Market Update
U.S. and European Markets Jump 1% After Inflation Worries Eased
Barry Adams
12 Mar, 2024
New York City
Popular technology and semiconductor stocks started to rise again as investors looked over the most recent report on inflation.
The stock rally continued in Tuesday's trading after struggling in the previous two sessions in a row after the overall inflation in February met investors' expectations.
The S&P 500 index advanced 0.5%, and the Nasdaq Composite gained 0.8%.
Last week's healthy labor market reports has supported positive market sentiment, and the easing of inflation has reaffirmed the US. economy's resilience.
Later in the week investors are looking forward to the release of the producer price inflation report and the Federal Reserve's policy meeting outcome at the end of a two-day meeting on March 19.
U.S. Consumer Inflation Unexpectedly Edge Higher
Consumer price inflation in February unexpectedly increased to 3.2% from 3.1% in the previous month, the U.S. Bureau of Labor Statistics reported Tuesday.
The rising cost of shelter and gasoline contributed about 60% of overall inflation as rents continued to rise across the nation.
On a monthly basis, inflation held steady at 0.4% and matched the rate in January.
Core inflation, which excludes food and energy prices, rose at a slower annual pace of 3.8%, compared to 3.9% in January.
Prices of food, shelter, new vehicles, and medical care continued to rise, but at a slower pace in the month.
Food price inflation slowed to 2.2% from 2.6%, housing costs eased to 5.7% from 6.0%, new vehicle prices rose 0.4% from 0.6%, and medical care inflation eased to 2.9% from 3.0%.
However, transportation costs accelerated to 9.9%, compared to 9.5% in the previous month.
U.S. Indexes and Yields
The S&P 500 index increased 0.5% to 5,146.28, and the Nasdaq Composite advanced 0.8% to 16,153.36.
The yield on 2-year Treasury notes increased to 4.53%, 10-year Treasury notes inched up to 4.09%, and 30-year Treasury bonds edged down to 4.26%.
WTI crude oil increased $0.23 to $78.18 a barrel, and natural gas prices decreased 5 cents to $1.70 a thermal unit.
Gold decreased by $20.87 to $2,161.63 an ounce, and silver fell 21 cents to $24.15.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 102.94.
U.S. Stock Movers
Oracle Corp. increased 11.5% to $127.26 after the database and cloud computing company reported better-than-expected quarterly earnings.
Kohl's Corp. declined 2.5% to $26.50 after the department store chain operator reported better-than-expected quarterly results but issued a weak outlook.
On Holding plunged 14.5% to $28.75 after the Swiss shoemaker reported weaker-than-expected revenue of CHF 447.0 million and net income swung to a loss of 5 Swiss cents per share.
Southwest Airlines declined 8.5% to $30.93 after the regional airline said it plans to reduce its capacity and reevaluate its financial projections for 2024 in light of persistent aircraft deliveries from its sole supplier, Boeing.
The airline also said leisure revenue in the first quarter was lighter than expected and estimated unit revenue to range from a flat to a 2% increase from a year ago, but lower than an increase of as much as 4.5%.
New Record Highs In Paris and Frankfurt
European markets hovered near record highs amid interest rate uncertainties and mixed economic data in recent days.
In early morning, benchmark indexes in Frankfurt, Paris, and London traded around the flatline as investors debated future rate paths, the global economic backdrop, and the ongoing weakness in consumer spending in the eurozone.
However, market indexes in Paris and Frankfurt traded at new highs after the U.S. inflation met investors' expectations, supporting the case for the Federal Reserve to lower rates as early as June.
UK Wage Growth Slowed, Unemployment Rate Expanded
On the economic front, UK wage growth in the three months to January rose at the slowest pace since October 2022, the Office for National Statistics reported Tuesday.
Regular weekly pay, excluding bonuses, rose 6.1% to £627 per week, slower than the 6.2% rise in the previous three months.
Adjusted for inflation, regular pay increased 1.8%.
Total pay, including bonuses, rose at a slower pace to £672 per week, and the growth eased to 5.6% from 5.8%.
The wholesaling, retailing, hotels, and restaurants sectors saw the largest annual regular growth rate at 7.2%, followed by the manufacturing sector with a 6.8% increase and the finance and business services sector with a 6.6% rise.
The unemployment rate in the three-month period to January increased to 3.9% from 3.8% in the previous three-month period, and employment levels eased to 75%.
The number of people claiming jobless benefits in February increased by 16,800 from the previous month and 85,800 from a year ago to 1.585 million.
The number of job vacancies declined by 43,000 in the three-month period to January to 908,000, and the vacancies declined from the previous quarter but are still significantly above pre-pandemic levels.
The U.K. is battling with long-term sickness, and inactive people who are neither looking for work nor employed have increased to 21.8% of the population, or a near-record 2.7 million.
Germany's Inflation Downtrend Continued in February
Germany's inflation eased to an annual pace of 2.5%, down from 2.9% in January and 3.7% in December, the Federal Statistical Office confirmed Tuesday.
The inflation rate in the eurozone's largest economy has been cooling and dropped to the lowest rate since June 2021, when inflation stood at 2.4%.
"The price situation for energy products continues to ease. The increase in food prices has slowed markedly and is now below the overall inflation rate for the first time in more than two years," said President Ruth Brand, President of the Federal Statistical Office.
Weakening in energy prices drove the overall inflation lower, and the energy prices in February were 2.4% lower than in the same month a year ago, despite the ending of the government's energy subsidy in January.
Energy prices for households declined at a faster annual pace of 3.6% in February, despite the introduction of higher carbon prices since the beginning of 2024.
Excluding energy prices, the inflation rate was 3.1%, and excluding food and energy, the inflation rate was 3.4%.
But still, hopes ran high after inflation dropped to the level last seen in mid-2021, in hopes that the worst of the pandemic-era cost of living crisis was nearing its end.
Most of the decline in inflation is driven by the sharp fall in energy prices, and policymakers cannot take credit for the steady fall in inflation because prices are still significantly higher than pre-pandemic 2019 despite multiple interest rate hikes.
Europe Indexes and Yields
The DAX index increased by 1.2% to 17,965.11, the CAC-40 index rose by 0.8% to 8,087.48, and the FTSE 100 index inched higher by 1.0% to 7,747.81.
The yield on 10-year German bonds edged up to 2.29%; French bonds inched higher to 2.74%; the UK gilts edged lower to 3.92%; and Italian bonds inched higher to 3.60%.
The euro edged higher to $1.093, the British pound inched higher to $1.278, and the U.S. dollar held steady at 87.67 Swiss cents.
Brent crude increased $0.19 to $82.40 a barrel, and the Dutch TTF natural gas gained by €0.02 to €24.95 per MWh.
