Market Update
U.S. New Single-family House Sales Dropped In August
Brian Turner
25 Sep, 2024
Washington, D.C.
The sale of single-family houses in August declined 4.7% from the previous month to a seasonally adjusted annual rate of 716,000, the U.S. Census Bureau and the Department of Housing and Urban Development reported Wednesday.
The single-family house sale declined from July's revised rate of 751,000 but is 9.8% higher than the estimate of 652,00 in August of last year.
The new home supply decreased by 1.3% from a year ago and rose by 6.8% from the previous month to 7.8 months of supply at the current sales rate.
The median sales price of new houses sold in August 2024 was $420,600, and the average price was $492,700.
Single-family house sales in August declined from the previous month, driven by the decline in the West, Northeast, and Midwest but an increase in the South.
Home sales in the Northeast decreased 27.3% to 24,000, in the Midwest declined 5.8% to 81,000, in the West fell 17.8% to 152,000, but in the South rose 2.7% to 459,000.
Wall Street Indexes Wavered Near Record Highs, Global Markets Retained Upward Bias
Alexander Garcia
25 Sep, 2024
Miami
Stock market indexes on Wall Street traded around the flatline as investors reassessed the economic outlook and future rate path.
The S&P 500 index and the Nasdaq Composite advanced a fraction, and the yields on Treasury notes edged slightly lower as investors debated labor market conditions and economic growth outlook.
Benchmark indexes are set to close higher in September, and the Dow Jones Industrial Average and the S&P 500 index traded near record highs reached in the previous session.
The Nasdaq Composite is down about 4% from its record high, as the two-month rally in artificial intelligence-linked stocks and mega-cap stocks came to an abrupt halt in August.
Investors cheered the Fed's latest move to lower its policy rate by 50 basis points, surprising many economists, as the central bank attempted to engineer a so-called soft landing and avoid a recession.
However, despite the Fed's move to lower its interest rate range, inflation is well-anchored in the economy, and service sector inflation is well above the Fed's target rate of 2%.
Moreover, elevated housing inflation continues to keep core inflation near 3%.
U.S. New Single-family House Sales Dropped In August
The sale of single-family houses in August declined 4.7% from the previous month to a seasonally adjusted annual rate of 716,000, the U.S. Census Bureau and the Department of Housing and Urban Development reported Wednesday.
The single-family house sale declined from July's revised rate of 751,000 but is 9.8% higher than the estimate of 652,00 in August of last year.
The new home supply decreased by 1.3% from a year ago and rose by 6.8% from the previous month to 7.8 months of supply at the current sales rate.
The median sales price of new houses sold in August 2024 was $420,600, and the average price was $492,700.
U.S. Indexes and Treasury Yields
The S&P 500 index decreased 0.1% to 5,726.83, the Nasdaq Composite rose 0.1% to 18,083.80, and the Russell 2000 index fell 0.5% to 2,214.05.
The yield on 2-year Treasury notes edged lower to 3.54%, 10-year Treasury notes inched up to 3.76%, and 30-year Treasury bonds inched higher to 4.12%.
WTI crude oil increased $1.39 to $70.16 a barrel, and natural gas prices edged up 7 cents to $2.62 a thermal unit.
Gold fell by $0.05 to $2,658.20 an ounce, and silver decreased by $0.25 to $31.87.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 100.31.
U.S. Stock Movers
SAP SE declined 2.5% to $225.27 after the German software company's chief financial officer confirmed in an interview with CNBC that the company is being investigated by the U.S. Department of Justice for alleged price-fixing practices.
KB Home declined 3.9% to $83.99 after the home builder reported weaker-than-expected results in its latest quarter.
Progress Software surged 12% to $64.01 after the insurance company reported better-than-expected adjusted earnings and revenue in the fiscal third quarter.
Bank of America Corp. declined 0.5% to $39.27, and Warren Buffett-controlled Berkshire Hathaway continued to reduce its holding in the bank.
