Market Update
Europe Movers: Anglo American, Airbus, Atos, Commerzbank, Kingfisher
Inga Muller
25 Nov, 2024
Frankfurt
Stock market indexes in Europe advanced, the euro hovered near a three-year low, and bond yields edged lower amid rate path worries and a weakening economic backdrop.
The DAX index increased by 0.4% to 19,407.29; the CAC-40 index rose by 0.2% to 7,269.86; and the FTSE 100 index advanced by 0.2% to 8,276.55.
The yield on 10-year German bonds edged higher to 2.26%, French bonds inched up to 3.06%, the UK gilts edged higher to 4.38%, and Italian bonds increased to 3.52%.
Anglo American plc increased 1.9% to 2,403.0 pence after Peabody Energy agreed to acquire the company's coal mines in Australia for $3.78 billion.
Atos SE soared 115.7% to €0.34 after the French government proposed to acquire advanced computing activities included in its BDS unit for €500 million.
Airbus SE increased 0.7% to €138.94 after the company launched its second tranche of stock buyback program totaling about 2.1 million shares between November 25 and January 24, 2025.
Kingfisher plc plunged 14% to 253.53 pence after the home improvement retailer lowered its profit outlook.
Commerzbank declined 5.4% to €14.52 after German finance minister Joerg Kukies said Italy-based UniCredit is not likely to go ahead with its plans to acquire the bank because of objections raised by the German government.
Automakers advanced following reports that China and the European Union are nearing a solution to avoid tariffs on electric vehicles imported from China.
Mercedes-Benz Group advanced 0.1% to €52.30, BMW gained 0.6% to €68.22, Volkswagen AG fell 0.2% to €81.64, and Renault SA decreased 2.7% to €39.22.
European Market Indexes Advance, Spain's Producer Price Deflation Extends to 20th Month
Bridgette Randall
25 Nov, 2024
London
Stock market indexes in Europe advanced and extended previous week's gains as investors debated future rate paths amid a weakening economic backdrop.
Benchmark indexes in Paris, Frankfurt, Milan, and London edged higher, and the euro struggled near a three-year low as private sector activities remain depressed and consumer spending growth muted.
Global markets have been volatile over the last three weeks as investors worry about the U.S. trade policy uncertainty under the next administration, rising trade tensions with China, and deepening Russia-NATO war in Ukraine.
This week, investors are looking forward to the release of preliminary inflation reports in the eurozone, Spain, France, and the Netherlands.
In Germany, investors are looking forward to the release of retail sales, unemployment, and the consumer confidence index.
Spain's PPI Deflation Extends to 20th Month In October
Spain's producer price deflation extended to the 20th month in a row in October, the National Statistics Institute reported Monday.
The annual producer price inflation declined to 3.9% in October, following a 5.2% fall in the previous month, driven by a decline in energy prices of 13.9% compared to a fall of 16.9% in the previous month.
Excluding energy, producer prices rose 0.4% in October, matching the rate in the previous month.
Europe Indexes and Yields
The DAX index increased by 0.4% to 19,407.29; the CAC-40 index rose by 0.2% to 7,269.86; and the FTSE 100 index advanced by 0.2% to 8,276.55.
The yield on 10-year German bonds edged higher to 2.26%, French bonds inched up to 3.06%, the UK gilts edged higher to 4.38%, and Italian bonds increased to 3.52%.
The euro edged lower to $1.04; the British pound inched down to $1.24; and the U.S. dollar strengthened to 88.95 Swiss cents.
Brent crude decreased $0.21 to $74.96 a barrel, and the Dutch TTF natural gas rose by €1.05 to €47.94 per MWh.
Europe Stock Movers
Anglo American plc increased 1.9% to 2,403.0 pence after Peabody Energy agreed to acquire the company's coal mines in Australia for $3.78 billion.
Atos SE soared 115.7% to €0.34 after the French government proposed to acquire advanced computing activities included in its BDS unit for €500 million.
Airbus SE increased 0.7% to €138.94 after the company launched its second tranche of stock buyback program totaling about 2.1 million shares between November 25 and January 24, 2025.
Kingfisher plc plunged 14% to 253.53 pence after the home improvement retailer lowered its profit outlook.
Commerzbank declined 5.4% to €14.52 after German finance minister Joerg Kukies said Italy-based UniCredit is not likely to go ahead with its plans to acquire the bank because of objections raised by the German government.
Automakers advanced following reports that China and the European Union are nearing a solution to avoid tariffs on electric vehicles imported from China.
Mercedes-Benz Group advanced 0.1% to €52.30, BMW gained 0.6% to €68.22, Volkswagen AG fell 0.2% to €81.64, and Renault SA decreased 2.7% to €39.22.
