Market Update
India Indexes Rebounds 1%, Waaree Energies and Honasa Consumer Plunge
Arun Goswami
19 Nov, 2024
Mumbai
Stock market indexes in Mumbai opened higher and rebounded from the previous session's losses.
The Sensex index increased 1.1% to 78,258.64, and the Nifty 50 index advanced 1.2% to 23,736.85.
Market indexes have been under pressure over the last six weeks amid a decline in quarterly earnings and a fall in operating margins.
Moreover, foreign investors have been selling stocks in India amid high valuation and allocating to markets in China and Japan.
Financial markets in Mumbai are closed on Wednesday as Maharashtra State conducts its general elections.
Waaree Energies declined 4.4% to ₹2,976.30 after the solar PV module maker reported weak revenue growth.
Revenue in the September quarter increased 1% to ₹2,916 crore, and net income rose 15% to ₹362 crore from a year ago, respectively.
Total exports in the quarter were unchanged at ₹3,165 crore compared to the same period a year ago, and the company said it plans to set up a 3GW manufacturing facility in the U.S.
NTPC Green Energy's public offering opened for subscription today as the company set the price band between ₹102 and ₹108 per share.
The wholly owned subsidiary of NTPC plans to sell 92.59 crore shares and raise as much as ₹10,000 crore.
The subscription period ends on November 22, and shares will be credited to the investor's account on November 26.
Adani Green Energy increased 0.7% to ₹1,460.90, and the company is set to launch a $600 million bond offering later in the week.
Bajaj Finance Ltd. increased 0.7% to ₹6,608.30, and the company said in a filing with exchanges that its fixed-deposit book increased 21% to 66,131 crore.
Ashoka Buildcon advanced 2.4% to ₹237.40, and the company said it has been declared as the lowest bidder in projects worth ₹2,791 crore by the National Highways Authority of India.
Honasa Consumer dropped 10% to ₹267.40 and extended two-day losses to over 32% after the company reported its first loss in five quarters.
Consolidated revenue from operations in the fiscal second quarter declined 7% to ₹462 crore from ₹496 crore, and net income swung to a loss of ₹29 crore compared to a profit of ₹19 crore in the same period a year ago.
The company blamed the decline in revenue and earnings on a one-time change in the inventory distribution model.
The parent company of Mamaearth retailer said inventory-adjusted revenue in the quarter was ₹525 crore, a 5.7% increase from a year earlier.
Escalating Global Trade Tensions and Rising Geopolitical Worries Keep Stock Market Indexes In Check
Alexander Garcia
18 Nov, 2024
Miami
Stock market indexes on Wall Street traded higher and overcame morning doldrums amid a positive outlook for the upcoming earnings later in the week.
The S&P 500 index inched up 0.4% and the Nasdaq Composite advanced 0.6% in the hopes that Walmart, TJX, Lowe's, Nvidia, and Palo Alto Networks will deliver better-than-expected quarterly results.
Nvidia is scheduled to release its quarterly results on Wednesday, and the artificial intelligence application chip maker's stock declined 2% on a report that the company's chips are overheating in certain server configurations.
Last week, stock market indexes around the world declined as investors digested the rising possibilities of escalating trade tensions turning into full-blown trade wars.
U.S. major averages dropped after Fed Chair Jay Powell signaled a lack of urgency for future rate cuts, citing strong economy and labor market conditions.
In addition, post-U.S. elections rally wavered for two consecutive weeks after the reality of chaotic administration, unhinged presidential leadership, and an extreme tariff policy agenda began to set in.
Trump's tariffs, income tax cuts, and deportation plans are estimated to drive the federal government deficit by an additional $8 trillion over the four-year term, increase annual inflation by as much as 2 percentage points, and contribute to labor shortages in the agriculture, hospitality, and construction industries.
Stock market indexes in the first quarter of 2025 are likely to face stiff headwinds as the next administration implements its economic agenda.
In the week ahead, a private survey of the U.S. manufacturing sector is expected to confirm an ongoing contraction, but growth in the service sector is likely to pick up.
In addition, investors are looking forward to the release of housing building permits, starts, and completion data later in the week.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.4% to 5,895.90, the Nasdaq Composite rose 0.7% to 18,803.02, and the Russell 2000 index added 0.8% to 2,321.67.
The yield on 2-year Treasury notes edged higher to 4.34%, 10-year Treasury notes inched up to 4.48%, and 30-year Treasury bonds decreased to 4.66%.
WTI crude oil increased $1.87 to $68.89 a barrel, and natural gas prices edged up 9 cents to $2.91 a thermal unit.
Gold decreased by $48.61 to $2,611.21 an ounce, and silver increased by $1.01 to $31.23.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 106.70.
European Stock Indexes Retain Negative Bias
Stock market indexes in Europe edged lower in Monday's trading as investors debated the future rate path and the impact of the potential escalation of trade tensions with the U.S. and China.
Benchmark indexes in Paris, Milan, Frankfurt, and London traded in a tight range with a downward bias, and the U.S. dollar edged higher as investors lowered expectations for additional rate cuts in the near future.
On the economic front, the international goods trade balance of the eurozone in October increased, and Spain's trade deficit shrank.
Spain's Trade Gap Shrank
Spain's international trade gap shrank to €3.3 billion in September from €3.8 billion a year ago, the ministry of industry, commerce, and tourism reported Monday.
Goods exports increased 1.9% to €31.6 billion, and goods imports advanced 0.1% to €34.9 billion.
Trade deficit over the nine-month period ending in September 2024 shrank to €27.1 billion from €29.6 billion a year ago.
Eurozone Trade Surplus Widened
The Euro Area trade surplus widened to €12.5 billion in September from €9.8 billion in August, according to a report released by Eurostat.
Exports increased 0.6% to €237.8 billion, and imports fell 0.6% to €225.3 billion.
This week, investors are looking forward to the release of manufacturing surveys in the Eurozone, France, Germany, and the U.K.
