Market Update
Europe Movers: Casino Guichard, Evotec, Maersk, Pandora, Plus 500, Shell
Inga Muller
08 Jan, 2024
Frankfurt
European markets struggled to advance on the start of a new trading week amid rising geopolitical tensions in the Middle East.
The DAX index increased 0.08% to 16,583.21, the CAC-40 index fell 0.2% to 7,404.69, and the FTSE 100 index inched lower by 0.4% to 7,662.18.
The yield on 10-year German bonds held steady at 2.16%; French bonds were nearly unchanged at 2.70%; the UK gilts edged up to 3.79%; and Italian bonds advanced to 3.86%.
Pandora increased 1.0% to DKK 956.60 after the Danish Jewelry Company reported that December quarter organic sales increased by 12% from a year ago.
Overall sales increased by 8%, surpassing the company's own forecast released in November of growth between 5% and 6%.
Revenue in the fourth quarter increased to DKK 10.8 billion, or $1.58 billion, from DKK 9.9 billion, while earnings before interest and tax rose to DKK 3.7 billion from DKK 3.2 billion.
Maersk declined 1% to DKK 13,765.0, and the company announced a significant rerouting of merchant shipments away from the Red Sea in response to the persistent threat posed by Yemen-based Houthi rebels.
Casino Guichard Perrachon declined 4.5% to €0.58, and the European Commission approved the transfer of control of the French retail company to a consortium led by Daniel Kretinsky.
Evotec advanced 0.5% to €18.03 after the German biotech company announced progress in product development through its strategic partnership with Bristol Myers Squibb.
Oil companies were in focus after crude oil prices declined more than 1% after Saudi Arabia announced a sharp cut in oil prices and a rise in OPEC oil output.
Shell PLC decreased 1.9% to 2,523.0 pence after the company announced asset impairment charges between $2.5 billion and $4.5 billion, primarily linked to the assets in Singapore.
Plus500 increased 5.2% to 1,747.0 pence after the company reported annual results ahead of market expectations.
Revenue in 2023 increased to $725 million, operating earnings were $340 million, and the cash balance rose to $900 million.
The company said it will publish its preliminary results on February 12.
European Markets Lose Ground Amid Rising Geopolitical Tensions
Bridgette Randall
08 Jan, 2024
Frankfurt
European markets struggled to advance amid rising tensions in the Middle East, and investors digested a fresh batch of economic news.
Benchmark indexes remained under pressure after Israel stepped up its bombing campaigns targeting sites controlled by Hamas and Hezbollah in Khan Yunis and Lebanon in overnight strikes.
Investors welcomed the increase in Germany's trade surplus and the rebound in factory orders in November, but annual inflation in Switzerland accelerated in December.
German factory orders increased by 0.3% from the previous month in November. The increase in domestic orders overwhelmed the decline in foreign orders, Destatis reported Monday.
Consumer price inflation in Switzerland increased to 1.7% in December from 1.4% in November, the Swiss Federal Statistics Office reported Monday.
On a monthly basis, consumer price inflation was unchanged after falling 0.2% in November.
Germany's Trade Surplus Nears 3-year High
Germany's international trade surplus widened in November to €20.4 billion from the slightly revised €17.7 billion in October, the Federal Statistics, or Destatis, reported Monday.
The monthly trade surplus was the largest since January 2021, and exports rose 3.7% from the previous month to €131.2 billion and imports advanced 1.9% from the previous month to €110.8 billion.
Exports declined 5.0% and imports fell 12.2% on an annual basis.
Calendar and seasonally adjusted exports increased 5.4% from the previous month to €71.5 billion, exports to the member states of the European Union, and imports rose 2.8% to €58.9 billion.
Exports to the U.S. fell 1.4% to €13.4 billion, but to China, they advanced 3.1% to €8.1 billion, and to the UK, they increased 15.2% to €7.7 billion.
Imports from China rose 3.1% to €13.0 billion, from the U.S. advanced 3.0% to €8.1 billion, and from the U.K. jumped 6.3% to €2.9 billion.
Europe Indexes and Yields
The DAX index increased 0.08% to 16,583.21, the CAC-40 index fell 0.2% to 7,404.69, and the FTSE 100 index inched lower by 0.4% to 7,662.18.
The yield on 10-year German bonds held steady at 2.16%; French bonds were nearly unchanged at 2.70%; the UK gilts edged up to 3.79%; and Italian bonds advanced to 3.86%.
The euro edged lower to $1.093, the British pound inched lower to $1.269, and the U.S. dollar eased to 85.08 Swiss cents.
