sensex indexes looked down in early trading, and investors focused on familiar large-cap names.

TCS, Infosys, HCL, and Wipro were in focus ahead of the release of quarterly results amid weak sales growth expectations as the leading companies face tough macroeconomic headwinds.

In Tuesday's trading, the Nifty and the Sensex indexes lacked direction and gave up early gains despite strong signals from markets in the U.S. and Europe.

Crude oil remained volatile with an upward bias as hostile conditions persisted in the Red Sea and leading shipping companies diverted most of the shipments away from the region.

India Indexes and Yields

The Sensex index increased 570.02 points to 71,925.24, and the Nifty index rose 176.65 points to 21,688.75.

On the Mumbai stock exchange, 230 stocks traded at their 52-week highs and 8 stocks traded at their 52-week lows.

The yield on the 10-year Indian government bonds eased 7.18%, and the Indian rupee edged lower to ₹83.15 against the U.S. dollar.

The gold price increased by 0.08% to ₹62,227 per ten grams, and silver rose by 0.02% to ₹72,061 per kilo.

Crude oil increased by 0.02% to ₹6,035 per barrel, and natural gas fell by 1.9% to ₹266.40 per thermal unit.

India Stock Movers

Vedanta declined 2.5% to ₹255.45 after Moody's downgraded corporate group rating to Caa3 from Caa2 and rating on unsecured bonds to Ca from Caa3. The rating agency maintained a negative outlook on the company's debt.

Power Grid Corporation decreased 0.5% to ₹241.20, and the power distribution company is set to raise as much as ₹2,200 crore in a bond offering today.

Power Finance Corporation fell 2.2% to ₹385.80, and the company received approval from the Reserve Bank of India for setting up a finance company in GIFT city, Gujarat.

Shyam Metallics and Energy gained 0.6% to ₹641.65 after the company raised ₹1,385 crore through an institutional offering.

The company's offering attracted bids of 4,055 crore, about 3.5 times the offering size.

Delta Corp. decreased 2.4% to ₹146.95 after the casino operator reported quarterly results.

Revenue in the December quarter rose 15% from a year ago to ₹231.7 crore, and net profit decreased 59% to ₹34.5 crore.

KIOCL fell 2.7% to ₹358.80 after the company temporarily suspended operations at its Mangalore plant because of the lack of iron ore fines.

Polycab India rose 0.8% to ₹4,906.30 after the company refuted recent media speculation about tax evasion.

The company said it has not received any communication from the Income Tax Department following the recent property searches conducted by the government agency.

India Movers: Delta Corp, Power Grid, Power Finance, IRCTC, Shyam Metallics, Steel Strips Wheels, Vedanta

Arjun Pandit
10 Jan, 2024
Mumbai

Stocks in Mumbai lacked direction in choppy trading, and tech services companies were in focus ahead of the release of quarterly results.

The Sensex index increased 570.02 points to 71,925.24, and the Nifty index rose 176.65 points to 21,688.75.

On the Mumbai stock exchange, 230 stocks traded at their 52-week highs and 8 stocks traded at their 52-week lows.

Vedanta declined 2.5% to ₹255.45 after Moody's downgraded corporate group rating to Caa3 from Caa2 and rating on unsecured bonds to Ca from Caa3. The rating agency maintained a negative outlook on the company's debt.

Power Grid Corporation decreased 0.5% to ₹241.20, and the power distribution company is set to raise as much as ₹2,200 crore in a bond offering today.

Power Finance Corporation fell 2.2% to ₹385.80, and the company received approval from the Reserve Bank of India for setting up a finance company in GIFT city, Gujarat.

Shyam Metallics and Energy gained 0.6% to ₹641.65 after the company raised ₹1,385 crore through an institutional offering.

The company's offering attracted bids of ₹4,055 crore, about 3.5 times the offering size.

The company sold 24.05 lakh shares priced at ₹576 per share to 38 institutional investors.

Delta Corp. decreased 2.4% to ₹146.95 after the casino operator reported quarterly results.

Revenue in the December quarter rose 15% from a year ago to ₹231.7 crore, and net profit decreased 59% to ₹34.5 crore.

