Market Update
Europe Movers: Air France-KLM, BP, Evotec, Serco Group, Vivendi
Inga Muller
14 Dec, 2023
Frankfurt
Benchmark indexes in Frankfurt soared to a record high and in Paris advanced to a multi-year high after the U.S. Federal Reserve held its key lending rate and signaled possible rate cuts over the next two years.
The DAX index increased 0.7% to 16,893.28, the CAC-40 index rose 0.9% to 7,600.03, and the FTSE 100 index advanced 1.9% to 7,696.55.
The yield on 10-year German bonds decreased to 2.03%; French bonds traded lower to 2.56%; the UK gilts eased to 3.67%; and Italian bonds inched higher to 3.75%.
Air France KLM soared 6.9% to €13.04 after the international carrier reiterated its outlook for the period between 2024 and 2026 and lifted its operating margin to above 8% for the period between 2026 and 2028.
The airline's debt was rated BBB- with a stable outlook by Fitch and BB+ with a stable outlook by S&P Global Ratings.
Serco Group advanced 3.9% to 161.40 pence after the UK-based outsourcing company estimated 2024 profit to increase to £260 million.
BP plc increased 2.1% to 469.45 pence after the company denied £32.8 million in cash and stock remuneration to former chief executive Bernard Looney.
The board confirmed the immediate termination of the former chief executive after concluding an investigation that found "serious misconduct."
BP said that Looney knowingly misled board members last year when they inquired about allegations regarding his previous relationships with colleagues and assurances about his future behavior.
Looney's remuneration soared to £10 million in 2022 from £4.5 million in 2021.
Vivendi SE increased 7.8% to €9.66 after the media company announced a plan to study the separate entities as independent listed entities: Canal+, Havas, and an investment company.
Evotec SE soared 10% to €20.46 after the biotech company announced a partnership with Charité-Universitätsmedizin Berlin to create a molecular patient database for ANCA-associated vasculitis, a rare autoimmune condition that causes inflammation of blood vessels with various manifestations.
European Markets Soar to Multi-year Highs Ahead of ECB and BoE Rate Decisions
Bridgette Randall
14 Dec, 2023
Frankfurt
European market indexes soared on Thursday, following a global market advance after the U.S. Federal Reserve held its key lending rate steady and signaled three rate cuts in 2024.
Benchmark indexes in Paris and Frankfurt traded at record highs, and in London they rebounded after the Federal Reserve estimated larger rate cuts in 2024 than previously indicated in September.
The Bank of England and the European Central Bank are scheduled to announce their rate decisions later in the day, and both central banks are widely anticipated to hold rates steady.
Despite the economic slowdown in the eurozone and the UK, central banks are expected to keep interest rates at muti-decade highs in order to bring down inflation.
Bond yields fell sharply in trading today, and the yield on the German 10-year Bund declined to a low last seen in mid-January, and the yields on French, Italian, and UK bonds eased as well.
Switzerland Holds Rates, Norway Hikes
The Swiss National Bank also left its policy rate unchanged at 1.75%, a second consecutive decision to hold rates in a row, and policymakers said inflation forces are weakening.
Consumer price inflation in Switzerland eased to 1.4% in November, the lowest level since October 2021.
The Norwegian central bank increased its policy rate by 25 basis points to 4.5%.
Norges Bank Governor Ida Wolden Bache said that rates are likely to remain high "for some time ahead" because inflation is still too high despite the recent economic slowdown.
Europe Indexes and Yield
The DAX index increased 0.7% to 16,893.28, the CAC-40 index rose 0.9% to 7,600.03, and the FTSE 100 index advanced 1.9% to 7,696.55.
The yield on 10-year German bonds decreased to 2.03%; French bonds traded lower to 2.56%; the UK gilts eased to 3.67%; and Italian bonds inched higher to 3.75%.
The euro traded lower to $1.09, the British pound inched lower to $1.265, and the U.S. dollar eased to 86.98 Swiss cents.
Brent crude decreased $1.30 to $75.56 a barrel, and the Dutch TTF natural gas increased by €0.39 to €35.43 per MWh.
Europe Stock Movers
Air France KLM soared 6.9% to €13.04 after the international carrier reiterated its outlook for the period between 2024 and 2026 and lifted its operating margin to above 8% for the period between 2026 and 2028.
The airline's debt was rated BBB- with a stable outlook by Fitch and BB+ with a stable outlook by S&P Global Ratings.
Serco Group advanced 3.9% to 161.40 pence after the UK-based outsourcing company estimated 2024 profit to increase to £260 million.
