Market Update
Movers: Bank of America, Goldman Sachs, Lockheed Martin, Johnson & Johnson
Scott Peters
18 Apr, 2023
New York City
Bank of America Corp increased 0.7% to $30.55 after the bank reported better-than-expected revenue and earnings in the first quarter, reflecting a jump in net interest rate margin.
Total revenue, net of interest expense, in the first quarter increased 13% to $26.3 billion and net income increased to $7.6 billion from $6.6 billion and diluted earnings per share increased to 94 cents from 85 cents a year ago.
Client balances declined 2% from a year ago to $1.6 trillion but rose 2% from the fourth quarter and the bank increased its provision for loan losses to $931 million from $30 million a year ago largely driven by credit card balances.
Goldman Sachs Group Inc decreased 2.3% to $331.89 after the investment bank reported lower-than-expected revenue and took a charge of $470 million related to the sale of its consumer loans business Marcus.
Revenue in the first quarter ending in March decreased 5% to $12.2 billion from $12.9 billion.
Investment banking fees declined 26% to $1.6 billion, bonds, currencies and commodities business dropped 17% to $3.9 billion and equities segment revenue decreased 7% to $3.0 billion.
Asset and wealth management revenue rose 24% to $3.2 billion and platform solutions revenue soared 110% to $564 million.
Net income applicable to common stockholders fell 19% to $3.1 billion from $3.8 billion and diluted earnings per share fell to $8.79 from $10.76 a year ago.
Provision for credit losses was a net gain of $171 million for the first quarter, compared with net provisions of $561 million for the first quarter of 2022 and $972 million for the fourth quarter of 2022.
Lockheed Martin Corp rose 2.9% to $504.16 after the aerospace company and defense contractor reaffirmed its full-year outlook and posted better-than-expected quarterly results.
Net sales in the first quarter increased to $15.1 billion from $15.0 billion and net income was flat at $1.7 billion and diluted earnings per share rose to $6.61 from $6.44 a year ago.
The company paid $784 million in dividends and $500 million of its own shares in the first quarter.
Johnson & Johnson decreased 2.4% to $161.72 after the pharmaceuticals and consumer products maker said first quarter revenue increased 5.6% to $24.75 billion.
The company swung to a net loss of $68 million from a profit of $5.2 billion and diluted earnings per share of ($0.03) from $1.93 a year ago.
Adjusted earnings, which excludes special items and amortization expenses, fell 0.9% to $7.06 billion from $7.2 billion and adjusted diluted earnings per share of $2.68 from $2.67 a year ago.
U.S. Indexes Traded In Tight Range as Earnings Roll In
Barry Adams
18 Apr, 2023
New York City
Market indexes advanced in the first hour of trading as investors reacted to the fresh batch of earnings.
Investors remained focused on quarterly results and poured over bank results to get deeper insights in the health of the banking system.
Commodities prices attempted a rebound after China reported better-than-expected growth in the first quarter.
China\'s GDP rose at an annual pace of 4.5% in the first quarter, a rebound from 2.9% in the fourth quarter, the National Bureau of Statistics said Tuesday.
The stronger-than-expected rebound was in part driven by additional stimulus provided by the Chinese government for infrastructure projects.
Economists in China were anticipating the GDP to expand at 4.0% and the faster rebound raised hopes that the world\\\'s second largest economy may exceed the 5.0% growth target set by the government in 2023.
Apple Inc was also in focus after the company opened its first retail store in India and extended its retail network in one of its fastest growing markets.
Apple is in the middle of diversifying away from its manufacturing base from China to India and the maker of popular computing devices is also looking to ramp up its sales.
In the latest financial year, Apple sales in India jumped to $6 billion and analysts are estimating that the company can sustain a growth rate upwards of 30% for several years.
Indexes & Yields
The S&P 500 index increased 0.3% to 4,166.05 and the Nasdaq Composite index advanced 0.6% to 12,226.51.
The yield on 2-year Treasury notes increased 2 basis points to 4.21%, 10-year Treasury notes fell 1 basis point to 3.57% and 30-year Treasury bonds jumped 2 basis points to 3.82%.
Crude oil declined 24 cents to $80.55 a barrel and natural gas futures rose 2 cents to $2.30 a thermal unit.
U.S. Stock Movers
Bank of America increased 0.7% to $30.55 after the bank reported better-than-expected revenue and earnings in the first quarter, reflecting a jump in net interest rate margin.