Brent crude increased $1.57 to $77.16 a barrel, and the Dutch TTF natural gas decreased by €2.21 to €32.34 per MWh.
Europe Stock Movers
Pandora increased 1.0% to DKK 956.60 after the Danish Jewelry Company reported that December quarter organic sales increased by 12% from a year ago.
Overall sales increased by 8%, surpassing the company's own forecast released in November of growth between 5% and 6%.
Revenue in the fourth quarter increased to DKK 10.8 billion, or $1.58 billion, from DKK 9.9 billion, while earnings before interest and tax rose to DKK 3.7 billion from DKK 3.2 billion.
Maersk declined 1% to DKK 13,765.0, and the company announced a significant rerouting of merchant shipments away from the Red Sea in response to the persistent threat posed by Yemen-based Houthi rebels.
Casino declined 4.5% to €0.58, and the European Commission approved the transfer of control of the French retail company to a consortium led by Daniel Kretinsky.
Evotec advanced 0.5% to €18.03 after the German biotech company announced progress in product development through its strategic partnership with Bristol Myers Squibb.
Oil companies were in focus after crude oil prices declined more than 1% after Saudi Arabia announced a sharp cut in oil prices and a rise in OPEC oil output.
Shell PLC decreased 1.9% to 2,523.0 pence after the company announced asset impairment charges between $2.5 billion and $4.5 billion, primarily linked to the assets in Singapore.
Plus500 increased 5.2% to 1,747.0 pence after the company reported annual results ahead of market expectations.
Revenue in 2023 increased to $725 million, operating earnings were $340 million, and the cash balance rose to $900 million.
The company said it will publish its preliminary results on February 12.
India Movers: Bank of Baroda, Fiem Industries, Godrej Consumer Products, Marico, Nykaa, Sula Vineyard, Tata Steel, Titan Company
Arun Goswami
08 Jan, 2024
Mumbai
Stocks in Mumbai traded down after several companies estimated weaker-than-expected sales growth in the December quarter.
The Sensex index decreased 171.49 points to 71,822.46, and the Nifty index fell 68.80 points to 21,642.0.
On the Mumbai stock exchange, 409 stocks traded at their 52-week highs and 9 stocks traded at their 52-week lows.
Titan Company added 0.4% to ₹3,729.60 after the specialty retailer said total sales increased 22% from a year ago in the December quarter and jewelry sales rose 21%.
Tata Steel increased 0.3% to ₹134.05 after the company said steel production increased 6% from the previous quarter and the previous year in the December quarter to 5.32 million tons, or 53.2 lakh tons.
FSN E-commerce Venture, parent of Nykaa, advanced 1.8% to ₹176.45, and the company said net sales value growth in the December quarter for its beauty and personal care division was around 20%.
Godrej Consumer Products dropped 4.6% to ₹1,161.25 after the company offered a weak growth outlook in the December quarter.
Consolidated sales volume is expected to rise in the December quarter in the mid-single-digit range.
Marico declined 4.3% to ₹522.50 after the company estimated consolidated revenue in the December quarter declined in a low single-digit range from a year ago.
Narayana Hrudalaya increased 1.6% to ₹1,237.75 after the company's subsidiary received approval from the insurance regulator to launch a health insurance business in India.
Bank of Baroda declined 3.2% to ₹227.05 after the financial service company said global deposits in the December quarter rose 8.3% from a year ago, powered by a 6.3% rise in domestic deposits.
However, global deposits declined by 0.3% from the previous quarter.
Sula Vineyard soared 14.6% to ₹635.40, and the stock advanced more than 20% in two days of trading on a healthy business outlook.
Fiem Industries advanced 11.6% to ₹2,365.10 after the company said it plans to consider a bonus issue at the next board meeting on January 15.
EaseMyTrip advanced 5% to ₹43.65 after the company said it suspended flight listing and booking to the Maldives in an effort to support Prime Minister Modi's efforts to support domestic tourism to Lakshadweep.
China Stocks Extend Losses, India Indexes Down In Cautious Trading Ahead of Earnings Season
Arjun Pandit
08 Jan, 2024
Mumbai
Stocks traded sideways on the first day of the second trading week this year amid positive market sentiment.
The Sensex and the Nifty indexes advanced 0.2% in early trading after the statistical agency estimated India's economy to expand at a faster pace of 7.3% in the financial year ending in March.
Investors also looked ahead to the start of the earnings season, and tech-service export providers are scheduled to release earnings on January 11.
Power sector stocks were in focus for the second week in a row after Tata Power announced its plan to build solar and wind turbine-powered plants with a total capacity of 10 GW over the next five years.
