Market Update
Europe Movers: BP, Hayes, Porsche, Stellantis, Zalando
Inga Muller
11 Oct, 2024
Frankfurt
European markets struggled to advance amid a lack of domestic catalyst. France's proposed fiscal budget estimates a 5% deficit and calls for a mix of spending cuts and new taxes.
The DAX index increased by 0.1% to 19,229.95; the CAC-40 index rose by 0.1% to 7,545.45; and the FTSE 100 index declined by 0.2% to 8,224.35.
For the 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 higher to 2.29%, French bonds inched higher to 3.07%, the UK gilts edged up to 4.25%, and Italian bonds increased to 3.56%.
Stellantis NV declined 3.7% to €11.73, and the Italian vehicle maker said chief executive Carlos Tavares retired in 2026 after the company announced a management shakeup.
The automotive global conglomerate also announced new leaders for its Maserati, Alfa Romeo, and Jeep brands.
Doug Ostermann will replace Natalie Knight as the new chief financial officer as the company struggles amid falling sales in China and intensifying competition in Europe.
Late September, the company's management lowered its current year annual profit outlook and added its operating cash flow is going to be negative.
Porsche Automobil SE edged down 0.1% to €39.84 after the German sports vehicle maker reported weak vehicle sales in the nine months of fiscal 2024.
BP plc declined 0.1% to 410.60 pence, and the energy giant confirmed in its trading statement that weak refining margins and volatile trading are going to negatively impact its earnings.
Hays plc rose 0.8% to 86.45 pence despite the recruiting company reporting a sequential decline in its first-half operating profit.
Zalando SE increased 0.1% to €29.84 after the German online retailer lifted its fiscal year outlook.
European Markets Trim Weekly Gains, France's Fiscal 2025 Budget Targets 5% Deficit
Bridgette Randall
11 Oct, 2024
London
European markets lacked direction in Friday's trading as investors reviewed the region's economic data and looked forward to China's finance minister's press briefing on Saturday.
Benchmark indexes in Paris, Milan, Frankfurt, and London struggled to advance, and the euro edged slightly lower.
France's prime minister, Michele Barnier, proposed a fiscal budge with the aim of lowering the budget deficit to 5% of gross domestic product, still higher than the 3% limit set by the European Union.
The proposed budget includes spending cuts of Є41.3 billion and tax increases of Є19.3 billion targeting ultra-wealthy individuals and large businesses.
Budget is expected to face tough resistance in the fragmented legislative assembly, but France has little choice and must find ways to bring down its large and growing budget deficit if it wants to avoid restrictions from the European Union.
In other economic news, Germany's consumer price inflation slowed to 1.6% in September from 1.9% in August. the Federal Statistical Office confirmed in a report today.
The preliminary estimate was released on September 30.
Europe Indexes and Yields
The DAX index increased by 0.1% to 19,229.95; the CAC-40 index rose by 0.1% to 7,545.45; and the FTSE 100 index declined by 0.2% to 8,224.35.
For the 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 higher to 2.29%, French bonds inched higher to 3.07%, the UK gilts edged up to 4.25%, and Italian bonds increased to 3.56%.
The euro edged lower to $1.09; the British pound inched higher to $1.30; and the U.S. dollar strengthened to 85.79 Swiss cents.
Brent crude decreased $0.67 to $78.72 a barrel, and the Dutch TTF natural gas rose by €0.12 to €40.21 per MWh.
Europe Stock Movers
Stellantis NV declined 3.7% to €11.73, and the Italian vehicle maker said chief executive Carlos Tavares retired in 2026 after the company announced a management shakeup.
The automotive global conglomerate also announced new leaders for its Maserati, Alfa Romeo, and Jeep brands.
Doug Ostermann will replace Natalie Knight as the new chief financial officer as the company struggles amid falling sales in China and intensifying competition in Europe.
Late September, the company's management lowered its current year annual profit outlook and added its operating cash flow is going to be negative.
Porsche Automobil SE edged down 0.1% to €39.84 after the German sports vehicle maker reported weak vehicle sales in the nine months of fiscal 2024.
BP plc declined 0.1% to 410.60 pence, and the energy giant confirmed in its trading statement that weak refining margins and volatile trading are going to negatively impact its earnings.
Hays plc rose 0.8% to 86.45 pence despite the recruiting company reporting a sequential decline in its first-half operating profit.
Zalando SE increased 0.1% to €29.84 after the German online retailer lifted its fiscal year outlook.
Japan's Indexes Extend 3-day Rally, Seven & I and Fast Retailing In Focus After Earnings
Akira Ito
11 Oct, 2024
Tokyo
Market indexes in Japan advanced for the third consecutive session and traded at two-week highs.
The Nikkei 225 stock average gained 0.5% and the broader Topix index edged lower 0.1%.
The yen drifted lower to 148.68 against the U.S. dollar as investors lowered expectations of another rate increase in the imminent future.
Financial markets in Tokyo traded volatile over the last four weeks amid rising geopolitical tensions, and a rebound in crude oil prices also stoked fears of resurgent inflation.
Volatility in the yen has also overshadowed market sentiment in stocks, with the yen dropping as low as 161.68 in early July but managed to recover to the 140 mark.
The Bank of Japan commenced its rate increase cycle in March, followed by the second rate increase in July, and signaled additional rate hikes.
However, the central bank policymakers have stressed several times that future rate increases are likely but not imminent, and the central bank needs time to review the impact of recent rate increases on the economy.
Japan Stock Movers
The Nikkei 225 stock average increased 0.5% to 39,582.32, and the broader Topix index declined 0.1% to 2,708.65.
For the week, the Nikkei 225 edged higher by 0.5% and the Topix index decreased by 1%.
Fast Retailing surged 5.5% to ¥54,220.0 after the parent company of Uniqlo reported better-than-expected earnings.
Revenue in the fiscal year ending in August increased 12.2% to 3.1 trillion yen, net profit rose 25% to 393.6 billion yen, and diluted earnings per share rose to 1,210.81 yen from 964.48 yen a year ago.
For the full year, the company increased its dividends to 122.7 billion yen from 88.93 billion yen, an increase in payout ratio to 33.3% from 30% a year ago.
Revenue in Japan increased 4.7% to 932.2 billion yen, and operating profit soared 32% to 155.8 billion yen.
Warmer weather in the fiscal second half and the surge in tourism supported the rise in sales at domestic stores.
Same store sales in the first half contracted 3.4% as a result of the warm winter, but sales rebounded in the second half to 11.7% as the company took advantage of longer summer weather temperatures.
