Market Update
U.S. Stocks Slide and Treasury Yields Jump After Fed Sees More Rate Hikes
Barry Adams
05 Jul, 2023
New York City
Market averages traded lower as trading resumed in holiday-shortened week and losses deepened after the release of the minutes of the latest FOMC meeting.
All participants deemed appropriate to pause rates and evaluate economy's progress in achieving maximum employment and price stability.
But few participants were ready to raise rates by 25 basis points after several participants noted that most of the impact of cumulative rate hikes on the economy has already been felt, but the pace of declines in inflation has been less than anticipated.
Participants also noted that more rate hikes may be necessary in cooling inflation to the central bank's 2% goal and nominal wage gains have been moderating but are still inconsistent with the central bank's target on inflation.
Tech stocks traded lower after rallying for six weeks following optimism related to artificial intelligence fueled demand for semiconductor chips.
Investors also digested service sector growth conditions from China, the Euro Area and the UK.
Market indexes in Paris, Frankfurt and London edged down after the latest measures of the service sector showed a slower growth in the UK, the Euro Area and China but industrial activities in France and Spain were ahead of expectations.
U.S. Indexes & Yields
The S&P 500 index traded down 0.1% to 4,448.72 and the Nasdaq Composite edged lower 0.1% to 13,804.38.
The yield on 2-year Treasury notes increased to 4.95%, 10-year Treasury notes inched higher to 3.93% and 30-year Treasury bonds edged up to 3.95%.
Crude oil decreased $0.93 to $72.08 a barrel and natural gas prices decreased 8 cents to $2.66 a thermal unit.
U.S. Stock Movers
Electric vehicle makers were in focus for the second day this week after Tesla and Rivian reported production data.
Rivian Automotive Inc gained 4% to $20.29 and on Monday the company said vehicle deliveries in the June quarter surged 59% from a year ago to 12,640 units.
Tesla Inc edged slightly higher to $280.11 and extended Monday's gains of 5% after the company reported vehicle production in the June quarter increased 83% to about 477,000.
United Parcel Service, Inc declined 2.4% to $179.45 after talks with the labor union reached an impasse.
The current labor agreement between UPS and Teamster expires at the end of July.
On Wednesday, the Teamsters union said in a press release that UPS "walked away from table" but the company countered saying it had not walked away from negotiations and was hoping for the union to resume negotiations.
American Equity Investment Life Holding increased 1.0% to $52.30 after the company agreed to be acquired by Brookfield Reinsurance for $4.3 billion.
European Markets Turned Lower
European markets traded lower and investors reviewed the latest indicators of the service sector.
Market indexes in Paris, Frankfurt and London edged down after the latest measures of the service sector showed a slower growth in the UK, the Euro Area and China but industrial activities in France and Spain were ahead of expectations.
Eurozone Services PMI decreased to 52.0 in June from 55.1 in May, according to a final survey update released by S&P Global. In addition, the service sector expanded in the UK but at a slower pace.
Any measure below 50 indicates contraction in growth and above shows expansion.
The HCOB Italy Services PMI fell to 52.2 in June from 54.0 in May and dropped to the lowest level in four months.
The HCOB Spain Composite PMI declined to 52.6 in June from 55.2 in May and declined for the third month in a row and fell to the slowest pace since January.
The service PMI slowed to 53.4 in June from 56.7 in May but the manufacturing sector deepened the contraction to 48..0 from 48.40 respectively.
The private survey of China's service industry conducted by Caixin/S&P Global indicated a decline to 53.9 in June from 57.1 in May. The growth in the sector declined to the slowest pace since January.
Eurozone Wholesale Inflation Turned Negative
The measure of wholesale price inflation turned negative for the first time in May since December 2020 after energy costs dropped 13.3% and intermediate goods prices fell 1.5%.
Producer price inflation in the Euro Are declined by 1.5% in May following a downwardly revised increase of 0.9% in April, the statistical office of the European Union reported Wednesday.
On a monthly basis, producer price inflation declined 1.9% in May, a fifth monthly decline in a row.
Europe Indexes & Yields
The DAX index decreased 0.6% to 15,937.58, the CAC-40 index declined 0.8% to 7,310.81 and the FTSE 100 index decreased 1.0% to 7,442.10.
The yield on 10-year German Bunds inched higher to 2.41%, French bonds traded lower to 2.96%, the UK gilts edged up to 4.41% and Italian bonds decreased to 4.13%.
The euro edged higher to $1.087, the British pound to $1.27 and the U.S. dollar fetched 89.85 Swiss cents
Brent crude increased $0.54 to $76.79 a barrel and the Dutch TTF natural gas increased €1.04 to €34.37 per MWh.
Europe Stock Movers
Evotec SE increased 3.4% to €20.93 after the German drug company said its unit has secured a second contract from the U.S. Department of Defense for $74 million.
Numis Corporation Plc increased 0.1% to 332.94 pence despite the UK-based investment bank warning of lower deal volume amid ongoing market weakness.
SIG Plc plunged 10.4% to 30.90 pence after the UK-based construction materials firm issued a profit warning.
Keller Group Plc soared 11.5% to 787.55 pence on the expectations of positive earnings. Earlier the geotechnical specialist contractor had indicated strong activities in the first half and forecasted record revenue in the period.
Impellam Group Plc jumped 6.6% to 730.30 pence after the UK-based staffing company said it is in a potential merger discussion with HeadFirst Global.
