Market Update
U.S. Job Openings Held Steady In January
Brian Turner
06 Mar, 2024
New York City
The number of job openings decreased by 86,000 to 8.9 million in January from the previous month, the U.S. Bureau of Labor Statistics reported Wednesday in its monthly Job Openings and Labor Turnover Survey.
The job openings measure is down from a series high of 12.2 million in March 2022.
In January, job openings increased in nondurable goods manufacturing by 82,000 but decreased in private educational services by 41,000.
Over the month, the number of hires and total separations were little changed, at 5.7 million and 5.3 million, respectively.
The number of job openings for December was revised down by 137,000 to 8.9 million, the number of hires was revised up by 166,000 to 5.8 million, and the number of total separations was revised up by 54,000 to 5.4 million.
In 2023, the annual average job opening level was 9.4 million, a decrease of 1.8 million from 2022. The annual average job opening rate was 5.7 percent in 2023, compared to 6.8 percent in 2022.
S&P 500 and Nasdaq Advanced 1%, World Markets Look Beyond Rate Jitters
Barry Adams
06 Mar, 2024
New York City
Stocks on Wall Street edged higher after two losing sessions in a row, and investors reviewed updates on the labor market.
The S&P 500 index and the Nasdaq Composite advanced, and semiconductor and large-cap tech stocks led the gainers.
Investors also reviewed Federal Reserve Chairman Jerome Powell's prepared comments to be delivered to lawmakers on Capitol Hill.
Fed Chair Powell reiterated the central bank's stand to keep interest rates restrictive and not ease inflation too early.
“The Committee does not expect that it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent,” Powell added in his comments.
Despite the Fed's tough talk, the central bank has expanded the broad money supply by 45% during the three years of the COVID-19 pandemic between 2020 and 2022, driving up food, automobile, and home prices by more than 100%.
U.S. Job Openings Held Steady
The number of job openings decreased by 86,000 to 8.9 million in January from the previous month, the U.S. Bureau of Labor Statistics reported Wednesday in its monthly Job Openings and Labor Turnover Survey.
The job openings measure is down from a series high of 12.2 million in March 2022.
In January, job openings increased in nondurable goods manufacturing by 82,000 but decreased in private educational services by 41,000.
Over the month, the number of hires and total separations were little changed, at 5.7 million and 5.3 million, respectively.
The number of job openings for December was revised down by 137,000 to 8.9 million, the number of hires was revised up by 166,000 to 5.8 million, and the number of total separations was revised up by 54,000 to 5.4 million.
In 2023, the annual average job opening level was 9.4 million, a decrease of 1.8 million from 2022. The annual average job opening rate was 5.7 percent in 2023, compared to 6.8 percent in 2022.
U.S. Private Payrolls Expanded In February
Private payrolls expanded in February by 140,000 after growing by an upwardly revised 111,000 in January, payroll processing company ADP reported Wednesday.
In the month, leisure and hospitality led job increases across all industries with a gain of 41,000, followed by construction with 28,000, utilities with 27,000, and financial services with 17,000.
U.S. Indexes and Yields
The S&P 500 index decreased 0.9% to 5,085.84, and the Nasdaq Composite decreased 1.5% to 15,963.81.
The yield on 2-year Treasury notes decreased to 4.58%, 10-year Treasury notes inched down to 4.14%, and 30-year Treasury bonds edged down to 4.28%.
WTI crude oil decreased $1.01 to $79.13 a barrel, and natural gas prices decreased 1 cent to $1.97 a thermal unit.
Gold increased by $8.53 to $2,136.23 an ounce, and silver rose 11 cents to $23.79.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 103.88.
U.S. Stock Movers
Nordstrom plunged 9.2% to $18.87 after the department store chain reported better-than-expected results in the fiscal fourth quarter, but the company's 2024 guidance for the current year fell short of market expectations.
CrowdStrike Holdings soared 22.5% to $364.59 after the cyber security company reported better-than-expected quarterly results.
Box jumped 4.6% to $28.50 after the cloud storage company reported revenue in line with analysts' estimates.
Foot Locker plunged 11.1% to $30.50 after the athletic footwear retailer reported a loss in its latest quarter and the company guided weaker-than-expected sales in the current year.
Abercrombie & Fitch declined 2% to $137.01 despite the apparel retailer reporting better-than-expected sales in the holiday quarter and the company's positive outlook for the current year.
Sales in the quarter ending on January 28 increased 21% to $1.45 billion from $1.2 billion, net income advanced to $158.4 million from $38.3 million, and diluted earnings per share rose to $2.97 from 75 cents a year ago.
The retailer estimated sales in the current quarter to rise by a low double-digit percentage and increase between 4% and 6% in the fiscal year.
European Markets Edged Higher Awaiting Rate Decisions and Growth Outlook
Stock market indexes in Europe edged higher, and investors reviewed the latest economic updates and awaited the release of the UK's general budget.
Benchmark indexes in Frankfurt, Paris, and London inched higher ahead of the European Central Bank's rate decisions on Thursday.
Eurozone Retail Sales Barely Advanced in January
Retail sales in the eurozone increased by 0.1% in January from the previous month, following a revised 0.6% contraction in December, Eurostat reported Wednesday.
Retail sales adjusted for the calendar decreased 1.0% from a year ago, and fell for the sixteenth month in a row.
Volume of food, drinks, and tobacco from a year ago declined by 0.6%, automotive fuel increased by 0.8%, and nonfood products declined by 1.4%.
German Trade Surplus Expands to Record High In January
German exports rose faster than imports, driving the trade surplus to a record high in January, indicating a strong demand for German goods.
Exports rose 6.3% monthly and edged up 0.3% annually to €135.6 billion, and imports rose 3.6% monthly but dropped 8.3% annually to €108 billion.
Most German exports were shipped to the U.S., followed by transactions with the People's Republic of China and the U.K.
Exports to the U.S. decreased 1.7% monthly to 12.5 billion, to China increased 7.8% to 8.1 billion, and to the U.K. decreased 8.1% to 6.8 billion.
Meanwhile, most imports arrived from China, followed by shipments from the U.S. and the U.K.
Imports from China decreased 11.1% to €10.4 billion, from the U.S. fell 5.2% to €7.8 billion, and from the U.K. increased 18.4% to €3.1 billion.
Calendar and seasonally adjusted goods exports to the European Union member states increased 8.9% to €75.8 billion, and imports rose 10.8% to €61.2 billion.
The goods trade surplus in January widened to €27.5 billion from €23.3 billion in December and €16.9 billion a year ago.
Europe Indexes and Yields
The DAX index increased by 0.05% to 17,708.60, the CAC-40 index rose by 0.3% to 7,955.77, and the FTSE 100 index inched higher by 0.3% to 7,671.70.
The yield on 10-year German bonds edged down to 2.35%; French bonds inched lower to 2.81%; the UK gilts edged lower to 4.05%; and Italian bonds inched lower to 3.72%.