Revenue at international stores increased 19.1% to 1.72 trillion yen, and operating profit soared 24.9% to 283.4 billion yen.
In fiscal year 2025, the company expects consolidated revenue to increase 9.5% to 3.4 trillion yen, operating profit to rise 5.8% to 530 billion yen, profit before income taxes to rise 5% to 585.0 billion, and profit attributable to owners of the parent to rise 3.5% to 385.0 billion yen.
Seven & I declined 1.4% to ¥2,292.0, and the parent company of Seven 11 announced restructuring to lift its stock price.
Revenue for the six-month period ending August increased 8.8% to 6.03 trillion yen, net income declined 26.3% to 167.2 billion yen, and diluted earnings per share fell to 20.08 yen from 30.28 yen.
The company also reiterated its plans to lower its total annual dividend to 20 yen per share from 113 yen in the previous year.
The company estimated full-year revenue in the fiscal year 2025 to increase 3.5% to 11.87 trillion yen, net income attributable to shareholders to fall 27.4% to 163 billion yen, and diluted earnings per share of 62.74 yen.
Sales at domestic stores declined to 462.4 billion yen compared to 470.7 billion yen as consumers battled rising prices.
China Investors Turn Cautious Ahead of Finance Minister's Saturday Briefing
Li Chen
11 Oct, 2024
Hong Kong
Market sentiment was cautious ahead of the finance minister's conference on Saturday as investors awaited more clarity on stimulus measures.
The CSI 300 index decreased 2.4%, setting the stage for the first weekly loss in four weeks.
Financial markets in Hong Kong are closed for a public holiday and will resume trading on Monday.
Stock market indexes in mainland China and Hong Kong have soared over the last four weeks after the People's Bank of China announced monetary measures to revive investor confidence.
Moreover, three weeks ago, top political leaders signaled the release of additional fiscal measures to revive consumption and support the moribund residential property market.
However, investors have been let down in the past by politicians with piecemeal measures that do little to revive consumer confidence.
Chinese politicians and regulators have a history of announcing bold reforms and wild projections, which have not been followed up with real reforms.
Politicians are struggling to deliver deep fiscal measures that will require financial commitments of between $2 trillion and $3 trillion and approval from the National People's Congress.
Investors are hoping that Finance Minister Lao Fan at Saturday's conference will announce significant measures to pump liquidity into the real economy, including bond sales and measures to revive consumption.
China Stock Movers
The CSI 300 index declined 2.4% to 3,905.40, and the SSE Composite index decreased 1.9%.
Contemporary Amperex Technology Co. Ltd. declined 5.4% to ¥244.07, and Semiconductor Manufacturing International Corp. dropped 4.5% to ¥71.37.
China Vanke declined 1.4% to ¥9.25, China Shenhua Energy fell 1.5% to ¥42.32, and Sinopec Shanghai Petrochemical fell 0.7% to ¥2.89.
India Movers: NBCC, Ola Electric, Puravankara, TCS, Tata Elxsi
Arun Goswami
11 Oct, 2024
Mumbai
India indexes extended losses for the second week in a row, bond yields edged lower, and the Indian rupee hovered near record low.
The Sensex index decreased by 0.1% to 81,597.77, and the Nifty index rose by 0.05% to 25,000.82.
On the Mumbai stock exchange, 104 stocks traded at their 52-week highs, and 17 stocks traded at their 52-week lows.
NBCC India increased 0.3% to ₹117.33, and the company's subsidiary won a ₹1,000 crore contract to develop the campus of Gondwana University in Maharashtra.
Ola Electric Mobility increased 0.2% to ₹90.97, and the company said it is cooperating with the Automotive Research Association's investigation about product defects and delivery delays.
Puravankara Ltd. increased 0.5% to ₹388.45, and the residential property developer said booking in the September quarter dropped 17% from a year ago to ₹1,331 crore.
Tata Consultancy Services declined 0.3% to ₹4,199.30 after the company reported mixed quarterly results.
Revenue in the September quarter rose 7.6% from a year ago to ₹64,259 crore, and net income advanced 5% to ₹11,909 crore.
Net income from the previous quarter was 1.1%, and total contract value for new orders plunged 23% from a year ago to $8.6 billion.
Tata Elxsi Ltd. increased 1.1% to ₹7,848.60 after the engineering and technology company reported higher sales and earnings in the September quarter.
Revenue increased 8.3% from a year ago to ₹955 crore, and net income advanced 14.7% to ₹229 crore.
Higher Crude Oil Prices and Loose Monetary Policy May Support Higher Inflation In Months Ahead
Alexander Garcia
10 Oct, 2024
Miami
Stocks on Wall Street struggled after consumer price inflation was ahead of market expectations and initial jobless claims soared.
The S&P 500 index edged down 0.2% and the Nasdaq Composite rose 0.1% on the worry that the Federal Reserve may slow down its rate-cut cycle following the stubborn inflation report.
Despite the Fed's eleven rate hikes over 2022 and 2023, inflation has not dropped near the target rate of 2%, indicating rates are still not restrictive enough.
Overall inflation has been moderating since June 2022, but that decline is largely reflecting the fall in energy prices, which are not impacted by the Fed's policy decisions.
Moreover, inflation is likely to rebound from November when comparison with the previous year becomes tougher because of the lower base.
Despite the Fed's tough talk on inflation, core inflation is still above the Fed's target rate and may swing higher because most services are still passing higher prices to consumers.
In other words, interest rates have never been restrictive enough for inflation forces to be tamed, since the onset of the COVID-19 in 2020.
U.S. CPI Declines but Core CPI Rebounds In September
Consumer price inflation slowed to 2.4% in September, the sixth consecutive month of decline, the U.S. Bureau of Labor Statistics reported Thursday.
Overall inflation dropped to the lowest level since February 2021.
The decline in inflation largely reflected the weakness in energy prices, and energy costs fell at a faster pace of 6.8% compared to 4.0% in the previous month.
The cost of shelter rose at a slower pace of 4.9% compared to 5.2% in the previous month.
However, food inflation accelerated to 2.3% from 2.1%, and transportation jumped to 8.5% from 7.9%.
Core inflation edged up to 3.3% in September after staying at a three-year low of 3.2% in the previous two consecutive months.
Hurricane and Michigan Layoffs Drive Weekly Jobless Claims Higher
In other economic news, initial jobless claims rose by 33,000 to 258,000 for the week ending October 5, the Department of Labor reported Thursday.