Goldman Sachs Group Inc decreased 2.3% to $331.89 after the investment bank reported lower-than-expected revenue and took a charge of $470 million related to the sale of its consumer loans business Marcus.
Lockheed Martin Corp rose 2.9% to $504.16 after the aerospace company and defense contractor reaffirmed its full-year outlook and posted better-than-expected quarterly results.
Net sales in the first quarter increased to $15.1 billion from $15.0 billion and net income was flat at $1.7 billion and diluted earnings per share rose to $6.61 from $6.44 a year ago.
The company paid $784 million in dividends and $500 million of its own shares in the first quarter.
Johnson & Johnson decreased 2.4% to $161.72 after the pharmaceuticals and consumer products maker said first quarter revenue increased 5.6% to $24.75 billion.
The company swung to a net loss of $68 million from a profit of $5.2 billion and diluted earnings per share of ($0.03) from $1.93 a year ago.
Adjusted earnings, which excludes special items and amortization expenses, fell 0.9% to $7.06 billion from $7.2 billion and adjusted diluted earnings per share of $2.68 from $2.67 a year ago.
Earnings Optimism Drives European Markets to Record Territory
Bridgette Randall
18 Apr, 2023
Frankfurt
The European markets advanced in cautious trading as investors remained focused on corporate earnings.
Benchmark indexes opened slightly higher but extended gains and the French index traded at a new record high after China\\\'s economy expanded at a faster pace in the first quarter.
China\\\'s GDP rose at an annual pace of 4.5% in the first quarter, a rebound from 2.9% in the fourth quarter, the National Bureau of Statistics said Tuesday.
The stronger-than-expected rebound was in part driven by additional stimulus provided by the Chinese government for infrastructure projects.
Economists in China were anticipating the GDP to expand at 4.0% and the faster rebound raised hopes that the world\\\'s second largest economy may exceed the 5.0% growth target set by the government in 2023.
Meanwhile, investors overlooked the weakening of the German investor morale in April and the UK\\\'s annual wage growth was significantly ahead of market expectations.
UK Wage Growth Ahead of Expectations
Average weekly earnings from a year ago in three months to February rose 5.9% to £638.0, the Office for National Statistics said Tuesday.
Regular pay, which excludes bonus, increased 6.6% to £596.0, ahead of expectations of 6.2% set by some economists.
Regular wages adjusted for inflation fell 3% and excluding bonus declined 2.3%, the largest decline since 2009.
Italy\\\'s Foreign Trade Swung to Surplus
Italy\\\'s foreign trade swung to surplus after exports rose faster than imports, the statistical agency Istat reported Tuesday.
Total exports not adjusted for seasonal factors increased to Є52.44 billion and imports rose to Є50.34 billion, resulting in trade surplus of Є2.2018 billion.
Italy\\\'s non-seasonally adjusted merchandise trade swung to a surplus of Є2.108 billion from a deficit of Є1.475 billion. Excluding energy, trade surplus rose to Є7.9 billion.
On a seasonally adjusted basis, trade surplus increased to Є2.9 billion from Є1.99 billion in January after imports declined for the sixth month in a row.
Non-seasonally adjusted exports increased 10.8% from a year ago in February following 15.5% in the previous month and imports rose at a slower pace of 3.6% from 8.6% in January.
Import prices in February fell 1.7% from the previous month but rose 1.3% from a year ago.
For the first quarter ending in March, non-seasonally adjusted trade deficit was Є2.128 billion.
Indexes & Yields
The DAX index increased 0.5% to 15,863.23, the CAC-40 index added 0.5% to 7,537.29 and the FTSE 100 index advanced 0.2% to 7,537.29.
The yield on 10-year German Bunds inched higher to 2.46%. French bonds hovered near 2.95%, the UK gilts to 3.71% and Italian bonds to 4.28%.
The euro edged lower to $1.097, the British pound traded down to $1.241 and the Swiss franc trended lower to 89.66 cents.
Brent crude was nearly unchanged at $84.76 a barrel and the Dutch TTF natural gas edged up 26 cents to Є41.79 per MWh.
Europe Stock Movers
easyJet plc increased 0.9% to 515.68 pence after the deep discount airline forecasted full-year profit is likely to exceed market expectations.