Berkshire Hathaway has now sold $9 billion of Bank of America's stock and lowered its holding to 10.5%.
China-linked ADRs were in focus for the second day in a row after the People's Bank of China announced additional measures to support economic expansion.
The central bank lowered its one-year loan prime rate, used for loans to financial institutions, by 30 basis points to 2.0%.
JD.com decreased 3.5% to $32.70, Tencent Holdings dropped 1.6% to $52.60, and Alibaba Group declined 2.2% to $95.05.
Artificial intelligence-linked stocks advanced amid growing speculation that the demand is running ahead of the supply.
Nvidia increased 2.2% to $123.41, Qualcomm edged up 0.1% to $167.30, AMD added 0.8% to $159.56, and Micron Technology edged higher 0.9% to $94.84.
European Markets Turned Down, Sweden Lowered Rates and Spain's Producer Price Deflation Decelerated
European stock market indexes hovered near recent highs as investors reviewed the latest policy decisions from Sweden and China.
Benchmark indexes in Paris, London, and Frankfurt traded around the flatline amid improving sentiment for the global economic outlook, but elevated tensions in the Middle East kept investors on edge.
Crude oil traded near a two-week high after fears of a wider war in the Middle East rose after Israel bombed more territories controlled by Hezbollah in southern Lebanon.
The latest Israel's bombing campaign has killed more than 500 people, including 35 children, and about 10,00 people have been displaced, and President Benjamin Netanyahu said that the current campaign is necessary to "restore the security balance."
On the economic front, Sweden's Riksbank lowered its benchmark rate by 25 basis points to 3.25% after the policy meeting today.
The Riksbank lowered the rates after the policy meeting today and signaled additional rate cuts of at least 50 basis points over the next two policy meetings if the outlook for inflation and economic growth remains unchanged.
The central bank lowered the rate by 25 basis points after the policy meeting in May and August.
Spain's producer price deflation extended to the 18th month in a row to August, but prices fell at the slowest pace over the period.
The annual producer price index decreased 1.3% in August following the revised 1.6% fall in the previous month.
Vehicle and luxury goods makers were in focus for the second day in a row after the People's Bank of China lowered its 1-year loan prime rate by 30 basis points to 2.0% after holding it steady only days ago.
The latest move follows a string of broad range of monetary policy decisions announced by the central bank on Tuesday to revive economic growth, increase investor confidence, and facilitate more property transactions.
Europe Indexes and Yields
The DAX index decreased by 0.4% to 18,923.10; the CAC-40 index fell by 0.5% to 7,565.62; and the FTSE 100 index fell by 0.2% to 8,268.70.
The yield on 10-year German bonds edged higher to 2.17%, French bonds inched lower to 2.92%, the UK gilts edged up to 3.97%, and Italian bonds decreased to 3.50%.
The euro edged lower to $1.11; the British pound inched higher to $1.33; and the U.S. dollar weakened to 84.88 Swiss cents.
Brent crude decreased $1.16 to $74.06 a barrel, and the Dutch TTF natural gas fell by €1.10 to €37.41 per MWh.
Europe Stock Movers
Rightmove Plc dropped 1.3% to 674.0 pence, and the online property platform's board unanimously rejected the revised takeover offer from Australia's REA Group and said the offer "materially undervalues" the company.
Valmet Oyj soared 10.3% to €27.87, and the Finnish pulp and paper production automation company won an order worth more than one billion euros in Brazil.
UniCredit SpA jumped 1.9% to €37.99, and the Italian bank said it has initiated internalizing its life insurance business and terminated its partnership with Allianz S.p.A. and CNP Assurances SA.
Orange SA decreased 0.1% to €10.69, and the French mobile telephone company said it has voluntarily decided to terminate its listing on the New York Stock Exchange.
SAP SE declined 2.3% to €201.40 after the German software company's chef financial officer confirmed in an interview with CNBC that the company is investigated by the U.S. Justice Department for alleged price-fixing practices.