Initial jobless claims increase was driven by the increase in claims in Florida by 3,842 and North Carolina by 8,534 following the widespread damages caused by Hurricane Helena.
Moreover, large-scale layoffs in Michigan, driven by 10,667 job losses in manufacturing and management over the past two weeks, also contributed to the increase in weekly claims.
Continuing claims, which lag by one week, rose 42,000 to 1.861 million.
U.S. Indexes and Treasury Yields
The S&P 500 index decreased 0.1% to 5,784.13, the Nasdaq Composite rose 0.1% to 18,302.15, and the Russell 2000 index declined 0.9% to 2,182.11.
The yield on 2-year Treasury notes edged lower to 3.98%, 10-year Treasury notes inched up to 4.07%, and 30-year Treasury bonds inched higher to 4.36%.
WTI crude oil increased $2.79 to $76.04 a barrel, and natural gas prices edged down 3 cents to $2.62 a thermal unit.
Gold fell by $16.10 to $2,624.16 an ounce, and silver increased by $0.57 to $31.07.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 102.90.
U.S. Stock Movers
Delta Air Lines declined 0.2% to $50.72 after the company's forward-looking outlook disappointed some investors.
Revenue in the third quarter increased 1% to $15.7 billion from $15.5 billion, net income increased 15% to $1.3 billion from $1.1 billion, and diluted earnings per share rose to $1.97 from $1.92 a year ago.
The airline said the direct revenue impact caused by the CrowdStrike-caused outage on August 8 was about $380 million, and the fuel expense was $50 million lower because of 7,000 flight cancellations over the five-day period.
Hurricane Milton exited from the Florida East Coast, leaving behind a wave of destruction, flash flooding, and power outages for at least 3 million residents.
Universal Insurance, which primarily provides catastrophic insurance in Florida, rose 10.9% to $10.82.
Other property insurance companies with significant Florida exposures rebounded after falling in the previous three consecutive sessions.
Allstate Corp. increased 1.2% to $187.26, Fidelis Insurance jumped 2.2% to $17.90, and Progressive Corp. gained 0.9% to $252.82.
Generac Holdings declined 2.8% to $167.36, and the generator provider had run up as much as 11% over the last three days as Hurricane Milton had intensified.
European Markets Traded Around Flatline
European markets lacked momentum on Thursday as investors reassessed the future rate path amid elevated geopolitical tensions.
Benchmark indexes in London, Paris, and Frankfurt struggled to rise above the flatline as investors worried that weak economic growth in the Euro Area could crimp corporate earnings in the second half.
On the economic front, investors reviewed Germany's retail sales, Swedish GDP growth, and Norway's inflation data.
Germany's Retail Sales Growth Accelerated In August
Germany's retail sales in August accelerated to a monthly increase of 1.6% in August from 1.5% in July, the Federal Statistical Office, or Destatis, reported today.
Monthly retail sales rose by the same amount in both real and nominal terms, adjusted for calendar and seasonal effects.
Food sales increased 1.9% and nonfood sales rose 1.1%, and e-commerce and mail order sales advanced 8.9%.
From a year ago, retail sales rose 2.1% after adjusting for inflation and increased 3.1% in nominal terms.
The statistical office resumed reporting retail sales after suspending in June due to technology issues encountered during a conversion process while meeting new EU data requirements.
Retail sales rebounded after falling monthly 1.4% in May and 1.1% in June.
Norway's CPI Accelerated in September
Norway's consumer price inflation increased 3% in September from 2.6% in August and rebounded to the highest pace since May, Statistics Norway reported Thursday.
Consumer price inflation, adjusted for tax charges and energy prices, increased at a slower pace of 3.1% in September from 3.2% in August, dropping to the lowest level since August 2022.
Sweden's GDP Expanded at the Fastest Pace in 13 months
Sweden's GDP growth in August rebounded to 1.1% from the downwardly revised 0.9% decline in August, Statistics Sweden reported Thursday.
The monthly rate of increase in August was the strongest in 13 months, and faster household consumption and an increase in service sector activities were the key drivers.
Europe Indexes and Yields
The DAX index increased by 0.01% to 19,210.19; the CAC-40 index fell by 0.2% to 7,541.59; and the FTSE 100 index declined by 0.1% to 8,237.73.
The yield on 10-year German bonds edged higher to 2.27%, French bonds inched higher to 3.04%, the UK gilts edged up to 4.24%, and Italian bonds increased to 3.57%.
The euro edged lower to $1.09; the British pound inched higher to $1.31; and the U.S. dollar strengthened to 85.85 Swiss cents.
Brent crude decreased $2.95 to $79.55 a barrel, and the Dutch TTF natural gas rose by €1.55 to €40.06 per MWh.
Europe Stock Movers
GSK plc increased 4.5% to 1,525.0 pence after the British drug maker agreed to settle 80,000 lawsuits in state courts in the U.S. related to Zantac.
SCOR SE increased 3.2% to €20.60, and the French reinsurance company initiated a discussion to sell its stake in the ninth largest educational publishing company.
SCOR entered into exclusive negotiations with Huyghens de Participations, the holding company of the Albin Michel group, for the sale of its stake in the capital of Humensis.
Deutsche Telekom increased 1.5% to €27.16 after the German telephone company said it plans a stock buyback program in 2025.
BMW decreased 0.2% to €76.60 after the German luxury automobile company reported sales in the third quarter declined, weighed down by the weakness in China.
Unit sales across all models declined 13% from a year ago in the quarter, driven by a 30% plunge in China.
Sales across battery-operated and hybrid vehicles stalled at 0.1% after rising at 40% in the corresponding period in 2023.
Suedzucker AG declined 0.5% to €11.12 after the German company reported a decline in operating results in the second quarter amid high costs and low prices.
Yen Drops to Six-Week Low, Producer Price Inflation Accelerates In September
Tech stocks powered the market rebound in Tokyo in Thursday's trading, tracking gains in overnight trading in New York.
The Nikkei 225 stock average gained 0.3%, and the broader Topix index advanced 0.2%.
The yen continued its downward journey to 149.16 against the U.S. dollar and fell to a six-week low as investors lowered their expectations of another rate increase in the near future.
Producer price inflation in Japan accelerated to 2.8% in September from 2.6% in August, the Bank of Japan reported Thursday.
The measure of wholesale price inflation was positive for the 43rd month in a row, due mainly to higher prices of basic items, including food staples and rice.