UBS Group AG increased 1.2% to Sfr 18.95 after the Swiss bank said it may use some of the shares held in treasury instead of canceling them for the purchase of Credit Suisse.
MTU Aero Engines AG increased 1.3% to €240.30 after the maker of military engines reported better-than-expected revenue.
MTU Aero said first quarter revenue increased to €1.54 billion and adjusted earnings of €212 million.
The preliminary first quarter results are ahead of the market expectations of 1.4 billion in revenue and 172 million in adjusted earnings.
Free cash in the quarter was €93 million, lower than market estimate of €97 million.
The company said it will release the first quarter financial results on April 26.
LM Ericsson dropped 6.6% to SEK 58.32 despite the Swedish telecom equipment maker reporting better-than-expected core earnings in the first quarter.
Net sales in the first quarter increased 14% to SEK62.6 billion but net income plunged 46% to SEK 1.6 billion from SEK 2.9 billion and diluted earnings per share declined to SEK0.45 from SEK0.88 a year ago.
Beijing's Stimulus Measures Support First Quarter GDP Rebound
Brian Turner
18 Apr, 2023
New York City
China's economy expanded at a faster pace in the first quarter, the National Bureau of Statistics reported Tuesday.
GDP in the first quarter gained 4.5% from a year ago after rising 2.9% in the fourth quarter as activities picked up at the fastest pace in a year after the ending of strict zero-covid policy.
The Chinese government has set 2023's economic growth target of around 5.0%.
Domestic production and demand challenges and macroeconomic headwinds for exports may pose a challenge in the near term but the raft of infrastructure spending announced by the government is likely to kick the economy in the higher gear in the third and the final quarter of the year.
Retail sales soared 10.6% in March, significantly higher than 3.5% in February, driven 11.5% rebound in vehicle sales and 37.4% jump in precious jewelry sales.
Retail sales rose at the fastest pace since June 2021.
Industrial production increased 3.9% in March following a 2.4% rise in January-February period driven by higher output from manufacturing and utilities but mining activities shrank.
Industrial production rose at the fastest pace since October.
Fixed-assets investment increase slowed to an annual pace of 5.1% in the first quarter from the 5.5% rise in the first two-month period.
China's economic recovery is expected to be uneven in the months ahead on the worries about the strength of domestic demand and uncertainties about exports.
“We must be aware that the situation abroad is still complex and volatile, inadequate domestic demand remains prominent and the foundation for economic recovery is not solid yet," said NBS spokesman Fu Linghui.
The jobless rate in March eased to 5.3% from 5.6% in February but the advanced electronics manufacturing industry continued to shrink after exports of electronics products fell.
Micro computing devices manufacturing fell 21.6% in March, mobile phone production declined 7.6% and integrated circuits output fell 3%.
Movers: Alphabet, Charles Schwab, State Street, Roblox
Scott Peters
17 Apr, 2023
New York City
Alphabet Inc fell 3.2% to $105.41 after The New York Times reported that Samsung is considering switching the default Google search engine on its mobile devices to Microsoft's Bing.
The report said about $3 billion revenue may be at stake and Google's parent Alphabet was surprised to learn about the discussions between Microsoft and Samsung.
Charles Schwab Corporation increased 2.3% to $51.95 after the online stock broker and financial services provider reported better-than-expected earnings in its latest quarter.
Revenue in the first quarter increased 10% to $5.1 billion and net income rose 14% to $1.6 billion from $1.4 billion and diluted earnings per share advanced to 83 cents from 67 cents a year ago.
Schwab attracted net new one million accounts with core net new assets of $132 billion in the quarter, including $51 billion in March.
Roblox Corp fell 11.6% to 40.38 after the online gaming company said its revenue or average bookings per daily user declined from a year ago in March.
Daily active users increased 26% to 66.2 million from a year ago and estimated bookings were between $247 million and $255 million, an increase between 23% and 27% from a year ago.
However, Roblox said estimated average bookings per daily active user were between $3.73 and $3.85, which represents a change between -2% and 1% from a year ago.
State Street Corp fell 11.% to $71.24 after the company reported weaker-than-expected revenue and earnings.
Revenue in the March quarter increased 1% to $3.1 billion and net income declined 9% to $549 million from $604 million and diluted earnings per share fell to $1.52 from $1.57 a year ago.
Assets under management declined 10% to $3.6 billion from $4.02 billion a year ago, reflecting lower quarter-end market levels and net outflows.
