Market Update
European Markets Indexes Trade Higher Amid Rate Cut Optimism
Bridgette Randall
10 Feb, 2025
London
European markets edged higher and extended a five-week rally amid rate path optimism and a positive earnings outlook.
Benchmark indexes in Frankfurt, Paris, Milan, and London advanced after the European Central Bank official supported the case for three additional rate cuts in 2025.
The European Central Bank's Governing Council member Boris Vujcic said that expectations for three more rate reductions this year are "reasonable," supporting the market view of rate cuts totaling at least 125 basis points.
Benchmark indexes in Germany and the UK are hovering near record highs despite the weakening macroeconomic backdrop and rising threats of trade barriers from the world's largest economy.
Investors are overlooking the weakening of Germany's automotive exports to China and a sharp decline in industrial output, driven by falling demand for intermediate goods and industrial machinery.
In the week of few economic data releases, investors reviewed the latest inflation update from Norway.
Consumer price inflation picked up to 2.3% in January from the four-year low of 2.2% in December, Statistics Norway reported Monday.
Meanwhile, the so-called core inflation, which adjusts for tax changes and excludes volatile energy prices, accelerated to 2.8% from 2.7% in the previous month and stayed above the central bank's target rate of 2.0%.
Norway's consumer price inflation has been declining after peaking at 7.5% in October 2022 and dropping to a low of 2.2% in December 2024.
Europe Indexes and Yields
The DAX index increased by 0.05% to 21,797.35, the CAC-40 index advanced 0.06% to 7,977.86, and the FTSE 100 index rose by 0.48% to 8,742.03.
The yield on 10-year German bonds inched lower to 2.38%, French bonds increased to 3.09%, the UK gilts moved down to 4.47%, and Italian bonds edged lower to 3.46%.
The euro increased to $1.03; the British pound was higher at $1.24; and the U.S. dollar was lower and traded at 90.99 Swiss cents.
Brent crude increased $0.86 to $75.51 a barrel, and the Dutch TTF natural gas advanced €0.17 to €49.91 per MWh.
Europe Stock Movers
Nokia Oyj jumped 2.2% to €4.76 after the company appointed a new chief executive officer.
BP plc jumped 6.8% to 463.0 pence after the activist investor Elliot Investment took a stake in the company.
GTT Group decreased 4.8% to €137.80 after the naval engineering company announced the resignation of its chief executive, Jean-Baptiste Choimet.
European Markets Indexes Trade Higher Amid Rate CutOptimism
Bridgette Randall
10 Feb, 2025
London
European markets edged higher and extended a five-week rally amid rate path optimism and a positive earnings outlook.
Benchmark indexes in Frankfurt, Paris, Milan, and London advanced after the European Central Bank official supported the case for three additional rate cuts in 2025.
The European Central Bank's Governing Council member Boris Vujcic said that expectations for three more rate reductions this year are "reasonable," supporting the market view of rate cuts totaling at least 125 basis points.
Benchmark indexes in Germany and the UK are hovering near record highs despite the weakening macroeconomic backdrop and rising threats of trade barriers from the world's largest economy.
Investors are overlooking the weakening of Germany's automotive exports to China and a sharp decline in industrial output, driven by falling demand for intermediate goods and industrial machinery.
In the week of few economic data releases, investors reviewed the latest inflation update from Norway.
Consumer price inflation picked up to 2.3% in January from the four-year low of 2.2% in December, Statistics Norway reported Monday.
Meanwhile, the so-called core inflation, which adjusts for tax changes and excludes volatile energy prices, accelerated to 2.8% from 2.7% in the previous month and stayed above the central bank's target rate of 2.0%.
Norway's consumer price inflation has been declining after peaking at 7.5% in October 2022 and dropping to a low of 2.2% in December 2024.
Europe Indexes and Yields
The DAX index increased by 0.05% to 21,797.35, the CAC-40 index advanced 0.06% to 7,977.86, and the FTSE 100 index rose by 0.48% to 8,742.03.
The yield on 10-year German bonds inched lower to 2.38%, French bonds increased to 3.09%, the UK gilts moved down to 4.47%, and Italian bonds edged lower to 3.46%.
The euro increased to $1.03; the British pound was higher at $1.24; and the U.S. dollar was lower and traded at 90.99 Swiss cents.
Brent crude increased $0.86 to $75.51 a barrel, and the Dutch TTF natural gas advanced €0.17 to €49.91 per MWh.
