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Europe Movers: Anglo American, Berkeley Group, Energy Stocks, Monk Investment, Vivendi, Worldline

Inga Muller
08 Dec, 2023
Frankfurt

European markets advanced on the final day of the week and extended weekly gains for the sixth week in a row.

The DAX index increased 0.4% to 16,695.43, the CAC-40 index rose 1.0% to 7,498.74, and the FTSE 100 index fell 0.6% to 7,556.17.

For the week, the DAX index advanced 1.6%, the CAC-40 index gained 2.2%, and the FTSE 100 index gained 0.2%.

The yield on 10-year German bonds increased to 2.23%; French bonds traded higher to 2.77%; the UK gilts rose to 4.02%; and Italian bonds inched higher to 4.0%.

Natural resource stocks were in focus after energy prices rebounded by about 1.5% following calls from Saudi Arabia and Russia to cut oil production.

BP Plc rose 1.4% to 466.80 pence, Shell PLC added 1% to €29.65, Repsol added 0.5% to €13.88, and TotalEnergies gained 1% to €61.31.

Anglo American dropped 7.2% to 2,065.50 pence after the company announced a plan to lower its production in a bid to cut costs.

The company said it has reduced its operating costs by $0.5 billion in 2023 and identified an additional $0.5 billion in cost savings in 2024.

Moreover, the company plans to reduce its capex by $0.2 billion to $5.8 billion.

The diversified mining company said it will reduce its production at its iron ore mine in Kumba, South Africa, focus on higher margin production of platinum group metals, and continue production at only one plant at the Los Bronces copper operation in Chile.

The mining company forecasted 2023 production to increase by 0.3%: Quellaveco copper production ramp-up and solid iron ore production, offset by ore grades in Chile and lower platinum group metals and diamonds production.

Monk Investment Trust PLC gained 0.8% to 1,014.39 pence after the company reported a narrower loss in the first half of the fiscal year.

Berkeley Group Holdings decreased 1.8% to 4,848.0 pence after the home builder cautioned about challenging market conditions.

Vivendi Group advanced 2.4% to €8.88 after the media group was set to be included in the CAC 40 index on December 18, replacing Worldline.

Worldline added 0.7% to €15.87.

European Markets Rally Extends to Fourth Week, German Inflation Eased In November

Bridgette Randall
08 Dec, 2023
Frankfurt

European markets traded higher on the final day of the week, and bond yields rebounded from seven-month lows.

Benchmark indexes in Frankfurt and Paris gained, but in London they edged lower after Germany confirmed the decline in inflation in November.

Market indexes in Europe are set to close higher for the fourth week in a row.

Investors have been bidding up stocks in the hopes that interest rates are near peak rates and the European Central Bank may lead other central banks of the advanced nations in cutting rates as early as the first quarter of 2024.

Germany's inflation eased in November.

German consumer price inflation was confirmed at 3.2%, the Federal Statistics Office, or Destatis, reported Friday.

Overall annual inflation eased to 3.2% from 3.8% in October and declined for the fifth month in a row.

Consumer price inflation declined by 0.4% on a monthly basis after staying stable in October.

The sharp decline in overall inflation was driven by a slowdown in food inflation to 5.5% from 6.1% and an additional decline in energy prices to 4.2% from 3.5% in the previous month, respectively.

Core inflation, which excludes volatile food and energy prices, slowed to 3.2% from 3.8% in the previous month.

Europe Indexes and Yields

The DAX index increased 0.4% to 16,695.43, the CAC-40 index rose 1.0% to 7,498.74, and the FTSE 100 index fell 0.6% to 7,556.17.

For the week, the DAX index advanced 1.6%, the CAC-40 index gained 2.2%, and the FTSE 100 index gained 0.2%.

The yield on 10-year German bonds increased to 2.23%; French bonds traded higher to 2.77%; the UK gilts rose to 4.02%; and Italian bonds inched higher to 4.0%.

The euro traded lower to $1.078, the British pound inched lower to $1.257, and the U.S. dollar eased to 87.52 Swiss cents.

Brent crude increased $1.06 to $75.12 a barrel, and the Dutch TTF natural gas increased by €1.38 to €40.35 per MWh.

Europe Stock Movers

Natural resource stocks were in focus after energy prices rebounded by about 1.5% following calls from Saudi Arabia and Russia to cut oil production.

BP Plc rose 1.4% to 466.80 pence, Shell PLC added 1% to €29.65, Repsol added 0.5% to €13.88, and TotalEnergies gained 1% to €61.31.

Anglo American dropped 7.2% to 2,065.50 pence after the company announced a plan to lower its production in a bid to cut costs.

The company said it has reduced its operating costs by $0.5 billion in 2023 and identified additional $0.5 billion in cost savings in 2024.

Moreover, the company plans to reduce its capex by $0.2 billion to $5.8 billion.

The diversified mining company said it will reduce its production at its iron ore mine in Kumba, South Africa, focus on higher margin production of platinum group metals, and continue production at only one plant at the Los Bronces copper operation in Chile.

Monk Investment Trust PLC gained 0.8% to 1,014.39 pence after the company reported a narrower loss in the first half of the fiscal year.

Berkeley Group Holdings decreased 1.8% to 4,848.0 pence after the home builder cautioned about challenging market conditions.

Vivendi Group advanced 2.4% to €8.88 after the media group was set to be included in the CAC 40 index on December 18, replacing Worldline.

Worldline added 0.7% to €15.87.