Moreover, Switzerland is set to release its international trade data later this week.
Europe Indexes and Yields
The DAX index decreased by 0.2% to 19,176.21; the CAC-40 index gained by 0.05% to 7,273.38; and the FTSE 100 index rose by 0.6% to 8,109.32.
The yield on 10-year German bonds edged higher to 2.37%, French bonds inched higher to 3.11%, the UK gilts edged lower to 4.48%, and Italian bonds increased to 3.59%.
The euro edged lower to $1.05; the British pound inched down to $1.26; and the U.S. dollar strengthened to 88.72 Swiss cents.
Brent crude increased $1.90 to $72.94 a barrel, and the Dutch TTF natural gas rose by €1.12 to €46.86 per MWh.
Europe Stock Movers
Melrose Industries PLC increased 6.3% to 520.20 pence after the parent company GKN Aerospace said revenue for the four-month period ending in October increased 7%.
The company also reiterated its annual outlook for the remainder of the year.
Elementis plc increased 0.3% to 135.40 pence, and the specialty chemical company said its chief executive officer Paul Waterman would step down after nine years in the office.
Vivendi SE declined 1.6% to €8.94, and the French media company announced its expectations of revenue for its television business.
The company is set to separate its Canal+, Havas, and Louis Hachette Group on the London Stock Exchange on December 16 following the shareholder vote on December 9.
The company forecast Canal+ revenue growth in 2024 to match the rate in 2023, but the revenue in 2025 will be negatively impacted by the termination of its free-to-air channel C8 and the ending of expensive third-party content contracts.
Japan Indexes Weighed Down by Rate Path Worries
Stock market indexes in Tokyo declined following losses in Friday's trading in New York.
The Nikkei average and the Topix index fell more than 0.7% amid worry about the interest rate path in the near future.
Last week, U.S. Fed Chair Jerome Powell said there is no urgency in lowering rates in the imminent future, citing strong economic growth.
Powell's comments raised the prospects of fewer and smaller rate cuts over the next three months, weighing on the market sentiment.
The yen dropped to 154.55 against the U.S. dollar on the worry that the Bank of Japan may continue its gradual approach in raising interest rates.
Currency traders are bracing for the yen to sink to as low as 165 against the U.S. dollar if rising trade tensions between China and the U.S. lead to competitive currency devaluation in the region.
Core Machinery Orders Fell In September
Investors reacted negatively to a surprise decline in Japan's machinery orders in September.
Core machinery orders, which exclude large and volatile orders for ships and power equipment, declined 4.8% from a year ago in September.
Core machinery orders decline accelerated from a fall of 3.4% in August, according to an update released by the Cabinet Office.
On a monthly basis, core orders declined for the third month in a row and fell 0.7% to 852 billion yen in September.
Japan Stock Movers
The Nikkei 225 Stock Average declined 1% to 38,238.42 and decreased 0.7% to 2,693.09.
Semiconductor-linked equipment makers led the decliners in Tokyo trading.
Tokyo Electron declined 1.8% to ¥21,945.0, Screen Holdings fell 1.9% to ¥9,342.0, Lasertec dropped 2.9% to ¥17,700.0, and Advantest decreased 0.4% to ¥9,100.0.
Sumitomo Mitsui Financial declined 2% to ¥3,558.0, Mitsubishi UFJ Financial decreased 0.7% to ¥1,810.50, and Mizuho Financial fell 0.6% to ¥3,742.0.
Dentsu Group dropped 10.5% to ¥3,687.0 after the advertising company reported mixed quarterly results.
The company reported a modest 0.3% increase in revenue in the third quarter but also revised its annual outlook to flat from the previous estimate of a 1% increase.
Chugai Pharmaceutical plunged 10.1% to ¥6,427.0, and Otsuka Holdings decreased 4% to ¥8,758.0.
Ryohin Keikaku gained 5.5% to ¥2,938.0, M3 added 5.6% to ¥1,320.0, Taise advanced 2.5% to ¥6,746.0, and Mercari increased 3.2% to ¥1,987.0.
A Rebound In Bank Stocks Leads China Indexes Higher
Stock market indexes in mainland China and Hong Kong advanced following a rise in banks and tech stocks.
The Hang Seng index advanced 1%, and the mainland-focused CSI 300 index added 0.9%, but market sentiment remained shaky amid rising geopolitical tensions.
Market indexes have been under pressure over the last seven weeks after politicians and policymakers failed to follow through with "whatever it takes" fiscal stimulus.
In addition, market sentiment was shaky on the worry that the next U.S. administration is likely to ramp up trade tariffs on goods made in China and made by Chinese companies in Vietnam, Malaysia, and Mexico.
Banks traded higher after the China Securities Regulatory Commission urged banks to disclose plans to lift their stock prices above the book value.
The regulatory agency released a statement after the market close on Friday and urged company boards to take an active role in lifting their stock prices.
Over the last 12 years, leading nine Chinese banks have traded below their book value, reflecting investor concerns about lurking bad loans in the property sector and obligations to the central government for national priority projects.
Of the total of 29 banks traded in mainland China, about 22 are trading below their book value as investors worry that bad loans issued to state-controlled property developers are not fully reflected in their financial statements.
China Stock Movers
The Hang Seng index increased 1% to 19,619.87, and the mainland-focused CSI 300 index advanced 0.9% to 4,002.89.
China Merchants Bank increased 0.7% to ¥38.11, ICBC gained 2.9% to HK $4.72, China Construction Bank gained 0.6% to HK $6.03, and Bank of China added 3.9% to HK $3.75.
Property stocks traded higher in the hopes of additional reforms from the People's Bank of China and policymakers.
China Vanke increased 2.5% to HK $6.56, China Resources Land gained 1.7% to HK $24.05, and Longfor Group Holdings edged up 0.3% to HK $11.40.
Alibaba Group Holding declined 1.9% to HK $85.60 after the e-commerce platform operator reported weaker-than-expected quarterly results.