European Market Indexes Advance, Spain's Producer Price Deflation Extends to 20th Month
Bridgette Randall
25 Nov, 2024
London
Stock market indexes in Europe advanced and extended previous week's gains as investors debated future rate paths amid a weakening economic backdrop.
Benchmark indexes in Paris, Frankfurt, Milan, and London edged higher, and the euro struggled near a three-year low as private sector activities remain depressed and consumer spending growth muted.
Global markets have been volatile over the last three weeks as investors worry about the U.S. trade policy uncertainty under the next administration, rising trade tensions with China, and deepening Russia-NATO war in Ukraine.
This week, investors are looking forward to the release of preliminary inflation reports in the eurozone, Spain, France, and the Netherlands.
In Germany, investors are looking forward to the release of retail sales, unemployment, and the consumer confidence index.
Spain's PPI Deflation Extends to 20th Month In October
Spain's producer price deflation extended to the 20th month in a row in October, the National Statistics Institute reported Monday.
The annual producer price inflation declined to 3.9% in October, following a 5.2% fall in the previous month, driven by a decline in energy prices of 13.9% compared to a fall of 16.9% in the previous month.
Excluding energy, producer prices rose 0.4% in October, matching the rate in the previous month.
Europe Indexes and Yields
The DAX index increased by 0.4% to 19,407.29; the CAC-40 index rose by 0.2% to 7,269.86; and the FTSE 100 index advanced by 0.2% to 8,276.55.
The yield on 10-year German bonds edged higher to 2.26%, French bonds inched up to 3.06%, the UK gilts edged higher to 4.38%, and Italian bonds increased to 3.52%.
The euro edged lower to $1.04; the British pound inched down to $1.24; and the U.S. dollar strengthened to 88.95 Swiss cents.
Brent crude decreased $0.21 to $74.96 a barrel, and the Dutch TTF natural gas rose by €1.05 to €47.94 per MWh.
Europe Stock Movers
Anglo American plc increased 1.9% to 2,403.0 pence after Peabody Energy agreed to acquire the company's coal mines in Australia for $3.78 billion.
Atos SE soared 115.7% to €0.34 after the French government proposed to acquire advanced computing activities included in its BDS unit for €500 million.
Airbus SE increased 0.7% to €138.94 after the company launched its second tranche of stock buyback program totaling about 2.1 million shares between November 25 and January 24, 2025.
Kingfisher plc plunged 14% to 253.53 pence after the home improvement retailer lowered its profit outlook.
Commerzbank declined 5.4% to €14.52 after German finance minister Joerg Kukies said Italy-based UniCredit is not likely to go ahead with its plans to acquire the bank because of objections raised by the German government.
Automakers advanced following reports that China and the European Union are nearing a solution to avoid tariffs on electric vehicles imported from China.
Mercedes-Benz Group advanced 0.1% to €52.30, BMW gained 0.6% to €68.22, Volkswagen AG fell 0.2% to €81.64, and Renault SA decreased 2.7% to €39.22.
Japan Indexes Rebounded 1.5% as Politicians Negotiated Policy Outlines Ahead of Diet Session
Akira Ito
25 Nov, 2024
Tokyo
Stock market indexes in Monday's trading advanced for the second session in a row, mirroring gains in New York.
The Nikkei 225 stock average gained 1.7%, and the broader Topix index increased 1.1% following strong U.S. economic data and continued optimism about the U.S. election results.
Investors also reviewed the announcements from the ruling LDP-led coalition supporting additional stimulus supporting low-income populations and raised the income tax threshold from 1.03 million yen, or about $6,600, ahead of the start of the next Diet session on November 28.
The Japanese yen traded at 154.74 against the U.S. dollar amid growing speculation that the finance ministry and the Bank of Japan may be forced to conduct a second market intervention this year.
Japan Stock Movers
The Nikkei 225 index soared 1.7% to 38,933.83, and the broader Topix index advanced 1.1% to 2,725.96.
Tech stocks were among the leading gainers in Tokyo following a rise in the tech sector in Friday's trading in New York.
Tokyo Electron increased 4% to ¥23,130.0, Advantest Corp fell 2.4% to ¥9,221.0, Disco Corp. inched higher 0.6% to ¥42,860.0, and Lasertec Corporation gained 2% to ¥17,660.0.
Toyota Motor gained 1.4% to ¥2,702.50, Honda Motor inched higher 0.5% to ¥1,369.50, and Nissan Motor fell 0.1% to ¥406.20.
Bank stocks hovered near record highs amid expectations of higher interest rates over the next year.