In Friday's overseas trading, the U.S. economy added more-than-expected jobs in December.
The eurozone inflation accelerated in the month to 2.9%, and the UK home prices rebounded after falling for seven months in a row to £287,105.
Indexes In China Decline; Japan, Korea, and Australia Advance
In Asia, market indexes declined in mainland China by 1% and in Hong Kong by more than 2.4% after tech stocks led the decliners.
Economists estimated that official reports on January 12 are likely to show China's export and import growth slowed in December and inflation declined 0.4% after falling 0.5% in November, indicating persistent deflation.
Investors' hope of the Chinese government providing economic stimulus has so far not materialized, keeping the market index in a downward spiral for the fifth year in a row.
Market indexes in Korea and Japan advanced 0.3% ahead of the Bank of Korea's monetary policy announcement later in the week, and market indexes in Australia advanced 0.1% in choppy trading.
U.S. Job Market Added More Jobs than Expected
The U.S. economy added jobs at a faster pace in December, the jobless rate held steady, and wages rose at a faster-than-anticipated pace.
Nonfarm payrolls expanded by 216,000 in December, the U.S. Bureau of Labor Statistics reported Friday.
Economists polled by Ticker.com estimated payroll to expand by 160,000 after the economy added a downwardly revised 173,000 jobs in November.
However, the jobless rate was unchanged at 3.7%.
For the year 2023, the U.S. economy added 2.7 million jobs, the smallest increase since 2019 excluding pandemic-impacted 2020, indicating an average monthly increase of 225,000.
Economic Releases This Week
Looking ahead to next week, economic news and corporate earnings are expected to keep investors busy.
In the U.S., investors are awaiting the release of consumer and producer price inflation data in December and an international trade update.
In Europe, investors are looking ahead to the release of Germany’s balance of trade, the final inflation update from France, the inflation data in Switzerland, and Italy’s retail sales and industrial activity update.
In Asia, China is set to release its international trade data, India is scheduled to release its inflation figures, and the Bank of Korea will announce its interest rate decision.
Australia is scheduled to release its international trade data and monthly inflation update next week.
India Indexes and Yields
The Sensex index decreased 171.49 points to 71,822.46, and the Nifty index fell 68.80 points to 21,642.0.
On the Mumbai stock exchange, 409 stocks traded at their 52-week highs and 9 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds held firm at 7.22%, and the Indian rupee hovered near ₹83.23 against the U.S. dollar.
The gold price decreased by 0.3% to ₹62,385 per ten grams, and silver fell by 0.4% to ₹72,273 per kilo.
Crude oil decreased by 0.9% to ₹6,072 per barrel, and natural gas declined by 1.0% to ₹238.70 per thermal unit.
India Stock Movers
Titan Company added 0.4% to ₹3,729.60 after the specialty retailer said total sales increased 22% from a year ago in the December quarter, powered by a 21% rise in jewelry sales.
Tata Steel increased 0.3% to ₹134.05 after the company said steel production increased 6% from the previous quarter and the previous year in the December quarter to 5.32 million tons, or 53.2 lakh tons.
FSN E-commerce Venture, parent of Nykaa, advanced 1.8% to ₹176.45, and the company said net sales value growth in the December quarter for its beauty and personal care division was around 20%.
Godrej Consumer Products dropped 4.6% to ₹1,161.25 after the company offered a weak growth outlook in the December quarter.
Consolidated sales volume is expected to rise in the December quarter in the mid-single-digit range.
Marico declined 4.3% to ₹522.50 after the company estimated consolidated revenue in the December quarter declined in a low single-digit range from a year ago.
Narayana Hrudalaya increased 1.6% to ₹1,237.75 after the company's subsidiary received approval from the insurance regulator to launch a health insurance business in India.
Bank of Baroda declined 3.2% to ₹227.05 after the financial service company said global deposits in the December quarter rose 8.3% from a year ago, powered by a 6.3% rise in domestic deposits.
However, global deposits declined by 0.3% from the previous quarter.
U.S. Economy Added 216,00 Jobs In December, Unemployment Rate Held Steady
Brian Turner
05 Jan, 2024
New York City
Nonfarm payrolls expanded by 216,000 in December, the U.S. Bureau of Labor Statistics reported Friday.
Economists polled by Ticker.com estimated payroll expansion by 160,000 after the economy added a downwardly revised 173,000 jobs in November.
However, the jobless rate was unchanged at 3.7%.
For the year 2023, the U.S. economy added 2.7 million jobs, the smallest increase since 2019 excluding pandemic-impacted 2020, an average monthly increase of 225,000.