The euro edged higher to $1.087, the British pound inched higher to $1.272, and the U.S. dollar weakened to 88.45 Swiss cents.
Brent crude increased $1.99 to $84.03 a barrel, and the Dutch TTF natural gas increased by €0.67 to €26.80 per MWh.
Europe Stock Movers
Legal & General Group declined 2.2% to 239.91 pence after the UK-based insurance company reported flat operating profit in 2023.
DS Smith increased 0.5% to 321.90 pence after the paperboard and packaging company reported better-than-expected fiscal third quarter profit and the company estimated a positive outlook in the current quarter.
Deutsche Post declined 5.8% to €39.27 after the parent company of DHL cautioned against flat annual earnings in the current fiscal year.
Symrise advanced 4.9% to €100.90 after the German flavor and fragrance company reported a better-than-expected core annual profit in 2023.
Tullow Oil fell 0.5% to 28.11 pence after the independent energy company reported a decline in pre-tax profit on lower crude oil prices and impairment charges.
Total revenue in 2023 declined to $1.6 billion from $1.8 billion, net income from continuing activities swung to a loss of $110 million from a profit of $49 million, and basic earnings per share were 7.6 cents a loss compared to 3.4 cents a profit a year ago.
Energy production in the quarter increased to 55,754 from 55,170, but the realized oil price fell to $77.50 from $88.0 a year ago.
China Struggle with Growth Initiatives, Australian Economy Barely Expanded
Stock markets in Asia moderately declined amid a lack of economic news, and investors focused on China's annual gathering of lawmakers.
Elsewhere in the region, Australia's economy expanded 0.2% in the fourth quarter from the previous quarter, its ninth quarterly expansion in a row, the Australian Bureau of Statistics reported Wednesday.
Australia's economy expanded at an annual pace of 1.5% in the fourth quarter, the slowest pace of growth in three years.
For all of 2023, Australia clocked a 1.5% increase, largely driven by a rise in net exports, and consumer spending barely rose 0.1%.
When counting the rising population in Australia, GDP per person actually shrank 1.0% in 2023.
Japan Indexes Hold Steady Near Record Highs
Stocks in Japan lacked direction following the weakness in New York in overnight trading.
Tech stocks struggled for the second day in a row but traded near record highs as investors increased allocations to semiconductor-related companies that are likely to benefit from the boom in artificial intelligence applications.
The Nikkei 225 Stock Average held steady at 40,098.24, and the Topix index gained 0.4% to 2,730.81.
Tokyo Electron, Disco Corp., Screen Holdings, SoftBank, and Renesas Electronics decreased between 1% and 2%.
Fast Retailing declined 0.7%, but Isetan Mitsukoshi advanced 2.9%.
Among large banks, Mizuho Financial and Sumitomo Mitsui Financial advanced more than 1%, while Mitsubishi UFJ Financial added 0.5%.
China Stocks Struggle as Lawmakers Discuss Broader Issues
Stocks in Shanghai advanced in cautious trading as investors held out for more targeted financial and property market reforms.
However, market indexes in Hong Kong rebounded on speculation that the latest property reforms in the city are enough to revive the moribund local property market and rising interest from mainland buyers.
Investors are more focused on corporate earnings than the big-picture discussions by policymakers during the 7-day gathering of the rubber-stamp parliament and Chinese leaders.
Investors are generally disappointed with the lack of specific stimulus measures at the annual parliamentary meeting, arbitrary implementation at local levels, and rising debt levels at the central and local levels.
Foreign investors are still lowering their allocation to Chinese stocks on the grounds of inconsistent economic reforms, a lack of earnings visibility, and expanded anti-espionage and anti-national security laws that could endanger intellectual property.
Despite the gains in today's trading, the benchmark index in Hong Kong is the worst-performing market among the largest ten financial markets in the world.
The CSI 300 index edged up a fraction to 3,568.20, and the Hang Seng index rebounded 2.3% to 16,539.01.
Tech stocks advanced in Hong Kong ahead of JD.com's financial results in the hopes that the e-commerce company is set to announce earnings gains of at least 50% later today.
Alibaba.com Group, Tencent, Meituan, and Baidu.com gained between 2% and 4%.
Banks also participated in the rally, and HSBC and China Merchants Bank gained 2% and 4%, respectively.
India Indexes Struggle to Advance Amid Valuation Worries and Higher Interest Rates
Stocks in Mumbai faced selling pressure, and valuation worries kept investors on the sidelines for the second week in a row.
The Sensex and the Nifty indexes traded down amid moderate weakness in Asian markets and a lower closing in the U.S. for the second day in a row.
Stocks in Mumbai are facing headwinds, and benchmark indexes are up about 2% in the year so far, lagging behind gains in Japan, the U.S., Germany, and France.
Moreover, international rate jitters also compounded market anxieties ahead of the European Central Bank's rate decision on Thursday.
The central bank is widely expected to hold its interest rates steady, but it may provide clues to future rate paths.
International investors are struggling to increase their exposure to Indian stocks as higher interest rates in the U.S. and Europe provide tough comparisons, and earnings results in India have lagged market expectations.
At the same time, stocks in India and Japan have benefited from foreign investors switching their investments from China following the protracted decline in the property market and the weaker-than-expected rebound in China's economy after the ending of zero COVID restrictions.
The Sensex index decreased 0.2% to 73,551.08, and the Nifty index fell 0.3% to 22,294.60.
On the Mumbai stock exchange, 75 stocks traded at their 52-week highs and 34 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 ₹82.85 against the U.S. dollar.
Tech Stocks Halt Two-day Selloff, Powell Reiterates Interest Rate Stance
Barry Adams
06 Mar, 2024
New York City
Stocks on Wall Street edged higher after two losing sessions in a row.
The S&P 500 index and the Nasdaq Composite inched higher, and semiconductor stocks resumed their advance.
Investors also reviewed Federal Reserve Chairman Jerome Powell's prepared comments to be delivered to lawmakers on Capitol Hill.
Fed Chair Powell reiterated the central bank's stand to keep interest rates restrictive and not ease inflation too early.
“The Committee does not expect that it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent,” Powell added in his comments.
Despite the Fed's tough talk, the central bank has expanded the broad money supply by 45% during the three years of the COVID-19 pandemic between 2020 and 2022, driving up food, automobile, and home prices by more than 100%.
Private payrolls expanded in February by 140,000 after growing by an upwardly revised 111,000 in January, payroll processing company ADP reported Wednesday.
Job gains in the month were driven by leisure and hospitality, adding 41,000, followed by construction expanding by 28,000, utilities by 27,000, and financial services by 17,000.
U.S. Indexes and Yields
The S&P 500 index decreased 0.9% to 5,085.84, and the Nasdaq Composite decreased 1.5% to 15,963.81.
