Market Update
China Stocks Ride Earnings Wave, Li Ka-shing Controlled Companies Acquires Ireland's Phoenix Energy
Li Chen
25 Apr, 2024
Hong Kong
Stocks in Shanghai edged slightly higher, and those in Hong Kong gained on the optimism about growing interest from foreign investors.
Market indexes in Shanghai advanced as investors brace for corporate results, and investors are hoping that quarterly results would exceed lowered expectations.
Stocks in Hong Kong advanced after foreign investors increased their holdings of Chinese stocks, and mainland investors also added exposure for the 19th consecutive session.
Investor sentiment was cautiously optimistic after a Chinese regulatory agency announced support for mainland companies to list on the Hong Kong Stock Exchange.
Investors overlooked rising tensions between China and the U.S. after President Joe Biden approved the divestment of a stake in video-sharing platform TikTok.
The CSI 300 index increased 0.2% to 3,530.09, and the Hang Seng Index rose 0.6% to 17,295.93.
CK Asset Holdings gained 1.5% to HK$32.75, and CK Infrastructure Holdings jumped 0.6% to HK$44.60 after the two companies controlled by Li Ka-shing formed a consortium to acquire the largest natural gas network operator in Northern Ireland, Phoenix Energy.
CK Assets and CK Infrastructure will own 40% each, and Power Assets Holdings, the international energy investment unit controlled by Li Ka-Shing, will hold the remaining 20%.
The three-company consortium agreed to pay $940 million, or £757 million, to acquire the holdings controlled by NatWest Group Pension Fund and Utilities Trust of Australia.
Hong Kong Exchanges and Clearing Limited increased 3.6% to HK$247.80 after the stock exchange operator reported earnings during Wednesday's lunch break.
Revenue in the first quarter ending in March declined 6% to HK$5.2 billion, or $664 million, and net profit fell 13% to HK$2.97 billion, or $356 million.
The average daily trading volume in the period fell by 22%, and the company blamed the decline on continued geopolitical tensions and macroeconomic volatility.
Weaker trading revenue and listing fees negatively impacted first-quarter revenue, but the exchange operator said in a statement that 85 companies are looking to list their stocks on the bourse in the near future.
A total of 12 companies raised HK$4.7 billion, a decline of 28% from a year ago, according to the data compiled by Ticker.com.
Lenovo Group added 3.4% to HK$8.92; SMIC added 2.2% to HK$15.16; and SenseTime Group jumped 10% to HK$0.88.
China Overseas Land & Investment reported first quarter profit rose 14% from a year ago, lifting property stocks in Hong Kong.
China Vanke gained 1% to HK$3.89, and Longfor Group added 3.9% to HK$9.78.
Elsewhere in Asia, markets traded lower tracking losses in overnight trading in New York, and tech stocks dropped after Facebook-parent Meta Platform's guidance fell short of market expectations.
Benchmark indexes in Tokyo declined 1.5% ahead of the Bank of Japan's monetary policy decisions on Friday.
The KOSPI index in Seoul declined 1%, and South Korea's economy expanded by 3.4% in the March quarter from a year ago, following a 2.2% increase in the fourth quarter.
The economy expanded at the fastest pace since the fourth quarter of 2021, driven by higher consumption of goods and services and a sustained increase in exports of tech products.
India Movers: Ask Automotive, Axis Bank, HUL, ITC, Kotak Mahindra, LTIMindtree, Macrotech
Arun Goswami
25 Apr, 2024
Mumbai
Benchmark indexes on Dalal Street opened lower after a string of weak quarterly results and cautious sentiment in international markets.
The Sensex index decreased by 0.4% to 73,572.34, and the Nifty index fell by 0.4% to 22,316.90.
On the Mumbai stock exchange, 65 stocks traded at their 52-week highs, and 2 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds inched lower to 7.18%, and the Indian rupee edged lower at ₹83.33 against the U.S. dollar.
Axis Bank rose 0.9% to ₹1,065.0, and the third-largest private bank swung to a net profit in the March quarter.
The company reported a net profit in the quarter of ₹7,129.7 crore, compared to a loss of ₹5,728.4 crore a year ago.
Net interest margin increased 5 basis points from the previous quarter to 4.06%.
Hindustan Unilever decreased 0.1% to ₹2,260.05 after the consumer products maker reported a slight decline in consolidated net profit in the March quarter.
