Market Update
U.S. Movers: Morgan Stanley, United Airlines
Scott Peters
16 Oct, 2024
New York City
United Airlines rose 7.5% to $68.90 after the company announced a stock repurchase plan as part of its quarterly earnings update.
The airline said it plans to buyback up to $1.5 billion of its stock and warrants originally issued to the U.S. Treasury, the first such purchase since before the COVID-19 pandemic.
In the quarter, the company repurchased in the open market just over 2 million shares of its common stock in connection with the exercise of roughly 6.4 million warrants issued to the U.S. Treasury under the CARES Act and Payroll Support Program.
The company repurchased shares at an average price of $39.99.
The repurchase of these shares eliminated the dilution associated with the warrants exercised and are separate from the new stock repurchase plan of $1.5 billion.
Revenue in the third quarter increased 2.5% to $14.8 billion from $14.5 billion, net income declined 15.1% to $965 million, and diluted earnings per share dropped to $2.90 from $3.42 a year ago.
Morgan Stanley increased 7.5% to $120.50 after the financial services company reported better-than-expected revenue and earnings in the third quarter.
Revenue increased to $15.4 billion from $13.3 billion, net income advanced to $3.2 billion from $2.4 billion, and diluted earnings per share rose to $1.88 from $1.38 a year ago.
Revenue in the institutional securities division increased to $6.8 billion from $5.7 billion, wealth management jumped to $7.2 billion from $6.4 billion, and investment management advanced to $1.5 billion from $1.3 billion a year ago.
The wealth management unit attracted $64 billion in new assets, increasing total client assets to $6 trillion.
Investment management unit received a net long-term asset flow of $7 billion, and assets at the end of the quarter increased to $1.6 trillion.
U.S. Major Indexes Hover Near Record Highs
Barry Adams
16 Oct, 2024
New York City
Stocks on Wall Street traded sideways as benchmark indexes attempted to surpass previous record highs set earlier in the week.
The S&P 500 index edged up 0.1%, but the tech-heavy Nasdaq Composite index decreased 0.2%.
Investors have been bidding up stocks after payrolls expanded at a faster-than-expected pace in September and inflation continued to trend lower toward the Fed's target rate of 2%.
Moreover, investors returned to add positions to artificial intelligence-linked stocks amid a growing appetite for risky stocks.
Market sentiment further improved after Goldman Sachs, Bank of America, and Citigroup reported earnings exceeding market expectations.
Earnings beat from Morgan Stanley and United Airlines also supported broader market levels in Wednesday's trading.
Crude oil prices hovered near two-week lows as rising global supply outweighed elevated Iran-Israel tensions, denting stocks in the energy sector for the third day in a row.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.1% to 5,820.49, the Nasdaq Composite fell 0.2% to 18,268.55, and the Russell 2000 index advanced 0.8% to 2,267.45.
The yield on 2-year Treasury notes edged lower to 3.93%, 10-year Treasury notes inched down to 4.01%, and 30-year Treasury bonds inched higher to 4.29%.
WTI crude oil increased $0.16 to $70.74 a barrel, and natural gas prices edged down 7 cents to $2.42 a thermal unit.
Gold fell by $22.83 to $2,683.33 an ounce, and silver increased by $0.56 to $32.02.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 103.27.
U.S. Stock Movers
United Airlines rose 7.5% to $68.90 after the company announced a stock repurchase plan as part of its quarterly earnings update.
The airline said it plans to buyback up to $1.5 billion of its stock and warrants originally issued to the U.S. Treasury, the first such purchase since before the COVID-19 pandemic.
In the quarter, the company repurchased in the open market just over 2 million shares of its common stock in connection with the exercise of roughly 6.4 million warrants issued to the U.S. Treasury under the CARES Act and Payroll Support Program.
The company repurchased shares at an average price of $39.99.
The repurchase of these shares eliminated the dilution associated with the warrants exercised and are separate from the new stock repurchase plan of $1.5 billion.
Revenue in the third quarter increased 2.5% to $14.8 billion from $14.5 billion, net income declined 15.1% to $965 million, and diluted earnings per share dropped to $2.90 from $3.42 a year ago.
Morgan Stanley increased 7.5% to $120.50 after the financial services company reported better-than-expected revenue and earnings in the third quarter.
Revenue increased to $15.4 billion from $13.3 billion, net income advanced to $3.2 billion from $2.4 billion, and diluted earnings per share rose to $1.88 from $1.38 a year ago.
Revenue in the institutional securities division increased to $6.8 billion from $5.7 billion, wealth management jumped to $7.2 billion from $6.4 billion, and investment management advanced to $1.5 billion from $1.3 billion a year ago.
The wealth management unit attracted $64 billion in new assets, increasing total client assets to $6 trillion.
Investment management unit received a net long-term asset flow of $7 billion, and assets at the end of the quarter increased to $1.6 trillion.
Europe Movers: ASML, Antofagasta, Hammerson, Just Eat, LVMH, Rexel, Stellantis
Inga Muller
16 Oct, 2024
Frankfurt
European markets traded down amid rate anxieties compounded by weak results from LVM and ASML Holdings.
The overall inflation in the UK edged lower in September, but the core rate of inflation eased at a slower pace.
The DAX index decreased by 0.3% to 19,434.40; the CAC-40 index fell by 0.6% to 7,477.82; and the FTSE 100 index rose by 0.6% to 8,298.30.
The yield on 10-year German bonds edged lower to 2.19%, French bonds inched lower to 2.93%, the UK gilts edged down to 4.09%, and Italian bonds decreased to 3.42%.
LVMH declined 3.7% to €601.20 after the fashion and leather goods company reported a drop in third quarter sales and warned of an "uncertain" outlook.
Overall sales declined 2% to €60.7 billion from €62.2 billion, driven by a 11% fall in wine & spirit sales to €4.2 billion, fashion & leather goods sales by 3% to €29.9 billion, and watches & jewelry sales by 5% to €7.5 billion.
However, perfumes and cosmetic sales increased 2% to €6.1 billion.
The luxury goods company blamed the sales weakness to challenges in China following "several years of exceptional post-Covid growth."
Other luxury goods makers declined following the LVMH announcement: Kering SA fell 2%, Hermes International declined 1.3%, L'Oreal dropped 2%, and Brunello Cucinelli S.p.A. eased 0.8%.
ASML Holding declined 2.5% to €651.0 after dropping as much as 15% in the previous session following the company's sales warning.
ASML revised its annual revenue estimate to fall between Є30 billion and Є35 billion, near the low end of its previous annual outlook.
The company said net sales in the September quarter were Є7.5 billion and new orders were Є2.6 billion.
Rexel SA dropped 3.9% to €25.28, and the French distributor of electric supplies cut its 2024 outlook, citing challenging market conditions in Europe.
Stellantis NV declined 1.3% to €11.87 after the Italy-based vehicle maker reported a 20% decline in shipment in the third quarter.
