Hang Seng Index Trades at One-Month High After China Investors Increase Exposure

Li Chen
12 Feb, 2025
Hong Kong

Stock market indexes in China and Hong Kong extended gains, and investors piled into leading technology companies. 

The Hang Seng index jumped nearly 2%, and the CSI 300 index advanced a fraction as mainland China investors increased their leading tech companies trading in Hong Kong. 

Alibaba Group, Tencent Holdings, Xiaomi Corp., and SMIC led the gainers in Hong Kong for the second week in a row amid persistent buying by mainland investors. 

Mainland institutional investors increased exposure to tech stocks trading in Hong Kong in the hopes that the affordable access to artificial intelligence will improve earnings growth in the near term.

Individual investors increased their exposure to stocks denominated in Hong Kong dollars amid worries of yuan devaluation.

Mainland-China-based funds purchased a total of HK $1.38 billion worth of stocks on Stock Connect through February 11, according to the latest data available from exchanges. 

China-based funds invested a total of HK $807.9 billion in 2024 in Hong Kong stock, a record high since the launch of the cross-border investing link in 2014. 

Wall Street indexes wavered around the flatline after Fed Chair Powell confirmed that inflation is slowing but remains above the long-term target rate. 

Market participants were cautiously optimistic after Chairman Powell confirmed that the U.S. economy is on solid footing and the labor market remains strong, and the central bank is in no hurry to lower rates in the near future. 

However, on Wall Street, benchmark indexes struggled to advance amid growing fears of a wider trade war sparked by the chaotic Trump administration and fears of resurgent inflation. 

Higher interest rates in the U.S. will keep rates higher in Hong Kong because of the currency's linked status with the U.S. dollar, which could negatively impact the housing market. 

China Indexes and Stocks

The Hang Seng index jumped 1.9% to 21,697.58, and the mainland-focused CSI 300 Index advanced 0.2% to 3,890.54. 

Alibaba Group Holding surged 7.4% to HK $112.60, Tencent Holdings Ltd. advanced 2.7% to HK $438.80, SMIC gained 4.5% to HK $47.30, and Xiaomi Corp. added 3.3% to HK $43.95.

Guming Holdings was nearly unchanged after the bubble tea maker listed its stock on the Hong Kong Exchange. 

Guming traded at HK $9.32 after the company sold 182 million shares priced at HK $9.94 per share and raised HK $1.72 billion or $220 million. 

The company operates 9,778 premium-tea stores in smaller cities in China. 

CATL Co. Ltd. increased 1.8% to ¥255.30 after the battery maker for electric vehicle filed to list its stock on the Hong Kong Exchange.  

Hang Seng Index Trades at One-Month High After China Investors Increase Exposu

Li Chen
12 Feb, 2025
Hong Kong

Stock market indexes in China and Hong Kong extended gains, and investors piled into leading technology companies. 

The Hang Seng index jumped nearly 2%, and the CSI 300 index advanced a fraction as mainland China investors increased their leading tech companies trading in Hong Kong. 

Alibaba Group, Tencent Holdings, Xiaomi Corp., and SMIC led the gainers in Hong Kong for the second week in a row amid persistent buying by mainland investors. 

Mainland institutional investors increased exposure to tech stocks trading in Hong Kong in the hopes that the affordable access to artificial intelligence will improve earnings growth in the near term.

Individual investors increased their exposure to stocks denominated in Hong Kong dollars amid worries of yuan devaluation.

Mainland-China-based funds purchased a total of HK $1.38 billion worth of stocks on Stock Connect through February 11, according to the latest data available from exchanges. 

China-based funds invested a total of HK $807.9 billion in 2024 in Hong Kong stock, a record high since the launch of the cross-border investing link in 2014. 

Wall Street indexes wavered around the flatline after Fed Chair Powell confirmed that inflation is slowing but remains above the long-term target rate. 

Market participants were cautiously optimistic after Chairman Powell confirmed that the U.S. economy is on solid footing and the labor market remains strong, and the central bank is in no hurry to lower rates in the near future. 

However, on Wall Street, benchmark indexes struggled to advance amid growing fears of a wider trade war sparked by the chaotic Trump administration and fears of resurgent inflation. 

Higher interest rates in the U.S. will keep rates higher in Hong Kong because of the currency's linked status with the U.S. dollar, which could negatively impact the housing market. 

China Indexes and Stocks

The Hang Seng index jumped 1.9% to 21,697.58, and the mainland-focused CSI 300 Index advanced 0.2% to 3,890.54. 

Alibaba Group Holding surged 7.4% to HK $112.60, Tencent Holdings Ltd. advanced 2.7% to HK $438.80, SMIC gained 4.5% to HK $47.30, and Xiaomi Corp. added 3.3% to HK $43.95.

India Movers: Berger Paints, Devyani International, Grasim Industries, Khadim Industries, IRCTC, NBCC India, P&G, Zee Media

Arun Goswami
12 Feb, 2025
Mumbai

Dalal Street indexes extended losses for the sixth consecutive session amid rising global trade tensions and worry of a resurgent inflation.

The Sensex index declined by 1.1% to 75,446.89, and the Nifty index decreased by 1.1% to 22,829.70.

On the Mumbai stock exchange, 15 stocks traded at their 52-week highs, and 590 stocks traded at their 52-week lows.

The yield on the 10-year Indian government bonds inched lower to 6.7%, and the Indian rupee hovered near a record low and traded at 86.55 against the U.S. dollar.

Indian Railway Catering and Tourism Corporation Ltd. plunged 2.9% to ₹729.55 despite the ticketing, catering, and tourism services provider reporting an increase in revenue and earnings.

Consolidated revenue increased to ₹1,281.2 crore from ₹1,161.1 crore, after-tax profit rose to ₹341.1 crore from ₹300 crore, and diluted earnings per share jumped to ₹4.26 from ₹3.75 a year ago.

The company's board declared a second interim dividend of ₹3 per share.

NBCC (India) Ltd. decreased 0.6% to ₹84.81 despite the real estate development company reporting a 7% increase in the fiscal third quarter ending in December.

Consolidated revenue increased to ₹2,882.2 crore from ₹2,482.4 crore, net income rose to ₹142.4 crore from ₹113.6 crore, and diluted earnings per share advanced to 51 paisa from 41 paisa a year ago.

The company declared an interim dividend of 53 paisa per share. 

Berger Paints India Ltd. increased 0.9% to ₹480, and the paint maker reported a 3% rise in revenue and a marginal decline in net income in the December quarter.

Consolidated revenue increased to ₹2,995.3 crore from ₹2,900.7 crore, after-tax profit fell to ₹295.97 crore from ₹300.16 crore, and diluted earnings per share decreased to ₹2.53 from ₹2.57 a year ago.

Grasim Industries Ltd. decreased 1.3% to ₹2,458.90, and the diversified company reported a slight increase in revenue and a 29% decline in profit in the December quarter.

Consolidated revenue increased to ₹35,161.8 crore from ₹32,222 crore, net income dropped to ₹1,844.3 crore from ₹2,603.4 crore, and diluted earnings per share fell to ₹13.47 from ₹22.99 a year ago.

Procter & Gamble Hygiene & Health Care dropped 1.3% to ₹13,750 despite the company reporting a 17% increase in the fiscal third quarter earnings ending in December.

Consolidated revenue increased to ₹1,246.3 crore from ₹1,149 crore, after-tax profit rose to ₹268 crore from ₹228.9 crore, and diluted earnings per share jumped to ₹82.74 from ₹70.51 a year ago.

