BoJ Holds Rates, Nikkei Drops to 3-Week Lows, Yen Weakens to 5-Month Low

Akira Ito
19 Dec, 2024
Tokyo

Stock market indexes in Tokyo fell sharply after investors reviewed rate decisions from the Bank of Japan and the U.S. Federal Reserve. 

The Nikkei 2225 stock average declined as much as 1%, and the broader Topix index dropped 0.4% before recovering some of the losses in the session. 

The Bank of Japan held its policy rate around 0.25%, the highest level since 2008, citing that Japan's economy is on a moderate recovery driven by improving corporate profit and business spending, but the growth in industrial profits and exports is lagging. 

The policy committee estimated annual consumer price inflation to range between 2.0% and 2.5%, driven in large part by service inflation. 

The U.S. Federal Reserve lowered its fed funds rates range by 25 basis points to between 4.25% and 4.50% and signaled possible rate cuts totaling 50 basis points in 2025, compared to the previous estimate of as much as 100 basis points expected last quarter. 

Following the rate decisions announcement, the S&P 500 index dropped 3% and the Nasdaq Composite plunged 3.5%.

Benchmark indexes in Tokyo spent the entire session in negative territory after the Fed's hawkish outlook and confirming that the central bank is struggling to bring down inflation to its target rate of 2%. 

The Japanese yen faced renewed selling pressure after the BoJ postponed its rate hike and raised the possibility of the central bank waiting till the end of the annual spring wage negotiations. 

Japan Stock Movers 

The Nikkei 225 Stock Average decreased 0.7% to 38,813.58, and the broader Topix index fell 0.2% to 2,713.83. 

Tech stocks led the decliners, but banks and shipping companies led the gainers in Tokyo trading. 

Advantest Corp. declined 0.8% to ¥8,690, Tokyo Electron decreased 1.4% to ¥23,450, Screen Holdings jumped 0.7% to ¥9,301, and SoftBank Group fell 4.4% to ¥9,025. 

Nissan Motor Co. Ltd. jumped 6.5% to ¥444.80 and extended two-day gains to over 27% after the company entered into merger talks with Honda Motor. 

Honda Motor Co. Ltd. decreased 1.9% to ¥1,220 and extended two-day losses to over 10%.

Mitsubishi Motors Corp corrected 3.8% to ¥469.0 after surging more than 15% in the previous session on speculation that the company may join the amalgamation talks between Honda and Nissan. 

Banks and financial services providers advanced after the Bank of Japan held steady its policy rate and signaled future rate hikes are likely to be "gradual." 

Sumitomo Mitsui Financial jumped 2.3% to ¥3,744, Mitsubishi UFJ Financial Group advanced 1.2% to ¥1,834.50, and Mizuho Financial Group jumped 2% to ¥3,857.0. 

Kawasaki Kisen Kaisha Ltd. jumped 2.4% to ¥2,142.50, Mitsui O.S.K. Lines added 1% to ¥5,280, and Nippon Yusen KK inched up 1.8% to ¥5,122.0. 

BoJ Holds Rates, Nikkei Drops to 3-Week Lows, Yen Weakens to 5-Month Low

Akira Ito
19 Dec, 2024
Tokyo

Stock market indexes in Tokyo fell sharply after investors reviewed rate decisions from the Bank of Japan and the U.S. Federal Reserve. 

The Nikkei 2225 stock average declined as much as 1%, and the broader Topix index dropped 0.4% before recovering some of the losses in the session. 

The Bank of Japan held its policy rate around 0.25%, the highest level since 2008, citing that Japan's economy is on a moderate recovery driven by improving corporate profit and business spending, but the growth in industrial profits and exports is lagging. 

The policy committee estimated annual consumer price inflation to range between 2.0% and 2.5%, driven in large part by service inflation. 

The U.S. Federal Reserve lowered its fed funds rates range by 25 basis points to between 4.25% and 4.50% and signaled possible rate cuts totaling 50 basis points in 2025, compared to the previous estimate of as much as 100 basis points expected last quarter. 

Following the rate decisions announcement, the S&P 500 index dropped 3% and the Nasdaq Composite plunged 3.5%.

Benchmark indexes in Tokyo spent the entire session in negative territory after the Fed's hawkish outlook and confirming that the central bank is struggling to bring down inflation to its target rate of 2%. 

The Japanese yen faced renewed selling pressure after the BoJ postponed its rate hike and raised the possibility of the central bank waiting till the end of the annual spring wage negotiations. 

Japan Stock Movers 

The Nikkei 225 Stock Average decreased 0.7% to 38,813.58, and the broader Topix index fell 0.2% to 2,713.83. 

Tech stocks led the decliners, but banks and shipping companies led the gainers in Tokyo trading. 

Advantest Corp. declined 0.8% to ¥8,690, Tokyo Electron decreased 1.4% to ¥23,450, Screen Holdings jumped 0.7% to ¥9,301, and SoftBank Group fell 4.4% to ¥9,025. 

Nissan Motor Co. Ltd. jumped 6.5% to ¥444.80 and extended two-day gains to over 27% after the company entered into merger talks with Honda Motor. 

Honda Motor Co. Ltd. decreased 1.9% to ¥1,220 and extended two-day losses to over 10%.

Mitsubishi Motors Corp corrected 3.8% to ¥469.0 after surging more than 15% in the previous session on speculation that the company may join the amalgamation talks between Honda and Nissan. 

Banks and financial services providers advanced after the Bank of Japan held steady its policy rate and signaled future rate hikes are likely to be "gradual." 

Sumitomo Mitsui Financial jumped 2.3% to ¥3,744, Mitsubishi UFJ Financial Group advanced 1.2% to ¥1,834.50, and Mizuho Financial Group jumped 2% to ¥3,857.0. 

Kawasaki Kisen Kaisha Ltd. jumped 2.4% to ¥2,142.50, Mitsui O.S.K. Lines added 1% to ¥5,280, and Nippon Yusen KK inched up 1.8% to ¥5,122.0. 

China and Hog Kong Stocks Trend Lower and Yuan Drops After Fed's Hawkish Outlook

Li Chen
19 Dec, 2024
Hong Kong

Stock market indexes in China and Hong Kong headed lower after rate decisions from the U.S. Federal Reserve and the Bank of Japan. 

The Hang Seng index recovered to a decline of 0.3% after falling as low as 1%, and the CSI 300 rebounded to a gain of 0.3% from the decline of 0.5%. 

