Market Update
Benchmark Indexes In Germany and UK Hover Near Record Highs, Germany's Jobless Rate Advanced to 4-Year High
Bridgette Randall
31 Jan, 2025
London
Stock market indexes across Europe advanced amid hopes of additional rate cuts in the near future, and investors reviewed the latest batch of positive earnings.
Benchmark indexes in Paris, Frankfurt, Milan, and London advanced a day after the European Central Bank delivered a 25 basis point rate cut.
Market sentiment was positive after the central bank showed its willingness to cut rates at the next meeting if economic data warrants.
Policymakers confirmed that inflation is developing as estimated and it is on the downward path to the target rate of 2%, paving the way for the central bank to deliver additional rate cuts in the year.
Economists are anticipating at least three more rate cuts totaling 75 basis points in 2025.
Earlier in the week, the statistical agency of the European Union confirmed weak economic growth in the fourth quarter, largely because of shrinking activities in Germany and France.
Investors reacted positively to the latest batch of earnings, including results from Novartis, Hexagon, Smiths Group, and ATOSS Software.
On the economic front, investors reviewed the latest uptick in consumer price inflation in France, the German jobless rate, and Spain's retail sales.
France's Consumer Inflation Accelerated In January
Consumer price inflation in France rose to 1.4% in January from 1.3% in December, according to the latest data released by the statistical agency INSEE.
CPI advanced for the fourth month in a row and reached the highest since September, when it dropped to 1.1%, the lowest since 2021.
The latest pace of annual increase in inflation was driven by a rebound in manufactured goods prices and a renewed acceleration in energy prices, partially offset by weakness in service prices.
Germany's Jobless Rate Extended Recent Increases In January
Germany's seasonally adjusted jobless rate increased to 6.2% in January, after holding steady at 6.1% for three months to December, according to the latest data released by the Ministry of Labor.
The number of unemployed increased by 11,000 to 2.88 million, driving the jobless rate to the highest since May 2020, when it dropped to 5.0%.
Europe Indexes and Yields
The DAX index moved higher by 0.06% to 21,739.32; the CAC-40 index climbed 0.4% to 7,972.21; and the FTSE 100 index advanced by 0.4% to 8,682.65.
The yield on 10-year German bonds inched higher to 2.48%, French bonds declined to 3.23%, the UK gilts moved down to 4.54%, and Italian bonds edged lower to 3.57%.
The euro declined to $1.04; the British pound was lower at $1.24; and the U.S. dollar was higher and traded at 91.13 Swiss cents.
Brent crude decreased $0.02 to $75.92 a barrel, and the Dutch TTF natural gas was higher by €0.17 to €49.91 per MWh.
Europe Stock Movers
Novartis AG jumped 3.8% to CHF 97.40 after the Swiss pharmaceutical company reported better-than-expected sales in the fourth quarter, and the company lifted its dividend.
Hexagon AB soared 8.2% to 128.55 krona after the Swedish engineering company reported an unexpected increase in its operating profit.
ATOSS Software SE jumped 4.7% to €120.0 after the workforce management software developer proposed to increase the dividend after profit advanced in the fourth quarter.
SKF AB decreased 1.6% to 224.20 krona after the Swedish bearing and seal manufacturing company reported a 3.1% decline in organic sales in the fourth quarter.
Smiths Group plc soared 11.5% to 2,084.0 pence after the UK-based diversified industrial company announced a number of steps to improve its operations.
In addition, the company announced its plans to expand its stock repurchase program to £500 million from £150 million and extended the period to December 2025 from March 2025.
Benchmark Indexes In Germany and UK Hover Near Record Highs, Germany's Jobless Rate Advanced to 4-Year High
Bridgette Randall
31 Jan, 2025
London
Stock market indexes across Europe advanced amid hopes of additional rate cuts in the near future, and investors reviewed the latest batch of positive earnings.
Benchmark indexes in Paris, Frankfurt, Milan, and London advanced a day after the European Central Bank delivered a 25 basis point rate cut.
Market sentiment was positive after the central bank showed its willingness to cut rates at the next meeting if economic data warrants.
Policymakers confirmed that inflation is developing as estimated and it is on the downward path to the target rate of 2%, paving the way for the central bank to deliver additional rate cuts in the year.
Economists are anticipating at least three more rate cuts totaling 75 basis points in 2025.
Earlier in the week, the statistical agency of the European Union confirmed weak economic growth in the fourth quarter, largely because of shrinking activities in Germany and France.
Investors reacted positively to the latest batch of earnings, including results from Novartis, Hexagon, Smiths Group, and ATOSS Software.
On the economic front, investors reviewed the latest uptick in consumer price inflation in France, the German jobless rate, and Spain's retail sales.
France's Consumer Inflation Accelerated In January
Consumer price inflation in France rose to 1.4% in January from 1.3% in December, according to the latest data released by the statistical agency INSEE.
CPI advanced for the fourth month in a row and reached the highest since September, when it dropped to 1.1%, the lowest since 2021.
The latest pace of annual increase in inflation was driven by a rebound in manufactured goods prices and a renewed acceleration in energy prices, partially offset by weakness in service prices.
Germany's Jobless Rate Extended Recent Increases In January
Germany's seasonally adjusted jobless rate increased to 6.2% in January, after holding steady at 6.1% for three months to December, according to the latest data released by the Ministry of Labor.
The number of unemployed increased by 11,000 to 2.88 million, driving the jobless rate to the highest since May 2020, when it dropped to 5.0%.
Europe Indexes and Yields
The DAX index moved higher by 0.06% to 21,739.32; the CAC-40 index climbed 0.4% to 7,972.21; and the FTSE 100 index advanced by 0.4% to 8,682.65.
The yield on 10-year German bonds inched higher to 2.48%, French bonds declined to 3.23%, the UK gilts moved down to 4.54%, and Italian bonds edged lower to 3.57%.
The euro declined to $1.04; the British pound was lower at $1.24; and the U.S. dollar was higher and traded at 91.13 Swiss cents.
Brent crude decreased $0.02 to $75.92 a barrel, and the Dutch TTF natural gas was higher by €0.17 to €49.91 per MWh.
Europe Stock Movers
Novartis AG jumped 3.8% to CHF 97.40 after the Swiss pharmaceutical company reported better-than-expected sales in the fourth quarter, and the company lifted its dividend.
Hexagon AB soared 8.2% to 128.55 krona after the Swedish engineering company reported an unexpected increase in its operating profit.
ATOSS Software SE jumped 4.7% to €120.0 after the workforce management software developer proposed to increase the dividend after profit advanced in the fourth quarter.
SKF AB decreased 1.6% to 224.20 krona after the Swedish bearing and seal manufacturing company reported a 3.1% decline in organic sales in the fourth quarter.
Smiths Group plc soared 11.5% to 2,084.0 pence after the UK-based diversified industrial company announced a number of steps to improve its operations.
In addition, the company announced its plans to expand its stock repurchase program to £500 million from £150 million and extended the period to December 2025 from March 2025.
India Movers: Adani Enterprises, Adani Ports, Bajaj Finserv, Bank of Baroda, Biocon, Dabur, GAIL, Geojit Financial, Kalyan Jewellers, L&T
Arun Goswami
31 Jan, 2025
Mumbai
The Sensex and the Nifty indexes extended gains for the fourth session in a row. Benchmark indexes advance 1.5% after closing down in the previous three consecutive weeks.
The Sensex index increased by 0.4% to 77,081.03, and the Nifty index advanced by 0.5% to 23,375.80.
On the Mumbai stock exchange, 47 stocks traded at their 52-week highs, and 56 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 traded at a record of 86.64 against the U.S. dollar.
Kalyan Jewellers India Ltd. increased 8% to ₹475.85, and the company reported a sharp jump in revenue and earnings in the December quarter.
Consolidated revenue in the December quarter increased to ₹7,318.2 crore from ₹5,243.2 crore, after-tax profit rose to ₹218.7 crore from ₹182.4 crore, and diluted earnings per share advanced to ₹2.12 from ₹1.75 a year ago.
Geojit Financial Services Ltd. decreased 6% to ₹86.70 after the company reported a decline in net income in the December quarter.
Consolidated revenue in the December quarter increased to ₹172.1 crore from ₹153.9 crore, net income dropped to ₹370.4 crore from ₹379.1 crore, and diluted earnings per share fell to ₹1.30 from ₹1.39 a year ago.