The company declared an interim dividend for the financial year 2025 of ₹110 per share, payable on or before March 7.

Devyani International Ltd. fell 3.9% to ₹163.25 despite the food and beverage company reporting an increase in revenue and profit in the latest quarter. 

Consolidated revenue increased to ₹1,303.4 crore from ₹847.7 crore, net income jumped to ₹76.46 crore from ₹50.7 crore, and diluted earnings per share fell to 4 paisa from 15 paisa a year ago.

Khadim India Ltd. declined 7.2% to ₹302 after the footwear maker reported a slight increase in revenue and a 33% decline in profit in the December quarter.

Consolidated revenue increased to ₹164.6 crore from ₹157.9 crore, after-tax profit fell to ₹1.2 crore from ₹1.8 crore, and diluted earnings per share decreased to 63 paisa from ₹1.01 a year ago.

Zee Media Corporation Limited decreased 2% to ₹14.13, and the media company reported a 38% plunge in quarterly profit.

Consolidated revenue declined to ₹160.8 crore from ₹170.5 crore, net income decreased to ₹22.4 crore from ₹35.9 crore, and diluted earnings per share fell to 36 paisa from 57 paisa a year ago.

India Movers: Berger Paints, Devyani International, Grasim Industries, Khadim Industries, IRCTC, NBCC India, P&G, Zee Media

Arun Goswami
12 Feb, 2025
Mumbai

Dalal Street indexes extended losses for the sixth consecutive session amid rising global trade tensions and worry of a resurgent inflation.

The Sensex index declined by 1.1% to 75,446.89, and the Nifty index decreased by 1.1% to 22,829.70.

On the Mumbai stock exchange, 15 stocks traded at their 52-week highs, and 590 stocks traded at their 52-week lows.

The yield on the 10-year Indian government bonds inched lower to 6.7%, and the Indian rupee hovered near a record low and traded at 86.55 against the U.S. dollar.

Indian Railway Catering and Tourism Corporation Ltd. plunged 2.9% to ₹729.55 despite the ticketing, catering, and tourism services provider reporting an increase in revenue and earnings.

Consolidated revenue increased to ₹1,281.2 crore from ₹1,161.1 crore, after-tax profit rose to ₹341.1 crore from ₹300 crore, and diluted earnings per share jumped to ₹4.26 from ₹3.75 a year ago.

The company's board declared a second interim dividend of ₹3 per share.

NBCC (India) Ltd. decreased 0.6% to ₹84.81 despite the real estate development company reporting a 7% increase in the fiscal third quarter ending in December.

Consolidated revenue increased to ₹2,882.2 crore from ₹2,482.4 crore, net income rose to ₹142.4 crore from ₹113.6 crore, and diluted earnings per share advanced to 51 paisa from 41 paisa a year ago.

The company declared an interim dividend of 53 paisa per share. 

Berger Paints India Ltd. increased 0.9% to ₹480, and the paint maker reported a 3% rise in revenue and a marginal decline in net income in the December quarter.

Consolidated revenue increased to ₹2,995.3 crore from ₹2,900.7 crore, after-tax profit fell to ₹295.97 crore from ₹300.16 crore, and diluted earnings per share decreased to ₹2.53 from ₹2.57 a year ago.

Grasim Industries Ltd. decreased 1.3% to ₹2,458.90, and the diversified company reported a slight increase in revenue and a 29% decline in profit in the December quarter.

Consolidated revenue increased to ₹35,161.8 crore from ₹32,222 crore, net income dropped to ₹1,844.3 crore from ₹2,603.4 crore, and diluted earnings per share fell to ₹13.47 from ₹22.99 a year ago.

Procter & Gamble Hygiene & Health Care dropped 1.3% to ₹13,750 despite the company reporting a 17% increase in the fiscal third quarter earnings ending in December.

Consolidated revenue increased to ₹1,246.3 crore from ₹1,149 crore, after-tax profit rose to ₹268 crore from ₹228.9 crore, and diluted earnings per share jumped to ₹82.74 from ₹70.51 a year ago.

The company declared an interim dividend for the financial year 2025 of ₹110 per share, payable on or before March 7.

Devyani International Ltd. fell 3.9% to ₹163.25 despite the food and beverage company reporting an increase in revenue and profit in the latest quarter. 

Consolidated revenue increased to ₹1,303.4 crore from ₹847.7 crore, net income jumped to ₹76.46 crore from ₹50.7 crore, and diluted earnings per share fell to 4 paisa from 15 paisa a year ago.

Khadim India Ltd. declined 7.2% to ₹302 after the footwear maker reported a slight increase in revenue and a 33% decline in profit in the December quarter.

Consolidated revenue increased to ₹164.6 crore from ₹157.9 crore, after-tax profit fell to ₹1.2 crore from ₹1.8 crore, and diluted earnings per share decreased to 63 paisa from ₹1.01 a year ago.

Zee Media Corporation Limited decreased 2% to ₹14.13, and the media company reported a 38% plunge in quarterly profit.

Consolidated revenue declined to ₹160.8 crore from ₹170.5 crore, net income decreased to ₹22.4 crore from ₹35.9 crore, and diluted earnings per share fell to 36 paisa from 57 paisa a year ago.

Resurgent Inflation Worries Keep Lurking In Fed Chair Comments, Wall Street Indexes Remain Under Pressure

Alexander Garcia
11 Feb, 2025
Miami

Wall Street indexes wavered around the flatline after Fed Chair Powell confirmed that inflation is slowing but remains above the long-term target rate. 

Market participants were cautiously optimistic after Chairman Powell confirmed that the U.S. economy is on solid footing and the labor market remains strong, and the central bank is in no hurry to lower rates in the near future. 

However, on Wall Street, benchmark indexes struggled to advance amid growing fears of a wider trade war sparked by the chaotic Trump administration and fears of resurgent inflation. 

The S&P 500 index decreased 0.2%, and the Nasdaq Composite declined 0.6% after the latest salvo of Trump tariffs targeted steel and aluminum imports. 

Wall Street indexes traded down in the early hours amid growing worries that the chaotic and unpredictable Trump administration could launch a wider trade war, halting global economic growth and making the U.S. economy more vulnerable to recession.

The latest 25% tariffs on steel and aluminum product imports appear to be driven by motivation to force two neighbors, Canada and Mexico, to toe the White House's line and have little basis in trade economics or the need of the U.S. consumers.

The latest version of the announced tariff will cover steel and aluminum shipments from all countries, including key suppliers, Brazil, South Korea, China, Japan, and the European Union. 

The European Union said it plans to announce its retaliatory tariffs in the near future, and other countries are also looking for ways to impose their retaliatory measures.

European Union Commission President Ursula von der Leyen said in a statement released on Monday, “Unjustified tariffs on the EU will not go unanswered—they will trigger firm and proportionate countermeasures.”

The growing prospects of a wider trade war are also going to be on the minds of lawmakers as Federal Reserve Chairman Jerome Powell is scheduled to appear before the Senate Banking Committee later today and the House Financial Services Committee on Wednesday.

Fed Chair Powell's testimony will start at 10:00 a.m. for both appearances. 

The ever-widening set of tariffs and the expanding set of trade partners covered by higher trade barriers is certainly going to stoke inflation, making the Fed policymakers job harder. 

The Federal Reserve is likely to hold off on any imminent rate cuts in the near future until solid evidence emerges that inflation is still on a sustainable downward slide towards the 2% target rate.

U.S. Indexes and Treasury Yields

The S&P 500 index decreased 0.24% to 6,051.80, the Nasdaq Composite edged down 0.6% to 19,598.92, and the Russell 2000 index was down 0.5% to 2,276.74.