Luxury stocks advanced for the second day in a row after China announced more monetary stimulus measures.
LVMH increased 0.3% to €616.10, Hermes International SCA gained 1.3% to €2,038.0, and Kering SA added 0.8% to €230.75.
Japan Stock Indexes Halt a 4-Day Rally, Yen Slides Ahead of BoJ Minutes and Tokyo Inflation Data
Stock market indexes turned lower near the close of the trading after indexes spent most of the session in the positive territory and halted a 4-day winning streak.
The Nikkei 225 stock average and the Topix index eased 0.2% and erased gains of as much as 0.3%.
The Japanese yen weakened to 143.44 against the dollar after Bank of Japan Governor Kazuo Ueda said on Tuesday that policymakers need time to assess economic developments.
The comments were widely interpreted as the central bank is in no rush to hike rates, and investors shifted their attention to the release of minutes of policy meetings on Thursday and Tokyo-area inflation data on Friday.
In other news in Asia, the People's Bank of China lowered its one-year loan prime rate by 30 basis points to 2.0%, just a day after announcing a list of stimulus measures to revive economic growth and lift market sentiment.
Benchmark indexes in Shanghai and Hong Kong advanced as much as 2.5% before erasing most of the gains by the end of the session.
Market indexes in India and Australia hovered near record highs, and in South Korea they closed down 1%.
Japan Stock Movers
The Nikkei 225 stock average decreased 0.2% to 37,870.26 and the broader Topix index fell 0.2% to 2,650.50.
Financial stocks led the decliners in Tokyo amid a weakness in banks, insurance companies, and financial services providers.
Mitsubishi UFJ Financial declined 2.5% to ¥1,444.50, Sumitomo Mitsui Financial dropped 2.8% to ¥8,882.0, MS&AD dropped 2.9% to ¥3,298.0, and Nomura Holdings declined 2.5% to ¥773.0.
General wholesale trading companies, also known as Sogo Shosha, closed higher.
Marubeni Corp added 1.1% to ¥2,366.0, Itochu fell 0.9% to ¥7,689.0, Mitsui & Company advanced 2.4% to ¥3,172.0, and Mitsubishi Corp added 0.9% to ¥2,987.50.
Nippon Steel Corp. gained 0.8% to ¥3,236.0, and the steelmaker said it plans to pursue the acquisition of U.S. Steel despite the political pushback ahead of the upcoming presidential election in the U.S.
China Indexes Extend Rally to Second Consecutive Day, PBoC Lowered 1-Year Loan Rates
Stocks rallied for the second day in a row as investors cheered wide aggressive stimulus measures released by the Bank of China.
The Hang Seng index rose as much as 2.5% and the CSI 300 index advanced 2.2% after the central bank announced additional steps on Wednesday.
The People's Bank of China lowered its one-year medium-term lending rate to 2.0% from 2.3%, the rate used to load money to financial institutions.
The latest move follows a raft of measures released by the central bank on Tuesday, ahead of the week of the National Holiday, to revive the faltering economic growth and moribund property market.
On Tuesday, the central bank lowered its reserve requirement for commercial banks by 50 basis points, trimmed mortgage loan rates on existing loans to 50 basis points, and lowered the down payment requirement to 15% for the purchase of a second home.
Moreover, the central bank also set up a fund of one trillion yuan to facilitate the purchase of stocks by institutional investors and revive investor confidence.
The wide-ranging stimulus measures by the central bank were welcomed by investors, but these measures are likely to fall short without additional fiscal measures amid weak consumer demand.
For now, investors lapped up stocks of real estate developers and high-risk tech stocks amid rising confidence that the central government is serious about reviving economic growth and the property market.
China Movers
The Hang Seng index increased 1.1% to 19,211.15, and the mainland-focused CSI 300 index advanced 1.5% to 3,400.47.