Rising costs of transportation and fertilizers contributed to inflationary pressures.
Stock market indexes in Tokyo have been volatile amid rate path uncertainties, elevated geopolitical tensions in the Middle East, and worries about the economic slowdown in China and the U.S.
The People's Bank of China launched a new lending program worth 500 billion yuan, or $70 billion, that will provide liquidity to qualified brokerage houses, insurance companies, and asset management companies to purchase stocks.
Investors are hoping that the press conference scheduled by China's finance minister on Saturday may provide clarity on potential broad fiscal reforms.
Investors are also gearing up for the start of the earnings season starting Friday, and retail stocks were in focus ahead of the release of their quarterly results.
Japan Stock Movers
The Nikkei 225 Stock Average increased 0.3% to 39,380.89, and the broader Topix index added 0.2% to 2,712.67.
Mitsubishi UFJ Financial increased 1.6% to ¥1,525.50, Sumitomo Mitsui Financial advanced 1.3% to ¥3,121.0, and Mizuho Financial gained 0.6% to ¥3,018.0.
Seven & I decreased 0.4% to ¥2,325.0, Fast Retailing Company increased 1.3% to ¥51,360.0, and Isetan Mitsukoshi rose 0.9% to ¥2,355.0.
Toyota Motor advanced 0.7% to ¥2,581.0, Honda Motor increased 1.4% to ¥1,574.0, and Nissan Motor edged higher 1% to ¥399.80.
Marubeni Corp. added 1% to ¥2,438.50, Itochu Corp gained 0.7% to ¥7,769.0, and Mitsui & Company added 0.7% to ¥3,256.0.
China Indexes Advanced 3% After PBoC Launched $70 B Swap Facility
Financial markets in mainland China and Hong Kong rebounded after the central bank launched its lending plan to facilitate liquidity in the stock market.
The Hang Seng index jumped nearly 4%, and the mainland-focused CSI 300 index advanced as much as 3%.
The People's Bank of China launched its 500 billion yuan swap plan for "qualified brokerage firms, life insurance, and asset management companies to exchange their bond holdings for Treasury bonds and bills," according to the statement released by the central bank.
The move is part of the 800 billion yuan plan announced by the central bank a few weeks ago to stabilize financial markets.
The central bank also plans to facilitate stock buyback plans and stake increases by listed companies and major shareholders.
Investors are also looking forward to a press conference by Finance Minister Lan Foan on Saturday, and market participants are anticipating the release of new fiscal measures.
China's stock markets have been volatile over the last four weeks after the People's Bank of China unexpectedly announced monetary measures to increase liquidity in the financial system.
However, China's top leadership signaled the possibilities of more fiscal measures at a hurriedly scheduled meeting ahead of the start of the Golden Week holiday; however, those expectations have not been met so far.
The world's second-largest economy is struggling to meet the 5% annual GDP growth target rate set by the top leadership, and many economists have lowered their 2024 growth estimate to 4.6%.
Financial markets are expected to remain volatile until the government implements measures to revive the residential property market and boost consumer spending.
Financial markets in Hong Kong are close on Friday for a holiday, and the Hang Seng index decreased nearly 3% in the shortened week of trading.
China Stock Movers
The Hang Seng index increased 3.7% to 21,400.54, and the CSI 300 index advanced 2.4% to 4,051.56.
Longfor Group increased 7% to HK $13.42, China Vanke increased 7.5% to HK $7.36, and China Resources Land advanced 2.9% to HK $25.90.
Sun Hung Kai Properties decreased 0.8% to HK $84.95, and New World Development added 1.3% to HK $8.63.
Life insurance companies traded higher after China's central bank launched swap facilities that could provide additional liquidity to purchase more stocks.
China Life increased 5% to HK $16.50, and Ping An Insurance advanced 6% to HK $51.0.
Haitong Securities and Goutai Junan Securities jumped the daily limit of 10% in mainland trading after both companies announced a detailed merger plan.
Both brokerages traded for the first time after being suspended from trading on September 5.
In Hong Kong, Haitong Securities soared 97% to HK $7.13.
U.S. Movers: Delta Air Lines, Generac, Progressive, Universal Insurance
Scott Peters
10 Oct, 2024
New York City
Delta Air Lines declined 0.2% to $50.72 after the company's forward-looking outlook disappointed some investors.
Revenue in the third quarter increased 1% to $15.7 billion from $15.5 billion, net income increased 15% to $1.3 billion from $1.1 billion, and diluted earnings per share rose to $1.97 from $1.92 a year ago.
The airline said the direct revenue impact caused by the CrowdStrike-caused outage on August 8 was about $380 million, and the fuel expense was $50 million lower because of 7,000 flight cancellations over the five-day period.
Hurricane Milton exited from the Florida East Coast, leaving behind a wave of destruction, flash flooding, and power outages for at least 3 million residents.
Universal Insurance, which primarily provides catastrophic insurance in Florida, rose 10.9% to $10.82.
Other property insurance companies with significant Florida exposures rebounded after falling in the previous three consecutive sessions.
Allstate Corp. increased 1.2% to $187.26, Fidelis Insurance jumped 2.2% to $17.90, and Progressive Corp. gained 0.9% to $252.82.
Generac Holdings declined 2.8% to $167.36, and the generator provider had run up as much as 11% over the last three days as Hurricane Milton had intensified.
Stubborn Inflation and Rising Jobless Claims Keep U.S. Market Indexes In Check
Barry Adams
10 Oct, 2024
New York City
Stocks on Wall Street headed lower after consumer price inflation was ahead of market expectations and initial jobless claims soared.
The S&P 500 index edged down 0.2% and the Nasdaq Composite declined 0.4% on the worry that the Federal Reserve may slow down its rate-cut cycle following the stubborn inflation report.
Despite the Fed's eleven rate hikes over 2022 and 2023, inflation has not dropped near the target rate of 2%, indicating rates are still not restrictive enough.
Overall inflation has been moderating since June 2022, but that decline is largely reflecting the fall in energy prices, which are not impacted by the Fed's policy decisions.
CPI and Core CPI Diverged In September
Consumer price inflation slowed to 2.4% in September, the sixth consecutive month of decline, the U.S. Bureau of Labor Statistics reported Thursday.
Overall inflation dropped to the lowest level since February 2021.
The decline in inflation largely reflected the weakness in energy prices, and energy costs fell at a faster pace of 6.8% compared to 4.0% in the previous month.
The cost of shelter rose at a slower pace of 4.9% compared to 5.2% in the previous month.