The yield on 2-year Treasury notes edged higher to 4.30%, 10-year Treasury notes increased to 4.54%, and 30-year Treasury bonds advanced to 4.75%.

WTI crude oil increased $1.14 to $73.46 a barrel, and natural gas prices edged higher by $0.08 to $3.53 a thermal unit.

Gold decreased by $20.09 to 2,897.44 an ounce, and silver edged down by $0.45 to $31.62.

The dollar index, which weighs the US currency against a basket of foreign currencies, decreased 0.12 to 108.21 and traded at a two-year high.

U.S. Stock Movers 

Vertex Pharmaceuticals Inc. dropped 0.4% to $467.98 after the biotech company posted lower income in the fourth quarter ending in December.

Astera Labs Inc. dropped 4.5% to $98.65 despite the provider of fabric switches for artificial intelligence products reporting strong fourth-quarter sales and profit growth.

Lattice Semiconductor Corp. surged 13.9% to $62.04 despite the maker of low-power field-programmable gate arrays reporting weak fourth-quarter results.

The stock jumped in trading because the company's revenues were ahead of some investors' estimates. 

Coca-Cola Company jumped 6.8% to $66.97 after the beverage maker's fourth quarter revenue and earnings surpassed market expectations, driven by higher prices and a slight increase in case volumes. 

European Markets Hover Near Record Highs Amid Earnings Optimism

Stock market indexes in Europe hovered near recent highs as investors focused on the latest batch of positive earnings. 

Benchmark indexes in Frankfurt, Paris, Milan, and London wavered around the flatline, and more than 50 companies reported earnings in the currency union. 

Investors reacted to the latest quarterly results from BP plc, Kering SA, UniCredit SpA, and ams-OSRAM.

Thyssenkrupp and Salzgitter dropped 1% after the U.S. announced a 25% tariff on all imports of steel and aluminum products beginning March 4.

The latest round of tariffs appears to placate the most extreme wing of the Republican Party, and the proposed import tax will stoke inflation and provide another reason for the Federal Reserve to hold higher interest rates for longer. 

France's Jobless Rate Edged Lower In Fourth Quarter

Closer to home, France's jobless rate unexpectedly dropped marginally in the fourth quarter. 

The unemployment rate decreased to 7.3% from 7.4% in the third quarter, according to the latest data released by INSEE, France's statistical office. 

The number of unemployed people declined by 63,000 from the previous quarter to 2.3 million. 

The unemployment rate in the age group between 15 and 24, the so-called youth jobless rate, edged down by 0.8 percentage point to 19%. 

The jobless rate in the age group between 25 and 49 eased by 0.1 percentage point to 6.5%, and for those above the age of 50 and over, it increased by 0.1 percentage point to 4.8%. 

Europe Indexes and Yields

The DAX index increased by 0.10% to 21,934.27, the CAC-40 index edged lower 0.05% to 8,001.99; and the FTSE 100 index advanced by 0.05% to 8,772.53.     

The yield on 10-year German bonds inched higher to 2.41%, French bonds increased to 3.14%, the UK gilts moved up to 4.60%, and Italian bonds edged higher to 3.51%.

The euro increased to $1.03; the British pound was lower at $1.24; and the U.S. dollar was higher and traded at 91.29 Swiss cents.

Brent crude increased $1.08 to $76.95 a barrel, and the Dutch TTF natural gas was higher by €0.17 to €49.91 per MWh.

Europe Stock Movers 

Novartis AG was nearly unchanged at CHF 96.94, and the Swiss pharmaceutical company agreed to acquire Anthos Therapeutics for $3.1 billion. 

BP plc decreased 0.6% to 462.30 pence, and the British oil company reported a steep decline in profit in the fourth quarter. 

UniCredit SpA decreased 2.8% to €45.93, and the Italian bank estimated a moderate decline in net interest margin in 2025 and reported better-than-expected 2024 earnings.

Kering SA increased 1.1% to €246.90 after the Paris-based luxury group posted better-than-expected revenue in the fourth quarter. 

Entain PLC plunged 10.5% to 667.32 pence after the UK-based online gambling company's chief executive Gavin Issacs stepped down immediately after six months in the office. 

ams-OSRAM AG jumped 16.8% to CHF 7.95, and the Austrian semiconductor company posted weak sales in the first quarter but held out for a strong recovery in automotive electronics in the fiscal second half.

Chinese Companies Look Beyond U.S. Tariffs, Stock Indexes Half Four-Month Rally 

Stock market indexes in China and Hong Kong dropped, and investors reviewed the latest round of new tariffs announced by the U.S. 

The Hang Seng index and CSI index dropped about 0.6% in choppy trading after the U.S. announced 25% tariffs on steel and aluminum imports with "no exemptions or exceptions."

The U.S. imports most of its steel products from Canada, Brazil, China, and South Korea.

The steel tariffs are slated to be imposed from March 4, and they will be in addition to 10% tariffs on all Chinese imports. 

The Trump administration is looking to raise additional federal government revenue, and the tax on imports is the new source that the administration has identified.

The tariffs on imports, which are indirect taxes and paid by all Americans, provide a new source of government revenue as the Trump administration prepares to pass a tax cut for wealthy donors who bankrolled his presidential election. 

Chinese manufacturers have accelerated their plans to diversify their manufacturing base away from China and stepped up their efforts to increase shipments to other countries and regions in the world. 

Over the last six years, Chinese companies have increased their manufacturing presence in Mexico, Vietnam, the ASEAN region, Hungary, and Brazil. 

The offshore Chinese yuan hovered near 7.30 against the U.S. dollar as the U.S. launched a new round of tariffs targeting products shipped by China, Canada, Mexico, and Brazil. 

China Stock Movers 

The Hang Seng index declined 0.6% to 21,404.70, and the CSI 300 index dropped 0.5% to 3,883.22.

Electric vehicle makers traded down on the worries that the next set of tariffs on Chinese imports will include advanced electronic products. 

Li Auto declined 5% to HK $100.20, BYD dropped 0.2% to HK $329.60, Xpeng plunged 9% to HK $62.05, and Geely Automobile Holding declined 10.5% to HK $15.82.

Separately, BYD said it plans to install autopilot systems on almost all of its models as early as this year.

Zijin Mining Group advanced 1.7% to HK $16.42 after the international spot price of gold advanced and traded at a new record high of $2,910.85. 

Resurgent Inflation Worries Keep Lurking In Fed Chair Comments, Wall Street Indexes Remain Under Pressure

Alexander Garcia
11 Feb, 2025
Miami

Wall Street indexes wavered around the flatline after Fed Chair Powell confirmed that inflation is slowing but remains above the long-term target rate. 

Market participants were cautiously optimistic after Chairman Powell confirmed that the U.S. economy is on solid footing and the labor market remains strong, and the central bank is in no hurry to lower rates in the near future. 

However, on Wall Street, benchmark indexes struggled to advance amid growing fears of a wider trade war sparked by the chaotic Trump administration and fears of resurgent inflation. 

The S&P 500 index decreased 0.2%, and the Nasdaq Composite declined 0.6% after the latest salvo of Trump tariffs targeted steel and aluminum imports. 

Wall Street indexes traded down in the early hours amid growing worries that the chaotic and unpredictable Trump administration could launch a wider trade war, halting global economic growth and making the U.S. economy more vulnerable to recession.

The latest 25% tariffs on steel and aluminum product imports appear to be driven by motivation to force two neighbors, Canada and Mexico, to toe the White House's line and have little basis in trade economics or the need of the U.S. consumers.