JD.com jumped 4% to HK $138.0, and Tencent Holdings advanced 0.8% to HK $404.20.
Escalating Global Trade Tensions and Rising Geopolitical Worries Keep Stock Market Indexes In Check
Alexander Garcia
18 Nov, 2024
Miami
Stock market indexes on Wall Street traded higher and overcame morning doldrums amid a positive outlook for the upcoming earnings later in the week.
The S&P 500 index inched up 0.4% and the Nasdaq Composite advanced 0.6% in the hopes that Walmart, TJX, Lowe's, Nvidia, and Palo Alto Networks will deliver better-than-expected quarterly results.
Nvidia is scheduled to release its quarterly results on Wednesday, and the artificial intelligence application chip maker's stock declined 2% on a report that the company's chips are overheating in certain server configurations.
Last week, stock market indexes around the world declined as investors digested the rising possibilities of escalating trade tensions turning into full-blown trade wars.
U.S. major averages dropped after Fed Chair Jay Powell signaled a lack of urgency for future rate cuts, citing strong economy and labor market conditions.
In addition, post-U.S. elections rally wavered for two consecutive weeks after the reality of chaotic administration, unhinged presidential leadership, and an extreme tariff policy agenda began to set in.
Trump's tariffs, income tax cuts, and deportation plans are estimated to drive the federal government deficit by an additional $8 trillion over the four-year term, increase annual inflation by as much as 2 percentage points, and contribute to labor shortages in the agriculture, hospitality, and construction industries.
Stock market indexes in the first quarter of 2025 are likely to face stiff headwinds as the next administration implements its economic agenda.
In the week ahead, a private survey of the U.S. manufacturing sector is expected to confirm an ongoing contraction, but growth in the service sector is likely to pick up.
In addition, investors are looking forward to the release of housing building permits, starts, and completion data later in the week.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.4% to 5,895.90, the Nasdaq Composite rose 0.7% to 18,803.02, and the Russell 2000 index added 0.8% to 2,321.67.
The yield on 2-year Treasury notes edged higher to 4.34%, 10-year Treasury notes inched up to 4.48%, and 30-year Treasury bonds decreased to 4.66%.
WTI crude oil increased $1.87 to $68.89 a barrel, and natural gas prices edged up 9 cents to $2.91 a thermal unit.
Gold decreased by $48.61 to $2,611.21 an ounce, and silver increased by $1.01 to $31.23.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 106.70.
European Stock Indexes Retain Negative Bias
Stock market indexes in Europe edged lower in Monday's trading as investors debated the future rate path and the impact of the potential escalation of trade tensions with the U.S. and China.
Benchmark indexes in Paris, Milan, Frankfurt, and London traded in a tight range with a downward bias, and the U.S. dollar edged higher as investors lowered expectations for additional rate cuts in the near future.
On the economic front, the international goods trade balance of the eurozone in October increased, and Spain's trade deficit shrank.
Spain's Trade Gap Shrank
Spain's international trade gap shrank to €3.3 billion in September from €3.8 billion a year ago, the ministry of industry, commerce, and tourism reported Monday.
Goods exports increased 1.9% to €31.6 billion, and goods imports advanced 0.1% to €34.9 billion.
Trade deficit over the nine-month period ending in September 2024 shrank to €27.1 billion from €29.6 billion a year ago.
Eurozone Trade Surplus Widened
The Euro Area trade surplus widened to €12.5 billion in September from €9.8 billion in August, according to a report released by Eurostat.
Exports increased 0.6% to €237.8 billion, and imports fell 0.6% to €225.3 billion.
This week, investors are looking forward to the release of manufacturing surveys in the Eurozone, France, Germany, and the U.K.
Moreover, Switzerland is set to release its international trade data later this week.
Europe Indexes and Yields
The DAX index decreased by 0.2% to 19,176.21; the CAC-40 index gained by 0.05% to 7,273.38; and the FTSE 100 index rose by 0.6% to 8,109.32.
The yield on 10-year German bonds edged higher to 2.37%, French bonds inched higher to 3.11%, the UK gilts edged lower to 4.48%, and Italian bonds increased to 3.59%.
The euro edged lower to $1.05; the British pound inched down to $1.26; and the U.S. dollar strengthened to 88.72 Swiss cents.
Brent crude increased $1.90 to $72.94 a barrel, and the Dutch TTF natural gas rose by €1.12 to €46.86 per MWh.
Europe Stock Movers
Melrose Industries PLC increased 6.3% to 520.20 pence after the parent company GKN Aerospace said revenue for the four-month period ending in October increased 7%.
The company also reiterated its annual outlook for the remainder of the year.
Elementis plc increased 0.3% to 135.40 pence, and the specialty chemical company said its chief executive officer Paul Waterman would step down after nine years in the office.
Vivendi SE declined 1.6% to €8.94, and the French media company announced its expectations of revenue for its television business.
The company is set to separate its Canal+, Havas, and Louis Hachette Group on the London Stock Exchange on December 16 following the shareholder vote on December 9.
The company forecast Canal+ revenue growth in 2024 to match the rate in 2023, but the revenue in 2025 will be negatively impacted by the termination of its free-to-air channel C8 and the ending of expensive third-party content contracts.
Japan Indexes Weighed Down by Rate Path Worries
Stock market indexes in Tokyo declined following losses in Friday's trading in New York.
The Nikkei average and the Topix index fell more than 0.7% amid worry about the interest rate path in the near future.
Last week, U.S. Fed Chair Jerome Powell said there is no urgency in lowering rates in the imminent future, citing strong economic growth.
Powell's comments raised the prospects of fewer and smaller rate cuts over the next three months, weighing on the market sentiment.
The yen dropped to 154.55 against the U.S. dollar on the worry that the Bank of Japan may continue its gradual approach in raising interest rates.
