Market Update
China Indexes Extend Losses for Second Consecutive Month In November,
Li Chen
29 Nov, 2024
Hong Kong
Stock market indexes in China and Hong Kong fell for the second consecutive month amid underwhelming stimulus measures and rising trade barriers.
The Hang Seng index advanced on Friday and trimmed weekly and monthly losses after policymakers announced plans to issue long-term bonds to swap debts held by local governments.
Moreover, the next U.S. presidential administration is likely to take a confrontational approach with its trading partners, and president-elect Donald Trump said he plans to levy additional 10% tariffs on shipments from China.
Currency traders are bracing for yuan depreciation of as much as 10% in 2025 if the tariff war with the U.S. and trade restrictions with the European Union escalate.
For the week, the Hang Seng index gained 0.6%, and the CSI 300 index advanced 1.1%.
In November, the Hang Seng index decreased 6.2%, and the CSI 300 index fell 0.2%.
China Stock Movers
The Hang Seng index increased 0.3% to 19,415.21, and the mainland-focused CSI 300 index advanced 1.1%.
Li Auto jumped 3.8% to HK $91.10 but fell 18% in November and led the decliners in the Hang Seng index.
Xiny Solar gained 4.5% to HK $3.44 but dropped 12.2% in November, the second-worst-performing stock in the Hang Seng index.
Mokingran Jewellery Group gained 1.3% to HK $12.90 on the first day of its trading in Hong Kong.
The jewelry company priced its initial public offering of 43.95 million shares at HK $12.0 per share, at the bottom end of its filing range of HK $12.0 and HK $14.40.
After the public offering, the company will have a total of 273.02 million outstanding shares.
Revenue in the six months to June increased to 9.97 billion yuan from 9.31 billion yuan, but net income declined to 52.3 million yuan from 105.98 million yuan a year earlier.
Yen Advanced to Six-Week High After Tokyo Area Inflation Accelerated
Akira Ito
29 Nov, 2024
Tokyo
Stock market indexes in Tokyo edged lower after investors reviewed a raft of economic reports and the yen surged to a six-week high.
The Nikkei 225 Stock Average decreased 0.4% to 38,208.03, and the broader Topix index fell 0.3%.
For the week, the Nikkei 225 index declined 1.7%, and the Topix index decreased 1.6%, and for November, indexes declined 2.2% and 0.6%, respectively.
The Japanese yen closed down 1.2% to 149.67 against the yen amid rising speculation that the Bank of Japan is more likely to raise rates by at least 25 basis points at the end of the two-day meeting on December 19.
The yen jumped after the latest inflation report confirmed strong inflationary trends in place, and this is the last report before the policy meeting next week.
Other economic data matched the expectations set by the Bank of Japan, supporting the case for the central bank to raise rates if financial markets remain stable.
Consumer Price Inflation Stays Above 2%
Core consumer price index in the Tokyo metro region accelerated from a year ago to 2.2% in November from 1.8% in October, the Statistics Bureau of Japan reported Friday.
Core consumer prices exclude only food prices, and energy prices are included in the calculations.
The Ku-area of Tokyo in Japan is seen as a leading indicator of national price trends, and Japan's inflation data are generally released three weeks later.
The overall inflation increased by 2.6% in the month, largely because of higher food prices, and core inflation's increase was driven largely because of the winding down of the energy subsidies.
However, Prime Minister Ishiba is likely to reintroduce energy subsidies to low-income families, and the Cabinet is expected to approve an additional budget Friday to support economic growth and provide relief to consumers from inflation.
Japan Retail Sales Extend Gains to 31st Month
Japan's retail sales in October rose 1.6% from a year ago, marking the 31st month of increase in a row, according to the data released by the Ministry of Economy, Trade & Industry.
Automobile sales rose 7.8%, machinery and equipment sales increased 3.8%, and non-store sales advanced 4% from a year ago, respectively.
However, food and beverage sales decreased 0.3%, and department store sales fell 3.9%.
The state of retail sales is important for Japanese economic growth because factory production is likely to face headwinds amid possible trade confrontation with the U.S. and falling demand from China next year.
Jobless Rate Edges Higher In October
Japan's jobless rate edged up to 2.5% in October from the eight-month low of 2.4% in September, a separate report from the METI showed.
Jobs-to-application ratio increased to a six-month peak of 1.25 in October from 1.24 in September, indicating tight labor market conditions.
The total number of employed increased by 160,000 to a seasonally adjusted 67.98 million, and the number of unemployed advanced by 30,000 to 1.71 million, the ministry said in the report.