The latest version of the announced tariff will cover steel and aluminum shipments from all countries, including key suppliers, Brazil, South Korea, China, Japan, and the European Union. 

The European Union said it plans to announce its retaliatory tariffs in the near future, and other countries are also looking for ways to impose their retaliatory measures.

European Union Commission President Ursula von der Leyen said in a statement released on Monday, “Unjustified tariffs on the EU will not go unanswered—they will trigger firm and proportionate countermeasures.”

The growing prospects of a wider trade war are also going to be on the minds of lawmakers as Federal Reserve Chairman Jerome Powell is scheduled to appear before the Senate Banking Committee later today and the House Financial Services Committee on Wednesday.

Fed Chair Powell's testimony will start at 10:00 a.m. for both appearances. 

The ever-widening set of tariffs and the expanding set of trade partners covered by higher trade barriers is certainly going to stoke inflation, making the Fed policymakers job harder. 

The Federal Reserve is likely to hold off on any imminent rate cuts in the near future until solid evidence emerges that inflation is still on a sustainable downward slide towards the 2% target rate.

U.S. Indexes and Treasury Yields

The S&P 500 index decreased 0.24% to 6,051.80, the Nasdaq Composite edged down 0.6% to 19,598.92, and the Russell 2000 index was down 0.5% to 2,276.74.

The yield on 2-year Treasury notes edged higher to 4.30%, 10-year Treasury notes increased to 4.54%, and 30-year Treasury bonds advanced to 4.75%.

WTI crude oil increased $1.14 to $73.46 a barrel, and natural gas prices edged higher by $0.08 to $3.53 a thermal unit.

Gold decreased by $20.09 to 2,897.44 an ounce, and silver edged down by $0.45 to $31.62.

The dollar index, which weighs the US currency against a basket of foreign currencies, decreased 0.12 to 108.21 and traded at a two-year high.

U.S. Stock Movers 

Vertex Pharmaceuticals Inc. dropped 0.4% to $467.98 after the biotech company posted lower income in the fourth quarter ending in December.

Astera Labs Inc. dropped 4.5% to $98.65 despite the provider of fabric switches for artificial intelligence products reporting strong fourth-quarter sales and profit growth.

Lattice Semiconductor Corp. surged 13.9% to $62.04 despite the maker of low-power field-programmable gate arrays reporting weak fourth-quarter results.

The stock jumped in trading because the company's revenues were ahead of some investors' estimates. 

Coca-Cola Company jumped 6.8% to $66.97 after the beverage maker's fourth quarter revenue and earnings surpassed market expectations, driven by higher prices and a slight increase in case volumes. 

European Markets Hover Near Record Highs Amid Earnings Optimism

Stock market indexes in Europe hovered near recent highs as investors focused on the latest batch of positive earnings. 

Benchmark indexes in Frankfurt, Paris, Milan, and London wavered around the flatline, and more than 50 companies reported earnings in the currency union. 

Investors reacted to the latest quarterly results from BP plc, Kering SA, UniCredit SpA, and ams-OSRAM.

Thyssenkrupp and Salzgitter dropped 1% after the U.S. announced a 25% tariff on all imports of steel and aluminum products beginning March 4.

The latest round of tariffs appears to placate the most extreme wing of the Republican Party, and the proposed import tax will stoke inflation and provide another reason for the Federal Reserve to hold higher interest rates for longer. 

France's Jobless Rate Edged Lower In Fourth Quarter

Closer to home, France's jobless rate unexpectedly dropped marginally in the fourth quarter. 

The unemployment rate decreased to 7.3% from 7.4% in the third quarter, according to the latest data released by INSEE, France's statistical office. 

The number of unemployed people declined by 63,000 from the previous quarter to 2.3 million. 

The unemployment rate in the age group between 15 and 24, the so-called youth jobless rate, edged down by 0.8 percentage point to 19%. 

The jobless rate in the age group between 25 and 49 eased by 0.1 percentage point to 6.5%, and for those above the age of 50 and over, it increased by 0.1 percentage point to 4.8%. 

Europe Indexes and Yields

The DAX index increased by 0.10% to 21,934.27, the CAC-40 index edged lower 0.05% to 8,001.99; and the FTSE 100 index advanced by 0.05% to 8,772.53.     

The yield on 10-year German bonds inched higher to 2.41%, French bonds increased to 3.14%, the UK gilts moved up to 4.60%, and Italian bonds edged higher to 3.51%.

The euro increased to $1.03; the British pound was lower at $1.24; and the U.S. dollar was higher and traded at 91.29 Swiss cents.

Brent crude increased $1.08 to $76.95 a barrel, and the Dutch TTF natural gas was higher by €0.17 to €49.91 per MWh.

Europe Stock Movers 

Novartis AG was nearly unchanged at CHF 96.94, and the Swiss pharmaceutical company agreed to acquire Anthos Therapeutics for $3.1 billion. 

BP plc decreased 0.6% to 462.30 pence, and the British oil company reported a steep decline in profit in the fourth quarter. 

UniCredit SpA decreased 2.8% to €45.93, and the Italian bank estimated a moderate decline in net interest margin in 2025 and reported better-than-expected 2024 earnings.

Kering SA increased 1.1% to €246.90 after the Paris-based luxury group posted better-than-expected revenue in the fourth quarter. 

Entain PLC plunged 10.5% to 667.32 pence after the UK-based online gambling company's chief executive Gavin Issacs stepped down immediately after six months in the office. 

ams-OSRAM AG jumped 16.8% to CHF 7.95, and the Austrian semiconductor company posted weak sales in the first quarter but held out for a strong recovery in automotive electronics in the fiscal second half.

Chinese Companies Look Beyond U.S. Tariffs, Stock Indexes Half Four-Month Rally 

Stock market indexes in China and Hong Kong dropped, and investors reviewed the latest round of new tariffs announced by the U.S. 

The Hang Seng index and CSI index dropped about 0.6% in choppy trading after the U.S. announced 25% tariffs on steel and aluminum imports with "no exemptions or exceptions."

The U.S. imports most of its steel products from Canada, Brazil, China, and South Korea.

The steel tariffs are slated to be imposed from March 4, and they will be in addition to 10% tariffs on all Chinese imports. 

The Trump administration is looking to raise additional federal government revenue, and the tax on imports is the new source that the administration has identified.

The tariffs on imports, which are indirect taxes and paid by all Americans, provide a new source of government revenue as the Trump administration prepares to pass a tax cut for wealthy donors who bankrolled his presidential election. 

Chinese manufacturers have accelerated their plans to diversify their manufacturing base away from China and stepped up their efforts to increase shipments to other countries and regions in the world. 

Over the last six years, Chinese companies have increased their manufacturing presence in Mexico, Vietnam, the ASEAN region, Hungary, and Brazil. 

The offshore Chinese yuan hovered near 7.30 against the U.S. dollar as the U.S. launched a new round of tariffs targeting products shipped by China, Canada, Mexico, and Brazil. 

China Stock Movers 

The Hang Seng index declined 0.6% to 21,404.70, and the CSI 300 index dropped 0.5% to 3,883.22.

Electric vehicle makers traded down on the worries that the next set of tariffs on Chinese imports will include advanced electronic products. 

Li Auto declined 5% to HK $100.20, BYD dropped 0.2% to HK $329.60, Xpeng plunged 9% to HK $62.05, and Geely Automobile Holding declined 10.5% to HK $15.82.

Separately, BYD said it plans to install autopilot systems on almost all of its models as early as this year.