Consolidated revenue rose about 1% to ₹15,441 crore, and net profit declined 1.6% to 2,558 crore from a year ago, respectively.
Indian Hotels Company rose 1% to ₹610.0 after the hotel chain operator said net profit in the March quarter rose 29.4% from a year ago to ₹438.8 crore.
Ask Automotive decreased 0.3% to ₹317.0, and the company announced a joint venture with the Japan-based AISIN Group to market automotive components in the aftermarket.
LTIMindtree increased by 0.2% to ₹4,736.0 after the tech services provider reported weaker-than-expected quarterly results.
Revenue in the March quarter rose 2.3% to ₹8,892.9 crore, and net profit declined 1.2% to ₹1,110 crore.
Macrotech Developers advanced 1.2% to ₹1,250.0 after the residential real estate developer said March quarter consolidated after-tax income declined 10.6% from a year ago to ₹667 crore.
Rail Vikas Nigam added 2.5% to ₹285.50 after the company's joint venture was deemed the lowest bidder for a project worth ₹439 crore for Southern Railway.
Kotak Mahindra decreased 1.7% to ₹1,743.85 after the Reserve Bank of India barred the company from acquiring new customers through its online and mobile banking channels.
The central bank also placed a ban on the company from issuing new credit cards for a lack of technology governance and risk management compliance for two years.
Global Market Indexes Turned Lower with Fading U.S. Rate Cut Expectations
Alexander Garcia
24 Apr, 2024
Miami
Interest rate fears resurfaced after the latest durable goods orders confirmed resilient economic conditions.
Benchmark indexes on Wall Street attempted to rebound in early trading, but weak sentiment quickly overshadowed trading in New York after investors digested the latest update of durable goods orders.
Investors have been on the defensive for the last three weeks amid interest rate uncertainty and strong economic data.
Investors have dialed down their interest rate cut expectations after recent data on nonfarm payrolls and factory orders, home construction, and retail sales indicated resilient economic conditions.
Orders rose from the previous month, indicating that despite the multiple rate hikes, the U.S. economy is still strong, and higher rates are likely to stay for longer.
With the steady flow of strong economic data, expectations of rate cuts are fading.
The S&P 500 index and the Nasdaq Composite turned lower, yields on Treasury notes edged slightly higher, and crude oil prices struggled to stay above the flatline.
Investors also reviewed another batch of mixed quarterly corporate results.
Boeing reported a narrower-than-expected loss in the first quarter; Tesla said in a call with investors that second-quarter results are likely to be better than the first quarter; and Texas Instruments projected higher revenue in the second quarter.
Durable Goods Orders Advance for the Second Consecutive Month
The latest new orders for manufactured goods signaled a resilient economy and positive demand for capital and non-capital goods.
Seasonally adjusted new orders for manufactured goods increased by 2.6% from the previous month in March, the U.S. Census Bureau reported Wednesday.
The orders rose for the second month in a row after the revised 0.7% increase in February.
Excluding defense, new orders rose 2.3%, and non-defense orders excluding aircraft, a measure of business spending, rose 0.2% after rising 0.4% in February.
U.S. indexes and yields
The S&P 500 index increased 0.3% to 5,084.03, and the Nasdaq Composite advanced 0.7% to 15,816,82.
The yield on 2-year Treasury notes edged lower to 4.95%, 10-year Treasury notes inched down to 4.63%, and 30-year Treasury bonds edged lower to 4.73%.
WTI crude oil decreased $0.66 to $82.80 a barrel, and natural gas prices decreased 9 cents to $1.71 a thermal unit.
Gold decreased by $1.22 to $2,324.74 an ounce, and silver fell 4 cents to $27.24.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 105.82.
U.S. Stock Movers
Tesla jumped 12.4% to $162.25 after the electric vehicle maker reported a decline in sales and earnings, but the company's outlook supported market expectations.
Revenue in the first quarter declined 9% to $21.3 billion, net income dropped 55% to $1.13 billion from $2.51 billion, and diluted earnings per share fell to 34 cents from 73 cents a year ago.
In a statement released to investors, Tesla said the volume growth rate in 2024 "may be notably lower than the growth rate achieved in 2023."
The company said it plans to launch "new vehicles, including more affordable models," manufactured on the same production lines without needing additional investment.
The company aims to achieve a 50% increase in annual vehicle production before investing in new plants and equipment.
Boeing Co. increased 3.3% to $174.60 after the aviation company reported a narrower-than-expected loss and a smaller-than-expected cash outflow in the first quarter.