Governments at all levels expanded jobs by 52,000, followed by gains in leisure and hospitality of 40,000, healthcare by 38,000, social assistance by 21,000, and construction by 17,000.
Employment in the leisure and hospitality sectors rose by 39,000 a month, following a monthly increase of 88,000 in 2022, but is still lagging the pre-pandemic peak in February 2020 by 163,000.
Employment in transportation and warehousing declined by 23,000 in December, and employment in the sector has declined by 100,000 after peaking in November 2022.
In December, average hourly earnings for all employees on private nonfarm payrolls increased by 0.4%, or 15 cents, to $34.27 and gained 4.1% over the last twelve months.
The change in total nonfarm payroll employment for October was revised down by 45,000 to 105,000, and in November it was revised lower by 26,000 to 173,000.
S&P 500 and Nasdaq Turn Higher After Job Gains Accelerated In December
Barry Adams
05 Jan, 2024
New York City
Stocks on Wall Street were volatile after investors reviewed the latest update on the job market.
The U.S. economy added more-than-expected jobs in December, quashing all hopes of a rate cut at the end of the policy meeting in March.
The faster-than-expected expansion lifted the yield on 10-year Treasury notes above 4% after investors dialed back on the prospects of rate cuts in March.
The S&P 500 index and the Nasdaq Composite have been rallying for the last nine weeks in a row, supported by moderate economic growth, weakening inflation, and a resilient labor market.
The latest update on the job market was the third report this week, confirming healthy labor market conditions.
For the week, two widely followed market indexes are expected to close down, halting the rally in the last two months.
U.S. Payrolls Expanded at Faster Pace In December
Nonfarm payrolls expanded by 216,000 in December, the U.S. Bureau of Labor Statistics reported Friday.
Economists polled by Ticker.com estimated payroll expansion by 160,000 after the economy added a downwardly revised 173,000 jobs in November.
However, the jobless rate was unchanged at 3.7%.
For the year 2023, the U.S. economy added 2.7 million jobs, the smallest increase since 2019 excluding pandemic-impacted 2020, an average monthly increase of 225,000.
Governments at all levels expanded jobs by 52,000, followed by gains in leisure and hospitality of 40,000, healthcare by 38,000, social assistance by 21,000, and construction by 17,000.
Employment in the leisure and hospitality sectors rose by 39,000 a month, following a monthly increase of 88,000 in 2022, but is still lagging the pre-pandemic peak in February 2020 by 163,000.
Employment in transportation and warehousing declined by 23,000 in December, and employment in the sector has declined by 100,000 after peaking in November 2022.
In December, average hourly earnings for all employees on private nonfarm payrolls increased by 0.4%, or 15 cents, to $34.27 and gained 4.1% over the last twelve months.
The change in total nonfarm payroll employment for October was revised down by 45,000 to 105,000, and in November it was revised lower by 26,000 to 173,000.
U.S. Indexes and Yields
The S&P 500 index increased 0.5% to 4,715.11, and the Nasdaq Composite increased 0.7% to 14,605.61.
The yield on 2-year Treasury notes increased to 4.43%, 10-year Treasury notes inched higher to 4.04%, and 30-year Treasury bonds rose to 4.19%.
WTI crude oil increased $1.05 to $73.25 a barrel, and natural gas prices decreased 9 cents to $2.72 a thermal unit.
Gold increased $1.91 to $2,045.10 an ounce, and the yellow metal price traded volatile for the fourth day after investors dialed back rate-cut optimism.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 102.47.
U.S. Stock Movers
Costco Wholesale Corporation rose 1.5% to $658.51 after the company reported a surge in sales in December, when the calendar shift added one extra shopping day in the month.
December sales rose 9.9% to $26.15 billion, and total and comparable sales were positively impacted by 3 percentage points for the additional shopping day in the month.
Europe Movers: Clarkson, Endeavour Mining, Revolution Bars Group, Sodexo
Inga Muller
05 Jan, 2024
Frankfurt
Stock markets in Europe declined after rallying in previous eight weeks in a row as investors dialed back rate-cuts expectations in early 2024.
The DAX index decreased 0.8% to 16,492.03, the CAC-40 index fell 1.1% to 7,369.63, and the FTSE 100 index inched lower by 0.9% to 7,655.02.
The yield on 10-year German bonds decreased to 2.16%; French bonds inched higher to 2.70%; the UK gilts edged up to 3.79%; and Italian bonds advanced to 3.85%.
Revolution Bars Group plunged 21.7% to 4.26 pence after the company said it would close its facilities located in Derby, Reading, St Peters, Liverpool, and Wilmslow.