Zijin Mining Group advanced 1.7% to HK $16.42 after the international spot price of gold advanced and traded at a new record high of $2,910.85. 

U.S. Movers: Astera Labs, Lattice Semiconductor, Vertex Pharma

Scott Peters
11 Feb, 2025
New York City

Vertex Pharmaceuticals Inc. dropped 0.4% to $467.98 after the biotech company posted lower income in the fourth quarter ending in December.

Revenue increased to $2.91 billion from $2.52 billion, net income dropped to $913.0 million from $968.8 million, and earnings per diluted share fell to $3.50 from $3.71 a year ago.

Revenue growth was primarily driven by the continued performance of TRIKAFTA/KAFTRIO, a prescription medicine used for cystic fibrosis treatment.

For fiscal 2025, the company estimated revenue between $11.75 billion and $12.0 billion, compared to $11.02 billion in 2024.

Astera Labs Inc. dropped 4.5% to $98.65 despite the plug-and-play data network switches for artificial intelligence servers provider reporting strong fourth-quarter results.

Revenue increased to $141.1 million from $50.5 million, net income jumped to $24.7 million from $14.3 million, and earnings per diluted share rose to 14 cents from zero cents a year ago.

For the first quarter of 2025, the company estimated revenue between $151 million and $155 million, compared to $65.3 million in the same quarter last year, and GAAP earnings per diluted share between 3 cents and 4 cents, compared to a loss of $1.77 a year ago.

Lattice Semiconductor Corp. surged 13.9% to $62.04 despite the maker of low-power field-programmable gate arrays reporting weak fourth-quarter results.

Revenue declined by 31.2% to $117.4 million from $170.6 million, net income slumped 83.3% to $16.5 million from $98.7 million, and earnings per diluted share dropped to 12 cents from 71 cents a year ago.

For the first quarter of 2025, the company estimated revenue between $115 million and $125 million, compared to $140.8 million in the same quarter last year, and non-GAAP earnings per share between 20 cents and 24 cents, compared to 29 cents a year ago.

The company’s board authorized the repurchase of an additional $100 million of its outstanding common stock through the end of December 2025.

The company has repurchased approximately 6 million shares since the fourth quarter of 2020, thereby reducing dilution by 4.3%.

Coca-Cola Company jumped 6.8% to $66.97 after the beverage maker’s fourth quarter revenue and earnings surpassed market expectations, driven by higher prices and a slight increase in case volumes.

Revenue increased 6% to $11.54 billion from $10.85 billion, net income jumped 11% to $2.19 billion from $1.97 billion, and earnings per diluted share rose 12% to 51 cents from 46 cents a year ago.

For fiscal year 2025, the company estimated organic revenue growth between 5% and 6% and comparable earnings per share growth between 2% and 3%, versus $2.88 in 2024.

Coty Inc. dropped 2.4% to $6.61 after the cosmetics company reported slower sales in the second quarter of fiscal 2025 ending in December.

Revenue declined to $1.67 billion from $1.73 billion, net income fell to $23.7 million from $180.9 million, and earnings per diluted share dropped to 2 cents from 20 cents a year ago.

Sales in the company’s Prestige segment decreased 1% to $1.12 billion from $1.23 billion, and in Consumer Beauty revenue was down 8% to $553.8 million from $605.0 million a year earlier.

In the first half of 2025, the Europe, Middle East, and Africa region represented 49% of total sales, the Americas stake was 40%, and Asia Pacific took a 40% share.

In full year 2025, the company estimated declining sales in the low single digits percentage, impacted by a weakness in China and Travel Retail Asia. 

The company expects same-store sales in the second half of 2025 to drop between 1% and 2%.

U.S. Movers: Astera Labs, Lattice Semiconductor, Vertex Pharma

Scott Peters
11 Feb, 2025
New York City

Vertex Pharmaceuticals Inc. dropped 0.4% to $467.98 after the biotech company posted lower income in the fourth quarter ending in December.

Revenue increased to $2.91 billion from $2.52 billion, net income dropped to $913.0 million from $968.8 million, and earnings per diluted share fell to $3.50 from $3.71 a year ago.

Revenue growth was primarily driven by the continued performance of TRIKAFTA/KAFTRIO, a prescription medicine used for the treatment of cystic fibrosis.

For fiscal 2025, the company estimated revenue between $11.75 billion and $12.0 billion, compared to $11.02 billion in 2024.

Astera Labs Inc. dropped 4.5% to $98.65 despite the provider of plug-and-play data network switches for artificial intelligence servers reporting strong fourth-quarter sales and profit growth.

Revenue increased to $141.1 million from $50.5 million, net income jumped to $24.7 million from $14.3 million, and earnings per diluted share rose to 14 cents from zero cents a year ago.

For the first quarter of 2025, the company estimated revenue between $151 million and $155 million, compared to $65.3 million in the same quarter last year, and GAAP earnings per diluted share between 3 cents and 4 cents, compared to a loss of $1.77 a year ago.

Lattice Semiconductor Corp. surged 13.9% to $62.04 despite the maker of low-power field-programmable gate arrays reporting weak fourth-quarter results.

Revenue declined to 31.2% to $117.4 million from $170.6 million, net income slumped 83.3% to $16.5 million from $98.7 million, and earnings per diluted share dropped to 12 cents from 71 cents a year ago.

For the first quarter of 2025, the company estimated revenue between $115 million and $125 million, and earnings per share between 20 cents and 24 cents.

The company’s board authorized the repurchase of an additional $100 million of its outstanding common stock through the end of December 2025.

The company has repurchased approximately 6 million shares since the fourth quarter of 2020, thereby reducing dilution by 4.3%.

Wall Street Indexes Trade Sideways Ahead of Fed Chair Powell's Comments

Barry Adams
11 Feb, 2025
New York City

Wall Street indexes traded down in the early hours amid growing worries that the chaotic and unpredictable Trump administration could launch a wider trade war, halting global economic growth and pushing the U.S. economy towards a recession.

The S&P 500 index decreased 0.1%, and the Nasdaq Composite declined 0.3% after the latest salvo of Trump tariffs targeted steel and aluminum imports. 

The latest 25% tariffs on steel and aluminum product imports appear to be driven by motivation to force two neighbors, Canada and Mexico, to toe the White House's line and have little basis in trade economics or the need of the U.S. consumers.

The latest version of the announced tariff will cover steel and aluminum shipments from all countries, including key suppliers, Brazil, South Korea, China, Japan, and the European Union. 

The European Union said it plans to announce its retaliatory tariffs in the near future, and other countries are also looking for ways to impose their retaliatory measures.

European Union Commission President Ursula von der Leyen said in a statement released on Monday, “Unjustified tariffs on the EU will not go unanswered—they will trigger firm and proportionate countermeasures.”

The growing prospects of a wider trade war are also going to be on the minds of lawmakers as Federal Reserve Chairman Jerome Powell is scheduled to appear before the Senate Banking Committee later today and the House Financial Services Committee on Wednesday.

Fed Chair Powell's testimony will start at 10:00 a.m. for both appearances. 

The ever-widening set of tariffs and the expanding set of trade partners covered by higher trade barriers is certainly going to stoke inflation, making the Fed policymakers job harder. 

The Federal Reserve is likely to hold off on any imminent rate cuts in the near future until solid evidence emerges that inflation is still on a sustainable downward slide towards the 2% target rate.

U.S. Stock Movers 

Vertex Pharmaceuticals Inc. dropped 0.4% to $467.98 after the biotech company posted lower income in the fourth quarter ending in December.