Adani Ports and Special Economic Zone Ltd. increased 1.1% to ₹1,088.65, and the company reported a 12% increase in revenue in the December quarter.
Consolidated revenue in the December quarter increased to ₹8,186.90 crore from ₹7,426.95 crore, after-tax profit rose to ₹2,518.39 crore from ₹2,208.21 crore, and diluted earnings per share jumped to ₹11.67 from ₹10.22 a year ago.
Adani Enterprises Ltd. fell 0.05% to ₹2,251, and the company reported an 88% plunge in quarterly profit from a year ago.
Consolidated revenue in the December quarter decreased to ₹23,500.54 crore from ₹25,540.35 crore, net income plunged to ₹228.64 crore from ₹1,972.75 crore, and diluted earnings per share fell to 4 paisa from ₹16.10 a year ago.
Gail (India) Ltd. advanced 3.3% to ₹172.50 after the company reported a 28% increase in net income in the fiscal third quarter ending in December.
Consolidated revenue in the December quarter increased to ₹37,315.11 crore from ₹35,181.78 crore, after-tax profit rose to ₹4,084.24 crore from ₹3,193.34 crore, and diluted earnings per share jumped to ₹6.21 from ₹4.86 a year ago.
Tata Consumer Products Ltd. increased 3.2% to ₹998.50, and the company reported a marginal decline in the December quarter profit.
Consolidated revenue in the December quarter increased to ₹4,495.16 crore from ₹3,863.51 crore, net income fell to ₹299.8 crore from ₹315.53 crore, and diluted earnings per share dropped to ₹2.82 from ₹2.97 a year ago.
Dabur India Ltd. decreased 0.6% to ₹530.30, and the company reported an increase in revenue and earnings in the December quarter.
Consolidated revenue in the December quarter increased to ₹3,483.3 crore from ₹3,382.4 crore, after-tax profit rose to ₹515.8 crore from ₹506.4 crore, and diluted earnings per share advanced to ₹2.94 from ₹2.90 a year ago.
Biocon Ltd. rose 1.6% to ₹362.95 despite the company reporting an 89% plunge in consolidated profit in the December quarter.
Consolidated revenue in the December quarter declined to ₹38,562 crore from ₹45,192 crore, net income dropped to ₹81.1 crore from ₹753.3 crore, and diluted earnings per share fell to 21 paisa from ₹5.51 a year ago.
Bank of Baroda decreased 4.3% to ₹212.90 despite the company saying profit soared 9% in the fiscal third quarter.
Consolidated revenue in the December quarter increased to ₹37,732.5 crore from ₹35,084 crore, after-tax profit rose to ₹5,213.7 crore from ₹4,788.5 crore, and diluted earnings per share jumped to ₹10.08 from ₹9.26 a year ago.
Bajaj Finserv advanced 0.4% to ₹1,752.25 after the company reported a rise in revenue and net income in the December quarter.
Consolidated revenue in the December quarter advanced to ₹32,041.8 crore from ₹29,038.4 crore, net income increased to ₹2,231 crore from ₹2,157.7 crore, and diluted earnings per share rose to ₹13.9 from ₹13.4 a year ago.
Larsen & Toubro Ltd. soared 4% to ₹3,569.80 after the company reported a 17% increase in revenue in the fiscal third quarter ending in December.
Consolidated revenue in the December quarter increased to ₹65,635.7 crore from ₹55,965.6 crore, after-tax profit rose to ₹4,001.03 crore from ₹3,594.51 crore, and diluted earnings per share advanced to ₹24.41 from ₹21.42 a year ago.
India Movers: Adani Enterprises, Adani Ports, Bajaj Finserv, Bank of Baroda, Biocon, Dabur, GAIL, Geojit Financial, Kalyan Jewellers, L&T
Arun Goswami
31 Jan, 2025
Mumbai
The Sensex and the Nifty indexes extended gains for the fourth session in a row. Benchmark indexes advance 1.5% after closing down in the previous three consecutive weeks.
The Sensex index increased by 0.4% to 77,081.03, and the Nifty index advanced by 0.5% to 23,375.80.
On the Mumbai stock exchange, 47 stocks traded at their 52-week highs, and 56 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 traded at a record of 86.64 against the U.S. dollar.
Kalyan Jewellers India Ltd. increased 8% to ₹475.85, and the company reported a sharp jump in revenue and earnings in the December quarter.
Consolidated revenue in the December quarter increased to ₹7,318.2 crore from ₹5,243.2 crore, after-tax profit rose to ₹218.7 crore from ₹182.4 crore, and diluted earnings per share advanced to ₹2.12 from ₹1.75 a year ago.
Geojit Financial Services Ltd. decreased 6% to ₹86.70 after the company reported a decline in net income in the December quarter.
Consolidated revenue in the December quarter increased to ₹172.1 crore from ₹153.9 crore, net income dropped to ₹370.4 crore from ₹379.1 crore, and diluted earnings per share fell to ₹1.30 from ₹1.39 a year ago.
Adani Ports and Special Economic Zone Ltd. increased 1.1% to ₹1,088.65, and the company reported a 12% increase in revenue in the December quarter.
Consolidated revenue in the December quarter increased to ₹8,186.90 crore from ₹7,426.95 crore, after-tax profit rose to ₹2,518.39 crore from ₹2,208.21 crore, and diluted earnings per share jumped to ₹11.67 from ₹10.22 a year ago.
Adani Enterprises Ltd. fell 0.05% to ₹2,251, and the company reported an 88% plunge in quarterly profit from a year ago.
Consolidated revenue in the December quarter decreased to ₹23,500.54 crore from ₹25,540.35 crore, net income plunged to ₹228.64 crore from ₹1,972.75 crore, and diluted earnings per share fell to 4 paisa from ₹16.10 a year ago.
Gail (India) Ltd. advanced 3.3% to ₹172.50 after the company reported a 28% increase in net income in the fiscal third quarter ending in December.
Consolidated revenue in the December quarter increased to ₹37,315.11 crore from ₹35,181.78 crore, after-tax profit rose to ₹4,084.24 crore from ₹3,193.34 crore, and diluted earnings per share jumped to ₹6.21 from ₹4.86 a year ago.
Tata Consumer Products Ltd. increased 3.2% to ₹998.50, and the company reported a marginal decline in the December quarter profit.
Consolidated revenue in the December quarter increased to ₹4,495.16 crore from ₹3,863.51 crore, net income fell to ₹299.8 crore from ₹315.53 crore, and diluted earnings per share dropped to ₹2.82 from ₹2.97 a year ago.
Dabur India Ltd. decreased 0.6% to ₹530.30, and the company reported an increase in revenue and earnings in the December quarter.
Consolidated revenue in the December quarter increased to ₹3,483.3 crore from ₹3,382.4 crore, after-tax profit rose to ₹515.8 crore from ₹506.4 crore, and diluted earnings per share advanced to ₹2.94 from ₹2.90 a year ago.
Biocon Ltd. rose 1.6% to ₹362.95 despite the company reporting an 89% plunge in consolidated profit in the December quarter.
Consolidated revenue in the December quarter declined to ₹38,562 crore from ₹45,192 crore, net income dropped to ₹81.1 crore from ₹753.3 crore, and diluted earnings per share fell to 21 paisa from ₹5.51 a year ago.
Bank of Baroda decreased 4.3% to ₹212.90 despite the company saying profit soared 9% in the fiscal third quarter.
Consolidated revenue in the December quarter increased to ₹37,732.5 crore from ₹35,084 crore, after-tax profit rose to ₹5,213.7 crore from ₹4,788.5 crore, and diluted earnings per share jumped to ₹10.08 from ₹9.26 a year ago.
Bajaj Finserv advanced 0.4% to ₹1,752.25 after the company reported a rise in revenue and net income in the December quarter.
Consolidated revenue in the December quarter advanced to ₹32,041.8 crore from ₹29,038.4 crore, net income increased to ₹2,231 crore from ₹2,157.7 crore, and diluted earnings per share rose to ₹13.9 from ₹13.4 a year ago.
Larsen & Toubro Ltd. soared 4% to ₹3,569.80 after the company reported a 17% increase in revenue in the fiscal third quarter ending in December.