Europe Stock Movers
Energy stocks advanced following the rise in crude oil prices after tensions in the Middle East.
BP plc advanced 1.6% to 479.10 pence, and Shell PLC gained 0.8% to €29.53.
Generali increased 1.9% to €22.65 after the Italian insurance company reported a record profit in 2023.
Oracle Corp. jumped 12.7% to €117.78 after the U.S.-based database company reported better-than-expected quarterly earnings.
Hill & Smith advanced 2.4% to 1,894.0 pence after the infrastructure products and services provider reported record annual sales.
Persimmon plc declined 3.3% to 1,329.0 pence after the UK-based home builder reported slightly lower-than-expected 2023 revenue earnings.
Wacker Chemie gained 6.3% to €110.30 despite the German chemical company estimating a slight decline in 2024 revenue and earnings.
Porsche Automobil SE increased 1.3% to €47.44 after the sportscar maker lifted its dividend but lowered its 2024 profitability outlook because of the launch of new electric and hybrid vehicles.
Asian Markets Turn Cautious Ahead of U.S. Inflation Report
Benchmark indexes in Asia edged lower amid cautious trading, and investors reacted to local corporate and economic news.
Chinese lawmakers ended their weeklong parliamentary session and did not provide any substantial measures to revive the property market and stabilize financial markets.
Moreover, China's housing minister said troubled property developers should pursue bankruptcy and restructuring alternatives, sending strong signals that the government is not likely to provide any financial assistance to troubled developers.
Tokyo indexes Drop to 3-week Lows, Producer Price Inflation Rebounded
Benchmark indexes in Japan traded down to three-week lows, and the yen and Japanese bond yields rallied on the hopes of the Bank of Japan ending its ultra-loose interest rate policy next week.
Investors are closely watching the outcome of spring wage negotiations between large corporations and workers unions, and expectations are high that real wages, after adjusting for inflation, are likely to rise more than 4% for the first time in nearly two decades.
Faster wage increases are likely to provide a strong signal to policymakers that inflation is likely to stay above 2%, supporting the move to end negative interest rates.
Producer prices in Japan rose 0.6% from a year ago in February amid widespread price increases, the Bank of Japan reported Tuesday.
The measure of wholesale prices rose at the fastest pace since last October, when prices advanced 1.1%. Prices rose at a slower pace of 0.2% in December and January.
Prices of food products, beverages, metal products, machinery, fuel, and coal rose at an elevated pace.
The Nikkei 225 Stock Average declined 0.4% to 38,659.89, and the Topix index dropped 0.8% to 2,646.82.
The yen edged up 0.3% to 147.39, and the yield on the 10-year Japanese government bond inched higher to 0.77%.
Tech stocks were among the leading decliners, and Tokyo Electron, Screen Holdings, SoftBank, and Advantest declined between 2% and 3%.
Leading exporters also declined, and Panasonic, Canon, Sony, and Mitsubishi Electric fell between 0.5% and 1.5%.
Marubeni, Mitsui & Company, Itochu, and Sumitomo declined between 2% and 4%.
Stock Buybacks Lift Market Mood In Hong Kong and Shanghai
Stocks in Shanghai struggled but advanced in Hong Kong in the hopes that more companies may buy back their shares amid weak prices.
Investors are hoping that the recent wave of stock buybacks from companies is indicative of the company's confidence in their businesses, and stock prices are trading at discounts to the company's business valuations.
Moreover, these purchases contribute to stabilizing financial markets.
WuXi Apptec jumped 5% to ¥57.54 after the biotech company said it bought back 50 million yuan of its own shares in Shanghai on Monday.
AIA Group increased 1.5% to HK$63.15 after the company said it acquired its stock for HK$12.7 million.
Xiaomi jumped 9.5% to $14.68 after the smartphone maker launched its electric vehicle, making an entry in a crowded market suffering from oversupply and intense price competition.
China Vanke rose 3.5% to $5.91 on the hopes that the government will provide financial support to the state-controlled home developer.
Separately, Moody's Investor Services downgraded the home developer's debt to junk level, citing a rising liquidity crunch amid a falling market and growing price pressures to sell newly developed projects.
Belatedly, Moody's Ratings replaced the company's investment grade "Baa3" rating with "Ba1," which is considered speculative and "subject to substantial risk."
The CSI 300 index edged down 0.03% to 3,588.30, and the Hang Seng index increased 1.7% to 16,870.31.
India Stocks Traded Around Record High
Stocks in Mumbai edged higher in early trading, and investors reviewed mixed global markets.
The Sensex and the Nifty indexes inched higher after struggling in the last two sessions, and the Indian government bond yields held steady as the rupee strengthened against the U.S. dollar.
Domestic and international investors stepped up investing in Indian stocks after investors searched for bargains.
Gold and silver prices continued to move higher, tracking gains in international markets, on the growing consensus that the U.S. Federal Reserve and the European Central Bank are laying the groundwork to cut interest rates starting as early as June.
Lower interest rates weaken the U.S. dollar and support a higher price of precious metals.
Market sentiment on Dalal Street has been positive after the Reserve Bank of India said last week that the March fourth quarter gross domestic product is likely to surpass the government's estimate.
The central bank's estimated fiscal year 2024 economic growth is likely to cross 8%, higher than the government's estimate of 7.6%.
The Sensex index increased 0.01% to 73,516.42, and the Nifty index edged up 0.01% to 22,334.45.
On the Mumbai stock exchange, 193 stocks traded at their 52-week highs and 105 stocks traded at their 52-week lows.
ITC declined 1% to ₹409.20, and the company's parent, British American Tobacco, is looking to divest between a $2 billion and a $3 billion stake in the company as early as this week.
Mahindra & Mahindra decreased 0.5% to ₹1,888.60, and the company's February vehicle sales increased 26% to 71,384 units, and production expanded 26% to 73,380 units from 56,551 units.
U.S. Movers: Kohl's, On Holding, Oracle, Southwest Airlines
Scott Peters
12 Mar, 2024
New York City
U.S. stocks lacked direction after consumer price inflation in February unexpectedly edged higher, driven by a surge in gasoline prices and persistently elevated housing inflation.
The S&P 500 index increased 0.5% to 5,210.50, and the Nasdaq Composite advanced 0.8% to 16,022.73.
The yield on 2-year Treasury notes increased to 4.53%, 10-year Treasury notes inched up to 4.09%, and 30-year Treasury bonds edged down to 4.26%.
Oracle Corp. increased 11.5% to $127.26 after the database and cloud computing company reported better-than-expected quarterly earnings.
Revenue in the fiscal third quarter ending on February increased 7% to $13.3 billion from $12.4 billion, net income advanced 27% to $2.4 billion from $1.8 billion, and diluted earnings per share rose to 85 cents from 68 cents a year ago.