Astera Labs Inc. dropped 4.5% to $98.65 despite the provider of fabric switches for artificial intelligence products reporting strong fourth-quarter sales and profit growth.

Lattice Semiconductor Corp. surged 13.9% to $62.04 despite the maker of low-power field-programmable gate arrays reporting weak fourth-quarter results.

The stock jumped in trading because the company's revenues were ahead of some investors' estimates. 

Coca-Cola Company jumped 6.8% to $66.97 after the beverage maker's fourth quarter revenue and earnings surpassed market expectations, driven by higher prices and a slight increase in case volumes. 

Wall Street Indexes Trade Sideways Ahead of Fed Chair Powell's Comments

Barry Adams
11 Feb, 2025
New York City

Wall Street indexes traded down in the early hours amid growing worries that the chaotic and unpredictable Trump administration could launch a wider trade war, halting global economic growth and pushing the U.S. economy towards a recession.

The S&P 500 index decreased 0.1%, and the Nasdaq Composite declined 0.3% after the latest salvo of Trump tariffs targeted steel and aluminum imports. 

The latest 25% tariffs on steel and aluminum product imports appear to be driven by motivation to force two neighbors, Canada and Mexico, to toe the White House's line and have little basis in trade economics or the need of the U.S. consumers.

The latest version of the announced tariff will cover steel and aluminum shipments from all countries, including key suppliers, Brazil, South Korea, China, Japan, and the European Union. 

The European Union said it plans to announce its retaliatory tariffs in the near future, and other countries are also looking for ways to impose their retaliatory measures.

European Union Commission President Ursula von der Leyen said in a statement released on Monday, “Unjustified tariffs on the EU will not go unanswered—they will trigger firm and proportionate countermeasures.”

The growing prospects of a wider trade war are also going to be on the minds of lawmakers as Federal Reserve Chairman Jerome Powell is scheduled to appear before the Senate Banking Committee later today and the House Financial Services Committee on Wednesday.

Fed Chair Powell's testimony will start at 10:00 a.m. for both appearances. 

The ever-widening set of tariffs and the expanding set of trade partners covered by higher trade barriers is certainly going to stoke inflation, making the Fed policymakers job harder. 

The Federal Reserve is likely to hold off on any imminent rate cuts in the near future until solid evidence emerges that inflation is still on a sustainable downward slide towards the 2% target rate.

U.S. Stock Movers 

Vertex Pharmaceuticals Inc. dropped 0.4% to $467.98 after the biotech company posted lower income in the fourth quarter ending in December.

Astera Labs Inc. dropped 4.5% to $98.65 despite the provider of fabric switches for artificial intelligence products reporting strong fourth-quarter sales and profit growth.

Lattice Semiconductor Corp. surged 13.9% to $62.04 despite the maker of low-power field-programmable gate arrays reporting weak fourth-quarter results.

The stock jumped in trading because the company's revenues were ahead of some investors' estimates. 

Coca-Cola Company jumped 6.8% to $66.97 after the beverage maker's fourth quarter revenue and earnings surpassed market expectations, driven by higher prices and a slight increase in case volumes. 

Europe Movers: ams-OSRAM, BP, Ceconomy, Entain, GN Store Nord, Kering, UniCredit

Inga Muller
11 Feb, 2025
Frankfurt

European markets hovered near recent highs as investors reviewed the latest updates on earnings. 

France's jobless rate edged slightly lower in the fourth quarter, and the youth unemployment rate remained elevated. 

The DAX index increased by 0.10% to 21,934.27, the CAC-40 index edged lower 0.05% to 8,001.99; and the FTSE 100 index advanced by 0.05% to 8,772.53.     

The yield on 10-year German bonds inched higher to 2.41%, French bonds increased to 3.14%, the UK gilts moved up to 4.60%, and Italian bonds edged higher to 3.51%.

Europe Stock Movers 

Novartis AG was nearly unchanged at CHF 96.94, and the Swiss pharmaceutical company agreed to acquire Anthos Therapeutics for $3.1 billion. 

BP plc decreased 0.6% to 462.30 pence, and the British oil company reported a steep decline in profit in the fourth quarter. 

UniCredit SpA decreased 2.8% to €45.93, and the Italian bank estimated a moderate decline in net interest margin in 2025 and reported better-than-expected 2024 earnings.

Kering SA increased 1.1% to €246.90 after the Paris-based luxury group posted better-than-expected revenue in the fourth quarter. 

Entain PLC plunged 10.5% to 667.32 pence after the UK-based online gambling company's chief executive Gavin Issacs stepped down immediately after six months in the office. 

ams-OSRAM AG jumped 16.8% to CHF 7.95, and the Austrian semiconductor company posted weak sales in the first quarter but held out for a strong recovery in automotive electronics in the fiscal second half.

Recent Earnings Movers

Ceconomy AG gained 0.6% to €3.17 after the German electronics retailer posted revenue growth for the fiscal year 2024.

Sales increased to €22.44 billion from €22.24 billion, net income swung to a profit of €77 million from a loss of €37 million, and earnings per diluted share rose to 16 cents from a loss of 8 cents a year ago.

Same-store sales growth slowed to an increase of 4.1%, compared to 4.3% increase a year earlier.

Chinese e-commerce giant JD.com has signaled an interest to acquire the specialty electronics retailer Ceconomy.

Vinci SA dropped 1.5% to €108.20 despite the French concessions and construction company reporting revenue growth in fiscal year 2024.

Revenue increased to €71.62 billion from €68.39 billion, net income climbed to €5.27 billion from €5.10 billion, and earnings per diluted share rose to €8.43 from €8.18 a year ago.

The company proposed a dividend of €3.70 per share, higher than €3.45 in 2023, and payable on April 24.

In addition, Vinci proposed to purchase shares up to a maximum of 10% of the number of shares making up the company's share capital over a period of 18 months from April 9 to October 8.

GN Store Nord A/S dropped 2.9% to 139.90 krona after the Danish manufacturer of hearing aids, speakerphones, videobars and headsets said revenue declined in the fiscal year 2024.

Revenue decreased to DKK 17.98 billion from DKK 18.12 billion, profit jumped to DKK 1.06 billion from DKK 266 million, and earnings per diluted share rose to DKK 6.78 from DKK 1.64 a year ago.

Revenue in the fourth quarter declined to DKK 5.02 billion from DKK 5.07 billion a year earlier.

GN Store will not pay out dividends for 2024, and the company paused is stock  repurchase program for now. 

UniCredit SpA dropped 3.1% to 45.83 after Italy’s second-largest lender posted higher-than-expected fourth quarter earnings, but guided weak revenue growth for fiscal 2025.

The bank raised its cash dividend payout guidance to 50% of net profit in 2025, from 40% in 2024.

In fiscal 2024, revenue increased 4% to €24.2 billion from €23.8 billion, and net profit jumped 2% to €9.7 billion from €9.5 billion a year ago.

For fiscal 2025, the bank estimated revenue of above €23 billion, compared to €24.2 billion last year, reflecting compression of its business in Russia and “moderate decline” in expected net interest income.

In November, UniCredit issued a €1 billion floating rate senior preferred bond with 4 years maturity, callable after 3 years, targeted to institutional investors.

Kering SA increased 1.1% to €246.90 after the Paris-based luxury group posted better-than-expected revenue in the fourth quarter. 

Revenue declined to €17.19 billion from €19.57 billion, net income dropped to €1.13 billion from €2.98 billion, and earnings per diluted share fell to €9.24 from €24.37 a year ago.

Sales in the Gucci segment decreased 24% to €1.92 billion from €2.53 billion a year earlier, in Yves Saint Laurent they were down 8% to €770 million from €835 million, while in Bottega Veneta sales increased 12% to €480 million from €431 million.