Consolidated revenue in the December quarter increased to ₹65,635.7 crore from ₹55,965.6 crore, after-tax profit rose to ₹4,001.03 crore from ₹3,594.51 crore, and diluted earnings per share advanced to ₹24.41 from ₹21.42 a year ago.
Global Markets React to Local Earnings as Attention Shifts Away from Central Banks
Alexander Garcia
30 Jan, 2025
Miami
Wall Street indexes traded around the flatline, and investors reviewed the latest batch of earnings.
Investors turned cautious a day after the Federal Reserve poured cold water over imminent rate-cut expectations, citing elevated inflation.
The S&P 500 index increased 0.2%, and the Nasdaq Composite declined 0.2%, and investors reviewed a slew of corporate results, including updates from Microsoft, Meta, Tesla, and IBM.
Investor sentiment has been on the defensive after the emergence of a cheaper chatbot from a Chinese startup raised worries about the need for expensive computer servers using advanced chips made by American companies.
Moreover, market sentiment wavered after the GDP growth in the fourth quarter slowed to an annual pace of 2.3%, the U.S. Bureau of Economic Analysis reported Thursday in its flash estimate.
The U.S. economy expanded at the slowest pace in three quarters and slowed from 3.1% in the third quarter, according to the preliminary estimate released by the government agency.
The Federal Reserve left the fed funds rate range unrevised between 4.25% and 4.50% and halted its rate-cutting cycle after trimming in the previous three meetings.
Policymakers are likely to hold rates steady at the end of the next meeting on March 19, until a solid evidence emerges of sustained decline in inflation.
While the Fed's tough talk on inflation garners headlines, interest rates have been far from restrictive for more than a year, and inflation in the service sector and core inflation have been significantly higher than the target rate of 2% and showing no sign of easing for more than nine months.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.2% to 6,050.44, the Nasdaq Composite edged down 0.1% to 19,609.31, and the Russell 2000 index traded up 1.2% to 2,310.52.
The yield on 2-year Treasury notes edged lower to 4.21%, 10-year Treasury notes dropped to 4.50%, and 30-year Treasury bonds eased to 4.74%.
WTI crude oil decreased $0.12 to $72.52 a barrel, and natural gas prices edged higher by $0.02 to $3.19 a thermal unit.
Gold rose by $21.62 to 2,781.76 an ounce, and silver edged up by $0.35 to $31.21.
The dollar index, which weighs the US currency against a basket of foreign currencies, dropped 0.03 to 107.98 and traded at a two-year high.
U.S. Stock Movers
Microsoft Corp dropped 4.6% to $421.85 despite the company posting strong results for its fiscal 2025 second quarter ending in December, helped by a 21% increase in cloud service sales.
However, the software company's revenue outlook in the current quarter disappointed some investors.
Meta Platforms Inc surged 2.3% to $692 after the parent company of Facebook, Instagram, and WhatsApp posted strong earnings for the fourth quarter ending in December.
Tesla gained 3% to $400.86 after the electric vehicle maker posted mixed earnings in the fourth quarter ending in December.
IBM soared 9.4% to $250.29 after the legacy technology company reported fourth-quarter results that surpassed market expectations.
The company said its software business expanded by double digits in the second half, and the generative artificial intelligence business order book increased by $2 billion to $5 billion.
UPS plunged 14.2% to $114.72 after the parcel delivery company said it reached a deal with Amazon, its largest customer, to lower shipment volume by 50% by the second half of 2026.
UPS was under pressure after the company reported better-than-expected earnings, but revenue fell short of market expectations in the fourth quarter.
European Markets Extended Gains After ECB Cuts Rates
European stock market indexes extended the three-day rally, and investors welcomed rate decisions by the European Central Bank.
Benchmark indexes in Frankfurt, Paris, Milan, and London advanced after the central bank delivered on the widely anticipated 25 basis point rate cut.
The European Central Bank lowered its deposit rate to 2.75%, its main refinancing rate to 2.9%, and its marginal lending rate to 3.15%, effective February 5.
The central bank said inflationary pressures are still elevated, largely because of the delayed wage increases and price adjustments, but wage growth is moderating, and corporations are absorbing some of the higher costs of operations.
The central bank signaled that additional rate cuts are likely if inflation continues to fall as estimated by policymakers.
"The disinflation process is well on track. Inflation has continued to develop broadly in line with the staff projections and is set to return to the Governing Council’s 2% medium-term target in the course of this year," the ECB noted in a statement released after the meeting.
Most measures of underlying inflation suggest that inflation will settle at around the target on a sustained basis, according to the governing council's estimate.
Eurozone GDP Growth Unexpectedly Stalled In Fourth Quarter
The Euro Area's GDP in the fourth quarter unexpectedly stalled from the previous quarter, Eurostat, the statistical agency of the region, reported Wednesday.
Economic activities rose at an annual pace of 0.9% in the fourth quarter, but the growth was overshadowed by the ongoing weakness in Germany and France.
For the full year 2024, GDP expanded at an annual pace of 0.7% in the euro area and 0.8% in the European Union.
Separately, France's statistical agency, INSEE, reported economic growth unexpectedly contracted for the first time in nearly two years in the fourth quarter.
Gross domestic product shrank 0.1% sequentially after expanding at 0.3% in the third quarter.
Two separate reports supported the case for the European Central Bank to continue to lower key lending rates and soften the economic contraction.
Spain's Annual CPI Jumped to 7-Month High in January
Spain's annual inflation rate advanced for the fourth consecutive month and reached the highest in seven months, the National Statistics Institute reported Thursday.
The annual pace of inflation in January rose to 3.0% from 2.8% in December, largely driven by an increase in fuel prices.
However, the core rate of inflation, which excludes volatile food and energy prices, slowed to 2.4% from a four-month high of 2.6% in December.
From the previous month, the consumer price inflation increased by 0.2%, following a 0.5% rise in December.
However, the EU-harmonized consumer inflation advanced at an annual pace of 2.9% year-on-year and decreased by 0.1% from the previous month.
Europe Indexes and Yields
The DAX index moved higher by 0.3% to 21,694.57; the CAC-40 index climbed 0.5% to 7,909.78; and the FTSE 100 index advanced by 0.2% to 8,574.94.
The yield on 10-year German bonds inched lower to 2.53%, French bonds declined to 3.27%, the UK gilts moved up to 4.60%, and Italian bonds edged lower to 3.62%.
The euro was flat at $1.04; the British pound was lower at $1.24; and the U.S. dollar was higher and traded at 90.75 Swiss cents.
Brent crude decreased $0.43 to $76.15 a barrel, and the Dutch TTF natural gas was higher by €0.17 to €49.91 per MWh.
Europe Stock Movers
Nokia gained 2.3% to €4.40 after the mobile technology company posted strong fourth-quarter results ending in December.
ABB Ltd. increased 1.3% to CHF 52.28 after the Swiss engineering company reported an increase in revenue, profit, and orders in the fourth quarter.
The company's board also proposed to increase an ordinary dividend to 0.90 Swiss franc compared to 0.84 Swiss franc in the previous year.
The company also proposed a new $1.5 billion stock repurchase plan, ending on January 28, 2026.
Deutsche Bank decreased 3.5% to €18.85, and Germany's largest bank announced a larger-than-expected provision decline in earnings in the fourth quarter and 2024 as a result of a higher provision for legal expenses and restructuring costs.
Electrolux AB dropped 6% to 103.45 krona after the Swedish home appliance maker swung to a profit in the fourth quarter, but the company signaled market uncertainty in North America.
The appliance maker skipped a dividend for the third year in a row.
H&M declined 5.1% to €12.81 after the Swedish apparel retailer reported weaker-than-expected sales in the fourth quarter.
Sensex Extends 3-Day Rally and Erases Weekly Losses
Stocks in Mumbai extended gains for the third session in a row, and benchmark indexes erased sharp losses of Monday.
The S&P 500 and Nifty indexes advanced 0.4% as investors reviewed the latest batch of earnings and debated economic growth outlook ahead of the release of the Union Budget this weekend.
Financial markets are looking forward to the government's plan to increase renewable electric power production, improve water distribution, modernize the railway network, and provide incentives to expand the manufacturing sector.
The Reserve Bank of India is set to announce its rate decisions next week, and investors are anticipating the central bank to hold rates steady.