Revenue in the first quarter declined 8% to $16.5 billion, net loss shrank to $355 million from $425 million, and diluted loss per share eased to 56 cents from 69 cents a year ago.
Visa Inc. rose 2.4% to $280.80 after the payment processor reported stronger-than-expected quarterly results.
Texas Instruments jumped 6.7% to $176.69 after the advanced semiconductor company reported better-than-expected first-quarter revenue.
Revenue declined 16% to $3.66 billion from $4.4 billion, net income fell 35% to $1.1 billion from $1.7 billion, and diluted earnings per share dropped to $1.20 from $1.85 a year ago.
The company also estimated second-quarter revenue in the range of $3.65 billion to $3.95 billion and earnings per share between $1.05 and $1.25.
European Indexes Erase Gains Amid Mixed Earnings Reports
Stocks in European financial markets bounced higher, but erased gains of the session as investors debated the future rate path and level as corporate results rolled in.
Benchmark indexes in Frankfurt, Paris, and London closed lower, and bond yields advanced after comments from Bundesbank president Joachim Nagle.
The European Central Bank may not follow up with a series of rate cuts after the June rate cut, Nagle said at an industry conference in Berlin.
Investors are anticipating the ECB to lower its rate cut in June amid a weakening of inflation in the last ten months, but core inflation is still above the central bank's target rate of 2%.
Investors also reviewed the latest update on German business morale index released by the Ifo Institute.
The business confidence index increased to 89.4 in April from 87.8 in March and advanced to the highest level since May 2023.
Business morale is still weak but recovering in the hopes that the European Central Bank will lower the interest rate in June.
Europe Indexes and Yields
The DAX index decreased by 0.4% to 18,073.62; the CAC-40 index fell by 0.2% to 8,091.86; and the FTSE 100 index inched lower by 0.1% to a new intraday record high of 8,040.38.
The yield on 10-year German bonds edged up to 2.54%; French bonds inched higher to 3.04%; the UK gilts edged higher to 4.30%; and Italian bonds inched higher to 3.88%.
The euro edged higher to $1.068; the British pound inched higher to $1.242; and the U.S. dollar edged higher to 91.42 Swiss cents.
Brent crude decreased $0.45 to $88.0 a barrel, and the Dutch TTF natural gas rose by €0.45 to €29.10 per MWh.
Europe Stock Movers
ASM International soared 9.9% to €584.40 after the water processing equipment maker reported better-than-expected first quarter results and raised its sales outlook for the second quarter.
Volvo AB increased 0.4% to SEK 283.70, and the Swedish automaker reported first quarter revenue below market expectations but adjusted operating profit rose sharply.
Svenska Handelsbanken AB dropped 9.5% to SEK 123.0 after the Swedish bank reported a decline in earnings in the first quarter.
Net income declined to SEK 6.6 billion from SEK 6.81 billion a year ago, after expenses rose faster than income in the quarter.
Net interest income advanced to SEK 11.59 billion from SEK 11.49 billion, and the bank's common equity Tier 1 ratio, a measure of the bank's financial strength, eased to 18.8% from 19.4% a year ago.
Roche Holding AG decreased 2.8% to CHF 223.20 after the Swiss pharmaceutical company said first-quarter sales declined 6%.
Evotec SE plunged 37% to €8.86 after the German biotech company reported full-year results and appointed a new chief executive.
Revenue increased 4% to €781 million from €751.4 million a year ago.
The company registered an operating loss of €47.5 million compared to a profit of €20.85 million a year ago.
Excluding one-time items related to restructuring, adjusted operating earnings plunged 35% to €66 million from €101.5 million.
The biotech company said business conditions are not likely to improve until the end of 2024, and a simplified business structure is expected to improve operating earnings by €40 million on an annual basis.
Kering SA plunged 8% to €321.85 after the parent company of Gucci projected a 40% to 50% decline in operating profit in the first half.
Tech Rally Lifts Japan Indexes 2%
Indexes in Tokyo led the gainers in Asia with a rise of 2%, and markets in Seoul and Hong Kong jumped around 1.5%, tracking gains in overnight trading in New York.
Benchmark indexes in Tokyo advanced for the third session in a row following a sharp rise in tech stocks in overnight trading in New York.
In New York, stocks advanced for the second day in a row following positive earnings from General Motors, GE Aerospace, UPS, and PepsiCo.