The non-seasonally adjusted labor force participation rate increased to 63.5% from 62.1%.
Of the unemployed, the number of people who voluntarily left their jobs fell 5.4% to 700,000, but employees who were asked to leave, including those who retired, increased 5.4% to 390,000.
Japan's Industrial Production Rebounds In October
Japan's industrial production increased 3% from the previous month in October, accelerating from 1.6% in the previous month, the METI said in a report on Friday.
Industrial output increased for the second month in a row and advanced at the fastest pace since July.
Industrial output's increase was driven by the 21.7% surge in machinery production compared to a 1.7% decrease; motor vehicle production rose 6.4% from 7.1%, and fabricated metals production jumped 8.1% compared to a 0.2% decrease in the previous month, respectively.
On an annual basis, industrial production increased 1.6%, reversing a 2.6% fall in September and the first increase in three months.
Japan Stock Movers
Banks, retailers, and tech stocks were in focus after the yen surged in Friday's trading.
Mitsubishi UFJ Financial increased 1.3% to ¥1,792.0, Sumitomo Mitsui Financial advanced 1.1% to ¥3,686.0, and Mizuho Financial gained 1.6% to ¥3,784.0.
Seven & I decreased 0.7% to ¥2,604.0, Fast Retailing edged up 0.02% to ¥51,110.0, and Isetan Mitsukoshi declined 1.9% to ¥2,130.50.
Advantest Corp. gained 0.4% to ¥8,240.0, Tokyo Electron decreased 1.8% to ¥23,310.0, and Lasertec fell 0.9% to ¥16,440.0.
Yen In Tokyo Advanced to Six-Week High After Tokyo Area Inflation Accelerated
Akira Ito
29 Nov, 2024
Tokyo
Stock market indexes in Tokyo edged lower after investors reviewed a raft of economic reports and the yen surged to a six-week high.
The Nikkei 225 Stock Average decreased 0.4% to 38,208.03, and the broader Topix index fell 0.3%.
For the week, the Nikkei 225 index declined 1.7%, and the Topix index decreased 1.6%, and for November, indexes declined 2.2% and 0.6%, respectively.
The Japanese yen closed down 1.2% to 149.67 against the yen amid rising speculation that the Bank of Japan is more likely to raise rates by at least 25 basis points at the end of the two-day meeting on December 19.
The yen jumped after the latest inflation report confirmed strong inflationary trends in place, and this is the last report before the policy meeting next week.
Other economic data matched the expectations set by the Bank of Japan, supporting the case for the central bank to raise rates if financial markets remain stable.
Consumer Price Inflation Stays Above 2%
Core consumer price index in the Tokyo metro region accelerated from a year ago to 2.2% in November from 1.8% in October, the Statistics Bureau of Japan reported Friday.
Core consumer prices exclude only food prices, and energy prices are included in the calculations.
The Ku-area of Tokyo in Japan is seen as a leading indicator of national price trends, and Japan's inflation data are generally released three weeks later.
The overall inflation increased by 2.6% in the month, largely because of higher food prices, and core inflation's increase was driven largely because of the winding down of the energy subsidies.
However, Prime Minister Ishiba is likely to reintroduce energy subsidies to low-income families, and the Cabinet is expected to approve an additional budget Friday to support economic growth and provide relief to consumers from inflation.
Japan Retail Sales Extend Gains to 31st Month
Japan's retail sales in October rose 1.6% from a year ago, marking the 31st month of increase in a row, according to the data released by the Ministry of Economy, Trade & Industry.
Automobile sales rose 7.8%, machinery and equipment sales increased 3.8%, and non-store sales advanced 4% from a year ago, respectively.
However, food and beverage sales decreased 0.3%, and department store sales fell 3.9%.
The state of retail sales is important for Japanese economic growth because factory production is likely to face headwinds amid possible trade confrontation with the U.S. and falling demand from China next year.
Jobless Rate Edges Higher In October
Japan's jobless rate edged up to 2.5% in October from the eight-month low of 2.4% in September, a separate report from the METI showed.
Jobs-to-application ratio increased to a six-month peak of 1.25 in October from 1.24 in September, indicating tight labor market conditions.
The total number of employed increased by 160,000 to a seasonally adjusted 67.98 million, and the number of unemployed advanced by 30,000 to 1.71 million, the ministry said in the report.
The non-seasonally adjusted labor force participation rate increased to 63.5% from 62.1%.
Of the unemployed, the number of people who voluntarily left their jobs fell 5.4% to 700,000, but employees who were asked to leave, including those who retired, increased 5.4% to 390,000.