However, food inflation accelerated to 2.3% from 2.1%, and transportation jumped to 8.5% from 7.9%.
Core inflation edged up to 3.3% in September after staying at a three-year low of 3.2% in the previous two consecutive months.
Hurricane and Michigan Layoffs Drive Weekly Jobless Claims Higher
In other economic news, initial jobless claims rose by 33,000 to 258,000 for the week ending October 5, the Department of Labor reported Thursday.
Initial jobless claims increase was driven by the increase in claims in Florida by 3,842 and North Carolina by 8,534 following the widespread damages caused by Hurricane Helena.
Moreover, large-scale layoffs in Michigan, driven by 10,667 job losses in manufacturing and management over the past two weeks, also contributed to the increase in weekly claims.
Continuing claims, which lag by one week, rose 42,000 to 1.861 million.
U.S. Indexes and Treasury Yields
The S&P 500 index decreased 0.2% to 5,779.49, the Nasdaq Composite fell 0.4% to 18,213.09, and the Russell 2000 index declined 1.1% to 2,174.50.
The yield on 2-year Treasury notes edged lower to 3.98%, 10-year Treasury notes inched up to 4.07%, and 30-year Treasury bonds inched higher to 4.36%.
WTI crude oil increased $0.90 to $74.14 a barrel, and natural gas prices edged down 3 cents to $2.62 a thermal unit.
Gold fell by $10.40 to $2,611.10 an ounce, and silver increased by $0.14 to $30.64.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 102.90.
U.S. Stock Movers
Delta Air Lines declined 0.2% to $50.72 after the company's forward-looking outlook disappointed some investors.
Revenue in the third quarter increased 1% to $15.7 billion from $15.5 billion, net income increased 15% to $1.3 billion from $1.1 billion, and diluted earnings per share rose to $1.97 from $1.92 a year ago.
The airline said the direct revenue impact caused by the CrowdStrike-caused outage on August 8 was about $380 million, and the fuel expense was $50 million lower because of 7,000 flight cancellations over the five-day period.
Hurricane Milton exited from the Florida East Coast, leaving behind a wave of destruction, flash flooding, and power outages for at least 3 million residents.
Universal Insurance, which primarily provides catastrophic insurance in Florida, rose 10.9% to $10.82.
Other property insurance companies with significant Florida exposures rebounded after falling in the previous three consecutive sessions.
Allstate Corp. increased 1.2% to $187.26, Fidelis Insurance jumped 2.2% to $17.90, and Progressive Corp. gained 0.9% to $252.82.
Generac Holdings declined 2.8% to $167.36, and the generator provider had run up as much as 11% over the last three days as Hurricane Milton had intensified.
Europe Movers: BMW, Deutsche Telekom, GSK, SCOR, Suedzucker
Inga Muller
10 Oct, 2024
Frankfurt
Germany's nominal and real retail sales growth accelerated in August, driven by an increase in food and nonfood sales.
Norway's consumer price inflation accelerated in September to 3.2%, the highest pace since May.
The DAX index increased by 0.01% to 19,255.54; the CAC-40 index fell by 0.2% to 7,545.81; and the FTSE 100 index declined by 0.3% to 8,219.22.
The yield on 10-year German bonds edged higher to 2.27%, French bonds inched higher to 3.04%, the UK gilts edged up to 4.24%, and Italian bonds increased to 3.57%.
GSK plc increased 4.5% to 1,525.0 pence after the British drug maker agreed to settle 80,000 lawsuits in state courts in the U.S. related to Zantac.
SCOR SE increased 3.2% to €20.60, and the French reinsurance company initiated a discussion to sell its stake in the ninth largest educational publishing company.
SCOR entered into exclusive negotiations with Huyghens de Participations, the holding company of the Albin Michel group, for the sale of its stake in the capital of Humensis.
Deutsche Telekom increased 1.5% to €27.16 after the German telephone company said it plans a stock buyback program in 2025.
BMW decreased 0.2% to €76.60 after the German luxury automobile company reported sales in the third quarter declined, weighed down by the weakness in China.
Unit sales across all models declined 13% from a year ago in the quarter, driven by a 30% plunge in China.
Sales across battery-operated and hybrid vehicles stalled at 0.1% after rising at 40% in the corresponding period in 2023.
Suedzucker AG declined 0.5% to €11.12 after the German company reported a decline in operating results in the second quarter amid high costs and low prices.
Germany's Retail Sales Growth Accelerated In August, Norway's Consumer Inflation Rebounded to 3%
Bridgette Randall
10 Oct, 2024
London
European markets lacked momentum on Thursday as investors reassessed the future rate path amid elevated geopolitical tensions.
Benchmark indexes in London, Paris, and Frankfurt struggled to rise above the flatline as investors worried that weak economic growth in the Euro Area could crimp corporate earnings in the second half.
On the economic front, investors reviewed Germany's retail sales, Swedish GDP growth, and Norway's inflation data.
Germany's Retail Sales Growth Accelerated In August
Germany's retail sales in August accelerated to a monthly increase of 1.6% from 1.5% in July, the Federal Statistical Office, or Destatis, reported today.
Monthly retail sales rose by the same amount in both real and nominal terms, adjusted for calendar and seasonal effects.
Food sales increased 1.9% and nonfood sales rose 1.1%, and e-commerce and mail order sales advanced 8.9%.
From a year ago, retail sales rose 2.1% after adjusting for inflation and increased 3.1% in nominal terms.
The statistical office resumed reporting retail sales after suspending in June due to technology issues encountered during a conversion process while meeting new EU data requirements.
Retail sales rebounded after falling monthly 1.4% in May and 1.1% in June.
Norway's CPI Accelerated in September
Norway's consumer price inflation increased 3% in September from 2.6% in August and rebounded to the highest pace since May, Statistics Norway reported Thursday.
Consumer price inflation, adjusted for tax charges and energy prices, increased at a slower pace of 3.1% in September from 3.2% in August, dropping to the lowest level since August 2022.
Sweden's GDP Expanded at the Fastest Pace in 13 months
Sweden's GDP growth in August rebounded to 1.1% from the downwardly revised 0.9% decline in August, Statistics Sweden reported Thursday.
The monthly rate of increase in August was the strongest in 13 months, and faster household consumption and an increase in service sector activities were the key drivers.
Europe Indexes and Yields
The DAX index increased by 0.01% to 19,255.54; the CAC-40 index fell by 0.2% to 7,545.81; and the FTSE 100 index declined by 0.3% to 8,219.22.