Tech stocks and property developers extended their rally for the second day in a row.
JD.com advanced 1.9% to HK $127.0, Alibaba Group rose 0.2% to HK $92.15, Baidu.com increased 1% to HK $89.80.
China Vanke added 1.9% to HK $4.77, China Resource Land decreased 1.5% to HK $22.05, and Longfor Group added 0.7% to $9.31.
CATL increased 2.2% to ¥203.30, Kweichow Moutai advanced 2.1% to ¥1,401.90, and AIA Group added 2.2% to HK $60.95.
U.S. Movers: Bank of America, China ADRs, KB Home, Progress Software, SAP
Scott Peters
25 Sep, 2024
New York City
SAP SE declined 2.5% to $225.27 after the German software company's chief financial officer confirmed in an interview with CNBC that the company is being investigated by the U.S. Department of Justice for alleged price-fixing practices.
KB Home declined 3.9% to $83.99 after the home builder reported weaker-than-expected results in its latest quarter.
Progress Software surged 12% to $64.01 after the insurance company reported better-than-expected adjusted earnings and revenue in the fiscal third quarter.
Bank of America Corp. declined 0.5% to $39.27, and Warren Buffett-controlled Berkshire Hathaway continued to reduce its holding in the bank.
Berkshire Hathaway has now sold $9 billion of Bank of America's stock and lowered its holding to 10.5%.
China-linked ADRs were in focus for the second day in a row after the People's Bank of China announced additional measures to support economic expansion.
The central bank lowered its one-year loan prime rate, used for loans to financial institutions, by 30 basis points to 2.0%.
JD.com decreased 3.5% to $32.70, Tencent Holdings dropped 1.6% to $52.60, and Alibaba Group declined 2.2% to $95.05.
Artificial intelligence-linked stocks advanced amid growing speculation that the demand is running ahead of the supply.
Nvidia increased 2.2% to $123.41, Qualcomm edged up 0.1% to $167.30, AMD added 0.8% to $159.56, and Micron Technology edged higher 0.9% to $94.84.
S&P 500 and Dow Jones Trades Around Record Highs, Nasdaq Composite Approaches Record Reached In July
Barry Adams
25 Sep, 2024
New York City
Stock market indexes on Wall Street traded around the flatline as investors reassessed the Fed's supersized rate cut last week.
The S&P 500 index and the Nasdaq Composite advanced a fraction, and the yields on Treasury notes edged slightly lower as investors debated labor market conditions and economic growth outlook.
Benchmark indexes are set to close higher in September, and the Dow Jones Industrial Average and the S&P 500 index traded near record highs reached in the previous session.
The Nasdaq Composite is down about 4% from its record high, as the two-month rally in artificial intelligence-linked stocks and mega-cap stocks came to an abrupt halt in August.
Investors cheered the Fed's latest move to lower its policy rate by 50 basis points, surprising many economists, as the central bank attempted to engineer a so-called soft landing and avoid a recession.
However, despite the Fed's move to lower its interest rate range, inflation is well-anchored in the economy, and service sector inflation is well above the Fed's target rate of 2%, and housing inflation continues to keep overall inflation at elevated levels.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.1% to 5,736.02, the Nasdaq Composite rose 0.2% to 18,111.79, and the Russell 2000 index fell 0.2% to 2,218.44.
The yield on 2-year Treasury notes edged lower to 3.54%, 10-year Treasury notes inched up to 3.76%, and 30-year Treasury bonds inched higher to 4.12%.
WTI crude oil increased $0.75 to $70.81 a barrel, and natural gas prices edged up 6 cents to $2.61 a thermal unit.
Gold rose by $6.06 to $2,664.88 an ounce, and silver decreased by $0.26 to $31.89.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 100.31.
U.S. Stock Movers
SAP SE declined 2.5% to $225.27 after the German software company's chief financial officer confirmed in an interview with CNBC that the company is being investigated by the U.S. Department of Justice for alleged price-fixing practices.