Sumitomo Mitsui Financial increased 1.6% to ¥3,721.0, Mitsubishi UFJ advanced 0.01% to ¥1,825.50, and Mizuho Financial edged down 0.3% to ¥3,828.0.
Keisei Electric Railway jumped 14% to ¥4,381.0, and Keikyu Corp advanced 10.5% to ¥1,351.50 following the news that the activist investor Yoshiaki Murakami has taken stakes in both railroad operators.
Oriental Land jumped 3% to ¥3,483.0 in the hopes that the activist investor Murakami will convince Keisei to sell its stake in the struggling Tokyo Disneyland operator.
Japan Indexes Rebounded 1.5% as Politicians Negotiate Policy Outlines Ahead of Diet Session
Akira Ito
25 Nov, 2024
Tokyo
Stock market indexes in Monday's trading advanced for the second session in a row, mirroring gains in New York.
The Nikkei 225 stock average gained 1.7%, and the broader Topix index increased 1.1% following strong U.S. economic data and continued optimism about the U.S. election results.
Investors also reviewed the announcements from the ruling LDP-led coalition supporting additional stimulus supporting low-income populations and raised the income tax threshold from 1.03 million yen, or about $6,600, ahead of the start of the next Diet session on November 28.
The Japanese yen traded at 154.74 against the U.S. dollar amid growing speculation that the finance ministry and the Bank of Japan may be forced to conduct a second market intervention this year.
Japan Stock Movers
The Nikkei 225 index soared 1.7% to 38,933.83, and the broader Topix index advanced 1.1% to 2,725.96.
Tech stocks were among the leading gainers in Tokyo following a rise in the tech sector in Friday's trading in New York.
Tokyo Electron increased 4% to ¥23,130.0, Advantest Corp fell 2.4% to ¥9,221.0, Disco Corp. inched higher 0.6% to ¥42,860.0, and Lasertec Corporation gained 2% to ¥17,660.0.
Toyota Motor gained 1.4% to ¥2,702.50, Honda Motor inched higher 0.5% to ¥1,369.50, and Nissan Motor fell 0.1% to ¥406.20.
Bank stocks hovered near record highs amid expectations of higher interest rates over the next year.
Sumitomo Mitsui Financial increased 1.6% to ¥3,721.0, Mitsubishi UFJ advanced 0.01% to ¥1,825.50, and Mizuho Financial edged down 0.3% to ¥3,828.0.
Keisei Electric Railway jumped 14% to ¥4,381.0, and Keikyu Corp advanced 10.5% to ¥1,351.50 following the news that the activist investor Yoshiaki Murakami has taken stakes in both railroad operators.
Oriental Land jumped 3% to ¥3,483.0 in the hopes that the activist investor Murakami will convince Keisei to sell its stake in the struggling Tokyo Disneyland operator.
Hang Seng and CSI 300 Indexes Hover Near 2-Month Lows In Weak Turnover, China Holds 1-Year MLF Rate at 2%
Li Chen
25 Nov, 2024
Hong Kong
Stock market indexes in China and Hong Kong struggled to stay above the flatline as investors stayed on the sidelines.
The Hang Seng index fell 0.5%, and the CSI 300 index dropped 0.6% amid a lack of catalysts as investors awaited more corporate results.
Investors were cautious following disappointing fiscal stimulus measures and a lack of support from policymakers in reviving consumer sentiment.
Stock trading turnover in Hong Kong continued to drift lower over the last five weeks and fell to nearly 82% of the last one month of trading.
The latest corporate earnings confirmed a lack of new domestic demand, and possible escalation of trade tensions with the United States and the European Union also contributed to the market weakness.
The People’s Bank of China held its one-year medium term-term lending rate at 2% for the second month in a row, following a record 30 basis points reduction in September,
In recent months, the central bank has been using other short term tools to inject liquidity into the financial system and announced a series of measures to support the economic growth and revive property market activities.
In the latest move, the central bank injected a total of 900 billion yuan into financial institutions through a one-year medium-term lending facility at an unchanged rate of 2.0%.
That compared with a total of 1.45 trillion yuan of MLF loans due this month, marking a net cash withdrawal of 550 billion yuan.
In addition, the central bank injected 249.3 billion yen through the seven-day reverse repo operation and held its rate at 1.5%.
China Stock Movers
The Hang Seng index declined 0.5% to 19,131.82, and the CSI 300 index fell 0.6% to 3,842.45.
Hang Seng Indexes, the manager of the benchmark index, announced changes to its widely followed Hang Seng Index.
New World Development dropped HK$6.3% to HK$6.51 after the real estate developer was dropped from the Hang Seng Index as of December 9.