Japan's Industrial Production Rebounds In October
Japan's industrial production increased 3% from the previous month in October, accelerating from 1.6% in the previous month, the METI said in a report on Friday.
Industrial output increased for the second month in a row and advanced at the fastest pace since July.
Industrial output's increase was driven by the 21.7% surge in machinery production compared to a 1.7% decrease; motor vehicle production rose 6.4% from 7.1%, and fabricated metals production jumped 8.1% compared to a 0.2% decrease in the previous month, respectively.
On an annual basis, industrial production increased 1.6%, reversing a 2.6% fall in September and the first increase in three months.
Japan Stock Movers
Banks, retailers, and tech stocks were in focus after the yen surged in Friday's trading.
Mitsubishi UFJ Financial increased 1.3% to ¥1,792.0, Sumitomo Mitsui Financial advanced 1.1% to ¥3,686.0, and Mizuho Financial gained 1.6% to ¥3,784.0.
Seven & I decreased 0.7% to ¥2,604.0, Fast Retailing edged up 0.02% to ¥51,110.0, and Isetan Mitsukoshi declined 1.9% to ¥2,130.50.
Advantest Corp. gained 0.4% to ¥8,240.0, Tokyo Electron decreased 1.8% to ¥23,310.0, and Lasertec fell 0.9% to ¥16,440.0.
Friday's Market Rebound Trimmed Weekly Losses In India
Arjun Pandit
29 Nov, 2024
Mumbai
Stock market indexes in Mumbai rebounded sharply after falling in the previous session as investors debated the future rate path and outlook for urban consumer spending growth.
The Sensex index increased 0.8% to 79,765.23, and the Nifty index rose 0.9% to 24,123.95.
For the week, the Sensex declined 0.5% and the Nifty index fell 0.8% in volatile trading.
Market sentiment remained weak as Adani Group stocks lacked direction and investors worried about the future rate paths amid falling urban consumer spending.
Crude oil prices in international trading held steady in thin trading as investors await the OPEC+ meeting this Sunday.
Investors are hoping that the group will postpone its previously planned production increase next month amid weak demand growth from key customers in Asia and a supply glut.
India Stock Movers
Sun Pharmaceuticals increased 1.7% to ₹1,764.40, and the company said the Ministry of Corporate Affairs has levied fines on a select list of past and present board of directors for not seeking board approval for related party transactions and failure to make disclosures.
PCBL Ltd. increased 0.6% to ₹433.45, and the company said it has completed the expansion of its specialty chemical capacity at the Mundra plant in Gujarat to 40,000 tons per annum from 20,000 TPA.
Zee Entertainment Enterprises Ltd. increased 5.5% to ₹129.88, and the company's proposal to reappoint Punit Goenka as director of the company was rejected by shareholders.
The proposal to reappoint Goenka as the company director received 49.54% of the total number of votes, and 50.4% voted against the resolution, according to a regulatory filing.
However, shareholders approved three other resolutions, including dividend payment, adopting fiscal year 2024 financial statements, and auditor remuneration.
NCC Ltd. jumped 2.5% to₹311.10 after the company said it received an order worth ₹3,389 crore from various departments of the central government.
The project linking the Ken River in Madhya Pradesh and the Betwa River in Uttar Pradesh was first approved in 2021 to irrigate the drought-prone Bundelkhand region, provide drinking water to 62 lakh people, and generate 103 MW of hydropower.
PC Jeweller Ltd. advanced 2.6% to ₹160.0 after the company set December 16 as a record date for its 1-to-10 stock split.
The retailer reported a sharp reversal in its performance in the fiscal second quarter ending in September; revenue rose to ₹505 crore from ₹33 crore and net income swung to a profit of ₹179 crore from a loss of ₹152 crore a year earlier.
ONGC jumped 0.8% to ₹254.15, and the oil minister said the company is still awaiting the oil field leasing rights for four oil fields discovered in Ashokenagar, West Bengal, for six years.
The Union Oil Minister Hardeep Singh Puri said in Lok Sabha that the state-controlled company is still waiting for permits to commence operations from the West Bengal government.
The company applied for mining rights in a 5.88-square-kilometer area to the state in 2020.
Friday's Market Rebound Trimmed Weekly Losses In India
Arjun Pandit
29 Nov, 2024
Mumbai
Stock market indexes in Mumbai rebounded sharply after falling in the previous session as investors debated the future rate path and outlook for urban consumer spending growth.
The Sensex index increased 0.8% to 79,765.23, and the Nifty index rose 0.9% to 24,123.95.