Fed Policy Makers Anticipate Raising Rates This Year, FOMC Minutes Showed
Brian Turner
05 Jul, 2023
New York City
Almost all participants of the policy making committee gathered for a meeting on June 13-14 agreed that more rate increases may be needed, although at a slower pace.
All participants noted that with inflation above the central bank's target rate of 2% and the labor market remaining very tight, keeping a restrictive stance on monetary policy would be necessary in achieving the committee's objective, the minutes of the meeting released on Wednesday showed.
Some participants noted that while the full impact of recent rate hikes have not been felt in the economy, "several (participants) highlighted the possibility that much of the effect of past monetary policy tightening may have already been realized."
Despite the easing of supply chain constraints, core goods inflation had moderated since the middle of the last year, core inflation in recent months has slowed "less rapidly than expected."
Fed Chairman Jerome Powell has reiterated several times after the announcement of the rate decision that the full impact of 500 basis points increase in interest rates over the last fifteen month have not been felt in the economy so far.
Participants also noted that inflation was "unacceptably high" and "declines in inflation has been slower than they had expected."
Committee members noted that nominal wage growth had shown signs of easing but it was still running at a pace that would be inconsistent in achieving the central bank's 2% inflation objective.
Participants expected that labor market conditions are likely to be in better balance over a longer period of time, easing pressures on wages and prices.
Restructuring Plans for French Grocer Casino Guichard Signal More Pain for Shareholders and Creditors
Scott Peters
05 Jul, 2023
New York City
Casino Guichard Perrachon SA traded sharply lower after two offers to inject capital in the troubled French retailer demanded sharp dilution for current shareholders and sacrifice from secured creditors.
Casino Guichard plunged 29.2% to €3.22 after the company disclosed two competing offers from two billionaires for equity recapitalization.
French telecommunication entrepreneur Xavier Niel led group, 3F, offered Є450 million in equity into the business but also demanded commitment of Є450 million from secured creditors.
The second offer led by Czech financier Daniel Kretinsky offered to inject Є1.35 billion in equity in the business.
Kretinsky controlled EPCG and Marc Ladreit de Lacharriere controlled Fimalac will provide the proposed equity and both are current shareholders in the company.
EPCG/Fimalac offered to inject Є860 million and anticipated Є290 million from secured creditors in equity investments and additional Є200 million through a rights offering.
Both proposals see value in the current real estates and proposed to extend Є553 million debt maturity by four more years.
The company said it plans to meet with representatives of creditors and the French Finance Ministry and court appointed observers.
The French retailer is also pursuing its own plan to sell non-core assets including businesses in Latin America but keep its money losing hypermarket business which is facing tough competition from a much larger competitor Carrefour SA.
On June 28, the company said for it to operate it needs 900 million in new equity capital and covert all of unsecured debt of Є3.5 billion into equity and convert at least between Є1.0 billion and Є1.5 billion of Є4.0 billion secured debt to equity as well.
Under both offers, existing shareholders will be sharply diluted and current shareholders' stake in the EPCG/Fimalac proposal will be reduced to 0.2% and in the 3F & Partners offer down to 0.03%.
Both plans may fall short of the company's need in reducing debt to meet its cash flow target set in its 2025 business plan that also anticipates the grocer reducing its net debt to EBITDA to 1.0.
According to restructuring plans the equity stake of 3F and partners will hold an equity stake of 57.19% and 50.10% in the plan proposed by EPGC and Fimalac.
Casino Guichard has been operating under a heavy debt load and the company's woes only worsened during the pandemic years.
The company recently sold its remaining 11.6% stake in Brazil-based retailer Assia for Є326 million, after accounting for taxes and transaction costs.
The retailer is also looking to sale or spinoff Group Exito, consisting its stores in Colombia, Uruguay and Argentina and the company said in a presentation to investors in November 2022 that it is on target to dispose of assets worth Є4.5 billion before the end of 2023.
Factory Orders Increased 0.3% In May
Brian Turner
05 Jul, 2023
New York City
Factory orders in May increased for five of the last six months, driven by large ticket transportation orders, the U.S. Census Bureau reported Wednesday.
New orders for manufactured goods increased 0.3% to $578.0 billion, matching the rise in the previous month.
Durable goods orders increased 1.8%, after transportation orders rose 3.8%. Non-durable goods orders declined 1.2%.
Shipments for manufactured durable goods orders increased 1.8% following 0.6% increase in April.
Transportation equipment shipment increased 4..8% and nondurable goods orders shipments declined 1.2% following a 0.7% fall in April.
Unfilled orders for manufactured durable goods increased 0.8% in May and matched the rate in April.
Inventories of manufactured durable goods orders increased 0.2% following a 1.0% rise in April.
Movers: American Equity Investment, Rivian, UPS, Wolfspeed
Scott Peters
05 Jul, 2023
New York City
The S&P 500 index traded down 0.4% to 4,438.49 and the Nasdaq Composite edged lower 0.3% to 13,776.85.
The yield on 2-year Treasury notes increased to 4.91%, 10-year Treasury notes inched higher to 3.86% and 30-year Treasury bonds edged up to 3.89%.
Electric vehicle makers were in focus for the second day this week after Tesla and Rivian reported production data.
Rivian Automotive Inc gained 4% to $20.29 and on Monday the company said vehicle deliveries in the June quarter surged 59% from a year ago to 12,640 units.