Movers: CONCOR, IRB Infra, NTPC, Olectra Greentech, REC, Sugar Stocks, Zomato

Arun Goswami
08 Dec, 2023
Mumbai

Two popular benchmark indexes are set to close higher for the sixth week in a row, with a weekly gain of about 1.9%.

In a widely anticipated decision, the Reserve Bank of India held its key lending rates, lifted its view on economic growth, but left its inflation forecast intact for the fiscal year 2024, citing multiple food price shocks.

The Sensex index increased 164.08 points to 69,685.77, and the Nifty index rose 55.60 points to 20,956.75.

On the Mumbai stock exchange, 200 stocks traded at their 52-week highs and 12 stocks traded at their 52-week lows.

The yield on the 10-year Indian government bonds held firm at 7.24%, and the Indian rupee hovered near ₹83.34 against the U.S. dollar.

Container Corporation of India added 0.5% to ₹846.75 after the company signed an agreement with NTPC Vidyut Vyapar Nigam for setting up solar power projects at CONCOR terminals.

NTPC jumped 1.9% to ₹289.25.

REC jumped 2.2% to ₹403.50 on reports that the company is looking to raise as much as ₹6,000 crore through two bond offerings.

Zomato Ltd. gained 1.4% to ₹122.15 on a report that Japan-based Softbank is looking to sell a 1.1% stake in the delivery service company.

Olectra Greentech advanced 2.2% to ₹1,255.10 after the company signed a contract to deliver 40 electric buses.

Spicejet declined 1.3% to ₹51.68 on a report that the company is looking to raise additional capital, including a stock offering.

Sugar stocks declined after the government barred companies from making ethanol using sugarcane juice but permitted the use of molasses.

The sugarcane crop is down this year after uneven monsoon rains, and the government issued the directive as sugar supply is barely expected to meet the annual demand of 28 million tons.

About 25% of sugarcane juice production is used to make ethanol, and sugar production in the first two months of this crop cycle ending in November declined by 10.5%.

Shree Renuka fell 5.7% to ₹45.15, Bajaj Hindusthan declined 6.8% to ₹27.15, Balarampur Chini Mills dropped 2.7% to ₹397.80, and Dalmia Bharat Sugar and Industries decreased 1.2% to ₹403.65.

Power sector stocks surged after the rate decision by the Reserve Bank of India.

IREDA soared 12% to ₹72.10, REC added 2.2% to ₹405.0, Power Finance Corporation advanced 1.8% to ₹383.90, Power Grid jumped 0.3% to ₹230.85, but Torrent Power declined 3.3% to ₹968.70.

IRB Infrastructure Developers jumped 3.6% to ₹39.85 after the company said toll revenue soared 20% from a year ago to ₹437 crore in November.

Nifty and Sensex Extend Weekly Gains to 2%, RBI Holds Rates Steady

Arjun Pandit
08 Dec, 2023
Mumbai

Stocks in Mumbai traded higher after the central bank left its key lending rate unchanged and revised its economic growth forecast.

Two popular benchmark indexes added more than 0.3%, and the Reserve Bank of India is widely expected to hold rates steady for the third time in a row.

The Reserve Bank of India left its repo rate, the reference rate used for loan products, at 6.5%.

The central bank also revised its economic growth estimate for the fiscal year to 7.0% from the previous estimate of 6.5%, citing strong domestic economic fundamentals but cautioning against elevated inflation.

The Reserve Bank of India held its consumer price inflation forecast at 5.4% but cautioned that core inflation is still high and inflationary forces are still stronger than preferred by the central bank.

Crude oil edged slightly higher, but the commodity is set to close down 5% in the week on rising global supplies.

In overnight trading, U.S. market indexes advanced after tech stocks rebounded following Google's release of its most advanced generative artificial intelligence product, Gemini.

The yield on U.S. 10-year Treasury notes dropped below 4.20% and eased to a low last seen in September.

Closer to home, the yield on a 5-year Indian government bond held firm at 7.24% ahead of the RBI's rate decision.

In other news in Asia, Japan's economy contracted at a 2.9% annual pace in the third quarter compared to the preliminary estimate of 2.1%, following the downwardly revised growth of 3.6% in the second quarter, the Cabinet Office reported Friday.

The annual pace of decline was the first in a year and the largest fall since the peak of the pandemic in the second quarter of 2020.

India Indexes and Yields

Two popular benchmark indexes are set to close higher for the sixth week in a row with a weekly gain of about 1.9%.

The Sensex index increased 164.08 points to 69,685.77, and the Nifty index rose 55.60 points to 20,956.75.

On the Mumbai stock exchange, 200 stocks traded at their 52-week highs and 12 stocks traded at their 52-week lows.

The yield on the 10-year Indian government bonds held firm at 7.24%, and the Indian rupee hovered near ₹83.34 against the U.S. dollar.

The gold price increased by 0.06% to ₹62,506 per ten grams, and silver rose by 0.4% to ₹74,600 per kilo.

Crude oil increased by 1.4% to ₹5,885 per barrel, and natural gas fell by 0.7% to ₹216.30 per thermal unit.

India Stock Movers

Container Corporation of India added 0.5% to ₹846.75 after the company signed an agreement with NTPC Vidyut Vyapar Nigam for setting up solar power projects at CONCOR terminals.

NTPC jumped 1.9% to ₹289.25.

REC jumped 2.2% to ₹403.50 on reports that the company is looking to raise as much as ₹6,000 crore through two bond offerings.