The yield on 10-year German bonds edged higher to 2.27%, French bonds inched higher to 3.04%, the UK gilts edged up to 4.24%, and Italian bonds increased to 3.57%.
The euro edged lower to $1.09; the British pound inched higher to $1.31; and the U.S. dollar strengthened to 85.85 Swiss cents.
Brent crude decreased $1.02 to $77.58 a barrel, and the Dutch TTF natural gas rose by €0.87 to €39.35 per MWh.
Europe Stock Movers
GSK plc increased 4.5% to 1,525.0 pence after the British drug maker agreed to settle 80,000 lawsuits in state courts in the U.S. related to Zantac.
SCOR SE increased 3.2% to €20.60, and the French reinsurance company initiated a discussion to sell its stake in the ninth largest educational publishing company.
SCOR entered into exclusive negotiations with Huyghens de Participations, the holding company of the Albin Michel group, for the sale of its stake in the capital of Humensis.
Deutsche Telekom increased 1.5% to €27.16 after the German telephone company said it plans a stock buyback program in 2025.
BMW decreased 0.2% to €76.60 after the German luxury automobile company reported sales in the third quarter declined, weighed down by the weakness in China.
Unit sales across all models declined 13% from a year ago in the quarter, driven by a 30% plunge in China.
Sales across battery-operated and hybrid vehicles stalled at 0.1% after rising at 40% in the corresponding period in 2023.
Suedzucker AG declined 0.5% to €11.12 after the German company reported a decline in operating results in the second quarter amid high costs and low prices.
Yen Drops to Six-Week Low, Producer Price Inflation Accelerates In September
Akira Ito
10 Oct, 2024
Tokyo
Tech stocks powered the market rebound in Tokyo in Thursday's trading, tracking gains in overnight trading in New York.
The Nikkei 225 stock average gained 0.3%, and the broader Topix index advanced 0.2%.
The yen continued its downward journey to 149.16 against the U.S. dollar and fell to a six-week low as investors lowered their expectations of another rate increase in the near future.
Producer price inflation in Japan accelerated to 2.8% in September from 2.6% in August, the Bank of Japan reported Thursday.
The measure of wholesale price inflation was positive for the 43rd month in a row, due mainly to higher prices of basic items, including food staples and rice.
Rising costs of transportation and fertilizers contributed to inflationary pressures.
Stock market indexes in Tokyo have been volatile amid rate path uncertainties, elevated geopolitical tensions in the Middle East, and worries about the economic slowdown in China and the U.S.
The People's Bank of China launched a new lending program worth 500 billion yuan, or $70 billion, that will provide liquidity to qualified brokerage houses, insurance companies, and asset management companies to purchase stocks.
Investors are hoping that the press conference scheduled by China's finance minister on Saturday may provide clarity on potential broad fiscal reforms.
Investors are also gearing up for the start of the earnings season starting Friday, and retail stocks were in focus ahead of the release of their quarterly results.
Japan Stock Movers
The Nikkei 225 Stock Average increased 0.3% to 39,380.89, and the broader Topix index added 0.2% to 2,712.67.
Mitsubishi UFJ Financial increased 1.6% to ¥1,525.50, Sumitomo Mitsui Financial advanced 1.3% to ¥3,121.0, and Mizuho Financial gained 0.6% to ¥3,018.0.
Seven & I decreased 0.4% to ¥2,325.0, Fast Retailing Company increased 1.3% to ¥51,360.0, and Isetan Mitsukoshi rose 0.9% to ¥2,355.0.
Toyota Motor advanced 0.7% to ¥2,581.0, Honda Motor increased 1.4% to ¥1,574.0, and Nissan Motor edged higher 1% to ¥399.80.
Marubeni Corp. added 1% to ¥2,438.50, Itochu Corp gained 0.7% to ¥7,769.0, and Mitsui & Company added 0.7% to ¥3,256.0.
China Indexes Advanced 3% After PBoC Launched $70 B Swap Facility
Li Chen
10 Oct, 2024
Hong Kong
Financial markets in mainland China and Hong Kong rebounded after the central bank launched its lending plan to facilitate liquidity in the stock market.
The Hang Seng index jumped nearly 4%, and the mainland-focused CSI 300 index advanced as much as 3%.
The People's Bank of China launched its 500 billion yuan swap plan for "qualified brokerage firms, life insurance, and asset management companies to exchange their bond holdings for Treasury bonds and bills," according to the statement released by the central bank.
The move is part of the 800 billion yuan plan announced by the central bank a few weeks ago to stabilize financial markets.
The central bank also plans to facilitate stock buyback plans and stake increases by listed companies and major shareholders.
Investors are also looking forward to a press conference by Finance Minister Lan Foan on Saturday, and market participants are anticipating the release of new fiscal measures.
China's stock markets have been volatile over the last four weeks after the People's Bank of China unexpectedly announced monetary measures to increase liquidity in the financial system.
However, China's top leadership signaled the possibilities of more fiscal measures at a hurriedly scheduled meeting ahead of the start of the Golden Week holiday; however, those expectations have not been met so far.
The world's second-largest economy is struggling to meet the 5% annual GDP growth target rate set by the top leadership, and many economists have lowered their 2024 growth estimate to 4.6%.
Financial markets are expected to remain volatile until the government implements measures to revive the residential property market and boost consumer spending.
Financial markets in Hong Kong are close on Friday for a holiday, and the Hang Seng index decreased nearly 3% in the shortened week of trading.
China Stock Movers
The Hang Seng index increased 3.7% to 21,400.54, and the CSI 300 index advanced 2.4% to 4,051.56.
Longfor Group increased 7% to HK $13.42, China Vanke increased 7.5% to HK $7.36, and China Resources Land advanced 2.9% to HK $25.90.
Sun Hung Kai Properties decreased 0.8% to HK $84.95, and New World Development added 1.3% to HK $8.63.
Life insurance companies traded higher after China's central bank launched swap facilities that could provide additional liquidity to purchase more stocks.
China Life increased 5% to HK $16.50, and Ping An Insurance advanced 6% to HK $51.0.
Haitong Securities and Goutai Junan Securities jumped the daily limit of 10% in mainland trading after both companies announced a detailed merger plan.
Both brokerages traded for the first time after being suspended from trading on September 5.
In Hong Kong, Haitong Securities soared 97% to HK $7.13.