Just Eat Takeaway.com declined 2.9% to €12.0, and the food delivery company reported a decline in orders in the third quarter.
Hammerson plc rose 3.5% to 320.20 pence after the property developer launched a £140 million stock repurchase plan.
Antofagasta jumped 2.8% to 1,847.0 pence after the Chile-based mining company reported a 15% increase in copper production.
European Markets Faced Headwinds After LVMH Sales Dropped, UK Inflation Eased
Bridgette Randall
16 Oct, 2024
London
European markets traded down ahead of the rate decisions from the European Central Bank, and weak results from two leading companies compounded market anxieties.
Benchmark indexes in London, Paris, and Frankfurt traded down ahead of the interest rate decisions from the European Central Bank on Thursday.
The European Central Bank is widely expected to cut rates for the third time this year amid deteriorating economic conditions and a weakening inflation outlook.
Inflation in the eurozone peaked at 10.6% in October 2022 and has steadily declined to an annual 1.7% in September, below the central bank's targe rate of 2%.
This decline in overall inflation is primarily driven by the fall in energy prices, but core inflation, which excludes food and energy prices, remained at 2.7% and service inflation stayed at 4%.
Separately, the UK's overall inflation decreased to 1.7% in September, the lowest since April 2021, after staying at 2.2% in the previous two months, the Office for National Statistics reported Wednesday.
The core rate of inflation, which excludes food and energy prices, decreased to an annual rate of 3.2% in September from 3.6% in the previous month.
Core inflation dropped to the lowest level since September 2021.
Europe Indexes and Yields
The DAX index decreased by 0.3% to 19,434.40; the CAC-40 index fell by 0.6% to 7,477.82; and the FTSE 100 index rose by 0.6% to 8,298.30.
The yield on 10-year German bonds edged lower to 2.19%, French bonds inched lower to 2.93%, the UK gilts edged down to 4.09%, and Italian bonds decreased to 3.42%.
The euro edged lower to $1.08; the British pound inched higher to $1.29; and the U.S. dollar strengthened to 86.23 Swiss cents.
Brent crude decreased $0.39 to $73.85 a barrel, and the Dutch TTF natural gas fell by €0.25 to €39.80 per MWh.
Europe Stock Movers
LVMH declined 3.7% to €601.20 after the fashion and leather goods company reported a drop in third quarter sales and warned of an "uncertain" outlook.
Overall sales declined 2% to €60.7 billion from €62.2 billion, driven by a 11% fall in wine & spirit sales to €4.2 billion, fashion & leather goods sales by 3% to €29.9 billion, and watches & jewelry sales by 5% to €7.5 billion.
However, perfumes and cosmetic sales increased 2% to €6.1 billion.
The luxury goods company blamed the sales weakness to challenges in China following "several years of exceptional post-Covid growth."
Other luxury goods makers declined following the LVMH announcement: Kering SA fell 2%, Hermes International declined 1.3%, L'Oreal dropped 2%, and Brunello Cucinelli S.p.A. eased 0.8%.
ASML Holding declined 2.5% to €651.0 after dropping as much as 15% in the previous session following the company's sales warning.
Rexel SA dropped 3.9% to €25.28, and the French distributor of electric supplies cut its 2024 outlook, citing challenging market conditions in Europe.
Stellantis NV declined 1.3% to €11.87 after the Italy-based vehicle maker reported a 20% decline in shipment in the third quarter.
Just Eat Takeaway.com declined 2.9% to €12.0, and the food delivery company reported a decline in orders in the third quarter.
Hammerson plc rose 3.5% to 320.20 pence after the property developer launched a £140 million stock repurchase plan.
Antofagasta jumped 2.8% to 1,847.0 pence after the Chile-based mining company reported a 15% increase in copper production.
Japan's Nikkei 225 Drops 2%, Tokyo Metro IPO Raises $2.3 B
Akira Ito
16 Oct, 2024
Tokyo
Benchmark indexes in Tokyo dropped sharply, tracking losses in overnight trading in New York.
The Nikkei 225 stocks average plunged nearly 2%, and the broader Topix index fell more than 1% after tech and energy stocks dropped in New York.
The S&P 500 index declined 0.8% and the Nasdaq Composite fell 1.1% after the Dutch equipment maker ASML Holding said demand recovery is more gradual than previously estimated.
Following the ASML's revised outlook, AMD, Nvidia, Broadcom, and Micron Technology declined between 4% and 7%.
ASML revised its annual revenue estimate to range between Є30 billion and Є35 billion, near the low end of its previous annual outlook.
The company said net sales in the September quarter were Є7.5 billion and new orders were Є2.6 billion, sharply lower than previously estimated.
Crude oil plunged 5% after supply-demand imbalances overshadowed Iran-Israel tensions.
Energy stocks continued to fall after crude oil prices extended losses for the third consecutive day amid worry of lack of demand growth from China and rising supply in the Middle East.
On the economic front, Japan's core machinery orders, which exclude large and volatile orders for ships and power plants, decreased 1.9% to 858.9 billion yen.
On an annual basis, private sector machinery orders fell 3.4% in August from a year ago, according to the data released by the Cabinet Office.
The orders declined for the fifth month in 2024 as orders for manufacturing fell by 2.5% to 388.4 billion yen.
The yen drifted lower to 149.26 against the U.S. dollar amid rising expectations of the Bank of Japan holding its interest rate steady at the next policy meeting.
Tokyo Metro IPO Priced at Upper End of Filing Range
Tokyo Metro priced its shares at 1,200 yen, and the company plans to list its shares on October 23.
The widely anticipated public offering was oversubscribed more than 10 times, according to a report by Reuters.
The local rail service company is planning to sell 290.5 million shares.
The company is estimating annual revenue in the current fiscal year ending in March 2025 of 407.5 billion and net income of 52.3 billion yen.
The company is also planning to pay a cash dividend of 40 yen per share from earnings per share of 90.02 yen.
The Tokyo Metropolitan Government controls 46.6%, and Japan's central government holds the remaining 53.4% stake in the local railroad company.
Japan Stock Movers
The Nikkei 225 Stock Average decreased 1.7% to 39,225.70, and the broader Topix index dropped 1% to 2,695.51.
Tech stocks plunged following the sharp decline in leading chipmakers in overnight trading in New York.
Tokyo Electron dropped 9.2% to ¥24,310.0, Advantest fell 7% to ¥7,865.0, Disco Corp. plunged 5.7% to ¥36,160.0, and Lasertec declined 13.4% to ¥22,155.0.
East Japan Railway Company increased 0.1% to ¥2,974.0, West Japan Railway Company decreased 0.8% to ¥2,774.0, and Kyushu Railway fell 2.2% to ¥4,067.0.
Seven & I Holdings decreased 2.7% to ¥2,224.50, Isetan Mitsukoshi fell 6.6% to ¥2,353.50, and Fast Retailing added 0.1% to ¥53,580.0.