Tesla Inc edged slightly higher to $280.11 and extended Monday's gains of 5% after the company reported vehicle production in the June quarter increased 83% to about 477,000.
United Parcel Service, Inc declined 2.4% to $179.45 after talks with the labor union reached an impasse.
The current labor agreement between UPS and Teamster expires at the end of July.
On Wednesday, the Teamsters union said in a press release that UPS "walked away from table" but the company countered saying it had not walked away from negotiations and was hoping for the union to resume negotiations.
American Equity Investment Life Holding increased 1.0% to $52.30 after the company agreed to be acquired by Brookfield Reinsurance for $4.3 billion.
Wolfspeed Inc surged 13.2% to $64.26 after the company signed a multiyear agreement with Renesas to provide 150mm and 200mm silicon carbide wafers and epitaxial wafers for $2 billion.
Compared to conventional silicon power semiconductors, silicon carbide devices enable higher energy efficiency, greater power density and a lower system cost.
Major Averages Face Headwinds On Lingering Rate Path Worries
Barry Adams
05 Jul, 2023
New York City
Market averages traded lower as trading resumed in holiday-shortened week and investors awaited minutes of Fed's policy meeting.
Tech stocks traded lower after rallying for six weeks following optimism related to artificial intelligence fueled demand for semiconductor chips.
Minutes from the Fed's policy meeting ending on June 14 are scheduled to be released later in the day by the Federal Reserve.
Investors are looking for additional insights surrounding the decision to pause rate hike. Though the rate pause was widely invested, investors were surprised to learn that rates could rise as much as 50 basis points before the year's end.
Investors also digested service sector surveys data from China, the Euro Area and the UK.
Market indexes in Paris, Frankfurt and London edged down after the latest measures of the service sector showed a slower growth in the UK, the Euro Area and China but industrial activities in France and Spain were ahead of expectations.
Eurozone Services PMI decreased to 52.0 in June from 55.1 in May, according to a final survey update released by S&P Global. In addition, the service sector expanded in the UK but at a slower pace.
Any measure below 50 indicates contraction in growth and above shows expansion.
The private survey of China's service industry conducted by Caixin/S&P Global indicated a decline to 53.9 in June from 57.1 in May. The growth in the sector declined to the slowest pace since January.
Market indexes edged higher on Monday and built on solid gains in the first half and financial markets were closed on Tuesday.
The S&P 500 index jumped 15.9% in the first half, its best return in the period since 2019 and the Nasdaq Composite index advanced 32.7%, its best performance in four decades.
U.S. Indexes & Yields
The S&P 500 index traded down 0.4% to 4,438.49 and the Nasdaq Composite edged lower 0.3% to 13,776.85.
The yield on 2-year Treasury notes increased to 4.91%, 10-year Treasury notes inched higher to 3.86% and 30-year Treasury bonds edged up to 3.89%.
Crude oil decreased $0.07 to $71.22 a barrel and natural gas prices decreased 2 cents to $2.72 a thermal unit.
U.S. Stock Movers
Electric vehicle makers were in focus for the second day this week after Tesla and Rivian reported production data.
Rivian Automotive Inc gained 4% to $20.29 and on Monday the company said vehicle deliveries in the June quarter surged 59% from a year ago to 12,640 units.
Tesla Inc edged slightly higher to $280.11 and extended Monday's gains of 5% after the company reported vehicle production in the June quarter increased 83% to about 477,000.
United Parcel Service, Inc declined 2.4% to $179.45 after talks with the labor union reached an impasse.
The current labor agreement between UPS and Teamster expires at the end of July.
On Wednesday, the Teamsters union said in a press release that UPS "walked away from table" but the company countered saying it had not walked away from negotiations and was hoping for the union to resume negotiations.
American Equity Investment Life Holding increased 1.0% to $52.30 after the company agreed to be acquired by Brookfield Reinsurance for $4.3 billion.
Europe Movers: Casino Guichard, Evotec, Keller Group, Impellam, Numis, SIG Plc
Bridgette Randall
05 Jul, 2023
Frankfurt
European markets declined after economic growth worries resurfaced following a decline in services sector indicators in the Euro Area, UK and China.
The DAX index decreased 0.5% to 15,954.99, the CAC-40 index declined 0.6% to 7,322.75 and the FTSE 100 index decreased 0.5% to 7,481.25.
The yield on 10-year German Bunds inched higher to 2.41%, French bonds traded lower to 2.96%, the UK gilts edged up to 4.41% and Italian bonds decreased to 4.13%.
Evotec SE increased 3.4% to €20.93 after the German drug company said its unit has secured a second contract from the U.S. Department of Defense for $74 million.
Numis Corporation Plc increased 0.1% to 332.94 pence despite the UK-based investment bank warning of lower deal volume amid ongoing market weakness.
SIG Plc plunged 10.4% to 30.90 pence after the UK-based construction materials firm issued a profit warning.
Keller Group Plc soared 11.5% to 787.55 pence on the expectations of positive earnings. Earlier the geotechnical specialist contractor had indicated strong activities in the first half and forecasted record revenue in the period.
Impellam Group Plc jumped 6.6% to 730.30 pence after the UK-based staffing company said it is in a potential merger discussion with HeadFirst Global.
Casino Guichard plunged 29.2% to €3.22 after the company disclosed two competing offers for equity recapitalization.
Under both offers, existing shareholders will be sharply diluted and current shareholders stake in the EPCG/Fimalac proposal will be reduced to 0.2% and in the 3F & Partners offer down to 0.03%.