India Movers: Adani Enterprises, HDFC Life, ICICI Bank, JSW Infra, Tata Group, Vedanta
Arun Goswami
10 Oct, 2024
Mumbai
Stocks in Mumbai extended their weekly gain, and investors awaited the start of the earnings season with the latest quarterly results from leading tech services providers.
The Sensex index increased by 0.5% to 81,889.24, and the Nifty index rose by 0.5% to 25,096.80.
On the Mumbai stock exchange, 77 stocks traded at their 52-week highs, and 10 stocks traded at their 52-week lows.
Adani Enterprises decreased 2.6% to ₹3,073.40, and the company launched an institutional offering priced at ₹3,117 per share to raise as much as ₹16,600 crore.
The company plans to use the proceeds to finance multiple projects, including several airport expansions.
Vedanta rose 0.3% to ₹497.25, and the company has pre-paid $869 million to bond holders for notes maturing in 2027 as a part of its plan to save future interest costs.
JSW Infrastructure decreased 0.1% to ₹319.90, and the company received a preliminary interest from the Maharashtra Maritime Board to develop a multi-purpose port in Palghar district at a cost of about 4,260 crore.
ICICI Securities declined 3.3% to ₹839.55, and the National Company Law Tribunal approved the company's merger plan with its parent company, ICICI Bank.
Shareholders of the securities company receive 67 shares of ICICI Bank for every 100 shares held.
Tata Group stocks were in focus after former chairman of Tata Sons, Ratan Tata, passed away at the age of 86.
Tata Consultancy Services increased 0.7% to ₹4,283.50, Tata Chemicals increased 5.3% to ₹1,163.30, and Tata Motors advanced 0.2% to ₹940.70.
HDFC Life Insurance Company decreased 0.03% to ₹717.05, and the company said plans to raise ₹1,000 crore through the sale of unsecured non-convertible bond offerings.
IDFC Ltd declined 1.% to ₹108.78 and IDFC First Bank increased 1.2% after the bank agreed to merge with IDFC.
UBS Group, the Swiss financial services company, agreed to acquire a 0.5% stake for ₹88 crore in IDFC on the heels of the merger announcement.
S&P 500 and Dow Jones Setting New Highs as Investors Overlooked Geopolitical Tensions
Alexander Garcia
09 Oct, 2024
Miami
Stocks on Wall Street overcame morning doldrums to advance on Wednesday as investors reviewed the Fed's policy meeting minutes and awaited inflation updates later in the week.
The S&P 500 index inched higher 0.5% and traded at a new intraday record, and the Nasdaq Composite edged up 0.4%. Investors remained positive ahead of the start of the earnings season, and leading banks are expected to report better-than-expected earnings.
Market sentiment has been on the rebound over the last three weeks after string positive economic data confirmed the resilience of the U.S. economy and supporting labor market conditions.
However, investors dialed down aggressive rate-cut expectations after the U.S. economy added jobs in September at the fastest pace in six months.
The latest FOMC meeting minutes showed members felt confident that inflation is on the sustained downward path towards the Fed's target rate of 2%.
While economic activities continued to expand at a solid pace, job gains have moderated, and the jobless rate had edged up but remained low.
The committee members wanted to make sure that the aggressive rate is viewed as a balancing act to keep the labor market from weakening further and not as a signal that the economy is deteriorating faster than previously estimated.
Market participants are growing confident in the Fed's ability to engineer a so-called soft landing, meaning cooling inflation without dipping the economy into a recession.
Investors are hoping that the consumer price inflation report on Thursday and the producer price inflation report on Friday will confirm the downward trajectory of inflation in September.
Hurricane Milton was also in focus as the big and powerful storm barrels towards the West Coast of Florida, and the National Hurricane Center is anticipating the storm to make landfall sometime late tonight on Wednesday or early Thursday.
Devastating winds of speed as high as 150 mph with rainfall of more than 15 inches are expected to hit most of the coastal cities and towns from Cedar Key down to Naples.
Catastrophe insurance companies are bracing for a surge in claims after the second hurricane hits the Florida shores in as many weeks, as tropical storms turn to hurricanes on warm waters of the Gulf of Mexico and Atlantic Ocean, causing widespread wind and water damage.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.5% to 5,783.48, the Nasdaq Composite rose 0.4% to 18,264.42, and the Russell 2000 index fell 0.5% to 2,205.21.
The yield on 2-year Treasury notes edged higher to 4.0%, 10-year Treasury notes inched up to 4.05%, and 30-year Treasury bonds inched higher to 4.33%.
WTI crude oil decreased $0.57 to $73.08 a barrel, and natural gas prices edged down 8 cents to $2.64 a thermal unit.
Gold fell by $13.44 to $2,608.50 an ounce, and silver decreased by $0.20 to $30.45.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 102.74.
U.S. Stock Movers
Boeing Company declined 3% to $150.09, and the company withdrew its wage offer to machinists after talks broke down.
S&P Global placed Boeing's debt rating on a negative credit watch list and said the 33,000 machinists union strike will cost more than $1 billion per month.
Alphabet Class A declined 1.3% to $162.17 after the Justice Department requested a U.S. judge to order severe restrictions on the company's "unlawful monopoly in search" or break up its operations.
Generac increased 1.6% to $173.85, a two-year high, after Hurricane Milton intensified and widened to cover a larger area in Florida.
The deadly and most severe storm of the year is expected to knock out powerlines in several counties across Florida, potentially impacting several million people.
European Markets Wavered After China Stimulus Rally Faded
European markets struggled to stay above the flatline as the China stimulus rally faded and investors shifted their attention to the rate path and the region's economic growth prospects.
Benchmark indexes in Paris, London, Milan, and Frankfurt edged higher as investors debated rate paths ahead of the ECB policy meeting next week.
Investor sentiment has wavered in recent weeks amid elevated tensions in the Middle East, resurgent crude oil prices, and rate path uncertainty in the U.S. and Europe.
However, the latest set of U.S. economic data has increased confidence in the Federal Reserve's plan to engineer a so-called soft landing—cooling inflation without dipping the economy into a recession.
In the currency union, inflation has fallen to the target rate set by the European Central Bank, but that has largely been achieved because of the weakening in crude oil prices over the last year.
The Euro Area continues to struggle with near-zero economic growth amid high costs of living and record low unemployment.
Germany's Trade Surplus Widened In August
Germany's goods exports rose unexpectedly in August, helping the country to widen its international goods surplus from the previous month and from a year ago.