Market sentiment soured after the U.S. Federal Reserve signaled fewer rate cuts in 2025 amid resurgent inflation and policy uncertainty. 

The Federal Reserve lowered the fed funds rate by 25 basis points, as widely anticipated, to a new range of 4.25% and 4.50% and raised the prospects of a rate pause at the next meeting in January. 

Benchmark indexes in New York quickly came under the pressure after the rate decision, and they dropped around 3.5% in overnight trading in New York. 

The Hong Kong Monetary Authority lowered its reference rate by 25 basis points to 4.75%, matching the U.S. Fed move and preserving the Hong Kong dollar's parity with the U.S. dollar. 

In other economic news, the Bank of Japan held its key rate around 0.25%, as widely anticipated, citing moderate improvement in economic conditions. 

The policy committee estimated annual consumer price inflation to range between 2.0% and 2.5% in 2025, driven in large part by service inflation. 

China Stock Movers 

The Hang Seng index fell 0.3% to 19,801.09, and the mainland-focused CSI 300 index added 0.3% to 3,952.92. 

The offshore yuan rate dropped to 7.32 against the U.S. dollar, the lowest since November 2023, after the Fed's rate decisions and more hawkish outlook than previously estimated.

Property stocks fell after the HKMA lowered rates tracking the U.S. Fed's move, but investors worried that slower and fewer rate cuts in 2025 could dent demand for new homes. 

Henderson Land Development Co. Ltd. decreased 3.5% to HK $23.25, Sun Hung Kai Properties Ltd. fell 2.4% to HK $72.20, and Hang Lung Properties dropped 2% to $6.18. 

Alibaba Group Holding dropped 1.5% to HK $82.80, Tencent Holdings jumped 2.9% to HK $417.60, and Meituan declined 1.5% to $157.80. 

China and Hog Kong Stocks Trend Lower and Yuan Drops After Fed's Hawkish Outlook

Li Chen
19 Dec, 2024
Hong Kong

Stock market indexes in China and Hong Kong headed lower after rate decisions from the U.S. Federal Reserve and the Bank of Japan. 

The Hang Seng index recovered to a decline of 0.3% after falling as low as 1%, and the CSI 300 rebounded to a gain of 0.3% from the decline of 0.5%. 

Market sentiment soured after the U.S. Federal Reserve signaled fewer rate cuts in 2025 amid resurgent inflation and policy uncertainty. 

The Federal Reserve lowered the fed funds rate by 25 basis points, as widely anticipated, to a new range of 4.25% and 4.50% and raised the prospects of a rate pause at the next meeting in January. 

Benchmark indexes in New York quickly came under the pressure after the rate decision, and they dropped around 3.5% in overnight trading in New York. 

The Hong Kong Monetary Authority lowered its reference rate by 25 basis points to 4.75%, matching the U.S. Fed move and preserving the Hong Kong dollar's parity with the U.S. dollar. 

In other economic news, the Bank of Japan held its key rate around 0.25%, as widely anticipated, citing moderate improvement in economic conditions. 

The policy committee estimated annual consumer price inflation to range between 2.0% and 2.5% in 2025, driven in large part by service inflation. 

China Stock Movers 

The Hang Seng index fell 0.3% to 19,801.09, and the mainland-focused CSI 300 index added 0.3% to 3,952.92. 

The offshore yuan rate dropped to 7.32 against the U.S. dollar, the lowest since November 2023, after the Fed's rate decisions and more hawkish outlook than previously estimated.

Property stocks fell after the HKMA lowered rates tracking the U.S. Fed's move, but investors worried that slower and fewer rate cuts in 2025 could dent demand for new homes. 

Henderson Land Development Co. Ltd. decreased 3.5% to HK $23.25, Sun Hung Kai Properties Ltd. fell 2.4% to HK $72.20, and Hang Lung Properties dropped 2% to $6.18. 

Alibaba Group Holding dropped 1.5% to HK $82.80, Tencent Holdings jumped 2.9% to HK $417.60, and Meituan declined 1.5% to $157.80. 

India Movers: Indowind, IOL Chemicals, IPCA Labs, Gujrat Toolroom, Gulshan Polyols, Swelect Energy, Vakrangee

Arun Goswami
19 Dec, 2024
Mumbai

India's benchmark indexes extended weekly losses to nearly 2% following the weakness in Asian markets after rate decisions from the U.S. Federal Reserve and the Bank of Japan. 

The Sensex index decreased by 0.9% to 79,409.64, and the Nifty index declined by 1.0% to 23,966.

On the Mumbai stock exchange, 84 stocks traded at their 52-week highs, and 45 stocks traded at their 52-week lows.

The yield on the 10-year Indian government bonds inched higher to 6.79%, and the Indian rupee eased to 85.04 against the U.S. dollar.

IPCA Laboratories Ltd. increased 2.2% to ₹1,546.60, and the company promoter Usha M Chandurkar lowered her stake in the company to 1.6% from 3.3%. 

Chandurkar sold 40 lakh shares at an average price of ₹1,501.52 and raised ₹601 crore. 

IOL Chemicals and Pharmaceuticals Ltd. advanced 5.6% to ₹430.20 after the company scheduled a board meeting on December 27 to consider a stock split. 

Indowind Energy Ltd. edged up 0.4% to ₹25.51 after the company's board approved a rights issue of ₹50 crore and an international offering of $30 million. 

Vakrangee Limited soared 7% to ₹31.25 after the company struck a partnership with Canara Bank to offer banking services through its network of stores.

Gulshan Polyols Ltd. gained 3.2% to ₹181.07 after the company received a production-linked incentive of ₹2 per liter for bio-ethanol, totaling ₹50 crore over three years.

Gujarat Toolroom decreased 2.3% to ₹13.60, and the company announced a secondary offering to raise as much as ₹95.7 crore with a floor price of ₹13.30 per share. 

Swelect Energy Systems advanced 5.4% to ₹1,132.60 after the company said it plans to sell nonconvertible debentures to raise as much as ₹138.5 crore. 

India Movers: Indowind, IOL Chemicals, IPCA Labs, Gujrat Toolroom, Gulshan Polyols, Swelect Energy, Vakrangee

Arun Goswami
19 Dec, 2024
Mumbai

India's benchmark indexes extended weekly losses to nearly 2% following the weakness in Asian markets after rate decisions from the U.S. Federal Reserve and the Bank of Japan. 

The Sensex index decreased by 0.9% to 79,409.64, and the Nifty index declined by 1.0% to 23,966.

On the Mumbai stock exchange, 84 stocks traded at their 52-week highs, and 45 stocks traded at their 52-week lows.

