Market Update
Market Indexes Flatline, E-commerce Stocks In Focus
Barry Adams
28 Nov, 2023
New York City
Stocks rested as investors mulled over recent economic data and the Fed's monetary policy stance after strong gains in the previous four weeks in a row.
Benchmark indexes edged slightly lower in Monday's trading, and investors weighed recent market gains against the earnings outlook, economic growth projections, and holiday sales.
E-commerce-linked stocks advanced after Black Friday sales jumped 7.5% to $9.8 billion from a year ago to a record high, according to the data released by Adobe Analytics.
Sales between Black Friday and Cyber Monday soared 7.7% to $10.3 billion, and sales are expected to cross $12 billion on the busiest shopping day of the year.
The S&P 500 index has jumped 19.2%, and the Nasdaq Composite has advanced 37.2% in the year so far, after the Federal Reserve paused rate hikes at the conclusion of the last two meetings.
Investors are awaiting the release of the PCE Price Index, an alternative measure of inflation, and the recent decline in inflation has bolstered the case for the third rate pause in a row at the end of the policy meeting in December.
U.S. Indexes and Yields
The S&P 500 index edged down 0.2% to 4,550.21, and the Nasdaq Composite decreased 0.1% to 14,235.71.
The yield on 2-year Treasury notes increased to 4.88%, 10-year Treasury notes inched higher to 4.40%, and 30-year Treasury bonds edged higher to 4.54%.
Crude oil increased $0.72 to $75.57 a barrel, and natural gas prices rose 1 cent to $2.95 a thermal unit.
Gold increased $1.10 to $2,014.66 an ounce after the U.S. dollar eased.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 103.23.
U.S. Stock Movers
Zscaler decreased 5.2% to $182.0 after the cybersecurity company reported strong gains in quarterly sales and operating earnings.
Stock fell after the company reiterated its fiscal year revenue outlook between $2.09 billion and $2.10 billion.
E-commerce-related stocks advanced following a surge in online shopping during the Thanksgiving holiday.
In Monday's trading, Shopify jumped as much as 4%, Amazon gained 1%, Etsy advanced 5%, and Wayfair edged slightly higher.
European Market Sentiment Weak as Inflation Worries Weigh
Bridgette Randall
28 Nov, 2023
Frankfurt
European stock markets were under pressure ahead of the release of inflation data in the Euro Area and leading nations of the currency union.
Market participants are anticipating overall inflation in October to range between 2.5% and 4% in the currency union, Germany, France, Spain, and Italy.
Benchmark indexes in the region declined, and inflation jitters kept market sentiment down for the second day in a row.
Overall, inflation has been steadily declining for the last eight months in a row in the Euro Area, but prices are still rising faster than the European Central Bank's target rate of 2%.
The decline in inflation is primarily reflecting lower energy prices, and despite the multiple rate hikes, inflation has been stubbornly anchored in the broader economy.
Moreover, market anxieties were high ahead of the OPEC+ meeting on Thursday, and oil-producing nations are struggling to agree on production quotas.
German Consumer Morale Stayed Weak
German consumer morale stayed weak amid a lack of progress on the broader economic recovery, the GfK Group reported Tuesday.
Germany's GfK Consumer Climate Index inched higher to -27.8 for December from a downwardly revised -27.3 in November.
Economic expectations were nearly unchanged despite the worries of high interest rates, elevated inflation, and economic uncertainties.
Sustained Improvement in French Consumer Morale
The consumer confidence in France increased to 87 in November, the statistical institute of France, INSEE, reported Tuesday.
The confidence level increased to the highest level since April 2022, a 19-month high, after consumers were more optimistic about the outlook for the standard of living and expectations for their personal financial situation; however, worries about employment rose sharply.
Eurozone Bank Lending Drops to New 8-year Low
Bank lending to households in the Euro Area rose by 0.6% from a year ago in October, the European Central Bank reported Tuesday.
The increase in lending to households was the smallest since June 2015, after demand for credit decelerated on the steady rise in interest rates.
Meanwhile, lending to corporations declined by 0.3%, the first decline since July 2015.
But overall lending to the private sector, including households and non-financial institutions, rose by 0.4% in October from 0.2% in September.
Europe Indexes and Yields
The DAX index decreased 0.1% to 15,955.74, the CAC-40 index fell 0.4% to 7,234.09, and the FTSE 100 index declined 0.4% to 7,428.85.
The yield on 10-year German bonds decreased to 2.54%; French bonds traded lower to 3.10%; the UK gilts declined to 4.21%; and Italian bonds inched lower to 4.32%.