The yield on 2-year Treasury notes decreased to 4.58%, 10-year Treasury notes inched down to 4.14%, and 30-year Treasury bonds edged down to 4.28%.
WTI crude oil decreased $1.01 to $79.13 a barrel, and natural gas prices decreased 1 cent to $1.97 a thermal unit.
Gold increased by $8.53 to $2,136.23 an ounce, and silver rose 11 cents to $23.79.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 103.88.
U.S. Stock Movers
Nordstrom plunged 9.2% to $18.87 after the department store chain reported better-than-expected results in the fiscal fourth quarter, but the company's 2024 guidance for the current year fell short of market expectations.
CrowdStrike Holdings soared 22.5% to $364.59 after the cyber security company reported better-than-expected quarterly results.
Box jumped 4.6% to $28.50 after the cloud storage company reported revenue in line with analysts' estimates.
Foot Locker plunged 11.1% to $30.50 after the athletic footwear retailer reported a loss in its latest quarter and the company guided weaker-than-expected sales in the current year.
Abercrombie & Fitch declined 2% to $137.01 despite the apparel retailer reporting better-than-expected sales in the holiday quarter and the company's positive outlook for the current year.
Sales in the quarter ending on January 28 increased 21% to $1.45 billion from $1.2 billion, net income advanced to $158.4 million from $38.3 million, and diluted earnings per share rose to $2.97 from 75 cents a year ago.
The retailer estimated sales in the current quarter to rise by a low double-digit percentage and increase between 4% and 6% in the fiscal year.
Movers: Abercrombie & Fitch, Box, CrowdStrike, Foot Locker, Nordstrom
Scott Peters
06 Mar, 2024
New York City
Nordstrom plunged 9.2% to $18.87 after the department store chain reported better-than-expected results in the fiscal fourth quarter, but the company's 2024 guidance for the current year fell short of market expectations.
CrowdStrike Holdings soared 22.5% to $364.59 after the cyber security company reported better-than-expected quarterly results.
Box jumped 4.6% to $28.50 after the cloud storage company reported revenue in-line with analysts' estimates.
Foot Locker dropped 11.1% to $30.50 after the athletic footwear retailer reported a loss in its latest quarter and the company guided weaker-than-expected sales in the current year.
Abercrombie & Fitch declined 2% to $137.01 despite the apparel retailer reporting better-than-expected sales in the holiday quarter and the company's positive outlook for the current year.
Sales in the quarter ending on January 28 increased 21% to $1.45 billion from $1.2 billion, net income advanced to $158.4 million from $38.3 million, and diluted earnings per share rose to $2.97 from 75 cents a year ago.
The retailer estimated sales in the current quarter to rise by a low double-digit percentage and increase between 4% and 6% in the fiscal year.
Europe Movers: DS Smith, Deutsche Post, Legal & General, Symrise, Tullow Oil
Inga Muller
06 Mar, 2024
Frankfurt
European markets struggled to advance ahead of the European Central Bank's rate decisions, inflation, and growth outlook.
Eurozone annual retail sales in January declined for the sixteenth month in a row, and Germany's trade surplus rose to a record January high after exports rose and imports declined.
The DAX index increased by 0.2% to 17,744.54, the CAC-40 index rose by 0.3% to 7,955.50, and the FTSE 100 index inched higher by 0.3% to 7,668.28.
The yield on 10-year German bonds edged down to 2.35%; French bonds inched lower to 2.81%; the UK gilts edged lower to 4.05%; and Italian bonds inched lower to 3.72%.
Legal & General Group declined 2.2% to 239.91 pence after the UK-based insurance company reported flat operating profit in 2023.
DS Smith increased 0.5% to 321.90 pence after the paperboard and packaging company reported better-than-expected fiscal third quarter profit and the company estimated a positive outlook in the current quarter.
Deutsche Post declined 5.8% to €39.27 after the parent company of DHL cautioned flat annual earnings in the current fiscal year.
Symrise advanced 4.9% to €100.90 after the German flavor and fragrance company reported a better-than-expected core annual profit in 2023.
Tullow Oil fell 0.5% to 28.11 pence after the independent energy company reported a decline in pre-tax profit on lower crude oil prices and impairment charges.
Total revenue in 2023 declined to $1.6 billion from $1.8 billion, net income from continuing activities swung to a loss of $110 million from a profit of $49 million, and basic earnings per share were 7.6 cents a loss compared to 3.4 cents a profit a year ago.
Energy production in the quarter increased to 55,754 from 55,170, but the realized oil price fell to $77.50 from $88.0 a year ago.
Eurozone Retail Sales Extends Fall to Sixteenth Month, German Trade Surplus Jumps to Record January High
Bridgette Randall
06 Mar, 2024
Frankfurt
Stock market indexes in Europe edged higher, and investors reviewed the latest economic updates and awaited the release of the UK's general budget.
Benchmark indexes in Frankfurt, Paris, and London inched higher ahead of the European Central Bank's rate decisions on Thursday.
Eurozone Retail Sales Barely Advanced in January
Retail sales in the eurozone increased by 0.1% in January from the previous month, following a revised 0.6% contraction in December, Eurostat reported Wednesday.
Retail sales adjusted for the calendar decreased 1.0% from a year ago, and fell for the sixteenth month in a row.
Volume of food, drinks, and tobacco from a year ago declined by 0.6%, automotive fuel increased by 0.8%, and nonfood products declined by 1.4%.
German Trade Surplus Expands to Record High In January
German exports rose faster than imports, driving the trade surplus to a record high in January, indicating a strong demand for German goods.
Exports rose 6.3% monthly and edged up 0.3% annually to €135.6 billion, and imports rose 3.6% monthly but dropped 8.3% annually to €108 billion.
Most German exports were shipped to the U.S., followed by transactions with the People's Republic of China and the U.K.
Exports to the U.S. decreased 1.7% monthly to 12.5 billion, to China increased 7.8% to 8.1 billion, and to the U.K. decreased 8.1% to 6.8 billion.
Meanwhile, most imports arrived from China, followed by shipments from the U.S. and the U.K.
Imports from China decreased 11.1% to €10.4 billion, from the U.S. fell 5.2% to €7.8 billion, and from the U.K. increased 18.4% to €3.1 billion.
Calendar and seasonally adjusted goods exports to the European Union member states increased 8.9% to €75.8 billion, and imports rose 10.8% to €61.2 billion.
The goods trade surplus in January widened to €27.5 billion from €23.3 billion in December and €16.9 billion a year ago.
Europe Indexes and Yields
The DAX index increased by 0.2% to 17,744.54, the CAC-40 index rose by 0.3% to 7,955.50, and the FTSE 100 index inched higher by 0.3% to 7,668.28.
The yield on 10-year German bonds edged down to 2.35%; French bonds inched lower to 2.81%; the UK gilts edged lower to 4.05%; and Italian bonds inched lower to 3.72%.