Endeavour Mining declined 11.3% to 1,503.0 pence after the company removed chief executive Sebastien de Montessus with immediate effect.
The company said its board is investigating misappropriation of $5.9 million and allegations of personal misconduct with colleagues.
The Board has appointed Ian Cockerill, Deputy Chairman of the Board, as Chief Executive Officer and Executive Director with immediate effect.
Clarkson PLC increased 7% to 3,495.10 pence after the integrated shipping service provider said full-year pre-tax earnings are likely to be ahead of market expectations.
Sodexo SA decreased 0.3% to €101.95 after the French food and facilities management company said fiscal first-quarter sales increased 3.1% and the company reiterated its outlook for fiscal 2024 and 2025.
European Stock Markets Halted 8-week Rally, Eurozone Inflation Accelerated
Bridgette Randall
05 Jan, 2024
Frankfurt
European markets struggled and extended weekly losses after rising for eight weeks in a row.
Worries about the rate path, lackluster economic data, and stretched consumer finances dominated market sentiment in Friday's trading.
Benchmark indexes in Frankfurt are set to close down 1.7%, in Paris by 2.7%, and in London by 0.9%.
Market indexes have struggled to hold ground in the new year after rising steadily in the previous two months on growing optimism that the major central banks are ready to cut interest rates in early 2024.
That sentiment was reversed in the first week of trading in the new year, after the release of the Federal Reserve's December meeting minutes.
Moreover, reports suggested the resilience of the U.S. labor market after weekly jobless claims declined and the private sector added more-than-expected jobs in December, further denting the enthusiasm for rate cuts.
Eurozone Inflation Accelerated In December
The eurozone inflation rate accelerated to 2.9% from a year ago in December, Eurostat reported Friday.
The inflation picked up from 2.4% in the previous month, when it dropped to a two-year low because of the base effect.
Core inflation, which excludes food and energy prices, eased to 3.4% from 3.6% and dropped to the lowest level since March 2022.
Germany's Retail Sales Declined In December
Seasonally adjusted retail sales in Germany declined 2.4% from a year ago in December, the Federal Statistics Office, or Destatis, reported Friday.
Retail sales declined 2.5% from the previous month and fell the most since April 2022, reversing the 1.1% increase in October.
Sales of non-food items adjusted for inflation declined by 3.6%, and online and direct sales eased by 2.8%.
In contrast, the real retail trade in textiles, clothing, shoes, and leather goods increased by 2.0% compared to the previous month and by 2.6% compared to the same month last year.
The effect of higher prices was evident in food retail sales, and food sales dropped steadily in 2023 and fell to the level last seen in 2015 as consumers focused on the basics and avoided fancy items.
Real food retail sales declined 0.5% in the month and dropped 0.1% unadjusted for price.
Sales declined 3.3% in the first eleven months.
UK Home Prices Rebounded In December
UK home prices rebounded after seven months of decline as buyers searched for bargains and tackled elevated mortgage rates.
The price increase still reflected the home shortages rather than the growing demand from buyers.
The Halifax House Price Index increased by 1.7%, or £4,800, from a year ago in December, Halifax and the Bank of Scotland said in a report released Friday.
On a monthly basis, home prices rose 1.1% from the previous month and increased for the third month in a row.
The average home price increased by 1.1%, or £3,060, from the previous month to £287,105.
Across the UK in 2023, Northern Ireland recorded the largest price increase of 4.1% to £192,153. Scotland with 2.6% to £205,170.
However, the average home prices in the South East fell sharply by 4.5%, or £17,755 to £376,804.
Europe Indexes and Yields
The DAX index decreased 0.8% to 16,492.03, the CAC-40 index fell 1.1% to 7,369.63, and the FTSE 100 index inched lower by 0.9% to 7,655.02.
The yield on 10-year German bonds decreased to 2.16%; French bonds inched higher to 2.70%; the UK gilts edged up to 3.79%; and Italian bonds advanced to 3.85%.
The euro edged lower to $1.090, the British pound inched lower to $1.265, and the U.S. dollar eased to 85.35 Swiss cents.
Brent crude increased $0.54 to $78.15 a barrel, and the Dutch TTF natural gas increased by €0.50 to €33.91 per MWh.
Europe Stock Movers
Revolution Bars Group plunged 21.7% to 4.26 pence after the company said it would close its facilities located in Derby, Reading, St Peters, Liverpool, and Wilmslow.
Endeavour Mining declined 11.3% to 1,503.0 pence after the company removed chief executive Sebastien de Montessus with immediate effect.
The company said its board is investigating misappropriation of $5.9 million and allegations of personal misconduct with colleagues.