New Oriental Education declined 0.6% to HK $57.36, and Kuaishou Technology increased 2.8% to HK $45.60 after the two companies were selected to be added to the city's benchmark index.
Tech companies were in focus after China launched its three-month regulatory overhaul program targeting online algorithms used in content recommendation, e-commerce platform lists, and work assignments on delivery platforms.
JD.com declined 3% to HK $133.40, Meituan eased 3.4% to $161.40, and Alibaba Group rose 1.6% to HK $82.0.
Hang Seng and CSI 300 Indexes Hover Near 2-Month Lows In Weak Turnover
Li Chen
25 Nov, 2024
Hong Kong
Stock market indexes in China and Hong Kong struggled to stay above the flatline as investors stayed on the sidelines.
The Hang Seng index fell 0.5%, and the CSI 300 index dropped 0.6% amid a lack of catalysts as investors awaited more corporate results.
Investors were cautious following disappointing fiscal stimulus measures and a lack of support from policymakers in reviving consumer sentiment.
Stock trading turnover in Hong Kong continued to drift lower over the last five weeks and fell to nearly 82% of the last one month of trading.
The latest corporate earnings confirmed a lack of new domestic demand, and possible escalation of trade tensions with the United States and the European Union also contributed to the market weakness.
China Stock Movers
The Hang Seng index declined 0.5% to 19,131.82, and the CSI 300 index fell 0.6% to 3,842.45.
Hang Seng Indexes, the manager of the benchmark index, announced changes to its widely followed Hang Seng Index.
New World Development dropped HK$6.3% to HK$6.51 after the real estate developer was dropped from the Hang Seng Index as of December 9.
New Oriental Education declined 0.6% to HK $57.36, and Kuaishou Technology increased 2.8% to HK $45.60 after the two companies were selected to be added to the city's benchmark index.
Tech companies were in focus after China launched its three-month regulatory overhaul program targeting online algorithms used in content recommendation, e-commerce platform lists, and work assignments on delivery platforms.
JD.com declined 3% to HK $133.40, Meituan eased 3.4% to $161.40, and Alibaba Group rose 1.6% to HK $82.0.
Sensex and Nifty Indexes Advance 1% After BJP-led Alliance Scored Strong Victory In Maharashtra State Polls
Arun Goswami
25 Nov, 2024
Mumbai
Stock market indexes in Mumbai opened sharply higher after the BJP-led alliance scored a strong victory in Maharashtra assembly polls.
The Sensex index gained 1.4%, and the Nifty indexes advanced 1.6% following the decisive victory of the BJP-led alliance, winning 235 of the 288 seats in Maharashtra state elections.
The strong performance of the BJP alliance sets aside the worries of the party taking a back seat in the central government and possibly reviving infrastructure development plans in the financial capital, Mumbai.
BJP's strong victory in Maharashtra following the improving performance in Haryana is likely to increase Prime Minister Narendra Modi's and his party's influence in the central government.
However, the BJP-led alliance suffered a defeat in Jharkhand with only 24 of the 88 seats in the assembly polls.
In international trading, market indexes in Asia advanced, tracking market gains in New York and Europe in Friday's trading.
India Stock Movers
The Sensex index advanced 1.4% to 80,250.93, and the Nifty index gained 1.6% to 24,266.40.
Zomato decreased 0.7% to ₹264.89, and the company is set to join the widely followed Sensex index, replacing JSW Steel as of December 23.
The index manager, Asia Indexes, the subsidiary of the Bombay Stock Exchange, announced the index change.
PVR INOX jumped 3% to ₹1,490.0 after the movie theater chain operator said it plans to invest ₹200 crore to add 100 more movie screens by the end of 2026.
The company currently operates 1,747 screens in 356 movie theaters in 111 cities across India and Sri Lanka.
Solar energy stocks were in focus after the U.S. Securities Exchange Commission and the Department of Justice levied charges of a bribery scheme and fraud against several executives of Adani Group, including its chairman, Gautam Adani.
JSW Energy increased 2% to ₹702.30, KP Energy gained 4% to ₹606.0, Urja Gas advanced 2.3% to ₹17.48, and the Indian Renewable Energy Development Agency jumped 4.7% to ₹193.93.
Bank of India gained 2.8% to ₹105.95, and this week the company is set to raise as much as ₹5,000 crore through the sale of infrastructure bonds.
Signature Global India advanced 2.2% to ₹1,327.50, and the company said it plans to launch several new residential projects worth ₹50,000 crore over the next three years in the Delhi-NCR region.
Patanjali Ayurved increased 0.2% to ₹1,795.0 after the consumer goods company reported a strong rise in sales and earnings in the September quarter.