The yield on the 10-year Indian government bonds inched higher to 6.79%, and the Indian rupee eased to 85.04 against the U.S. dollar.

IPCA Laboratories Ltd. increased 2.2% to ₹1,546.60, and the company promoter Usha M Chandurkar lowered her stake in the company to 1.6% from 3.3%. 

Chandurkar sold 40 lakh shares at an average price of ₹1,501.52 and raised ₹601 crore. 

IOL Chemicals and Pharmaceuticals Ltd. advanced 5.6% to ₹430.20 after the company scheduled a board meeting on December 27 to consider a stock split. 

Indowind Energy Ltd. edged up 0.4% to ₹25.51 after the company's board approved a rights issue of ₹50 crore and an international offering of $30 million. 

Vakrangee Limited soared 7% to ₹31.25 after the company struck a partnership with Canara Bank to offer banking services through its network of stores.

Gulshan Polyols Ltd. gained 3.2% to ₹181.07 after the company received a production-linked incentive of ₹2 per liter for bio-ethanol, totaling ₹50 crore over three years.

Gujarat Toolroom decreased 2.3% to ₹13.60, and the company announced a secondary offering to raise as much as ₹95.7 crore with a floor price of ₹13.30 per share. 

Swelect Energy Systems advanced 5.4% to ₹1,132.60 after the company said it plans to sell nonconvertible debentures to raise as much as ₹138.5 crore. 

U.S. Housing Starts Dropped but Completions Advanced In November

Brian Turner
18 Dec, 2024
Washington, D.C.

Housing starts in November unexpectedly declined and dropped to the lowest level in four months, according to the U.S. Census Bureau. 

Privately owned housing starts were at a seasonally adjusted annual rate of 1.289 million, 1.8% below the revised level of 1.312 million, and 14.6% below the rate of 1.51 million in the month a year ago. 

Building permits, authorized housing but not started yet, were at a seasonally adjusted rate of 1.505 million in November, an increase of 6.1% from the previous month but 0.2% below the rate in the month a year ago. 

However, housing completions were at a seasonally adjusted rate of 1.6 million in November, a decline of 1.9% from the previous month and an increase of 9.2% from a year ago. 

U.S. Housing Starts Dropped but Completions Advanced In November

Brian Turner
18 Dec, 2024
Washington, D.C.

Housing starts in November unexpectedly declined and dropped to the lowest level in four months, according to the U.S. Census Bureau. 

Privately owned housing starts were at a seasonally adjusted annual rate of 1.289 million, 1.8% below the revised level of 1.312 million, and 14.6% below the rate of 1.51 million in the month a year ago. 

Building permits, authorized housing but not started yet, were at a seasonally adjusted rate of 1.505 million in November, an increase of 6.1% from the previous month but 0.2% below the rate in the month a year ago. 

However, housing completions were at a seasonally adjusted rate of 1.6 million in November, a decline of 1.9% from the previous month and an increase of 9.2% from a year ago. 

U.S. and World Markets Trade Sideways Ahead of Rate Decisions

Alexander Garcia
18 Dec, 2024
Miami

Stock market indexes on Wall Street stayed mildly positive in trading ahead of the Fed's rate decisions later today. 

The S&P 500 index advanced 0.3%, the Nasdaq Composite gained 0.2%, and investors are anticipating that the Federal Reserve will cut the fed funds rates by 25 basis points. 

The Fed's Summary of Projections will be in focus as investors are looking forward to policymakers' estimates on economic growth, inflation, and the labor market. 

The Federal Reserve's decision is scheduled to be announced at 2:00 p.m. ET. 

The central bank is widely expected to temper expectations of future rate cuts amid resurgent inflation and policy uncertainty surrounding the incoming presidential administration. 

Investors are worried that the sharp escalation in trade tariffs proposed by the President-elect Donald Trump could stoke inflationary pressures, forcing the Fed to keep higher interest rates for longer. 

Despite eleven rate hikes over 2022 and 2023, inflation has stayed well above the Fed's target rate of 2%, and a rate cut by the Fed is likely to fuel inflationary forces in the months ahead. 

Moreover, policymakers appear to have run out of tools to lower inflation further, as most of the decline in inflation over the last eighteen months has been driven by the weakening in energy prices. 

U.S. Housing Starts Dropped but Completions Advanced In November

Housing starts in November unexpectedly declined and dropped to the lowest level in four months, according to the U.S. Census Bureau. 

Privately owned housing starts were at a seasonally adjusted annual rate of 1.289 million, 1.8% below the revised level of 1.312 million, and 14.6% below the rate of 1.51 million in the month a year ago. 

Building permits, authorized housing but not started yet, were at a seasonally adjusted rate of 1.505 million in November, an increase of 6.1% from the previous month but 0.2% below the rate in the month a year ago. 

However, housing completions were at a seasonally adjusted rate of 1.6 million in November, a decline of 1.9% from the previous month and an increase of 9.2% from a year ago. 

U.S. Indexes and Treasury Yields

The S&P 500 index increased 0.2% to 6,063.18, the Nasdaq Composite rose 0.2% to 20,156.34, and the Russell 2000 index rose by 0.2% to 2,340.04. 

The yield on 2-year Treasury notes edged lower to 4.26%, 10-year Treasury notes inched down to 4.42%, and 30-year Treasury bonds increased to 4.61%.

WTI crude oil increased $0.93 to $70.01 a barrel, and natural gas prices edged up 12 cents to $3.43 a thermal unit.

Gold decreased by $11.25 to $2,636.43 an ounce, and silver fell by $0.35 to $30.15. 

The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher by 0.01 to 106.96.

U.S. Stock Movers 

General Mills declined 5.7% to $62.0 despite the food product maker reporting better-than-expected sales in its quarter. 

Merck & Co. increased 1.1% to $101.21, and the pharmaceutical company signed an exclusive global license agreement with the China-based Hansho Pharmaceuticals.

Merck plans to develop and commercialize a Chinese company's experimental obesity drug with an upfront payment of $112 million and additional milestone payments of up to $1.9 billion.

Birkenstock Holding PLC soared 5.6% to $58.89 after the designer sandals maker reported better-than-expected fiscal fourth quarter results, driven by higher full-price sales in the U.S. and Asia. 

Revenue in the fiscal fourth quarter ending in September increased 21% to €1.8 billion from €1.49 billion, net income soared 155% to €191.6 million from €75 million, and diluted earnings per share advanced 161% to €1.02 from 41 cents a year ago. 