Currency traders are bracing for the yen to sink to as low as 165 against the U.S. dollar if rising trade tensions between China and the U.S. lead to competitive currency devaluation in the region.
Core Machinery Orders Fell In September
Investors reacted negatively to a surprise decline in Japan's machinery orders in September.
Core machinery orders, which exclude large and volatile orders for ships and power equipment, declined 4.8% from a year ago in September.
Core machinery orders decline accelerated from a fall of 3.4% in August, according to an update released by the Cabinet Office.
On a monthly basis, core orders declined for the third month in a row and fell 0.7% to 852 billion yen in September.
Japan Stock Movers
The Nikkei 225 Stock Average declined 1% to 38,238.42 and decreased 0.7% to 2,693.09.
Semiconductor-linked equipment makers led the decliners in Tokyo trading.
Tokyo Electron declined 1.8% to ¥21,945.0, Screen Holdings fell 1.9% to ¥9,342.0, Lasertec dropped 2.9% to ¥17,700.0, and Advantest decreased 0.4% to ¥9,100.0.
Sumitomo Mitsui Financial declined 2% to ¥3,558.0, Mitsubishi UFJ Financial decreased 0.7% to ¥1,810.50, and Mizuho Financial fell 0.6% to ¥3,742.0.
Dentsu Group dropped 10.5% to ¥3,687.0 after the advertising company reported mixed quarterly results.
The company reported a modest 0.3% increase in revenue in the third quarter but also revised its annual outlook to flat from the previous estimate of a 1% increase.
Chugai Pharmaceutical plunged 10.1% to ¥6,427.0, and Otsuka Holdings decreased 4% to ¥8,758.0.
Ryohin Keikaku gained 5.5% to ¥2,938.0, M3 added 5.6% to ¥1,320.0, Taise advanced 2.5% to ¥6,746.0, and Mercari increased 3.2% to ¥1,987.0.
A Rebound In Bank Stocks Leads China Indexes Higher
Stock market indexes in mainland China and Hong Kong advanced following a rise in banks and tech stocks.
The Hang Seng index advanced 1%, and the mainland-focused CSI 300 index added 0.9%, but market sentiment remained shaky amid rising geopolitical tensions.
Market indexes have been under pressure over the last seven weeks after politicians and policymakers failed to follow through with "whatever it takes" fiscal stimulus.
In addition, market sentiment was shaky on the worry that the next U.S. administration is likely to ramp up trade tariffs on goods made in China and made by Chinese companies in Vietnam, Malaysia, and Mexico.
Banks traded higher after the China Securities Regulatory Commission urged banks to disclose plans to lift their stock prices above the book value.
The regulatory agency released a statement after the market close on Friday and urged company boards to take an active role in lifting their stock prices.
Over the last 12 years, leading nine Chinese banks have traded below their book value, reflecting investor concerns about lurking bad loans in the property sector and obligations to the central government for national priority projects.
Of the total of 29 banks traded in mainland China, about 22 are trading below their book value as investors worry that bad loans issued to state-controlled property developers are not fully reflected in their financial statements.
China Stock Movers
The Hang Seng index increased 1% to 19,619.87, and the mainland-focused CSI 300 index advanced 0.9% to 4,002.89.
China Merchants Bank increased 0.7% to ¥38.11, ICBC gained 2.9% to HK $4.72, China Construction Bank gained 0.6% to HK $6.03, and Bank of China added 3.9% to HK $3.75.
Property stocks traded higher in the hopes of additional reforms from the People's Bank of China and policymakers.
China Vanke increased 2.5% to HK $6.56, China Resources Land gained 1.7% to HK $24.05, and Longfor Group Holdings edged up 0.3% to HK $11.40.
Alibaba Group Holding declined 1.9% to HK $85.60 after the e-commerce platform operator reported weaker-than-expected quarterly results.
JD.com jumped 4% to HK $138.0, and Tencent Holdings advanced 0.8% to HK $404.20.
Wall Street Indexes Look Down as Trump Tariffs and Budget Deficit Bulge Adds to Growing List of Worries
Barry Adams
18 Nov, 2024
New York City
Stock market indexes on Wall Street inched higher as investors awaited major earnings this week.
The S&P 500 index inched up 0.1% and the Nasdaq Composite advanced 0.3% in the hopes that Walmart, TJX, Lowe's, Nvidia, and Palo Alto Networks will deliver better-than-expected quarterly results.
Nvidia is scheduled to release its quarterly results on Wednesday, and the artificial intelligence application chip maker's stock declined 2% on a report that the company's chips are overheating in certain server configurations.
Last week, stock market indexes around the world declined as investors digested the rising possibilities of escalating trade tensions turning into full-blown trade wars.
U.S. major averages dropped after Fed Chair Jay Powell signaled a lack of urgency for future rate cuts, citing strong economy and labor market conditions.
In addition, post-U.S. elections rally wavered for two consecutive weeks after the reality of chaotic administration, unhinged presidential leadership, and an extreme tariff policy agenda began to set in.
Trump's tariffs, tax cuts, and deportation plans are estimated to drive the federal government deficit by an additional $8 trillion over the four-year term, increase annual inflation by as much as 2 percentage points, and contribute to labor shortages in the agriculture, hospitality, and construction industries.
Stock market indexes in the first quarter of 2025 are likely to face stiff headwinds as the next administration implements its economic agenda.
In the week ahead, a private survey of the U.S. manufacturing sector is expected to confirm an ongoing contraction, but growth in the service sector is likely to pick up.
In addition, investors are looking forward to the release of housing building permits, starts, and completion data later in the week.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.1% to 5,901.02, the Nasdaq Composite rose 0.4% to 18,897.16, and the Russell 2000 index declined 0.2% to 2,329.27.
The yield on 2-year Treasury notes edged higher to 4.34%, 10-year Treasury notes inched up to 4.48%, and 30-year Treasury bonds decreased to 4.66%.