The Nikkei 225 Stock Average soared 2.3% to 38,425.64, and the Topix index jumped 1.7% to 2,710.69.
In addition, investors are looking forward to the Bank of Japan's rate decisions on Friday amid persistent weakness in the Japanese yen.
The Japanese yen traded at a new 34-year low against the U.S. dollar and hovered at 154.82 at 11:30 a.m. local Tokyo time.
The Japanese yen has lost 50% of its value against the U.S. dollar since December 15, 2020.
Tech stocks led the gainers in Tokyo, and Tokyo Electron, Advantest, Socionext, Disco Corp., and Lasertec advanced between 3% and 8%.
Nidec Corp. plunged as much as 3% before recovering to a gain of 0.5% to ¥6,779.0 after the maker of small electric motors announced a surprise loss in its latest quarter.
The company is battling intense price pressure as price competition heats up in the electric vehicle market in China.
Asahi Kasei Corp. decreased 1% to ¥1,088.0, and the company said it plans to build a $1.3 billion battery component plant in Canada, according to Nikkei News.
The company plans to invest about 200 billion yen, or about $1.3 billion, with a target to start production in 2027 and supply mainly Honda's electric vehicle plant in the nation.
Asahi plans to make lithium-ion battery separators, a key component in electric vehicle batteries.
Hang Seng Index Soar 1.7%, Weakness In IPOs Highlight Cautious Sentiment
Stocks in Shanghai struggled to stay above the flatline, but market indexes in Hong Kong advanced for the second consecutive day.
Market sentiment was cautiously optimistic in the hopes that Chinese companies are likely to meet or exceed lowered earnings expectations, supporting the advance indexes from the current depressed levels.
The CSI 300 index decreased 0.01% to 3,505.81, and the Hang Seng Index rose 1.7% to 17,110.21.
Stocks in Hong Kong soared following the rally in Asian markets after advances in New York for the second consecutive day.
Positive earnings by General Motors, GE Aerospace, UPS, and PepsiCo supported the market gains in New York.
Closer to home, Ping An Insurance gained 3.3% to HK$34.05 after the largest insurance company in China reported a smaller-than-expected decline in quarterly earnings.
New Business Value, a measure of revenue and future profitability, was ahead of market expectations and rose 21% from a year ago.
Hong Kong Exchanges & Clearings advanced HK$234.80 ahead of the company's release of earnings later this week.
SenseTime Group soared 31% to HK$0.80 after the company released its latest version of the SenseNova generative AI model used for creative writing.
Investor sentiment continues to be weak for the second day this week as new issues struggle to gain traction.
Mobvoi, the speech recognition software developer, plunged 15% to HK$3.18 after the company listed its share on the Hong Kong Stock Exchange in an initial public offering.
The company sold 84.6 million shares in an initial public offering and priced its shares at HK$3.80 per share, near the lower end of its filing range between HK$3.70 and HK$4.0.
Sichuan Baicha Baidao, the operator of the tea store chain, extended its decline for the second consecutive day and fell 10% to HK$11.52 after the stock plunged 35% on the first day of trading on the Hong Kong Stock Exchange.
On Tuesday, the tea store chain operator sold 174.4 million shares in an initial public offering and priced its shares at HK$17.50 per share.
Elsewhere In Asia, market indexes gained following the advances in overnight trading in New York.
Indexes in Tokyo led the gainers in Asia with a rise of 2%, and markets in Seoul and Hong Kong jumped around 1.5%, tracking gains in overnight trading in New York.
In addition, investors are looking forward to the Bank of Japan's rate decisions on Friday amid persistent weakness in the Japanese yen.
The Japanese yen traded at a new 34-year low against the U.S. dollar and hovered at 154.82 at 11:30 a.m. local Tokyo time.
The Japanese yen has lost 50% of its value against the U.S. dollar since December 15, 2020.
U.S. Movers: Boeing, Tesla, Texas Instruments, Visa
Scott Peters
24 Apr, 2024
New York City
Tesla jumped 12.4% to $162.25 after the electric vehicle maker reported a decline in sales and earnings, but the company's outlook supported market expectations.
Revenue in the first quarter declined 9% to $21.3 billion, net income dropped 55% to $1.13 billion from $2.51 billion, and diluted earnings per share fell to 34 cents from 73 cents a year ago.
In a statement released to investors, Tesla said the volume growth rate in 2024 "may be notably lower than the growth rate achieved in 2023."