The company registered a double-digit increase in sales across all regions, with sales in the Americas advancing 19%, in Europe gaining 21%, and Asia Pacific, the Middle East, and Africa soaring 42%. 

Jabil Inc. surged 9.7% to $146.90 after the electronics manufacturing company reported better-than-expected fiscal first quarter earnings and the company lifted its full-year outlook. 

UK's Inflation Accelerated Ahead of BoE Rate Decisions, Pound Holds Firm Euro Retains Downward Bias 

European markets hugged the flatline, the euro retained its downward bias, and the pound held firm ahead of rate decisions from the Bank of England. 

Benchmark indexes in Paris, Frankfurt, and London edged slightly higher in quiet trading, and investors reviewed the latest inflation update in the U.K. 

The UK's consumer price inflation accelerated to 2.6% in November from 2.3% in October, the Office for National Statistics reported Wednesday. 

Core inflation, which excludes volatile food, alcohol, tobacco, and energy prices, advanced to 3.5% in November from 3.3% in the previous month.

The latest inflation report supports the case for the Bank of England to hold rates steady at its final meeting of the year on Thursday. 

The Federal Reserve is scheduled to announce its rate decisions and economic outlook later today, and investors are anticipating a cut of 25 basis points. 

In addition, investors are estimating slower rate cuts in 2025, totaling one percentage point amid stubborn inflation and policy uncertainties of the Trump administration. 

Europe Indexes and Yields

The DAX index increased by 0.01% to 20,250.56; the CAC-40 index rose by 0.3% to 7,383.88; and the FTSE 100 index inched higher by 0.2% to 8,211.95.

The yield on 10-year German bonds edged higher to 2.24%, French bonds inched up to 3.04%, the UK gilts increased to 4.55%, and Italian bonds increased to 3.41%.

The euro edged higher to $1.05; the British pound inched up to $1.27; and the U.S. dollar advanced to 89.35 Swiss cents.

Brent crude increased $0.73 to $73.91 a barrel, and the Dutch TTF natural gas fell by €0.90 to €41.13 per MWh. 

Europe Stock Movers

Renault SA advanced 5.8% to €47.09 after reports in Japan confirmed that Honda and Nissan have initiated merger talks. 

The French automaker, Renault, owns 23% of Nissan, and Mitsubishi may join the merger. 

Japanese automakers are struggling to gain market share amid rising competition from Chinese electric vehicle makers in Asia and South America. 

Kingfisher plc advanced 0.8% to 254.80 pence, and the British home improvement company agreed to sell Brico Depot Romania to Altex Romania for €70 million. 

ASSA ABLOY advanced 1.4% to SEK 344.20, and the access solution provider said it acquired the U.S.-based Norshield Security Products. 

Kontron AG jumped 9% to €19.57 after the German technology company said it has received an order of 165 million from a European defense company. 

Hardide PLC soared 29.6% to 6.14 pence after the tungsten carbide coating company said it secured a ten-year contract for coating aerospace cargo door components. 

Character Group PLC jumped 3.8% to 274 pence after the toy and games company reported fiscal 2024 results that met investor expectations. 

Revenue in the fiscal year ending in August increased to £123.4 million from £122.6 million, pre-tax profit advanced to £5.7 million from £4.7 million, and diluted earnings per share rose to 29.72 pence from 20.0 pence a year earlier. 

The company declared a dividend per share of 19 pence, matching the level in the previous year. 

Yen In Focus Ahead of Rate Decisions, Japan's Trade Deficit Shrinks In November 

Market sentiment in Tokyo was negative amid domestic monetary policy uncertainty and rising trade tensions with the U.S. 

The Nikkei 225 stock average declined 0.5%, and the Topix index fell 0.1% ahead of the Bank of Japan's rate decisions on Thursday. 

The Bank of Japan is likely to postpone its rate hike in 2025 as policymakers await more signals on wage growth at small- and mid-sized firms. 

SMEs have been reluctant to match 5.1% wage hikes at large corporations in 2024, amid weak profit outlook and persistent challenges in the domestic economy. 

Small and mid-sized enterprises spend about 70% of their profit on wages, significantly higher than 40% at large and international corporations, according to a September quarter corporate survey released by the finance ministry in early December. 

The yen held firm at 143.05 against the U.S. dollar ahead of the U.S. Federal Reserve's rate decisions later today. 

The U.S. Fed is widely expected to lower its fed funds rate range by 25 basis points, and the central bank is likely to announce fewer possible rate cuts in 2025 amid a resurgent inflation. 

The BoJ's possible rate hike and additional interest rate cuts by the Federal Reserve in 2025 are expected to narrow the rate differential between the U.S. and Japan. 

Japan's Trade Deficit Unexpectedly Shrank In November

Japan's trade deficit unexpectedly shrank in November after exports rose and imports declined. 

Japan's exports in November rose 3.8% to 9.15 trillion yen, and imports eased 3.9% to 9.32 trillion yen, resulting in a trade deficit of 117.6 billion yen, according to data available from the ministry of finance. 

Exports expanded for the third consecutive month and advanced from a 3.1% increase in October and a decline of 1.7% in September. 

Exports to China rose 8.9%, to Taiwan advanced 19.8%, to India jumped 9.8%, and to South Korea advanced 5.0%. 

Shipments to the ASEAN region advanced 5.5%. 

However, exports to the U.S. fell 8%, to Germany declined 11.8%, and to the European Union dropped 12.5%. 

Japan recorded a trade deficit in nine of the eleven months in 2024, as the price of imported energy products stays elevated and growth in exports remains anemic. 

Japan Stock Movers 

The Nikkei 225 Stock Average decreased 0.5% to 39,179.01, and the broader Topix index declined 0.1% to 2,725.44. 

Tech stocks in Tokyo headed lower for the second day in a row, tracking losses in overnight trading in New York. 

Advantest Corp. decreased 0.5% to ¥8,670, Tokyo Electron declined 0.3% to ¥23,850, and Screen Holdings edged up 0.2% to ¥9,239. 

Seven & I Holdings Co. Ltd. declined 0.6% to ¥2,499, Isetan Mitsukoshi fell 1.2% to ¥2,338, and Fast Retailing Co. Ltd. dropped 1.3% to ¥52,720. 

Marubeni Corp. declined 0.2% to ¥2,239.50, Itochu Corp. edged up 0.1% to ¥7,657, and Mitsui & Co. eased 0.8% to ¥3,186. 