Revenue in the fiscal third quarter increased 23% to ₹9,335 crore, and net income soared five-fold to ₹2,901 crore, driven by a rise in other income.
Sensex and Nifty Indexes Advance 1% After BJP-led Alliance Scored Strong Victory In Maharashtra State Polls
Arun Goswami
25 Nov, 2024
Mumbai
Stock market indexes in Mumbai opened sharply higher after the BJP-led alliance scored a strong victory in Maharashtra assembly polls.
The Sensex index gained 1.4%, and the Nifty indexes advanced 1.6% following the decisive victory of the BJP-led alliance, winning 235 of the 288 seats in Maharashtra state elections.
The strong performance of the BJP alliance sets aside the worries of the party taking a back seat in the central government and possibly reviving infrastructure development plans in the financial capital, Mumbai.
BJP's strong victory in Maharashtra following the improving performance in Haryana is likely to increase Prime Minister Narendra Modi's and his party's influence in the central government.
However, the BJP-led alliance suffered a defeat in Jharkhand with only 24 of the 88 seats in the assembly polls.
In international trading, market indexes in Asia advanced, tracking market gains in New York and Europe in Friday's trading.
India Stock Movers
The Sensex index advanced 1.4% to 80,250.93, and the Nifty index gained 1.6% to 24,266.40.
Zomato decreased 0.7% to ₹264.89, and the company is set to join the widely followed Sensex index, replacing JSW Steel as of December 23.
The index manager, Asia Indexes, the subsidiary of the Bombay Stock Exchange, announced the index change.
PVR INOX jumped 3% to ₹1,490.0 after the movie theater chain operator said it plans to invest ₹200 crore to add 100 more movie screens by the end of 2026.
The company currently operates 1,747 screens in 356 movie theaters in 111 cities across India and Sri Lanka.
Solar energy stocks were in focus after the U.S. Securities Exchange Commission and the Department of Justice levied charges of a bribery scheme and fraud against several executives of Adani Group, including its chairman, Gautam Adani.
JSW Energy increased 2% to ₹702.30, KP Energy gained 4% to ₹606.0, Urja Gas advanced 2.3% to ₹17.48, and the Indian Renewable Energy Development Agency jumped 4.7% to ₹193.93.
Bank of India gained 2.8% to ₹105.95, and this week the company is set to raise as much as ₹5,000 crore through the sale of infrastructure bonds.
Signature Global India advanced 2.2% to ₹1,327.50, and the company said it plans to launch several new residential projects worth ₹50,000 crore over the next three years in the Delhi-NCR region.
Patanjali Ayurved increased 0.2% to ₹1,795.0 after the consumer goods company reported a strong rise in sales and earnings in the September quarter.
Revenue in the fiscal third quarter increased 23% to ₹9,335 crore, and net income soared five-fold to ₹2,901 crore, driven by a rise in other income.
U.S. Movers: CNH, Gap, Inuit, Ross Stores, Texas Pacific Land
Scott Peters
22 Nov, 2024
New York City
Intuit Inc. declined 5.4% to $642.0 despite the financial software developer reporting better-than-expected quarterly results.
Revenue in the fiscal first quarter ending in October increased 10% to $3.3 billion from $3.0 billion, net income declined 12% to $271 million from $307 million, and diluted earnings per share fell to 70 cents from 85 cents a year ago.
Ross Stores rose 7.1% to $153.05 after the discount retailer reported better-than-expected quarterly results.
Revenue in the third quarter ending on November 2 increased to $5.07 billion from $4.92 billion, net income advanced to $488 million from $447 million, and diluted earnings per share rose to $1.48 from $1.33 a year earlier.
The company estimated comparable store sales in the fiscal fourth quarter to increase between 2% and 3%, and earnings per share in the range of $1.57 and $1.64, a decrease from $1.82 a year ago.
Gap Inc. rose 15.2% to $25.38 after the specialty apparel retailer reported better-than-expected revenue and earnings in the latest quarter, and the company revised its full-year sales outlook.
Net sales in the fiscal third quarter ending on November 2 rose 2% to $3.82 billion from $3.67 billion, net income increased to $274 million from $214 million, and diluted earnings per share rose to 72 cents from 58 cents a year ago.
Company tightened its fiscal year 2024 sales growth outlook to an increase between 1.5% and 2.0%, compared to the previous estimate of "slight increase."
Texas Pacific Land increased 3.4% to $1,562.50, and the company was selected to join the S&P 500 index, replacing Marathon Oil, which is being acquired by ConocoPhillips.
CNH Industries declined 3.8% to $11.47, reflecting the market weakness in the eurozone after business activities contracted in the currency union in November.