China Prepares to Raise Debt Limit Ahead of Possible Fiscal Measures
Li Chen
16 Oct, 2024
Hong Kong
Stocks in Hong Kong and mainland China diverged as investors debated future policy measures following the recent economic reports.
The Hang Seng index rebounded 0.9% after falling 4.4% in the previous two sessions, and the CSI index decreased 0.3%.
Market sentiment remained weak after policymakers failed to follow through again with specific measures, following the top politicians promising "whatever it takes" measures to revive consumer spending.
In a familiar pattern witnessed over the last four years, Chinese politicians make big announcements that are not always followed by specific measures to support the property market and revive consumer sentiment.
Foreign investors are increasingly skeptical about the Chinese leadership's commitment to supporting the annual economic growth target of 5%.
Moreover, investors are dialing down annual growth expectations for the current year to below 5% and to close to 4% in 2025 as the government struggles to address structural issues amid high and rising government debt.
Despite the bold and strong rhetoric from China's politburo, the world's second-largest economy is steadily drifting to a slower annual economic growth rate nearing 2% over the next three years.
Persistent decline in property market valuations, elevated youth unemployment, and steady outflow of foreign investors are overshadowing China's success in exporting renewable energy products, electric vehicles, and consumer electronics.
Investors looked forward to comments from the housing secretary on Thursday and held out for measures to arrest the four-year property market malaise.
China's policymakers are also considering to raise debt by as much as 4 trillion yen that will facilitate exchanging local government debt and support the purchase of residential properties.
China's central government and local government debt is estimated to surpass at least 120% of gross domestic product, a sharp rise over the last five years.
China Stock Movers
The Hang Seng index increased 0.9% to 20,501.77, and the mainland-focused CSI 300 index fell 0.3% to 3,846.57.
Alibaba Group increased 0.5% to HK $100.40, Tencent Holding added 2% to HK $425.40, and JD.com fell 2.2% to HK $156.90.
Residential property developers rebounded ahead of comments from the housing secretary on Thursday.
Longfor Group rebounded 9.2% to HK $13.98, China Resources Land gained 5% to HK $27.40, and China Vanke increased 14.6% to HK $7.66.
BYD declined 0.8% to HK $273.40, Li Auto added 0.3% to HK $98.85, and Xpeng fell 1.4% to HK $43.85.
Qiniu Limited plunged as much as 50% in its Hong Kong debut after the cloud services provider priced its initial public offering at HK $1.38 per share.
Zhonghang Shangda Superalloys soared more than 10-fold in Shenzhen trading after the company priced its initial public offering at 6.88 yuan per share.
India Movers: Bank of Maharashtra, Central Bank of India, Cochin Shipyard, Interglobe Aviation, KEI Industries, Newgen Software
Arun Goswami
16 Oct, 2024
Mumbai
Benchmark indexes in Mumbai lacked direction as investors reviewed the fresh batch of earnings.
The rupee dropped to a new record low, despite the crude oil prices extending a three-day loss to over 10%.
The Sensex index decreased by 0.1% to 81,755.55, and the Nifty index fell by 0.3% to 25,042.10.
On the Mumbai stock exchange, 127 stocks traded at their 52-week highs, and 9 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds inched higher to 6.77%, and the Indian rupee eased to 84.07 against the U.S. dollar.
Interglobe Aviation increased 1.4% to ₹4,745.0, and the company received approval from the securities regulator to set up a venture capital fund to invest in startups.
Newgen Software Technologies increased 1.2% to ₹1,258.90 after the company reported higher sales and earnings in the September quarter.
Revenue increased 23.2% to ₹361.2 crore, and net income advanced 47% to ₹70.3 crore from ₹47.8 crore a year ago.
"All our key markets performed well during the quarter, with APAC growth strong for two consecutive quarters," CEO Virender Jeet said in a statement released by the company.
Central Bank of India Ltd. decreased 0.2% to ₹56.95, and the Competition Commission has approved the bank's acquisition of stakes in two insurance companies as a part of its insolvency resolution plan.
CBI will acquire stakes in Future Generali Insurance and Future Generali Life Insurance in exchange for outstanding debts.
Bank of Maharashtra increased 1.4% to ₹54.98 after the regional bank reported quarterly results.
Net interest income in the fiscal second quarter ending in September increased 15.4% to 2,817 crore, and net interest margin improved to 3.98%.
Net income in the quarter rose to 44.3% to 1,327 crore, and operating profit advanced 14.7% to 2,202 crore.
The Pune-headquartered bank said its gross nonperforming assets ratio declined to 1.84% from 1.85% in the previous quarter and 2.14% in the period a year ago.
The bank added its return on assets improved to 1.74%, return on equity improved to 26.01%, and its CAR or capital adequacy ratio stood at 17.26%, of which Tier I capital is 13.13%.
KEI Industries decreased 5% to ₹4,444.0 despite the wire and cable company reporting rising revenue and earnings in the September quarter.
Revenue in the fiscal second quarter increased 17% to ₹2,280 crore from ₹1,945 crore, and net income advanced 11% to ₹155 crore from ₹140 crore a year ago.
Cochin Shipyard decreased 2.5% to ₹1,629.90 after the central government plans to sell its 5% stake, or 65.77 lakh shares, with a floor price of ₹1,540 per share.
S&P 500 and European Indexes Turn Lower, ASML Warning Drives Chip Stocks Down
Alexander Garcia
15 Oct, 2024
Miami
Wall Street indexes struggled to advance, and tech stocks turned lower after Dutch chip equipment maker issued a cautious outlook.
The S&P 500 index declined 0.4% and the Nasdaq Composite fell 0.9% after ASML Holding said demand recovery is more gradual than previously estimated.
Following the ASML's revised outlook, AMD, Nvidia, Broadcom, and Micron Technology declined between 4% and 5%.
ASML revised its annual revenue estimate to fall between Є30 billion and Є35 billion, near the low end of its previous annual outlook.
The company said net sales in the September quarter were Є7.5 billion and new orders were Є2.6 billion.
Crude oil plunged 5% after supply-demand imbalances overshadowed Iran-Israel tensions.
Investors have been bidding up stocks over the last five weeks following a raft of positive economic reports and continued optimism about artificial intelligence.
Moreover, investors are hoping that the Federal Reserve will be able to cool inflation while avoiding the economy dipping into a recession.
However, market sentiment has been on edge amid rising tensions in the Middle East, ongoing war in Ukraine, a close presidential election, and interest rate path uncertainty.
U.S. Indexes and Treasury Yields
The S&P 500 index decreased 0.5% to 5,834.61, the Nasdaq Composite fell 0.8% to 18,341.41, and the Russell 2000 index advanced 0.9% to 2,268.52.
The yield on 2-year Treasury notes edged lower to 3.97%, 10-year Treasury notes inched down to 4.08%, and 30-year Treasury bonds inched higher to 4.38%.