Revenue in the company’s Eyewear and Corporate segment jumped 10% to €434 million from €366 million a year ago.  

During the year, Kering acquired real estate assets in New York and Milan as the key desirable locations for its houses.

Ams-OSRAM AG surged 17.6% to CHF 8.01 despite the Austrian semiconductor manufacturer reporting weak results for the fourth quarter ending in December.

Revenue declined to €882 million from €908 million, net loss shrank to €58 million from €82 million, and loss per diluted share declined to 59 cents from a loss of €1.79 a year ago.

For the first quarter of 2025, the company estimated revenue between €750 million and €850 million, in line with further savings efforts.

BP Plc. dropped 0.8% to 461.65 pence after the British energy company reported a sharp drop in fourth-quarter profit on weaker refining margins.

Revenue declined to $45.75 billion from $52.14 billion, net income swung to a loss $1.62 billion from to a profit of $436 million, and loss per diluted share came in at $12.33 from a profit of 13 cents a year ago.

The company launched a $1.75 billion share buyback in the fourth quarter.

During the quarter, BP paid dividends per ADS of 48 cents, higher than 43.62 cents a year earlier.

For fiscal year 2025, the company expects $3 billion in divestment and other proceeds, and the Gulf of Mexico settlement payments of around $1.2 billion pre-tax, including $1.1 billion pre-tax to be paid during the second quarter.

Europe Movers: ams-OSRAM, BP, Ceconomy, Entain, GN Store Nord, Kering, UniCredit

Inga Muller
11 Feb, 2025
Frankfurt

European markets hovered near recent highs as investors reviewed the latest updates on earnings. 

France's jobless rate edged slightly lower in the fourth quarter, and the youth unemployment rate remained elevated. 

The DAX index increased by 0.10% to 21,934.27, the CAC-40 index edged lower 0.05% to 8,001.99; and the FTSE 100 index advanced by 0.05% to 8,772.53.     

The yield on 10-year German bonds inched higher to 2.41%, French bonds increased to 3.14%, the UK gilts moved up to 4.60%, and Italian bonds edged higher to 3.51%.

Europe Stock Movers 

Novartis AG was nearly unchanged at CHF 96.94, and the Swiss pharmaceutical company agreed to acquire Anthos Therapeutics for $3.1 billion. 

BP plc decreased 0.6% to 462.30 pence, and the British oil company reported a steep decline in profit in the fourth quarter. 

UniCredit SpA decreased 2.8% to €45.93, and the Italian bank estimated a moderate decline in net interest margin in 2025 and reported better-than-expected 2024 earnings.

Kering SA increased 1.1% to €246.90 after the Paris-based luxury group posted better-than-expected revenue in the fourth quarter. 

Entain PLC plunged 10.5% to 667.32 pence after the UK-based online gambling company's chief executive Gavin Issacs stepped down immediately after six months in the office. 

ams-OSRAM AG jumped 16.8% to CHF 7.95, and the Austrian semiconductor company posted weak sales in the first quarter but held out for a strong recovery in automotive electronics in the fiscal second half.

Recent Earnings Movers

Ceconomy AG gained 0.6% to €3.17 after the German electronics retailer posted revenue growth for the fiscal year 2024.

Sales increased to €22.44 billion from €22.24 billion, net income swung to a profit of €77 million from a loss of €37 million, and earnings per diluted share rose to 16 cents from a loss of 8 cents a year ago.

Same-store sales growth slowed to an increase of 4.1%, compared to 4.3% increase a year earlier.

Chinese e-commerce giant JD.com has signaled an interest to acquire the specialty electronics retailer Ceconomy.

Vinci SA dropped 1.5% to €108.20 despite the French concessions and construction company reporting revenue growth in fiscal year 2024.

Revenue increased to €71.62 billion from €68.39 billion, net income climbed to €5.27 billion from €5.10 billion, and earnings per diluted share rose to €8.43 from €8.18 a year ago.

The company proposed a dividend of €3.70 per share, higher than €3.45 in 2023, and payable on April 24.

In addition, Vinci proposed to purchase shares up to a maximum of 10% of the number of shares making up the company's share capital over a period of 18 months from April 9 to October 8.

GN Store Nord A/S dropped 2.9% to 139.90 krona after the Danish manufacturer of hearing aids, speakerphones, videobars and headsets said revenue declined in the fiscal year 2024.

Revenue decreased to DKK 17.98 billion from DKK 18.12 billion, profit jumped to DKK 1.06 billion from DKK 266 million, and earnings per diluted share rose to DKK 6.78 from DKK 1.64 a year ago.

Revenue in the fourth quarter declined to DKK 5.02 billion from DKK 5.07 billion a year earlier.

GN Store will not pay out dividends for 2024, and the company paused is stock  repurchase program for now. 

UniCredit SpA dropped 3.1% to 45.83 after Italy’s second-largest lender posted higher-than-expected fourth quarter earnings, but guided weak revenue growth for fiscal 2025.

The bank raised its cash dividend payout guidance to 50% of net profit in 2025, from 40% in 2024.

In fiscal 2024, revenue increased 4% to €24.2 billion from €23.8 billion, and net profit jumped 2% to €9.7 billion from €9.5 billion a year ago.

For fiscal 2025, the bank estimated revenue of above €23 billion, compared to €24.2 billion last year, reflecting compression of its business in Russia and “moderate decline” in expected net interest income.

In November, UniCredit issued a €1 billion floating rate senior preferred bond with 4 years maturity, callable after 3 years, targeted to institutional investors.

Kering SA increased 1.1% to €246.90 after the Paris-based luxury group posted better-than-expected revenue in the fourth quarter. 

Revenue declined to €17.19 billion from €19.57 billion, net income dropped to €1.13 billion from €2.98 billion, and earnings per diluted share fell to €9.24 from €24.37 a year ago.

Sales in the Gucci segment decreased 24% to €1.92 billion from €2.53 billion a year earlier, in Yves Saint Laurent they were down 8% to €770 million from €835 million, while in Bottega Veneta sales increased 12% to €480 million from €431 million.

Revenue in the company’s Eyewear and Corporate segment jumped 10% to €434 million from €366 million a year ago.  

During the year, Kering acquired real estate assets in New York and Milan as the key desirable locations for its houses.

Ams-OSRAM AG surged 17.6% to CHF 8.01 despite the Austrian semiconductor manufacturer reporting weak results for the fourth quarter ending in December.

Revenue declined to €882 million from €908 million, net loss shrank to €58 million from €82 million, and loss per diluted share declined to 59 cents from a loss of €1.79 a year ago.

For the first quarter of 2025, the company estimated revenue between €750 million and €850 million, in line with further savings efforts.

BP Plc. dropped 0.8% to 461.65 pence after the British energy company reported a sharp drop in fourth-quarter profit on weaker refining margins.

Revenue declined to $45.75 billion from $52.14 billion, net income swung to a loss $1.62 billion from to a profit of $436 million, and loss per diluted share came in at $12.33 from a profit of 13 cents a year ago.

The company launched a $1.75 billion share buyback in the fourth quarter.

During the quarter, BP paid dividends per ADS of 48 cents, higher than 43.62 cents a year earlier.

For fiscal year 2025, the company expects $3 billion in divestment and other proceeds, and the Gulf of Mexico settlement payments of around $1.2 billion pre-tax, including $1.1 billion pre-tax to be paid during the second quarter.