Earlier in the month, the construction and agriculture equipment maker said third quarter revenue declined to $4.6 billion from $5.98 billion, net income attributable to shareholders fell to $310 million from $540 million, and diluted earnings per share decreased to 24 cents from 40 cents a year earlier.
U.S. Movers: CNH, Gap, Inuit, Ross Stores, Texas Pacific Land
Scott Peters
22 Nov, 2024
New York City
Intuit Inc. declined 5.4% to $642.0 despite the financial software developer reporting better-than-expected quarterly results.
Revenue in the fiscal first quarter ending in October increased 10% to $3.3 billion from $3.0 billion, net income declined 12% to $271 million from $307 million, and diluted earnings per share fell to 70 cents from 85 cents a year ago.
Ross Stores rose 7.1% to $153.05 after the discount retailer reported better-than-expected quarterly results.
Revenue in the third quarter ending on November 2 increased to $5.07 billion from $4.92 billion, net income advanced to $488 million from $447 million, and diluted earnings per share rose to $1.48 from $1.33 a year earlier.
The company estimated comparable store sales in the fiscal fourth quarter to increase between 2% and 3%, and earnings per share in the range of $1.57 and $1.64, a decrease from $1.82 a year ago.
Gap Inc. rose 15.2% to $25.38 after the specialty apparel retailer reported better-than-expected revenue and earnings in the latest quarter, and the company revised its full-year sales outlook.
Net sales in the fiscal third quarter ending on November 2 rose 2% to $3.82 billion from $3.67 billion, net income increased to $274 million from $214 million, and diluted earnings per share rose to 72 cents from 58 cents a year ago.
Company tightened its fiscal year 2024 sales growth outlook to an increase between 1.5% and 2.0%, compared to the previous estimate of "slight increase."
Texas Pacific Land increased 3.4% to $1,562.50, and the company was selected to join the S&P 500 index, replacing Marathon Oil, which is being acquired by ConocoPhillips.
CNH Industries declined 3.8% to $11.47, reflecting the market weakness in the eurozone after business activities contracted in the currency union in November.
Earlier in the month, the construction and agriculture equipment maker said third quarter revenue declined to $4.6 billion from $5.98 billion, net income attributable to shareholders fell to $310 million from $540 million, and diluted earnings per share decreased to 24 cents from 40 cents a year earlier.
Trump Tariffs and Policy Uncertainties Keep Wall Street Indexes In Check
Barry Adams
22 Nov, 2024
New York City
Stock market indexes struggled to stay above the flatline in early trading amid rising geopolitical, global trade barriers, and U.S. policy uncertainties.
The S&P 500 index decreased 0.1% and the Nasdaq Composite dropped 0.2% as investors unwound tech trades following Nvidia's strong quarterly results.
Market sentiment has been cautious this week as the reality of election results began to set in, the Ukraine-Russia war shows no signs of easing, and business activities contracted in the eurozone at the sharpest pace in the year.
Investors are hoping that the next U.S. government will provide clearer plans to lower federal government debt, trim the annual budget deficit, and sustain labor market expansion and economic growth.
Moreover, Trump administration cabinet appointees inspire little confidence, as top and second-tier candidates refuse to join the administration.
Investors are worried that the sharp escalation of tariffs on imported goods from the European Union and China would contribute to another bout of inflation, forcing the Federal Reserve to keep higher interest rates for longer, which could drag the economy into a recession.
U.S. Indexes and Treasury Yields
The S&P 500 index decreased 0.1% to $5,962.25, the Nasdaq Composite declined 0.2% to 18,937.14, and the Russell 2000 index inched lower 0.1% to 2,354.92.
The yield on 2-year Treasury notes edged higher to 4.33%, 10-year Treasury notes inched up to 4.40%, and 30-year Treasury bonds decreased to 4.58%.
WTI crude oil increased $0.28 to $69.81 a barrel, and natural gas prices edged up 2 cents to $3.31 a thermal unit.
Gold increased by $28.04 to $2,697.38 an ounce, and silver increased by $0.50 to $31.24.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 107.46.
U.S. Stock Movers
Intuit Inc. declined 5.4% to $642.0 despite the financial software developer reporting better-than-expected quarterly results.
Ross Stores rose 7.1% to $153.05 after the discount retailer reported better-than-expected quarterly results.
Gap Inc. rose 15.2% to $25.38 after the specialty apparel retailer reported better-than-expected revenue and earnings in the latest quarter, and the company revised its full-year sales outlook.
Texas Pacific Land increased 3.4% to $1,562.50, and the company was selected to join the S&P 500 index, replacing Marathon Oil, which is being acquired by ConocoPhillips.