WTI crude oil decreased $3.50 to $70.30 a barrel, and natural gas prices edged up 1 cent to $2.50 a thermal unit.
Gold fell by $14.18 to $2,663.18 an ounce, and silver decreased by $0.38 to $31.58.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 103.30.
U.S. Stock Movers
Goldman Sachs increased 2.6% to $536.55 after the investment banker reported better-than-expected quarterly results.
Revenue in the third quarter increased 7% to $12.7 billion from $11.8 billion, net income advanced 45% to $2.99 billion from $2.06 billion, and diluted earnings per share rose 54% to $8.40 from $5.47 a year ago.
Bank of America advanced 2.7% to $43.06 after the financial service provider reported better-than-expected earnings.
Revenue in the third quarter increased to $25.3 billion from $25.2 billion, net income eased to $6.9 billion from $7.8 billion, and diluted earnings per share fell to 81 cents from 90 cents a year ago.
Provision for credit losses was flat at $1.5 billion from the previous quarter and higher than $1.2 billion a year ago.
Citigroup decreased 1.5% to $65.01 after the global bank reported third quarter results that fell short of investor expectations.
Revenue increased 1% to $20.3 billion from $20.1 billion, net income fell 9% to $3.2 billion from $3.5 billion, and diluted earnings per share fell to $1.51 from $1.63 a year ago.
Coty dropped 5.9% to $8.63 after the beauty company reported weaker-than-estimated revenue growth in its latest quarter.
The company said comparable sales in the fiscal first quarter ending in September increased between 4% and 5%, lower than its previous estimate of 6%.
The beauty company said it will release its full results on November 6.
UnitedHealth Group declined 9.1% to $549.99 after the health insurer reported higher-than-expected medical costs.
Revenue in the third quarter increased to $100.8 billion from $92.4 billion, net income attributable to shareholders advanced to $6.1 billion from $5.8 billion, and diluted earnings per share rose to $7.15 from $6.56 a year ago.
Medical costs jumped to $66 billion from $59.6 billion, and total operating costs rose to $92.1 billion from $83.8 billion a year ago.
The company lowered its full-year net income per share outlook to between $15.50 and $15.75.
European Markets Closed Down
European markets struggled to hold gains after advancing the previous two sessions as investors reviewed the fresh batch of mixed economic data.
Benchmark indexes in Paris, London, and Frankfurt traded around the flatline, and crude oil prices plunged as much as 5% in London trading.
Industrial production in the Euro Area increased 1.8% from the previous month in August, according to a preliminary report from Eurostat.
On an annual basis, production edged up only 0.1%, driven by a 4.8% decrease in durable consumer goods and a 2.7% fall in intermediate goods.
France's Monthly CPI Falls the Most in Three Decades
France's consumer price inflation slowed slightly more than previously estimated in September, according to the statistical agency INSEE.
Monthly consumer price inflation fell 1.2% in September after increasing 0.5% in the previous month, according to France's statistical agency INSEE.
The monthly decline was the largest since the inflation series started in 1990, driven by a 13.5% decline in transportation prices and a 2.2% fall in the prices of services.
On an annual basis, consumer price inflation slowed to an increase of 1.1% in September from a rise of 1.8% in the previous month.
Core inflation, which excludes energy and food prices, also rose at a slower pace of 1.4% in September from a 1.7% increase in August.
Germany's Wholesale Price Deflation Deepens
Germany's wholesale prices fell at the fastest pace in five months in September, according to a monthly report released by Destatis.
The annual wholesale prices in September fell 1.6%, faster than the decline of 1.1% in August.
The main driver of the decline in wholesale prices was the fall of 14.6% in mineral oil products, 5.8% decline in steel and semi-finished products, and 5.2% decrease in data processing equipment.
Europe Indexes and Yields
The DAX index decreased by 0.1% to 19,486.19; the CAC-40 index fell by 1.1% to 7,521.97; and the FTSE 100 index declined by 0.5% to 8,249.28.
The yield on 10-year German bonds edged lower to 2.22%, French bonds inched lower to 2.97%, the UK gilts edged down to 4.19%, and Italian bonds decreased to 3.47%.
The euro edged lower to $1.09; the British pound inched higher to $1.30; and the U.S. dollar strengthened to 86.16 Swiss cents.
Brent crude decreased $3.34 to $74.11 a barrel, and the Dutch TTF natural gas fell by €0.43 to €40.12 per MWh.
Europe Stock Movers
LM Ericsson soared 9.9% to SEK 86.10 after the Swedish telecom equipment maker said net income in the third quarter swung to a profit compared to a loss a year ago.
Moreover, India-based Bharti Airtel also placed a multi-billion-dollar order for 5G wireless telecom equipment.
Oil explorers declined after crude oil prices fell as much as 5% on a report that Israel is not targeting Iran's nuclear and oil infrastructure.
Moreover, China's September imports rose only 0.6%, suggesting weak domestic demand.
BP plc declined 4.7% to 389.0 pence, Shell PLC fell 3.7% to 2,494.88 pence, and TotalEnergies decreased 4.3% to €59.80.
TotalEnergies said its downstream results are expected to decline sharply because of weak refining margins in Europe and other regions.
Tele2 AB increased 1.2% to SEK 112.85, and the company appointed Jean-Marc Harion as president and chief executive officer as of November 10.
Bellway PLC soared 6.6% to 3,256.0 pence after the UK-based home builder made positive comments about the domestic housing market recovery.
Japan's Nikkei 225 Stock Average Extended 3-Day Rally, Yen Drifts Near 150-Mark
Stocks in Tokyo advanced for the third day in a row after the yen drifted lower and fell to a five-week low.
The Nikkei 225 stock average increased 0.6%, and the Topix index decreased 0.2%, after investors returned from a three-day holiday.
Stocks retained their upward bias in Tokyo as investors surmised that the Bank of Japan is not likely to raise rates in the imminent future.
Moreover, market sentiment was bolstered following the advance in indexes in overnight trading in New York and the S&P 500 index and the Dow Jones closing at new highs.
Investors have been on edge over the last five weeks on the worry that the hawkish central bank may continue its aggressive increase in interest rate stance.
However, market sentiment improved after the recently appointed prime minister, Shigeru Ishiba, urged the central bank to take a gradual approach to raising rates.
Moreover, officials at the central bank also reiterated the central bank's plan to raise rates in a gradual fashion and avoid excessive depreciation of the yen.
Investors also reviewed the latest announcement by China's finance minister, Lan Fo'an, over the weekend.
Finance ministers comments fell short of market expectations, and China-linked stocks headed lower in Tuesday's trading.
Japan Stock Movers
The Nikkei 225 Stock Average increased 0.8% to 39,910.55, and the broader Topix index increased 0.6% to 2,723.57.