The U.S. Federal Reserve left its key lending rate range unrevised, citing elevated inflation, after trimming rates in three previous meetings in a row.
The Fed funds rate range was left unrevised between 4.25% and 4.50%, and it was confirmed that the policymakers are struggling to lower inflation to its long-term target rate of 2% despite eleven rate hikes over 2022 and 2023.
European markets advanced following the latest batch of positive earnings, and investors held out for a rate cut of at least 25 basis points after the policy meeting next week.
Stock Indexes and Bond Yields
The Sensex index increased by 0.4% to 76,855.46, and the Nifty index increased by 0.5% to 23,290.70.
On the Mumbai stock exchange, 44 stocks traded at their 52-week highs, and 56 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 and traded at 86.57 against the U.S. dollar.
The gold price increased by 0.3% to ₹81,128 per ten grams, and silver edged up by 0.6% to ₹92,400 per kilo.
Crude oil rose by 0.1% to ₹6,297 per barrel, and natural gas rose by 0.2% to ₹274.1 per thermal unit.
Stock Movers
Blue Dart Express Ltd. increased 0.4% to ₹6431.65, and the company reported an 8% increase in revenue and a 9% decline in profit in the December quarter.
Tata Motors Ltd. dropped 8.1% to ₹691.80, and the company reported an increase in revenue and a 22% decline in profit in the December quarter.
Maruti Suzuki India Ltd. increased 3% to ₹12,011.50 after the company reporting an increase in revenue and earnings.
Ambuja Cements Ltd. decreased 4% to ₹522.20 after the company reported a 24% increase in net income but margins fell sharply in the December quarter.
Indian Bank increased 6% to ₹544.70, and the company reported a marginal increase in earnings in the fiscal third quarter.
Adani Power Ltd. decreased 0.4% to ₹520.50 after the company reporting an increase in revenue and earnings in the fiscal third quarter.
Voltas Ltd. dropped 11.2% to ₹1,449.95 despite the company swinging to a profit from a year ago in the December quarter.
Bajaj Finance Limited increased 4.5% to ₹8110.15, and the company reported revenue in the December quarter rose 28% from a year ago.
Global Markets React to Local Earnings as Attention Shifts Away from Central Banks
Alexander Garcia
30 Jan, 2025
Miami
Wall Street indexes traded around the flatline, and investors reviewed the latest batch of earnings.
Investors turned cautious a day after the Federal Reserve poured cold water over imminent rate-cut expectations, citing elevated inflation.
The S&P 500 index increased 0.2%, and the Nasdaq Composite declined 0.2%, and investors reviewed a slew of corporate results, including updates from Microsoft, Meta, Tesla, and IBM.
Investor sentiment has been on the defensive after the emergence of a cheaper chatbot from a Chinese startup raised worries about the need for expensive computer servers using advanced chips made by American companies.
Moreover, market sentiment wavered after the GDP growth in the fourth quarter slowed to an annual pace of 2.3%, the U.S. Bureau of Economic Analysis reported Thursday in its flash estimate.
The U.S. economy expanded at the slowest pace in three quarters and slowed from 3.1% in the third quarter, according to the preliminary estimate released by the government agency.
The Federal Reserve left the fed funds rate range unrevised between 4.25% and 4.50% and halted its rate-cutting cycle after trimming in the previous three meetings.
Policymakers are likely to hold rates steady at the end of the next meeting on March 19, until a solid evidence emerges of sustained decline in inflation.
While the Fed's tough talk on inflation garners headlines, interest rates have been far from restrictive for more than a year, and inflation in the service sector and core inflation have been significantly higher than the target rate of 2% and showing no sign of easing for more than nine months.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.2% to 6,050.44, the Nasdaq Composite edged down 0.1% to 19,609.31, and the Russell 2000 index traded up 1.2% to 2,310.52.
The yield on 2-year Treasury notes edged lower to 4.21%, 10-year Treasury notes dropped to 4.50%, and 30-year Treasury bonds eased to 4.74%.
WTI crude oil decreased $0.12 to $72.52 a barrel, and natural gas prices edged higher by $0.02 to $3.19 a thermal unit.
Gold rose by $21.62 to 2,781.76 an ounce, and silver edged up by $0.35 to $31.21.
The dollar index, which weighs the US currency against a basket of foreign currencies, dropped 0.03 to 107.98 and traded at a two-year high.
U.S. Stock Movers
Microsoft Corp dropped 4.6% to $421.85 despite the company posting strong results for its fiscal 2025 second quarter ending in December, helped by a 21% increase in cloud service sales.
However, the software company's revenue outlook in the current quarter disappointed some investors.
Meta Platforms Inc surged 2.3% to $692 after the parent company of Facebook, Instagram, and WhatsApp posted strong earnings for the fourth quarter ending in December.
Tesla gained 3% to $400.86 after the electric vehicle maker posted mixed earnings in the fourth quarter ending in December.
IBM soared 9.4% to $250.29 after the legacy technology company reported fourth-quarter results that surpassed market expectations.
The company said its software business expanded by double digits in the second half, and the generative artificial intelligence business order book increased by $2 billion to $5 billion.
UPS plunged 14.2% to $114.72 after the parcel delivery company said it reached a deal with Amazon, its largest customer, to lower shipment volume by 50% by the second half of 2026.
UPS was under pressure after the company reported better-than-expected earnings, but revenue fell short of market expectations in the fourth quarter.
European Markets Extended Gains After ECB Cuts Rates
European stock market indexes extended the three-day rally, and investors welcomed rate decisions by the European Central Bank.
Benchmark indexes in Frankfurt, Paris, Milan, and London advanced after the central bank delivered on the widely anticipated 25 basis point rate cut.
The European Central Bank lowered its deposit rate to 2.75%, its main refinancing rate to 2.9%, and its marginal lending rate to 3.15%, effective February 5.
The central bank said inflationary pressures are still elevated, largely because of the delayed wage increases and price adjustments, but wage growth is moderating, and corporations are absorbing some of the higher costs of operations.
The central bank signaled that additional rate cuts are likely if inflation continues to fall as estimated by policymakers.
"The disinflation process is well on track. Inflation has continued to develop broadly in line with the staff projections and is set to return to the Governing Council’s 2% medium-term target in the course of this year," the ECB noted in a statement released after the meeting.
Most measures of underlying inflation suggest that inflation will settle at around the target on a sustained basis, according to the governing council's estimate.
Eurozone GDP Growth Unexpectedly Stalled In Fourth Quarter
The Euro Area's GDP in the fourth quarter unexpectedly stalled from the previous quarter, Eurostat, the statistical agency of the region, reported Wednesday.
Economic activities rose at an annual pace of 0.9% in the fourth quarter, but the growth was overshadowed by the ongoing weakness in Germany and France.
For the full year 2024, GDP expanded at an annual pace of 0.7% in the euro area and 0.8% in the European Union.
Separately, France's statistical agency, INSEE, reported economic growth unexpectedly contracted for the first time in nearly two years in the fourth quarter.
Gross domestic product shrank 0.1% sequentially after expanding at 0.3% in the third quarter.
Two separate reports supported the case for the European Central Bank to continue to lower key lending rates and soften the economic contraction.
Spain's Annual CPI Jumped to 7-Month High in January
Spain's annual inflation rate advanced for the fourth consecutive month and reached the highest in seven months, the National Statistics Institute reported Thursday.
The annual pace of inflation in January rose to 3.0% from 2.8% in December, largely driven by an increase in fuel prices.
However, the core rate of inflation, which excludes volatile food and energy prices, slowed to 2.4% from a four-month high of 2.6% in December.
From the previous month, the consumer price inflation increased by 0.2%, following a 0.5% rise in December.
However, the EU-harmonized consumer inflation advanced at an annual pace of 2.9% year-on-year and decreased by 0.1% from the previous month.
Europe Indexes and Yields
The DAX index moved higher by 0.3% to 21,694.57; the CAC-40 index climbed 0.5% to 7,909.78; and the FTSE 100 index advanced by 0.2% to 8,574.94.
The yield on 10-year German bonds inched lower to 2.53%, French bonds declined to 3.27%, the UK gilts moved up to 4.60%, and Italian bonds edged lower to 3.62%.