Zomato Ltd. gained 1.4% to ₹122.15 on a report that Japan-based Softbank is looking to sell a 1.1% stake in the delivery service company.

Olectra Greentech advanced 2.2% to ₹1,255.10 after the company signed a contract to deliver 40 electric buses.

Spicejet declined 1.3% to ₹51.68 on a report that the company is looking to raise additional capital, including a stock offering.

Sugar stocks declined after the government barred companies from making ethanol using sugarcane juice but permitted the use of molasses.

The sugarcane crop is down this year after uneven monsoon rains, and the government issued the directive as sugar supply is barely expected to meet the annual demand of 28 million tons.

About 25% of sugarcane juice production is used to make ethanol, and sugar production in the first two months of this crop cycle ending in November declined by 10.5%.

Nasdaq and S&P 500 Halt 3-day Losing Streak, Continuing Jobless Claims Sank

Barry Adams
07 Dec, 2023
New York City

U.S. benchmark indexes snapped a three-day losing streak after high-growth stocks rebounded.

The S&P 500 index and the Nasdaq Composite advanced and tech stocks led the gainers after Google parent Alphabet released its product using generative artificial intelligence.

Market advance resumed after three days of decline as buyers returned to snap up high-growth and interest rate-sensitive stocks.

Market indexes have rallied in the past five weeks in a row after the Federal Reserve held interest rates and three inflation indicators suggested cooling trends.

The number of initial jobless claims rose by 1,000 to 220,000 in the week ending December 2, the U.S. Department of Labor reported Thursday.

Continuing claims decreased by 64,000 to 1.861 million in the previous week, indicating improving conditions for the unemployed looking for jobs.

Moreover, the latest job openings report also showed employers are trimming new job announcements, and private employers added fewer than expected new jobs in November, suggesting that the labor market is cooling.

Investors are looking ahead to the release of the November nonfarm employment report on Friday, and economists surveyed by Ticker.com are estimating that the economy added about 175,000 net new jobs.

Treasury yields continued to decline and eased to the levels last seen in early September, and the yield on 10-year Treasury notes dropped below 4.20%.

U.S. Indexes and Yields

The S&P 500 index gained 0.7% to 4,581.86, and the Nasdaq Composite increased 1.3% to 14,322.25.

The yield on 2-year Treasury notes increased to 4.63%, 10-year Treasury notes inched higher to 4.15%, and 30-year Treasury bonds increased to 4.26%.

Crude oil decreased $0.08 to $69.29 a barrel, and natural gas prices rose 0.1 cents to $2.57 a thermal unit.

Gold increased $3.43 to $2,021.42 an ounce on shifting investors' expectations that the Federal Reserve is more likely to cut rates sooner than expected in 2024.

The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 103.98.

U.S. Stock Movers

Alphabet soared 6.4% to $138.42 after the parent company of Google released its latest artificial intelligence model, Gemini, in a bid to compete with other generative AI products released by Microsoft, OpenAI, and Meta.

Chewy declined 10.8% to $17.25 after the online pet food and products store reported weaker-than-expected revenue and the company swung to a loss in the quarter.

ChargePoint Holdings fell 3.9% to $1.97 after the electric vehicle infrastructure company reported weaker-than-expected revenue of $110 million in the third quarter.

Dollar General Corp. increased 2.8% to $137.70 after the deep discount retailer reported better-than-expected quarterly results and reaffirmed its fiscal year outlook for earnings and comparable sales.

GameStop Corp. decreased 8.8% to $13.54 after the specialty retailer reported a slight decline in quarterly sales from a year ago.

European Markets Rested, Bond Yields, Bond Yields Eased to 7-month Lows

European markets took a breather after surging in the previous two sessions, and bond yields headed lower.

The DAX index edged down after closing at a record high in the previous session, and the CAC-40 index and the FTSE 100 index declined.

Bond yields dropped to the level last seen in early May as traders supported the view that the European Central Bank is likely to lead other major banks in cutting interest rates in 2024 as early as the first quarter.

German Industrial Output Fell Fifth Consecutive Month

Investors were on the backfoot after Germany's industrial output unexpectedly declined 3.5% from a year ago and 0.4% from the previous month in October.

Industrial output fell for the fifth month in a row, both on an annual and monthly basis, indicating growing economic uncertainties and the negative impact of higher interest rates.

The increase in automobile production failed to offset the weakness in mechanical engineering, the Federal Statistics Office, or Destatis, reported Thursday.

Italy's Industrial Production Remains Under Pressure

Italy's industrial production decreased 0.2% from the previous month and fell 1.1% from the previous year in October, the National Institute of Statistics of ISTAT reported Thursday.

With the lagged effect of the multiple interest rate hikes, industrial activities remained under pressure for the fourth month in a row.

The increase in consumer goods and energy goods production was offset by the decline in capital goods and intermediate goods output.

UK House Price Decline Slowed In November.

The Halifax House Price Index decreased 1.0% from a year ago in November, following a revised 3.1% decline in October, Halifax and the Bank of Scotland reported Thursday.

Home prices rose 0.5% from the previous month, marking the second monthly price increase following the shortage of available homes.

Home prices are expected to decline in the months ahead because of economic uncertainties, elevated interest rates, a lack of affordability, and a higher cost of living.

Home prices in London were not immune from price declines and fell 3.8% from a year ago, after buyers stayed away because of a lack of affordability.