Total international goods exports increased 1.3% from the previous month to Є131.9 billion, and imports decreased 3.4% to Є109.4 billion, according to the Federal Statistical Office, or Destatis.
The goods trade surplus widened to 22.5 billion from Є16.9 billion in July and Є18.9 billion in August 2023.
Shipments to three leading destinations rose in August, surpassing the expectations set by the market.
Seasonally adjusted exports to the U.S. increased 5.5% to Є13.5 billion, to the People's Republic of China rose 1.9% to Є7.4 billion, and to the U.K. advanced 5.7% to Є6.8 billion.
Imports from China declined 1.4% to 13.2 billion, from the U.S. rose 0.7% to Є7.8 billion, and from the U.K. eased by 0.1% to Є2.9 billion.
Europe Indexes and Yields
The DAX index increased by 1.0% to 19,254.93; the CAC-40 index rose by 0.5% to 7,560.59; and the FTSE 100 index advanced by 0.7% to 8,243.74.
The yield on 10-year German bonds edged lower to 2.23%, French bonds inched lower to 3.01%, the UK gilts edged down to 4.17%, and Italian bonds increased to 3.54%.
The euro edged lower to $1.09; the British pound inched lower to $1.30; and the U.S. dollar weakened to 85.71 Swiss cents.
Brent crude decreased $1.02 to $76.13 a barrel, and the Dutch TTF natural gas rose by €0.08 to €38.64 per MWh.
Europe Stock Movers
Mondi plc increased 4.6% to 1,468.0 pence, and the packaging company agreed to acquire Schumacher Packaging's businesses in Western Europe for €684 million.
CMC Markets plc increased 4.1% to 317.50 pence after the online financial trading company said its first-half results swung to a profit compared to a loss in the previous year driven by a higher operating income.
Rio Tinto plc declined 0.4% to 5,018.0 pence after the mining company agreed to acquire Arcadium Lithium for $6.7 billion.
Continental AG increased 6.7% to €59.58 after the automotive parts maker estimated third quarter profit to improve despite the expected decline in sales.
The company said its tire business is likely to face some headwinds in the fourth quarter, with a modest increase in volume, stable prices, and higher raw material costs.
Rate and Yen Speculation Continues to Dictate Stock Market Moves In Tokyo
Stocks in Tokyo advanced following the gains in broader market indexes in overnight trading on Wall Street.
The Nikkei 225 stock average gained nearly 1%, but the broader Topix index lagged with a rise of 0.3% as the tech rally in Tokyo failed to spread to other sectors.
Market optimism was also supported by the further weakness in the yen, and the Japanese currency eased to 148.48 against the U.S. dollar.
The Japanese officials attempted to limit the rapid decline in the currency by reminding investors that the central bank is ready to step in to arrest the swift decline in the currency.
Despite the jawboning by Japanese officials, investors are anticipating the yen to fall as low as 158 against the dollar, which could provide an additional boost to the stock market.
Japan Stock Movers
The Nikkei 225 Stock Average increased 0.9% to 39,277.96, and the roader Topix index gained 0.3% to 2,707.24.
Tech stocks traded higher for the second day this week following the surge in New York.
Tokyo Electron increased 1.2% to ¥25,770.0, Advantest gained 3.7% to ¥7,639.0, and Lasertec added 4.4% to ¥24,670.0.
Retailers were in focus again after the recent weakness in the yen raised hopes of a boost in store sales.
Seven & I Holdings increased 4.5% to ¥2,335.0, Fast Retailing added 1.1% to ¥50,710.0, and Isetan Mitsukoshi declined 0.4% to ¥2,334.50.
Seven & I Holding jumped after a Bloomberg News report suggested that Canada-based Couche-Tard revised its takeover offer to $47 billion from the $38 billion original offer.
Seven & I operates a chain of 85,000 convenience store chains in 20 countries.
China Stocks Hit Wall of Earnings Growth Realities
Stock market indexes in mainland China and Hong Kong traded down as investors reassessed the scale of the three-week rally.
The Hang Seng index bounced around between gains and losses, and the CSI 300 index dropped as much as 4% after investors headed for exit.
Chinese investors fell into a familiar pattern of raised hopes by authorities, only to be followed by severe despair for the third time this year.
Investors shifted their attention to an upcoming release of September economic data on October 18 and held out for more clear and specific measures that could revive consumption.
China's economy has struggled to meet the government's annual growth target rate of 5%, but the world's second-largest economy is still the fastest-growing in the top five economies of the world.
About three weeks ago, the People's Bank of China announced a raft of monetary policy measures that jolted the market sentiment.
The market rally reached a feverish pitch after Politburo, in an unexpected meeting at the end of September, issued a strongly worded note to local governments to "do whatever it takes" to meet growth targets.
There is a growing realization among investors, after two weeks of reflection, that the recent market run-up may have gone too far.
And little has changed in the real economy in the near future, which could provide a boost to corporate earnings over the next two quarters.
The central authorities' previous two attempts to jawbone the market rally have produced few results for investors and failed to revive consumer confidence, the critical ingredient needed for the sustained market rally.
China Stock Movers
The Hang Seng index increased 0.8% to 21,096.32, and the mainland-focused CSI 300 index dropped 3.3% to 4,125.26.
Bank of China declined 3% in Shanghai trading but edged up 0.3% in Hong Kong. China Construction Bank was nearly unchanged in Hong Kong but declined 1.5% in Shanghai.
Property developers soared as much as 120% in the ten-session rally before turning lower in Tuesday's trading.
China Vanke declined 4% to HK $7.20, China Resources Land fell 1% to HK $25.70, and Longfor Group dropped 1% to HK $12.82.
Alibaba Group increased 0.3% to HK $104.70, Tencent Holdings added 0.7% to HK $440.0, and JD.com edged up 1.7% to HK $165.70.
U.S. Movers: Alphabet, Boeing, Generac
Scott Peters
09 Oct, 2024
New York City
Boeing Company declined 3% to $150.09, and the company withdrew its wage offer to machinists after talks broke down.
S&P Global placed Boeing's debt rating on a negative credit watch list and said the 33,000 machinists union strike will cost more than $1 billion per month.
Alphabet Class A declined 1.3% to $162.17 after the Justice Department requested a U.S. judge to order severe restrictions on the company's "unlawful monopoly in search" or break up its operations.
Generac increased 1.6% to $173.85, a two-year high, after Hurricane Milton intensified and widened to cover a larger area in Florida.
The deadly and most severe storm of the year is expected to knock out powerlines in several counties across Florida, potentially impacting several million people.