The euro was flat at $1.04; the British pound was lower at $1.24; and the U.S. dollar was higher and traded at 90.75 Swiss cents.
Brent crude decreased $0.43 to $76.15 a barrel, and the Dutch TTF natural gas was higher by €0.17 to €49.91 per MWh.
Europe Stock Movers
Nokia gained 2.3% to €4.40 after the mobile technology company posted strong fourth-quarter results ending in December.
ABB Ltd. increased 1.3% to CHF 52.28 after the Swiss engineering company reported an increase in revenue, profit, and orders in the fourth quarter.
The company's board also proposed to increase an ordinary dividend to 0.90 Swiss franc compared to 0.84 Swiss franc in the previous year.
The company also proposed a new $1.5 billion stock repurchase plan, ending on January 28, 2026.
Deutsche Bank decreased 3.5% to €18.85, and Germany's largest bank announced a larger-than-expected provision decline in earnings in the fourth quarter and 2024 as a result of a higher provision for legal expenses and restructuring costs.
Electrolux AB dropped 6% to 103.45 krona after the Swedish home appliance maker swung to a profit in the fourth quarter, but the company signaled market uncertainty in North America.
The appliance maker skipped a dividend for the third year in a row.
H&M declined 5.1% to €12.81 after the Swedish apparel retailer reported weaker-than-expected sales in the fourth quarter.
Sensex Extends 3-Day Rally and Erases Weekly Losses
Stocks in Mumbai extended gains for the third session in a row, and benchmark indexes erased sharp losses of Monday.
The S&P 500 and Nifty indexes advanced 0.4% as investors reviewed the latest batch of earnings and debated economic growth outlook ahead of the release of the Union Budget this weekend.
Financial markets are looking forward to the government's plan to increase renewable electric power production, improve water distribution, modernize the railway network, and provide incentives to expand the manufacturing sector.
The Reserve Bank of India is set to announce its rate decisions next week, and investors are anticipating the central bank to hold rates steady.
The U.S. Federal Reserve left its key lending rate range unrevised, citing elevated inflation, after trimming rates in three previous meetings in a row.
The Fed funds rate range was left unrevised between 4.25% and 4.50%, and it was confirmed that the policymakers are struggling to lower inflation to its long-term target rate of 2% despite eleven rate hikes over 2022 and 2023.
European markets advanced following the latest batch of positive earnings, and investors held out for a rate cut of at least 25 basis points after the policy meeting next week.
Stock Indexes and Bond Yields
The Sensex index increased by 0.4% to 76,855.46, and the Nifty index increased by 0.5% to 23,290.70.
On the Mumbai stock exchange, 44 stocks traded at their 52-week highs, and 56 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 and traded at 86.57 against the U.S. dollar.
The gold price increased by 0.3% to ₹81,128 per ten grams, and silver edged up by 0.6% to ₹92,400 per kilo.
Crude oil rose by 0.1% to ₹6,297 per barrel, and natural gas rose by 0.2% to ₹274.1 per thermal unit.
Stock Movers
Blue Dart Express Ltd. increased 0.4% to ₹6431.65, and the company reported an 8% increase in revenue and a 9% decline in profit in the December quarter.
Tata Motors Ltd. dropped 8.1% to ₹691.80, and the company reported an increase in revenue and a 22% decline in profit in the December quarter.
Maruti Suzuki India Ltd. increased 3% to ₹12,011.50 after the company reporting an increase in revenue and earnings.
Ambuja Cements Ltd. decreased 4% to ₹522.20 after the company reported a 24% increase in net income but margins fell sharply in the December quarter.
Indian Bank increased 6% to ₹544.70, and the company reported a marginal increase in earnings in the fiscal third quarter.
Adani Power Ltd. decreased 0.4% to ₹520.50 after the company reporting an increase in revenue and earnings in the fiscal third quarter.
Voltas Ltd. dropped 11.2% to ₹1,449.95 despite the company swinging to a profit from a year ago in the December quarter.
Bajaj Finance Limited increased 4.5% to ₹8110.15, and the company reported revenue in the December quarter rose 28% from a year ago.
U.S. Movers: IBM, Meta Platforms, Microsoft, Tesla, UPS
Scott Peters
30 Jan, 2025
New York City
Microsoft Corp dropped 4.6% to $421.85 despite the company posting strong results for its fiscal 2025 second quarter ending in December, helped by a 21% increase in cloud service sales.
However, the software company's revenue outlook in the current quarter disappointed some investors.
Revenue increased to $69.63 billion from $62.02 billion; net income surged to $24.11 billion from $21.87 billion, and earnings per diluted share rose to $3.23 from $2.93 a year ago.
Cash and cash equivalents declined to $54.07 billion from $57.23 billion, driven by fewer short-term investments.
“Our artificial intelligence (AI) business has surpassed an annual sales run rate of $13 billion, up 175% year-over-year,” said Satya Nadella, chairman and chief executive officer of Microsoft.
Meta Platforms Inc surged 2.3% to $692 after the parent company of Facebook, Instagram, and WhatsApp posted strong earnings for the fourth quarter ending in December.
Revenue climbed 21% to $48.38 billion from $40.11 billion; net income jumped 49% to $20.84 billion from $14.02 billion, and earnings per diluted share rose to $8.02 from $5.33 a year ago.
Cash and cash equivalents increased to $43.89 billion from $41.86 billion a year earlier, brining to significantly higher total assets and lower income taxes.
Looking ahead to fiscal first quarter of 2025, the company estimates revenue of $39.5 billion to $41.8 billion, despite higher infrastructure costs.
In the fourth quarter total costs and expenses increased to $25.02 billion from $23.73 billion a year earlier.
Tesla gained 3% to $400.86 after the electric vehicle maker posted mixed earnings in the fourth quarter ending in December.
Revenue decreased 8% to $19.8 billion from $21.56 billion; net income slumped 71% to $2.32 billion from $7.93 billion, and earnings per diluted share fell to 66 cents from $2.27 a year ago.
Cash flow from operating activities declined to $2.33 billion from $7.94 billion a year earlier.
For the full year, model Y became the best-selling vehicle in China, and overall car sales also climbed in Europe, South Korea and the Philippines.
Semi-factory construction continued in the fourth quarter, with first truck builds scheduled to start by the end of 2025 and ramp beginning in early 2026.
The company is planning to ramp up Cybercab production at its Gigafactory in Texas in 2026.
IBM soared 9.4% to $250.29 after the legacy technology company reported fourth-quarter results that surpassed market expectations.
The company said its software business expanded by double digits in the second half, and the generative artificial intelligence business order book increased by $2 billion to $5 billion.
UPS plunged 14.2% to $114.72 after the parcel delivery company said it reached a deal with Amazon, its largest customer, to lower shipment volume by 50% by the second half of 2026.
UPS was under pressure after the company reported better-than-expected earnings, but revenue fell short of market expectations in the fourth quarter.
U.S. Movers: IBM, Meta Platforms, Microsoft, Tesla, UPS
Scott Peters
30 Jan, 2025
New York City
Microsoft Corp dropped 4.6% to $421.85 despite the company posting strong results for its fiscal 2025 second quarter ending in December, helped by a 21% increase in cloud service sales.
However, the software company's revenue outlook in the current quarter disappointed some investors.
Revenue increased to $69.63 billion from $62.02 billion; net income surged to $24.11 billion from $21.87 billion, and earnings per diluted share rose to $3.23 from $2.93 a year ago.
Cash and cash equivalents declined to $54.07 billion from $57.23 billion, driven by fewer short-term investments.
“Our artificial intelligence (AI) business has surpassed an annual sales run rate of $13 billion, up 175% year-over-year,” said Satya Nadella, chairman and chief executive officer of Microsoft.
Meta Platforms Inc surged 2.3% to $692 after the parent company of Facebook, Instagram, and WhatsApp posted strong earnings for the fourth quarter ending in December.
Revenue climbed 21% to $48.38 billion from $40.11 billion; net income jumped 49% to $20.84 billion from $14.02 billion, and earnings per diluted share rose to $8.02 from $5.33 a year ago.
Cash and cash equivalents increased to $43.89 billion from $41.86 billion a year earlier, brining to significantly higher total assets and lower income taxes.
Looking ahead to fiscal first quarter of 2025, the company estimates revenue of $39.5 billion to $41.8 billion, despite higher infrastructure costs.