WTI crude oil increased $0.12 to $67.15 a barrel, and natural gas prices edged up 9 cents to $2.91 a thermal unit.
Gold decreased by $35.41 to $2,597.14 an ounce, and silver increased by $0.58 to $30.83.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 106.70.
Wall Street Indexes Look Down as Trump Tariffs and Budget Deficit Bulge Adds to Growing List of Worries
Barry Adams
18 Nov, 2024
New York City
Stock market indexes on Wall Street inched higher as investors awaited major earnings this week.
The S&P 500 index inched up 0.1% and the Nasdaq Composite advanced 0.3% in the hopes that Walmart, TJX, Lowe's, Nvidia, and Palo Alto Networks will deliver better-than-expected quarterly results.
Nvidia is scheduled to release its quarterly results on Wednesday, and the artificial intelligence application chip maker's stock declined 2% on a report that the company's chips are overheating in certain server configurations.
Last week, stock market indexes around the world declined as investors digested the rising possibilities of escalating trade tensions turning into full-blown trade wars.
U.S. major averages dropped after Fed Chair Jay Powell signaled a lack of urgency for future rate cuts, citing strong economy and labor market conditions.
In addition, post-U.S. elections rally wavered for two consecutive weeks after the reality of chaotic administration, unhinged presidential leadership, and an extreme tariff policy agenda began to set in.
Trump's tariffs, tax cuts, and deportation plans are estimated to drive the federal government deficit by an additional $8 trillion over the four-year term, increase annual inflation by as much as 2 percentage points, and contribute to labor shortages in the agriculture, hospitality, and construction industries.
Stock market indexes in the first quarter of 2025 are likely to face stiff headwinds as the next administration implements its economic agenda.
In the week ahead, a private survey of the U.S. manufacturing sector is expected to confirm an ongoing contraction, but growth in the service sector is likely to pick up.
In addition, investors are looking forward to the release of housing building permits, starts, and completion data later in the week.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.1% to 5,901.02, the Nasdaq Composite rose 0.4% to 18,897.16, and the Russell 2000 index declined 0.2% to 2,329.27.
The yield on 2-year Treasury notes edged higher to 4.34%, 10-year Treasury notes inched up to 4.48%, and 30-year Treasury bonds decreased to 4.66%.
WTI crude oil increased $0.12 to $67.15 a barrel, and natural gas prices edged up 9 cents to $2.91 a thermal unit.
Gold decreased by $35.41 to $2,597.14 an ounce, and silver increased by $0.58 to $30.83.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 106.70.
Europe Movers: Elementis, Melrose Industries, Vivendi
Inga Muller
18 Nov, 2024
Frankfurt
European stock market indexes traded in a tight range amid worries of rising trade tensions with China and the U.S.
Rate path worries also weighed on the market as investors debated timing and the size of future rate cuts. The Euro Area goods trade surplus widened in September.
The DAX index decreased by 0.1% to 19,195.54; the CAC-40 index eased by 0.03% to 7,267.02; and the FTSE 100 index rose by 0.2% to 8,080.42.
The yield on 10-year German bonds edged higher to 2.37%, French bonds inched higher to 3.11%, the UK gilts edged lower to 4.48%, and Italian bonds increased to 3.59%.
Melrose Industries PLC increased 6.3% to 520.20 pence after the parent company GKN Aerospace said revenue for the four-month period ending in October increased 7%.
The company also reiterated its annual outlook for the remainder of the year.
Elementis plc increased 0.3% to 135.40 pence, and the specialty chemical company said its chief executive officer Paul Waterman would step down after nine years in the office.
Vivendi SE declined 1.6% to €8.94, and the French media company announced its expectations of revenue for its television business.
The company is set to separate its Canal+, Havas, and Louis Hachette Group on the London Stock Exchange on December 16 following the shareholder vote on December 9.
The company forecast Canal+ revenue growth in 2024 to match the rate in 2023, but the revenue in 2025 will be negatively impacted by the termination of its free-to-air channel C8 and the ending of expensive third-party content contracts.
Europe Movers: Elementis, Melrose Industries, Vivendi
Inga Muller
18 Nov, 2024
Frankfurt
European stock market indexes traded in a tight range amid worries of rising trade tensions with China and the U.S.
Rate path worries also weighed on the market as investors debated timing and the size of future rate cuts. The Euro Area goods trade surplus widened in September.
The DAX index decreased by 0.1% to 19,195.54; the CAC-40 index eased by 0.03% to 7,267.02; and the FTSE 100 index rose by 0.2% to 8,080.42.
The yield on 10-year German bonds edged higher to 2.37%, French bonds inched higher to 3.11%, the UK gilts edged lower to 4.48%, and Italian bonds increased to 3.59%.
Melrose Industries PLC increased 6.3% to 520.20 pence after the parent company GKN Aerospace said revenue for the four-month period ending in October increased 7%.
The company also reiterated its annual outlook for the remainder of the year.
Elementis plc increased 0.3% to 135.40 pence, and the specialty chemical company said its chief executive officer Paul Waterman would step down after nine years in the office.
Vivendi SE declined 1.6% to €8.94, and the French media company announced its expectations of revenue for its television business.
The company is set to separate its Canal+, Havas, and Louis Hachette Group on the London Stock Exchange on December 16 following the shareholder vote on December 9.
The company forecast Canal+ revenue growth in 2024 to match the rate in 2023, but the revenue in 2025 will be negatively impacted by the termination of its free-to-air channel C8 and the ending of expensive third-party content contracts.
European Stock Indexes Retain Negative Bias; Eurozone Trade Surplus Widened, Spain's Trade Gap Shrank
Bridgette Randall
18 Nov, 2024
London
Stock market indexes in Europe edged lower in Monday's trading as investors debated the future rate path and the impact of the potential escalation of trade tensions with the U.S. and China.
Benchmark indexes in Paris, Milan, Frankfurt, and London traded in a tight range with a downward bias, and the U.S. dollar edged higher as investors lowered expectations for additional rate cuts in the near future.