Seven & I Holdings declined 0.2% to ¥2,287.50, and the company announced a restructuring plan to thwart off a hostile takeover offer from Canada-based Couche-Tard.
Mitsubishi UFJ Financial rose 2.2% to ¥1,586.50, Sumitomo Mitsui Financial advanced 1.6% to ¥3,216.0, and Mizuho Financial gained 1.5% to ¥3,093.0.
Tokyo Electron increased 4.4% to ¥26,770.0, Advantest Corp. gained 3.3% to ¥8,061.0, and Disco Corp. advanced 2.2% to ¥38,340.0.
China Indexes Extend Losses Amid Fog of Fiscal Measures
Benchmark indexes in Hong Kong and mainland China traded down for the second week in a row amid rising uncertainty about the possible fiscal stimulus measures.
The Hang Seng index decreased as much as 3% and the CSI 300 index dropped 1.5% as investors worried that China's fiscal stimulus measures may fall short of expectations.
Chinese politicians and policymakers In a familiar pattern of talking up their commitment to bolster economic growth, followed by piecemeal and symbolic gestures to revive economic growth have dented consumer confidence.
Moreover, finance minister Lan Fo'an hinted at a widely publicized press conference that the country has room to increase its already high debt to finance new fiscal measures.
Any effort to increase the overall national debt will require approval from China's National People's Congress, a rubber stamp parliament with 2,977 representatives.
Market sentiment was also weak after China's exports rose at a slower pace of 2.4% and imports advanced 0.6%, indicating weak domestic demand and growing difficulties of increasing shipment amid higher international trade barriers.
China Stock Movers
The Hang Seng index declined 2.6% to 20,542.95 and the CSI 300 index dropped 1.3% to 3,908.63.
Property stocks declined for the third session in a row on the lack of clarity of the possible fiscal measures.
China Vanke dropped 2.4% to HK $7.01, Longfor Group declined 2.7% to HK $13.14, and China Resources Land fell 1% to HK $26.95.
Banks were also in focus after the latest new loan data fell short of market expectations.
Bank of China decreased 0.5% to HK $3.82, China Construction Bank dropped 0.6% to HK $6.11, and Industrial and Commercial Bank of China eased 1.4% to HK $4.77.
Technology stocks were under pressure ahead of the upcoming earnings season, and leading tech companies extended losses to 20% from the peak on October 4.
Alibaba Group decreased 4% to HK $100.90, Tencent Holdings dropped 3.3% to HK $421.20, and Meituan Holding fell 5.8% to HK $172.90.
U.S. Movers: Bank of America, Coty, Citigroup, Goldman Sachs, UnitedHealth
Scott Peters
15 Oct, 2024
New York City
Goldman Sachs increased 2.6% to $536.55 after the investment banker reported better-than-expected quarterly results.
Revenue in the third quarter increased 7% to $12.7 billion from $11.8 billion, net income advanced 45% to $2.99 billion from $2.06 billion, and diluted earnings per share rose 54% to $8.40 from $5.47 a year ago.
Bank of America advanced 2.7% to $43.06 after the financial service provider reported better-than-expected earnings.
Revenue in the third quarter increased to $25.3 billion from $25.2 billion, net income eased to $6.9 billion from $7.8 billion, and diluted earnings per share fell to 81 cents from 90 cents a year ago.
Provision for credit losses was flat at $1.5 billion from the previous quarter and higher than $1.2 billion a year ago.
Citigroup decreased 1.5% to $65.01 after the global bank reported third quarter results that fell short of investor expectations.
Revenue increased 1% to $20.3 billion from $20.1 billion, net income fell 9% to $3.2 billion from $3.5 billion, and diluted earnings per share fell to $1.51 from $1.63 a year ago.
Coty dropped 5.9% to $8.63 after the beauty company reported weaker-than-estimated revenue growth in its latest quarter.
The company said comparable sales in the fiscal first quarter ending in September increased between 4% and 5%, lower than its previous estimate of 6%.
The beauty company said it will release its full results on November 6.
UnitedHealth Group declined 9.1% to $549.99 after the health insurer reported higher-than-expected medical costs.
Revenue in the third quarter increased to $100.8 billion from $92.4 billion, net income attributable to shareholders advanced to $6.1 billion from $5.8 billion, and diluted earnings per share rose to $7.15 from $6.56 a year ago.
Medical costs jumped to $66 billion from $59.6 billion, and total operating costs rose to $92.1 billion from $83.8 billion a year ago.
The company lowered its full-year net income per share outlook to between $15.50 and $15.75.
Wall Street Indexes Hovered Near Recent Highs
Barry Adams
15 Oct, 2024
New York City
Wall Street indexes hovered near recent highs as investors pored over the latest earnings results.
The S&P 500 index and the Nasdaq Composite advanced 0.1%, and crude oil plunged 5% after supply-demand imbalances overshadowed Iran-Israel tensions.
Investors have been bidding up stocks over the last five weeks following a raft of positive economic reports and continued optimism about artificial intelligence.
Nvidia Corp. declined 2.1% to $135.15 after closing at an all-time high in Monday's trading amid optimism about the company's products.
Moreover, investors are hoping that the Federal Reserve will be able to cool inflation while avoiding the economy dipping into a recession.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.1% to 5,862.05, the Nasdaq Composite rose 0.1% to 18,530.62, and the Russell 2000 index advanced 0.5% to 2,247.01.
The yield on 2-year Treasury notes edged lower to 3.97%, 10-year Treasury notes inched down to 4.08%, and 30-year Treasury bonds inched higher to 4.38%.
WTI crude oil decreased $3.06 to $70.75 a barrel, and natural gas prices edged down 1 cent to $2.48 a thermal unit.
Gold fell by $1.18 to $2,648.62 an ounce, and silver decreased by $0.08 to $31.14.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 103.17.
U.S. Stock Movers
Goldman Sachs increased 2.6% to $536.55 after the investment banker reported better-than-expected quarterly results.
Revenue in the third quarter increased 7% to $12.7 billion from $11.8 billion, net income advanced 45% to $2.99 billion from $2.06 billion, and diluted earnings per share rose 54% to $8.40 from $5.47 a year ago.
Bank of America advanced 2.7% to $43.06 after the financial service provider reported better-than-expected earnings.
Revenue in the third quarter increased to $25.3 billion from $25.2 billion, net income eased to $6.9 billion from $7.8 billion, and diluted earnings per share fell to 81 cents from 90 cents a year ago.
Provision for credit losses was flat at $1.5 billion from the previous quarter and higher than $1.2 billion a year ago.
Citigroup decreased 1.5% to $65.01 after the global bank reported third quarter results that fell short of investor expectations.
Revenue increased 1% to $20.3 billion from $20.1 billion, net income fell 9% to $3.2 billion from $3.5 billion, and diluted earnings per share fell to $1.51 from $1.63 a year ago.