CNH Industries declined 3.8% to $11.47, reflecting the market weakness in the eurozone after business activities contracted in the currency union in November.
Earlier in the month, the construction and agriculture equipment maker said third quarter revenue declined to $4.6 billion from $5.98 billion, net income attributable to shareholders fell to $310 million from $540 million, and diluted earnings per share decreased to 24 cents from 40 cents a year earlier.
Trump Tariffs and Policy Uncertainties Keep Wall Street Indexes In Check
Barry Adams
22 Nov, 2024
New York City
Stock market indexes struggled to stay above the flatline in early trading amid rising geopolitical, global trade barriers, and U.S. policy uncertainties.
The S&P 500 index decreased 0.1% and the Nasdaq Composite dropped 0.2% as investors unwound tech trades following Nvidia's strong quarterly results.
Market sentiment has been cautious this week as the reality of election results began to set in, the Ukraine-Russia war shows no signs of easing, and business activities contracted in the eurozone at the sharpest pace in the year.
Investors are hoping that the next U.S. government will provide clearer plans to lower federal government debt, trim the annual budget deficit, and sustain labor market expansion and economic growth.
Moreover, Trump administration cabinet appointees inspire little confidence, as top and second-tier candidates refuse to join the administration.
Investors are worried that the sharp escalation of tariffs on imported goods from the European Union and China would contribute to another bout of inflation, forcing the Federal Reserve to keep higher interest rates for longer, which could drag the economy into a recession.
U.S. Indexes and Treasury Yields
The S&P 500 index decreased 0.1% to $5,962.25, the Nasdaq Composite declined 0.2% to 18,937.14, and the Russell 2000 index inched lower 0.1% to 2,354.92.
The yield on 2-year Treasury notes edged higher to 4.33%, 10-year Treasury notes inched up to 4.40%, and 30-year Treasury bonds decreased to 4.58%.
WTI crude oil increased $0.28 to $69.81 a barrel, and natural gas prices edged up 2 cents to $3.31 a thermal unit.
Gold increased by $28.04 to $2,697.38 an ounce, and silver increased by $0.50 to $31.24.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 107.46.
U.S. Stock Movers
Intuit Inc. declined 5.4% to $642.0 despite the financial software developer reporting better-than-expected quarterly results.
Ross Stores rose 7.1% to $153.05 after the discount retailer reported better-than-expected quarterly results.
Gap Inc. rose 15.2% to $25.38 after the specialty apparel retailer reported better-than-expected revenue and earnings in the latest quarter, and the company revised its full-year sales outlook.
Texas Pacific Land increased 3.4% to $1,562.50, and the company was selected to join the S&P 500 index, replacing Marathon Oil, which is being acquired by ConocoPhillips.
CNH Industries declined 3.8% to $11.47, reflecting the market weakness in the eurozone after business activities contracted in the currency union in November.
Earlier in the month, the construction and agriculture equipment maker said third quarter revenue declined to $4.6 billion from $5.98 billion, net income attributable to shareholders fell to $310 million from $540 million, and diluted earnings per share decreased to 24 cents from 40 cents a year earlier.
Eurozone Business Activities Unexpectedly Contracts, Euro Hovers at 2-Year Low
Bridgette Randall
22 Nov, 2024
London
European market indexes traded down, the euro dropped to a two-year low, and bond yields edged to five-week lows in the eurozone.
Benchmark indexes in Paris, Frankfurt, Milan, and London struggled to advance after the latest eurozone business activities update in the manufacturing and services sector confirmed ongoing weaknesses.
The HCOB Flash Eurozone Composite PMI fell to 48.1 in November from 50 in October, S&P Global reported Friday.
The latest business survey showed contraction in service sector activities for the first time in ten months, aligning with the ongoing downturn in the manufacturing sector.
The manufacturing sector contraction deepened to 45.2 from 46.0, and the previously resilient service sector swung to a contraction and fell to 49.2 from 51.6 in October.
Poor business momentum in France and Germany dominated the overall business activity weakness in the eurozone.
Germany's third quarter GDP growth was revised downward to an increase of 0.1% from the preliminary estimate of 0.2% increase, the Federal Statistical Office reported Friday.
For the week, the DAX 30 index is down 0.8%, the CAC-40 index has fallen 1.2%, but the FTSE 100 index advanced 1.8% as of midday in Germany.
UK Retail Sales Declined in October
UK retail sales declined in October amid broad weakness across all sectors, according to the Office for National Statistics.
Retail sales declined 0.7% from the previous month in October and fell at the fastest pace in four months, as improved weather and an end-of-season discount pulled sales in the previous three months.
On an annual basis, sales rose at a slower pace of 2.4% following a downwardly revised 3.2% rise in September.