European Markets Turned Lower After Services Growth Slowed, Wholesale Inflation Turned Negative
Bridgette Randall
05 Jul, 2023
Frankfurt
European markets traded lower and investors reviewed the latest indicators of the service sector.
Market indexes in Paris, Frankfurt and London edged down after the latest measures of the service sector showed a slower growth in the UK, the Euro Area and China but industrial activities in France and Spain were ahead of expectations.
Eurozone Services PMI decreased to 52.0 in June from 55.1 in May, according to a final survey update released by S&P Global. In addition, the service sector expanded in the UK but at a slower pace.
Any measure below 50 indicates contraction in growth and above shows expansion.
The HCOB Italy Services PMI fell to 52.2 in June from 54.0 in May and dropped to the lowest level in four months.
The HCOB Spain Composite PMI declined to 52.6 in June from 55.2 in May and declined for the third month in a row and fell to the slowest pace since January.
The service PMI slowed to 53.4 in June from 56.7 in May but the manufacturing sector deepened the contraction to 48..0 from 48.40 respectively.
The private survey of China's service industry conducted by Caixin/S&P Global indicated a decline to 53.9 in June from 57.1 in May. The growth in the sector declined to the slowest pace since January.
Eurozone Wholesale Inflation Turned Negative
The measure of wholesale price inflation turned negative for the first time in May since December 2020 after energy costs dropped 13.3% and intermediate goods prices fell 1.5%.
Producer price inflation in the Euro Are declined by 1.5% in May following a downwardly revised increase of 0.9% in April, the statistical office of the European Union reported Wednesday.
On a monthly basis, producer price inflation declined 1.9% in May, a fifth monthly decline in a row.
Europe Indexes & Yields
The DAX index decreased 0.5% to 15,954.99, the CAC-40 index declined 0.6% to 7,322.75 and the FTSE 100 index decreased 0.5% to 7,481.25.
The yield on 10-year German Bunds inched higher to 2.41%, French bonds traded lower to 2.96%, the UK gilts edged up to 4.41% and Italian bonds decreased to 4.13%.
The euro edged higher to $1.087, the British pound to $1.27 and the U.S. dollar fetched 89.85 Swiss cents
Brent crude decreased $0.11 to $76.13 a barrel and the Dutch TTF natural gas increased €0.39 to €35.18 per MWh.
Europe Stock Movers
Evotec SE increased 3.4% to €20.93 after the German drug company said its unit has secured a second contract from the U.S. Department of Defense for $74 million.
Numis Corporation Plc increased 0.1% to 332.94 pence despite the UK-based investment bank warning of lower deal volume amid ongoing market weakness.
SIG Plc plunged 10.4% to 30.90 pence after the UK-based construction materials firm issued a profit warning.
Keller Group Plc soared 11.5% to 787.55 pence on the expectations of positive earnings. Earlier the geotechnical specialist contractor had indicated strong activities in the first half and forecasted record revenue in the period.
Impellam Group Plc jumped 6.6% to 730.30 pence after the UK-based staffing company said it is in a potential merger discussion with HeadFirst Global.
Europe Movers: Aegon, Casino Guichard, J Sainsbury, UK Homebuilders, UK Miners, Wizz Air
Bridgette Randall
04 Jul, 2023
New York City
The DAX index decreased 0.3% to 16,042.66, the CAC-40 index declined 0.06% to 7,381.09 and the FTSE 100 index increased 0.1% to 7,537.54.
Mining and energy companies were among the leading decliners after commodities and energy prices remained under pressure on the demand worries linked to China.
Glencore, Antofagasta and Anglo American rose between 0.6% and 1.1% on the hopes that the People's Republic of China will announce new measures to revive the property sector.
Shell Plc, TotalEnergies, BP Plc, Eni SpA and Repsol traded volatile and in mixed trading and bounced around 0.5% band.
UK homebuilders were under pressure on the looming recession worries and slowdown in home sales amid the ongoing rate hikes.
Barratt Developments Plc fell as much as 0.4% and Taylor Wimpey Plc decreased 0.3%
Wizz Air Holdings Plc increased 2% to 2,853 pence after the deep discount airline reported a higher passenger traffic in June compared to a year ago.
Casino Guichard Perrachon SA soared 16% to €4.57 after the troubled French retailer received two equity investment offers.
The company received proposals from 3F Holding and from a group of investors EP Global Commerce and Fimalac, and details of the proposals will be made public after a meeting with creditors on July 5.
J Sainsbury's Plc decreased 2.0% to 269.0 pence despite the British retailer reported improved first quarter results and reiterated its full-year outlook.
Total retail sales excluding fuel in the first quarter ending on June 24 increased 9.2% and comparable sales rose 9.8%.
Grocery sales increased 11%, general merchandise sales jumped 3.1%, Argos retail sales advanced 5.1% but apparel sales declined 3.7%.
The retailer reiterated its forecast for fiscal year 2024 4 underlying profit before-tax of between £640 million and £700 million and generate at least £500 million of retail free cash flow.
Aegon NV rose 1.7% to €4.80 after the Dutch insurer said it has integrated its pension, life and non-life insurance, mortgage and banking activities with ASR.
German Trade Surplus Drops to 5-month Low, Spanish Jobless Falls to 15-year Low
Bridgette Randall
04 Jul, 2023
Frankfurt
European markets edged slightly lower in thin trading and investors digested a fresh batch of economic data in the region.