Cloud revenue increased 25% to $5.1 billion and cloud infrastructure surged 49% to $1.8 billion, respectively.
"Large new cloud infrastructure contracts signed in Q3 drove Oracle's total Remaining Performance Obligations up 29% to over $80 billion—an all-time record," said Oracle CEO, Safra Catz.
The company also signaled strong demand for its cloud computing products and indicated sustained revenue growth at least for the remainder of 2024.
"We expect to continue receiving large contracts reserving cloud infrastructure capacity because the demand for our Gen2 AI infrastructure substantially exceeds supply—despite the fact we are opening new and expanding existing cloud datacenters very, very rapidly.
We expect that 43% of our current $80 billion of Remaining Performance Obligations will be recognized as revenue over the next four quarters, added Catz.
The company also indicated that its Gen2 Cloud Infrastructure business "will remain in a hypergrowth phase for the foreseeable future" after surging 53% in the fiscal third quarter.
Kohl's Corp. declined 2.5% to $26.50 after the department store chain operator reported better-than-expected quarterly results but issued a weak outlook.
On Holding plunged 14.5% to $28.75 after the Swiss shoemaker reported weaker-than-expected revenue of CHF 447.0 million and net income swung to a loss of 5 Swiss cents per share.
Southwest Airlines declined 8.5% to $30.93 after the regional airline said it plans to reduce its capacity and reevaluate its financial projections for 2024 in light of persistent delays in aircraft deliveries from its sole supplier, Boeing.
The airline also said leisure revenue in the first quarter was lighter than expected and estimated unit revenue to range from a flat to a 2% increase from a year ago, but lower than an increase of as much as 4.5%.
U.S. Stocks Lack Direction After Inflation Unexpectedly Edge Higher
Barry Adams
12 Mar, 2024
New York City
Stocks rebounded in Tuesday's trading after struggling in the previous two sessions in a row after the overall inflation in February met investors' expectations.
The S&P 500 index advanced 0.5%, and the Nasdaq Composite gained 0.8%.
Market sentiment has remained positive after healthy labor market conditions and the easing of inflation have reaffirmed the resilience of the US. economy.
U.S. Consumer Inflation Unexpectedly Edge Higher
Consumer price inflation in February unexpectedly increased to 3.2% from 3.1% in the previous month, the U.S. Bureau of Labor Statistics reported Tuesday.
The rising cost of shelter and gasoline contributed about 60% of overall inflation as rents continued to rise across the nation.
On a monthly basis, inflation held steady at 0.4% and matched the rate in January.
Core inflation, which excludes food and energy prices, rose at a slower annual pace of 3.8%, compared to 3.9% in January.
Prices of food, shelter, new vehicles, and medical care continued to rise, but at a slower pace in the month.
Food price inflation slowed to 2.2% from 2.6%, housing costs eased to 5.7% from 6.0%, new vehicle prices rose 0.4% from 0.6%, and medical care inflation eased to 2.9% from 3.0%.
However, transportation costs accelerated to 9.9%, compared to 9.5% in the previous month.
U.S. Indexes and Yields
The S&P 500 index increased 0.5% to 5,210.50, and the Nasdaq Composite advanced 0.8% to 16,022.73.
The yield on 2-year Treasury notes increased to 4.53%, 10-year Treasury notes inched up to 4.09%, and 30-year Treasury bonds edged down to 4.26%.
WTI crude oil decreased $0.13 to $77.83 a barrel, and natural gas prices increased 5 cents to $1.81 a thermal unit.
Gold decreased by $7.22 to $2,179.44 an ounce, and silver rose 2 cents to $24.45.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 102.94.
U.S. Stock Movers
Oracle Corp. increased 11.5% to $127.26 after the database and cloud computing company reported better-than-expected quarterly earnings.
Kohl's Corp. declined 2.5% to $26.50 after the department store chain operator reported better-than-expected quarterly results but issued a weak outlook.
On Holding plunged 14.5% to $28.75 after the Swiss shoemaker reported weaker-than-expected revenue of CHF 447.0 million and net income swung to a loss of 5 Swiss cents per share.
Southwest Airlines declined 8.5% to $30.93 after the regional airline said it plans to reduce its capacity and reevaluate its financial projections for 2024 in light of persistent aircraft deliveries from its sole supplier, Boeing.
The airline also said leisure revenue in the first quarter was lighter than expected and estimated unit revenue to range from a flat to a 2% increase from a year ago, but lower than an increase of as much as 4.5%.
Europe Movers: Generali, Hill & Smith, Oracle, Persimmon, Porsche, Wacker Chemie
Inga Muller
12 Mar, 2024
Frankfurt
European stock market indexes struggled near record highs, and bond yields in the eurozone drifted lower after Germany confirmed a cooler inflation trend in February.
The DAX index increased by 0.2% to 17,786.57, the CAC-40 index fell by 0.01% to 8,018.20, and the FTSE 100 index inched higher by 0.9% to 7,742.50.
The yield on 10-year German bonds edged up to 2.29%; French bonds inched higher to 2.74%; the UK gilts edged lower to 3.92%; and Italian bonds inched higher to 3.60%.
Energy stocks advanced following the rise in crude oil prices after tensions in the Middle East.
BP plc advanced 1.6% to 479.10 pence, and Shell PLC gained 0.8% to €29.53.
Generali increased 1.9% to €22.65 after the Italian insurance company reported a record profit in 2023.
Oracle Corp. jumped 12.7% to €117.78 after the U.S.-based database company reported better-than-expected quarterly earnings.
Hill & Smith advanced 2.4% to 1,894.0 pence after the infrastructure products and services provider reported record annual sales.
Persimmon plc declined 3.3% to 1,329.0 pence after the UK-based home builder reported slightly lower-than-expected 2023 revenue earnings.
Wacker Chemie gained 6.3% to €110.30 despite the German chemical company estimating a slight decline in 2024 revenue and earnings.
Porsche Automobil SE increased 1.3% to €47.44 after the sportscar maker lifted its dividend but lowered its 2024 profitability outlook because of the launch of new electric and hybrid vehicles.
UK Wage Growth Eased, German Inflation Cooled In February
Bridgette Randall
12 Mar, 2024
Frankfurt
European markets hovered near record highs amid interest rate uncertainties and mixed economic data in recent days.
Benchmark indexes in Frankfurt, Paris, and London traded around the flatline as investors debated future rate paths, the global economic backdrop, and the ongoing weakness in consumer spending in the eurozone.
UK Wage Growth Slowed, Unemployment Rate Expanded
On the economic front, UK wage growth in the three months to January rose at the slowest pace since October 2022, the Office for National Statistics reported Tuesday.