Home prices declined 5.7% in the South East and fell 1.5% in Wales, but prices in Northern Ireland rose 2.3% and were unchanged in Scotland.

Europe Indexes and Yields

The DAX index decreased 0.2% to 16,628.99, the CAC-40 index fell 0.1% to 7,428.52, and the FTSE 100 index fell 0.02% to 7,513.72.

The yield on 10-year German bonds decreased to 2.20%; French bonds traded lower to 2.74%; the UK gilts declined to 3.98%; and Italian bonds inched lower to 3.95%.

The euro traded lower to $1.077, the British pound inched lower to $1.257, and the U.S. dollar eased to 87.42 Swiss cents.

Brent crude increased $0.06 to $74.05 a barrel, and the Dutch TTF natural gas increased by €0.90 to €40.21 per MWh.

Europe Stock Movers

Games Workshop Group dropped 8% to 9,750.0 pence after the company reported weaker-than-expected interim results.

Airlines in Europe were under pressure after JP Morgan lowered its view on the sector, citing rising capacity. The investment bank said discount carriers are likely to do better than large-network airlines in 2024, citing profitability worries for the international carriers.

Lufthansa declined 4.5% to €8.20 after JP Morgan lowered its view on the German airline to "underweight" from "overweight" and lowered its target price to €7.0.

Air France KLM dropped 5.7% to €11.94 after JP Morgan lowered its view on the international carrier to "underweight" from "overweight."

International Consolidated Airlines Group, parent of British Airways and Iberian Air, fell 3.5% to 156.15 pence after JP Morgan lowered its view to "neutral" from "underweight."

Sanofi SA advanced 0.3% to €87.05 after the French drug maker said it has a dozen drug candidates in the development stage with an annual sales potential of more than €1 billion.

U.S. Movers: ChargePoint Holdings, Chewy, Dollar General, GameStop

Scott Peters
07 Dec, 2023
New York City

Chewy declined 10.8% to $17.25 after the online pet food and products store reported weaker-than-expected revenue and the company swung to a loss in the quarter.

Revenue in the fiscal third quarter ending in October rose 8.2% to $2.73 billion from $2.53 billion, and the company swung to a net loss of $35.8 million from a profit of $2.3 million, and diluted earnings per share swung to a loss of 8 cents from a profit of 1 cent a year ago.

Gross margin expanded 10 basis points from a year ago to a record high of 28.5%, and autoship customer sales increased 12.8% to $2.1 billion, representing 76.4% of total sales.

ChargePoint Holdings fell 3.9% to $1.97 after the electric vehicle infrastructure company reported weaker-than-expected revenue of $110 million in the third quarter.

Revenue in the fiscal third quarter ending in October declined 12% to $110.3 million from $125.3 million, net loss expanded to $158.2 million from $84.5 million, and diluted loss per share increased to 43 cents from 25 cents a year ago.

The company attributed the revenue shortfall to the challenging macroeconomic conditions.

The charging infrastructure company raised $233.1 million through a stock offering in the third quarter and bolstered its balance sheet.

Dollar General Corp. increased 2.8% to $137.70 after the deep discount retailer reported better-than-expected quarterly results and reaffirmed its fiscal year outlook for earnings and comparable sales.

Revenue in the fiscal third quarter ending on November 3 increased 2.4% to $9.7 billion, and same-store sales declined 1.3%.

Net income in the third quarter dropped 47.5% to $276.2 million from $526.2 million, and diluted earnings per share decreased 45.9% to $1.26 from $2.33 a year ago.

As of November 3, 2023, total merchandise inventories, at cost, were $7.4 billion compared to $7.1 billion as of October 28, 2022, a decrease of 1.8% on a per-store basis.

The company did not repurchase any of its shares in the quarter, and $1.4 billion is available for future purchases at the end of the fiscal third quarter.

The company's board of directors declared a quarterly cash dividend of 59 cents payable on January 23 to shareholders on record on January 9.

The company forecasted fiscal year 2023 same store sales to range between flat and a decline of 1.0%, and net sales growth between 1.5% and 2.5%, including one fewer week this fiscal year.

The retailer estimated diluted earnings per share to decline between 29% and 34% and range between $7.10 and $7.60.

GameStop Corp. decreased 8.8% to $13.54 after the specialty retailer reported a slight decline in quarterly sales from a year ago.

Revenue in the fiscal third quarter ending in October declined to $1.078 from $1.186 billion, net loss shrank to $3.1 million from $94.7 million, and diluted loss per share fell to 1 cent from 31 cents a year ago.

U.S. Market Indexes and Treasury Yields Retain Downward Bias

Barry Adams
07 Dec, 2023
New York City

U.S. stocks traded lower and extended the recent downturn after rallying in five previous weeks.

The S&P 500 index and the Nasdaq Composite lacked direction as investors stayed on the sidelines and awaited additional employment reports.

Market indexes have rallied for five weeks in a row after the Federal Reserve held interest rates and three inflation indicators suggested cooling trends.

Moreover, the latest job openings report also showed employers are trimming new job announcements, and private employers added fewer than expected new jobs in November, suggesting that the labor market is cooling.

Investors are looking ahead to the release of the November nonfarm employment report on Friday, and economists surveyed by Ticker.com are estimating that the economy added about 175,000 net new jobs.

Treasury yields continued to decline and eased to the levels last seen in early September, and the yield on 10-year Treasury notes dropped below 4.20%.

U.S. Indexes and Yields

The S&P 500 index gained 0.1% to 4,571.39, and the Nasdaq Composite increased 0.3% to 14,249.41.