The company said it plans to launch "new vehicles, including more affordable models," manufactured on the same production lines without needing additional investment.
The company aims to achieve a 50% increase in annual vehicle production before investing in new plants and equipment.
Boeing Co. increased 3.3% to $174.60 after the aviation company reported a narrower-than-expected loss and a smaller-than-expected cash outflow in the first quarter.
Revenue in the first quarter declined 8% to $16.5 billion, net loss shrank to $355 million from $425 million, and diluted loss per share eased to 56 cents from 69 cents a year ago.
Visa Inc. rose 2.4% to $280.80 after the payment processor reported stronger-than-expected quarterly results.
Revenue in the fiscal second quarter ending in March increased 10% to $8.8 billion, net income rose 10% to $4.7 billion, and diluted earnings per share advanced 12% to $2.29.
Global payment volume increased by 8%, and cross-border volume, which drives international transactions excluding intra-Europe, jumped 16% on a constant currency basis.
Total processed transactions in the quarter, which represent transactions processed by Visa, 11% to 55.5 billion.
Texas Instruments jumped 6.7% to $176.69 after the advanced semiconductor company reported better-than-expected first-quarter revenue.
Revenue declined 16% to $3.66 billion from $4.4 billion, net income fell 35% to $1.1 billion from $1.7 billion, and diluted earnings per share dropped to $1.20 from $1.85 a year ago.
The company also estimated second-quarter revenue in the range of $3.65 billion to $3.95 billion and earnings per share between $1.05 and $1.25.
U.S. Indexes Rebound as Wall Street Reviews Earnings; Tesla Jumps 11% On Outlook
Barry Adams
24 Apr, 2024
New York City
Benchmark indexes on Wall Street were little changed as investors reviewed the latest batch of mixed earnings.
The S&P 500 index and the Nasdaq Composite hovered near previous closes, yields on Treasury notes edged slightly lower, and crude oil prices struggled to stay above the flatline.
Boeing reported a narrower-than-expected loss in the first quarter; Tesla said in a call with investors that second-quarter results are likely to be better than the first quarter; and Texas Instruments projected higher revenue in the second quarter.
Investors have been on the defensive for the last three weeks amid interest rate uncertainty and strong economic data.
Investors have dialed down their interest rate cut expectations after recent data on nonfarm payrolls and factory orders, home construction, and retail sales indicated resilient economic conditions.
U.S. indexes and yields
The S&P 500 index increased 0.3% to 5,084.03, and the Nasdaq Composite advanced 0.7% to 15,816,82.
The yield on 2-year Treasury notes edged lower to 4.95%, 10-year Treasury notes inched down to 4.63%, and 30-year Treasury bonds edged lower to 4.73%.
WTI crude oil decreased $0.44 to $83.02 a barrel, and natural gas prices decreased 1 cent to $1.80 a thermal unit.
Gold decreased by $8.23 to $2,315.46 an ounce, and silver fell 16 cents to $26.11.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 105.82.
U.S. Stock Movers
Tesla jumped 12.4% to $162.25 after the electric vehicle maker reported a decline in sales and earnings, but the company's outlook supported market expectations.
Revenue in the first quarter declined 9% to $21.3 billion, net income dropped 55% to $1.13 billion from $2.51 billion, and diluted earnings per share fell to 34 cents from 73 cents a year ago.
In a statement released to investors, Tesla said the volume growth rate in 2024 "may be notably lower than the growth rate achieved in 2023."
The company said it plans to launch "new vehicles, including more affordable models," manufactured on the same production lines without needing additional investment.
The company aims to achieve a 50% increase in annual vehicle production before investing in new plants and equipment.
Boeing Co. increased 3.3% to $174.60 after the aviation company reported a narrower-than-expected loss and a smaller-than-expected cash outflow in the first quarter.
Revenue in the first quarter declined 8% to $16.5 billion, net loss shrank to $355 million from $425 million, and diluted loss per share eased to 56 cents from 69 cents a year ago.
Visa Inc. rose 2.4% to $280.80 after the payment processor reported stronger-than-expected quarterly results.
Texas Instruments jumped 6.7% to $176.69 after the advanced semiconductor company reported better-than-expected first-quarter revenue.
Revenue declined 16% to $3.66 billion from $4.4 billion, net income fell 35% to $1.1 billion from $1.7 billion, and diluted earnings per share dropped to $1.20 from $1.85 a year ago.