KB Home declined 3.9% to $83.99 after the home builder reported weaker-than-expected results in its latest quarter.
Progress Software surged 12% to $64.01 after the insurance company reported better-than-expected adjusted earnings and revenue in the fiscal third quarter.
Bank of America Corp. declined 0.5% to $39.27, and Warren Buffett-controlled Berkshire Hathaway continued to reduce its holding in the bank.
Berkshire Hathaway has now sold $9 billion of Bank of America's stock and lowered its holding to 10.5%.
China-linked ADRs were in focus for the second day in a row after the People's Bank of China announced additional measures to support economic expansion.
The central bank lowered its one-year loan prime rate, used for loans to financial institutions, by 30 basis points to 2.0%.
JD.com decreased 3.5% to $32.70, Tencent Holdings dropped 1.6% to $52.60, and Alibaba Group declined 2.2% to $95.05.
Artificial intelligence-linked stocks advanced amid growing speculation that the demand is running ahead of the supply.
Nvidia increased 2.2% to $123.41, Qualcomm edged up 0.1% to $167.30, AMD added 0.8% to $159.56, and Micron Technology edged higher 0.9% to $94.84.
Europe Movers: Luxury Stocks, Orange, Rightmove, SAP, Unicredit, Valmet
Inga Muller
25 Sep, 2024
Frankfurt
The central bank in Sweden lowered its key lending rate by 25 basis points and held out for more cuts later in the year.
Spain's producer price deflation extended to the 18th month in a row in August.
The DAX index decreased by 0.2% to 18,947.99; the CAC-40 index fell by 0.2% to 7,587.11; and the FTSE 100 index rose by 0.3% to 8,307.63.
The yield on 10-year German bonds edged higher to 2.17%, French bonds inched lower to 2.92%, the UK gilts edged up to 3.97%, and Italian bonds decreased to 3.50%.
Rightmove Plc dropped 1.3% to 674.0 pence, and the online property platform's board unanimously rejected the revised takeover offer from Australia's REA Group and said the offer "materially undervalues" the company.
Valmet Oyj soared 10.3% to €27.87, and the Finnish pulp and paper production automation company won an order worth more than one billion euros in Brazil.
UniCredit SpA jumped 1.9% to €37.99, and the Italian bank said it has initiated internalizing its life insurance business and terminated its partnership with Allianz S.p.A. and CNP Assurances SA.
Orange SA decreased 0.1% to €10.69, and the French mobile telephone company said it has voluntarily decided to terminate its listing on the New York Stock Exchange.
SAP SE declined 2.3% to €201.40 after a report suggested that the German software company is investigated by the U.S. regulatory authorities for alleged price-fixing practices.
Luxury stocks advanced for the second day in a row after China announced more monetary stimulus measures.
LVMH increased 0.3% to €616.10, Hermes International SCA gained 1.3% to €2,038.0, and Kering SA added 0.8% to €230.75.
European Markets Turned Down, Sweden Lowered Rates and Spain's Producer Price Deflation Decelerated
Bridgette Randall
25 Sep, 2024
London
European stock market indexes hovered near recent highs as investors reviewed the latest policy decisions from Sweden and China.
Benchmark indexes in Paris, London, and Frankfurt traded around the flatline amid improving sentiment for the global economic outlook, but elevated tensions in the Middle East kept investors on edge.
Crude oil traded near a two-week high after fears of a wider war in the Middle East rose after Israel bombed more territories controlled by Hezbollah in southern Lebanon.
The latest Israel's bombing campaign has killed more than 500 people, including 35 children, and about 10,00 people have been displaced, and President Benjamin Netanyahu said that the current campaign is necessary to "restore the security balance."
On the economic front, Sweden's Riksbank lowered its benchmark rate by 25 basis points to 3.25% after the policy meeting today.
The Riksbank lowered the rates after the policy meeting today and signaled additional rate cuts of at least 50 basis points over the next two policy meetings if the outlook for inflation and economic growth remains unchanged.