Spain's registered unemployed people remained below 3 million for 14th month in a row in June and Germany's trade surplus declined to a five-month low after exports fell to the U.S, UK and China.
Trading on European bourses was thin because of the July 4 Independence Day holiday in the U.S.
Crude oil traded near its recent lows on persistent demand growth worries following the uneven economic rebound in China after the end of Covid-19 restrictions.
The Reserve Bank of Australia held its cash rate at 4.1% following the policy meeting today after increasing rates by 25 basis points to in the previous meeting in June and increasing by a total of 400 basis points since May 2022.
Spain's Jobless Rate Declined
Spain's jobless rate fell by 1.8% or 50,268 people from the previous month in June to 2.69 million, the lowest level since September 2008, the Ministry of Labor and Social Economy reported Tuesday.
From a year ago, the number of people registered as jobless fell by 191,740 and the decline was widespread in all age groups and across all regions of the nation.
The registered unemployed people stayed below 3 million for the 14 month in a row.
The number of unemployed in services declined by 42,133, in industry by 4,888 and construction 1,688.
Across regions, the largest decline was registered in Andalusia by 8,780, Catalonia by 6,359 and Galicia by 5,410.
In the first half of 2023, 7.6 million job contracts have been signed, 2 million fewer than a year ago.
German Trade Surplus Falls to 5-month Low
Seasonally adjusted German trade surplus decreased to Є14.5 billion in May from downwardly revised surplus of Є16.5 billion in April and Є4.4 billion a year ago.
Trade surplus was the smallest since last December.
Exports declined 0.1% from the previous month to Є130.5 billion after sales to member states in the EU declined 1.5% to Є70.3 billion and rose 1.5% to Є60.5 billion.
On a yearly basis, exports declined 4% in May after falling 1.7% in April and imports dropped 10.6% after declining 11.2% respectively.
Most German exports went to the U.S. and sales decreased 3.6% to Є12.7 billion, fell 1.6% to Є8.6 billion to China and 5.8% to Є6.4 billion to the UK.
Overall imports increased 1.7% to Є116.1 billion after imports from the member states of the EU increased 3.5% to Є61.6 billion and from the non-member states decreased 0.3% to Є54.5 billion.
Most German imports came from the People's Republic of China and imports declined 2.7% to Є13.3 billion, followed by the United States and the UK.
Imports from the U.S. declined 5.7% to Є7.6 billion and from the UK fell 15.3% to Є3.3 billion.
Exports to the Russian Federation declined 7.4% from the previous month to Є0.7 billion and plunged 34.4% from a year ago after Russia invaded Ukraine.
Imports from Russia declined 17.3% to Є0.3 billion from the previous month and plunged 92.6% from a year ago.
Europe Indexes & Yields
The DAX index decreased 0.3% to 16,042.66, the CAC-40 index declined 0.06% to 7,381.09 and the FTSE 100 index increased 0.1% to 7,537.54.
The yield on 10-year German Bunds inched higher to 2.47%, French bonds traded lower to 3.02%, the UK gilts edged up to 4.44% and Italian bonds decreased to 4.22%.
The euro edged higher to $1.09, the British pound to $1.27 and the U.S. dollar fetched 89.56 Swiss cents
Brent crude increased $0.6 to $75.26 a barrel and the Dutch TTF natural gas increased €0.22 to €34.14 per MWh.
Europe Stock Movers
Mining and energy companies were among the leading decliners after commodities and energy prices remained under pressure on the demand worries linked to China.
Glencore, Antofagasta and Anglo American rose between 0.6% and 1.1% on the hopes that the People's Republic of China will announce new measures to revive the property sector.
Shell Plc, TotalEnergies, BP Plc, Eni SpA and Repsol traded volatile and in mixed trading and bounced around 0.5% band.
UK homebuilders were under pressure on the looming recession worries and slowdown in home sales amid the ongoing rate hikes.
Barratt Developments Plc fell as much as 0.4% and Taylor Wimpey Plc decreased 0.3%
Wizz Air Holdings Plc increased 2% to 2,853 pence after the deep discount airline reported a higher passenger traffic in June compared to a year ago.
Casino Guichard Perrachon SA soared 16% to €4.57 after the troubled French retailer received two equity investment offers.
J Sainsbury Plc decreased 2.0% to 269.0 pence despite the British retailer reported improved first quarter results and reiterated its full-year outlook.
Aegon NV rose 1.7% to €4.80 after the Dutch insurer said it has integrated its pension, life and non-life insurance, mortgage and banking activities with ASR.
Major Averages Inch Higher On Wall Street, EV Makers Surge Ahead
Barry Adams
03 Jul, 2023
New York City
Stocks on Wall Street traded flat on the first day of trading in the second half and electric vehicle makers were in focus after Tesla and Rivian reported quarterly production data.
Market indexes showed little movement at the start of the second half after surging in the first half and regular trading hours ended at 1:00 p.m. ET ahead of market holiday on July 4.
The tech stock heavy Nasdaq Composite index reported its best performance in the period in four decades on the back of optimism surrounding artificial intelligence driven demand for semiconductor and software.
The S&P 500 index advanced 15.9% and the Nasdaq Composite index jumped 31.7% in the first half.
Investors are hoping that despite the Federal Reserve's hawkish stance and the expected increase in interest rates by another 50 basis points, the U.S. economy may experience a shallow recession.