Regular weekly pay, excluding bonuses, rose 6.1% to £627 per week, slower than the 6.2% rise in the previous three months.
Adjusted for inflation, regular pay increased 1.8%.
Total pay, including bonuses, rose at a slower pace to £672 per week, and the growth eased to 5.6% from 5.8%.
The wholesaling, retailing, hotels, and restaurants sectors saw the largest annual regular growth rate at 7.2%, followed by the manufacturing sector with a 6.8% increase and the finance and business services sector with a 6.6% rise.
The unemployment rate in the three-month period to January increased to 3.9% from 3.8% in the previous three-month period, and employment levels eased to 75%.
The number of people claiming jobless benefits in February increased by 16,800 from the previous month and 85,800 from a year ago to 1.585 million.
The number of job vacancies declined by 43,000 in the three-month period to January to 908,000, and the vacancies declined from the previous quarter but are still significantly above pre-pandemic levels.
The U.K. is battling with long-term sickness, and inactive people who are neither looking for work nor employed have increased to 21.8% of the population, or a near-record 2.7 million.
Germany's Inflation Downtrend Continued in February
Germany's inflation eased to an annual pace of 2.5%, down from 2.9% in January and 3.7% in December, the Federal Statistical Office confirmed Tuesday.
The inflation rate in the eurozone's largest economy has been cooling and dropped to the lowest rate since June 2021, when inflation stood at 2.4%.
"The price situation for energy products continues to ease. The increase in food prices has slowed markedly and is now below the overall inflation rate for the first time in more than two years," said President Ruth Brand, President of the Federal Statistical Office.
Weakening in energy prices drove the overall inflation lower, and the energy prices in February were 2.4% lower than in the same month a year ago, despite the ending of the government's energy subsidy in January.
Energy prices for households declined at a faster annual pace of 3.6% in February, despite the introduction of higher carbon prices since the beginning of 2024.
Excluding energy prices, the inflation rate was 3.1%, and excluding food and energy, the inflation rate was 3.4%.
But still, hopes ran high after inflation dropped to the level last seen in mid-2021, in hopes that the worst of the pandemic-era cost of living crisis was nearing its end.
Most of the decline in inflation is driven by the sharp fall in energy prices, and policymakers cannot take credit for the steady fall in inflation because prices are still significantly higher than pre-pandemic 2019 despite multiple interest rate hikes.
Europe Indexes and Yields
The DAX index increased by 0.2% to 17,786.57, the CAC-40 index fell by 0.01% to 8,018.20, and the FTSE 100 index inched higher by 0.9% to 7,742.50.
The yield on 10-year German bonds edged up to 2.29%; French bonds inched higher to 2.74%; the UK gilts edged lower to 3.92%; and Italian bonds inched higher to 3.60%.
The euro edged higher to $1.093, the British pound inched higher to $1.278, and the U.S. dollar held steady at 87.67 Swiss cents.
Brent crude increased $0.63 to $82.84 a barrel, and the Dutch TTF natural gas decreased by €0.03 to €24.91 per MWh.
Europe Stock Movers
Energy stocks advanced following the rise in crude oil prices after tensions in the Middle East.
BP plc advanced 1.6% to 479.10 pence, and Shell PLC gained 0.8% to €29.53.
Generali increased 1.9% to €22.65 after the Italian insurance company reported a record profit in 2023.
Oracle Corp. jumped 12.7% to €117.78 after the U.S.-based database company reported better-than-expected quarterly earnings.
Hill & Smith advanced 2.4% to 1,894.0 pence after the infrastructure products and services provider reported record annual sales.
Persimmon plc declined 3.3% to 1,329.0 pence after the UK-based home builder reported slightly lower-than-expected 2023 revenue earnings.
Wacker Chemie gained 6.3% to €110.30 despite the German chemical company estimating a slight decline in 2024 revenue and earnings.
Porsche Automobil SE increased 1.3% to €47.44 after the sportscar maker lifted its dividend but lowered its 2024 profitability outlook because of the launch of new electric and hybrid vehicles.
Japan's Producer Price Inflation Rebounded, Chinese Companies Accelerate Stock Buyback Plans
Arjun Pandit
12 Mar, 2024
Mumbai
Benchmark indexes in Asia edged lower amid cautious trading, and investors reacted to local corporate and economic news.
Chinese lawmakers ended their weeklong parliamentary session and did not provide any substantial measures to revive the property market and stabilize financial markets.
Moreover, China's housing minister said troubled property developers should pursue bankruptcy and restructuring alternatives, sending strong signals that the government is not likely to provide any financial assistance to troubled developers.
Tokyo indexes Drop to 3-week Lows, Producer Price Inflation Rebounded
Benchmark indexes in Japan traded down to three-week lows, and the yen and Japanese bond yields rallied on the hopes of the Bank of Japan ending its ultra-loose interest rate policy next week.
Investors are closely watching the outcome of spring wage negotiations between large corporations and workers unions, and expectations are high that real wages, after adjusting for inflation, are likely to rise more than 4% for the first time in nearly two decades.
Faster wage increases are likely to provide a strong signal to policymakers that inflation is likely to stay above 2%, supporting the move to end negative interest rates.
Producer prices in Japan rose 0.6% from a year ago in February amid widespread price increases, the Bank of Japan reported Tuesday.
The measure of wholesale prices rose at the fastest pace since last October, when prices advanced 1.1%. Prices rose at a slower pace of 0.2% in December and January.
Prices of food products, beverages, metal products, machinery, fuel, and coal rose at an elevated pace.
The Nikkei 225 Stock Average declined 0.4% to 38,659.89, and the Topix index dropped 0.8% to 2,646.82.
The yen edged up 0.3% to 147.39, and the yield on the 10-year Japanese government bond inched higher to 0.77%.
Tech stocks were among the leading decliners, and Tokyo Electron, Screen Holdings, SoftBank, and Advantest declined between 2% and 3%.
Leading exporters also declined, and Panasonic, Canon, Sony, and Mitsubishi Electric fell between 0.5% and 1.5%.
Marubeni, Mitsui & Company, Itochu, and Sumitomo declined between 2% and 4%.
Stock Buybacks Lift Market Mood In Hong Kong and Shanghai
Stocks in Shanghai struggled but advanced in Hong Kong in the hopes that more companies may buy back their shares amid weak prices.
Investors are hoping that the recent wave of stock buybacks from companies is indicative of the company's confidence in their businesses, and stock prices are trading at discounts to the company's business valuations.
Moreover, these purchases contribute to stabilizing financial markets.
WuXi Apptec jumped 5% to ¥57.54 after the biotech company said it bought back 50 million yuan of its own shares in Shanghai on Monday.
AIA Group increased 1.5% to HK$63.15 after the company said it acquired its stock for HK$12.7 million.