KIOCL fell 2.7% to ₹358.80 after the company temporarily suspended operations at its Mangalore plant because of the lack of iron ore fines.

Polycab India rose 0.8% to ₹4,906.30 after the company refuted recent media speculation about tax evasion.

The company said it has not received any communication from the Income Tax Department following the recent property searches conducted by the government agency.

IRCTC fell 0.9% to ₹912.85 after the railway ministry nominated Sanjay Kumar Jain as the chief managing director.

Steel Strips Wheels rose 0.7% to ₹257.25 after the company's plan to invest ₹138 crore in AMW Autocomponent Ltd was approved by the National Company Law Tribunal.

U.S. and European Markets Turn Lower, Stimulus Hopes Support China Stocks

Barry Adams
09 Jan, 2024
New York City

U.S. stocks trimmed early losses, and investors remained on the sidelines a day after tech stocks powered the market rally.

Benchmark indexes rested in early trading, and mega-cap tech stocks hovered near their recent highs after the S&P 500 index added more than 1.4% and the Nasdaq Composite advanced about 2.2% in the previous session.

Investors shifted their attention to two key inflation measures scheduled to be released later in the week.

The December reading of the consumer price index is scheduled to be released on Thursday, followed by the producer price index on Friday.

Investors are hoping that both measures will show a cooling of inflation on a monthly basis, supporting the case for the Federal Reserve to lower the rate sooner than expected.

U.S. Trade Deficit Narrowed in November

The U.S. international trade deficit narrowed to $63.2 billion in November from $64.5 billion in October, the Bureau of Economic Analysis reported Tuesday.

The goods deficit declined $0.6 billion to $89.4 billion, and the service surplus rose $0.7 billion to 26.2 billion.

Total exports decreased by 1.9% to $253.7 billion, and total imports declined by the same amount to $316.9 billion.

Year-to-date, the goods and services deficit decreased $161.8 billion, or 18.4%, from the same period in 2022.

Exports increased $28.8 billion, or 1.0%, and imports decreased $133.0 billion, or 3.6%.

The deficit with China declined by $2.4 billion to $21.5 billion and with the European Union by $3.5 billion to $15.6 billion, but rose by $2.0 billion to $2.3 billion.

U.S. Indexes and Yields

The S&P 500 index decreased 0.3% to 4,750.81, and the Nasdaq Composite increased 0.02% to 14,846.78.

The yield on 2-year Treasury notes decreased to 4.38%, 10-year Treasury notes held steady at 4.04%, and 30-year Treasury bonds rose to 4.20%.

WTI crude oil increased $1.28 to $71.98 a barrel, and natural gas prices increased 24 cents to $3.21 a thermal unit.

Gold increased $0.30 to $2,028.18 an ounce, and investors debated the future interest rate path.

The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 102.37.

U.S. Stock Movers

Juniper Networks rose 24% to $37.50 on a report that Hewlett-Packard Enterprise is in "advanced talks" to acquire the company in a $13 billion deal.

The news was first reported by the Wall Street Journal and could not be independently verified.

The acquisition between the two companies could be finalized as early as this week, the Journal reported.

Unity Software increased 2.9% to $39.95 after the company said it plans to lay off about 25%, or 1,800, of its workforce as a part of the company's restructuring plan.

Microchip Technology declined 2.9% to $83.10 after the company lowered its fiscal third quarter revenue outlook, citing a "weakening economic environment."

The company said revenue in the quarter is likely to decline sequentially by 22% compared to the previous estimate released on November 2, 2023, of a decline between 15% and 20%.

Jet Blue Airways fell 5% to $5.47, and the company said President and Chief Operating Officer Joanna Geraghty will replace Chief Executive Robin Hayes effective February 12.

Economic Worries Drag European Markets Down

European markets lacked direction in early trading, and investors reviewed the latest economic data from Germany, France, and Italy.

Investor enthusiasm for stocks has been on the decline for the second week in a row amid interest rate and economic uncertainties.

Those market anxieties were heightened after Germany's industrial output shrank for the sixth month in a row.

German Industrial Production Declined Sixth Consecutive Month

Industrial production declined 0.7% from the previous month in November following a revised 0.3% fall in October, the Federal Statistics Office, or Destatis, reported Tuesday.