The yield on 2-year Treasury notes increased to 4.63%, 10-year Treasury notes inched higher to 4.15%, and 30-year Treasury bonds increased to 4.26%.

Crude oil increased $0.40 to $69.79 a barrel, and natural gas prices fell 7 cents to $2.48 a thermal unit.

Gold increased $7.17 to $2,032.05 an ounce on shifting investors' expectations that the Federal Reserve is more likely to cut rates sooner than expected in 2024.

The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 103.98.

U.S. Stock Movers

Chewy declined 10.8% to $17.25 after the online pet food and products store reported weaker-than-expected revenue and the loss expanded in the quarter.

ChargePoint Holdings fell 3.9% to $1.97 after the electric vehicle infrastructure company reported weaker-than-expected revenue of $110 million in the third quarter.

Dollar General Corp. increased 2.8% to $137.70 after the deep discount retailer reported better-than-expected quarterly results and reaffirmed its fiscal year outlook for earnings and comparable sales.

GameStop Corp. decreased 8.8% to $13.54 after the specialty retailer reported a slight decline in quarterly sales from a year ago.

Europe Movers: Air France KLM, Games Workshop, IAG, Lufthansa, Sanofi

Inga Muller
07 Dec, 2023
Frankfurt

European markets indexes hovered near recent highs and bond yields dropped to the levels last seen in May.

The DAX index decreased 0.3% to 16,613.29, the CAC-40 index fell 0.2% to 7,421.02, and the FTSE 100 index fell 0.3% to 7,496.21.

The yield on 10-year German bonds decreased to 2.20%; French bonds traded lower to 2.74%; the UK gilts declined to 3.98%; and Italian bonds inched lower to 3.95%.

Games Workshop Group dropped 8% to 9,750.0 pence after the company reported weaker-than-expected interim results.

Airlines in Europe were under pressure after JP Morgan lowered its view on the sector, citing rising capacity. The investment bank said discount carriers are likely to do better than large-network airlines in 2024, citing profitability worries for the international carriers.

Lufthansa declined 4.5% to €8.20 after JP Morgan lowered its view on the German airline to "underweight" from "overweight" and lowered its target price to €7.0.

Air France KLM dropped 5.7% to €11.94 after JP Morgan lowered its view on the international carrier to "underweight" from "overweight."

International Consolidated Airlines Group, parent of British Airways and Iberian Air, fell 3.5% to 156.15 pence after JP Morgan lowered its view to "neutral" from "underweight."

Sanofi SA advanced 0.3% to €87.05 after the French drug maker said it has a dozen drug candidates in the development stage with an annual sales potential of more than €1 billion.

European Market Indexes Hover Near Recent Highs, German Industrial Output Extends Weakness

Bridgette Randall
07 Dec, 2023
Frankfurt

European markets took a breather after surging in the previous two sessions, and bond yields headed lower.

The DAX index edged down after closing at a record high in the previous session, and the CAC-40 index and the FTSE 100 index declined.

Bond yields dropped to the level last seen in early May as traders supported the view that the European Central Bank is likely to lead other major banks in cutting interest rates in 2024 as early as the first quarter.

German Industrial Output Fell Fifth Consecutive Month

Investors were on the backfoot after Germany's industrial output unexpectedly declined 3.5% from a year ago and 0.4% from the previous month in October.

Industrial output fell for the fifth month in a row, both on an annual and monthly basis, indicating growing economic uncertainties and the negative impact of higher interest rates.

The increase in automobile production failed to offset the weakness in mechanical engineering, the Federal Statistics Office, or Destatis, reported Thursday.

Italy's Industrial Production Remains Under Pressure

Italy's industrial production decreased 0.2% from the previous month and fell 1.1% from the previous year in October, the National Institute of Statistics of ISTAT reported Thursday.

With the lagged effect of the multiple interest rate hikes, industrial activities remained under pressure for the fourth month in a row.

The increase in consumer goods and energy goods production was offset by the decline in capital goods and intermediate goods output.

UK House Price Decline Slowed In November.

The Halifax House Price Index decreased 1.0% from a year ago in November, following a revised 3.1% decline in October, Halifax and the Bank of Scotland reported Thursday.

Home prices rose 0.5% from the previous month, marking the second monthly price increase following the shortage of available homes.

Home prices are expected to decline in the months ahead because of economic uncertainties, elevated interest rates, a lack of affordability, and a higher cost of living.

Home prices in London were not immune from price declines and fell 3.8% from a year ago, after buyers stayed away because of a lack of affordability.

Home prices declined 5.7% in the South East and fell 1.5% in Wales, but prices in Northern Ireland rose 2.3% and were unchanged in Scotland.

Europe Indexes and Yields

The DAX index decreased 0.3% to 16,613.29, the CAC-40 index fell 0.2% to 7,421.02, and the FTSE 100 index fell 0.3% to 7,496.21.

The yield on 10-year German bonds decreased to 2.20%; French bonds traded lower to 2.74%; the UK gilts declined to 3.98%; and Italian bonds inched lower to 3.95%.

The euro traded lower to $1.077, the British pound inched lower to $1.257, and the U.S. dollar eased to 87.42 Swiss cents.

Brent crude increased $0.66 to $74.93 a barrel, and the Dutch TTF natural gas increased by €1.39 to €40.71 per MWh.

Europe Stock Movers

Games Workshop Group dropped 8% to 9,750.0 pence after the company reported weaker-than-expected interim results.