On the economic front, the international goods trade balance of the eurozone in October increased, and Spain's trade deficit shrank.
Spain's international trade gap shrank to €3.3 billion in September from €3.8 billion a year ago, the ministry of industry, commerce, and tourism reported Monday.
Goods exports increased 1.9% to €31.6 billion, and goods imports advanced 0.1% to €34.9 billion.
Trade deficit over the nine-month period ending in September 2024 shrank to €27.1 billion from €29.6 billion a year ago.
The Euro Area trade surplus widened to €12.5 billion in September from €9.8 billion in August, according to a report released by Eurostat.
Exports increased 0.6% to €237.8 billion, and imports fell 0.6% to €225.3 billion.
This week, investors are looking forward to the release of manufacturing surveys in the Eurozone, France, Germany, and the U.K.
Moreover, Switzerland is set to release its international trade data later this week.
Europe Indexes and Yields
The DAX index decreased by 0.1% to 19,195.54; the CAC-40 index eased by 0.03% to 7,267.02; and the FTSE 100 index rose by 0.2% to 8,080.42.
The yield on 10-year German bonds edged higher to 2.37%, French bonds inched higher to 3.11%, the UK gilts edged lower to 4.48%, and Italian bonds increased to 3.59%.
The euro edged lower to $1.05; the British pound inched down to $1.26; and the U.S. dollar strengthened to 88.72 Swiss cents.
Brent crude increased $0.50 to $71.54 a barrel, and the Dutch TTF natural gas rose by €0.42 to €46.13 per MWh.
Europe Stock Movers
Melrose Industries PLC increased 6.3% to 520.20 pence after the parent company GKN Aerospace said revenue for the four-month period ending in October increased 7%.
The company also reiterated its annual outlook for the remainder of the year.
Elementis plc increased 0.3% to 135.40 pence, and the specialty chemical company said its chief executive officer Paul Waterman would step down after nine years in the office.
Vivendi SE declined 1.6% to €8.94, and the French media company announced its expectations of revenue for its television business.
The company is set to separate its Canal+, Havas, and Louis Hachette Group on the London Stock Exchange on December 16 following the shareholder vote on December 9.
The company forecast Canal+ revenue growth in 2024 to match the rate in 2023, but the revenue in 2025 will be negatively impacted by the termination of its free-to-air channel C8 and the ending of expensive third-party content contracts.
European Stock Indexes Retain Negative Bias; Eurozone Trade Surplus Widened, Spain's Trade Gap Shrank
Bridgette Randall
18 Nov, 2024
London
Stock market indexes in Europe edged lower in Monday's trading as investors debated the future rate path and the impact of the potential escalation of trade tensions with the U.S. and China.
Benchmark indexes in Paris, Milan, Frankfurt, and London traded in a tight range with a downward bias, and the U.S. dollar edged higher as investors lowered expectations for additional rate cuts in the near future.
On the economic front, the international goods trade balance of the eurozone in October increased, and Spain's trade deficit shrank.
Spain's international trade gap shrank to €3.3 billion in September from €3.8 billion a year ago, the ministry of industry, commerce, and tourism reported Monday.
Goods exports increased 1.9% to €31.6 billion, and goods imports advanced 0.1% to €34.9 billion.
Trade deficit over the nine-month period ending in September 2024 shrank to €27.1 billion from €29.6 billion a year ago.
The Euro Area trade surplus widened to €12.5 billion in September from €9.8 billion in August, according to a report released by Eurostat.
Exports increased 0.6% to €237.8 billion, and imports fell 0.6% to €225.3 billion.
This week, investors are looking forward to the release of manufacturing surveys in the Eurozone, France, Germany, and the U.K.
Moreover, Switzerland is set to release its international trade data later this week.
Europe Indexes and Yields
The DAX index decreased by 0.1% to 19,195.54; the CAC-40 index eased by 0.03% to 7,267.02; and the FTSE 100 index rose by 0.2% to 8,080.42.
The yield on 10-year German bonds edged higher to 2.37%, French bonds inched higher to 3.11%, the UK gilts edged lower to 4.48%, and Italian bonds increased to 3.59%.
The euro edged lower to $1.05; the British pound inched down to $1.26; and the U.S. dollar strengthened to 88.72 Swiss cents.
Brent crude increased $0.50 to $71.54 a barrel, and the Dutch TTF natural gas rose by €0.42 to €46.13 per MWh.
Europe Stock Movers
Melrose Industries PLC increased 6.3% to 520.20 pence after the parent company GKN Aerospace said revenue for the four-month period ending in October increased 7%.
The company also reiterated its annual outlook for the remainder of the year.
Elementis plc increased 0.3% to 135.40 pence, and the specialty chemical company said its chief executive officer Paul Waterman would step down after nine years in the office.
Vivendi SE declined 1.6% to €8.94, and the French media company announced its expectations of revenue for its television business.
The company is set to separate its Canal+, Havas, and Louis Hachette Group on the London Stock Exchange on December 16 following the shareholder vote on December 9.
The company forecast Canal+ revenue growth in 2024 to match the rate in 2023, but the revenue in 2025 will be negatively impacted by the termination of its free-to-air channel C8 and the ending of expensive third-party content contracts.
Japan Indexes Weighed Down by Rate Path Worries, Core Machinery Orders Fell In September
Akira Ito
18 Nov, 2024
Tokyo
Stock market indexes in Tokyo declined following losses in Friday's trading in New York.
The Nikkei average and the Topix index fell more than 0.7% amid worry about the interest rate path in the near future.
Last week, U.S. Fed Chair Jerome Powell said there is no urgency in lowering rates in the imminent future, citing strong economic growth.
Powell's comments raised the prospects of fewer and smaller rate cuts over the next three months, weighing on the market sentiment.
The yen dropped to 154.55 against the U.S. dollar on the worry that the Bank of Japan may continue its gradual approach in raising interest rates.