BP plc increased 2.1% to 469.45 pence after the company denied £32.8 million in cash and stock remuneration to former chief executive Bernard Looney.
The board confirmed the immediate termination of the former chief executive after concluding an investigation that found "serious misconduct."
BP said that Looney knowingly misled board members last year when they inquired about allegations regarding his previous relationships with colleagues and assurances about his future behavior.
Looney's remuneration soared to £10 million in 2022 from £4.5 million in 2021.
Vivendi SE increased 7.8% to €9.66 after the media company announced a plan to study the separate entities as independent listed entities: Canal+, Havas, and an investment company.
Evotec SE soared 10% to €20.46 after the biotech company announced a partnership with Charité-Universitätsmedizin Berlin to create a molecular patient database for ANCA-associated vasculitis, a rare autoimmune condition that causes inflammation of blood vessels with various manifestations.
Fed Funds Rates Unchanged, 2023 GDP Growth Estimate Revised Higher
Brian Turner
13 Dec, 2023
New York City
Stocks on Wall Street surged after the Federal Reserve left rates unchanged and signaled multiple rate cuts in 2024.
Benchmark indexes rebounded after the Federal Reserve left the fed funds rate range unchanged between 5.25% and 5.50%.
Policymakers noted that economic growth has slowed, job growth has moderated but remains strong, and inflation is on a downward trajectory but remains elevated.
The 22-year high rates were left unchanged for the third time in a row, and policymakers also laid the groundwork for rate cuts in 2024 and beyond.
Eight policymakers estimated fewer than three quarter percentage point rate cuts in 2024, while five projected a larger number of rate cuts next year.
Fed funds rates are expected to decline to 5.4% at the end of 2023 from the September projection of 5.6%, and ease to 4.6% at the end of 2024 from 5.1% respectively.
The central bank, in its 'dot plot,' also revised its higher GDP growth estimate by 50 basis points to 2.6% in 2023, but lowered its estimate to 1.4% from 1.5% in 2024.
The projection for the unemployment rate was held steady at 3.8% in 2023 and 4.1% in 2024.
The Personal Consumption Expenditure, or PCE, inflation estimate for 2023 was revised lower to 2.8% from 3.3% estimated in September and for 2024 to 2.4% from 2.5%, respectively.
The two latest inflation reports showed a mixed picture on the inflation front. Consumer price inflation in November eased to 3.1%, but the core rate of inflation held steady at 4.0%.
The latest update on producer prices showed that wholesale inflation held steady in November.
Investors also reviewed the persistent decline in energy prices, and crude oil prices extended their weekly decline to the eighth week in a row.
Investors have bid up stocks for the last six consecutive weeks in the belief that interest rates are more likely to decline.
But the Federal Reserve may keep higher rates for longer before strong evidence emerges that inflation is on a sustainable downward path to the Fed's target rate of 2%.
U.S. Stocks Soared After Fed Holds Rates Steady and Signals Multiple Rates Cuts In 2024
Barry Adams
13 Dec, 2023
New York City
Stocks on Wall Street surged after the Federal Reserve left rates unchanged and signaled multiple rate cuts in 2024.
Benchmark indexes rebounded after the Federal Reserve left the fed funds rate range unchanged between 5.25% and 5.50%.
Policymakers noted that economic growth has slowed, job growth has moderated but remains strong, and inflation is on a downward trajectory but remains elevated.
The 22-year high rates were left unchanged for the third time in a row, and policymakers also laid the groundwork for rate cuts in 2024 and beyond.
Eight policymakers estimated fewer than three quarter percentage point rate cuts in 2024, while five projected a larger number of rate cuts next year.
The central bank, in its 'dot plot,' also revised its higher GDP growth estimate by 50 basis points to 2.6% in 2023, but lowered its estimate to 1.4% from 1.5% in 2024.
The projection for the unemployment rate was held steady at 3.8% in 2023 and 4.1% in 2024.
The Personal Consumption Expenditure, or PCE, inflation estimate for 2023 was revised lower to 2.8% from 3.3% estimated in September and for 2024 to 2.4% from 2.5%, respectively.
The two latest inflation reports showed a mixed picture on the inflation front. Consumer price inflation in November eased to 3.1%, but the core rate of inflation held steady at 4.0%.
The latest update on producer prices showed that wholesale inflation held steady in November.
Investors also reviewed the persistent decline in energy prices, and crude oil prices extended their weekly decline to the eighth week in a row.