The central bank lowered the rate by 25 basis points after the policy meeting in May and August.
Spain's producer price deflation extended to the 18th month in a row to August, but prices fell at the slowest pace over the period.
The annual producer price index decreased 1.3% in August following the revised 1.6% fall in the previous month.
Vehicle and luxury goods makers were in focus for the second day in a row after the People's Bank of China lowered its 1-year loan prime rate by 30 basis points to 2.0% after holding it steady only days ago.
The latest move follows a string of broad range of monetary policy decisions announced by the central bank on Tuesday to revive economic growth, increase investor confidence, and facilitate more property transactions.
Europe Indexes and Yields
The DAX index decreased by 0.2% to 18,947.99; the CAC-40 index fell by 0.2% to 7,587.11; and the FTSE 100 index rose by 0.3% to 8,307.63.
The yield on 10-year German bonds edged higher to 2.17%, French bonds inched lower to 2.92%, the UK gilts edged up to 3.97%, and Italian bonds decreased to 3.50%.
The euro edged lower to $1.11; the British pound inched higher to $1.33; and the U.S. dollar weakened to 84.88 Swiss cents.
Brent crude decreased $0.86 to $74.29 a barrel, and the Dutch TTF natural gas fell by €0.51 to €36.63 per MWh.
Europe Stock Movers
Rightmove Plc dropped 1.3% to 674.0 pence, and the online property platform's board unanimously rejected the revised takeover offer from Australia's REA Group and said the offer "materially undervalues" the company.
Valmet Oyj soared 10.3% to €27.87, and the Finnish pulp and paper production automation company won an order worth more than one billion euros in Brazil.
UniCredit SpA jumped 1.9% to €37.99, and the Italian bank said it has initiated internalizing its life insurance business and terminated its partnership with Allianz S.p.A. and CNP Assurances SA.
Orange SA decreased 0.1% to €10.69, and the French mobile telephone company said it has voluntarily decided to terminate its listing on the New York Stock Exchange.
SAP SE declined 2.3% to €201.40 after the German software company's chef financial officer confirmed in an interview with CNBC that the company is investigated by the U.S. Justice Department for alleged price-fixing practices.
Luxury stocks advanced for the second day in a row after China announced more monetary stimulus measures.
LVMH increased 0.3% to €616.10, Hermes International SCA gained 1.3% to €2,038.0, and Kering SA added 0.8% to €230.75.
Japan Stock Indexes Halt a 4-Day Rally, Yen Slides Ahead of BoJ Minutes and Tokyo Inflation Data
Akira Ito
25 Sep, 2024
Tokyo
Stock market indexes turned lower near the close of the trading after indexes spent most of the session in the positive territory and halted a 4-day winning streak.
The Nikkei 225 stock average and the Topix index eased 0.2% and erased gains of as much as 0.3%.
The Japanese yen weakened to 143.44 against the dollar after Bank of Japan Governor Kazuo Ueda said on Tuesday that policymakers need time to assess economic developments.
The comments were widely interpreted as the central bank is in no rush to hike rates, and investors shifted their attention to the release of minutes of policy meetings on Thursday and Tokyo-area inflation data on Friday.
In other news in Asia, the People's Bank of China lowered its one-year loan prime rate by 30 basis points to 2.0%, just a day after announcing a list of stimulus measures to revive economic growth and lift market sentiment.
Benchmark indexes in Shanghai and Hong Kong advanced as much as 2.5% before erasing most of the gains by the end of the session.
Market indexes in India and Australia hovered near record highs, and in South Korea they closed down 1%.
Japan Stock Movers
The Nikkei 225 stock average decreased 0.2% to 37,870.26 and the broader Topix index fell 0.2% to 2,650.50.
Financial stocks led the decliners in Tokyo amid a weakness in banks, insurance companies, and financial services providers.