Stocks Meandered On Wall Street With Regional Banks In Focus
Barry Adams
17 Apr, 2023
New York City
Benchmark indexes lacked direction as investors reviewed the latest batch of earnings including regional banks.
Market averages trimmed gains on Friday following weaker-than-expected retail sales in March but the Nasdaq and the S&P 500 index advanced in four of the last five weeks.
With earnings from large banks out of the way, investors are looking ahead to results from more banks and large brokerage houses this week.
Medical services, pharmaceutical makers and semiconductor companies extended gains of the last three weeks ahead of earnings.
Moreover, broader markets have been making advances with more up days then down days in the last 30 trading days.
M&T Bank offered a glimmer of hope in the ravaged regional banking sector after the company reported better-than-expected earnings and revenue in the March quarter.
Critically watched, total deposits at the end of March quarter fell less than 3% to $159.1 billion from $163.5 billion at the end of the December quarter.
Investors have been looking for signs of deposit outflows at regional banks, which could signal if the bank is likely to face a capital crisis.
With earnings in focus, investors placed worries linked to the Fed's rate hike at the next meeting in early May and looked for clues about the drivers of corporate earnings and how businesses are handling elevated inflammation levels and weakening consumer demand.
Indexes & Yields
The S&P 500 index fell 0.3% to 4,126.66 and the Nasdaq Composite index eased 0.3% to 12,082.52.
The yield on 2-year Treasury notes increased 26 basis points to 4.19%, 10-year Treasury notes rose 11 basis points to 3.59% and 30-year Treasury bonds rose 3.81%.
Crude oil fell $1.93 to $80.56 a barrel and natural gas prices rose 14 cents $2.25 a thermal unit.
Stock Movers
Alphabet Inc fell 3.2% to $105.41 after The New York Times reported that Samsung is considering to switching default Google search engine on its mobile devices to Microsoft's Bing.
The report said about $3 billion revenue may be at stake and Google's parent Alphabet was surprised to learn about the discussions between Microsoft and Samsung.
Charles Schwab Corporation increased 2.3% to $51.95 after the online stock broker and financial services provider reported better-than-expected earnings in its latest quarter.
State Street Corp fell 11.% to $71.24 after the company reported weaker-than-expected revenue and earnings.
Roblox Corp fell 11.6% to 40.38 after the online gaming company said its revenue or average bookings per daily user to decline from a year ago in March.
Daily active users increased 26% to 66.2 million from a year ago and estimated bookings were between $247 million and $255 million, an increase between 23% and 27% from a year ago.
However, Roblox said estimated average bookings per daily active user were between $3.73 and $3.85, which represents a change between -2% and 1% from a year ago.
Weak Bank Stocks Drag European Markets Lower
Bridgette Randall
17 Apr, 2023
Frankfurt
The Europe markets lacked direction after two hours of earnings and bond yields inched higher.
Benchmark indexes flirted near new intraday highs after investors welcomed the latest rate decision from China and improving quarterly results from large banks in the U.S.
JPMorgan Chase and Wells Fargo reported higher earnings and revenues on the back of higher net interest rate margin but Citigroup sharply revised higher its provision for bad loans.
The People's Bank of China's move to leave its medium-term rate at 2.75%, reflecting confidence of the central bank that the economic growth will pick up in the near term.
Earnings anxieties also dominated trading sentiment on the worries that the commercial real estate sector in the Euro Area may face more headwinds if the European Central Bank continues its aggressive rate hike plan in 2023.
Markets were on alert after Sweden's Ministry of Finance revised its estimate of economic contraction in 2023.
GDP in 2023 is now expected to shrink 1.0% from the previous estimate of 0.7% in December and lowered its estimate of consumer price inflation to 8.8% from 8.9%.
The government also proposed additional measure to help businesses and households in tackling the ongoing energy crisis.
Swedish government announced in a supplementary budget released Monday approximately SEK 27 billion to households and approximately SEK 30 billion to businesses in 2023 to compensate for high electricity prices.
Indexes & Yields
The DAX index increased 3.9 points to 15,811.49, the CAC-40 index eased 0.28 points to 7,518.89 and the FTSE 100 index increased 27.78 points or 0.35% to 7,899.69.
The yield on 10-year German Bunds increased to 2.46%, French bonds to 2.96%, the UK gilts to 3.65% and Italian bonds to 4.309%.