Xiaomi jumped 9.5% to $14.68 after the smartphone maker launched its electric vehicle, making an entry in a crowded market suffering from oversupply and intense price competition.
China Vanke rose 3.5% to $5.91 on the hopes that the government will provide financial support to the state-controlled home developer.
Separately, Moody's Investor Services downgraded the home developer's debt to junk level, citing a rising liquidity crunch amid a falling market and growing price pressures to sell newly developed projects.
Belatedly, Moody's Ratings replaced the company's investment grade "Baa3" rating with "Ba1," which is considered speculative and "subject to substantial risk."
The CSI 300 index edged down 0.03% to 3,588.30, and the Hang Seng index increased 1.7% to 16,870.31.
India Stocks Traded Around Record High
Stocks in Mumbai edged higher in early trading, and investors reviewed mixed global markets.
The Sensex and the Nifty indexes inched higher after struggling in the last two sessions, and the Indian government bond yields held steady as the rupee strengthened against the U.S. dollar.
Domestic and international investors stepped up investing in Indian stocks after investors searched for bargains.
Gold and silver prices continued to move higher, tracking gains in international markets, on the growing consensus that the U.S. Federal Reserve and the European Central Bank are laying the groundwork to cut interest rates starting as early as June.
Lower interest rates weaken the U.S. dollar and support a higher price of precious metals.
Market sentiment on Dalal Street has been positive after the Reserve Bank of India said last week that the March fourth quarter gross domestic product is likely to surpass the government's estimate.
The central bank's estimated fiscal year 2024 economic growth is likely to cross 8%, higher than the government's estimate of 7.6%.
The Sensex index increased 0.01% to 73,516.42, and the Nifty index edged up 0.01% to 22,334.45.
On the Mumbai stock exchange, 193 stocks traded at their 52-week highs and 105 stocks traded at their 52-week lows.
ITC declined 1% to ₹409.20, and the company's parent, British American Tobacco, is looking to divest between a $2 billion and a $3 billion stake in the company as early as this week.
Mahindra & Mahindra decreased 0.5% to ₹1,888.60, and the company's February vehicle sales increased 26% to 71,384 units, and production expanded 26% to 73,380 units from 56,551 units.
India Movers: Bharat Highways, HIL, Hindustan Zinc, ITC, Jupiter Wagons, PSP, Pitti Engineering, RK Swamy
Arun Goswami
12 Mar, 2024
Mumbai
Jupiter Wagons edged higher by 0.3% to ₹366.0 after the company won a ₹957 crore contract from the Ministry of Railways for the supply of wagons with side mechanisms.
ITC declined 1% to ₹409.20, and the company's parent, British American Tobacco, is looking to divest between a $2 billion and a $3 billion stake in the company as early as this week.
HIL decreased 0.2% to ₹2,706.0, and the company said it agreed to acquire Crestia Polytech and four other related entities for ₹265 crore.
Mahindra & Mahindra decreased 0.5% to ₹1,888.60, and the company's vehicle sales increased 26% to 71,384 units, and production expanded 26% to 73,380 units from 56,551 units.
However, vehicle exports declined 31.6% to 1,539 units.
PSP Projects fell 2.2% to ₹651.0 after the company said it received additional orders for 410 crore for a building construction project in GIFT city, Gandhinagar.
Hindustan Zinc declined 0.7% to ₹308.80 after the central government ministry declined the company's plan to split its zinc and lead, silver, and recycling into three separate companies.
Pitti Engineering inched lower by 5.7% to ₹745.10 after the company signed a binding agreement to acquire Bagadia Chaitra Industries for ₹124.9 crore.
RK Swampy is scheduled to list its stock after the integrated marketing services provider sold its stock at ₹288 per share in an initial public offering and raised ₹423 crore.
Bharat Highways InvIT, a real estate investment trust, is expected to list its stock at ₹100 per share.
U.S. and World Indexes Extend 2-Day Losses but Stay Close to Record Highs
Barry Adams
11 Mar, 2024
New York City
Benchmark indexes lacked direction and extended the previous week's losses as investors looked ahead to the release of inflation data later in the week.
The S&P500 index and the Nasdaq Composite declined 0.2% in trading in New York, and investors debated the future rate path and labor market conditions.
Last week, stock market indexes declined, and investors focused on labor market updates and overlooked international trade data.
U.S. nonfarm payrolls expanded at a healthy pace in February, and the growing job market also enticed more people to apply for jobs, which in turn increased the jobless rate to a 2-year high, and annual wage gains decelerated to 4.3%.
Moreover, job openings edged slightly lower but remained at a high level, indicating that labor market conditions are healthy, despite multiple rate hikes over the last two years.
The yield on Treasury notes declined on the growing optimism that policymakers are more likely to cut rates as early as June, providing another boost to the stock market advance and driving gold to a record high.
Traders are anticipating that February's consumer price inflation will rise by 0.4% on a monthly basis and 3.0% from a year ago, according to a survey conducted by Ticker.com.
Core inflation, which excludes volatile food and energy prices, is expected to rise 0.3% from the previous month and advance at a faster pace of 3.7% from a year ago.
The U.S. Bureau of Labor Statistics is set to release inflation data on Tuesday and producer price index data on Thursday.
Despite multiple interest rate hikes over the last two years, inflation has still stayed well above the Federal Reserve's target rate of 2%, and bringing down inflation may require higher interest rates to stay longer, contrary to the market's expectations.
U.S. Indexes and Yields
The S&P 500 index decreased 0.2% to 5,112.30, and the Nasdaq Composite fell 0.4% to 16,022.73.
The yield on 2-year Treasury notes increased to 4.51%, 10-year Treasury notes inched up to 4.07%, and 30-year Treasury bonds edged down to 4.24%.
WTI crude oil decreased $0.10 to $77.90 a barrel, and natural gas prices decreased 3 cents to $1.78 a thermal unit.
Gold increased by $1.64 to $2,179.40 an ounce, and silver rose 13 cents to $24.43.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 102.84.
U.S. Stock Movers
Cryptocurrency stocks advanced after Bitcoin surged above $71,000 in the hopes that the U.K. securities regulator may approve retail investing in the digital currency through an exchange-traded note vehicle.
MicroStrategy soared 9%, Coinbase advanced 6%, and Marathon Digital jumped 5%.
Artificial intelligence applications and infrastructure-related stocks declined in Monday's trading.
Nvidia declined 1%, Super Micro dropped 3%, Broadcom fell 1%, and Advanced Micro Devices eased 2%.
European Markets Ease from Record Highs
European market indexes declined from record highs after investors booked profits and reviewed the latest rate announcements last week.
Benchmark indexes in Frankfurt, Paris, and London inched lower in Monday's trading, and bond yields also drifted lower.