The Board has appointed Ian Cockerill, Deputy Chairman of the Board, as Chief Executive Officer and Executive Director with immediate effect.
Clarkson PLC increased 7% to 3,495.10 pence after the integrated shipping service provider said full-year pre-tax earnings are likely to be ahead of market expectations.
Sodexo SA decreased 0.3% to €101.95 after the French food and facilities management company said fiscal first-quarter sales increased 3.1% and the company reiterated its outlook for fiscal 2024 and 2025.
India Movers: Dabur, Grasim, J&K Bank, Macrotech Developers, Nestle India, Sobha, Utkarsh Small Finance
Arun Goswami
05 Jan, 2024
Mumbai
Dalal Street stocks advanced and trimmed weekly losses after a week of choppy trading.
Investors remained optimistic about economic growth and corporate earnings growth in the December quarter.
The Sensex index increased 123.42 points to 72,051.36, and the Nifty index gained 53.75 points to 21,708.25.
On the Mumbai stock exchange, 412 stocks traded at their 52-week highs and 4 stocks traded at their 52-week lows.
Oil marketing companies were in focus, and the companies offered a higher price for ethanol produced from corn.
Oil companies raised the price by ₹5.79 to ₹71.86 per liter for the supply of ethanol for the new fiscal year that started in November.
HPCL increased 1.4% to ₹421.70, and BPCL advanced 0.8% to ₹456.30.
Dabur India added 0.4% to ₹567.75, and the company reiterated December quarter revenue growth in the "mid- to high single-digit."
The company attributed weak growth to lagging demand growth in rural markets and a subdued price increase for its products.
The consumer products company said gross margins are likely to expand, led by moderating inflation and cost-savings initiatives.
Sobha declined 1.1% to ₹1,280.25 after the real estate developer reported record sales in the December quarter of ₹1,952 crore.
The company also launched two new property development projects in the quarter, with a total saleable area of 3.84 million square feet.
Nestle India declined 1.9% to ₹2,660.10, and the company traded ex-split for the first time.
The company announced a 10-to-1 stock split effective January 5 to increase the participation of retail investors and liquidity.
Foreign institutional investors lowered their stake in the company to 12.1% from 12.38%, and domestic institutional investors increased their stake to 9.32 from 9.05 in the June quarter, respectively.
Grasim Industries increased 0.3% to ₹2,077.0 after the company announced a secondary offering to raise as much as 4,000 crore.
The company set the offering price at ₹1,812 per share, about a 12% discount from the current market price.
Jammu &Kashmir Bank gained 1.6% to ₹130.95 after the bank reported total deposits in the December quarter increased 9% from a year ago to 1.29 lakh crore.
Utkarsh Small Finance Bank jumped 1% to ₹58.15 after the company said gross loans issued increased by 31% in the December quarter.
Macrotech Developers gained 0.9% to ₹1,106.10 after the company said sales in the December quarter increased 12% to 3,410 crore from 3,040 crore a year ago.
Dalal Street Stocks Advance, China Stocks Retain Downward Bias
Arjun Pandit
05 Jan, 2024
Mumbai
Stocks in Mumbai advanced on the final trading day of the first week in 2024.
The Nifty and the Sensex indexes edged up more than 0.2% in early trading amid muted gains in overnight trading in New York and mixed trading in Asian markets.
Market indexes in Asia traded mixed, and the indexes in Shanghai and Hong Kong traded down.
The Hang Seng index is set to close down more than 2.5% and the CSI 300 index by 1.7%.
Stocks in China have been under pressure this week after an official survey showed manufacturing activities contracted for the third month in a row in December and home sales declines deepened at the nation's top 100 home builders in the month.
In Tokyo, stocks edged up slightly and are set to close higher in the holiday-shortened week.
Market indexes in Seoul and Sydney were nearly unchanged in Friday's trading, and they are set to close down about 1.4% in the week.
India Indexes and Yields
The Sensex index increased 123.42 points to 72,051.36, and the Nifty index gained 53.75 points to 21,708.25.
On the Mumbai stock exchange, 412 stocks traded at their 52-week highs and 4 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds held firm at 7.22%, and the Indian rupee hovered near ₹83.23 against the U.S. dollar.
The gold price increased by 0.01% to ₹62,674 per ten grams, and silver rose by 0.3% to ₹72,500 per kilo.
Crude oil increased by 0.4% to ₹6,055 per barrel, and natural gas declined by 1.6% to ₹232.10 per thermal unit.
India Stock Movers
Oil marketing companies were in focus, and the companies offered a higher price for ethanol produced from corn.