China Indexes Stage Mild Rebound Amid Stimulus Details Hopes 

Stock market indexes in China and Hong Kong advanced after China's state asset supervisory authority issued new guidelines. 

The Hang Seng index gained 0.6%, and the mainland-focused CSI 300 index increased 0.5% as investors held out for more details on fiscal stimulus measures. 

The State-Owned Asset Supervision and Administration Commission issued broad guidelines encouraging state-owned companies to unlock the market value of listed units. 

The vague and general guidelines encourage companies to buy back stocks, provide better disclosures, and consider mergers and acquisitions. 

Beijing policymakers are looking for ways to improve investor confidence as the finance ministry prepares to launch long-term bonds as early as January. 

China Securities Depository and Clearing, the provider of electronic depository and clearing services for Shanghai and Shenzhen stock exchanges, announced its plans to lower fees charged for dividend payout to 0.05% from 0.1%. 

CSDC also said it will cap the dividend payout fees to 1.5 million yuan, or about $206,000, effective January 1. 

Foreign portfolio investors in China and Hong Kong are reluctant to increase their holdings after Chinese policymakers failed to follow through with concrete details for the previously announced fiscal stimulus. 

Moreover, China's annual economic growth is expected to slow to just under 3% by 2026, as the world's second-largest economy struggles with elevated government debt, falling foreign direct investment, and persistent weakness in the residential real estate market. 

Moreover, Chinese companies are expanding their operations overseas to avoid a growing backlash with the European Union and the U.S. and invest in operations in Hungary, Mexico, Vietnam, Thailand, and Malaysia. 

China Stock Movers 

The Hang Seng index increased 0.6% to 19,815.30, and the mainland-focused CSI 300 index advanced 0.5% to 3,942.24. 

State-owned Chinese companies traded higher after the release of new guidelines from the SASAC. 

China Unicom gained 0.7% to HK $7.18, PetroChina advanced 1.4% to HK $5.85, CNOOC inched higher 1.5% to HK $18.38, and China Life Insurance increased 1.6% to HK $14.76. 

Li Auto advanced 3.5% to HK $88.55, BYD jumped 1.4% to HK $269.40, Geely Automobile Holdings gained 3.1% to HK $15.52, and Xiaomi Corp. advanced 2.2% to HK $30.60.

Meituan gained 0.9% to HK $160.10, Tencent Holdings edged higher 0.6% to HK $404.60, and Alibaba Group Holding Ltd. inched up 0.4% to HK $83.70. 

U.S. and World Markets Trade Sideways Ahead of Rate Decisions

Alexander Garcia
18 Dec, 2024
Miami

Stock market indexes on Wall Street stayed mildly positive in trading ahead of the Fed's rate decisions later today. 

The S&P 500 index advanced 0.3%, the Nasdaq Composite gained 0.2%, and investors are anticipating that the Federal Reserve will cut the fed funds rates by 25 basis points. 

The Fed's Summary of Projections will be in focus as investors are looking forward to policymakers' estimates on economic growth, inflation, and the labor market. 

The Federal Reserve's decision is scheduled to be announced at 2:00 p.m. ET. 

The central bank is widely expected to temper expectations of future rate cuts amid resurgent inflation and policy uncertainty surrounding the incoming presidential administration. 

Investors are worried that the sharp escalation in trade tariffs proposed by the President-elect Donald Trump could stoke inflationary pressures, forcing the Fed to keep higher interest rates for longer. 

Despite eleven rate hikes over 2022 and 2023, inflation has stayed well above the Fed's target rate of 2%, and a rate cut by the Fed is likely to fuel inflationary forces in the months ahead. 

Moreover, policymakers appear to have run out of tools to lower inflation further, as most of the decline in inflation over the last eighteen months has been driven by the weakening in energy prices. 

U.S. Housing Starts Dropped but Completions Advanced In November

Housing starts in November unexpectedly declined and dropped to the lowest level in four months, according to the U.S. Census Bureau. 

Privately owned housing starts were at a seasonally adjusted annual rate of 1.289 million, 1.8% below the revised level of 1.312 million, and 14.6% below the rate of 1.51 million in the month a year ago. 

Building permits, authorized housing but not started yet, were at a seasonally adjusted rate of 1.505 million in November, an increase of 6.1% from the previous month but 0.2% below the rate in the month a year ago. 

However, housing completions were at a seasonally adjusted rate of 1.6 million in November, a decline of 1.9% from the previous month and an increase of 9.2% from a year ago. 

U.S. Indexes and Treasury Yields

The S&P 500 index increased 0.2% to 6,063.18, the Nasdaq Composite rose 0.2% to 20,156.34, and the Russell 2000 index rose by 0.2% to 2,340.04. 

The yield on 2-year Treasury notes edged lower to 4.26%, 10-year Treasury notes inched down to 4.42%, and 30-year Treasury bonds increased to 4.61%.

WTI crude oil increased $0.93 to $70.01 a barrel, and natural gas prices edged up 12 cents to $3.43 a thermal unit.

Gold decreased by $11.25 to $2,636.43 an ounce, and silver fell by $0.35 to $30.15. 

The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher by 0.01 to 106.96.

U.S. Stock Movers 

General Mills declined 5.7% to $62.0 despite the food product maker reporting better-than-expected sales in its quarter. 

Merck & Co. increased 1.1% to $101.21, and the pharmaceutical company signed an exclusive global license agreement with the China-based Hansho Pharmaceuticals.

Merck plans to develop and commercialize a Chinese company's experimental obesity drug with an upfront payment of $112 million and additional milestone payments of up to $1.9 billion.

Birkenstock Holding PLC soared 5.6% to $58.89 after the designer sandals maker reported better-than-expected fiscal fourth quarter results, driven by higher full-price sales in the U.S. and Asia. 

Revenue in the fiscal fourth quarter ending in September increased 21% to €1.8 billion from €1.49 billion, net income soared 155% to €191.6 million from €75 million, and diluted earnings per share advanced 161% to €1.02 from 41 cents a year ago. 

The company registered a double-digit increase in sales across all regions, with sales in the Americas advancing 19%, in Europe gaining 21%, and Asia Pacific, the Middle East, and Africa soaring 42%. 

Jabil Inc. surged 9.7% to $146.90 after the electronics manufacturing company reported better-than-expected fiscal first quarter earnings and the company lifted its full-year outlook. 

UK's Inflation Accelerated Ahead of BoE Rate Decisions, Pound Holds Firm Euro Retains Downward Bias 

European markets hugged the flatline, the euro retained its downward bias, and the pound held firm ahead of rate decisions from the Bank of England. 