For the week, the Sensex declined 0.5% and the Nifty index fell 0.8% in volatile trading.
Market sentiment remained weak as Adani Group stocks lacked direction and investors worried about the future rate paths amid falling urban consumer spending.
Crude oil prices in international trading held steady in thin trading as investors await the OPEC+ meeting this Sunday.
Investors are hoping that the group will postpone its previously planned production increase next month amid weak demand growth from key customers in Asia and a supply glut.
India Stock Movers
Sun Pharmaceuticals increased 1.7% to ₹1,764.40, and the company said the Ministry of Corporate Affairs has levied fines on a select list of past and present board of directors for not seeking board approval for related party transactions and failure to make disclosures.
PCBL Ltd. increased 0.6% to ₹433.45, and the company said it has completed the expansion of its specialty chemical capacity at the Mundra plant in Gujarat to 40,000 tons per annum from 20,000 TPA.
Zee Entertainment Enterprises Ltd. increased 5.5% to ₹129.88, and the company's proposal to reappoint Punit Goenka as director of the company was rejected by shareholders.
The proposal to reappoint Goenka as the company director received 49.54% of the total number of votes, and 50.4% voted against the resolution, according to a regulatory filing.
However, shareholders approved three other resolutions, including dividend payment, adopting fiscal year 2024 financial statements, and auditor remuneration.
NCC Ltd. jumped 2.5% to₹311.10 after the company said it received an order worth ₹3,389 crore from various departments of the central government.
The project linking the Ken River in Madhya Pradesh and the Betwa River in Uttar Pradesh was first approved in 2021 to irrigate the drought-prone Bundelkhand region, provide drinking water to 62 lakh people, and generate 103 MW of hydropower.
PC Jeweller Ltd. advanced 2.6% to ₹160.0 after the company set December 16 as a record date for its 1-to-10 stock split.
The retailer reported a sharp reversal in its performance in the fiscal second quarter ending in September; revenue rose to ₹505 crore from ₹33 crore and net income swung to a profit of ₹179 crore from a loss of ₹152 crore a year earlier.
ONGC jumped 0.8% to ₹254.15, and the oil minister said the company is still awaiting the oil field leasing rights for four oil fields discovered in Ashokenagar, West Bengal, for six years.
The Union Oil Minister Hardeep Singh Puri said in Lok Sabha that the state-controlled company is still waiting for permits to commence operations from the West Bengal government.
The company applied for mining rights in a 5.88-square-kilometer area to the state in 2020.
Heidelberg Materials Enlarges U.S. Footprint with Giant Cement Acquisition
Scott Peters
28 Nov, 2024
New York City
Heidelberg Materials AG advanced 1% to €118.85, and the German cement company agreed to acquire the US-based Giant Cement and its subsidiaries for $600 million.
Inmocemento SA gained 5.4% to €3.16, and the Mexican billionaire Carlos Slim-controlled company said its subsidiary, Cementos Portland Valderrivas, will sell its 45% stake in Giant Cement Holding to Heidelberg Materials North America.
The transaction is expected to bring a cash inflow of about $200 million and a capital gain of $145 million for CPV.
The transaction is expected to be accretive from the first year, and add $60 million to operating earnings before "significant additional synergies."
The deal is anticipated to be finalized in the first quarter of 2025.
In the deal, the company acquired a cement production plant, located in South Carolina, with an annual capacity of 800,000 tons, a network of four cement distribution terminals in Georgia and South Carolina, as well joint-venture deep water terminal in Savannah, Georgia.
The cement plant is known for its use of waste-derived fuel facility, and the deal also includes alternative fuel recycling business with four facilities in the Eastern U.S.
The transaction also includes a deep water terminal in Boston, Massachusetts and a distribution terminal in Newington, New Hampshire.
The purchase price for the cement facility and other subsidies is not cheap, but the company held out for future growth because of rising investment in construction and infrastructure projects.
Heidelberg last month commenced the sale of its cement operation in India to Adani Group for $1.2 billion, but at the time said it plans to move away from cement to higher value-added building materials businesses.
Heidelberg and its larger Swiss rival Holcim AG have been ramping up their activities in the U.S. as the world's largest economy ramps up infrastructure building.
Earlier in the year, in June, Heidelberg acquired three cement and building materials companies in the U.S. for $380 million.
Heidelberg Materials Enlarges U.S. Footprint with Giant Cement Acquisition
Scott Peters
28 Nov, 2024
New York City
Heidelberg Materials AG advanced 1% to €118.85, and the German cement company agreed to acquire the US-based Giant Cement and its subsidiaries for $600 million.