The euro edged higher to $1.087, the British pound inched higher to $1.272, and the U.S. dollar weakened to 88.45 Swiss cents.
Brent crude increased $0.45 to $82.50 a barrel, and the Dutch TTF natural gas increased by €0.92 to €28.39 per MWh.
Europe Stock Movers
Legal & General Group declined 2.2% to 239.91 pence after the UK-based insurance company reported flat operating profit in 2023.
DS Smith increased 0.5% to 321.90 pence after the paperboard and packaging company reported better-than-expected fiscal third quarter profit and the company estimated a positive outlook in the current quarter.
Deutsche Post declined 5.8% to €39.27 after the parent company of DHL cautioned against flat annual earnings in the current fiscal year.
Symrise advanced 4.9% to €100.90 after the German flavor and fragrance company reported a better-than-expected core annual profit in 2023.
Tullow Oil fell 0.5% to 28.11 pence after the independent energy company reported a decline in pre-tax profit on lower crude oil prices and impairment charges.
Total revenue in 2023 declined to $1.6 billion from $1.8 billion, net income from continuing activities swung to a loss of $110 million from a profit of $49 million, and basic earnings per share were 7.6 cents a loss compared to 3.4 cents a profit a year ago.
Energy production in the quarter increased to 55,754 from 55,170, but the realized oil price fell to $77.50 from $88.0 a year ago.
China Policymakers Struggle with Growth Initiatives, Australian Economy Barely Expanded In December Quarter
Arjun Pandit
05 Mar, 2024
Mumbai
Stock markets in Asia moderately declined amid a lack of economic news, and investors focused on China's annual gathering of lawmakers.
Elsewhere in the region, Australia's economy expanded 0.2% in the fourth quarter from the previous quarter, its ninth quarterly expansion in a row, the Australian Bureau of Statistics reported Wednesday.
Australia's economy expanded at an annual pace of 1.5% in the fourth quarter, the slowest pace of growth in three years.
For all of 2023, Australia clocked a 1.5% increase, largely driven by a rise in net exports, and consumer spending barely rose 0.1%.
When counting the rising population in Australia, GDP per person actually shrank 1.0% in 2023.
Japan Indexes Hold Steady Near Record Highs
Stocks in Japan lacked direction following the weakness in New York in overnight trading.
Tech stocks struggled for the second day in a row but traded near record highs as investors increased allocations to semiconductor-related companies that are likely to benefit from the boom in artificial intelligence applications.
The Nikkei 225 Stock Average held steady at 40,098.24, and the Topix index gained 0.4% to 2,730.81.
Tokyo Electron, Disco Corp., Screen Holdings, SoftBank, and Renesas Electronics decreased between 1% and 2%.
Fast Retailing declined 0.7%, but Isetan Mitsukoshi advanced 2.9%.
Among large banks, Mizuho Financial and Sumitomo Mitsui Financial advanced more than 1%, while Mitsubishi UFJ Financial added 0.5%.
China Stocks Struggle as Lawmakers Discuss Broader Issues
Stocks in Shanghai advanced in cautious trading as investors held out for more targeted financial and property market reforms.
However, market indexes in Hong Kong rebounded on speculation that the latest property reforms in the city are enough to revive the moribund local property market and rising interest from mainland buyers.
Investors are more focused on corporate earnings than the big-picture discussions by policymakers during the 7-day gathering of the rubber-stamp parliament and Chinese leaders.
Investors are generally disappointed with the lack of specific stimulus measures at the annual parliamentary meeting, arbitrary implementation at local levels, and rising debt levels at the central and local levels.
Foreign investors are still lowering their allocation to Chinese stocks on the grounds of inconsistent economic reforms, a lack of earnings visibility, and expanded anti-espionage and anti-national security laws that could endanger intellectual property.
Despite the gains in today's trading, the benchmark index in Hong Kong is the worst-performing market among the largest ten financial markets in the world.
The CSI 300 index edged up a fraction to 3,568.20, and the Hang Seng index rebounded 2.3% to 16,539.01.
Tech stocks advanced in Hong Kong ahead of JD.com's financial results in the hopes that the e-commerce company is set to announce earnings gains of at least 50% later today.
Alibaba.com Group, Tencent, Meituan, and Baidu.com gained between 2% and 4%.
Banks also participated in the rally, and HSBC and China Merchants Bank gained 2% and 4%, respectively.
India Indexes Struggle to Advance Amid Valuation Worries and Higher Interest Rates
Stocks in Mumbai faced selling pressure, and valuation worries kept investors on the sidelines for the second week in a row.
The Sensex and the Nifty indexes traded down amid moderate weakness in Asian markets and a lower closing in the U.S. for the second day in a row.
Stocks in Mumbai are facing headwinds, and benchmark indexes are up about 2% in the year so far, lagging behind gains in Japan, the U.S., Germany, and France.
Moreover, international rate jitters also compounded market anxieties ahead of the European Central Bank's rate decision on Thursday.
The central bank is widely expected to hold its interest rates steady, but it may provide clues to future rate paths.
International investors are struggling to increase their exposure to Indian stocks as higher interest rates in the U.S. and Europe provide tough comparisons, and earnings results in India have lagged market expectations.
At the same time, stocks in India and Japan have benefited from foreign investors switching their investments from China following the protracted decline in the property market and the weaker-than-expected rebound in China's economy after the ending of zero COVID restrictions.
The Sensex index decreased 0.2% to 73,551.08, and the Nifty index fell 0.3% to 22,294.60.
On the Mumbai stock exchange, 75 stocks traded at their 52-week highs and 34 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 ₹82.85 against the U.S. dollar.
India Movers: Aavas Financiers, Bharti Airtel, IRCTC, JM Financial, Mahanagar Gas, NHPC, Wipro, Zomato
Arun Goswami
05 Mar, 2024
Mumbai
Stocks in Mumbai edged lower following the weakness in Asian markets tracking the U.S. market decline in overnight trading.
The Sensex index decreased 0.2% to 73,551.08, and the Nifty index fell 0.3% to 22,294.60.
On the Mumbai stock exchange, 75 stocks traded at their 52-week highs and 34 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 ₹82.85 against the U.S. dollar.
JM Financial decreased 2.0% to ₹95.50 after the Reserve Bank of India barred the financial broker from providing loans against various financial securities.
Aavas Financiers increased 1.3% to ₹1,375.95 after Singapore-based Amansa Capital and funds controlled by SBI acquired a stake in the company worth ₹1,186 crore.
Wipro declined 1.5% to ₹512.95, and the tech services outsourcing company is set to acquire a 27% stake in software-driven vehicle and cloud-based engineering service provider SDVerse LLC by the end of March.
Mahanagar Gas rose 1.4% to ₹1,563.70, and the natural gas distribution company announced a price reduction of ₹2.50 per kilo for compressed natural gas in the metropolitan Mumbai region.