Airlines in Europe were under pressure after JP Morgan lowered its view on the sector, citing rising capacity. The investment bank said discount carriers are likely to do better than large-network airlines in 2024, citing profitability worries for the international carriers.

Lufthansa declined 4.5% to €8.20 after JP Morgan lowered its view on the German airline to "underweight" from "overweight" and lowered its target price to €7.0.

Air France KLM dropped 5.7% to €11.94 after JP Morgan lowered its view on the international carrier to "underweight" from "overweight."

International Consolidated Airlines Group, parent of British Airways and Iberian Air, fell 3.5% to 156.15 pence after JP Morgan lowered its view to "neutral" from "underweight."

Sanofi SA advanced 0.3% to €87.05 after the French drug maker said it has a dozen drug candidates in the development stage with an annual sales potential of more than €1 billion.

Sensex and Nifty Indexes Trim Early Losses

Arjun Pandit
07 Dec, 2023
Mumbai

Stocks in Mumbai declined after rallying for three days in a row this week.

Benchmark indexes decreased 0.4% in trading, and investors are awaiting the interest rate decision from the Reserve Bank of India on Friday.

Investors widely believe that the central bank will hold rates steady for the third time in a row and drain liquidity in the financial system.

Market indexes were under pressure after extending gains from the previous four weeks in a row following strong economic growth, robust holiday spending, and weakness in crude oil prices in international markets.

Despite Thursday's market weakness, the Sensex and the Nifty indexes are set to advance more than 3% this week, extending the rally to the sixth consecutive week.

Crude oil edged lower to a 5-month low amid rising U.S. supplies in global markets and uncertainties about the latest production cuts announced by the OPEC+.

In overnight trading, market indexes in New York edged lower after private sector payroll growth slowed and investors turned cautious ahead of the release of nonfarm payroll data on Friday.

U.S. labor market expansion is slowing after the lagged impact of recent rate hikes, and investor sentiment has shifted in support of a soft landing, meaning simultaneous moderating of economic growth but not a recession and cooling of inflation to the Fed's target rate of 2%.

China's trade surplus expanded in November.

China's exports unexpectedly rose 0.5% to $291.9 billion in November, after falling for six months in a row, amid signs of a recovery in international demand.

Imports fell 0.6% to $223.5 billion, and the trade surplus advanced to $68.4 billion from $66.5 billion a year ago, China's General Administration of Customs reported Friday.

India Indexes and Yields

The Sensex index decreased 251.11 points to 69,402.62, and the Nifty index fell 58.65 points to 20,880.0.

On the Mumbai stock exchange, 159 stocks traded at their 52-week highs and 15 stocks traded at their 52-week lows.

The yield on the 10-year Indian government bonds edged up to 7.24%, and the Indian rupee weakened to ₹83.34 against the U.S. dollar.

The gold price increased by 0.03% to ₹62,423 per ten grams, and silver declined by 0.2% to ₹74,720 per kilo.

Crude oil increased by 0.3% to ₹5,835 per barrel, and natural gas fell by 0.3% to ₹214.40 per thermal unit.

India Stock Movers

Paytm dropped 20% to ₹650.45 after the company said it plans to slow loan approvals under ₹50,000 after the Reserve Bank of India tightened lending rules last week.

Axiscades Technologies jumped 4% to ₹584.55 after the company acquired a 100% stake in Hyderabad-based Epcogen, the provider of engineering services for petroleum and power companies.

Delta Corp. increased 2.7% to ₹142.70 after the Calcutta High Court issued an order to a unit of the company not to act on the demand by the Goods and Services Tax authorities for the collection of ₹6,834 crore.

Bharti Airtel declined 1.4% to ₹1,010.05, and Warburg Pincus is looking to sell 17.5 million, or 1.75 crore, shares in a block deal for $211 million, or about ₹1,760 crore, at a floor price of ₹1,005 per share.

IDFC First Bank declined 3.2% to ₹87.50, and a fund controlled by Warburg Pincus is looking to sell a 1.3% stake in the bank for $100 million, with a floor price of ₹85.70 per share.

Bharat Electronics increased 1.6% to ₹159.05 after the company won a ₹580 crore order for supplying artificial magnetic conductors for radars from the Indian Army.

IRCON International declined 7.8% to ₹158.60 after the central government launched an offer to sell up to an 8% stake in the company over a two-day period starting Thursday.

Adani Ports & Special Economic Zone added 2% to ₹1,037.25, and the company is in advanced talks with Shapoorji Pallonji to acquire Gopalpur Ports in Odisha for as much as ₹1,200 crore.

Kothari Petrochemicals dropped 0.8% to ₹158.95 after the company said its operations located in Manali Industrial Area, Chennai, were temporarily disrupted by Cyclone Michaung.

Movers: Adani Ports, Axiscades, Bharat Electronics, Bharti Airtel, Delta Corp, IDFC First Bank, IRCON, Paytm, Kothari Petrochemicals

Arun Goswami
07 Dec, 2023
Mumbai

Stocks in Mumbai turned lower after rallying for three days in a row this week, and investors awaited the rate decision from the Reserve Bank of India on Friday.

The Sensex index decreased 251.11 points to 69,402.62, and the Nifty index fell 58.65 points to 20,880.0.

On the Mumbai stock exchange, 159 stocks traded at their 52-week highs and 15 stocks traded at their 52-week lows.