In the fourth quarter total costs and expenses increased to $25.02 billion from $23.73 billion a year earlier.
Tesla gained 3% to $400.86 after the electric vehicle maker posted mixed earnings in the fourth quarter ending in December.
Revenue decreased 8% to $19.8 billion from $21.56 billion; net income slumped 71% to $2.32 billion from $7.93 billion, and earnings per diluted share fell to 66 cents from $2.27 a year ago.
Cash flow from operating activities declined to $2.33 billion from $7.94 billion a year earlier.
For the full year, model Y became the best-selling vehicle in China, and overall car sales also climbed in Europe, South Korea and the Philippines.
Semi-factory construction continued in the fourth quarter, with first truck builds scheduled to start by the end of 2025 and ramp beginning in early 2026.
The company is planning to ramp up Cybercab production at its Gigafactory in Texas in 2026.
IBM soared 9.4% to $250.29 after the legacy technology company reported fourth-quarter results that surpassed market expectations.
The company said its software business expanded by double digits in the second half, and the generative artificial intelligence business order book increased by $2 billion to $5 billion.
UPS plunged 14.2% to $114.72 after the parcel delivery company said it reached a deal with Amazon, its largest customer, to lower shipment volume by 50% by the second half of 2026.
UPS was under pressure after the company reported better-than-expected earnings, but revenue fell short of market expectations in the fourth quarter.
Wall Street Reviews Mega-Cap Tech Earnings, Fourth Quarter GDP Growth Slowest In Three Quarters
Barry Adams
30 Jan, 2025
New York City
Wall Street indexes lacked direction in Thursday's trading, and investors turned cautious a day after the Federal Reserve poured cold water over imminent rate cut expectations, citing elevated inflation.
The S&P 500 index decreased 0.2%, and the Nasdaq Composite declined 0.4%, and investors reviewed a slew of corporate results, including updates from Microsoft, Meta, Tesla, and IBM.
Investor sentiment has been on the defensive after the emergence of cheaper chatbot from a Chinese startup raised worries about the need for expensive computer servers using advanced chips made by American companies.
Moreover, market sentiment wavered after the GDP growth in the fourth quarter slowed to an annual pace of 2.3%, the U.S. Bureau of Economic Analysis reported Thursday in its flash estimate.
The U.S. economy expanded at the slowest pace in three quarters and slowed from 3.1% in the third quarter, according to the preliminary estimate released by the government agency.
The Federal Reserve left the fed funds rate range unrevised between 4.25% and 4.50% and halted its rate-cutting cycle after trimming in the previous three meetings.
Policymakers are likely to hold rates steady at the end of the next meeting on March 19, until a solid evidence emerges of sustained decline in inflation.
While the Fed's tough talk on inflation garners headlines, interest rates have been far from restrictive for more than a year, and inflation in the service sector and core inflation have been significantly higher than the target rate of 2% and showing no sign of easing for more than nine months.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.3% to 6,057.51, the Nasdaq Composite edged up 0.2% to 19,669.37, and the Russell 2000 index was down 0.3% to 2,283.10.
The yield on 2-year Treasury notes edged lower to 4.21%, 10-year Treasury notes dropped to 4.50%, and 30-year Treasury bonds eased to 4.74%.
WTI crude oil decreased $0.12 to $72.52 a barrel, and natural gas prices edged higher by $0.02 to $3.19 a thermal unit.
Gold rose by $21.62 to 2,781.76 an ounce, and silver edged up by $0.35 to $31.21.
The dollar index, which weighs the US currency against a basket of foreign currencies, dropped 0.03 to 107.98 and traded at a two-year high.
U.S. Stock Movers
Microsoft Corp dropped 4.6% to $421.85 despite the company posting strong results for its fiscal 2025 second quarter ending in December, helped by a 21% increase in cloud service sales.
However, the software company's revenue outlook in the current quarter disappointed some investors.
Meta Platforms Inc surged 2.3% to $692 after the parent company of Facebook, Instagram, and WhatsApp posted strong earnings for the fourth quarter ending in December.
Tesla gained 3% to $400.86 after the electric vehicle maker posted mixed earnings in the fourth quarter ending in December.
IBM soared 9.4% to $250.29 after the legacy technology company reported fourth-quarter results that surpassed market expectations.
The company said its software business expanded by double digits in the second half, and the generative artificial intelligence business order book increased by $2 billion to $5 billion.
UPS plunged 14.2% to $114.72 after the parcel delivery company said it reached a deal with Amazon, its largest customer, to lower shipment volume by 50% by the second half of 2026.
UPS was under pressure after the company reported better-than-expected earnings, but revenue fell short of market expectations in the fourth quarter.
Wall Street Reviews Mega-Cap Tech Earnings, Fourth Quarter GDP Growth Slowest In Three Quarters
Barry Adams
30 Jan, 2025
New York City
Wall Street indexes lacked direction in Thursday's trading, and investors turned cautious a day after the Federal Reserve poured cold water over imminent rate cut expectations, citing elevated inflation.
The S&P 500 index decreased 0.2%, and the Nasdaq Composite declined 0.4%, and investors reviewed a slew of corporate results, including updates from Microsoft, Meta, Tesla, and IBM.
Investor sentiment has been on the defensive after the emergence of cheaper chatbot from a Chinese startup raised worries about the need for expensive computer servers using advanced chips made by American companies.
Moreover, market sentiment wavered after the GDP growth in the fourth quarter slowed to an annual pace of 2.3%, the U.S. Bureau of Economic Analysis reported Thursday in its flash estimate.
The U.S. economy expanded at the slowest pace in three quarters and slowed from 3.1% in the third quarter, according to the preliminary estimate released by the government agency.
The Federal Reserve left the fed funds rate range unrevised between 4.25% and 4.50% and halted its rate-cutting cycle after trimming in the previous three meetings.
Policymakers are likely to hold rates steady at the end of the next meeting on March 19, until a solid evidence emerges of sustained decline in inflation.
While the Fed's tough talk on inflation garners headlines, interest rates have been far from restrictive for more than a year, and inflation in the service sector and core inflation have been significantly higher than the target rate of 2% and showing no sign of easing for more than nine months.
U.S. Stock Movers
Microsoft Corp dropped 4.6% to $421.85 despite the company posting strong results for its fiscal 2025 second quarter ending in December, helped by a 21% increase in cloud service sales.
However, the software company's revenue outlook in the current quarter disappointed some investors.
Meta Platforms Inc surged 2.3% to $692 after the parent company of Facebook, Instagram, and WhatsApp posted strong earnings for the fourth quarter ending in December.
Tesla gained 3% to $400.86 after the electric vehicle maker posted mixed earnings in the fourth quarter ending in December.
IBM soared 9.4% to $250.29 after the legacy technology company reported fourth-quarter results that surpassed market expectations.
The company said its software business expanded by double digits in the second half, and the generative artificial intelligence business order book increased by $2 billion to $5 billion.
UPS plunged 14.2% to $114.72 after the parcel delivery company said it reached a deal with Amazon, its largest customer, to lower shipment volume by 50% by the second half of 2026.
UPS was under pressure after the company reported better-than-expected earnings, but revenue fell short of market expectations in the fourth quarter.
Europe Movers: ABB Ltd., Deutsche Bank, Electrolux, H&M, Nokia, Shell plc, SThree Micro, Wizz Air
Inga Muller
30 Jan, 2025
Frankfurt
Stock market indexes in Europe extended a three-day rally ahead of the widely anticipated rate cut decisions.
The eurozone economy unexpectedly stalled in the fourth quarter, following a weakness in France and Germany. Spain's inflation accelerated to a seven-month high in January.
The DAX index moved higher by 0.3% to 21,694.57; the CAC-40 index climbed 0.5% to 7,909.78; and the FTSE 100 index advanced by 0.2% to 8,574.94.
The yield on 10-year German bonds inched lower to 2.53%, French bonds declined to 3.27%, the UK gilts moved up to 4.60%, and Italian bonds edged lower to 3.62%.
Nokia gained 2.3% to €4.40 after the mobile technology company posted strong fourth-quarter results ending in December.
Net sales surged 10% to €5.98 billion from €5.42 billion; operating profit jumped 72% to €917 million from €534 million, and earnings per diluted share swung to profit of 15 euro cents from a loss of 0.01 euro cents a year ago.