Europe Stock Movers
Nokia Oyj jumped 2.2% to €4.76 after the company appointed a new chief executive officer.
BP plc jumped 6.8% to 463.0 pence after the activist investor Elliot Investment took a stake in the company.
GTT Group decreased 4.8% to €137.80 after the naval engineering company announced the resignation of its chief executive, Jean-Baptiste Choimet.
Tech Rally Powers Rise In China and Hong Kong Indexes, Inflation Reports Support Need for Additional Stimulus
Li Chen
10 Feb, 2025
Hong Kong
Stock market indexes in China and Hong Kong extended gains of the previous week, and investors reviewed the latest inflation reports.
The Hang Seng index advanced 1.5%, and the CSI 300 index increased up to 0.3% following the continued surge in tech stocks in Hong Kong.
Market gains in China were muted after the U.S. threatened to impose an additional 25% tariff on steel and aluminum products, which could disrupt trade with Asian suppliers.
On the economic front, investors reviewed the latest updates on inflation amid louder calls for clarity on the previously announced fiscal stimulus.
China's consumer price inflation accelerated to 0.5% in January from 0.1% in December. The National Bureau of Statistics reported on Sunday.
Consumer inflation rose to the highest level since August, driven by the seasonal effects of the Lunar New Year.
Producer price inflation in January decreased for the 28th consecutive month, amid persistent demand weakness, according to a separate report by the statistical agency released on Sunday.
Producer price inflation decreased 2.8%, matching the rate in the previous month, and remained at the softest pace since August, as policymakers announced a raft of stimulus measures.
China Indexes and Stocks
The Hang Seng index increased 1.6% to 21,468.93, and the mainland-focused CSI 300 index advanced 0.2% to 3,901.06.
Technology stocks advanced in Monday's trading in the hopes that the affordable advances in artificial intelligence may provide a boost to earnings growth.
Alibaba Group advanced 5.5% to HK $105.50, JD.com Inc increased 2.8% to HK $161.50, Meituan gained 5.6% to $162.70, and Kuaishou Technology advanced 2.9% to HK $47.65.
Tech Rally Powers Rise In China and Hong Kong Indexes, Inflation Reports Support Need for Additional Stimulus
Li Chen
10 Feb, 2025
Hong Kong
Stock market indexes in China and Hong Kong extended gains of the previous week, and investors reviewed the latest inflation reports.
The Hang Seng index advanced 1.5%, and the CSI 300 index increased up to 0.3% following the continued surge in tech stocks in Hong Kong.
Market gains in China were muted after the U.S. threatened to impose an additional 25% tariff on steel and aluminum products, which could disrupt trade with Asian suppliers.
On the economic front, investors reviewed the latest updates on inflation amid louder calls for clarity on the previously announced fiscal stimulus.
China's consumer price inflation accelerated to 0.5% in January from 0.1% in December. The National Bureau of Statistics reported on Sunday.
Consumer inflation rose to the highest level since August, driven by the seasonal effects of the Lunar New Year.
Producer price inflation in January decreased for the 28th consecutive month, amid persistent demand weakness, according to a separate report by the statistical agency released on Sunday.
Producer price inflation decreased 2.8%, matching the rate in the previous month, and remained at the softest pace since August, as policymakers announced a raft of stimulus measures.
China Indexes and Stocks
The Hang Seng index increased 1.6% to 21,468.93, and the mainland-focused CSI 300 index advanced 0.2% to 3,901.06.
Technology stocks advanced in Monday's trading in the hopes that the affordable advances in artificial intelligence may provide a boost to earnings growth.
Alibaba Group advanced 5.5% to HK $105.50, JD.com Inc increased 2.8% to HK $161.50, Meituan gained 5.6% to $162.70, and Kuaishou Technology advanced 2.9% to HK $47.65.
India Movers: Movers: 3M India, Delhivery, Edelweiss Financial, Fortis, LIC, Mazagon Dock, Oil India, Ola Electric
Arun Goswami
10 Feb, 2025
Mumbai
Stock market indexes in Mumbai dropped, and the rupee drifted to a new record low after threats of U.S. tariffs weighed.
The Sensex index decreased by 0.7% to 77,330.94, and the Nifty index declined by 0.6% to 23,389.30.
On the Mumbai stock exchange, 172 stocks traded at their 52-week highs, and 264 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 87.90 against the U.S. dollar.