Central banks in the U.S. and Eurozone led investors to believe that interest rates are near their peak in the current cycle and raised hopes for rate cuts to begin as early as June.
Last week, the European Central Bank also held its key lending rates steady for the fourth consecutive time in a row, and ECB President Lagarde confirmed that the market’s view of rate cuts in three months is converging with the view of policymakers.
Moreover, last week's latest batch of economic reports showed Germany's exports rose more than expected and the trade surplus widened in January, but France's trade balance remained in deficit because of high energy prices.
Spain's retail trade activity increased by 0.3% in January, following the downwardly revised 2.7% rise in the previous month, the National Statistics Institute reported Monday.
Retail sales rose for the fourteenth month in a row, but the rise was the smallest in the period.
Europe Indexes and Yields
The DAX index decreased by 0.4% to 17,746.27, the CAC-40 index fell by 0.1% to 8,019.73, and the FTSE 100 index inched higher by 0.1% to 7,669.23.
The yield on 10-year German bonds edged down to 2.26%; French bonds inched lower to 2.71%; the UK gilts edged lower to 3.95%; and Italian bonds inched lower to 3.59%.
The euro edged higher to $1.09, the British pound inched higher to $1.28, and the U.S. dollar weakened to 87.67 Swiss cents.
Brent crude increased $0.11 to $82.19 a barrel, and the Dutch TTF natural gas decreased by €1.96 to €24.93 per MWh.
Europe Stock Movers
Metals and mining companies fell after cautious comments from the Chinese minister.
China's housing minister said on Monday that the government is prepared to let some property developers go bankrupt if they are deemed to be financially unviable.
Anglo American declined 2.1% to 1,811.60 pence, and Glencore fell 2.2% to 391.70 pence after copper and iron ore prices eased on China's growth worries.
Currys PLC dropped 8.7% to 59.15 pence after U.S.-based activist investment manager Elliott Investment Management said it no longer plans to make a bid for the electronics retailer.
Marston's PLC decreased 1.1% to 29.50 pence after the UK-based pub's chairman confirmed his plans to step down from the company's board later in the year.
Imperial Brands rose 2.1% to 1,728.0 pence after the company announced a stock repurchase plan of £11 billion.
HelloFresh advanced 3.7% to €7.11 after the German meal-kit company's stock plunged 40% last week following the company's weak outlook.
Enel SpA rose 0.6% to €6.16 after the Italian energy company's subsidiary E-distribuzione announced its plans to sell some of its distribution activities for €1.2 billion to Italian regional utility A2A.
LEG Immobilien gained 3.7% to €74.62 after the property company reported better-than-expected quarterly results.
EssilorLuxttica decreased 2.1% to €204.45, and the Financial Times said that the company was one of the top contenders to acquire Italian eyewear maker Marcolin.
Asian Markets Head Lower
Asian markets traded mixed in Monday's trading, and tech stocks led the indexes in Tokyo and Mumbai lower, but the benchmark indexes in China edged higher after the release of inflation data.
Nikkei In Tokyo Dropped 2%, Q4 GDP Revised Higher
Stocks in Tokyo dropped sharply following the weakness in tech stocks in Friday's trading in New York.
Profit-taking sentiment dictated market volatility, and the Japanese yen strengthened against the U.S. dollar after the fourth quarter. GDP was upwardly revised and stoked speculation that the Bank of Japan is likely to end its ultra-loose monetary policy at the end of its policy meeting on March 19.
Japan's fourth-quarter GDP growth was revised to an increase of 0.1% from the preliminary estimate of a decline of 0.1%, avoiding a technical recession after contracting 0.8% in the third quarter. Japan's Cabinet Office reported Monday.
On an annualized basis, GDP increased 0.4% after slumping 2.9% in the three months prior. GDP capital expenditure was up 2.0 percent on the quarter after declining 0.4% in the third quarter.
The Nikkei 225 Stock Average declined 2% to 38,868.10, and the Topix index dropped 2.2% to 2,666.72.
Tokyo Electron, Disco Corp., SoftBank, Advantest, and Screen Holdings declined between 3% and 5%.
Sumitomo Mitsui Financial, Mizuho Financial, and Mitsubishi UFJ Financial declined more than 3%.
Inflation Rebounded and Foreign Investments Lift China Stocks Higher
Stocks in Shanghai and Hong Kong advanced on the hopes that demand conditions are recovering after the rebound in inflation.
Market sentiment was also bolstered by a net inflow of $9.6 billion of funds in Chinese stocks in February, reversing a net outflow in the previous six months in a row, according to the Institute of International Finance.
China's consumer price inflation rebounded to an increase of 0.7% in February after a 14-year steep decline of 0.8% in January, the National Bureau of Statistics reported over the weekend.
The shifting lunar holiday calendar also played a role in the rebound in inflation following the early arrival of the annual holidays last year.
Property developers declined after the housing minister confirmed that the government is prepared to let some developers go bankrupt for a lack of financial viability.
The CSI 300 index increased 0.4% to 3,559.88, and the Hang Seng index added 1.1% to 16,548.22.
Longfor Group, China Vanke, China Resources Land, Henderson Land Development, and Sun Hung Kai traded down but managed to recover in the afternoon trading.
Longfor Group traded higher by 0.5% to HK$9.43, despite the property developer saying its annual profit declined by as much as 50% in the last year.
Alibaba Group, Tencent Holdings, JD.com, Meituan, and Baidu advanced between 2% and 4% following the bargain hunting for foreign investors.
India indexes track lower global markets.
The Sensex index decreased 0.2% to 73,952.93, and the Nifty index fell 0.2% to 22,458.20.
On the Mumbai stock exchange, 160 stocks traded at their 52-week highs and 57 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds increased to 7.05%, and the Indian rupee strengthened to ₹82.82 against the U.S. dollar.
Stocks in Mumbai headed lower in Monday's trading, and investors reacted to local corporate news amid global markets.
The Sensex and the Nifty indexes dropped more than 0.1% in early trading on global interest rate uncertainties compounded by high valuations in local markets.
Market indexes struggled after extending weekly gains for the seventh week in a row, and international crude oil prices hovered near two-week lows on the ongoing demand growth worries in China and rising supplies in the U.S.
Traders Look Ahead to Inflation Data Amid Monday Market Jitters
Barry Adams
11 Mar, 2024
New York City
Stocks struggled in Monday's trading, and benchmark indexes extended the previous week's losses as investors looked ahead to the release of inflation data later in the week.
The S&P500 index and the Nasdaq Composite declined 0.5% in early trading in New York, and investors debated the future rate path and labor market conditions.
Last week, stock market indexes declined, and investors focused on labor market updates and overlooked international trade data.