The euro rebounded to $1.095, the British pound at $1.265, and the U.S. dollar at 88.09 Swiss cents.
Brent crude increased $1.0 to $80.98 a barrel, and the Dutch TTF natural gas declined by €0.97 to €43.02 per MWh.
Movers: Adani Group, Eicher Motor, Jindal Stainless, Maruti Suzuki, Newgen Software, SAIL, Satin Creditcare
Arjun Pandit
28 Nov, 2023
Mumbai
India stocks lacked direction, but Adani Group stocks advanced after the Supreme Court agreed with the earlier findings submitted by SEBI.
The Sensex index decreased 15.51 points to 65,954.51, and the Nifty index rose 19.10 points to 19,811.95.
On the Mumbai stock exchange, 185 stocks traded at their 52-week highs and 22 stocks traded at their 52-week lows.
Adani Group stocks jumped after the Supreme Court said on Friday it did not find any reason to question the probe conducted by the Securities and Exchange Board of India.
The statement effectively ended the request to monitor the company's finances on a long-term basis.
Earlier, the SEBI committee confirmed in a report that it did not find any violation of money transfer from offshore entities, breaking of disclosure rules, or "evidence pattern of manipulation."
Adani Power, Adani Enterprises, and Adani Wilmar jumped 9%, Adani Port & Special Economic Zone advanced 6%, and Adani Total Gas soared 18%.
Maruti Suzuki India advanced 0.2% to ₹10,533.20 after the vehicle maker said it plans to increase prices from January 2024, citing increased cost pressure driven by higher commodity prices.
The Steel Authority of India gained 0.6% to ₹89.80 after the steel product maker said it plans to increase the prices of rails for the Indian Railways due to higher commodity prices.
Eicher Motors decreased 0.5% to ₹3,828.75, and the company launched a new motorbike with a starting price of ₹2,69,000.
Newgen Software Technologies advanced 4.7% to ₹1,343.0 after the company announced a 1-to-1 bonus issue to shareholders on record on January 12, 2024.
Satin Creditcare Network increased 1.4% to ₹246.35 after the company said its board is scheduled to meet on November 30 to discuss the sale of stock or debenture and raise capital.
Jindal Stainless decreased 2.3% to ₹530.55, and a committee of board members approved the closure of its Indonesian subsidiary.
Listless Trading In India Stocks, Growth Outlook Revised Higher
Arjun Pandit
28 Nov, 2023
Mumbai
Stocks in Mumbai lacked direction in listless trading, and investors looked ahead to the release of economic growth and infrastructure investing data on Thursday.
The Sensex index and the Nifty index hovered near the flatline after investors returned from a three-day holiday.
S&P Global revised its economic growth outlook for the current fiscal year to 6.4% from the previous estimate of 6.0%.
However, the rating agency also lowered its fiscal 2025 growth outlook by 50 basis points to 6.0%.
In overnight trading, benchmark indexes in New York edged lower after stocks advanced for four weeks in a row in the hopes of a stable rate outlook.
India Indexes and Yields
The Sensex index decreased 15.51 points to 65,954.51, and the Nifty index rose 19.10 points to 19,811.95.
On the Mumbai stock exchange, 185 stocks traded at their 52-week highs and 22 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds edged up to 7.25%, and the Indian rupee weakened to ₹83.37 against the U.S. dollar.
The gold price increased by 0.1% to ₹61,638 per ten grams, and silver fell by 0.2% to ₹74,680 per kilo.
Crude oil decreased by 0.2% to ₹6,274 per barrel, and natural gas rose by 1.6% to ₹248.70 per thermal unit.
India Stock Movers
Maruti Suzuki India advanced 0.2% to ₹10,533.20 after the vehicle maker said it plans to increase prices from January 2024, citing increased cost pressure driven by higher commodity prices.
The Steel Authority of India gained 0.6% to ₹89.80 after the steel product maker said it plans to increase the prices of rails for the Indian Railways due to higher commodity prices.
Eicher Motors decreased 0.5% to ₹3,828.75, and the company launched a new motorbike with a starting price of ₹2,69,000.
Newgen Software Technologies advanced 4.7% to ₹1,343.0 after the company announced a 1-to-1 bonus issue to shareholders on record on January 12, 2024.
New Home Sales In October Dropped, Median and Average Home Prices Eased
Brian Turner
27 Nov, 2023
New York City
New home sales data showed home sales declined 5.6% to an annual rate of 679,000 in October from a 719,000 rate in September, the U.S. Census Bureau reported Monday.
New home sales soared 17.7% from an estimate of 577,000 a year ago.