Coty dropped 5.9% to $8.63 after the beauty company reported weaker-than-estimated revenue growth in its latest quarter.
The company said comparable sales in the fiscal first quarter ending in September increased between 4% and 5%, lower than its previous estimate of 6%.
The beauty company said it will release its full results on November 6.
UnitedHealth Group declined 9.1% to $549.99 after the health insurer reported higher-than-expected medical costs.
Revenue in the third quarter increased to $100.8 billion from $92.4 billion, net income attributable to shareholders advanced to $6.1 billion from $5.8 billion, and diluted earnings per share rose to $7.15 from $6.56 a year ago.
Medical costs jumped to $66 billion from $59.6 billion, and total operating costs rose to $92.1 billion from $83.8 billion a year ago.
The company lowered its full-year net income per share outlook to between $15.50 and $15.75.
Europe Movers: Bellway, LM Ericsson, TotalEnergies, Tele2
Inga Muller
15 Oct, 2024
Frankfurt
European markets struggled to stay above the flatline after advancing for two days in a row.
Germany's wholesale price deflation accelerated in September, and France's monthly consumer price inflation fell at the fastest pace since record-keeping began in 1990.
The DAX index increased by 0.2% to 19,548.11; the CAC-40 index fell by 0.8% to 7,540.79; and the FTSE 100 index declined by 0.6% to 8,244.90.
The yield on 10-year German bonds edged lower to 2.22%, French bonds inched lower to 2.97%, the UK gilts edged down to 4.19%, and Italian bonds decreased to 3.47%.
LM Ericsson soared 9.9% to SEK 86.10 after the Swedish telecom equipment maker said net income in the third quarter swung to a profit compared to a loss a year ago.
Moreover, India-based Bharti Airtel also placed a multi-billion-dollar order for 5G wireless telecom equipment.
Oil explorers declined after crude oil prices fell as much as 5% on a report that Israel is not targeting Iran's nuclear and oil infrastructure.
Moreover, China's September imports rose only 0.6%, suggesting weak domestic demand.
BP plc declined 4.7% to 389.0 pence, Shell PLC fell 3.7% to 2,494.88 pence, and TotalEnergies decreased 4.3% to €59.80.
TotalEnergies said its downstream results are expected to decline sharply because of weak refining margins in Europe and other regions.
Tele2 AB increased 1.2% to SEK 112.85, and the company appointed Jean-Marc Harion as president and chief executive officer as of November 10.
Bellway PLC soared 6.6% to 3,256.0 pence after the UK-based home builder made positive comments about the domestic housing market recovery.
Germany's Wholesale Price Deflation Deepens, France's Monthly CPI Falls the Most in Three Decades
Bridgette Randall
15 Oct, 2024
London
European markets struggled to hold gains after advancing the previous two sessions as investors reviewed the fresh batch of mixed economic data.
Benchmark indexes in Paris, London, and Frankfurt traded around the flatline, and crude oil prices plunged as much as 5% in London trading.
Industrial production in the Euro Area increased 1.8% from the previous month in August, according to a preliminary report from Eurostat.
On an annual basis, production edged up only 0.1%, driven by a 4.8% decrease in durable consumer goods and a 2.7% fall in intermediate goods.
France's consumer price inflation slowed slightly more than previously estimated in September, according to the statistical agency INSEE.
Monthly consumer price inflation fell 1.2% in September after increasing 0.5% in the previous month, according to France's statistical agency INSEE.
The monthly decline was the largest since the inflation series started in 1990, driven by a 13.5% decline in transportation prices and a 2.2% fall in the prices of services.
On an annual basis, consumer price inflation slowed to an increase of 1.1% in September from a rise of 1.8% in the previous month.
Core inflation, which excludes energy and food prices, also rose at a slower pace of 1.4% in September from a 1.7% increase in August.
Germany's wholesale prices fell at the fastest pace in five months in September, according to a monthly report released by Destatis.
The annual wholesale prices in September fell 1.6%, faster than the decline of 1.1% in August.
The main driver of the decline in wholesale prices was the fall of 14.6% in mineral oil products, 5.8% decline in steel and semi-finished products, and 5.2% decrease in data processing equipment.
Europe Indexes and Yields
The DAX index increased by 0.2% to 19,548.11; the CAC-40 index fell by 0.8% to 7,540.79; and the FTSE 100 index declined by 0.6% to 8,244.90.
The yield on 10-year German bonds edged lower to 2.22%, French bonds inched lower to 2.97%, the UK gilts edged down to 4.19%, and Italian bonds decreased to 3.47%.
The euro edged lower to $1.09; the British pound inched higher to $1.30; and the U.S. dollar strengthened to 86.16 Swiss cents.
Brent crude decreased $3.84 to $73.62 a barrel, and the Dutch TTF natural gas fell by €1.34 to €39.21 per MWh.
Europe Stock Movers
LM Ericsson soared 9.9% to SEK 86.10 after the Swedish telecom equipment maker said net income in the third quarter swung to a profit compared to a loss a year ago.
Moreover, India-based Bharti Airtel also placed a multi-billion-dollar order for 5G wireless telecom equipment.
Oil explorers declined after crude oil prices fell as much as 5% on a report that Israel is not targeting Iran's nuclear and oil infrastructure.
Moreover, China's September imports rose only 0.6%, suggesting weak domestic demand.
BP plc declined 4.7% to 389.0 pence, Shell PLC fell 3.7% to 2,494.88 pence, and TotalEnergies decreased 4.3% to €59.80.
TotalEnergies said its downstream results are expected to decline sharply because of weak refining margins in Europe and other regions.
Tele2 AB increased 1.2% to SEK 112.85, and the company appointed Jean-Marc Harion as president and chief executive officer as of November 10.
Bellway PLC soared 6.6% to 3,256.0 pence after the UK-based home builder made positive comments about the domestic housing market recovery.
China Indexes Extend Losses Amid Fog of Fiscal Measures
Li Chen
15 Oct, 2024
Hong Kong
Benchmark indexes in Hong Kong and mainland China traded down for the second week in a row amid rising uncertainty about the possible fiscal stimulus measures.
The Hang Seng index decreased as much as 3% and the CSI 300 index dropped 1.5% as investors worried that China's fiscal stimulus measures may fall short of expectations.
Chinese politicians and policymakers In a familiar pattern of talking up their commitment to bolster economic growth, followed by piecemeal and symbolic gestures to revive economic growth have dented consumer confidence.
Moreover, finance minister Lan Fo'an hinted at a widely publicized press conference that the country has room to increase its already high debt to finance new fiscal measures.
Any effort to increase the overall national debt will require approval from China's National People's Congress, a rubber stamp parliament with 2,977 representatives.
Market sentiment was also weak after China's exports rose at a slower pace of 2.4% and imports advanced 0.6%, indicating weak domestic demand and growing difficulties of increasing shipment amid higher international trade barriers.