Oil India Ltd. decreased 3.7% to ₹409.35, and the crude oil and natural gas company reported a 44% plunge in quarterly profit from a year ago.
Consolidated revenue decreased to ₹9,391.2 crore from ₹11,493.9 crore, after-tax profit declined to ₹1,457.2 crore from ₹2,607.6 crore, and diluted earnings per share fell to ₹8.23 from ₹14.43 a year ago.
3M India Ltd. plunged 1.8% to ₹27,650 after the science and technology company reported a slight increase in revenue and a 16% decline in profit in the December quarter.
Consolidated revenue increased to ₹1,106.8 crore from ₹1,022.2 crore, net income fell to ₹113.7 crore from ₹135.2 crore, and diluted earnings per share decreased to ₹100.99 from ₹120.05 a year ago.
Ola Electric Mobility Ltd. fell 3.1% to ₹67.86 after the electric vehicle maker reported December quarter results.
Consolidated revenue decreased to ₹1,172 crore from ₹1,371 crore, net loss expanded to ₹564 crore from ₹376 crore, and diluted losses per share stretched to ₹1.28 from ₹1.02 a year ago.
Mazagon Dock Shipbuilders Ltd. increased 0.2% to ₹2,235.15 after the naval vessel builder reported a 30% surge in profit from a year ago in the December quarter revenue.
Consolidated revenue increased to ₹3,430.1 crore from ₹2,631.1 crore, net income advanced to ₹807.2 crore from ₹626.8 crore, and diluted earnings per share rose to ₹20.01 from ₹15.54 a year ago.
Fortis Healthcare Ltd. declined 1.1% to ₹642.65 despite the healthcare services provider reporting an 89% jump in its earnings in the December quarter.
Consolidated revenue increased to ₹1,949.2 crore from ₹1,686.5 crore, after-tax profit rose to ₹254.3 crore from ₹134.3 crore, and diluted earnings per share jumped to ₹3.28 from ₹1.78 a year ago.
Delhivery Limited decreased 2.5% to ₹308.75 despite the logistics and supply chain company reporting a sharp increase in revenue and earnings.
Consolidated revenue increased to ₹2,477 crore from ₹2,325.2 crore, net income jumped to ₹25 crore from ₹11.7 crore, and diluted earnings per share rose to 33 paise from 15 paise a year ago.
Life Insurance Corporation of India advanced 0.6% to ₹820.95 after the company reported a slight increase in net income and a 5% decline in revenue in the December quarter.
Consolidated revenue decreased to ₹2,02,930.7 crore from ₹2,13,159.4 crore, after-tax profit rose to ₹11,008.7 crore from ₹9,469 crore, and diluted earnings per share jumped to ₹17.40 from ₹14.97 a year ago.
Edelweiss Financial Services Ltd. fell 0.6% to ₹111.30, and the financial services provider reported an increase in net income in the December quarter.
Consolidated revenue decreased to ₹1,996.6 crore from ₹2,414.6 crore, net income advanced to ₹155.18 crore from ₹152.2 crore, and diluted earnings per share rose to ₹1.68 from ₹1.39 a year ago.
India Movers: Movers: 3M India, Delhivery, Edelweiss Financial, Fortis, LIC, Mazagon Dock, Oil India, Ola Electric
Arun Goswami
10 Feb, 2025
Mumbai
Stock market indexes in Mumbai dropped, and the rupee drifted to a new record low after threats of U.S. tariffs weighed.
The Sensex index decreased by 0.7% to 77,330.94, and the Nifty index declined by 0.6% to 23,389.30.
On the Mumbai stock exchange, 172 stocks traded at their 52-week highs, and 264 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 87.90 against the U.S. dollar.
Oil India Ltd. decreased 3.7% to ₹409.35, and the crude oil and natural gas company reported a 44% plunge in quarterly profit from a year ago.
Consolidated revenue decreased to ₹9,391.2 crore from ₹11,493.9 crore, after-tax profit declined to ₹1,457.2 crore from ₹2,607.6 crore, and diluted earnings per share fell to ₹8.23 from ₹14.43 a year ago.
3M India Ltd. plunged 1.8% to ₹27,650 after the science and technology company reported a slight increase in revenue and a 16% decline in profit in the December quarter.