U.S. nonfarm payrolls expanded at a healthy pace in February, and the growing job market also enticed more people to apply for jobs, which in turn increased the jobless rate to a 2-year high, and annual wage gains decelerated to 4.3%.
Moreover, job openings edged slightly lower but remained at a high level, indicating that labor market conditions are healthy, despite multiple rate hikes over the last two years.
The yield on Treasury notes declined on the growing optimism that policymakers are more likely to cut rates as early as June, providing another boost to the stock market advance and driving gold to a record high.
Traders are anticipating that February's consumer price inflation will rise by 0.4% on a monthly basis and 3.0% from a year ago, according to a survey conducted by Ticker.com.
Core inflation, which excludes volatile food and energy prices, is expected to rise 0.3% from the previous month and advance at a faster pace of 3.7% from a year ago.
The U.S. Bureau of Labor Statistics is set to release inflation data on Tuesday and producer price index data on Thursday.
Despite multiple interest rate hikes over the last two years, inflation has still stayed well above the Federal Reserve's target rate of 2%, and bringing down inflation may require higher interest rates to stay longer, contrary to the market's expectations.
U.S. Indexes and Yields
The S&P 500 index decreased 0.2% to 5,113.50, and the Nasdaq Composite fell 0.2% to 16,052.06.
The yield on 2-year Treasury notes increased to 4.51%, 10-year Treasury notes inched up to 4.07%, and 30-year Treasury bonds edged down to 4.24%.
WTI crude oil decreased $0.87 to $77.21 a barrel, and natural gas prices decreased 3 cents to $1.78 a thermal unit.
Gold increased by $1.30 to $2,178.70 an ounce, and silver rose 13 cents to $24.43.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 103.83.
U.S. Stock Movers
Cryptocurrency stocks advanced after Bitcoin surged above $71,000 in the hopes that the U.K. securities regulator may approve retail investing in the digital currency through an exchange-traded note vehicle.
MicroStrategy soared 9%, Coinbase advanced 6%, and Marathon Digital jumped 5%.
Artificial intelligence applications and infrastructure-related stocks declined in Monday's trading.
Nvidia declined 1%, Super Micro dropped 3%, Broadcom fell 1%, and Advanced Micro Devices eased 2%.
Europe Movers: Currys, Enel, EssilorLuxottica, HelloFresh, Imperial Brands, Marston's
Inga Muller
11 Mar, 2024
Frankfurt
European stock market indexes declined from record highs, and bond yields drifted lower after the European Central Bank supported the market view of a possible rate cut as early as June.
The DAX index decreased by 0.7% to 17,686.07, the CAC-40 index fell by 0.4% to 7,999.17, and the FTSE 100 index inched lower by 0.3% to 7,637.33.
The yield on 10-year German bonds edged down to 2.26%; French bonds inched lower to 2.71%; the UK gilts edged lower to 3.95%; and Italian bonds inched lower to 3.59%.
Metals and mining companies fell after cautious comments from the Chinese minister.
China's housing minister said on Monday that the government is prepared to let some property developers go bankrupt if they are deemed to be financially unviable.
Anglo American declined 2.1% to 1,811.60 pence, and Glencore fell 2.2% to 391.70 pence after copper and iron ore prices eased on China's growth worries.
Currys PLC dropped 8.7% to 59.15 pence after U.S.-based activist investment manager Elliott Investment Management said it no longer plans to make a bid for the electronics retailer.
Marston's PLC decreased 1.1% to 29.50 pence after the UK-based pub's chairman William Rucker confirmed his plans to step down from the company's board as of July 8.
Imperial Brands rose 2.1% to 1,728.0 pence after the company announced a stock repurchase plan of £11 billion.
HelloFresh advanced 3.7% to €7.11 after the German meal-kit company's stock plunged 40% last week following the company's weak outlook.
Enel SpA rose 0.6% to €6.16 after the Italian energy company's subsidiary E-distribuzione announced its plans to sell some of its distribution activities for €1.2 billion to Italian regional utility A2A.
LEG Immobilien gained 3.7% to €74.62 after the property company reported better-than-expected quarterly results.
EssilorLuxottica decreased 2.1% to €204.45, and the Financial Times said that the company was one of the top contenders to acquire Italian eyewear maker Marcolin.
European Indexes Decline from Record Highs, Spain's Retail Trade Expanded
Bridgette Randall
11 Mar, 2024
Frankfurt
European market indexes declined from record highs after investors booked profits and reviewed the latest rate announcements last week.
Benchmark indexes in Frankfurt, Paris, and London inched lower in Monday's trading, and bond yields also drifted lower.
Central banks in the U.S. and Eurozone led investors to believe that interest rates are near their peak in the current cycle and raised hopes for rate cuts to begin as early as June.
Last week, the European Central Bank also held its key lending rates steady for the fourth consecutive time in a row, and ECB President Lagarde confirmed that the market’s view of rate cuts in three months is converging with the view of policymakers.
Moreover, last week's latest batch of economic reports showed Germany's exports rose more than expected and the trade surplus widened in January, but France's trade balance remained in deficit because of high energy prices.
Spain's retail trade activity increased by 0.3% in January, following the downwardly revised 2.7% rise in the previous month, the National Statistics Institute reported Monday.
Retail sales rose for the fourteenth month in a row, but the rise was the smallest in the period.
Europe Indexes and Yields
The DAX index decreased by 0.7% to 17,686.07, the CAC-40 index fell by 0.4% to 7,999.17, and the FTSE 100 index inched lower by 0.3% to 7,637.33.
The yield on 10-year German bonds edged down to 2.26%; French bonds inched lower to 2.71%; the UK gilts edged lower to 3.95%; and Italian bonds inched lower to 3.59%.
The euro edged higher to $1.09, the British pound inched higher to $1.28, and the U.S. dollar weakened to 87.67 Swiss cents.
Brent crude increased $0.29 to $82.39 a barrel, and the Dutch TTF natural gas decreased by €0.96 to €25.43 per MWh.
Europe Stock Movers
Metals and mining companies fell after cautious comments from the Chinese minister.
China's housing minister said on Monday that the government is prepared to let some property developers go bankrupt if they are deemed to be financially unviable.
Anglo American declined 2.1% to 1,811.60 pence, and Glencore fell 2.2% to 391.70 pence after copper and iron ore prices eased on China's growth worries.
Currys PLC dropped 8.7% to 59.15 pence after U.S.-based activist investment manager Elliott Investment Management said it no longer plans to make a bid for the electronics retailer.
Marston's PLC decreased 1.1% to 29.50 pence after the UK-based pub's chairman confirmed his plans to step down from the company's board later in the year.
Imperial Brands rose 2.1% to 1,728.0 pence after the company announced a stock repurchase plan of £11 billion.