Investors have bid up stocks for the last six consecutive weeks in the belief that interest rates are more likely to decline.
But the Federal Reserve may keep higher rates for longer before strong evidence emerges that inflation is on a sustainable downward path to the Fed's target rate of 2%.
Wholesale Inflation Held Steady In November
The Producer Price Index was unchanged from the previous month in November after adjusting for seasonal factors, the Bureau of Labor Statistics reported Wednesday.
On an unadjusted basis, the producer price index increased 0.9% from a year ago.
Producer Price Index for final demand, less food, energy, and trade services, edged up 0.1% in November from the previous month and rose 2.5% from a year ago.
U.S. Indexes and Yields
The S&P 500 index gained 0.7% to 4,678.52, and the Nasdaq Composite increased 0.8% to 14,647.38.
The yield on 2-year Treasury notes decreased to 4.53%, 10-year Treasury notes inched lower to 4.08%, and 30-year Treasury bonds increased to 4.23%.
Crude oil increased $1.04 to $69.65 a barrel, and natural gas prices rose 0.1 cent to $2.32 a thermal unit.
Gold increased $20.34 to $2,005.25 an ounce ahead of the Fed's rate decision on Wednesday.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged higher to 103.14.
U.S. Stock Movers
Tesla declined 1.0% to $234.65 after the electric vehicle maker recalled about 2 million vehicles to fix an Autopilot defect.
Pfizer decreased 7.2% to $26.83 after the pharmaceutical company reported a weaker-than-anticipated 2024 revenue outlook.
Full-year revenue is anticipated to range between $58.5 billion and $61.5 billion, and the company said earnings are likely to be negatively impacted by its recent acquisition of cancer treatment-focused biotech company Seagen.
Modest Gains In European Markets
European market indexes were little changed after the release of the eurozone industrial production data and ahead of the Federal Reserve's rate decision later in the day.
Benchmark indexes in Frankfurt, Parris, and London edged higher, and the euro drifted lower.
Eurozone Industrial Output Shrank In October
Eurozone industrial output declined 0.7% from the previous month in October, Eurostat reported Wednesday.
The decline in output moderated after falling 1.0% in September.
Capital goods output fell 1.4% following a 0.6% decrease in both intermediate goods and non-durable consumer goods.
On the other hand, durable goods output rose by 0.2%, and energy output rose by 1.1%.
Industrial output declined 6.6% from a year ago.
UK GDP Unexpectedly Contracted In October
The UK GDP unexpectedly contracted by 0.3% in October from the previous month after rising by 0.2% in September, the Office for National Statistics reported on Wednesday.
GDP expanded 0.3% from a year ago, slower than 1.3% in September.
The pound inched lower after the release of the GDP report.
Europe Indexes and Yield
The DAX index decreased 0.2% to 16,766.05, the CAC-40 index fell 0.2% to 7,531.22, and the FTSE 100 index advanced 0.1% to 7,548.44.
The yield on 10-year German bonds decreased to 2.20%; French bonds traded lower to 2.74%; the UK gilts eased to 3.91%; and Italian bonds inched higher to 3.99%.
The euro traded lower to $1.078, the British pound inched lower to $1.253, and the U.S. dollar eased to 87.62 Swiss cents.
Brent crude increased $1.06 to $74.30 a barrel, and the Dutch TTF natural gas advanced by €1.11 to €35.81 per MWh.
Europe Stock Movers
Weak energy prices dragged down the stocks of oil explorers, refiners, and marketers.
BP plc, Shell PLC, TotalEnergies SE, and Repsol fell around 0.3%.
Entain PLC rose 4.5% to 842.40 pence on a report that its chief executive, Jett Nygaard-Andersen, is stepping down and the board has appointed Stella David, a non-executive director, as interim chief executive until a permanent replacement has been found.
In August, the owner of Ladbrokes and Coral bookmakers set aside £585 million to cover penalties and fines related to a tax authority investigation into alleged illegal practices linked to a Turkish-facing online betting and gaming business that the company owned between 2011 and 2017.
Inditex rose 1.2% to €38.75 after the Spanish apparel retailer reported strong holiday sales and lifted its fiscal year 2023 margin outlook.
Net sales in the nine-month period ending in October increased to €25.6 billion from €23.0 billion, net income rose to €4.1 billion from €3.1 billion, and net income per share rose to €1.32 from 99 euro cents.
U.S. Movers: Pfizer, Take-Two Interactive, Tesla, Twilio
Scott Peters
13 Dec, 2023
New York City
Stocks edged higher ahead of the Federal Reserve's rate decision later in the day.