Inmocemento SA gained 5.4% to €3.16, and the Mexican billionaire Carlos Slim-controlled company said its subsidiary, Cementos Portland Valderrivas, will sell its 45% stake in Giant Cement Holding to Heidelberg Materials North America.
The transaction is expected to bring a cash inflow of about $200 million and a capital gain of $145 million for CPV.
The transaction is expected to be accretive from the first year, and add $60 million to operating earnings before "significant additional synergies."
The deal is anticipated to be finalized in the first quarter of 2025.
In the deal, the company acquired a cement production plant, located in South Carolina, with an annual capacity of 800,000 tons, a network of four cement distribution terminals in Georgia and South Carolina, as well joint-venture deep water terminal in Savannah, Georgia.
The cement plant is known for its use of waste-derived fuel facility, and the deal also includes alternative fuel recycling business with four facilities in the Eastern U.S.
The transaction also includes a deep water terminal in Boston, Massachusetts and a distribution terminal in Newington, New Hampshire.
The purchase price for the cement facility and other subsidies is not cheap, but the company held out for future growth because of rising investment in construction and infrastructure projects.
Heidelberg last month commenced the sale of its cement operation in India to Adani Group for $1.2 billion, but at the time said it plans to move away from cement to higher value-added building materials businesses.
Heidelberg and its larger Swiss rival Holcim AG have been ramping up their activities in the U.S. as the world's largest economy ramps up infrastructure building.
Earlier in the year, in June, Heidelberg acquired three cement and building materials companies in the U.S. for $380 million.
Europe Movers: Air France KLM, Direct Line Insurance, Heidelberg Materials, Semiconductor Stocks, Volkswagen
Inga Muller
28 Nov, 2024
Frankfurt
European market indexes advanced, but gains were capped amid worries of political instability in France as three political groups struggled to compromise on the financial budget.
The DAX index increased by 0.7% to 19,395.90; the CAC-40 index rose by 0.7% to 7,189.77; and the FTSE 100 index inched higher by 0.04% to 8,278.46.
The yield on 10-year German bonds edged lower to 2.15%, French bonds inched down to 3.0%, the UK gilts edged lower to 4.35%, and Italian bonds decreased to 3.38%.
Semiconductor-related stocks advanced in Europe following speculation that the U.S. may impose weaker restrictions on advanced equipment sales to China.
ASML Holding NV jumped 4% to €653.10, NXP Semiconductor increased 1.4% to €215.0, STMicroelectronics added 0.2% to €23.90, and Infineon advanced 0.8% to €30.28.
Volkswagen Group increased 0.5% to €80.72, and the German automaker said it plans to shut its testing track in Xinjiang and factory for "economic reasons."
Heidelberg Materials AG advanced 1% to €118.85, and the German cement company agreed to acquire the US-based Giant Cement and its subsidiaries for $600 million.
Inmocemento SA gained 5.4% to €3.16, and the Mexican billionaire Carlos Slim-controlled company said its subsidiary, Cementos Portland Valderrivas, will sell its 45% stake in Giant Cement Holding to Heidelberg Materials North America.
The transaction is expected to bring a cash inflow of about $200 million and a capital gain of $145 million for CPV.
The deal is anticipated to be finalized in the first quarter of 2025.
Heidelberg last month commenced the sale of its cement operation in India to Adani Group for $1.2 billion, but at the time said it plans to move away from cement to higher value-added building materials businesses.
Heidelberg and its larger Swiss rival Holcim AG have been ramping up their activities in the U.S. as the world's largest economy ramps up infrastructure building.
Earlier in the year, in June, Heidelberg acquired three cement and building materials companies in the U.S. for $380 million.
Direct Line Insurance Group soared 42% to 226.67 pence after the UK-based insurance company rejected a £3.3 billion offer from Aviva.
Air France KLM SA increased 2.4% to €7.43 on the report that the airline is looking to acquire a 20% stake in Air Europa.
Europe Movers: Air France KLM, Direct Line Insurance, Heidelberg Materials, Semiconductor Stocks, Volkswagen
Inga Muller
28 Nov, 2024
Frankfurt
European market indexes advanced, but gains were capped amid worries of political instability in France as three political groups struggled to compromise on the financial budget.
The DAX index increased by 0.7% to 19,395.90; the CAC-40 index rose by 0.7% to 7,189.77; and the FTSE 100 index inched higher by 0.04% to 8,278.46.
The yield on 10-year German bonds edged lower to 2.15%, French bonds inched down to 3.0%, the UK gilts edged lower to 4.35%, and Italian bonds decreased to 3.38%.