HelloFresh advanced 3.7% to €7.11 after the German meal-kit company's stock plunged 40% last week following the company's weak outlook.
Enel SpA rose 0.6% to €6.16 after the Italian energy company's subsidiary E-distribuzione announced its plans to sell some of its distribution activities for €1.2 billion to Italian regional utility A2A.
LEG Immobilien gained 3.7% to €74.62 after the property company reported better-than-expected quarterly results.
EssilorLuxttica decreased 2.1% to €204.45, and the Financial Times said that the company was one of the top contenders to acquire Italian eyewear maker Marcolin.
Japan Narrowly Avoided Recession After GDP Growth Revised Higher, China's Inflation Rebounded
Arjun Pandit
11 Mar, 2024
Mumbai
Asian markets traded mixed in Monday's trading, and tech stocks led the indexes in Tokyo and Mumbai lower, but the benchmark indexes in China edged higher after the release of inflation data.
Nikkei In Tokyo Dropped 2%, Q4 GDP Revised Higher
Stocks in Tokyo dropped sharply following the weakness in tech stocks in Friday's trading in New York.
Profit-taking sentiment dictated market volatility, and the Japanese yen strengthened against the U.S. dollar after the fourth quarter. GDP was upwardly revised and stoked speculation that the Bank of Japan is likely to end its ultra-loose monetary policy at the end of its policy meeting on March 19.
Japan's fourth-quarter GDP growth was revised to an increase of 0.1% from the preliminary estimate of a decline of 0.1%, avoiding a technical recession after contracting 0.8% in the third quarter. Japan's Cabinet Office reported Monday.
On an annualized basis, GDP increased 0.4% after slumping 2.9% in the three months prior. GDP capital expenditure was up 2.0 percent on the quarter after declining 0.4% in the third quarter.
The Nikkei 225 Stock Average declined 2% to 38,868.10, and the Topix index dropped 2.2% to 2,666.72.
Tokyo Electron, Disco Corp., SoftBank, Advantest, and Screen Holdings declined between 3% and 5%.
Sumitomo Mitsui Financial, Mizuho Financial, and Mitsubishi UFJ Financial declined more than 3%.
Inflation Rebounded and Foreign Investments Lift China Stocks Higher
Stocks in Shanghai and Hong Kong advanced on the hopes that demand conditions are recovering after the rebound in inflation.
Market sentiment was also bolstered by a net inflow of $9.6 billion of funds in Chinese stocks in February, reversing a net outflow in the previous six months in a row, according to the Institute of International Finance.
China's consumer price inflation rebounded to an increase of 0.7% in February after a 14-year steep decline of 0.8% in January, the National Bureau of Statistics reported over the weekend.
The shifting lunar holiday calendar also played a role in the rebound in inflation following the early arrival of the annual holidays last year.
Property developers declined after the housing minister confirmed that the government is prepared to let some developers go bankrupt for a lack of financial viability.
The CSI 300 index increased 0.4% to 3,559.88, and the Hang Seng index added 1.1% to 16,548.22.
Longfor Group, China Vanke, China Resources Land, Henderson Land Development, and Sun Hung Kai traded down but managed to recover in the afternoon trading.
Longfor Group traded higher by 0.5% to HK$9.43, despite the property developer saying its annual profit declined by as much as 50% in the last year.
Alibaba Group, Tencent Holdings, JD.com, Meituan, and Baidu advanced between 2% and 4% following the bargain hunting for foreign investors.
India indexes track lower global markets.
The Sensex index decreased 0.2% to 73,952.93, and the Nifty index fell 0.2% to 22,458.20.
On the Mumbai stock exchange, 160 stocks traded at their 52-week highs and 57 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds increased to 7.05%, and the Indian rupee strengthened to ₹82.82 against the U.S. dollar.
Stocks in Mumbai headed lower in Monday's trading, and investors reacted to local corporate news amid global markets.
The Sensex and the Nifty indexes dropped more than 0.1% in early trading on global interest rate uncertainties compounded by high valuations in local markets.
Market indexes struggled after extending weekly gains for the seventh week in a row, and international crude oil prices hovered near two-week lows on the ongoing demand growth worries in China and rising supplies in the U.S.
India Movers: Interglobe Aviation, Exide Industries, HG Infra, JM Financial, Rail Vikas Nigam, Torrent Power
Arun Goswami
11 Mar, 2024
Mumbai
Stock market indexes declined in Monday's trading after extending weekly gains for the seventh week in a row in the previous week.
The Sensex index decreased 0.2% to 73,952.93, and the Nifty index fell 0.2% to 22,458.20.
On the Mumbai stock exchange, 160 stocks traded at their 52-week highs and 57 stocks traded at their 52-week lows.
Torrent Power increased 4.1% to ₹1,192.15 after the company was awarded a 306 MW solar power project by Maharashtra State Electricity Distribution.
Interglobe Aviation decreased 0.2% to ₹3,099.85 on a report that the company's promoter, Rakesh Gangwal, and other entities controlled by his family are expected to sell a 3.3% stake, or 13 crore shares, in the airline in a block deal today.
Rail Vikas Nigam gained 5% to ₹249.90 after the company won orders from Himachal Pradesh and Madhya Pradesh for expanding 11 KV powerlines.
JM Financial decreased 8.5% to ₹80.15 after the financial services provider was barred by the securities regulator from managing a new public offering of debt securities.
Sonata Software added 0.2% to ₹789.70, and the company announced the integration of its artificial intelligence application with Microsoft Azure.
HG Infra Engineering increased 2.3% to ₹929.50 after the company's 610 crore bid was selected as the lowest for the construction of a 4-lane highway in Jharkhand.
Coal India advanced 0.5% to ₹460.90 after the company signed a preliminary contract to investigate the possibility of setting up a 4,1000 MW power plant in Rajasthan.
Exide Industries decreased 0.5% to ₹326.50, and the company announced a plan to raise ₹40 crore through a rights offering in its advanced battery manufacturing subsidiary.
U.S. Movers: Broadcom, Costco Wholesale, Gap, Marvell Technology
Scott Peters
08 Mar, 2024
New York City
Broadcom declined 0.4% to $1,402.0 after the advanced chipmaker reported better-than-expected quarterly results and estimated revenue in the current quarter in line with market expectations.
Marvell Technology decreased 4.2% to $81.50 after the semiconductor company reported mixed quarterly results and issued a lighter-than-expected revenue and adjusted earnings outlook for the current quarter.
Costco Wholesale declined 3.8% to $761.41 after the membership retailer reported weaker than expected revenue in its latest quarter.
Gap Inc. increased 9.5% to $21.17 after the apparel retailer reported better-than-expected holiday quarter sales of $4.3 billion and earnings per share of 49 cents.