Investors widely anticipate the central bank's holding rates, and markets are awaiting comments from Fed Chairman Jerome Powell and the central bank's estimate of inflation, economic growth, and the unemployment rate.
The S&P 500 index gained 0.2% to 4,651.25, and the Nasdaq Composite increased 0.3% to 14,578.05.
The yield on 2-year Treasury notes decreased to 4.72%, 10-year Treasury notes inched lower to 4.18%, and 30-year Treasury bonds increased to 4.28%.
Tesla declined 1.0% to $234.65 after the electric vehicle maker recalled about 2 million vehicles to fix an Autopilot defect.
Pfizer decreased 7.2% to $26.83 after the pharmaceutical company reported a weaker-than-anticipated 2024 revenue outlook.
The company anticipates full-year revenue in the range of $58.5 billion and $61.5 billion and said earnings are likely to be negatively impacted by its recent acquisition of cancer treatment-focused biotech company Seagen.
Take-Two Interactive Software increased by 2.9% to $161.69, and the company is set to be included in the Nasdaq 100 index on December 18.
Twilio edged down a fraction to $71.21, and the company hired investment advisor Qatalyst to defend against activist investors.
Anson Funds and Legion Partners have been pushing the company to divest one of its business units or sell the company.
CNBC first reported that Twilio is working with an investment advisor.
Twilio stock has jumped more than 40% in the year so far, but the stock is still down about 84% from its peak in February 2021.
Wholesale Inflation Held Steady In November
Brian Turner
13 Dec, 2023
New York City
The Producer Price Index was unchanged from the previous month in November after adjusting for seasonal factors, the Bureau of Labor Statistics reported Wednesday.
On an unadjusted basis, the producer price index increased 0.9% from a year ago.
Producer Price Index for final demand, less food, energy, and trade services, edged up 0.1% in November from the previous month and rose 2.5% from a year ago.
U.S. Stocks Edge Higher Ahead of Fed's Rate Decision and Commentary
Barry Adams
13 Dec, 2023
New York City
Stocks on Wall Street advanced ahead of the rate decision from the Federal Reserve later in the day.
Benchmark indexes edged higher on the wide belief that the Federal Reserve is set to leave rates unchanged. The Federal Reserve is expected to announce its decision at 2:00 p.m. ET today.
Investors are also looking forward to comments from Federal Reserve Chair Jerome Powell.
Powell is expected to counter the belief that interest rates are near peak levels and that the central bank is preparing to lower rates as early as the first quarter of 2024.
The two latest inflation reports showed a mixed picture on the inflation front. Consumer price inflation in November eased to 3.1%, but the core rate of inflation held steady at 4.0%.
The latest update on producer prices showed that wholesale inflation held steady in November.
Investors also reviewed the persistent decline in energy prices, and crude oil prices extended their weekly decline to the eighth week in a row.
Investors have bid up stocks for the last six consecutive weeks in the belief that interest rates are more likely to decline.
But the Federal Reserve may keep higher rates for longer before strong evidence emerges that inflation is on a sustainable downward path to the Fed's target rate of 2%.
Wholesale Inflation Held Steady In November
The Producer Price Index was unchanged from the previous month in November after adjusting for seasonal factors, the Bureau of Labor Statistics reported Wednesday.
On an unadjusted basis, the producer price index increased 0.9% from a year ago.
Producer Price Index for final demand, less food, energy, and trade services, edged up 0.1% in November from the previous month and rose 2.5% from a year ago.
U.S. Indexes and Yields
The S&P 500 index gained 0.2% to 4,651.25, and the Nasdaq Composite increased 0.3% to 14,578.05.
The yield on 2-year Treasury notes decreased to 4.72%, 10-year Treasury notes inched lower to 4.18%, and 30-year Treasury bonds increased to 4.28%.
Crude oil decreased $0.11 to $68.85 a barrel, and natural gas prices fell 0.1 cent to $2.30 a thermal unit.
Gold increased $2.04 to $1,981.42 an ounce ahead of the Fed's rate decision on Wednesday.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged higher to 103.94.
U.S. Stock Movers
Tesla declined 1.0% to $234.65 after the electric vehicle maker recalled about 2 million vehicles to fix an Autopilot defect.
Pfizer decreased 7.2% to $26.83 after the pharmaceutical company reported a weaker-than-anticipated 2024 revenue outlook.
Full-year revenue is anticipated to range between $58.5 billion and $61.5 billion, and the company said earnings are likely to be negatively impacted by its recent acquisition of cancer treatment-focused biotech company Seagen.