The company also estimated second-quarter revenue in the range of $3.65 billion to $3.95 billion and earnings per share between $1.05 and $1.25.
Europe Movers: ASM, Air Liquide, Filtronic, Handelsbanken, Kering, Reckitt Benckiser, Roche, Volvo
Inga Muller
24 Apr, 2024
Frankfurt
European market indexes edged slightly higher in cautious trading amid growing uncertainty about the level of interest rates after a possible rate cut in June.
The DAX index increased by 0.3% to 18,194.82; the CAC-40 index rose by 0.3% to 8,126.60; and the FTSE 100 index inched higher by 0.5% to a new intraday record high of 8,084.75.
The yield on 10-year German bonds edged up to 2.54%; French bonds inched higher to 3.04%; the UK gilts edged higher to 4.30%; and Italian bonds inched higher to 3.88%.
ASM International soared 9.9% to €584.40 after the water processing equipment maker reported better-than-expected first quarter results and raised its sales outlook for the second quarter.
Volvo AB increased 0.4% to SEK 283.70, and the Swedish automaker reported first quarter revenue below market expectations but adjusted operating profit rose sharply.
Svenska Handelsbanken AB dropped 9.5% to SEK 123.0 after the Swedish bank reported a decline in earnings in the first quarter.
Net income declined to SEK 6.6 billion from SEK 6.81 billion a year ago, after expenses rose faster than income in the quarter.
Net interest income advanced to SEK 11.59 billion from SEK 11.49 billion, and the bank's common equity Tier 1 ratio, a measure of the bank's financial strength, eased to 18.8% from 19.4% a year ago.
Roche Holding AG decreased 2.8% to CHF 223.20 after the Swiss pharmaceutical company said first-quarter sales declined 6%.
Evotec SE plunged 37% to €8.86 after the German biotech company reported full-year results and appointed a new chief executive.
Revenue increased 4% to €781 million from €751.4 million a year ago.
The company registered an operating loss of €47.5 million compared to a profit of €20.85 million a year ago.
Excluding one-time items related to restructuring, adjusted operating earnings plunged 35% to €66 million from €101.5 million.
The biotech company said business conditions are not likely to improve until the end of 2024, and a simplified business structure is expected to improve operating earnings by €40 million on an annual basis.
Kering SA plunged 8% to €321.85 after the parent company of Gucci projected a 40% to 50% decline in operating profit in the first half.
Casino Guichard-Perrachon increased 3% to €0.031 after the troubled French grocery retailer said it has launched a transformation plan that is aligned with the company's new vision.
Filtronic soared 52% to 50.19 pence after the company announced a strategic partnership with Space Exploration Technologies Group.
Reckitt Benckiser Group advanced 4.5% to 4,442.50 pence after the consumer products company said comparable revenue in the first quarter rose 1.5%.
Air Liquide declined 1.6% to €187.54 after the French industrial gas provider said revenue in the first quarter declined 7.3% to €6.6 billion.
On a comparable basis, revenue rose 2.1% from a year ago.
As a part of its cost reduction goals, the company cut its costs by €112 million in the first quarter, and the gas company is on track to meet its annual cost reduction goal of €400 million.
The company reiterated its annual target of increasing its operating margin and delivering "recurring net profit growth" when measured at a constant currency exchange rate.
Muted Gains In European Indexes Amid Mixed Earnings Reports
Bridgette Randall
24 Apr, 2024
Frankfurt
Stocks in European financial markets bounced higher, but gains were limited as investors debated the future rate path and level as corporate results rolled in.
Benchmark indexes in Frankfurt, Paris, and London edged higher, and bond yields advanced after comments from Bundesbank president Joachim Nagle.
The European Central Bank may not follow up with a series of rate cuts after the June rate cut, Nagle said at an industry conference in Berlin.
Investors are anticipating the ECB to lower its rate cut in June amid a weakening of inflation in the last ten months, but core inflation is still above the central bank's target rate of 2%.
Investors also reviewed the latest update on German business morale index released by the Ifo Institute.
The business confidence index increased to 89.4 in April from 87.8 in March and advanced to the highest level since May 2023.
Business morale is still weak but recovering in the hopes that the European Central Bank will lower the interest rate in June.
Europe Indexes and Yields
The DAX index increased by 0.3% to 18,194.82; the CAC-40 index rose by 0.3% to 8,126.60; and the FTSE 100 index inched higher by 0.5% to a new intraday record high of 8,084.75.