The euro traded near a one-year high and natural gas prices traded near the 2021 levels amid weakening demand driven by above average warmer weather conditions.
The euro hovered near $1.097, the British pound fetched $1.2411 and the Swiss franc traded at 89.39 cents.
Brent crude oil declined 19 cents to $89.11 a barrel and the Dutch TTF natural gas rose 56 cents to Є41.71 per MWh.
Europe Movers
Industrial companies led the gainers in Frankfurt trading and MTU Aerospace, Heidelberg Cement and Henkel rose more than 1% but insurance companies Hannover RE, Muencher Ruck and Deutsche Bank led the decliners with a loss of 2%.
In Paris, AreclorMittal, Publicis Groupe, TotalEnergies and Safran advanced 1%.
In London, HSBC, Standard Chartered, Barclays fell more than 1% and BP Plc and Shell Plc rose more than 0.5%. Anglo American, Antofagasta and Glencore rose between 0.2% and 1%.
U.S. Indexes Trim Weekly Gains, Global Markets Advance
Barry Adams
14 Apr, 2023
New York City
Stocks were on the defensive after a retail sales report overshadowed strong corporate earnings in Friday's trading.
Benchmark indexes struggled to advance after an unexpected decline in retail sales in March, put investors on alert.
The report was especially worrisome to investors because retail sales are not adjusted for inflation, indicating consumers are retrenching at a faster pace than previously estimated in the face of rising elevated inflation and rising interest rates.
Despite the cooling inflation trend for nine months, housing costs are rising across the nation and urban households are facing a surge in rents and other housing expenses, which are under-represented in inflation indexes.
Lower retail sales also reflect lower gasoline prices at pump stations, but volatile fuel prices can rebound if demand from China picks up and big oil companies turn supplies lower in search of higher prices.
In other news, leading banks reported rising earnings and revenues defying banking system worries after the sudden collapse of Silicon Valley Bank on March 10.
JPMorgan Chase, Wells Fargo, Citigroup, PNC Financial reported quarterly earnings reports that matched or exceeded investor expectations.
Earnings reports provided fresh insights in the health of the financial system after the collapse of Silicon Valley Bank.
Megabanks in some ways are beneficiaries of the developing stress in regional banks as rapid rise in interest rates negatively impact treasury securities held-to-maturity accounts.
Unadjusted Retail Sales Declined In March
Retail sales in March declined 1% from the month, following a downwardly revised 0.2% decline in February, the U.S. Census Bureau reported Friday.
Retail sales from a year ago increased 2.9% and in the first quarter to March rose 5.4% from the previous year.
The retail sales data are not adjusted for inflation, meaning real sales probably declined more as consumers battle high inflation and rising interest rates weigh on consumer behavior.
Lower gasoline prices drove sales at pump stations by 5.5% from the previous month, general merchandise stores sales fell 3%, building materials and garden equipment sales decreased 2.1%, electronics and appliances sales fell 2.1% and motor vehicle sales at dealers eased 1.6%.
Retail sales at food and beverage stores eased 0.1% from the previous month but rose 5.0% from a year ago.
Sales at nonstore retailers increased 1.9% from the previous month but rose 12.3% from a year ago and inched up 0.1% from the previous month but rose 13.0% from a year ago at food services and drinking places.
Industrial Production Advanced In March
Industrial production increased 0.4% from the previous month in March and rose 0.2% from a year ago, the Federal Reserve reported Friday.
The industrial production index increased 0.5% from a year ago.
The index for utilities increased 8.4% in March boosted by heating demand after the return to a more seasonal weather following a mild February.
Manufacturing and mining output fell 0.5% and capacity utilization increased to 79.8%, a rate 0.1 percentage point above the long run fifty year average.
U.S Indexes & Yields
The S&P 500 index fell 0.2% to 4,137.64 and the Nasdaq Composite index dropped 0.4% to 12,123.47.
For the week, the S&P 500 index gained 0.8% and the Nasdaq Composite index advanced 0.35.
Both the S&P 500 and the Nasdaq advanced in four of the last five weeks.
The yield on 2-year Treasury notes increased to 4.09%, 10-year Treasury notes rose to 3.51% and 30-year Treasury bonds increased to 3.74%.