European Markets Hover Near Record Highs Amid Earnings Optimism, France's Jobless Rate Edged Lower

Bridgette Randall
11 Feb, 2025
London

Stock market indexes in Europe hovered near recent highs as investors focused on the latest batch of positive earnings. 

Benchmark indexes in Frankfurt, Paris, Milan, and London wavered around the flatline, and more than 50 companies reported earnings in the currency union. 

Investors reacted to the latest quarterly results from BP plc, Kering SA, UniCredit SpA, and ams-OSRAM.

Thyssenkrupp and Salzgitter dropped 1% after the U.S. announced a 25% tariff on all imports of steel and aluminum products beginning March 4.

The latest round of tariffs appears to placate the most extreme wing of the Republican Party, and the proposed import tax will stoke inflation and provide another reason for the Federal Reserve to hold higher interest rates for longer. 

France's Jobless Rate Edged Lower In Fourth Quarter

Closer to home, France's jobless rate unexpectedly dropped marginally in the fourth quarter. 

The unemployment rate decreased to 7.3% from 7.4% in the third quarter, according to the latest data released by INSEE, France's statistical office. 

The number of unemployed people declined by 63,000 from the previous quarter to 2.3 million. 

The unemployment rate in the age group between 15 and 24, the so-called youth jobless rate, edged down by 0.8 percentage point to 19%. 

The jobless rate in the age group between 25 and 49 eased by 0.1 percentage point to 6.5%, and for those above the age of 50 and over, it increased by 0.1 percentage point to 4.8%. 

Europe Indexes and Yields

The DAX index increased by 0.10% to 21,934.27, the CAC-40 index edged lower 0.05% to 8,001.99; and the FTSE 100 index advanced by 0.05% to 8,772.53.     

The yield on 10-year German bonds inched higher to 2.41%, French bonds increased to 3.14%, the UK gilts moved up to 4.60%, and Italian bonds edged higher to 3.51%.

The euro increased to $1.03; the British pound was lower at $1.24; and the U.S. dollar was higher and traded at 91.29 Swiss cents.

Brent crude increased $1.08 to $76.95 a barrel, and the Dutch TTF natural gas was higher by €0.17 to €49.91 per MWh.

Europe Stock Movers 

Novartis AG was nearly unchanged at CHF 96.94, and the Swiss pharmaceutical company agreed to acquire Anthos Therapeutics for $3.1 billion. 

BP plc decreased 0.6% to 462.30 pence, and the British oil company reported a steep decline in profit in the fourth quarter. 

UniCredit SpA decreased 2.8% to €45.93, and the Italian bank estimated a moderate decline in net interest margin in 2025 and reported better-than-expected 2024 earnings.

Kering SA increased 1.1% to €246.90 after the Paris-based luxury group posted better-than-expected revenue in the fourth quarter. 

Entain PLC plunged 10.5% to 667.32 pence after the UK-based online gambling company's chief executive Gavin Issacs stepped down immediately after six months in the office. 

ams-OSRAM AG jumped 16.8% to CHF 7.95, and the Austrian semiconductor company posted weak sales in the first quarter but held out for a strong recovery in automotive electronics in the fiscal second half.

European Markets Hover Near Record Highs Amid Earnings Optimism, France's Jobless Rate Edged Lower

Bridgette Randall
11 Feb, 2025
London

Stock market indexes in Europe hovered near recent highs as investors focused on the latest batch of positive earnings. 

Benchmark indexes in Frankfurt, Paris, Milan, and London wavered around the flatline, and more than 50 companies reported earnings in the currency union. 

Investors reacted to the latest quarterly results from BP plc, Kering SA, UniCredit SpA, and ams-OSRAM.

Thyssenkrupp and Salzgitter dropped 1% after the U.S. announced a 25% tariff on all imports of steel and aluminum products beginning March 4.

The latest round of tariffs appears to placate the most extreme wing of the Republican Party, and the proposed import tax will stoke inflation and provide another reason for the Federal Reserve to hold higher interest rates for longer. 

France's Jobless Rate Edged Lower In Fourth Quarter

Closer to home, France's jobless rate unexpectedly dropped marginally in the fourth quarter. 

The unemployment rate decreased to 7.3% from 7.4% in the third quarter, according to the latest data released by INSEE, France's statistical office. 

The number of unemployed people declined by 63,000 from the previous quarter to 2.3 million. 

The unemployment rate in the age group between 15 and 24, the so-called youth jobless rate, edged down by 0.8 percentage point to 19%. 

The jobless rate in the age group between 25 and 49 eased by 0.1 percentage point to 6.5%, and for those above the age of 50 and over, it increased by 0.1 percentage point to 4.8%. 

Europe Stock Movers 

Novartis AG was nearly unchanged at CHF 96.94, and the Swiss pharmaceutical company agreed to acquire Anthos Therapeutics for $3.1 billion. 

BP plc decreased 0.6% to 462.30 pence, and the British oil company reported a steep decline in profit in the fourth quarter. 

UniCredit SpA decreased 2.8% to €45.93, and the Italian bank estimated a moderate decline in net interest margin in 2025 and reported better-than-expected 2024 earnings.

Kering SA increased 1.1% to €246.90 after the Paris-based luxury group posted better-than-expected revenue in the fourth quarter. 

Entain PLC plunged 10.5% to 667.32 pence after the UK-based online gambling company's chief executive Gavin Issacs stepped down immediately after six months in the office. 

ams-OSRAM AG jumped 16.8% to CHF 7.95, and the Austrian semiconductor company posted weak sales in the first quarter but held out for a strong recovery in automotive electronics in the fiscal second half.

Chinese Companies Look Beyond U.S. Tariffs, Stock Indexes Half Four-Month Rally

Li Chen
11 Feb, 2025
Hong Kong

Stock market indexes in China and Hong Kong dropped, and investors reviewed the latest round of new tariffs announced by the U.S. 

The Hang Seng index and CSI index dropped about 0.6% in choppy trading after the U.S. announced 25% tariffs on steel and aluminum imports with "no exemptions or exceptions."

The U.S. imports most of its steel products from Canada, Brazil, China, and South Korea.

The steel tariffs are slated to be imposed from March 4, and they will be in addition to 10% tariffs on all Chinese imports. 

The Trump administration is looking to raise additional federal government revenue, and the tax on imports is the new source that the administration has identified.

The tariffs on imports, which are indirect taxes and paid by all Americans, provide a new source of government revenue as the Trump administration prepares to pass a tax cut for wealthy donors who bankrolled his presidential election. 

Chinese manufacturers have accelerated their plans to diversify their manufacturing base away from China and stepped up their efforts to increase shipments to other countries and regions in the world. 

Over the last six years, Chinese companies have increased their manufacturing presence in Mexico, Vietnam, the ASEAN region, Hungary, and Brazil. 

The offshore Chinese yuan hovered near 7.30 against the U.S. dollar as the U.S. launched a new round of tariffs targeting products shipped by China, Canada, Mexico, and Brazil. 

China Stock Movers 

The Hang Seng index declined 0.6% to 21,404.70, and the CSI 300 index dropped 0.5% to 3,883.22.

Electric vehicle makers traded down on the worries that the next set of tariffs on Chinese imports will include advanced electronic products. 

Li Auto declined 5% to HK $100.20, BYD dropped 0.2% to HK $329.60, Xpeng plunged 9% to HK $62.05, and Geely Automobile Holding declined 10.5% to HK $15.82.

Separately, BYD said it plans to install autopilot systems on almost all of its models as early as this year.

Zijin Mining Group advanced 1.7% to HK $16.42 after the international spot price of gold advanced and traded at a new record high of $2,910.85.