China Stock Movers
The Hang Seng index declined 2.6% to 20,542.95 and the CSI 300 index dropped 1.3% to 3,908.63.
Property stocks declined for the third session in a row on the lack of clarity of the possible fiscal measures.
China Vanke dropped 2.4% to HK $7.01, Longfor Group declined 2.7% to HK $13.14, and China Resources Land fell 1% to HK $26.95.
Banks were also in focus after the latest new loan data fell short of market expectations.
Bank of China decreased 0.5% to HK $3.82, China Construction Bank dropped 0.6% to HK $6.11, and Industrial and Commercial Bank of China eased 1.4% to HK $4.77.
Technology stocks were under pressure ahead of the upcoming earnings season, and leading tech companies extended losses to 20% from the peak on October 4.
Alibaba Group decreased 4% to HK $100.90, Tencent Holdings dropped 3.3% to HK $421.20, and Meituan Holding fell 5.8% to HK $172.90.
India Movers: Adani Power, Easy Trip Planners, HCL Technologies, Reliance Home, Reliance Industries
Arun Goswami
15 Oct, 2024
Mumbai
Stocks in Mumbai struggled after consumer price inflation surpassed the upper end of the RBI's limit, denting the hopes of a rate cut in the imminent future.
The Sensex index decreased by 0.3% to 81,746.14, and the Nifty index fell by 0.3% to 25,044.75.
On the Mumbai stock exchange, 133 stocks traded at their 52-week highs, and 23 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds inched higher to 6.77%, and the Indian rupee eased to 84.06 against the U.S. dollar.
Reliance Home Finance declined 5% to ₹4.75 after the securities regulator SEBI imposed a 625 crore penalty on several executives of the company for alleged financial impropriety and issuing loans to promoters.
Easy Trip Planners declined 2% to ₹33.50, and the company announced a one bonus share for every share held.
The company will fund the bonus share issue of ₹177.2 crore from the current reserves and increase its total paid share capital to ₹354.41 crore.
Adani Power increased 0.9% to ₹640.0 after the Supreme Court reinstated the company's ₹27,000 crore bid to acquire 1,800 MW of KSK Mahandi Power Company.
The debt-laden coal-powered thermal power plant is located in Chattisgarh with an approved production capacity of 3,600 MW.
HCL Technologies increased 1% to ₹1,873.80, and the technology services provider reported a rise in net income in the September quarter.
Revenue increased to ₹29,318 crore from ₹27,037 crore, net income rose to ₹4,237 crore from ₹3,833 crore, and diluted earnings per share advanced to ₹15.61 from ₹14.13 a year ago.
The company revised its fiscal year revenue growth outlook to between 3.5% and 5.0%.
Reliance Industries declined 1% to ₹2,719.50 after the diversified conglomerate reported a decline in profit for the third quarter in a row.
Weak crude oil refining margin negatively impacted the overall results in the quarter.
Revenue decreased slightly from a year ago ₹2.31 lakh crore, and net profit declined 4.8% to ₹16,563 crore.
Reliance Retail Ventures' net profit in the September quarter increased 5.2% to ₹2,935 crore, despite the decline in operating revenue of 3.5% to ₹66,502 crore.
The company opened 464 new stores, increasing its total store count to 18,946 stores. The company added that online sales contributed to 17% of total retail sales as the company continues to scale its online and quick commerce services.
Jio Platforms' revenue in the fiscal second quarter increased 23.4% to ₹6,539 crore, driven by higher monthly revenue per user to ₹191.50.
In the quarter, the company lost a net total of 1.09 crore subscribers, which most analysts attribute to poor quality of telecom and the recent increase in monthly prices in certain telecom circles.
Wall Street Extends Gains Amid Earnings Optimism and Tech Rebound
Alexander Garcia
14 Oct, 2024
Miami
Stock market indexes advanced in Monday's trading as investors remained firmly focused on earnings.
The S&P 500 index gained 0.6% and the Nasdaq Composite advanced 0.8% after the tech rally broadened to consumer cyclicals, healthcare, and transportation.
About 120 companies are set to release their quarterly results this week, including Blackstone, Charles Schwab, American Express, Netflix, P&G, and Abbott.
On the earnings front, Johnson & Johnson, Citigroup, Goldman Sachs, and Bank of America report their quarterly results on Tuesday, and Morgan Stanley, CSX, Las Vegas Sands, and United Airlines report Wednesday.
The S&P 500 index traded at a new high last week, and the index and the Nasdaq Composite advanced for the fifth week in a row amid rising expectations that the Federal Reserve could engineer a soft landing.
Despite record highs, investors are on edge because of the recent jump in crude oil prices, rate path uncertainty, and escalating geopolitical risk in the Middle East.
As of Friday's close, the S&P 500 index has advanced 22.6% and the Nasdaq Composite has jumped 24.2%, excluding dividend reinvestments.
In the week ahead, investors are looking forward to the release of September retail sales and September industrial output on Thursday, followed by September housing starts and building permits Friday.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.6% to 5,851.06, the Nasdaq Composite rose 0.7% to 18,477.88, and the Russell 2000 index rose 0.3% to 2,241.18.
The yield on 2-year Treasury notes edged lower to 3.97%, 10-year Treasury notes inched up to 4.11%, and 30-year Treasury bonds inched higher to 4.41%.
WTI crude oil decreased $1.90 to $73.65 a barrel, and natural gas prices edged down 12 cents to $2.51 a thermal unit.
Gold fell by $10.17 to $2,646.71 an ounce, and silver decreased by $0.40 to $31.12.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 103.19.
U.S. Stock Movers
Boeing declined 1.5% to $148.50 after the aviation company said it plans to cut about 10% of its staff, or about 17,000 jobs.
The company also estimated third quarter revenue of $17.8 billion, GAAP loss per share of $9.97, and operating cash outflow of $1.3 billion.
The company also announced a $3 billion charge related to its 777x and 767 programs in its commercial plane division and delayed its first delivery of 777-9 to 2026 and 777-8 freighter in 2028.
Flutter Entertainment jumped 4.1% to $227.90 after Wells Fargo recommended the stock, urging investors to take advantage of the recent price decline.
In London, UK trading, Flutter Entertainment and Entain PLC declined as much as 7% after a report suggested that the recently appointed U.K. government is looking to increase taxes on the gambling industry to raise as much as £3 billion.
Cryptocurrency-related stocks advanced after Bitcoin rose to $64,000.
MicroStrategy increased 5.8% to $225.12, MARA Holding jumped 6% to $17.08, and Coinbase Global rose 3% to $181.54.
European Markets Meandered as Earnings Season Gathers Pace
European markets lacked direction in Monday's trading as investor focus remained on earnings season.
Benchmark indexes in Paris, London, and Frankfurt traded around flatline, and market indexes rebounded in the previous week.
Investors reviewed the latest earnings results from last week, including updates from BP plc, Continental AG, Stellantis NV, and Porsche Automobil.