Oil companies raised the price by ₹5.79 to ₹71.86 per liter for the supply of ethanol for the new fiscal year that started in November.
HPCL increased 1.4% to ₹421.70, and BPCL advanced 0.8% to ₹456.30.
Dabur India added 0.4% to ₹567.75, and the company reiterated December quarter revenue growth in the "mid- to high single-digit."
The company attributed weak growth to lagging demand growth in rural markets and a subdued price increase for its products.
The consumer products company said gross margins are likely to expand, led by moderating inflation and cost-savings initiatives.
Sobha declined 1.1% to ₹1,280.25 after the real estate developer reported record sales in the December quarter of ₹1,952 crore.
The company also launched two new property development projects in the quarter, with a total saleable area of 3.84 million square feet.
Nestle India declined 1.9% to ₹2,660.10, and the company traded ex-split for the first time.
The company announced a 10-to-1 stock split effective January 5 to increase the participation of retail investors and liquidity.
Foreign institutional investors lowered their stake in the company to 12.1% from 12.38%, and domestic institutional investors increased their stake to 9.32 from 9.05 in the June quarter, respectively.
Grasim Industries increased 0.3% to ₹2,077.0 after the company announced a secondary offering to raise as much as 4,000 crore.
The company set the offering price at ₹1,812 per share, about a 12% discount from the current market price.
Jammu &Kashmir Bank gained 1.6% to ₹130.95 after the bank reported total deposits in the December quarter increased 9% from a year ago to 1.29 lakh crore.
Utkarsh Small Finance Bank jumped 1% to ₹58.15 after the company said gross loans issued increased by 31% in the December quarter.
Macrotech Developers gained 0.9% to ₹1,106.10 after the company said sales in the December quarter increased 12% to 3,410 crore from 3,040 crore a year ago.
Stocks Push Higher In Volatile Trading, 10-year Treasury Yield Hovers at 4%
Barry Adams
04 Jan, 2024
New York City
Benchmark indexes delivered mixed performance and Treasury yields edged higher after investors recalibrated interest rate outlook.
The S&P 500 index and the Nasdaq Composite lacked direction, and investors debated interest rate paths, economic health, and labor market conditions.
Investors curbed their enthusiasm for rate cuts after the Fed's minutes suggested that policymakers are not in any hurry to lower rates until clear evidence of a sustained decline in inflation emerges.
While policymakers appear to agree that interest rates are near their peak levels in the current tightening cycle, rates could also go higher if the economic data suggest the need.
Investors' enthusiasm about a possible rate cut powered a nine-week rally in the S&P500 index and the Nasdaq Composite, but in the new year, investors are recalibrating the rate path outlook.
Private Sector Expands In December
The private sector added payrolls at a faster-than-expected pace in December, highlighting the resilient U.S. labor market.
Private payrolls in the U.S. increased 164,000 in December, higher than a downwardly revised 101,000 in November, ADP reported Thursday.
The leisure and hospitality sector led the increase with an addition of 59,000, followed by increases in the construction sector by 24,000 and financial services by 18,000.
The closely watched nonfarm payroll data from the U.S. Labor Department is scheduled to be released on Friday, and economists are looking for the economy to add at least 160,000, according to a survey conducted by Ticker.com, following the increase of 199,000 in November.
Initial Weekly Jobless Claims Declined
The latest weekly jobless claims report showed a decline in layoffs, but labor market conditions remain tight.
Initial jobless claims declined from 18,000 to 202,000 for the week ended December 30, the U.S. Labor Department reported Thursday.
The four-week moving average, which smooths out week-to-week volatility, declined by 4,750 to 207,750.
Continuing claims for the week ending in the previous week eased by 31,000 to 1.855 million.
U.S. Indexes and Yields
The S&P 500 index increased 0.08% to 4,709.35, and the Nasdaq Composite dropped 0.1% to 14,572.40.
The yield on 2-year Treasury notes increased to 4.35%, 10-year Treasury notes inched higher to 3.95%, and 30-year Treasury bonds eased to 4.10%.
WTI crude oil decreased $0.55 to $72.15 a barrel, and natural gas prices increased 15 cents to $2.82 a thermal unit.
Gold increased $2.40 to $2,042.78 an ounce, and the yellow metal price traded volatile for the third day after investors dialed back rate-cut optimism.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 102.32.
U.S. Stock Movers
Walgreens Boots Alliance increased 0.1% to $25.60 after the pharmacy operator reported fiscal first-quarter earnings and revenues that were ahead of market expectations.
Cal-Maine Foods dropped 5.2% to $52.05 after the egg producer reported fiscal second-quarter results.