Benchmark indexes in Paris, Frankfurt, and London edged slightly higher in quiet trading, and investors reviewed the latest inflation update in the U.K. 

The UK's consumer price inflation accelerated to 2.6% in November from 2.3% in October, the Office for National Statistics reported Wednesday. 

Core inflation, which excludes volatile food, alcohol, tobacco, and energy prices, advanced to 3.5% in November from 3.3% in the previous month.

The latest inflation report supports the case for the Bank of England to hold rates steady at its final meeting of the year on Thursday. 

The Federal Reserve is scheduled to announce its rate decisions and economic outlook later today, and investors are anticipating a cut of 25 basis points. 

In addition, investors are estimating slower rate cuts in 2025, totaling one percentage point amid stubborn inflation and policy uncertainties of the Trump administration. 

Europe Indexes and Yields

The DAX index increased by 0.01% to 20,250.56; the CAC-40 index rose by 0.3% to 7,383.88; and the FTSE 100 index inched higher by 0.2% to 8,211.95.

The yield on 10-year German bonds edged higher to 2.24%, French bonds inched up to 3.04%, the UK gilts increased to 4.55%, and Italian bonds increased to 3.41%.

The euro edged higher to $1.05; the British pound inched up to $1.27; and the U.S. dollar advanced to 89.35 Swiss cents.

Brent crude increased $0.73 to $73.91 a barrel, and the Dutch TTF natural gas fell by €0.90 to €41.13 per MWh. 

Europe Stock Movers

Renault SA advanced 5.8% to €47.09 after reports in Japan confirmed that Honda and Nissan have initiated merger talks. 

The French automaker, Renault, owns 23% of Nissan, and Mitsubishi may join the merger. 

Japanese automakers are struggling to gain market share amid rising competition from Chinese electric vehicle makers in Asia and South America. 

Kingfisher plc advanced 0.8% to 254.80 pence, and the British home improvement company agreed to sell Brico Depot Romania to Altex Romania for €70 million. 

ASSA ABLOY advanced 1.4% to SEK 344.20, and the access solution provider said it acquired the U.S.-based Norshield Security Products. 

Kontron AG jumped 9% to €19.57 after the German technology company said it has received an order of 165 million from a European defense company. 

Hardide PLC soared 29.6% to 6.14 pence after the tungsten carbide coating company said it secured a ten-year contract for coating aerospace cargo door components. 

Character Group PLC jumped 3.8% to 274 pence after the toy and games company reported fiscal 2024 results that met investor expectations. 

Revenue in the fiscal year ending in August increased to £123.4 million from £122.6 million, pre-tax profit advanced to £5.7 million from £4.7 million, and diluted earnings per share rose to 29.72 pence from 20.0 pence a year earlier. 

The company declared a dividend per share of 19 pence, matching the level in the previous year. 

Yen In Focus Ahead of Rate Decisions, Japan's Trade Deficit Shrinks In November 

Market sentiment in Tokyo was negative amid domestic monetary policy uncertainty and rising trade tensions with the U.S. 

The Nikkei 225 stock average declined 0.5%, and the Topix index fell 0.1% ahead of the Bank of Japan's rate decisions on Thursday. 

The Bank of Japan is likely to postpone its rate hike in 2025 as policymakers await more signals on wage growth at small- and mid-sized firms. 

SMEs have been reluctant to match 5.1% wage hikes at large corporations in 2024, amid weak profit outlook and persistent challenges in the domestic economy. 

Small and mid-sized enterprises spend about 70% of their profit on wages, significantly higher than 40% at large and international corporations, according to a September quarter corporate survey released by the finance ministry in early December. 

The yen held firm at 143.05 against the U.S. dollar ahead of the U.S. Federal Reserve's rate decisions later today. 

The U.S. Fed is widely expected to lower its fed funds rate range by 25 basis points, and the central bank is likely to announce fewer possible rate cuts in 2025 amid a resurgent inflation. 

The BoJ's possible rate hike and additional interest rate cuts by the Federal Reserve in 2025 are expected to narrow the rate differential between the U.S. and Japan. 

Japan's Trade Deficit Unexpectedly Shrank In November

Japan's trade deficit unexpectedly shrank in November after exports rose and imports declined. 

Japan's exports in November rose 3.8% to 9.15 trillion yen, and imports eased 3.9% to 9.32 trillion yen, resulting in a trade deficit of 117.6 billion yen, according to data available from the ministry of finance. 

Exports expanded for the third consecutive month and advanced from a 3.1% increase in October and a decline of 1.7% in September. 

Exports to China rose 8.9%, to Taiwan advanced 19.8%, to India jumped 9.8%, and to South Korea advanced 5.0%. 

Shipments to the ASEAN region advanced 5.5%. 

However, exports to the U.S. fell 8%, to Germany declined 11.8%, and to the European Union dropped 12.5%. 

Japan recorded a trade deficit in nine of the eleven months in 2024, as the price of imported energy products stays elevated and growth in exports remains anemic. 

Japan Stock Movers 

The Nikkei 225 Stock Average decreased 0.5% to 39,179.01, and the broader Topix index declined 0.1% to 2,725.44. 

Tech stocks in Tokyo headed lower for the second day in a row, tracking losses in overnight trading in New York. 

Advantest Corp. decreased 0.5% to ¥8,670, Tokyo Electron declined 0.3% to ¥23,850, and Screen Holdings edged up 0.2% to ¥9,239. 

Seven & I Holdings Co. Ltd. declined 0.6% to ¥2,499, Isetan Mitsukoshi fell 1.2% to ¥2,338, and Fast Retailing Co. Ltd. dropped 1.3% to ¥52,720. 

Marubeni Corp. declined 0.2% to ¥2,239.50, Itochu Corp. edged up 0.1% to ¥7,657, and Mitsui & Co. eased 0.8% to ¥3,186. 

China Indexes Stage Mild Rebound Amid Stimulus Details Hopes 

Stock market indexes in China and Hong Kong advanced after China's state asset supervisory authority issued new guidelines. 

The Hang Seng index gained 0.6%, and the mainland-focused CSI 300 index increased 0.5% as investors held out for more details on fiscal stimulus measures. 

The State-Owned Asset Supervision and Administration Commission issued broad guidelines encouraging state-owned companies to unlock the market value of listed units. 

The vague and general guidelines encourage companies to buy back stocks, provide better disclosures, and consider mergers and acquisitions. 