The yield on 10-year German bonds edged up to 2.54%; French bonds inched higher to 3.04%; the UK gilts edged higher to 4.30%; and Italian bonds inched higher to 3.88%.
The euro edged higher to $1.068; the British pound inched higher to $1.242; and the U.S. dollar edged higher to 91.42 Swiss cents.
Brent crude decreased $0.34 to $88.10 a barrel, and the Dutch TTF natural gas fell by €0.10 to €28.55 per MWh.
Europe Stock Movers
ASM International soared 9.9% to €584.40 after the water processing equipment maker reported better-than-expected first quarter results and raised its sales outlook for the second quarter.
Volvo AB increased 0.4% to SEK 283.70, and the Swedish automaker reported first quarter revenue below market expectations but adjusted operating profit rose sharply.
Svenska Handelsbanken AB dropped 9.5% to SEK 123.0 after the Swedish bank reported a decline in earnings in the first quarter.
Net income declined to SEK 6.6 billion from SEK 6.81 billion a year ago, after expenses rose faster than income in the quarter.
Net interest income advanced to SEK 11.59 billion from SEK 11.49 billion, and the bank's common equity Tier 1 ratio, a measure of the bank's financial strength, eased to 18.8% from 19.4% a year ago.
Roche Holding AG decreased 2.8% to CHF 223.20 after the Swiss pharmaceutical company said first-quarter sales declined 6%.
Evotec SE plunged 37% to €8.86 after the German biotech company reported full-year results and appointed a new chief executive.
Revenue increased 4% to €781 million from €751.4 million a year ago.
The company registered an operating loss of €47.5 million compared to a profit of €20.85 million a year ago.
Excluding one-time items related to restructuring, adjusted operating earnings plunged 35% to €66 million from €101.5 million.
The biotech company said business conditions are not likely to improve until the end of 2024, and a simplified business structure is expected to improve operating earnings by €40 million on an annual basis.
Kering SA plunged 8% to €321.85 after the parent company of Gucci projected a 40% to 50% decline in operating profit in the first half.
Nikkei Index In Tokyo Soars 2% After Tech Stocks Rebound
Akira Ito
24 Apr, 2024
Tokyo
Indexes in Tokyo led the gainers in Asia with a rise of 2%, and markets in Seoul and Hong Kong jumped around 1.5%, tracking gains in overnight trading in New York.
Benchmark indexes in Tokyo advanced for the third session in a row following a sharp rise in tech stocks in overnight trading in New York.
In New York, stocks advanced for the second day in a row following positive earnings from General Motors, GE Aerospace, UPS, and PepsiCo.
The Nikkei 225 Stock Average soared 2.3% to 38,425.64, and the Topix index jumped 1.7% to 2,710.69.
In addition, investors are looking forward to the Bank of Japan's rate decisions on Friday amid persistent weakness in the Japanese yen.
The Japanese yen traded at a new 34-year low against the U.S. dollar and hovered at 154.82 at 11:30 a.m. local Tokyo time.
The Japanese yen has lost 50% of its value against the U.S. dollar since December 15, 2020.
Tech stocks led the gainers in Tokyo, and Tokyo Electron, Advantest, Socionext, Disco Corp., and Lasertec advanced between 3% and 8%.
Nidec Corp. plunged as much as 3% before recovering to a gain of 0.5% to ¥6,779.0 after the maker of small electric motors announced a surprise loss in its latest quarter.
The company is battling intense price pressure as price competition heats up in the electric vehicle market in China.
Asahi Kasei Corp. decreased 1% to ¥1,088.0, and the company said it plans to build a $1.3 billion battery component plant in Canada, according to Nikkei News.
The company plans to invest about 200 billion yen, or about $1.3 billion, with a target to start production in 2027 and supply mainly Honda's electric vehicle plant in the nation.
Asahi plans to make lithium-ion battery separators, a key component in electric vehicle batteries.
Hang Seng Index Soar 1.7%, Weakness In IPOs Highlight Cautious Sentiment
Li Chen
24 Apr, 2024
Hong Kong
Stocks in Shanghai struggled to stay above the flatline, but market indexes in Hong Kong advanced for the second consecutive day.
Market sentiment was cautiously optimistic in the hopes that Chinese companies are likely to meet or exceed lowered earnings expectations, supporting the advance indexes from the current depressed levels.
The CSI 300 index decreased 0.01% to 3,505.81, and the Hang Seng Index rose 1.7% to 17,110.21.