Currency traders are bracing for the yen to sink to as low as 165 against the U.S. dollar if rising trade tensions between China and the U.S. lead to competitive currency devaluation in the region.
Investors also reacted negatively to a surprise decline in Japan's machinery orders in September.
Core machinery orders, which exclude large and volatile orders for ships and power equipment, declined 4.8% from a year ago in September.
Core machinery orders decline accelerated from a fall of 3.4% in August, according to an update released by the Cabinet Office.
On a monthly basis, core orders declined for the third month in a row and fell 0.7% to 852 billion yen in September.
Japan Stock Movers
The Nikkei 225 Stock Average declined 1% to 38,238.42 and decreased 0.7% to 2,693.09.
Semiconductor-linked equipment makers led the decliners in Tokyo trading.
Tokyo Electron declined 1.8% to ¥21,945.0, Screen Holdings fell 1.9% to ¥9,342.0, Lasertec dropped 2.9% to ¥17,700.0, and Advantest decreased 0.4% to ¥9,100.0.
Sumitomo Mitsui Financial declined 2% to ¥3,558.0, Mitsubishi UFJ Financial decreased 0.7% to ¥1,810.50, and Mizuho Financial fell 0.6% to ¥3,742.0.
Dentsu Group dropped 10.5% to ¥3,687.0 after the advertising company reported mixed quarterly results.
The company reported a modest 0.3% increase in revenue in the third quarter but also revised its annual outlook to flat from the previous estimate of a 1% increase.
Chugai Pharmaceutical plunged 10.1% to ¥6,427.0, and Otsuka Holdings decreased 4% to ¥8,758.0.
Ryohin Keikaku gained 5.5% to ¥2,938.0, M3 added 5.6% to ¥1,320.0, Taise advanced 2.5% to ¥6,746.0, and Mercari increased 3.2% to ¥1,987.0.
Japan Indexes Weighed Down by Rate Path Worries, Core Machinery Orders Fell In September
Akira Ito
18 Nov, 2024
Tokyo
Stock market indexes in Tokyo declined following losses in Friday's trading in New York.
The Nikkei average and the Topix index fell more than 0.7% amid worry about the interest rate path in the near future.
Last week, U.S. Fed Chair Jerome Powell said there is no urgency in lowering rates in the imminent future, citing strong economic growth.
Powell's comments raised the prospects of fewer and smaller rate cuts over the next three months, weighing on the market sentiment.
The yen dropped to 154.55 against the U.S. dollar on the worry that the Bank of Japan may continue its gradual approach in raising interest rates.
Currency traders are bracing for the yen to sink to as low as 165 against the U.S. dollar if rising trade tensions between China and the U.S. lead to competitive currency devaluation in the region.
Investors also reacted negatively to a surprise decline in Japan's machinery orders in September.
Core machinery orders, which exclude large and volatile orders for ships and power equipment, declined 4.8% from a year ago in September.
Core machinery orders decline accelerated from a fall of 3.4% in August, according to an update released by the Cabinet Office.
On a monthly basis, core orders declined for the third month in a row and fell 0.7% to 852 billion yen in September.
Japan Stock Movers
The Nikkei 225 Stock Average declined 1% to 38,238.42 and decreased 0.7% to 2,693.09.
Semiconductor-linked equipment makers led the decliners in Tokyo trading.
Tokyo Electron declined 1.8% to ¥21,945.0, Screen Holdings fell 1.9% to ¥9,342.0, Lasertec dropped 2.9% to ¥17,700.0, and Advantest decreased 0.4% to ¥9,100.0.
Sumitomo Mitsui Financial declined 2% to ¥3,558.0, Mitsubishi UFJ Financial decreased 0.7% to ¥1,810.50, and Mizuho Financial fell 0.6% to ¥3,742.0.
Dentsu Group dropped 10.5% to ¥3,687.0 after the advertising company reported mixed quarterly results.
The company reported a modest 0.3% increase in revenue in the third quarter but also revised its annual outlook to flat from the previous estimate of a 1% increase.
Chugai Pharmaceutical plunged 10.1% to ¥6,427.0, and Otsuka Holdings decreased 4% to ¥8,758.0.
Ryohin Keikaku gained 5.5% to ¥2,938.0, M3 added 5.6% to ¥1,320.0, Taise advanced 2.5% to ¥6,746.0, and Mercari increased 3.2% to ¥1,987.0.
A Rebound In Bank Stocks Leads China Indexes Higher
Li Chen
18 Nov, 2024
Hong Kong
Stock market indexes in mainland China and Hong Kong advanced following a rise in banks and tech stocks.
The Hang Seng index advanced 1%, and the mainland-focused CSI 300 index added 0.9%, but market sentiment remained shaky amid rising geopolitical tensions.
Market indexes have been under pressure over the last seven weeks after politicians and policymakers failed to follow through with "whatever it takes" fiscal stimulus.
In addition, market sentiment was shaky on the worry that the next U.S. administration is likely to ramp up trade tariffs on goods made in China and made by Chinese companies in Vietnam, Malaysia, and Mexico.
Banks traded higher after the China Securities Regulatory Commission urged banks to disclose plans to lift their stock prices above the book value.
The regulatory agency released a statement after the market close on Friday and urged company boards to take an active role in lifting their stock prices.
Over the last 12 years, leading nine Chinese banks have traded below their book value, reflecting investor concerns about lurking bad loans in the property sector and obligations to the central government for national priority projects.
Of the total of 29 banks traded in mainland China, about 22 are trading below their book value as investors worry that bad loans issued to state-controlled property developers are not fully reflected in their financial statements.
China Stock Movers
The Hang Seng index increased 1% to 19,619.87, and the mainland-focused CSI 300 index advanced 0.9% to 4,002.89.
China Merchants Bank increased 0.7% to ¥38.11, ICBC gained 2.9% to HK $4.72, China Construction Bank gained 0.6% to HK $6.03, and Bank of China added 3.9% to HK $3.75.