Semiconductor-related stocks advanced in Europe following speculation that the U.S. may impose weaker restrictions on advanced equipment sales to China.
ASML Holding NV jumped 4% to €653.10, NXP Semiconductor increased 1.4% to €215.0, STMicroelectronics added 0.2% to €23.90, and Infineon advanced 0.8% to €30.28.
Volkswagen Group increased 0.5% to €80.72, and the German automaker said it plans to shut its testing track in Xinjiang and factory for "economic reasons."
Heidelberg Materials AG advanced 1% to €118.85, and the German cement company agreed to acquire the US-based Giant Cement and its subsidiaries for $600 million.
Inmocemento SA gained 5.4% to €3.16, and the Mexican billionaire Carlos Slim-controlled company said its subsidiary, Cementos Portland Valderrivas, will sell its 45% stake in Giant Cement Holding to Heidelberg Materials North America.
The transaction is expected to bring a cash inflow of about $200 million and a capital gain of $145 million for CPV.
The deal is anticipated to be finalized in the first quarter of 2025.
Heidelberg last month commenced the sale of its cement operation in India to Adani Group for $1.2 billion, but at the time said it plans to move away from cement to higher value-added building materials businesses.
Heidelberg and its larger Swiss rival Holcim AG have been ramping up their activities in the U.S. as the world's largest economy ramps up infrastructure building.
Earlier in the year, in June, Heidelberg acquired three cement and building materials companies in the U.S. for $380 million.
Direct Line Insurance Group soared 42% to 226.67 pence after the UK-based insurance company rejected a £3.3 billion offer from Aviva.
Air France KLM SA increased 2.4% to €7.43 on the report that the airline is looking to acquire a 20% stake in Air Europa.
Divided French Parliament Keeps European Markets On Edge, Spain's Inflation Accelerated
Bridgette Randall
28 Nov, 2024
London
European markets rebounded a day after falling sharply as investors shifted attention to tech stocks.
Benchmark indexes in Paris, Frankfurt, Milan, and London advanced, following speculation that the U.S. may weaken its stance on advanced semiconductor technology sales to China.
However, market gains were capped amid worries that budgetary disagreements may topple the minority government in France as three main political groups struggle to find a compromise.
France is struggling to lower its budget gap to 3% of GDP over the next three years, as required by the European Union, from 6.1% in 2024.
Benchmark indexes in Europe have struggled over the last month as weakness in private sector activities and political instability in France and Germany have been compounded by looming trade tensions with the U.S.
Spain's Inflation Accelerated to 4-Month High
Spain's annual consumer price inflation rose in November, reflecting a lower base and a rise in electricity and fuel prices.
Consumer price inflation increased to a four-month high of 2.4% from 1.8% in October, and the core rate, which excludes energy and fuel prices, slowed to 2.4% from 2.5% in the previous month.
On a monthly basis, consumer price inflation slowed to 0.2% from 0.6% in October.
EU-harmonized consumer price inflation rose 2.4% on an annual basis and was flat on a monthly basis.
Europe Indexes and Yields
The DAX index increased by 0.7% to 19,395.90; the CAC-40 index rose by 0.7% to 7,189.77; and the FTSE 100 index inched higher by 0.04% to 8,278.46.
The yield on 10-year German bonds edged lower to 2.15%, French bonds inched down to 3.0%, the UK gilts edged lower to 4.35%, and Italian bonds decreased to 3.38%.
The euro edged higher to $1.05; the British pound inched up to $1.26; and the U.S. dollar strengthened to 88.38 Swiss cents.
Brent crude increased $0.49 to $73.32 a barrel, and the Dutch TTF natural gas rose by €0.47 to €46.92 per MWh.
Europe Stock Movers
Semiconductor-related stocks advanced in Europe following speculation that the U.S. may impose weaker restrictions on advanced equipment sales to China.
ASML Holding NV jumped 4% to €653.10, NXP Semiconductor increased 1.4% to €215.0, STMicroelectronics added 0.2% to €23.90, and Infineon advanced 0.8% to €30.28.
Volkswagen Group increased 0.5% to €80.72, and the German automaker said it plans to shut its testing track in Xinjiang and factory for "economic reasons."
Heidelberg Materials AG advanced 1% to €118.85, and the German cement company agreed to acquire the US-based Giant Cement and its subsidiaries for $600 million.
Inmocemento SA gained 5.4% to €3.16, and the Mexican billionaire Carlos Slim-controlled company said its subsidiary, Cementos Portland Valderrivas, will sell its 45% stake in Giant Cement Holding to Heidelberg Materials North America.