Comparable sales increased 10%, and gross margin expanded to 47.2% from 44.7% a year earlier.
Looking ahead to fiscal year 2025, Nokia estimates comparable operating profit between €1.9 billion and €2.4 billion, and free cash flow conversion between 50% and 80%.
The company proposed to pay a dividend of 14 euro cents on February 13 to shareholders on record as of February 4.
Nokia plans to return up to €600 million of cash to shareholders in tranches over a period of two years, according to its share buyback program started on March 20, 2024.
ABB Ltd. increased 1.3% to CHF 52.28 after the Swiss engineering company reported an increase in revenue, profit, and orders in the fourth quarter.
The company's board also proposed to increase an ordinary dividend to 0.90 Swiss franc compared to 0.84 Swiss franc in the previous year.
The company also proposed a new $1.5 billion stock repurchase plan, ending on January 28, 2026.
Deutsche Bank decreased 3.5% to €18.85, and Germany's largest bank announced a larger-than-expected provision decline in earnings in the fourth quarter and 2024 as a result of a higher provision for legal expenses and restructuring costs.
Electrolux AB dropped 6% to 103.45 krona after the Swedish home appliance maker swung to a profit in the fourth quarter, but the company signaled market uncertainty in North America.
The appliance maker skipped a dividend for the third year in a row.
Net sales increased 7% to 37.97 billion krona from 35.64 billion krona, income swung to profit of 150 million krona from a loss of 4.11 billion, and earnings per diluted share swung to profit of 56 krona cents from a loss of 15.23 krona a year ago.
Operating cash flow after investments declined to 2.66 billion krona from 3.87 billion krona a year earlier.
Looking ahead to fiscal year 2025 the company estimates reduced product costs and therefore earnings of 3.5 billion krona to 4.0 billion krona.
Wizz Air plunged 13% to 1,192 pence after the deep discount airline posted weak results for the fiscal third quarter 2025 ending in December.
Revenue declined 10.5% to €1.18 billion from €1.06 billion, and net loss widened to €241.1 million from a loss of €105.4 million a year ago.
Net debt climbed 7.3% to €5.14 billion from €4.79 billion a year earlier, despite a 0.7% increase of total cash.
H&M declined 5.1% to €12.81 after the Swedish apparel retailer reported weaker-than-expected sales in the fourth quarter.
Net sales fell to 62.19 billion krona from 62.65 billion; profit surged to 3.08 billion krona from 1.57 billion krona, and earnings per diluted share rose to 1.92 krona from 0.97 krona a year ago.
Cash and cash equivalents declined to 17.34 billion krona from 26.4 billion a year earlier, impacted by the later occurrence of Black Friday.
However, sales geared up in December and January, in a positive start to the new fiscal year, as online sales remain strong and customers welcome the women’s fashion collections and the company’s bargain prices.
Shell Plc gained 1.5% to 2,633 pence after the Anglo-Dutch oil and gas company posted strong results for the fourth quarter ending in December.
Income attributable to shareholders increased to $928 million from $474 million, and earnings per share rose to 15 cents from 0.07 cents a year ago.
Cash flow from operations jumped to $13.16 billion from $12.58 billion a year earlier, driven by lower debts and expenses.
Shell proposed a 4% increase in dividends to 36 cents per share and launched another share buyback program of $3.5 billion, which is expected to be completed over the next three months.
STMicroelectronics NV slumped 5.5% to €22.47 after the semiconductor company posted mixed results for its fourth quarter ending in December.
Revenue declined 22.4% to $3.32 billion from $4.28 billion; net income slumped 68.3% to $321 million from $1.08 billion, and earnings per diluted share fell 67.5% to 37 cents from $1.14 a year ago.
Free cash flow decreased to $128 million from $1.48 billion a year earlier.
For the first quarter of fiscal 2025 the company estimates net revenue of $2.51 billion, a decrease of 24.4% sequentially, and gross margin of 33.8%.
Europe Movers: ABB Ltd., Deutsche Bank, Electrolux, H&M, Nokia, Shell plc, SThree Micro, Wizz Air
Inga Muller
30 Jan, 2025
Frankfurt
Stock market indexes in Europe extended a three-day rally ahead of the widely anticipated rate cut decisions.
The eurozone economy unexpectedly stalled in the fourth quarter, following a weakness in France and Germany. Spain's inflation accelerated to a seven-month high in January.
The DAX index moved higher by 0.3% to 21,694.57; the CAC-40 index climbed 0.5% to 7,909.78; and the FTSE 100 index advanced by 0.2% to 8,574.94.
The yield on 10-year German bonds inched lower to 2.53%, French bonds declined to 3.27%, the UK gilts moved up to 4.60%, and Italian bonds edged lower to 3.62%.
Nokia gained 2.3% to €4.40 after the mobile technology company posted strong fourth-quarter results ending in December.
Net sales surged 10% to €5.98 billion from €5.42 billion; operating profit jumped 72% to €917 million from €534 million, and earnings per diluted share swung to profit of 15 euro cents from a loss of 0.01 euro cents a year ago.
Comparable sales increased 10%, and gross margin expanded to 47.2% from 44.7% a year earlier.
Looking ahead to fiscal year 2025, Nokia estimates comparable operating profit between €1.9 billion and €2.4 billion, and free cash flow conversion between 50% and 80%.
The company proposed to pay a dividend of 14 euro cents on February 13 to shareholders on record as of February 4.
Nokia plans to return up to €600 million of cash to shareholders in tranches over a period of two years, according to its share buyback program started on March 20, 2024.
ABB Ltd. increased 1.3% to CHF 52.28 after the Swiss engineering company reported an increase in revenue, profit, and orders in the fourth quarter.
The company's board also proposed to increase an ordinary dividend to 0.90 Swiss franc compared to 0.84 Swiss franc in the previous year.
The company also proposed a new $1.5 billion stock repurchase plan, ending on January 28, 2026.
Deutsche Bank decreased 3.5% to €18.85, and Germany's largest bank announced a larger-than-expected provision decline in earnings in the fourth quarter and 2024 as a result of a higher provision for legal expenses and restructuring costs.
Electrolux AB dropped 6% to 103.45 krona after the Swedish home appliance maker swung to a profit in the fourth quarter, but the company signaled market uncertainty in North America.
The appliance maker skipped a dividend for the third year in a row.
Net sales increased 7% to 37.97 billion krona from 35.64 billion krona, income swung to profit of 150 million krona from a loss of 4.11 billion, and earnings per diluted share swung to profit of 56 krona cents from a loss of 15.23 krona a year ago.
Operating cash flow after investments declined to 2.66 billion krona from 3.87 billion krona a year earlier.
Looking ahead to fiscal year 2025 the company estimates reduced product costs and therefore earnings of 3.5 billion krona to 4.0 billion krona.
Wizz Air plunged 13% to 1,192 pence after the deep discount airline posted weak results for the fiscal third quarter 2025 ending in December.
Revenue declined 10.5% to €1.18 billion from €1.06 billion, and net loss widened to €241.1 million from a loss of €105.4 million a year ago.
Net debt climbed 7.3% to €5.14 billion from €4.79 billion a year earlier, despite a 0.7% increase of total cash.
H&M declined 5.1% to €12.81 after the Swedish apparel retailer reported weaker-than-expected sales in the fourth quarter.
Net sales fell to 62.19 billion krona from 62.65 billion; profit surged to 3.08 billion krona from 1.57 billion krona, and earnings per diluted share rose to 1.92 krona from 0.97 krona a year ago.
Cash and cash equivalents declined to 17.34 billion krona from 26.4 billion a year earlier, impacted by the later occurrence of Black Friday.
However, sales geared up in December and January, in a positive start to the new fiscal year, as online sales remain strong and customers welcome the women’s fashion collections and the company’s bargain prices.
Shell Plc gained 1.5% to 2,633 pence after the Anglo-Dutch oil and gas company posted strong results for the fourth quarter ending in December.
Income attributable to shareholders increased to $928 million from $474 million, and earnings per share rose to 15 cents from 0.07 cents a year ago.
Cash flow from operations jumped to $13.16 billion from $12.58 billion a year earlier, driven by lower debts and expenses.