Bharti Artel advanced 3.2% to ₹1,169.0 after the company approved the transfer of 56.8 lakh to foreign currency convertible bonds, or FCCB holders, at a price of ₹518 per share.
IRCTC declined 0.3% to ₹935.50, and the catering company partnered with an online food ordering and delivery company to deliver pre-ordered meals at four railway stations.
Zomato decreased 2.1% to ₹164.40 after the China-based Alibaba Group's affiliate Antfin Singapore is set to sell a 2% stake in the company in a block deal, according to a report by CNBC TV18.
Antfin is looking to sell 17.65 crore shares in the online food ordering and delivery company with a floor price of 159.40 per share, a 3.5% discount to the last closing price on Tuesday.
NHPC increased 1.8% to ₹94.10 after the company launched a solar power plant project in Jalaun, Uttar Pradesh, with an investment of ₹796.9 crore.
World Markets Pause Amid Growing Valuation Worries
Barry Adams
05 Mar, 2024
New York City
Stocks turned lower, and volatile tech stocks faced resistance after surging in previous weeks on valuation worries ahead of the release of non-farm payroll and JOLT reports.
The S&P 500 index and the Nasdaq Composite eased, extending losses in the previous session.
Investors debated the future direction of interest rates amid moderating but tight labor market conditions and better-than-expected earnings despite multiple rate hikes over the last eighteen months.
Market participants have generally bid up high-growth tech stocks linked to the expected boom in artificial intelligence applications across the economy.
Energy stocks were also in focus after crude oil prices traded volatile because of the elevated tensions in the Middle East and rising Houthi rebel activities in the Red Sea.
Moreover, drought conditions in Panama have slowed down the passage of container ships from Asia to the U.S. East Coast, as the canal operator has restricted the flow of daily vessels by half.
U.S. Factory Orders Decline Accelerated
New orders for manufactured goods in January, down three of the last four months, decreased $21.5 billion or 3.6% to $569.7 billion, the U.S. Census Bureau reported today.
This followed a 0.3% decline in December.
The monthly decline was the largest since April 2020, driven by 16.2% fall in transportation orders, and orders excluding transportation orders decreased 0.8%.
U.S. Indexes and Yields
The S&P 500 index decreased 0.9% to 5,085.84, and the Nasdaq Composite decreased 1.5% to 15,963.81.
The yield on 2-year Treasury notes increased to 4.58%, 10-year Treasury notes inched down to 4.17%, and 30-year Treasury bonds edged down to 4.31%.
WTI crude oil decreased $0.39 to $78.33 a barrel, and natural gas prices decreased 1 cent to $1.91 a thermal unit.
Gold increased by $15.27 to $2,130.27 an ounce, and silver fell 11 cents to $23.76.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 103.88.
U.S. Stock Movers
Apple decreased 2.2% to $171.25 after a research report from Counter Point estimated the company's iPhone sales in China dropped as much as 24% in the first six weeks of 2024, facing tougher competition from Huawei.
Target Corp. soared 8.2% to $162.99 after the retailer reported better-than-expected holiday-quarter sales and earnings.
Revenue in the fiscal fourth quarter ending on February 3 rose to $31.9 billion from $31.4 billion, net income soared 58% to $1.38 billion from $0.87 billion, and diluted earnings per share advanced to $2.98 from $1.89 a year ago.
Operating margin in the quarter improved to 5.8% from 3.7% a year ago after consumers returned to buy higher-margin items like apparel and beauty products.
For the first quarter of 2024, the company expects comparable sales to fall between 3% and 5%, and first quarter GAAP and adjusted EPS are both expected to range from $1.70 to $2.10.
For the full year, the company expects a modest increase in comparable sales in a range from flat to 2%, and GAAP EPS and adjusted EPS are both expected to range from $8.60 to $9.60.
GitLab plunged 23.8% to $56.75 after the database developer estimated weaker-than-expected sales in the current year.
AMD decreased 1.9% to $201.55 after a Bloomberg News report suggested that the company's sales in China hit the U.S. regulatory hurdles that will prevent the company from selling advanced semiconductors to process artificial intelligence applications.
European Markets On Hold Ahead of Rate Decisions
European markets headed lower ahead of the European Central Bank's interest rate decision on Thursday and the UK's general budget on Wednesday.
Benchmark indexes in Frankfurt, Paris, and London decreased on the ongoing rate path worries compounded by China's lack of stimulus measures to tackle the protracted downturn in the property market.
Spain's Private Sector Expanded Third Consecutive Month
Spain's private sector showed notable expansion for the third month in a row in February, according to the latest survey released by S&P Global.
The HCOB Spain PMI increased to 53.9 in February from 51.5 in the previous month, after the service sector expanded at the fastest pace in nine months and the manufacturing sector rebounded.
Rising operating costs forced businesses to pass on the largest increase in prices to their customers.
France's Industrial Output Eased in January
France's industrial production declined from the previous month but rose from a year ago in January, the statistical agency INSEE reported Tuesday.
Industrial production decreased 1.1% monthly and increased 0.8% from the previous year after manufacturing output declined 1.6% compared to a rise of 0.5%, construction activity growth slowed to 0.3% from 1.8%, and mining and quarrying rebounded to 1.6% from the decline of 0.3% in the previous month, respectively.
On a yearly basis, industrial output rose 0.8% after rising 0.9% in December.
China's Economic Measures Fall Short of Expectations
The Chinese government set 2024 economic growth, inflation, and unemployment targets that are likely to push the country's already high den to new record levels.
The second-largest economy in the world is aiming to expand its economy by "around 5%," retail inflation at 3%, and create 12 million urban jobs to keep urban unemployment level at 5.5%.
The Chinese government has little room to provide financial stimulus and fund wasteful infrastructure projects as the country's official debt-to-GDP ratio hovers at 286%, the largest among the top 20 economies in the world.
The government is also planning to sell special Treasury bonds to raise one trillion yuan, or $139 billion.
Chinese policymakers are struggling to balance economic growth above 5% with weak productivity growth and a shrinking and aging labor force.
The government's plan failed to quell investor anxieties, and investors resumed selling in Hong Kong.
Europe Indexes and Yields
The DAX index decreased by 0.2% to 17,698.40, the CAC-40 index fell 0.3% to 7,932.82, and the FTSE 100 index inched higher by 0.1% to 7,646.16.
The yield on 10-year German bonds edged down to 2.38%; French bonds inched lower to 2.84%; the UK gilts edged lower to 4.08%; and Italian bonds inched lower to 3.77%.
The euro edged higher to $1.085, the British pound inched higher to $1.268, and the U.S. dollar weakened to 88.60 Swiss cents.
Brent crude decreased $0.54 to $82.32 a barrel, and the Dutch TTF natural gas increased by €0.57 to €27.47 per MWh.