Revenue plunged in the quarter after the average selling price per dozen fell to $1.70 from $2.70 and the number of dozne eggs sold increased to 288.2 million from 284.0 million, respectively, in the previous year.
Revenue in the quarter dropped to $523.2 million from $801.7 million, net income declined to $16.6 million from $198.3 million, and diluted earnings per share dropped to 35 cents from $4.07 a year ago.
Apple declined 1.2% to $182.0 after an analyst at Piper Sandler lowered his views on the tech giant.
Meta Platforms increased 0.1% to $344.80, and chief executive Mark Zuckerberg sold more than $400 million in the company's share at the end of last year as a part of a trading plan that was previously announced.
Ford Motor Company decreased 0.01% to $11.70, and the company announced a price increase for some of its electric F-150 Lightning pickup trucks.
European Markets Rebounded, Inflation In Germany and France Accelerated
European markets advanced in Thursday's trading, and investors reviewed the latest batch of economic releases.
France's consumer price inflation accelerated to 3.7% in December from 3.5% in the previous month, the statistical agency reported Thursday.
Germany's consumer price inflation rose to 3.7% in December from 3.2% in the previous month, the Federal Statistics Office or destatis reported Thursday.
Core inflation, which excludes volatile food and energy prices, declined to 3.5%, and dropped to the lowest level since July 2022.
The average Inflation rose to 5.9% for the entire 2023, after energy prices declined from the previous year but services inflation stayed elevated.
Spain's private sector activity expanded for the first time in three months in December.
The HCOB Spain Composite PMI increased to 50.4 in December from 49.8 in November, S&P Global reported in its monthly update.
Italy's private sector activity contracted at a softer pace in December, S&P Global reported in a separate report today.
The HCOB Italy Composite PMI increased to 48.6 from 48.1 in November, indicating a contraction in private sector activities for the seventh month in a row.
UK net mortgage approvals increased by 50,067 in November, the Bank of England reported Thursday.
Net mortgage approval rose to a five-month high, but the increase remained muted due to the rising mortgage rates and elevated home prices in the nation.
The effective interest rate, reflecting the mortgage rate paid by the borrower, increased by 9 basis points to 5.34%.
Investors also reviewed the latest minutes of the meeting released by the U.S. Federal Reserve.
Rate-setting committee members appeared to conclude that interest rates are nearing peak rates in the current tightening cycle, but participants were not sure if and when rates would need to be lowered.
Committee members noted that economic growth is moderating, inflation is easing but still remains above the preferred level, and labor market conditions are weakening but still remain tight.
Most participants appeared to support the view that future economic data will provide more insights about the appropriate level of interest rates and whether higher rates are needed in the long term.
Europe Indexes and Yields
The DAX index increased 0.5% to 16,617.29, the CAC-40 index rose 0.5% to 7,450.63, and the FTSE 100 index inched higher by 0.5% to 7,723.07.
The yield on 10-year German bonds decreased to 2.06%; French bonds inched higher to 2.61%; the UK gilts edged up to 3.69%; and Italian bonds advanced to 3.75%.
The euro edged lower to $1.095, the British pound inched lower to $1.272, and the U.S. dollar eased to 84.91 Swiss cents.
Brent crude decreased $0.69 to $77.56 a barrel, and the Dutch TTF natural gas increased by €1.02 to €33.81 per MWh.
Europe Stock Movers
Energy stocks advanced after the crude oil price extended a 3-day gain amid rising tensions in the Middle East and growing violence in the Red Sea lanes, which prompted worries about supply disruptions.
U.S. President Joe Biden warned that the U.S. Navy fleet will attack Houthi installations unless rebels stop attacking merchant cargo ships traveling through Red Sea lanes.
The joint statement included support from the U.S., Japan, the UK, and Germany.
Telefonica SA rose 1% to €3.68 after the Spanish telecom operator signed an agreement with a trade union to lay off up to 3,421 staff.
The company will also take a charge of €1.3 billion linked to its layoff plan.
Nordex SE increased 2.2% to €10.04 after the company said it received an order to supply 106 MW of wind turbines from Spanish electricity producer Capital Energy.
The company did not disclose any financial details related to the order.
Evotec SE dropped 19% to €17.36 after the German biotech company said chief executive Werner Lanthaler stepped down from the office for personal reasons.
Next plc advanced 4.7% to €17.36 pence after the retailer lifted its profit outlook after sales in the pre-Christmas period were ahead of the company's expectations.
JD Sports Fashion PLC plunged 23.7% to 118.35 pence after the specialty retailer lowered its full-year profit estimate.