Property stocks traded higher in the hopes of additional reforms from the People's Bank of China and policymakers.
China Vanke increased 2.5% to HK $6.56, China Resources Land gained 1.7% to HK $24.05, and Longfor Group Holdings edged up 0.3% to HK $11.40.
Alibaba Group Holding declined 1.9% to HK $85.60 after the e-commerce platform operator reported weaker-than-expected quarterly results.
JD.com jumped 4% to HK $138.0, and Tencent Holdings advanced 0.8% to HK $404.20.
A Rebound In Bank Stocks Lead China Indexes Higher
Li Chen
18 Nov, 2024
Hong Kong
Stock market indexes in mainland China and Hong Kong advanced following a rise in banks and tech stocks.
The Hang Seng index advanced 1%, and the mainland-focused CSI 300 index added 0.9%, but market sentiment remained shaky amid rising geopolitical tensions.
Market indexes have been under pressure over the last seven weeks after politicians and policymakers failed to follow through with "whatever it takes" fiscal stimulus.
In addition, market sentiment was shaky on the worry that the next U.S. administration is likely to ramp up trade tariffs on goods made in China and made by Chinese companies in Vietnam, Malaysia, and Mexico.
Banks traded higher after the China Securities Regulatory Commission urged banks to disclose plans to lift their stock prices above the book value.
The regulatory agency released a statement after the market close on Friday and urged company boards to take an active role in lifting their stock prices.
Over the last 12 years, leading nine Chinese banks have traded below their book value, reflecting investor concerns about lurking bad loans in the property sector and obligations to the central government for national priority projects.
Of the total of 29 banks traded in mainland China, about 22 are trading below their book value as investors worry that bad loans issued to state-controlled property developers are not fully reflected in their financial statements.
China Stock Movers
The Hang Seng index increased 1% to 19,619.87, and the mainland-focused CSI 300 index advanced 0.9% to 4,002.89.
China Merchants Bank increased 0.7% to ¥38.11, ICBC gained 2.9% to HK $4.72, China Construction Bank gained 0.6% to HK $6.03, and Bank of China added 3.9% to HK $3.75.
Property stocks traded higher in the hopes of additional reforms from the People's Bank of China and policymakers.
China Vanke increased 2.5% to HK $6.56, China Resources Land gained 1.7% to HK $24.05, and Longfor Group Holdings edged up 0.3% to HK $11.40.
Alibaba Group Holding declined 1.9% to HK $85.60 after the e-commerce platform operator reported weaker-than-expected quarterly results.
JD.com jumped 4% to HK $138.0, and Tencent Holdings advanced 0.8% to HK $404.20.
India Indexes Extend Losses; Grasim, Crompton Greaves, and EID Parry In Focus After Results
Arun Goswami
18 Nov, 2024
Mumbai
Stocks opened lower in Mumbai trading amid weak market sentiment for the third week in a row.
The Sensex index decreased 0.4% to 77,263.74, and the Nifty index dropped 0.45% to 23,439.05.
Foreign investors continue to sell large- and mid-cap stocks after weak earnings and persistent inflation dented market sentiment.
Moreover, foreign investors are repatriating funds to the U.S. to take advantage of rising bond yields and hope that the next U.S. administration will enact pro-business policies.
Foreign investors are also hoping that China's leaders will follow through on the promised broad fiscal reforms to support consumer sentiment and the flailing property market.
Closer to home, consumer price inflation jumped to a 14-month high in October, supporting the case for the central bank to keep interest rates unrevised at its next policy meeting.
Meanwhile, investors are looking forward to the Maharashtra State election on December 20, which could deliver a win to an alliance headed by the BJP, strengthening the party's standing in the center.
E.I.D. Parry decreased 2.4% to ₹762.45 after the sugar company reported mixed quarterly results.
Revenue in the September quarter increased to ₹9,399.3 crore from ₹9,210.3 crore, but after-tax income decreased to ₹591.7 crore from ₹781.9 crore a year ago, respectively.
For the six-month period ending in September, consolidated revenue edged lower to ₹16,206.71 crore from ₹16,225.8 crore, and net income fell to ₹817.5 crore from ₹1,106.7 crore a year ago.
Easy Trip Planners increased 1.1% to ₹30.38 after the Delhi-based online travel agency reported a decline in after-tax profit in the September quarter.
Consolidated revenue increased 2.1% to ₹144.7 crore from ₹141.7 crore, but net profit declined 45.2% to ₹26 crore from ₹47.1 crore a year ago, respectively.
Hotel night bookings soared 75.3% 2.2 lakh or 1.3 lakh and train and bus bookings rose 3.3% to 2.8 lakh from a year ago, respectively.
Gross booking revenue across the platform increased to ₹2,075.6 crore from ₹2,025 crore, and hotels and packages jumped 178% to ₹241.4 crore a year ago, respectively.
The company's booking services generally receive very low ratings from online customers, with several allegations of poor customer support and misleading prices.
Hindustan Zinc increased 0.4% to ₹496.90, and the company won gold mining rights through an auction in Rajasthan.
Crompton Greaves Consumer Electricals increased 3.9% to ₹384.50 after the company reported September quarter results.
Revenue increased 6.4% to 1,896 crore from 1,782.3 crore, and net income jumped 28.6% to 125 crore from 97.2 crore a year ago, respectively.
Delhivery decreased 1.0% to ₹327.30, and the logistics company swung to profit in the September quarter.
Revenue increased 12.8% to ₹2,189.7 crore, and net income swung to a profit of ₹10.2 crore from a loss of ₹102.9 crore a year ago, respectively.
Grasim Industries declined 1% to ₹2,499.75 after the cement company reported a sharp fall in profit in the September quarter.
Revenue increased 11% to ₹33,562 crore from ₹30,221 crore, and net income plunged 66% to ₹390 crore from ₹1,164 crore a year ago, respectively.