Europe Stock Movers
Energy explorer Shell, BP. Repsol, and TotalEnergies traded volatile after crude oil extended losses for the second day in a row despite OPEC+ nations extending voluntary production quotas to June.
The two-month-long crude oil price rally has stalled on the lack of demand growth from China and the steady supply growth in the U.S.
Thales SA increased 8.2% to €149.70 after the defense electronics maker increased its dividend and estimated organic sales growth between 4% and 6%.
Ashtead Group declined 5.5% to 5,412.0 pence after the power equipment rental company narrowed its full-year growth outlook, citing weak demand in North America.
Spirent Communication soared 59% to 172.64 pence after the UK-based telecom company agreed to be acquired by telecom equipment company Vivavi Solutions for £1.01 billion.
Bayer AG decreased 1.7% to €27.77 after the biotechnology and pharmaceutical company reported a decline in sales in the fourth quarter.
Schaeffler AG declined 3.75 to €6.32 after the precision bearing product maker reported lower fiscal year earnings.
Net earnings attributable to shareholders in 2023 decreased to €310 million from €557 million a year ago.
Inchcape plc dropped 11.1% to 605.50 pence after the vehicle distribution company estimated moderate revenue growth in the current fiscal year.
Lindt & Spruengli dropped 1.8% to CHF 105,800.0 after the Swiss chocolate maker reported higher profit despite cost headwinds in fiscal year 2023.
Greggs plc jumped 3.9% to 2,817.91 pence after the UK-based bakery chain reported a 13% increase in its annual profit in 2023.
Asian Stock and Commodities Markets Turn Lower After China Disappointments
Stock market sentiment in Asia was mixed as investors remained cautious after China set economic targets and failed to provide specific measures to tackle the protracted property market slump.
Market indexes in Japan eased following the weakness in New York, and indexes in India declined on valuation worries.
Nikkei 225 In Tokyo Edged Lower
Market indexes in Japan edged lower following the weakness in tech stocks in overnight trading in New York.
In domestic economic news, the Tokyo area's core inflation rate rose to 2.5% in February from 1.8% in the previous month, crossing above the target rate of 2% set by the Bank of Japan.
Also, Japan's service purchasing managers' index was revised higher to 52.9 in February from 52.6 in January, a four-month low, S&P Global reported Tuesday.
The Nikkei 225 Stock Average fell 0.06% to 40,083.37, and the Topix index rose 0.5% to 2,719.07.
Stock market sentiment remained positive in the hopes of a stronger-than-expected rebound in corporate earnings in the March quarter because of the economic strength in the U.S. and the sharply lower yen in the year.
SoftBank, Advantest, Tokyo Electron, and Disco declined between 1.2% and 1.7%.
Leading conglomerates, also known as Sogo Shosha, Marubeni, Sumitomo, Mitsubishi, Mitsui, and Itochu, gained between 0.3% and 1.6%.
China's Economic Measures Fall Short of Expectations
The Chinese government set 2024 economic growth, inflation, and unemployment targets that are likely to push the country's already high den to new record levels.
The second-largest economy in the world is aiming to expand its economy by "around 5%," retail inflation at 3%, and create 12 million urban jobs to keep urban unemployment level at 5.5%.
The Chinese government has little room to provide financial stimulus and fund wasteful infrastructure projects as the country's official debt-to-GDP ratio hovers at 286%, the largest among the top 20 economies in the world.
The government is also planning to sell special Treasury bonds to raise one trillion yuan, or $139 billion.
Chinese policymakers are struggling to balance economic growth above 5% with weak productivity growth and a shrinking and aging labor force.
The government's plan failed to quell investor anxieties, and investors resumed selling in Hong Kong.
The CSI index increased 0.4% to 3,556.97, and the Hang Seng index dropped 2.5% to 16,189.27.
Moreover, foreign investors are still lowering their holdings in China, and foreign direct investment has plunged by 90% over the last two years after tensions between the nation and the U.S. rose.
Tech stocks led the decliners, with Alibaba Group, JD.com, Tencent, and Baidu declining between 2% and 4%.
Chinese property developers plunged after a lack of specific measures to revise the protracted slump in the property market.
China Resources Land, China Vanke, Henderson Land, and Longfor Group dropped between 2% and 6%.
India Stocks Trend Lower
Stocks in Mumbai traded sideways as investors looked abroad in the absence of domestic economic news.
The Sensex and the Nifty indexes traded down in early trading amid weak global sentiment, and market indexes in the U.S., Japan, India, Germany, and France traded near record highs.
Crude oil continued to advance as Houthi rebels stepped up attacks in the Red Sea, with no end in sight of the conflict between Israel and Palestine.
Precious metals, such as gold and silver, edged higher after investors bid up prices in the hopes of a rate cut in the U.S. and the Euro Area and rising demand from China and India.
Closer to home, market sentiment remained positive after India's economic growth accelerated in the December quarter, driven in part by sustained infrastructure spending by the government.
Moreover, foreign investors are still lowering their holdings in China, and foreign direct investment has plunged by 90% over the last two years after tensions between the nation and the U.S. rose.
The Sensex index decreased 0.2% to 73,730.21, and the Nifty index fell 0.1% to 22,373.35.
On the Mumbai stock exchange, 116 stocks traded at their 52-week highs and 25 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds increased to 7.06%, and the Indian rupee strengthened to ₹82.91 against the U.S. dollar.
U.S. Movers: AMD, Apple, GitLab, Target
Scott Peters
05 Mar, 2024
New York City
Apple decreased 2.2% to $171.25 after a research report from Counter Point estimated the company's iPhone sales in China dropped as much as 24% in the first six weeks of 2024, facing tougher competition from Huawei.
Target Corp. soared 8.2% to $162.99 after the retailer reported better-than-expected holiday-quarter sales and earnings.
Revenue in the fiscal fourth quarter ending on February 3 rose to $31.9 billion from $31.4 billion, net income soared 58% to $1.38 billion from $0.87 billion, and diluted earnings per share advanced to $2.98 from $1.89 a year ago.
Operating margin in the quarter improved to 5.8% from 3.7% a year ago after consumers returned to buy higher-margin items like apparel and beauty products.
For the first quarter of 2024, the company expects comparable sales to fall between 3% and 5%, and first quarter GAAP and adjusted EPS are both expected to range from $1.70 to $2.10.
For the full year, the company expects a modest increase in comparable sales in a range from flat to 2%, and GAAP EPS and adjusted EPS are both expected to range from $8.60 to $9.60.
GitLab plunged 23.8% to $56.75 after the database developer estimated weaker-than-expected sales in the current year.
AMD decreased 1.9% to $201.55 after a Bloomberg News report suggested that the company's sales in China hit the U.S. regulatory hurdles that will prevent the company from selling advanced semiconductors to process artificial intelligence applications.