Europe Movers: Energy Stocks, Entain, Inditex
Inga Muller
13 Dec, 2023
Frankfurt
European stock market indexes hovered near the flatline ahead of the rate decision from the Federal Reserve later today.
The DAX index increased 0.1% to 16,810.98, the CAC-40 index rose 0.3% to 7,566.88, and the FTSE 100 index advanced 0.3% to 7,562.41.
The yield on 10-year German bonds decreased to 2.20%; French bonds traded lower to 2.74%; the UK gilts eased to 3.91%; and Italian bonds inched higher to 3.99%.
Energy exploration companies declined after crude oil prices dropped 4% in the previous session.
BP plc, Shell PLC, TotalEnergies SE, and Repsol fell around 0.3%.
Entain PLC rose 4.5% to 842.40 pence on a report that its chief executive, Jett Nygaard-Andersen, is stepping down and the board has appointed Stella David, a non-executive director, as interim chief executive until a permanent replacement has been found.
In August, the owner of Ladbrokes and Coral bookmakers set aside £585 million to cover penalties and fines related to a tax authority investigation into alleged illegal practices linked to a Turkish-facing online betting and gaming business that the company owned between 2011 and 2017.
Inditex rose 1.2% to €38.75 after the Spanish apparel retailer reported strong holiday sales and lifted its fiscal year 2023 margin outlook.
Net sales in the nine-month period ending in October increased to €25.6 billion from €23.0 billion, net income rose to €4.1 billion from €3.1 billion, and net income per share rose to €1.32 from 99 euro cents.
Gross margin increased 67 basis points from a year ago to 59.4%, and for the full-year 2023, the company estimated gross margin to increase by 75 basis points from a year ago.
Modest Gains In European Stock Markets, Eurozone Industrial Output Dropped
Bridgette Randall
13 Dec, 2023
New York City
European market indexes were little changed after the release of the eurozone industrial production data and ahead of the Federal Reserve's rate decision later in the day.
Benchmark indexes in Frankfurt, Parris, and London edged higher, and the euro drifted lower.
Eurozone Industrial Output Shrank In October
Eurozone industrial output declined 0.7% from the previous month in October, Eurostat reported Wednesday.
The decline in output moderated after falling 1.0% in September.
Capital goods output fell 1.4% following a 0.6% decrease in both intermediate goods and non-durable consumer goods.
On the other hand, durable goods output rose by 0.2%, and energy output rose by 1.1%.
Industrial output declined 6.6% from a year ago.
UK GDP Unexpectedly Contracted In October
The UK GDP unexpectedly contracted by 0.3% in October from the previous month after rising by 0.2% in September, the Office for National Statistics reported on Wednesday.
GDP expanded 0.3% from a year ago, slower than 1.3% in September.
The pound inched lower after the release of the GDP report.
Europe Indexes and Yield
The DAX index increased 0.1% to 16,810.98, the CAC-40 index rose 0.3% to 7,566.88, and the FTSE 100 index advanced 0.3% to 7,562.41.
The yield on 10-year German bonds decreased to 2.20%; French bonds traded lower to 2.74%; the UK gilts eased to 3.91%; and Italian bonds inched higher to 3.99%.
The euro traded lower to $1.078, the British pound inched lower to $1.253, and the U.S. dollar eased to 87.62 Swiss cents.
Brent crude decreased $0.15 to $73.09 a barrel, and the Dutch TTF natural gas increased by €0.17 to €34.88 per MWh.
Europe Stock Movers
Weak energy prices dragged down the stocks of oil explorers, refiners, and marketers.
BP plc, Shell PLC, TotalEnergies SE, and Repsol fell around 0.3%.
Entain PLC rose 4.5% to 842.40 pence on a report that its chief executive, Jett Nygaard-Andersen, is stepping down and the board has appointed Stella David, a non-executive director, as interim chief executive until a permanent replacement has been found.
In August, the owner of Ladbrokes and Coral bookmakers set aside £585 million to cover penalties and fines related to a tax authority investigation into alleged illegal practices linked to a Turkish-facing online betting and gaming business that the company owned between 2011 and 2017.
Inditex rose 1.2% to €38.75 after the Spanish apparel retailer reported strong holiday sales and lifted its fiscal year 2023 margin outlook.
Net sales in the nine-month period ending in October increased to €25.6 billion from €23.0 billion, net income rose to €4.1 billion from €3.1 billion, and net income per share rose to €1.32 from 99 euro cents.