On an annual basis, German industrial output shrank 4.8%, the sharpest fall in nearly three years.

The production of capital goods fell by 0.7%, intermediate goods by 0.5%, and consumer goods by 0.1% from the previous month.

Outside of the manufacturing industry, energy production increased by 3.9% and construction production fell by 2.9% compared to the previous month.

France's trade Deficit Shrank In November

France's international trade deficit decreased in November due to a sharp decline in imports, the customs office reported earlier Tuesday.

The trade deficit narrowed to €5.9 billion in November from €8.5 billion in October, largely because of the decline in the import price of energy.

The trade deficit in the same month last year was €14.4 billion.

Exports declined 0.6% to €49.6 billion, and imports fell 4.8% to €57 billion.

UK Retail Sales Growth Slowed in the Fifth Consecutive Month In December

UK comparable retail sales increased 1.9% from a year ago in December, slower than the 2.6% rise in November, the British Retail Consortium reported Tuesday.

Total retail sales rose at a slower pace of 1.7%. as consumers avoided high-priced items and last-minute bargains failed to attract customers to buy furniture and household goods.

“Christmas shoppers ditched clothing, jewelry, and technology gifts, opting for beauty, health, and personal care products, which, along with food and drink, drove festive sales this year," said Paul Martin, head of retail at survey sponsor KPMG.

December's retail sales rose at a slower pace following a 2.6% rise in November amid lackluster Christmas holiday sales.

Retail sales growth slowed for the fifth month in a row after consumers stayed focused on basic items while battling high inflation and the cost-of-living crisis amid an interest rate at a 15-year high of 5.25%.

Europe Indexes and Yields

The DAX index decreased 0.2% to 16,688.36, the CAC-40 index fell 0.3% to 7,426.62, and the FTSE 100 index inched lower by 0.1% to 7,683.96.

The yield on 10-year German bonds edged up to 2.18%; French bonds inched higher to 2.72%; the UK gilts edged up to 3.82%; and Italian bonds advanced to 3.88%.

The euro edged lower to $1.093, the British pound inched higher to $1.272, and the U.S. dollar eased to 85.03 Swiss cents.

Brent crude increased $1.42 to $77.60 a barrel, and the Dutch TTF natural gas decreased by €0.94 to €30.64 per MWh.

Europe Stock Movers

GSK plc increased 1.1% to 1,565.40 pence after the pharmaceutical company agreed to acquire the biotech company Aiolos Bio for $1.4 billion.

Trigano SA jumped 2.9% to €146.80 after the camping van maker reported higher revenue in the fiscal first quarter.

Revenue in the first quarter increased 19.1% to 931.6 million from 782.3 million a year ago.

Games Workshop Group decreased 1.1% to 9,665.0 pence despite the company reporting strong first-half results.

Hill & Smith fell 1% to 1,808.71 pence, and the maker of sustainable products agreed to acquire Capital Steel Service LLC for $6.25 million.

Munich Re declined 0.5% to €381.20 after the German reinsurance company provided an update on the cost of natural disasters in 2023.

Overall losses from natural disasters in 2023 totaled $250 billion, of which only $95 billion were insured.

Record thunderstorm losses in North America and Europe totaled $76 billion, of which $58 billion were insured.

The number of deaths caused by natural disasters rose to 74,000 in 2023, well above the annual average of the last five years of 10,000.

In contrast, economic losses from natural disasters were dominated by severe storms. 76% of overall losses were weather-related, while 24% had geophysical causes, the report from Munich Re noted.

Asian Markets Advance, Stimulus Hopes lift China Stocks

Asian markets generally traded higher following the advance in New York and reversal in trading across Europe.

The Nikkei index gained 1.2% to 33,789.56 after tech stocks gained, reflecting the surge in tech stocks in New York. Markets in Japan were closed on Monday and gained sharply in early trading.

The index earlier touched a 33-year high after exporters, retailers, and tech stocks were among the leading gainers.

Advantest Corp. gained 4%, Tokyo Electron added 3.3%, and Screen Holdings increased 1.6%.