Crude oil price increased 38 cents to $82.54 a barrel and natural gas price added 10 cents to $2.10 a thermal unit.
U.S. Stock Movers
BlackRock Inc traded nearly unchanged at $670.21 after the financial services company reported first quarter results.
Boeing Co declined 6.1% to $220.55 after the aerospace company said it may have to lower delivery of its 737 Max planes because of fittings used in aft fuselage made by Spirit AeroSystems.
Boeing clarified that the "non-safety issue" is not expected to affect the panes in service but will impact a number of undelivered planes.
Spirit AeroSystems Holdings Inc plunged 14.4% to $30.45 and the company said it will work with Boeing and "continue to coordinate closely with our customer to resolve this matter and minimize impacts while maintaining our focus on safety."
Earlier in the week, Boeing said it delivered 113 737 planes in the first quarter and delivered 130 commercial airplanes, including 11 787 airplanes, in the period.
Citigroup Inc increased 2% to $48.25 after the global bank reported first quarter revenues ahead of expectations.
Express Inc increased 18% to 67 cents after the company and WHP Global agreed to acquire e-commerce brand Bonbons from Walmart.
JPMorgan Chase & Co increased 5.7% to $136.32 after the New York based bank reported record revenue in its latest quarter.
Lucid Group Inc declined 9% to $7.51 after the luxury electric vehicle maker said it delivered fewer of its sedans than it produced in the first quarter, indicating weak customer demand.
PNC Financial Services Group increased 1.3% to $123.05 after the company reported quarterly results and recorded provision for credit losses lower than in the previous quarter.
Wells Fargo & Co increased 4.2% to $41.30 after the California based bank reported higher-than-expected revenue and earnings in the first quarter.
Monetary Pause Hopes Drive European Markets In Longest Winning Streak In Four Months
Benchmark indexes in Europe extended gains after inflation indexes in France and Germany eased.
Germany's wholesale prices index fell sharply in March and French consumer price index eased following the sharp decline in energy prices.
Cooling inflation trends in the U.S. and Europe raised hopes that the central bankers are nearing an end to aggressive rate increase cycle and may pause after the next meeting in May.
Singapore held its monetary policy tightening and also lowered its estimate of economic growth in 2023.
Singapore joined other central banks in India, Australia, Canada and South Korea that already paused rate hikes.
Stocks in the Eurozone opened higher and extended gains ahead of the start of earnings season in the U.S. and Europe.
Investors are awaiting earnings results from U.S. banks and benchmark indexes are set for their longest weekly advance since early December.
German Wholesale Inflation Fell Sharply In March
The German wholesale price index declined for the sixth month in a row and slipped to the rate last seen in January 2021, the Federal Statistics Office or Destatis reported Friday.
On a monthly basis, the wholesale price index increased 0.2% after rising 0.1% in February.
Wholesale price index over the year increased 2.0% in March, slower than 8.9% in February, reflecting a sharp negative swing in energy and petrochemical related products.
Prices of materials and residues decreased 29%, petroleum products decreased 17.9% and metals and ores dropped 14.1%.
However, prices of food, beverages and tobacco increased 16.4%, reflecting meat and meat products price increase of 20.0%, fruits, vegetables and potatoes 20% and milk and dairy products, eggs, edible oils and fats 19.6% and building materials and elements 19.8%.
Wholesale price inflation has been on the decline after peaking at 23.6% in March 2022.
French Consumer Price Inflation Slowed in March
France's consumer price index inflation slowed to 5.7% annual rate in March, from 6.3% increase in February, the statistical office Insee reported Friday.
The final estimate of consumer inflation was revised higher from the flash estimate of 5.6%.
Indexes & Yields
The DAX index increased 0.5% to 15,807.50, the CAC-40 index rose 0.5% to 7,519.61 and the FTSE 100 index advanced 0.4% to 7,871.91.
The yield on 10-year German Bunds increased to 2.43%, French bonds to 2.93%, the UK gilts to 3.65% and Italian bonds to 4.29%.
The euro inched higher to $1.106, the British pound to $1.241 and the Swiss franc to 89.31 cents.
Brent crude oil increased 23 cents to $86.32 a barrel and the Dutch TTF natural gas eased 89 cents to 41.20 per MWh.
Europe Stock Movers
Dechra Pharmaceuticals plc soared 34% to 3,732.0 after the veterinary products maker confirmed it is in talks with private equity group EQT for a possible offer of £4.63 billion.