The S&P 500 index advanced over 5% in June and jumped over 7% in the second quarter and soared 15.9% in the first half.
The Nasdaq Composite increased over 5% in June, advanced over 12% in the second quarter and jumped nearly 31.7% in the first half.
Electric vehicles makers jumped after Tesla reported an 83% jump in vehicle deliveries in the second quarter, partly driven by federal tax incentives and company discounts.
Rivian reiterated its annual electric vehicle production target of 50,000 pickups and SUVs.
Crude oil prices declined 7% in the second quarter and extended the first half fall to 12%.
U.S. Indexes & Yields
The S&P 500 index traded up 0.1% to 4,455.59 and the Nasdaq Composite edged higher 0.2% to 13,816.77.
The S&P 500 index advanced 5.2% in June and jumped 7% in the second quarter, third quarterly gain in a row and jumped 15.9% in the first half.
The Nasdaq Composite increased 5.1% in June, advanced 11.2% in the second quarter and soared nearly 31.7% in the first half of 2023.
The yield on 2-year Treasury notes increased to 4.93%, 10-year Treasury notes inched higher to 3.85% and 30-year Treasury bonds edged up to 3.86%.
Crude oil advanced after Saudi Arabia and Russia announced production cuts to bolster international prices.
Saudi Arabia said it will extend its voluntary production cut of one million barrels per day to August and added it may prolong cuts further.
Saudi Arabia's daily production is expected to drop to 9 million barrels per day, the lowest since 2017.
Russia said it will lower its exports by 500,000 barrels per day in July.
Crude oil decreased $0.49 to $70.15 a barrel and natural gas prices decreased 8 cents to $2.71 a thermal unit.
U.S. Stock Movers
Tesla Inc jumped 8.5% to $283.86 after the maker of electric vehicles reported deliveries and production of electric vehicles in the second quarter.
Chinese electric vehicle makers trading in New York advanced after Tesla reported higher-than-expected quarterly production and deliveries.
Xpeng Inc jumped 7% and Nio Inc gained 5%.
BYD jumped 4% in Hong Kong and Shanghai trading after the Shenzhen-based company backed by Berkshire Hathaway shipped 253,046 vehicles in June, 5.3% more than in May when it shipped 239,092 vehicles.
BYD released the data in a filing with the Hong Kong Stock Exchange earlier in the day.
The largest Chinese automaker delivered 1.26 million vehicles in the first half, compared to 1.86 million vehicles in all of 2022 and 320,810 in 2020.
Apple Inc edged down 0.6% to $192.94 after a report suggested that the company is looking to scale back production of Vision Pro headsets.
European Markets Turned Higher
European markets retained upward bias and investors awaited the release of manufacturing data in the region.
Market indexes in Frankfurt and Paris advanced for the third quarter in a row and indexes extended gains after inflation in the currency union eased but stayed above the European Central Bank's 2% target.
Investors are anticipating policymakers to continue advancing interest rates in the months ahead but hoping that the labor market strength, weakening energy prices and robust exports will help the region's economy fall into a recession.
The Eurozone PMI index in the final reading declined after demand for goods fell sharply towards the end of the second quarter, S&P Global reported in its survey on Monday.
The Manufacturing Purchasing Managers' Index fell to 43.4 in June from 43.6 in May.
The Italian operating conditions weakened in June, according to the latest manufacturing industry survey by S&P Global.
Purchasing Managers' Index declined 43.8 from 45.9 in May, the largest fall in operating environment since April 2020, after production fell the most in three years and sales weakened to an eight-month low.
In other economic news, Swiss inflation eased to 1.7% in June from 2.2% in May, Swiss Federal Statistical Office reported Monday.
Falling energy prices, strong Swiss franc and tight price controls kept inflation forces in control.
In the week ahead, investors are awaiting payrolls data from the U.S. and minutes of meeting from the U.S. Federal Reserve.
Europe Indexes & Yields
The DAX index decreased 0.4% to 16,081.04, the CAC-40 index fell 0.2% to 7,386.70 and the FTSE 100 index decreased 0.05% to 7,527.26.
The yield on 10-year German Bunds inched higher to 2.39%, French bonds traded lower to 2.93%, the UK gilts edged down to 4.39% and Italian bonds decreased to 4.08%.
The euro edged higher to $1.088, the British pound to $1.267 and the U.S. dollar fetched 89.99 Swiss cents
Brent crude decreased $0.348to $74.90 a barrel and the Dutch TTF natural gas decreased €2.96 to €34.15 per MWh.
Europe Stock Movers
Tesla Inc soared in Frankfurt trading after the maker of electric vehicles reported record deliveries in the second quarter on Sunday.
Mining companies gained on the hopes of stimulus from the Chinese government after China's manufacturing index declined in June.
Glencore, Antofagasta, and Anglo American advanced between 2% and 4%.
Nokia Oyj increased 2.5% to €3.93 after the company signed a new patent cross-licensing agreement with Apple Inc.
AstraZeneca Plc declined 5.6% to 10,638.0 after the latest results from a broad study for a cancer drug lagged expectations.
Saint Gobain SA increased 0.6% to €56.04 after the company signed an agreement to sell its glass processing division COVIPOR in Portugal to PNI Portugal.
Generali SpA gained 3.3% to €19.24 after Delfin won a regulatory approval to hold more than 10% stake in the Italian insurance company.