Beijing policymakers are looking for ways to improve investor confidence as the finance ministry prepares to launch long-term bonds as early as January. 

China Securities Depository and Clearing, the provider of electronic depository and clearing services for Shanghai and Shenzhen stock exchanges, announced its plans to lower fees charged for dividend payout to 0.05% from 0.1%. 

CSDC also said it will cap the dividend payout fees to 1.5 million yuan, or about $206,000, effective January 1. 

Foreign portfolio investors in China and Hong Kong are reluctant to increase their holdings after Chinese policymakers failed to follow through with concrete details for the previously announced fiscal stimulus. 

Moreover, China's annual economic growth is expected to slow to just under 3% by 2026, as the world's second-largest economy struggles with elevated government debt, falling foreign direct investment, and persistent weakness in the residential real estate market. 

Moreover, Chinese companies are expanding their operations overseas to avoid a growing backlash with the European Union and the U.S. and invest in operations in Hungary, Mexico, Vietnam, Thailand, and Malaysia. 

China Stock Movers 

The Hang Seng index increased 0.6% to 19,815.30, and the mainland-focused CSI 300 index advanced 0.5% to 3,942.24. 

State-owned Chinese companies traded higher after the release of new guidelines from the SASAC. 

China Unicom gained 0.7% to HK $7.18, PetroChina advanced 1.4% to HK $5.85, CNOOC inched higher 1.5% to HK $18.38, and China Life Insurance increased 1.6% to HK $14.76. 

Li Auto advanced 3.5% to HK $88.55, BYD jumped 1.4% to HK $269.40, Geely Automobile Holdings gained 3.1% to HK $15.52, and Xiaomi Corp. advanced 2.2% to HK $30.60.

Meituan gained 0.9% to HK $160.10, Tencent Holdings edged higher 0.6% to HK $404.60, and Alibaba Group Holding Ltd. inched up 0.4% to HK $83.70. 

U.S. Movers: Birkenstock, General Mills, Jabil, Merck

Scott Peters
18 Dec, 2024
New York City

General Mills declined 5.7% to $62.0 despite the food product maker reporting better-than-expected sales in its quarter. 

Merck & Co. increased 1.1% to $101.21, and the pharmaceutical company signed an exclusive global license agreement with the China-based Hansho Pharmaceuticals.

Merck plans to develop and commercialize a Chinese company's experimental obesity drug with an upfront payment of $112 million and additional milestone payments of up to $1.9 billion.

Birkenstock Holding PLC soared 5.6% to $58.89 after the designer sandals maker reported better-than-expected fiscal fourth quarter results, driven by higher full-price sales in the U.S. and Asia. 

Revenue in the fiscal fourth quarter ending in September increased 21% to €1.8 billion from €1.49 billion, net income soared 155% to €191.6 million from €75 million, and diluted earnings per share advanced 161% to €1.02 from 41 cents a year ago. 

The company registered a double-digit increase in sales across all regions, with sales in the Americas advancing 19%, in Europe gaining 21%, and Asia Pacific, the Middle East, and Africa soaring 42%. 

Jabil Inc. surged 9.7% to $146.90 after the electronics manufacturing company reported better-than-expected fiscal first quarter earnings and the company lifted its full-year outlook. 

U.S. Movers: Birkenstock, General Mills, Jabil, Merck

Scott Peters
18 Dec, 2024
New York City

General Mills declined 5.7% to $62.0 despite the food product maker reporting better-than-expected sales in its quarter. 

Merck & Co. increased 1.1% to $101.21, and the pharmaceutical company signed an exclusive global license agreement with the China-based Hansho Pharmaceuticals.

Merck plans to develop and commercialize a Chinese company's experimental obesity drug with an upfront payment of $112 million and additional milestone payments of up to $1.9 billion.

Birkenstock Holding PLC soared 5.6% to $58.89 after the designer sandals maker reported better-than-expected fiscal fourth quarter results, driven by higher full-price sales in the U.S. and Asia. 

Revenue in the fiscal fourth quarter ending in September increased 21% to €1.8 billion from €1.49 billion, net income soared 155% to €191.6 million from €75 million, and diluted earnings per share advanced 161% to €1.02 from 41 cents a year ago. 

The company registered a double-digit increase in sales across all regions, with sales in the Americas advancing 19%, in Europe gaining 21%, and Asia Pacific, the Middle East, and Africa soaring 42%. 

Jabil Inc. surged 9.7% to $146.90 after the electronics manufacturing company reported better-than-expected fiscal first quarter earnings and the company lifted its full-year outlook. 

Highly Anticipated Fed's Rate Cut May Boomerang In 2025

Barry Adams
18 Dec, 2024
New York City

Wall Street retained a positive bias in early trading ahead of the Fed's rate decisions later today. 

The S&P 500 index advanced 0.3%, the Nasdaq Composite gained 0.2%, and investors are anticipating that the Federal Reserve will cut the fed funds rates by 25 basis points. 

The Fed's Summary of Projections will be in focus as investors are looking forward to policymakers' estimates on economic growth, inflation, and the labor market. 

The Federal Reserve's decision is scheduled to be announced at 2:00 p.m. ET. 

The central bank is widely expected to temper expectations of future rate cuts amid resurgent inflation and policy uncertainty surrounding the incoming presidential administration. 

Investors are worried that the sharp escalation in trade tariffs proposed by the President-elect Donald Trump could stoke inflationary pressures, forcing the Fed to keep higher interest rates for longer. 

Despite eleven rate hikes over 2022 and 2023, inflation has stayed well above the Fed's target rate of 2%, and a rate cut by the Fed is likely to fuel inflationary forces in the months ahead. 

Moreover, policymakers appear to have run out of tools to lower inflation further, as most of the decline in inflation over the last eighteen months has been driven by a sharp fall in energy prices. 

U.S. Indexes and Treasury Yields

The S&P 500 index increased 0.3% to 6,050.61, the Nasdaq Composite rose 0.1% to 20,052.07, and the Russell 2000 index declined by 0.2% to 2,316.59. 

The yield on 2-year Treasury notes edged lower to 4.26%, 10-year Treasury notes inched down to 4.42%, and 30-year Treasury bonds increased to 4.61%.

WTI crude oil increased $0.64 to $70.71 a barrel, and natural gas prices edged up 5 cents to $3.35 a thermal unit.

Gold decreased by $2.85 to $2,644.48 an ounce, and silver fell by $0.11 to $30.39. 

The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher by 0.01 to 106.96.