U.S. Stocks On Hold Ahead of Two Critical Job Reports
Barry Adams
05 Mar, 2024
New York City
Stocks in early trading meandered, and investors took a wait-and-see approach ahead of the release of non-farm payrolls and JOLT reports.
The S&P 500 index decreased 0.2% and the Nasdaq Composite eased 0.3%, extending losses in the previous session.
Investors debated the future direction of interest rates amid moderating but tight labor market conditions and better-than-expected earnings despite multiple rate hikes over the last eighteen months.
Market participants have generally bid up high-growth tech stocks linked to the expected boom in artificial intelligence applications across the economy.
Energy stocks were also in focus after crude oil prices traded volatile because of the elevated tensions in the Middle East and rising Houthi rebel activities in the Red Sea.
Moreover, drought conditions in Panama have slowed down the passage of container ships from Asia to the U.S. East Coast, as the canal operator has restricted the flow of daily vessels by half.
U.S. Indexes and Yields
The S&P 500 index decreased 0.2% to 5,123.76, and the Nasdaq Composite decreased 0.4% to 16,156.63.
The yield on 2-year Treasury notes increased to 4.58%, 10-year Treasury notes inched down to 4.17%, and 30-year Treasury bonds edged down to 4.31%.
WTI crude oil decreased $0.79 to $77.75 a barrel, and natural gas prices decreased 2 cents to $1.89 a thermal unit.
Gold increased by $11.26 to $2,126.22 an ounce, and silver rose 14 cents to $24.02.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 103.88.
U.S. Stock Movers
Apple decreased 2.2% to $171.25 after a research report from Counter Point estimated the company's iPhone sales in China dropped as much as 24% in the first six weeks of 2024, facing tougher competition from Huawei.
Target Corp. soared 8.2% to $162.99 after the retailer reported better-than-expected holiday-quarter sales and earnings.
Revenue in the fiscal fourth quarter ending on February 3 rose to $31.9 billion from $31.4 billion, net income soared 58% to $1.38 billion from $0.87 billion, and diluted earnings per share advanced to $2.98 from $1.89 a year ago.
Operating margin in the quarter improved to 5.8% from 3.7% a year ago after consumers returned to buy higher-margin items like apparel and beauty products.
For the first quarter of 2024, the company expects comparable sales to fall between 3% and 5%, and first quarter GAAP and adjusted EPS are both expected to range from $1.70 to $2.10.
For the full year, the company expects a modest increase in comparable sales in a range from flat to 2%, and GAAP EPS and adjusted EPS are both expected to range from $8.60 to $9.60.
GitLab plunged 23.8% to $56.75 after the database developer estimated weaker-than-expected sales in the current year.
AMD decreased 1.9% to $201.55 after a Bloomberg News report suggested that the company's sales in China hit the U.S. regulatory hurdles that will prevent the company from selling advanced semiconductors to process artificial intelligence applications.
Europe Movers: Ashtead, BP, Bayer, Greggs, Spruengli, Schaeffler, Spirent, Thales
Inga Muller
05 Mar, 2024
Frankfurt
European markets were on hold ahead of the European Central Bank's rate decision on Thursday and the U.K.'s general budget on Wednesday.
The DAX index decreased by 0.2% to 17,683.01, the CAC-40 index fell 0.2% to 7,945.10, and the FTSE 100 index inched lower by 0.1% to 7,629.88.
The yield on 10-year German bonds edged down to 2.38%; French bonds inched lower to 2.84%; the UK gilts edged lower to 4.08%; and Italian bonds inched lower to 3.77%.
Energy explorer Shell, BP. Repsol, and TotalEnergies traded volatile after crude oil extended losses for the second day in a row despite OPEC+ nations extending voluntary production quotas to June.
The two-month-long crude oil price rally has stalled on the lack of demand growth from China and the steady supply growth in the U.S.
Thales SA increased 8.2% to €149.70 after the defense electronics maker increased its dividend and estimated organic sales growth between 4% and 6%.
Ashtead Group declined 5.5% to 5,412.0 pence after the power equipment rental company narrowed its full-year growth outlook, citing weak demand in North America.
Spirent Communication soared 59% to 172.64 pence after the UK-based telecom company agreed to be acquired by telecom equipment company Vivavi Solutions for £1.01 billion.
Bayer AG decreased 1.7% to €27.77 after the biotechnology and pharmaceutical company reported a decline in sales in the fourth quarter.
Schaeffler AG declined 3.75 to €6.32 after the precision bearing product maker reported lower fiscal year earnings.
Net earnings attributable to shareholders in 2023 decreased to €310 million from €557 million a year ago.
Inchcape plc dropped 11.1% to 605.50 pence after the vehicle distribution company estimated moderate revenue growth in the current fiscal year.
Lindt & Spruengli dropped 1.8% to CHF 105,800.0 after the Swiss chocolate maker reported higher profit despite cost headwinds in fiscal year 2023.
Sales in 2023 increased 4.6% to CHF 5.2 billion from CHF 4.97 billion, and net income advanced 17.9% to CHF 671.4 million from CHF 569.7 million.
The company hiked dividend per share by 7.7% to CHF 1,400 from CHF 1,300 a year ago.
Greggs plc jumped 3.9% to 2,817.91 pence after the UK-based bakery chain reported a 13% increase in its annual profit in 2023.
2023 total sales increased to £1.8 billion from £1.5 billion, and diluted earnings per share rose to 139.2 pence from 117.5 pence.
The company declared a regular dividend of 62 pence and a special dividend of 40 pence per share.
France's Industrial Output Eased, Spain's Private Sector Expanded Third Consecutive Month
Bridgette Randall
05 Mar, 2024
Frankfurt
European markets headed lower ahead of the European Central Bank's interest rate decision on Thursday and the UK's general budget on Wednesday.
Benchmark indexes in Frankfurt, Paris, and London decreased on the ongoing rate path worries compounded by China's lack of stimulus measures to tackle the protracted downturn in the property market.
Spain's Private Sector Expanded Third Consecutive Month
Spain's private sector showed notable expansion for the third month in a row in February, according to the latest survey released by S&P Global.
The HCOB Spain PMI increased to 53.9 in February from 51.5 in the previous month, after the service sector expanded at the fastest pace in nine months and the manufacturing sector rebounded.
Rising operating costs forced businesses to pass on the largest increase in prices to their customers.
France's Industrial Output Eased in January
France's industrial production declined from the previous month but rose from a year ago in January, the statistical agency INSEE reported Tuesday.
Industrial production decreased 1.1% monthly and increased 0.8% from the previous year after manufacturing output declined 1.6% compared to a rise of 0.5%, construction activity growth slowed to 0.3% from 1.8%, and mining and quarrying rebounded to 1.6% from the decline of 0.3% in the previous month, respectively.
On a yearly basis, industrial output rose 0.8% after rising 0.9% in December.