Shell proposed a 4% increase in dividends to 36 cents per share and launched another share buyback program of $3.5 billion, which is expected to be completed over the next three months.
STMicroelectronics NV slumped 5.5% to €22.47 after the semiconductor company posted mixed results for its fourth quarter ending in December.
Revenue declined 22.4% to $3.32 billion from $4.28 billion; net income slumped 68.3% to $321 million from $1.08 billion, and earnings per diluted share fell 67.5% to 37 cents from $1.14 a year ago.
Free cash flow decreased to $128 million from $1.48 billion a year earlier.
For the first quarter of fiscal 2025 the company estimates net revenue of $2.51 billion, a decrease of 24.4% sequentially, and gross margin of 33.8%.
Eurozone GDP Growth Stalled In Fourth Quarter, Spain's Inflation Accelerated In January to 7-Month High
Bridgette Randall
30 Jan, 2025
London
European stock market indexes extended the three-day rally, and investors awaited rate decisions by the European Central Bank later today.
Benchmark indexes in Frankfurt, Paris, Milan, and London advanced ahead of the widely anticipated 25 basis point deposit facility rate cut to 2.75%.
Investors are looking forward to the central bank's guidance about the amount and timing of the future rate cuts and policymakers outlook on economic growth, inflation, and labor market conditions.
In addition, investors also reviewed the latest update on economic growth in the eurozone and in France.
Eurozone GDP Growth Unexpectedly Stalled In Fourth Quarter
The Euro Area's GDP in the fourth quarter unexpectedly stalled from the previous quarter, Eurostat, the statistical agency of the region, reported Wednesday.
Economic activities rose at an annual pace of 0.9% in the fourth quarter, but the growth was overshadowed by the ongoing weakness in Germany and France.
For the full year 2024, GDP expanded at an annual pace of 0.7% in the euro area and 0.8% in the European Union.
Separately, France's statistical agency, INSEE, reported economic growth unexpectedly contracted for the first time in nearly two years in the fourth quarter.
Gross domestic product shrank 0.1% sequentially after expanding at 0.3% in the third quarter.
Two separate reports supported the case for the European Central Bank to continue to lower key lending rates and soften the economic contraction.
Spain's Annual CPI Jumped to 7-Month High in January
Spain's annual inflation rate advanced for the fourth consecutive month and reached the highest in seven months, the National Statistics Institute reported Thursday.
The annual pace of inflation in January rose to 3.0% from 2.8% in December, largely driven by an increase in fuel prices.
However, the core rate of inflation, which excludes volatile food and energy prices, slowed to 2.4% from a four-month high of 2.6% in December.
From the previous month, the consumer price inflation increased by 0.2%, following a 0.5% rise in December.
However, the EU-harmonized consumer inflation advanced at an annual pace of 2.9% year-on-year and decreased by 0.1% from the previous month.
Europe Indexes and Yields
The DAX index moved higher by 0.3% to 21,694.57; the CAC-40 index climbed 0.5% to 7,909.78; and the FTSE 100 index advanced by 0.2% to 8,574.94.
The yield on 10-year German bonds inched lower to 2.53%, French bonds declined to 3.27%, the UK gilts moved up to 4.60%, and Italian bonds edged lower to 3.62%.
The euro was flat at $1.04; the British pound was lower at $1.24; and the U.S. dollar was higher and traded at 90.75 Swiss cents.
Brent crude decreased $0.43 to $76.15 a barrel, and the Dutch TTF natural gas was higher by €0.17 to €49.91 per MWh.
Europe Stock Movers
Nokia gained 2.3% to €4.40 after the mobile technology company posted strong fourth-quarter results ending in December.
ABB Ltd. increased 1.3% to CHF 52.28 after the Swiss engineering company reported an increase in revenue, profit, and orders in the fourth quarter.
The company's board also proposed to increase an ordinary dividend to 0.90 Swiss franc compared to 0.84 Swiss franc in the previous year.
The company also proposed a new $1.5 billion stock repurchase plan, ending on January 28, 2026.
Deutsche Bank decreased 3.5% to €18.85, and Germany's largest bank announced a larger-than-expected provision decline in earnings in the fourth quarter and 2024 as a result of a higher provision for legal expenses and restructuring costs.
Electrolux AB dropped 6% to 103.45 krona after the Swedish home appliance maker swung to a profit in the fourth quarter, but the company signaled market uncertainty in North America.
The appliance maker skipped a dividend for the third year in a row.
H&M declined 5.1% to €12.81 after the Swedish apparel retailer reported weaker-than-expected sales in the fourth quarter.
Eurozone GDP Growth Stalled In Fourth Quarter, Spain's Inflation Accelerated In January to 7-Month High
Bridgette Randall
30 Jan, 2025
London
European stock market indexes extended the three-day rally, and investors awaited rate decisions by the European Central Bank later today.
Benchmark indexes in Frankfurt, Paris, Milan, and London advanced ahead of the widely anticipated 25 basis point deposit facility rate cut to 2.75%.
Investors are looking forward to the central bank's guidance about the amount and timing of the future rate cuts and policymakers outlook on economic growth, inflation, and labor market conditions.
In addition, investors also reviewed the latest update on economic growth in the eurozone and in France.
Eurozone GDP Growth Unexpectedly Stalled In Fourth Quarter
The Euro Area's GDP in the fourth quarter unexpectedly stalled from the previous quarter, Eurostat, the statistical agency of the region, reported Wednesday.
Economic activities rose at an annual pace of 0.9% in the fourth quarter, but the growth was overshadowed by the ongoing weakness in Germany and France.
For the full year 2024, GDP expanded at an annual pace of 0.7% in the euro area and 0.8% in the European Union.
Separately, France's statistical agency, INSEE, reported economic growth unexpectedly contracted for the first time in nearly two years in the fourth quarter.
Gross domestic product shrank 0.1% sequentially after expanding at 0.3% in the third quarter.
Two separate reports supported the case for the European Central Bank to continue to lower key lending rates and soften the economic contraction.
Spain's Annual CPI Jumped to 7-Month High in January
Spain's annual inflation rate advanced for the fourth consecutive month and reached the highest in seven months, the National Statistics Institute reported Thursday.
The annual pace of inflation in January rose to 3.0% from 2.8% in December, largely driven by an increase in fuel prices.
However, the core rate of inflation, which excludes volatile food and energy prices, slowed to 2.4% from a four-month high of 2.6% in December.
From the previous month, the consumer price inflation increased by 0.2%, following a 0.5% rise in December.
However, the EU-harmonized consumer inflation advanced at an annual pace of 2.9% year-on-year and decreased by 0.1% from the previous month.
Europe Indexes and Yields
The DAX index moved higher by 0.3% to 21,694.57; the CAC-40 index climbed 0.5% to 7,909.78; and the FTSE 100 index advanced by 0.2% to 8,574.94.
The yield on 10-year German bonds inched lower to 2.53%, French bonds declined to 3.27%, the UK gilts moved up to 4.60%, and Italian bonds edged lower to 3.62%.
The euro was flat at $1.04; the British pound was lower at $1.24; and the U.S. dollar was higher and traded at 90.75 Swiss cents.
Brent crude decreased $0.43 to $76.15 a barrel, and the Dutch TTF natural gas was higher by €0.17 to €49.91 per MWh.
Europe Stock Movers
Nokia gained 2.3% to €4.40 after the mobile technology company posted strong fourth-quarter results ending in December.
ABB Ltd. increased 1.3% to CHF 52.28 after the Swiss engineering company reported an increase in revenue, profit, and orders in the fourth quarter.
The company's board also proposed to increase an ordinary dividend to 0.90 Swiss franc compared to 0.84 Swiss franc in the previous year.
The company also proposed a new $1.5 billion stock repurchase plan, ending on January 28, 2026.
Deutsche Bank decreased 3.5% to €18.85, and Germany's largest bank announced a larger-than-expected provision decline in earnings in the fourth quarter and 2024 as a result of a higher provision for legal expenses and restructuring costs.
Electrolux AB dropped 6% to 103.45 krona after the Swedish home appliance maker swung to a profit in the fourth quarter, but the company signaled market uncertainty in North America.
The appliance maker skipped a dividend for the third year in a row.
H&M declined 5.1% to €12.81 after the Swedish apparel retailer reported weaker-than-expected sales in the fourth quarter.