Paytm dropped 20% to ₹650.45 after the company said it plans to slow approvals of loans under ₹50,000 after the Reserve Bank of India tightened lending rules last week.

Axiscades Technologies jumped 4% to ₹584.55 after the company acquired a 100% stake in Hyderabad-based Epcogen, the provider of engineering services for petroleum and power companies.

Delta Corp. increased 2.7% to ₹142.70 after the Calcutta High Court issued an order to a unit of the company not to act on the demand by the Goods and Services Tax authorities for the collection of ₹6,834 crore.

Bharti Airtel declined 1.4% to ₹1,010.05, and Warburg Pincus is looking to sell 17.5 million, or 1.75 crore, shares in a block deal for $211 million, or about ₹1,760 crore, at a floor price of ₹1,005 per share.

IDFC First Bank declined 3.2% to ₹87.50, and a fund controlled by Warburg Pincus is looking to sell a 1.3% stake in the bank for $100 million, with a floor price of ₹85.70 per share.

Bharat Electronics increased 1.6% to ₹159.05 after the company won a ₹580 crore order for supplying artificial magnetic conductors for radars from the Indian Army.

IRCON International declined 7.8% to ₹158.60 after the central government launched an offer to sell up to an 8% stake in the company over a two-day period starting Thursday.

Adani Ports & Special Economic Zone added 2% to ₹1,037.25, and the company is in advanced talks with Shapoorji Pallonji to acquire Gopalpur Ports in Odisha for as much as ₹1,200 crore.

Kothari Petrochemicals dropped 0.8% to ₹158.95 after the company said its operations located in Manali Industrial Area, Chennai, were temporarily disrupted by Cyclone Michaung.

Investors Look Ahead to Nonfarm Payrolls Report, Crude Oil Prices Dropped to 5-month Low

Barry Adams
06 Dec, 2023
New York City

Stocks lacked direction in early trading, and investors reviewed the latest update on the labor market, indicating falling inflation.

Private payrolls rose less than expected in November, confirming the cooling trend, and investors are looking forward to the release of nonfarm payrolls, jobless rates, wages, and jobless claims updates later in the week.

Private payrolls rose 103,000 in November, below the downwardly revised 106,000 increase in October, the ADP reported Wednesday.

The ADP employment series focuses on private employment, and the volatile monthly update is subject to several revisions.

The latest job data raised hopes that policymakers are more likely to engineer a soft landing and simultaneously cool inflation to the target rate of 2% and slow economic growth while avoiding a recession.

Economists surveyed by Ticker.com are anticipating nonfarm payrolls to increase by 175,000 in November, faster than the 150,000 increase in September.

The Federal Reserve has increased rates 11 times between March 2022 and June 2023, and the lagged effect of higher rates is visible in the slowing hiring trend in the labor market.

Job openings dropped to a 30-month low in October as employers trimmed new job announcements.

Job openings fell sharply in October after employers across the nation in several industries curtailed announcements for new hires.

The number of job openings declined by 617,000 to 8.7 million, the U.S. Bureau of Labor Statistics reported Tuesday.

Despite the recent market doldrums, market indexes are set to close higher in the quarter and year following a strong rally over five consecutive weeks.

U.S. Trade Deficit Expands Slightly In October

The U.S. goods and services deficit rose in October from the previous month after exports edged lower and imports edged up slightly, the Bureau of Economic Analysis reported Wednesday.

Exports declined 1% to $258.8 billion, and imports rose 0.2% to $323.0 billion, resulting in an increase of 5.1% in the deficit to $64.3 billion.

The decline in exports was driven by the weakness in sales of diamonds and jewelry, pharmaceutical preparations, passenger vehicles, buses and accessories, and travel.

Meanwhile, sales rose for organic chemicals, financial services, and transport services.

Imports were driven by the increase in computers, drilling and oil field equipment services, and travel services, offset by a slight decline in passenger cars.

In the month, the goods deficit increased by $3.5 billion to $89.8 billion, and the services surplus rose by $0.4 billion to $25.5 billion.

The trade deficit in goods with China, not adjusted for seasonal factors, edged slightly lower to $25.5 billion in October from $28.5 billion in September and reached $235.7 billion in the year so far.

U.S. Indexes and Yields

The S&P 500 index gained 0.1% to 4,571.39, and the Nasdaq Composite increased 0.3% to 14,249.41.

The yield on 2-year Treasury notes decreased to 4.60%, 10-year Treasury notes inched lower to 4.14%, and 30-year Treasury bonds decreased to 4.25%.

Crude oil decreased $2.71 to $69.59 a barrel, and natural gas prices fell 5 cents to $2.65 a thermal unit.

Gold increased $6.50 to $2,026.25 an ounce as investor expectations shifted. The Federal Reserve is more likely to cut rates sooner than expected in 2024.

The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 104.10.

U.S. Stock Movers

Toll Brothers increased 2% to $89.0 after the luxury home builder reported better-than-expected quarterly results.

Revenue in the fiscal fourth quarter ending in October declined to $3.02 billion from $3.7 billion, net income decreased to $445.5 million from $640.5 million, and diluted earnings per share dropped to $4.11 from $5.63 a year ago.

The backlog of homes at the end of October declined 19% to 6,578 and the value of the backlog fell 22% to $6.95 billion.

During the quarter, the company repurchased approximately 4.3 million shares at an average price of $75.70 per share, for a total of $325.5 million.

In the fiscal year, the home builder repurchased approximately 7.9 million shares at an average price of $72 per share, for a total purchase price of $565.9 million.