The transaction is expected to bring a cash inflow of about $200 million and a capital gain of $145 million for CPV.
The deal is anticipated to be finalized in the first quarter of 2025.
Heidelberg last month commenced the sale of its cement operation in India to Adani Group for $1.2 billion, but at the time said it plans to move away from cement to higher value-added building materials businesses.
Heidelberg and its larger Swiss rival Holcim AG have been ramping up their activities in the U.S. as the world's largest economy ramps up infrastructure building.
Earlier in the year, in June, Heidelberg acquired three cement and building materials companies in the U.S. for $380 million.
Direct Line Insurance Group soared 42% to 226.67 pence after the UK-based insurance company rejected a £3.3 billion offer from Aviva.
Air France KLM SA increased 2.4% to €7.43 on the report that the airline is looking to acquire a 20% stake in Air Europa.
Divided French Parliament Keeps European Markets On Edge, Spain's Inflation Accelerated
Bridgette Randall
28 Nov, 2024
London
European markets rebounded a day after falling sharply as investors shifted attention to tech stocks.
Benchmark indexes in Paris, Frankfurt, Milan, and London advanced, following speculation that the U.S. may weaken its stance on advanced semiconductor technology sales to China.
However, market gains were capped amid worries that budgetary disagreements may topple the minority government in France as three main political groups struggle to find a compromise.
France is struggling to lower its budget gap to 3% of GDP over the next three years, as required by the European Union, from 6.1% in 2024.
Benchmark indexes in Europe have struggled over the last month as weakness in private sector activities and political instability in France and Germany have been compounded by looming trade tensions with the U.S.
Spain's Inflation Accelerated to 4-Month High
Spain's annual consumer price inflation rose in November, reflecting a lower base and a rise in electricity and fuel prices.
Consumer price inflation increased to a four-month high of 2.4% from 1.8% in October, and the core rate, which excludes energy and fuel prices, slowed to 2.4% from 2.5% in the previous month.
On a monthly basis, consumer price inflation slowed to 0.2% from 0.6% in October.
EU-harmonized consumer price inflation rose 2.4% on an annual basis and was flat on a monthly basis.
Europe Indexes and Yields
The DAX index increased by 0.7% to 19,395.90; the CAC-40 index rose by 0.7% to 7,189.77; and the FTSE 100 index inched higher by 0.04% to 8,278.46.
The yield on 10-year German bonds edged lower to 2.15%, French bonds inched down to 3.0%, the UK gilts edged lower to 4.35%, and Italian bonds decreased to 3.38%.
The euro edged higher to $1.05; the British pound inched up to $1.26; and the U.S. dollar strengthened to 88.38 Swiss cents.
Brent crude increased $0.49 to $73.32 a barrel, and the Dutch TTF natural gas rose by €0.47 to €46.92 per MWh.
Europe Stock Movers
Semiconductor-related stocks advanced in Europe following speculation that the U.S. may impose weaker restrictions on advanced equipment sales to China.
ASML Holding NV jumped 4% to €653.10, NXP Semiconductor increased 1.4% to €215.0, STMicroelectronics added 0.2% to €23.90, and Infineon advanced 0.8% to €30.28.
Volkswagen Group increased 0.5% to €80.72, and the German automaker said it plans to shut its testing track in Xinjiang and factory for "economic reasons."
Heidelberg Materials AG advanced 1% to €118.85, and the German cement company agreed to acquire the US-based Giant Cement and its subsidiaries for $600 million.
Inmocemento SA gained 5.4% to €3.16, and the Mexican billionaire Carlos Slim-controlled company said its subsidiary, Cementos Portland Valderrivas, will sell its 45% stake in Giant Cement Holding to Heidelberg Materials North America.
The transaction is expected to bring a cash inflow of about $200 million and a capital gain of $145 million for CPV.
The deal is anticipated to be finalized in the first quarter of 2025.
Heidelberg last month commenced the sale of its cement operation in India to Adani Group for $1.2 billion, but at the time said it plans to move away from cement to higher value-added building materials businesses.
Heidelberg and its larger Swiss rival Holcim AG have been ramping up their activities in the U.S. as the world's largest economy ramps up infrastructure building.
Earlier in the year, in June, Heidelberg acquired three cement and building materials companies in the U.S. for $380 million.
Direct Line Insurance Group soared 42% to 226.67 pence after the UK-based insurance company rejected a £3.3 billion offer from Aviva.
Air France KLM SA increased 2.4% to €7.43 on the report that the airline is looking to acquire a 20% stake in Air Europa.