The average household spending in Japan in November declined 2.9% to 286,992 yen, the Ministry of Internal Affairs and Communications reported Tuesday.

The average monthly household income decreased by 4.7% to 494,181 yen.

The Kospi index in Seoul jumped as much as 0.7% in early trading but lost momentum in late afternoon and fell 0.3% to 2,556.90.

The Bank of Korea is set to announce its rate decision on Thursday, and economists are anticipating the central bank to hold its key lending rate of 3.5% for the ninth time in a row.

Stocks in Hong Kong advanced 0.3% to 16,277.09, and the Shanghai Composite Index gained -.2% to 2,894.28 after Beijing hinted at stimulus measures to support the faltering economic growth.

The People's Bank of China is likely to lower the reserve ratio for banks, cut the medium-term lending rate next week, and open market operations, according to comments from Zou Lan, director of monetary policy at the central bank, reported by state-run Xinhua News Agency.

U.S. Movers: JetBlue, Juniper Network, Microchip Technology, Unity Software

Scott Peters
09 Jan, 2024
New York City

Juniper Networks rose 24% to $37.50 on a report that Hewlett-Packard Enterprise is in "advanced talks" to acquire the company in a $13 billion deal.

The news was first reported by the Wall Street Journal and could not be independently verified.

The acquisition between the two companies could be finalized as early as this week, the Journal reported.

Hewlett Packard Enterprise declined 7% to $16.42.

Unity Software increased 2.9% to $39.95 after the company said it plans to lay off about 25%, or 1,800, of its workforce as a part of the company's restructuring plan.

Microchip Technology declined 2.9% to $83.10 after the company lowered its fiscal third quarter revenue outlook, citing a "weakening economic environment."

The company said revenue in the quarter is likely to decline sequentially by 22% compared to the previous estimate released on November 2, 2023, of a decline between 15% and 20%.

JetBlue Airways fell 5% to $5.47, and the company said President and Chief Operating Officer Joanna Geraghty will replace Chief Executive Robin Hayes effective February 12.

U.S. Stocks Trend Lower and Treasury Yields Advance

Barry Adams
09 Jan, 2024
New York City

U.S. stocks turned lower after a day of sharp gains when investors searched for bargains in the tech sector.

Investors shifted their attention to two key inflation measures scheduled to be released later in the week.

The December reading of the consumer price index is scheduled to be released on Thursday, followed by the producer price index on Friday.

Investors are hoping that both measures will show a cooling of inflation on a monthly basis, supporting the case for the Federal Reserve to lower the rate sooner than expected.

U.S. Indexes and Yields

The S&P 500 index decreased 0.4% to 4,781.75, and the Nasdaq Composite increased 0.5% to 14,534.17.

The yield on 2-year Treasury notes decreased to 4.38%, 10-year Treasury notes held steady at 4.04%, and 30-year Treasury bonds rose to 4.20%.

WTI crude oil decreased $1.60 to $72.37 a barrel, and natural gas prices decreased 5 cents to $3.02 a thermal unit.

Gold increased $7.38 to $2,035.08 an ounce, and investors debated the future interest rate path.

The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 102.37.

U.S. Stock Movers

Juniper Networks rose 24% to $37.50 on a report that Hewlett-Packard Enterprise is in "advanced talks" to acquire the company in a $13 billion deal.

The news was first reported by the Wall Street Journal and could not be independently verified.

The acquisition between the two companies could be finalized as early as this week, the Journal reported.

Unity Software increased 2.9% to $39.95 after the company said it plans to lay off about 25%, or 1,800, of its workforce as a part of the company's restructuring plan.

Microchip Technology declined 2.9% to $83.10 after the company lowered its fiscal third quarter revenue outlook, citing a "weakening economic environment."

The company said revenue in the quarter is likely to decline sequentially by 22% compared to the previous estimate released on November 2, 2023, of a decline between 15% and 20%.

Jet Blue Airways fell 5% to $5.47, and the company said President and Chief Operating Officer Joanna Geraghty will replace Chief Executive Robin Hayes effective February 12.

Europe Movers: GSK, Games Workshop Group, Hill & Smith, Munich Re, Trigano

Inga Muller
09 Jan, 2024
Frankfurt

European market indexes lacked direction, and investors remained cautious after German industrial production unexpectedly declined in November.