Stocks in Hong Kong soared following the rally in Asian markets after advances in New York for the second consecutive day.
Positive earnings by General Motors, GE Aerospace, UPS, and PepsiCo supported the market gains in New York.
Closer to home, Ping An Insurance gained 3.3% to HK$34.05 after the largest insurance company in China reported a smaller-than-expected decline in quarterly earnings.
New Business Value, a measure of revenue and future profitability, was ahead of market expectations and rose 21% from a year ago.
Hong Kong Exchanges & Clearings advanced HK$234.80 ahead of the company's release of earnings later this week.
SenseTime Group soared 31% to HK$0.80 after the company released its latest version of the SenseNova generative AI model used for creative writing.
Investor sentiment continues to be weak for the second day this week as new issues struggle to gain traction.
Mobvoi, the speech recognition software developer, plunged 15% to HK$3.18 after the company listed its share on the Hong Kong Stock Exchange in an initial public offering.
The company sold 84.6 million shares in an initial public offering and priced its shares at HK$3.80 per share, near the lower end of its filing range between HK$3.70 and HK$4.0.
Sichuan Baicha Baidao, the operator of the tea store chain, extended its decline for the second consecutive day and fell 10% to HK$11.52 after the stock plunged 35% on the first day of trading on the Hong Kong Stock Exchange.
On Tuesday, the tea store chain operator sold 174.4 million shares in an initial public offering and priced its shares at HK$17.50 per share.
Elsewhere In Asia, market indexes gained following the advances in overnight trading in New York.
Indexes in Tokyo led the gainers in Asia with a rise of 2%, and markets in Seoul and Hong Kong jumped around 1.5%, tracking gains in overnight trading in New York.
In addition, investors are looking forward to the Bank of Japan's rate decisions on Friday amid persistent weakness in the Japanese yen.
The Japanese yen traded at a new 34-year low against the U.S. dollar and hovered at 154.82 at 11:30 a.m. local Tokyo time.
The Japanese yen has lost 50% of its value against the U.S. dollar since December 15, 2020.
India Movers: Gokaldas, ICICI Prudential, Puravankara, Tata Consumer Products
Arun Goswami
24 Apr, 2024
Mumbai
Stocks in Mumbai opened higher as investors reviewed the latest batch of earnings.
Positive market sentiment was also bolstered by overnight gains in New York for the second day in a row.
The Sensex index increased by 0.1% to 73,810.07, and the Nifty index rose by 0.15% to 22,484.14.
On the Mumbai stock exchange, 105 stocks traded at their 52-week highs, and 3 stocks traded at their 52-week lows.
Gokaldas Exports declined 0.9% to ₹808.15, and the company's board approved an institutional offering to raise as much as ₹775 crore.
Puravankara Ltd. gained 0.2% to ₹356.05 after the company was appointed to develop the Pali Hill project in Mumbai, spanning 10 acres of land.
ICICI Prudential Life Insurance rose 3% to ₹597.85, and the financial service company reported weak quarterly results.
After-tax net income in the March quarter decreased by 26% to ₹173.6 crore, and the value of new business, a measure of revenue, dropped by 26.4% to ₹776 crore from a year ago, respectively.
The margin for new business also declined to 21.4% from 32% in the December quarter.
Tata Consumer Products increased 0.1% to ₹1,172.0, and the company reported a decline in March quarter profit.
Revenue in the quarter increased 8.5% to ₹3,927 crore, and after-tax net profit decreased 19.3% to 217 crore from a year ago, respectively.
New Home Sales Advanced in March
Brian Turner
23 Apr, 2024
New York City
Single-family new home sales increased 8.8% to 693,000 in March from 637,000 in February, the U.S. Census Bureau and the Department of Housing and Urban Development reported Tuesday.
Sales from a year ago increased by 8.3%.
New home sales increased to the highest level in six months from an upwardly revised 5.1% decrease in February.
The median sales price of new houses sold in March was $430,700, and the average sales price was $524,800.
At the end of March, about 477,000 homes were listed for sale, representing about 8.3 months of supply at the current sales rate.
Sales in the Northeast jumped 27% to an annual rate of 46,000, in the Midwest, 5.3% to a 79,000 rate, in the South, 7.7% to 391,000, and in the West, 8.6% to 177,000.
New homes sold in 2023 totaled 666,000, and sales in the first quarter of 2024 increased 4.4% to 181,000 from 174,000 in the period a year ago.