Europe Indexes and Yields
The DAX index decreased by 0.1% to 19,119.69; the CAC-40 index fell by 0.2% to 7,200.95; and the FTSE 100 index rose by 0.6% to 8,202.87.
The yield on 10-year German bonds edged lower to 2.24%, French bonds inched up to 3.03%, the UK gilts edged lower to 4.37%, and Italian bonds decreased to 3.50%.
The euro edged lower to $1.04; the British pound inched down to $1.24; and the U.S. dollar strengthened to 88.92 Swiss cents.
Brent crude increased $0.37 to $74.60 a barrel, and the Dutch TTF natural gas rose by €0.30 to €48.97 per MWh.
Europe Stock Movers
Banks and vehicle makers traded down and were among the leading decliners in Friday's trading.
Mercedes-Benz Group AG declined 0.8% to €51.43, Volkswagen Group AG fell 0.7% to €83.20, and BMW dropped 1% to €67.20.
BMW dropped to a three-year low as investors worry about the impending U.S. tariffs on passenger cars and vehicles exported from Europe.
Deutsche Bank decreased 3% to €15.53, Commerzbank dropped 2.4% to €15.21, BNP Paribas fell 2.9% to €56.55, Societe Generale eased 2.6% to €25.95, UniCredit declined 3.3% to €37.64, Banco Santander dived 4.4% to €4.33, and Barclays PLC inched down 2.5% to 253.70 pence.
Barclays traded around a nine-year high after the British bank delivered better-than-expected profit earlier in the month.
Eurozone Business Activities Unexpectedly Contracts, Euro Hovers at 2-Year Low
Bridgette Randall
22 Nov, 2024
London
European market indexes traded down, the euro dropped to a two-year low, and bond yields edged to five-week lows in the eurozone.
Benchmark indexes in Paris, Frankfurt, Milan, and London struggled to advance after the latest eurozone business activities update in the manufacturing and services sector confirmed ongoing weaknesses.
The HCOB Flash Eurozone Composite PMI fell to 48.1 in November from 50 in October, S&P Global reported Friday.
The latest business survey showed contraction in service sector activities for the first time in ten months, aligning with the ongoing downturn in the manufacturing sector.
The manufacturing sector contraction deepened to 45.2 from 46.0, and the previously resilient service sector swung to a contraction and fell to 49.2 from 51.6 in October.
Poor business momentum in France and Germany dominated the overall business activity weakness in the eurozone.
Germany's third quarter GDP growth was revised downward to an increase of 0.1% from the preliminary estimate of 0.2% increase, the Federal Statistical Office reported Friday.
For the week, the DAX 30 index is down 0.8%, the CAC-40 index has fallen 1.2%, but the FTSE 100 index advanced 1.8% as of midday in Germany.
UK Retail Sales Declined in October
UK retail sales declined in October amid broad weakness across all sectors, according to the Office for National Statistics.
Retail sales declined 0.7% from the previous month in October and fell at the fastest pace in four months, as improved weather and an end-of-season discount pulled sales in the previous three months.
On an annual basis, sales rose at a slower pace of 2.4% following a downwardly revised 3.2% rise in September.
Europe Indexes and Yields
The DAX index decreased by 0.1% to 19,119.69; the CAC-40 index fell by 0.2% to 7,200.95; and the FTSE 100 index rose by 0.6% to 8,202.87.
The yield on 10-year German bonds edged lower to 2.24%, French bonds inched up to 3.03%, the UK gilts edged lower to 4.37%, and Italian bonds decreased to 3.50%.
The euro edged lower to $1.04; the British pound inched down to $1.24; and the U.S. dollar strengthened to 88.92 Swiss cents.
Brent crude increased $0.37 to $74.60 a barrel, and the Dutch TTF natural gas rose by €0.30 to €48.97 per MWh.
Europe Stock Movers
Banks and vehicle makers traded down and were among the leading decliners in Friday's trading.
Mercedes-Benz Group AG declined 0.8% to €51.43, Volkswagen Group AG fell 0.7% to €83.20, and BMW dropped 1% to €67.20.
BMW dropped to a three-year low as investors worry about the impending U.S. tariffs on passenger cars and vehicles exported from Europe.
Deutsche Bank decreased 3% to €15.53, Commerzbank dropped 2.4% to €15.21, BNP Paribas fell 2.9% to €56.55, Societe Generale eased 2.6% to €25.95, UniCredit declined 3.3% to €37.64, Banco Santander dived 4.4% to €4.33, and Barclays PLC inched down 2.5% to 253.70 pence.
Barclays traded around a nine-year high after the British bank delivered better-than-expected profit earlier in the month.