Movers: Axis Bank, KIOCL, Mankind Pharma, Max Healthcare, Paul Merchants, SRF
Arun Goswami
13 Dec, 2023
Mumbai
Stocks in Mumbai traded down after consumer price inflation rebounded in November, and investors overlooked the 4% decline in international crude oil prices.
The Sensex index decreased 111.51 points to 69,439.53, and the Nifty index fell 39.75 points to 20,866.50.
On the Mumbai stock exchange, 171 stocks traded at their 52-week highs and 7 stocks traded at their 52-week lows.
In Wednesday's trading, tech services exporters were among the leading decliners, and automakers and consumer product makers led the gainers.
TCS, Infosys, Wipro, and Tech Mahindra declined between 1% and 2.5%.
HDFC Bank, Kotak Mahindra, and the State Bank of India declined by around 0.3%.
Mankind Paharma rose 0.1% to ₹1,855.90, and three private equity firms sold 7.9% stakes in the company worth ₹5,589 crore.
Max Healthcare Institute rose 1.5% to ₹710.35 and extended gains for the fifth day in a row after the company agreed to acquire Lucknow-based 550-bed Sahara Hospital for ₹940 crore.
Paul Merchants rose 2.0% to ₹3,755.05 after the company board is scheduled to meet on December 20 to consider a stock bonus issue.
Axis Bank declined 1% to ₹1,119.35 on a report that the private equity firm Bain Capital is looking to sell a 1% stake in the company.
KIOCL declined 1.3% to ₹366.45 after the iron ore mining company halted processing at its Mangalore plant due to the lack of availability of iron ore fines.
SRF Ltd. advanced 0.8% to ₹2,398.0 after the maker of specialty intermediate chemicals said it had commissioned two of the four manufacturing plants.
The company's investment in two plants has been capitalized at ₹255 crore.
India Stocks Face Selling Pressure, Industrial Production Growth Jumps
Arjun Pandit
13 Dec, 2023
Mumbai
Stocks in Mumbai lost early gains after investors reviewed the latest global and domestic macroeconomic data.
India's industrial output growth soared to a 16-month high after double-digit increases in power, mining, and manufacturing production.
However, consumer price inflation rebounded to 5.55% in November from 4.87% in October after food price inflation accelerated, the National Statistics Office reported on Tuesday.
Overall inflation accelerated to a 4-month high after food price inflation jumped to a three-month high of 8.7% after agriculture output fell because of four-month low monsoon rains in 2023.
The Sensex and the Nifty indexes edged up after crude oil plunged nearly 4% in New York trading on rising supplies from the U.S., Canada, Brazil, and Guyana in the face of weak demand growth from China.
India imports more than 60% of its energy needs, and lower oil prices reduce the country's import bill.
In overnight trading, market indexes in the U.S. reached a new 52-week high after consumer price inflation edged lower to 2.1% in November from 3.2% in October.
The softer inflation reduces pressure on the Federal Reserve to keep higher interest for longer and maneuver the economy to a soft landing while cooling inflation.
Industrial Output Growth Jumped to 16-month High
India's industrial production increased by 11.7% in October, a 16-month high, the National Statistics Office reported late Monday.
The index advanced after manufacturing, and power output increased by double digits in the month.
Manufacturing output increased 10.4% from a year ago when the output contracted 5.8%, power generation soared 20.4% from a year ago, and mining output advanced 13.1%.
India Indexes and Yields
The Sensex index decreased 111.51 points to 69,439.53, and the Nifty index fell 39.75 points to 20,866.50.
On the Mumbai stock exchange, 171 stocks traded at their 52-week highs and 7 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds held firm at 7.26%, and the Indian rupee hovered near ₹83.37 against the U.S. dollar.
The gold price decreased by 0.1% to ₹61,108 per ten grams, and silver fell by 0.4% to ₹71,591 per kilo.
Crude oil decreased by 0.1% to ₹5,758 per barrel, and natural gas fell by 3.9% to ₹188.60 per thermal unit.
India Stock Movers
In Wednesday's trading, tech services exporters were among the leading decliners, and automakers and consumer product makers led the gainers.
TCS, Infosys, Wipro, and Tech Mahindra declined between 1% and 2.5%.
HDFC Bank, Kotak Mahindra, and the State Bank of India declined by around 0.3%.
Mankind Paharma rose 0.1% to ₹1,855.90, and three private equity firms sold 7.9% stakes in the company worth ₹5,589 crore.