The median price of new homes sold was $409,300, while the average sales price was $487,000, compared to $496,800 and $543,300, respectively, a year ago.
In the month, sales from the previous month in the West fell 23.3%, dropped 16.4% in the Midwest, but advanced 13.2% in the Northeast and 2.1% in the South.
New home sales in October from a year ago soared in the West by 18.9%, in the South by 19.2%, in the Midwest by 8.5%, and in the Northeast by 10.3%.
The seasonally adjusted estimate of new houses for sale at the end of October was 439,000, representing a supply of 7.8 months at the current sales rate.
U.S. Stocks Lacked Direction and Indexes Paused After 4-week Rally
Barry Adams
27 Nov, 2023
New York City
Market indexes rested after advancing for four weeks in a row, and investors refrained from adding more exposure to risky assets.
The S&P 500 and the Nasdaq Composite hovered at a flat line, and investors debated rate paths, economic growth outlooks, and market valuations.
Market sentiment has been positive after the Federal Reserve held the fed funds rate for the second time in a row, and investors stepped up their bets that the central bank is done raising rates for now.
Moreover, three key measures of inflation—consumer price inflation, producer price inflation, and import price inflation—have been on a steady decline for several months.
Investors also bid up stocks after the minutes of the Federal Open Market Committee in early November sent mixed signals about the health of the economy and the need for restrictive rates until more evidence emerges about the downward trend of inflation.
In November so far, the S&P500 index increased 8.6% and the Nasdaq Composite soared 11%.
Investors have been bidding up stocks despite leading retailers, including Walmart, Lowe's Companies, Target, and Best Buy, issuing a cautionary outlook for holiday sales last week.
New home sales data showed home sales declined 5.6% to an annual rate of 679,000 in October from a 719,000 rate in September, the U.S. Census Bureau reported Monday.
New home sales soared 17.7% from an estimate of 577,000 a year ago.
The median price of new homes sold was $409,300, while the average sales price was $487,000, compared to $496,800 and $543,300, respectively, a year ago.
U.S. Indexes and Yields
The S&P 500 index edged down 0.2% to 4,550.21, and the Nasdaq Composite decreased 0.1% to 14,235.71.
The yield on 2-year Treasury notes increased to 4.92%, 10-year Treasury notes inched higher to 4.43%, and 30-year Treasury bonds edged higher to 4.57%.
Crude oil decreased $0.42 to $75.10 a barrel, and natural gas prices fell 8 cents to $2.77 a thermal unit.
Gold increased $6.55 to $2,008.72 an ounce after the U.S. dollar eased.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 103.40.
Europe Movers: Aviva, Julius Baer, Rightmove, Sanofi, Valneva, Veolia Enviro
Inga Muller
27 Nov, 2023
Frankfurt
European markets lacked direction and stock hovered near flatline as investors awaited data on inflation and jobs later in the week.
The DAX index decreased 0.2% to 15,994.35, the CAC-40 index fell 0.1% to 7,284.72, and the FTSE 100 index declined 0.1% to 7,477.72.
In the week, the DAX index increased 0.8%, the CAC-40 index rose 0.7%, and the FTSE 100 index declined 0.4%.
The yield on 10-year German bonds decreased to 2.62%; French bonds traded lower to 3.17%; the UK gilts declined to 4.26%; and Italian bonds inched lower to 4.35%.
Julius Baer Group declined 2% to CHF 45.82 after the Swiss bank disclosed a CHF 70 million charge against a loan in its private loan business.
The bank said the nominal exposure of CHF 606 million is comprised of three loans to one "European conglomerate" linked to commercial real estate and luxury retail and "is now subject to long-term restructuring."
Veolia Environnement SA rose 0.5% to €28.36 after the French water, waste, and renewable energy management solution provider agreed to sell its SADE-CGTH to NGE for €260 million.
SADE provides civil engineering works and network construction, mainly in the water sector. It generated 2022 revenue of around €1.1 billion and employed around 6,900 people.
Valneva SE rose 1.6% to €5.29 after the French drug maker's application for chikungunya vaccine candidate VLA1553 was accepted by the European Medicines Agency.
Sanofi SA added 1.3% to €87.52 after the French drug company announced positive results for its experimental drug Dupixent (dupilumab) Phase 3 trial in chronic obstructive pulmonary disease, or "smoker's lung."
The second large trial showed improvement in exacerbations of the disease by 34%, confirming the findings in the first trial earlier in the year known as BOREAS.
After the positive results, the company and Regeneron are looking to file an accelerated application with the U.S. Food and Drug Administration before the end of the year, following promising results.