The home developer estimated home deliveries in the fiscal 2024 first quarter to range between 1,800 and 1,900 units and the average delivery price per unit to range between $985,000 and $1.05 million.

MongoDB decreased by 5% to $412.0 after the database developer reported quarterly results.

Total revenue in the third quarter increased 30% from a year ago to $432.9 million, and subscription revenue advanced 30% to $418.3 million.

Net loss in the quarter shrank to $29 million from $84 million, and diluted loss per share decreased to 41 cents from $1.23 a year ago.

The company guided fiscal fourth quarter revenue to range between $429 million and $433 million, adjusted earnings between $35 million and $38 million, and adjusted earnings per share between 44 cents and 46 cents.

Box Inc. fell 12.2% to $23.41 after the cloud-based content management software developer reported a muted increase in quarterly revenues and earnings.

Revenue in the fiscal third quarter increased 5% to $261.5 million from $249.9 million, net income increased to $5.64 million from $4.98 million, and diluted earnings per share rose to 4 cents from 3 cents a year ago.

The company estimated fiscal year 2024 revenue between $1.037 billion and $1.039 billion, an increase of 5% at the top of the range, and net income between 15 cents and 16 cents, including an unfavorable exchange rate impact of 17 cents.

European Markets Advanced, New Record High In DAX Index

European markets advanced and extended the previous week's gain, and bond yields dropped to six-month lows.

Benchmark indexes in Frankfurt, Paris, and London extended solid gains from the previous session after market sentiment shifted in favor of rate cuts.

German bond yields dropped below 2.3%, and Italian bonds hovered at 4% on expectations that the European Central Bank is likely to pivot from rate hikes to rate cuts earlier than expected.

Last month, the European Central Bank president Christine Lagarde lowered rate-cut expectations and said talks of rate cuts are "premature."

Despite the central bank's warning, investors held on to the belief that rates are likely to begin to decline in the second quarter of 2024, following the steady decline in energy prices over the last six months.

Europe Indexes and Yields

The DAX index increased 0.9% to 16,678.94, the CAC-40 index rose 0.8% to 7,444.17, and the FTSE 100 index advanced 0.5% to 7,528.21.

The yield on 10-year German bonds decreased to 2.25%; French bonds traded lower to 2.81%; the UK gilts declined to 4.05%; and Italian bonds inched lower to 4.00%.

The euro traded lower to $1.079, the British pound inched lower to $1.259, and the U.S. dollar eased to 87.52 Swiss cents.

Brent crude decreased $2.74 to $74.43 a barrel, and the Dutch TTF natural gas increased by €1.46 to €39.58 per MWh.

Europe Stock Movers

TUI AG soared 10.5% to €6.57 after the tour operator reported operating profit that more than doubled in 2023.

Operating profit in the fiscal year 2023 ending in September surged 139% to €977 million from €568 million a year ago.

Revenue in the fourth quarter increased 11% to €8.5 billion, and operating profit jumped by €164 million to €1.203 billion.

For the full year 2023, the company swung to a profit of €306 million from a loss of €277 million a year ago.

The tour operator also lowered its debt to €1.3 billion from €3.4 billion, following strong operating cash flow and a successful €1.8 billion rights offering in April.

The tour operator forecasted revenue in fiscal 2024 to increase by "at least 10%" and underlying operating profit by "at least 25%."

British American Tobacco dropped 7.8% to 2,291.50 pence after the company reiterated its full-year 2023 earnings per share outlook.

The maker of cigarette and smokeless tobacco products generates strong cash flow, and the company said it is making progress in lowering its debt.

"BAT is a highly cash-generative business, and we expect to deliver close to 100% operating cash flow conversion in 2023.

We are making progress towards reaching the middle of our guided 2-3x adjusted net debt/adjusted EBITDA leverage range and expect to be around 2.7x by year end," said the company in an update to investors.

The company said it plans to generate more than 50% of its revenue from non-combustibles by 2035.

Mining companies were among the leading gainers after metal prices advanced in London trading.

Glencore increased 1.8% to 446.20 pence, Antofagasta gained 1.5% to 1,439.50 pence, and Anglo American advanced 2.1% to 2,199.50 pence.

U.S. Trade Deficit Expands Slightly In October

Brian Turner
06 Dec, 2023
New York City

The U.S. goods and services deficit rose in October from the previous month after exports edged lower and imports edged up slightly, the Bureau of Economic Analysis reported Wednesday.

Exports declined 1% to $258.8 billion, and imports rose 0.2% to $323.0 billion, resulting in an increase of 5.1% in the deficit to $64.3 billion.

The decline in exports was driven by the weakness in sales of diamonds and jewelry, pharmaceutical preparations, passenger vehicles, buses and accessories, and travel.

Meanwhile, sales rose for organic chemicals, financial services, and transport services.

Imports were driven by the increase in computers, drilling and oil field equipment services, and travel services, offset by a slight decline in passenger cars.

In the month, the goods deficit increased by $3.5 billion to $89.8 billion, and the services surplus rose by $0.4 billion to $25.5 billion.

The trade deficit in goods with China, not adjusted for seasonal factors, edged slightly lower to $25.5 billion in October from $28.5 billion in September and reached $235.7 billion in the year so far.

U.S. Stocks Lacked Direction with Focus on Labor Market

Barry Adams
06 Dec, 2023
New York City

Stocks lacked direction in early trading, and investors reviewed the latest update on the labor market.