Max Healthcare Institute rose 1.5% to ₹710.35 and extended gains for the fifth day in a row after the company agreed to acquire Lucknow-based 550-bed Sahara Hospital for ₹940 crore.
Paul Merchants rose 2.0% to ₹3,755.05 after the company board is scheduled to meet on December 20 to consider a stock bonus issue.
Axis Bank declined 1% to ₹1,119.35 on a report that the private equity firm Bain Capital is looking to sell a 1% stake in the company.
S&P 500 and Nasdaq Hit New 52-week Intraday Highs, Crude Oil Plunged 4%
Barry Adams
12 Dec, 2023
New York City
Stocks gained after bulls and bears found something to talk about in the latest inflation report.
The S&P 500 index and the Nasdaq Composite extended their gains for the fourth day in a row and for the last six consecutive weeks.
Both indexes reached new 52-week intraday highs after the latest inflation report met investors expectations, but core inflation stayed significantly above the Fed's target level.
The Federal Reserve is also set to announce its rate decision Wednesday at the end of its two-day policy meeting.
Investors widely anticipate the central bank holding the fed funds rate range between 5.25% and 5.50% for the third time in a row.
Market indexes have soared and stretched this year's gains in the hopes that the robust labor market conditions are likely to help the Federal Reserve navigate the economy to slower growth near 2% and avoid a recession while simultaneously cooling inflation to its target range of 2%.
U.S. Consumer Price Inflation Slowed to 3.1%
The consumer price index in November rose 0.1% from the previous month and increased 3.1% from a year ago, the Bureau of Labor Statistics reported Tuesday.
Core inflation, which excludes food and energy, rose 0.3% in November after rising 0.2% in October.
On an annual basis, core inflation rose 4.0%, matching the expectations set by a group of five economists surveyed by Ticker.com.
Energy prices declined 5.4%, reflecting lower prices for gasoline, while food prices rose 2.9% and shelter costs soared 6.4% from a year ago.
U.S. Indexes and Yields
The S&P 500 index gained 0.3% to 4,633.45, and the Nasdaq Composite increased 0.4% to 14,495.94.
The yield on 2-year Treasury notes decreased to 4.69%, 10-year Treasury notes inched lower to 4.18%, and 30-year Treasury bonds increased to 4.28%.
Crude oil prices dropped 4% and extended the decline of the previous seven consecutive weeks after the latest inflation report raised the prospect of weakening demand.
Oil prices have been under pressure following the surging production in the U.S., Canada, and Brazil, and new supplies from Guyana are also adding to the global markets.
Crude oil decreased $2.95 to $68.35 a barrel, and natural gas prices fell 12 cent to $2.30 a thermal unit.
Gold increased $6.64 to $1,988.15 an ounce ahead of the release of the inflation report today and the Fed's rate decision on Wednesday.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged higher to 103.87.
U.S. Stock Movers
Lucid Group decreased 2.8% to $4.48 after the company said chief financial officer Sherry House is resigning, effective immediately, to pursue other opportunities.
Ms. House will be available in an advisory role through the end of the year to assist in the transition of her duties.
Hasbro declined 5.3% to $46.30 after the toymaker announced its plan to lay off 1,100 workers, according to a memo cited by CNBC.
"The toymaker is grappling with soft sales that have continued into the holiday season and are “likely to persist into 2024,” chief executive Chris Cocks said in the memo to internal staff.
Alphabet Inc. decreased 0.7% to $132.33 after a federal jury in California ruled against the company's Google Android App Store filed by Fortnite video game maker Epic Games.
In a unanimous verdict, the jury said that the company's Android app Store has violated antitrust laws and secured billions of dollars in profit by forcing Play Store customers to use its high-priced payment processing.
Google said it plans to challenge the jury verdict, and the company will appeal the decision.
Oracle Corp. declined 8.9% to $104.91 after the database giant reported weaker-than-expected revenue in the fiscal second quarter.
The company reported weaker-than-estimated revenue in the cloud segment and database license support.
European Markets Traded Around Flatline
The European markets traded higher, and investors awaited rate decisions from the European Central Bank and other central banks this week.
Benchmark indexes in Germany and France advanced and traded near recent highs, but the market indexes in London edged lower on the persistent weakness in commodity prices.
Economic news dominated market sentiment, and investors reviewed the latest decline in the German wholesale price index and the slower wage growth in the UK.
German Wholesale Prices Decline Extended to 8th Month
Germany's wholesale prices declined 3.6% in November following the falls of 4.2% in October and 4.1% in September, the Federal Statistics Office, or Desatis, reported Tuesday.