Aviva plc added 0.07% to 425.0 pence after the UK-based insurance company agreed to acquire Canada-based vehicle replacement insurance company Otiom O2 Holdings Inc. for about £100 million.
Rightmove Plc jumped 5.7% to 538.0 pence after the real estate listing portal reported better-than-expected revenue and the company lifted its 2023 revenue outlook.
"The acquisition expands Aviva’s capital-light businesses, which make up over half of Aviva’s portfolio, and grows Aviva Canada’s presence in a profitable segment of the Canadian insurance market," said the company in a statement to investors.
European Markets Struggled to Advance Ahead of Inflation and Jobs Data
Bridgette Randall
27 Nov, 2023
Frankfurt
European market indexes traded lower in Monday's trading, and investors looked ahead to the release of jobs and inflation data in the region later in the week.
Benchmark indexes in Frankfurt, Paris, and London declined following the increases in the previous two weeks in a row.
In the European Union, this week economists are awaiting the release of inflation and job data from the Euro Area, Germany, France, and Italy.
The euro hovered at its two-month high against the U.S. dollar, and the yields on bonds in the region traded at three-month highs.
Market sentiment in European stock trading has been driven by the expectation that European Central Bank policymakers are done raising interest rates for now.
Moreover, the steady decline in inflation in the last eight months has fueled expectations that interest rates may not have to be raised to bring down inflation to the central bank's target rate of 2%.
However, the cooling of inflation is contrasted by the fact that despite the multiple interest rate hikes, inflation is still significantly above the target rate, and the central bank may have to keep rates higher well into 2024.
Europe Indexes and Yields
The DAX index decreased 0.2% to 15,994.35, the CAC-40 index fell 0.1% to 7,284.72, and the FTSE 100 index declined 0.1% to 7,477.72.
In the week, the DAX index increased 0.8%, the CAC-40 index rose 0.7%, and the FTSE 100 index declined 0.4%.
The yield on 10-year German bonds decreased to 2.62%; French bonds traded lower to 3.17%; the UK gilts declined to 4.26%; and Italian bonds inched lower to 4.35%.
The euro rebounded to $1.095, the British pound at $1.261, and the U.S. dollar at 88.05 Swiss cents.
Brent crude increased $1.34 to $79.23 a barrel, and the Dutch TTF natural gas declined by €2.46 to €44.16 per MWh.
Europe Stock Movers
Julius Baer Group declined 2% to CHF 45.82 after the Swiss bank disclosed a CHF 70 million charge against a loan in its private loan business.
The bank said the nominal exposure of CHF 606 million is comprised of three loans to one "European conglomerate" linked to commercial real estate and luxury retail and "is now subject to long-term restructuring."
Veolia Environnement SA rose 0.5% to €28.36 after the French water, waste, and renewable energy management solution provider agreed to sell its SADE-CGTH to NGE for €260 million.
SADE provides civil engineering works and network construction, mainly in the water sector. It generated 2022 revenue of around €1.1 billion and employed around 6,900 people.
Valneva SE rose 1.6% to €5.29 after the French drug maker's application for chikungunya vaccine candidate VLA1553 was accepted by the European Medicines Agency.
Sanofi SA added 1.3% to €87.52 after the French drug company announced positive results for its experimental drug Dupixent (dupilumab) Phase 3 trial in chronic obstructive pulmonary disease, or "smoker's lung."
The second large trial showed improvement in exacerbations of the disease by 34%, confirming the findings in the first trial earlier in the year known as BOREAS.
After the positive results, the company and Regeneron are looking to file an accelerated application with the U.S. Food and Drug Administration before the end of the year, following promising results.
Aviva plc added 0.07% to 425.0 pence after the UK-based insurance company agreed to acquire Canada-based vehicle replacement insurance company Otiom O2 Holdings Inc. for about £100 million.
Rightmove Plc jumped 5.7% to 538.0 pence after the real estate listing portal reported better-than-expected revenue and the company lifted its 2023 revenue outlook.
"The acquisition expands Aviva’s capital-light businesses, which make up over half of Aviva’s portfolio, and grows Aviva Canada’s presence in a profitable segment of the Canadian insurance market," said the company in a statement to investors.
Movers: Anup Engineering, Apar Industries, L&T Finance, JSW Infra, Lupin, NMDC, Siemens, TCS
Arun Goswami
24 Nov, 2023
Mumbai
Movers: CE Info Systems, Holdcos,Man Infraconstruction, UPL, State Bank of India
Arun Goswami
23 Nov, 2023
Mumbai