U.S. Stock Movers 

General Mills declined 5.7% to $62.0 despite the food product maker reporting better-than-expected sales in its quarter. 

Merck & Co. increased 1.1% to $101.21, and the pharmaceutical company signed an exclusive global license agreement with the China-based Hansho Pharmaceuticals.

Merck plans to develop and commercialize a Chinese company's experimental obesity drug with an upfront payment of $112 million and additional milestone payments of up to $1.9 billion.

Birkenstock Holding PLC soared 5.6% to $58.89 after the designer sandals maker reported better-than-expected fiscal fourth quarter results, driven by higher full-price sales in the U.S. and Asia. 

Revenue in the fiscal fourth quarter ending in September increased 21% to €1.8 billion from €1.49 billion, net income soared 155% to €191.6 million from €75 million, and diluted earnings per share advanced 161% to €1.02 from 41 cents a year ago. 

The company registered a double-digit increase in sales across all regions, with sales in the Americas advancing 19%, in Europe gaining 21%, and Asia Pacific, the Middle East, and Africa soaring 42%. 

Jabil Inc. surged 9.7% to $146.90 after the electronics manufacturing company reported better-than-expected fiscal first quarter earnings and the company lifted its full-year outlook. 

Highly Anticipated Fed's Rate Cut May Boomerang In 2025

Barry Adams
18 Dec, 2024
New York City

Wall Street retained a positive bias in early trading ahead of the Fed's rate decisions later today. 

The S&P 500 index advanced 0.3%, the Nasdaq Composite gained 0.2%, and investors are anticipating that the Federal Reserve will cut the fed funds rates by 25 basis points. 

The Fed's Summary of Projections will be in focus as investors are looking forward to policymakers' estimates on economic growth, inflation, and the labor market. 

The Federal Reserve's decision is scheduled to be announced at 2:00 p.m. ET. 

The central bank is widely expected to temper expectations of future rate cuts amid resurgent inflation and policy uncertainty surrounding the incoming presidential administration. 

Investors are worried that the sharp escalation in trade tariffs proposed by the President-elect Donald Trump could stoke inflationary pressures, forcing the Fed to keep higher interest rates for longer. 

Despite eleven rate hikes over 2022 and 2023, inflation has stayed well above the Fed's target rate of 2%, and a rate cut by the Fed is likely to fuel inflationary forces in the months ahead. 

Moreover, policymakers appear to have run out of tools to lower inflation further, as most of the decline in inflation over the last eighteen months has been driven by a sharp fall in energy prices. 

U.S. Indexes and Treasury Yields

The S&P 500 index increased 0.3% to 6,050.61, the Nasdaq Composite rose 0.1% to 20,052.07, and the Russell 2000 index declined by 0.2% to 2,316.59. 

The yield on 2-year Treasury notes edged lower to 4.26%, 10-year Treasury notes inched down to 4.42%, and 30-year Treasury bonds increased to 4.61%.

WTI crude oil increased $0.64 to $70.71 a barrel, and natural gas prices edged up 5 cents to $3.35 a thermal unit.

Gold decreased by $2.85 to $2,644.48 an ounce, and silver fell by $0.11 to $30.39. 

The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher by 0.01 to 106.96.

U.S. Stock Movers 

General Mills declined 5.7% to $62.0 despite the food product maker reporting better-than-expected sales in its quarter. 

Merck & Co. increased 1.1% to $101.21, and the pharmaceutical company signed an exclusive global license agreement with the China-based Hansho Pharmaceuticals.

Merck plans to develop and commercialize a Chinese company's experimental obesity drug with an upfront payment of $112 million and additional milestone payments of up to $1.9 billion.

Birkenstock Holding PLC soared 5.6% to $58.89 after the designer sandals maker reported better-than-expected fiscal fourth quarter results, driven by higher full-price sales in the U.S. and Asia. 

Revenue in the fiscal fourth quarter ending in September increased 21% to €1.8 billion from €1.49 billion, net income soared 155% to €191.6 million from €75 million, and diluted earnings per share advanced 161% to €1.02 from 41 cents a year ago. 

The company registered a double-digit increase in sales across all regions, with sales in the Americas advancing 19%, in Europe gaining 21%, and Asia Pacific, the Middle East, and Africa soaring 42%. 

Jabil Inc. surged 9.7% to $146.90 after the electronics manufacturing company reported better-than-expected fiscal first quarter earnings and the company lifted its full-year outlook. 

Europe Movers: ASSSA ABLOY, Kingfisher, Character Group, Hardide, Konron, Renault

Inga Muller
18 Dec, 2024
Frankfurt

The overall and core consumer price inflation accelerated in the U.K., supporting the case for the central bank to hold rates steady. 

The euro retained its downward bias amid ongoing political turmoil in France and Germany.

The DAX index increased by 0.4% to 20,318.97; the CAC-40 index rose by 0.4% to 7,391.90; and the FTSE 100 index inched higher by 0.2% to 8,211.95.

The yield on 10-year German bonds edged higher to 2.24%, French bonds inched up to 3.04%, the UK gilts increased to 4.55%, and Italian bonds increased to 3.41%.

The euro edged higher to $1.05; the British pound inched up to $1.27; and the U.S. dollar advanced to 89.35 Swiss cents.

Renault SA advanced 5.8% to €47.09 after reports in Japan confirmed that Honda and Nissan have initiated merger talks. 

The French automaker, Renault, owns 23% of Nissan, and Mitsubishi may join the merger. 

Japanese automakers are struggling to gain market share amid rising competition from Chinese electric vehicle makers in Asia and South America. 

Kingfisher plc advanced 0.8% to 254.80 pence, and the British home improvement company agreed to sell Brico Depot Romania to Altex Romania for €70 million. 

ASSA ABLOY advanced 1.4% to SEK 344.20, and the access solution provider said it acquired the U.S.-based Norshield Security Products. 

Kontron AG jumped 9% to €19.57 after the German technology company said it has received an order of 165 million from a European defense company. 

Hardide PLC soared 29.6% to 6.14 pence after the tungsten carbide coating company said it secured a ten-year contract for coating aerospace cargo door components. 

Character Group PLC jumped 3.8% to 274 pence after the toy and games company reported fiscal 2024 results that met investor expectations. 

Revenue in the fiscal year ending in August increased to £123.4 million from £122.6 million, pre-tax profit advanced to £5.7 million from £4.7 million, and diluted earnings per share rose to 29.72 pence from 20.0 pence a year earlier. 

The company declared a dividend per share of 19 pence, matching the level in the previous year.