The DAX index decreased 0.2% to 16,687.49, the CAC-40 index fell 0.2% to 7,438.98, and the FTSE 100 index inched higher by 0.03% to 7,696.15.

The yield on 10-year German bonds edged up to 2.18%; French bonds inched higher to 2.72%; the UK gilts edged up to 3.82%; and Italian bonds advanced to 3.88%.

GSK plc increased 1.1% to 1,565.40 pence after the pharmaceutical company agreed to acquire the biotech company Aiolos Bio for $1.4 billion.

Trigano SA jumped 2.9% to €146.80 after the camping van maker reported higher revenue in the fiscal first quarter.

Revenue in the first quarter increased 19.1% to 931.6 million from 782.3 million a year ago.

Games Workshop Group decreased 1.1% to 9,665.0 pence despite the company reporting strong first-half results.

Hill & Smith fell 1% to 1,808.71 pence, and the maker of sustainable products agreed to acquire Capital Steel Service LLC for $6.25 million.

Munich Re declined 0.5% to €381.20 after the German reinsurance company provided an update on the cost of natural disasters in 2023.

Overall losses from natural disasters in 2023 totaled $250 billion, of which only $95 billion were insured.

Record thunderstorm losses in North America and Europe totaled $76 billion, of which $58 billion were insured.

The number of deaths caused by natural disasters rose to 74,000 in 2023, well above the annual average of the last five years of 10,000.

In contrast, economic losses from natural disasters were dominated by severe storms. 76% of overall losses were weather-related, while 24% had geophysical causes, the report from Munich Re noted.

German Industrial Production Unexpectedly Declined, French Trade Deficit Shrank

Bridgette Randall
09 Jan, 2024
Frankfurt

European markets lacked direction in early trading, and investors reviewed the latest economic data from Germany, France, and Italy.

Investor enthusiasm for stocks has been on the decline for the second week in a row amid interest rate and economic uncertainties.

Those market anxieties were heightened after Germany's industrial output shrank for the sixth month in a row.

German Industrial Production Declined Sixth Consecutive Month

Industrial production declined 0.7% from the previous month in November following a revised 0.3% fall in October, the Federal Statistics Office, or Destatis, reported Tuesday.

On an annual basis, German industrial output shrank 4.8%, the sharpest fall in nearly three years.

The production of capital goods fell by 0.7%, intermediate goods by 0.5%, and consumer goods by 0.1% from the previous month.

Outside of the manufacturing industry, energy production increased by 3.9% and construction production fell by 2.9% compared to the previous month.

France's trade Deficit Shrank In November

France's international trade deficit decreased in November due to a sharp decline in imports, the customs office reported earlier Tuesday.

The trade deficit narrowed to €5.9 billion in November from €8.5 billion in October, largely because of the decline in the import price of energy.

The trade deficit in the same month last year was €14.4 billion.

Exports declined 0.6% to €49.6 billion, and imports fell 4.8% to €57 billion.

UK Retail Sales Growth Slowed in the Fifth Consecutive Month In December

UK comparable retail sales increased 1.9% from a year ago in December, slower than the 2.6% rise in November, the British Retail Consortium reported Tuesday.

Total retail sales rose at a slower pace of 1.7%. as consumers avoided high-priced items and last-minute bargains failed to attract customers to buy furniture and household goods.

December's retail sales rose at a slower pace following a 2.6% rise in November amid lackluster Christmas holiday sales.

Europe Indexes and Yields

The DAX index decreased 0.2% to 16,687.49, the CAC-40 index fell 0.2% to 7,438.98, and the FTSE 100 index inched higher by 0.03% to 7,696.15.

The yield on 10-year German bonds edged up to 2.18%; French bonds inched higher to 2.72%; the UK gilts edged up to 3.82%; and Italian bonds advanced to 3.88%.

The euro edged lower to $1.093, the British pound inched higher to $1.272, and the U.S. dollar eased to 85.03 Swiss cents.

Brent crude increased $1.30 to $77.42 a barrel, and the Dutch TTF natural gas decreased by €0.73 to €30.85 per MWh.