The European Central Bank's rate decision was also in view, and investors are divided about the policymakers decision.
A significant majority of investors are hoping that the central bank will keep the benchmark rate steady, but some investors are holding out for a rate cut of as much as 25 basis points.
Crude oil edged lower after rising in the previous two weeks as imminent risks of crude oil supplies receded.
Investors were on defensive after China's finance minister announced a broad plan to revive the flailing property market and inject additional capital into the banking system.
But Finance Minister Lan Fo'an failed to provide the amount and timetable for these measures, denting market enthusiasm.
In the week ahead, investors are awaiting the release of the current account balance, trade show balance, and industrial production in the Euro Area.
The UK is expected to release its retail sales, inflation update, and employment data.
Europe Indexes and Yields
The DAX index increased by 0.6% to 19,501.41; the CAC-40 index rose by 0.3% to 7,598.08; and the FTSE 100 index advanced by 0.5% to 8,292.66.
In the previous week, the DAX index increased 1%, the CAC-40 index added 0.4%, and the FTSE 100 index decreased 0.6%.
The yield on 10-year German bonds edged lower to 2.26%, French bonds inched lower to 3.04%, the UK gilts edged down to 4.23%, and Italian bonds decreased to 3.54%.
The euro edged lower to $1.09; the British pound inched higher to $1.31; and the U.S. dollar strengthened to 86.04 Swiss cents.
Brent crude decreased $1.82 to $77.20 a barrel, and the Dutch TTF natural gas rose by €0.67 to €40.48 per MWh.
Europe Stock Movers
Mulberry Group PLC soared 18% to 132.90 pence after Frasers Group, the 37% stakeholder in the fashion group, revised its potential cash offer for the remaining stake in the company at 150 pence per share.
However, the majority shareholder, Challice Limited, with a 56% stake in the company, publicly rejected the revised offer and said it has no plans to sell its stake in the company to Frasers.
Entain PLC declined 7% to 713.04 pence, and Flutter Entertainment PLC dropped 5.6% to 17,490.0 pence following a report that the UK government is looking to increase taxes on the gambling sector by as much as £3 billion.
China-linked stocks took a dive for the second session in a row after the country's fiscal stimulus measure announcement fell short of investor expectations.
LVMH declined 2.7% to €635.0, Kering SA dropped 3.9% to €229.90, and Hermes International dropped 2.8% to €2,084.0.
Japan's Nikkei 225 Stock Average Extended 3-Day Rally, Yen Drifts Near 150-Mark
Stocks in Tokyo advanced for the third day in a row after the yen drifted lower.
The Nikkei 225 stock average increased 0.6%, and the Topix index decreased 0.2%.
Stocks retained their upward bias in Tokyo as investors surmised that the Bank of Japan is not likely to raise rates in the imminent future.
Investors have been on edge over the last five weeks on the worry that the hawkish central bank may continue its aggressive increase in interest rate stance.
However, market sentiment improved after the recently appointed prime minister, Shigeru Ishiba, urged the central bank to take a gradual approach to raising rates.
Moreover, officials at the central bank also reiterated the central bank's plan to raise rates in a gradual fashion and avoid excessive depreciation of the yen.
Investors also reviewed the latest announcement by China's finance minister, Lan Fo'an, over the weekend.
Finance ministers comments fell short of market expectations, and China-linked stocks headed lower in Monday's trading.
Japan Stock Movers
The Nikkei 225 Stock Average increased 0.6% to 39,605.80, and the broader Topix index decreased 0.2% to 2,706.20.
Seven & I Holdings declined 1.4% to ¥2,292.0, and the company announced a restructuring plan to thwart off a hostile takeover offer from Canada-based Couche-Tard.
Mitsubishi UFJ Financial rose 1.7% to ¥1,552.0, Sumitomo Mitsui Financial advanced 1.5% to ¥3,167.0, and Mizuho Financial gained 1% to ¥3,048.0.
China's Fiscal Stimulus Lacks Details, Stocks Turn Lower In Hong Kong
Market sentiment in China trading was weak after the finance minister failed to provide clarity on the possible fiscal stimulus measures.
The Hang Seng index dropped as much as 1.5% and the CSI 300 index edged higher after investors reacted to comments from the finance minister at a press conference held on Saturday.
At the widely anticipated press conference held by Finance Minister Lan Fo'an, he reiterated the central government commitment to provide additional liquidity to the local banks and provide direct financial assistance to families.
Minister Fo'an laid out the government's plan in broad terms to bolster the local government's finances and support the purchase of residential units, helping the property development companies.
The move was widely anticipated, but the plan failed to provide a specific timetable and the size of the stimulus.
Investors were disappointed by the lack of clarity and urgency on the part of policymakers, which could lead to sharp swings in stock trading in the weeks ahead.
Moreover, the latest inflation updates indicated continuation of China's deflationary trend in September.
Consumer price inflation in September slowed to an annual increase of 0.4% from 0.6% in August, the lowest reading in three months, according to the data released by the National Bureau of Statistics.
Consumer price inflation was positive for the eighth consecutive month, but the increase was the smallest in three months because of the weakness in housing prices and transportation costs.
Core consumer inflation, which excludes food and energy prices, increased 0.1% from a year ago.
Producer price inflation, which tracks wholesale prices, declined 2.8% in September, faster than the 1.8% decline in the previous month, the statistics bureau reported in a separate report over the weekend.
Producer prices contracted for the 24th month in a row and fell at the fastest pace since March.
China's Exports Growth Slowed In September, Trade Surplus Shrank
China's export growth in September slowed sharply to 2.4%, import growth slipped to 0.3% from a year ago, and the country's trade surplus shrank to $81.7 billion from $91 billion in the previous month.
Exports increased to $303.7 billion and imports edged up to $222 billion, and China's international shipments remain the brightest spot in the economy.
China's exports to the U.S. rose 2.2% and surpassed shipments to the European Union and Association of Southeast Asian Nations.
Shipments to the European Union increased 1.3%, and Russia advanced 16.6%.
In the nine-month period to September, exports increased 4.3% to $2.6 trillion.
Exports to the U.S. rose 2.8%, the European Union advanced 0.9%, India 2.6%, and ASEAN jumped 10.2%.
China Stock Movers
The Hang Seng index increased 0.2% to 21,284.91 and the CSI 300 index advanced 2% to 3,965.41.
Alibaba Group declined 0.5% to HK $105.30, JD.com rose 1.6% to HK $169.80, and Tencent.com Holdings dropped 0.8% to HK $435.40.
Longfor Group rose 2.7% to HK $13.74, China Vanke added 1.4% to HK $7.41, and China Resources Land jumped 7.4% to HK $27.60.
China International Capital Corp. dropped 5.2% to HK $13.90 after China's securities regulator confirmed that the company is investigated for its lack of due diligence while listing a local chip company in 2021.