China's Economic Measures Fall Short of Expectations
The Chinese government set 2024 economic growth, inflation, and unemployment targets that are likely to push the country's already high den to new record levels.
The second-largest economy in the world is aiming to expand its economy by "around 5%," retail inflation at 3%, and create 12 million urban jobs to keep urban unemployment level at 5.5%.
The Chinese government has little room to provide financial stimulus and fund wasteful infrastructure projects as the country's official debt-to-GDP ratio hovers at 286%, the largest among the top 20 economies in the world.
The government is also planning to sell special Treasury bonds to raise one trillion yuan, or $139 billion.
Chinese policymakers are struggling to balance economic growth above 5% with weak productivity growth and a shrinking and aging labor force.
The government's plan failed to quell investor anxieties, and investors resumed selling in Hong Kong.
Europe Indexes and Yields
The DAX index decreased by 0.2% to 17,683.01, the CAC-40 index fell 0.2% to 7,945.10, and the FTSE 100 index inched lower by 0.1% to 7,629.88.
The yield on 10-year German bonds edged down to 2.38%; French bonds inched lower to 2.84%; the UK gilts edged lower to 4.08%; and Italian bonds inched lower to 3.77%.
The euro edged higher to $1.085, the British pound inched higher to $1.268, and the U.S. dollar weakened to 88.60 Swiss cents.
Brent crude decreased $0.12 to $82.92 a barrel, and the Dutch TTF natural gas increased by €1.47 to €28.35 per MWh.
Europe Stock Movers
Energy explorer Shell, BP. Repsol, and TotalEnergies traded volatile after crude oil extended losses for the second day in a row despite OPEC+ nations extending voluntary production quotas to June.
The two-month-long crude oil price rally has stalled on the lack of demand growth from China and the steady supply growth in the U.S.
Thales SA increased 8.2% to €149.70 after the defense electronics maker increased its dividend and estimated organic sales growth between 4% and 6%.
Ashtead Group declined 5.5% to 5,412.0 pence after the power equipment rental company narrowed its full-year growth outlook, citing weak demand in North America.
Spirent Communication soared 59% to 172.64 pence after the UK-based telecom company agreed to be acquired by telecom equipment company Vivavi Solutions for £1.01 billion.
Bayer AG decreased 1.7% to €27.77 after the biotechnology and pharmaceutical company reported a decline in sales in the fourth quarter.
Schaeffler AG declined 3.75 to €6.32 after the precision bearing product maker reported lower fiscal year earnings.
Net earnings attributable to shareholders in 2023 decreased to €310 million from €557 million a year ago.
Inchcape plc dropped 11.1% to 605.50 pence after the vehicle distribution company estimated moderate revenue growth in the current fiscal year.
Lindt & Spruengli dropped 1.8% to CHF 105,800.0 after the Swiss chocolate maker reported higher profit despite cost headwinds in fiscal year 2023.
Greggs plc jumped 3.9% to 2,817.91 pence after the UK-based bakery chain reported a 13% increase in its annual profit in 2023.
China's Ambitious Economic Targets Fall Short of Expectations
Arjun Pandit
05 Mar, 2024
Mumbai
Stock market sentiment in Asia was mixed as investors remained cautious after China set economic targets and failed to provide specific measures to tackle the protracted property market slump.
Market indexes in Japan eased following the weakness in New York, and indexes in India declined on valuation worries.
Nikkei 225 In Tokyo Edged Lower
Market indexes in Japan edged lower following the weakness in tech stocks in overnight trading in New York.
In domestic economic news, the Tokyo area's core inflation rate rose to 2.5% in February from 1.8% in the previous month, crossing above the target rate of 2% set by the Bank of Japan.
Also, Japan's service purchasing managers' index was revised higher to 52.9 in February from 52.6 in January, a four-month low, S&P Global reported Tuesday.
The Nikkei 225 Stock Average fell 0.06% to 40,083.37, and the Topix index rose 0.5% to 2,719.07.
Stock market sentiment remained positive in the hopes of a stronger-than-expected rebound in corporate earnings in the March quarter because of the economic strength in the U.S. and the sharply lower yen in the year.
SoftBank, Advantest, Tokyo Electron, and Disco declined between 1.2% and 1.7%.
Leading conglomerates, also known as Sogo Shosha, Marubeni, Sumitomo, Mitsubishi, Mitsui, and Itochu, gained between 0.3% and 1.6%.
China's Economic Measures Fall Short of Expectations
The Chinese government set 2024 economic growth, inflation, and unemployment targets that are likely to push the country's already high den to new record levels.
The second-largest economy in the world is aiming to expand its economy by "around 5%," retail inflation at 3%, and create 12 million urban jobs to keep urban unemployment level at 5.5%.
The Chinese government has little room to provide financial stimulus and fund wasteful infrastructure projects as the country's official debt-to-GDP ratio hovers at 286%, the largest among the top 20 economies in the world.
The government is also planning to sell special Treasury bonds to raise one trillion yuan, or $139 billion.
Chinese policymakers are struggling to balance economic growth above 5% with weak productivity growth and a shrinking and aging labor force.
The government's plan failed to quell investor anxieties, and investors resumed selling in Hong Kong.
The CSI index increased 0.4% to 3,556.97, and the Hang Seng index dropped 2.5% to 16,189.27.
Moreover, foreign investors are still lowering their holdings in China, and foreign direct investment has plunged by 90% over the last two years after tensions between the nation and the U.S. rose.
Tech stocks led the decliners, with Alibaba Group, JD.com, Tencent, and Baidu declining between 2% and 4%.
Chinese property developers plunged after a lack of specific measures to revise the protracted slump in the property market.
China Resources Land, China Vanke, Henderson Land, and Longfor Group dropped between 2% and 6%.
India Stocks Trend Lower
Stocks in Mumbai traded sideways as investors looked abroad in the absence of domestic economic news.
The Sensex and the Nifty indexes traded down in early trading amid weak global sentiment, and market indexes in the U.S., Japan, India, Germany, and France traded near record highs.
Crude oil continued to advance as Houthi rebels stepped up attacks in the Red Sea, with no end in sight of the conflict between Israel and Palestine.
Precious metals, such as gold and silver, edged higher after investors bid up prices in the hopes of a rate cut in the U.S. and the Euro Area and rising demand from China and India.
Closer to home, market sentiment remained positive after India's economic growth accelerated in the December quarter, driven in part by sustained infrastructure spending by the government.
Moreover, foreign investors are still lowering their holdings in China, and foreign direct investment has plunged by 90% over the last two years after tensions between the nation and the U.S. rose.
The Sensex index decreased 0.2% to 73,730.21, and the Nifty index fell 0.1% to 22,373.35.
On the Mumbai stock exchange, 116 stocks traded at their 52-week highs and 25 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds increased to 7.06%, and the Indian rupee strengthened to ₹82.91 against the U.S. dollar.