Technip Energies NV increased 0.5% to €20.91 after the French engineering and technology firm said it acquired the sustainable process development company Processium for an undisclosed amount.
Asian Markets Closed Higher
Japan's business sentiment improved in the second quarter, according to the Tankan survey conducted by the Bank of Japan.
Sentiment among large manufacturing businesses improved +5, rebounding from +1 in the first quarter and the sentiment index for non-manufacturing businesses increased +23 from +22 in March, and increased to the highest level since June 2019.
China's manufacturing activities expanded at a slower pace in June, according to a survey conducted by Caixin.
Manufacturing purchasing managers' index eased to 50.5 in June from 50.9 in May and reflecting the weakness reported by the National Bureau of Statistics in its official index to 49.0 in June compared to 48.8 in May.
The Nikkei 225 index in Tokyo advanced 1.7%, the Hang Seng index jumped 2% on the back of a rally in tech stocks.
The Shanghai SSE Composite index increased 1.3% on the hopes that the Chinese government will announce more stimulus measures after a private survey showed contraction in manufacturing for the second month in a row in June.
The Sensex index in Mumbai soared 0.8% and closed at a new record high on economic optimism and sustained buying by foreign investors.
Movers: Apple, AstraZeneca, Nio, Rivian, Tesla, Xpeng
Scott Peters
03 Jul, 2023
New York City
The S&P 500 index traded nearly unchanged at 4,452.02 and the Nasdaq Composite edged higher 0.3% to 13,830.38..
The S&P 500 index advanced 5.2% in June and jumped 7% in the second quarter, the third quarterly gain in a row and jumped 15.9% in the first half.
The Nasdaq Composite increased 5.1% in June, advanced 11.2% in the second quarter and soared nearly 31.7% in the first half of 2023.
Tesla Inc jumped 8.5% to $283.86 after the maker of electric vehicles reported deliveries and production of electric vehicles in the second quarter.
Tesla shares are up 156% in the year sofar.
The company produced 479,700 vehicles and delivered 466,140 in the second quarter.
The company produced 258,500 vehicles and delivered 254,695 vehicles in the quarter a year ago.
Sales in the latest quarter were supported by as much as $10,000 incentives and $7,500 federal tax credit under the U.S. Inflation Reduction Act.
Rivian Automotive Inc jumped 14.8% to $19.14 after the maker of pickups and SUVs said it delivered 12,640 vehicles in the second quarter, an increase of 59% from the previous quarter.
The company reiterated its annual production target of 50,000.
Chinese electric vehicle makers trading in New York advanced after Tesla reported higher-than-expected quarterly production and deliveries.
Xpeng Inc jumped 7% and Nio Inc gained 5%.
Apple Inc edged down 0.6% to $192.94 after a report suggested that the company is looking to scale back production of Vision Pro headsets.
AstraZeneca Plc declined 5.6% to 10,638.0 pence in London and fell 8.9% to $65.19 in New York trading after the latest results from a broad study for a cancer drug lagged expectations.
The company announced disappointing preliminary results for a phase three trial of experimental lung cancer treatment drug.
Stable U.S. Market Averages After Stellar First Half
Barry Adams
03 Jul, 2023
New York City
Stocks on Wall Street traded flat on the first day of trading in the second half.
Market indexes showed little movement at the start of the second half after surging in the first half and the Nasdaq Composite index driven by the tech stocks reported its best performance in the period in four decades.
The S&P 500 index advanced 15.9% and the Nasdaq Composite index jumped 31.7% in the first half.
Investors are hoping that despite the Federal Reserve's hawkish stance and the expected increase in interest rates by another 50 basis points, the U.S. economy may experience a shallow recession.
The S&P 500 index advanced over 5% in June and jumped over 7% in the second quarter and soared 15.9% in the first half.
The Nasdaq Composite increased over 5% in June, advanced over 12% in the second quarter and jumped nearly 31.7% in the first half.
European markets closed higher on Friday and extended gains in the second quarter and in the first half.
At the end of the first half, the DAX index advanced 14.8%, the CAC-40 index gained 12.2% but the FTSE 100 index fell 0.3%.
Crude oil prices declined 7% in the second quarter and extended the first half fall to 12%.
In other overseas news, Japan's business sentiment improved in the second quarter, according to the Tankan survey conducted by the Bank of Japan.
Sentiment among large manufacturing businesses improved +5, rebounding from +1 in the first quarter and the sentiment index for non-manufacturing businesses increased +23 from +22 in March, and increased to the highest level since June 2019.
China's manufacturing activities expanded at a slower pace in June, according to a survey conducted by Caixin.
Manufacturing purchasing managers' index eased to 50.5 in June from 50.9 in May and reflecting the weakness reported by the National Bureau of Statistics in its official index to 49.0 in June compared to 48.8 in May.
U.S. Indexes & Yields
The S&P 500 index traded nearly unchanged at 4,452.02 and the Nasdaq Composite edged higher 0.3% to 13,830.38..
The S&P 500 index advanced 5.2% in June and jumped 7% in the second quarter, third quarterly gain in a row and jumped 15.9% in the first half.
The Nasdaq Composite increased 5.1% in June, advanced 11.2% in the second quarter and soared nearly 31.7% in the first half of 2023.
The yield on 2-year Treasury notes increased to 4.93%, 10-year Treasury notes inched higher to 3.85% and 30-year Treasury bonds edged up to 3.86%.
Crude oil advanced after Saudi Arabia and Russia announced production cuts to bolster international prices.