Consolidated revenue increased to ₹1,106.8 crore from ₹1,022.2 crore, net income fell to ₹113.7 crore from ₹135.2 crore, and diluted earnings per share decreased to ₹100.99 from ₹120.05 a year ago.
Ola Electric Mobility Ltd. fell 3.1% to ₹67.86 after the electric vehicle maker reported December quarter results.
Consolidated revenue decreased to ₹1,172 crore from ₹1,371 crore, net loss expanded to ₹564 crore from ₹376 crore, and diluted losses per share stretched to ₹1.28 from ₹1.02 a year ago.
Mazagon Dock Shipbuilders Ltd. increased 0.2% to ₹2,235.15 after the naval vessel builder reported a 30% surge in profit from a year ago in the December quarter revenue.
Consolidated revenue increased to ₹3,430.1 crore from ₹2,631.1 crore, net income advanced to ₹807.2 crore from ₹626.8 crore, and diluted earnings per share rose to ₹20.01 from ₹15.54 a year ago.
Fortis Healthcare Ltd. declined 1.1% to ₹642.65 despite the healthcare services provider reporting an 89% jump in its earnings in the December quarter.
Consolidated revenue increased to ₹1,949.2 crore from ₹1,686.5 crore, after-tax profit rose to ₹254.3 crore from ₹134.3 crore, and diluted earnings per share jumped to ₹3.28 from ₹1.78 a year ago.
Delhivery Limited decreased 2.5% to ₹308.75 despite the logistics and supply chain company reporting a sharp increase in revenue and earnings.
Consolidated revenue increased to ₹2,477 crore from ₹2,325.2 crore, net income jumped to ₹25 crore from ₹11.7 crore, and diluted earnings per share rose to 33 paise from 15 paise a year ago.
Life Insurance Corporation of India advanced 0.6% to ₹820.95 after the company reported a slight increase in net income and a 5% decline in revenue in the December quarter.
Consolidated revenue decreased to ₹2,02,930.7 crore from ₹2,13,159.4 crore, after-tax profit rose to ₹11,008.7 crore from ₹9,469 crore, and diluted earnings per share jumped to ₹17.40 from ₹14.97 a year ago.
Edelweiss Financial Services Ltd. fell 0.6% to ₹111.30, and the financial services provider reported an increase in net income in the December quarter.
Consolidated revenue decreased to ₹1,996.6 crore from ₹2,414.6 crore, net income advanced to ₹155.18 crore from ₹152.2 crore, and diluted earnings per share rose to ₹1.68 from ₹1.39 a year ago.
U.S. Job Growth Slowed by Solid In January, Wage Growth Supports Fed's Rate Case
Brian Turner
08 Feb, 2025
Washington, D.C.
Nonfarm payrolls increase slowed to 143,000 in January from the upwardly revised 307,000 in December.
The jobless rate edged down 4.0%, and wages inched up 0.5% from the previous month and increased the annual growth to 4.1%, according to the latest data released by the Bureau of Labor Statistics.
The U.S. economy added an average of 166,000 jobs a month, totaling 1.99 million in 2024, slower than the average monthly increase of 225,000, totaling 2.7 million in 2022.
Despite the slowdown in job growth, policymakers are likely to focus on the wage increase, which is far higher and inconsistent with the Fed's target rate of 2%.
The change in total nonfarm payroll employment for November was revised up by 49,000 to 261,000, and for December was revised up by 51,000 to 307,000.
With these revisions, employment in November and December combined is 100,000 higher than previously reported.
U.S. Job Growth Slowed by Solid In January, Wage Growth Supports Fed's Rate Case
Brian Turner
08 Feb, 2025
Washington, D.C.
Nonfarm payrolls increase slowed to 143,000 in January from the upwardly revised 307,000 in December.
The jobless rate edged down 4.0%, and wages inched up 0.5% from the previous month and increased the annual growth to 4.1%, according to the latest data released by the Bureau of Labor Statistics.
The U.S. economy added an average of 166,000 jobs a month, totaling 1.99 million in 2024, slower than the average monthly increase of 225,000, totaling 2.7 million in 2022.
Despite the slowdown in job growth, policymakers are likely to focus on the wage increase, which is far higher and inconsistent with the Fed's target rate of 2%.
The change in total nonfarm payroll employment for November was revised up by 49,000 to 261,000, and for December was revised up by 51,000 to 307,000.
With these revisions, employment in November and December combined is 100,000 higher than previously reported.