Wholesale inflation declined for the eighth month in a row, reflecting higher prices in the previous year because of the war in Ukraine.
Wholesale prices fell 0.2% from the previous month, but at a slower pace than the 0.7% decline in October.
Petroleum product prices decreased by 13.9%; grain, seed, and tobacco prices by 24.3%; chemical products by 20.9%; and metals and semi-finished metal products by 12.8%.
On the other hand, wholesale prices for fruits and vegetables jumped 14.8%, sugar, confectionary, and bakery products increased 10.1%, and beverage prices increased 7.4%.
UK Wage Growth Slowed, Jobless Rate Held Steady at 4.2%
Weekly regular wages in the UK increased less than expected in the three months to October, the Office for National Statistics reported Tuesday.
Regular weekly wages, excluding bonuses, increased 7.3% to £620 in the period, slower than the upwardly revised 7.8% in the previous period ending in September.
The average wage, including bonuses, increased 7.2% from a year ago, slower than the revised 8.0% increase in the previous period.
The regular wage rose at a slower pace for the second time in a row and advanced at the slowest pace in six months.
Wage growth in the private sector slowed to 7.3% from 7.9%, and wages in the public sector rose 6.9% compared to 7.4% in the previous period.
Real wages, after adjusting for inflation, rose 1.4%.
The unemployment rate held steady from the previous period at 4.2% in the three months to October.
Job vacancies declined for the 17th period in a row, and vacancies fell for the longest period on record but were still higher than pre-pandemic levels, the ONS said in the report.
Job vacancies decreased by 45,000 to 949,000 in the quarter ending in November from the previous quarter ending in August.
The estimated number of jobs in the workforce expanded to a record 36.8 million in September, an increase of 210,000 from June.
Europe Indexes and Yield
The DAX index decreased 0.02% to 16,791.74, the CAC-40 index fell 0.2% to 7,543.11, and the FTSE 100 index fell 0.03% to 7,542.77.
The yield on 10-year German bonds increased to 2.29%; French bonds traded higher to 2.78%; the UK gilts rose to 3.98%; and Italian bonds inched higher to 4.01%.
The euro traded lower to $1.079, the British pound inched lower to $1.256, and the U.S. dollar eased to 87.66 Swiss cents.
Brent crude decreased $3.04 to $72.98 a barrel, and the Dutch TTF natural gas declined by €1.42 to €34.70 per MWh.
Europe Stock Movers
Rate-sensitive stocks were in focus ahead of the interest rate decision and policy announcement from the European Central Bank on Thursday.
BNP Paribas, Societe Generale, Deutsche Bank, Commerzbank, and UniCredit declined between 0.1% and 1.5%.
Allianz, Swiss Re, Generali, Aegon, and Mapfre declined between 0.2% and 1.5%.
Nokia Oyj rose 1.3% to €2.98 after the telecom equipment maker lowered its profitability goal after the company lost a multi-year contract with the U.S.-based AT&T.
U.S. Movers: Alphabet, Hasbro, Lucid Group, Oracle
Scott Peters
12 Dec, 2023
New York City
Lucid Group decreased 2.8% to $4.48 after the company said chief financial officer Sherry House is resigning, effective immediately, to pursue other opportunities.
Ms. House will be available in an advisory role through the end of the year to assist in the transition of her duties.
Hasbro declined 5.3% to $46.30 after the toymaker announced its plan to lay off 1,100 workers, according to a memo cited by CNBC.
"The toymaker is grappling with soft sales that have continued into the holiday season and are “likely to persist into 2024,” chief executive Chris Cocks said in the memo to internal staff.
Alphabet Inc. decreased 0.7% to $132.33 after a federal jury in California ruled against the company's Google Android App Store filed by Fortnite video game maker Epic Games.
In a unanimous verdict, the jury said that the company's Android app Store has violated antitrust laws and secured billions of dollars in profit by forcing Play Store customers to use its high-priced payment processing.
Google said it plans to challenge the jury verdict, and the company will appeal the decision.
Oracle Corp. declined 8.9% to $104.91 after the database giant reported weaker-than-expected revenue in the fiscal second quarter.
The company reported weaker-than-estimated revenue in the cloud segment and database license support.
Revenue in the fiscal second quarter ending in November increased 5% to $12.9 billion, net income advanced $2.5 billion from $1.74 billion, and diluted earnings per share 89 cents from 63 cents.
The company announced cash dividend of 40 cents to shareholders on record on January 11, 2024 and payable on January 25, 2024.