Saudi Arabia said it will extend its voluntary production cut of one million barrels per day to August and added it may prolong cuts further.
Saudi Arabia's daily production is expected to drop to 9 million barrels per day, the lowest since 2017.
Russia said it will lower its exports by 500,000 barrels per day in July.
Crude oil increased $0.22 to $70.85 a barrel and natural gas prices decreased 8 cents to $2.71 a thermal unit.
U.S. Stock Movers
Tesla Inc jumped 8.5% to $283.86 after the maker of electric vehicles reported deliveries and production of electric vehicles in the second quarter.
Chinese electric vehicle makers trading in New York advanced after Tesla reported higher-than-expected quarterly production and deliveries.
Xpeng Inc jumped 7% and Nio Inc gained 5%.
Apple Inc edged down 0.6% to $192.94 after a report suggested that the company is looking to scale back production of Vision Pro headsets.
Europe Movers: Generali, Nokia, Saint Gobain, Technip Energies, Tesla
Bridgette Randall
03 Jul, 2023
Frankfurt
The DAX index increased 0.1% to 16,160.39, the CAC-40 index jumped 0.1% to 7,409.80 and the FTSE 100 index increased 0.3% to 7,554.28.
The yield on 10-year German Bunds inched higher to 2.39%, French bonds traded lower to 2.93%, the UK gilts edged down to 4.39% and Italian bonds decreased to 4.08%.
Tesla Inc soared in Frankfurt trading after the maker of electric vehicles reported record deliveries in the second quarter on Sunday.
Mining companies gained on the hopes of stimulus from the Chinese government after China's manufacturing index declined in June.
Glencore, Antofagasta, and Anglo American advanced between 2% and 4%.
Nokia Oyj increased 2.5% to €3.93 after the company signed a new patent cross-licensing agreement with Apple Inc.
AstraZeneca Plc declined 5.6% to 10,638.0 after the latest results from a broad study for a cancer drug lagged expectations.
Saint Gobain SA increased 0.6% to €56.04 after the company signed an agreement to sell its glass processing division COVIPOR in Portugal to PNI Portugal.
Generali SpA gained 3.3% to €19.24 after Delfin won a regulatory approval to hold more than 10% stake in the Italian insurance company.
Technip Energies NV increased 0.5% to €20.91 after the French engineering and technology firm said it acquired the sustainable process development company Processium for an undisclosed amount.
European Markets Edged Higher In July Amid Economic Slowdown Worries
Bridgette Randall
03 Jul, 2023
Frankfurt
European markets retained upward bias and investors awaited the release of manufacturing data in the region.
Market indexes in Frankfurt and Paris advanced for the third quarter in a row and indexes extended gains after inflation in the currency union eased but stayed above the European Central Bank's 2% target.
Investors are anticipating policymakers to continue advancing interest rates in the months ahead but hoping that the labor market strength, weakening energy prices and robust exports will help the region's economy fall into a recession.
The Eurozone PMI index in the final reading declined after demand for goods fell sharply towards the end of the second quarter, S&P Global reported in its survey on Monday.
The Manufacturing Purchasing Managers' Index fell to 43.4 in June from 43.6 in May.
The Italian operating conditions weakened in June, according to the latest manufacturing industry survey by S&P Global.
Purchasing Managers' Index declined 43.8 from 45.9 in May, the largest fall in operating environment since April 2020, after production fell the most in three years and sales weakened to an eight-month low.
In other economic news, Swiss inflation eased to 1.7% in June from 2.2% in May, Swiss Federal Statistical Office reported Monday.
Falling energy prices, strong Swiss franc and tight price controls kept inflation forces in control.
In the week ahead, investors are awaiting payrolls data from the U.S. and minutes of meeting from the U.S. Federal Reserve.
Europe Indexes & Yields
The DAX index increased 0.1% to 16,160.39, the CAC-40 index jumped 0.1% to 7,409.80 and the FTSE 100 index increased 0.3% to 7,554.28.
The yield on 10-year German Bunds inched higher to 2.39%, French bonds traded lower to 2.93%, the UK gilts edged down to 4.39% and Italian bonds decreased to 4.08%.
The euro edged higher to $1.088, the British pound to $1.267 and the U.S. dollar fetched 89.99 Swiss cents
Brent crude increased $0.68 to $76.69 a barrel and the Dutch TTF natural gas increased €0.38 to €36.70 per MWh.
Europe Stock Movers
Tesla Inc soared in Frankfurt trading after the maker of electric vehicles reported record deliveries in the second quarter on Sunday.
Mining companies gained on the hopes of stimulus from the Chinese government after China's manufacturing index declined in June.
Glencore, Antofagasta, and Anglo American advanced between 2% and 4%.
Nokia Oyj increased 2.5% to €3.93 after the company signed a new patent cross-licensing agreement with Apple Inc.
AstraZeneca Plc declined 5.6% to 10,638.0 after the latest results from a broad study for a cancer drug lagged expectations.
Saint Gobain SA increased 0.6% to €56.04 after the company signed an agreement to sell its glass processing division COVIPOR in Portugal to PNI Portugal.
Generali SpA gained 3.3% to €19.24 after Delfin won a regulatory approval to hold more than 10% stake in the Italian insurance company.
Technip Energies NV increased 0.5% to €20.91 after the French engineering and technology firm said it acquired the sustainable process development company Processium for an undisclosed amount.