Hermes International SCA increased 1.1% to €1,966.80 after the French luxury products maker said sales in the first quarter increased 22% to €3.38 billion.
Sales in Europe increased 22.9%, Asia jumped 20.9% and in the Americas 23.9%.
YouGov Plc increased 2.3% to 880 pence after the company appointed Steve Hatch as its next chief executive.
TomTom NV advanced 5.3% to €8.0 after the Dutch navigation firm returned to profit in the first quarter.
888 Holdings Plc soared 17.9% to 72.89 pence after the online sports betting and gambling company reported a double-digit increase in annual revenue.
Group revenue in the fiscal year ending in March surged 74% to £1,238.8 million, and adjusted operating income increased 82% to £217.9 million, including the purchase of William Hill on July 1, 2022.
Proforma profit declined to 64 .2 million from 82.6 million and earnings per share fell to 15.1 pence from 22.2 pence a year ago, adjusting for the William Hill transaction.
Asian Markets Traded Higher Following U.S. Gains
Asian markets traded higher following overnight gains in the U.S. after inflation and rate-hike worries eased.
On Thursday wholesale price index and on Wednesday consumer price index showed waning inflation pressures, reflecting volatile but falling energy prices.
Wholesale price inflation index unexpectedly fell in March and consumer price index declined for the ninth month in a row.
Asian markets track Wall Street swings as the region's export driven economies rely on the market developments in the world's largest economy.
Investors are hoping that the two inflation reports this week may convince the Federal Reserve to pause future rate hikes after the next meeting in early May.
Singapore Left Currency Band Unrevised
The Monetary Authority of Singapore left its key lending rate unrevised after five interest rate hikes in a row since October 2021.
MAS maintains an indirect control on its interest rate by widening or tightening the currency band, known as Singapore dollar nominal effective exchange rate (S$Neer).
MAS said it will retain its current rate of currency appreciation, which will help the nation pay for pricier imports but also keeping the current exchange rate in place will not impact its ability to export.
After the MAS policy announcement, the Singapore dollar declined as much as 0.5% but managed to recover to $1.325.
Singapore's economy expanded only 0.1% in the first quarter on an annual basis after rising at 2.1% in the final quarter of 2022, the Ministry of Trade and Industry said Friday.
The ministry also lowered its estimate of annual economic growth in 2023 by 0.5 percentage point to 2.5%, from 3.6% in the previous year.
The MAS also left its 2023 estimate of core inflation, which excludes housing and private transportation, between 3.5% and 4.5% and overall inflation between 5.5% and 6.5%.
Asian Indexes & Yields
Stocks in Tokyo advanced following the gains in overnight trading in New York but markets in Shanghai and Hong Kong were muted.
The Nikkei index increased 1.1% to 28,462.21, the Hang Seng Index added 0.2% to 20,391.29 and the SSE Composite index advanced 0.5% to 3,334.17.
Financial markets in India were closed for Ambedkar Jayanti.
Asia Stock Movers
Stocks in Hong Kong lacked direction but funds controlled by mainland China added exposure to large tech companies.
BYD, Geely Auto, HSBC and Alibaba Group added between 0.5% and 1.5% but Tencent Holdings fell 0.2%, JD.com declined 1.5% and Baidu fell 4.1%.
Mainland China controlled funds increased their exposure to Hong Kong listed stocks for the tenth week in a row, adding $10 billion of stocks according to the data available from Stock Connect.
Fast Retailing Company Limited soared 8.5% to ¥32,840.00 after the parent of Uniqlo reported operating profit in the first-half to February jumped to ¥220 billion from ¥189 billion a year ago.
The retailer also lifted its full-year profit estimate to ¥360 billion from ¥350 billion forecast in January.
Infosys Limited declined 8.2% to $15.69 in New York trading after the India-based global tech services provider reported weaker-than-expected quarterly results.
Revenue in the March quarter increased 6.4% to $4.6 billion and net income declined to $744 million from $752 million and diluted earnings per share held at 18 cents.
For the fiscal year 2023 ending in March, revenue increased 11.7% to $18.2 billion and net income was stable at $2.9 billion and diluted earnings per share was 71 cents compared to 70 cents a year ago.
The company guided fiscal year 2024 revenue to rise between 4% and 7% in constant currency and operating margin between 20% and 22%.