Resurgent Yen Keeps Rebound In Japan Indexes In Check After Two Days of Slide
Akira Ito
28 Nov, 2024
Tokyo
Bargain hunting was in full swing in Tokyo as investors returned and looked for stocks in the tech, retail, and property sectors.
The Nikkei 225 stock average increased 0.7%, the Topix index advanced 0.8%, and the yen advanced to a one-month high.
The yen edged up 0.3% to 151.24 on widespread speculation that the Bank of Japan is likely to raise rates by 25 basis points at the end of its policy in three weeks.
Stronger yen boosts the values of Japanese assets but lowers foreign earnings of corporations, and about 40% of the listed companies in Japan have significant export revenues.
Crude oil continued to drift lower ahead of the OPEC+ meeting on Sunday, and commodity traders are looking for the group to postpone January's planned production increase amid weak demand growth and supply glut.
Japan imports about 99% of its crude oil, and fossil fuels provide about 88% of the country's energy.
Japan Stock Movers
The Nikkei 225 Stock Average increased 0.7% to 38,408.78, and the broader Topix index added 0.8% to 2,687.26.
T&D jumped 12.7% to ¥2,821.50 after the company made positive statements about its life insurance business at a meeting with investors on Wednesday.
The company reiterated its plans to pay a cash dividend of 80 yen per share in the current fiscal year.
Dai-ichi Life Holdings increased 3.2% to ¥3,906.0, and Tokio Marine Holdings decreased 0.5% to¥5,541.0.
Among the widely held stocks, Casio Computer jumped 6.5% to ¥1,138.50, Toho Co. Ltd. advanced 2.2% to ¥6,322.0, and Tokyo Gas Co. Ltd. increased 1.3% to ¥4,429.0.
Stocks leading the decliners included pharma stocks, select tech stocks, and industrial conglomerates.
Sumitomo Pharma decreased 3.2% to ¥583.0, Ricoh Co. Ltd. fell 4.5% to ¥1,672.0, and Mitsubishi Electric eased 0.1% to ¥2,545.0.
Seven & I Holdings Co. Ltd. increased 1.2% to ¥2,608.0, Isetan Mitsukoshi advanced 1.1% to ¥2,173.0, and the parent company of Uniqlo, Fast Retailing, decreased 0.2% to ¥51,090.0.
Resurgent Yen Keeps Rebound In Japan Indexes In Check After Two Days of Slide
Akira Ito
28 Nov, 2024
Tokyo
Bargain hunting was in full swing in Tokyo as investors returned and looked for stocks in the tech, retail, and property sectors.
The Nikkei 225 stock average increased 0.7%, the Topix index advanced 0.8%, and the yen advanced to a one-month high.
The yen edged up 0.3% to 151.24 on widespread speculation that the Bank of Japan is likely to raise rates by 25 basis points at the end of its policy in three weeks.
Stronger yen boosts the values of Japanese assets but lowers foreign earnings of corporations, and about 40% of the listed companies in Japan have significant export revenues.
Crude oil continued to drift lower ahead of the OPEC+ meeting on Sunday, and commodity traders are looking for the group to postpone January's planned production increase amid weak demand growth and supply glut.
Japan imports about 99% of its crude oil, and fossil fuels provide about 88% of the country's energy.
Japan Stock Movers
The Nikkei 225 Stock Average increased 0.7% to 38,408.78, and the broader Topix index added 0.8% to 2,687.26.
T&D jumped 12.7% to ¥2,821.50 after the company made positive statements about its life insurance business at a meeting with investors on Wednesday.
The company reiterated its plans to pay a cash dividend of 80 yen per share in the current fiscal year.
Dai-ichi Life Holdings increased 3.2% to ¥3,906.0, and Tokio Marine Holdings decreased 0.5% to¥5,541.0.
Among the widely held stocks, Casio Computer jumped 6.5% to ¥1,138.50, Toho Co. Ltd. advanced 2.2% to ¥6,322.0, and Tokyo Gas Co. Ltd. increased 1.3% to ¥4,429.0.
Stocks leading the decliners included pharma stocks, select tech stocks, and industrial conglomerates.
Sumitomo Pharma decreased 3.2% to ¥583.0, Ricoh Co. Ltd. fell 4.5% to ¥1,672.0, and Mitsubishi Electric eased 0.1% to ¥2,545.0.
Seven & I Holdings Co. Ltd. increased 1.2% to ¥2,608.0, Isetan Mitsukoshi advanced 1.1% to ¥2,173.0, and the parent company of Uniqlo, Fast Retailing, decreased 0.2% to ¥51,090.0.