Mitsubishi UFJ Financial declined 2.5% to ¥1,444.50, Sumitomo Mitsui Financial dropped 2.8% to ¥8,882.0, MS&AD dropped 2.9% to ¥3,298.0, and Nomura Holdings declined 2.5% to ¥773.0.
General wholesale trading companies, also known as Sogo Shosha, closed higher.
Marubeni Corp added 1.1% to ¥2,366.0, Itochu fell 0.9% to ¥7,689.0, Mitsui & Company advanced 2.4% to ¥3,172.0, and Mitsubishi Corp added 0.9% to ¥2,987.50.
Nippon Steel Corp. gained 0.8% to ¥3,236.0, and the steelmaker said it plans to pursue the acquisition of U.S. Steel despite the political pushback ahead of the upcoming presidential election in the U.S.
China Indexes Extend Rally to Second Consecutive Day, PBoC Lowered 1-Year Loan Rates
Li Chen
25 Sep, 2024
Hong Kong
Stocks rallied for the second day in a row as investors cheered wide aggressive stimulus measures released by the Bank of China.
The Hang Seng index rose as much as 2.5% and the CSI 300 index advanced 2.2% after the central bank announced additional steps on Wednesday.
The People's Bank of China lowered its one-year medium-term lending rate to 2.0% from 2.3%, the rate used to load money to financial institutions.
The latest move follows a raft of measures released by the central bank on Tuesday, ahead of the week of the National Holiday, to revive the faltering economic growth and moribund property market.
On Tuesday, the central bank lowered its reserve requirement for commercial banks by 50 basis points, trimmed mortgage loan rates on existing loans to 50 basis points, and lowered the down payment requirement to 15% for the purchase of a second home.
Moreover, the central bank also set up a fund of one trillion yuan to facilitate the purchase of stocks by institutional investors and revive investor confidence.
The wide-ranging stimulus measures by the central bank were welcomed by investors, but these measures are likely to fall short without additional fiscal measures amid weak consumer demand.
For now, investors lapped up stocks of real estate developers and high-risk tech stocks amid rising confidence that the central government is serious about reviving economic growth and the property market.
China Movers
The Hang Seng index increased 1.1% to 19,211.15, and the mainland-focused CSI 300 index advanced 1.5% to 3,400.47.
Tech stocks and property developers extended their rally for the second day in a row.
JD.com advanced 1.9% to HK $127.0, Alibaba Group rose 0.2% to HK $92.15, Baidu.com increased 1% to HK $89.80.
China Vanke added 1.9% to HK $4.77, China Resource Land decreased 1.5% to HK $22.05, and Longfor Group added 0.7% to $9.31.
CATL increased 2.2% to ¥203.30, Kweichow Moutai advanced 2.1% to ¥1,401.90, and AIA Group added 2.2% to HK $60.95.
India Movers: BGR Energy, Cartrade Tech, NMDC, Tata Power
Arun Goswami
25 Sep, 2024
Mumbai
Stocks in Mumbai struggled to advance amid mixed global cues, and the rupee edged lower following the general weakness in the U.S. dollar.
The Sensex index increased by 0.01% to 84,921.82, and the Nifty index fell by 0.2% to 25,934.65.
On the Mumbai stock exchange, 135 stocks traded at their 52-week highs, and 19 stocks traded at their 52-week lows.
Tata Power Company increased 3.5% to ₹468.75, and the company said its power operations are going to be disrupted at its Trombay Power Plant because of a fire.
The company also confirmed that the Mumba-based power production facilities carry "adequate" insurance to cover potential expenses.
NMDC increased 0.8% to ₹225.80, and the fourth-largest iron ore company in the world said iron ore production and sales in the fiscal year 2024 advanced.
NMDC's annual production increased 10% to record 45 million tons in its latest financial year, the first company to reach that milestone in India, CMD Amitava Mukherjee said at the company's 66th annual general meeting.
Sales in the year also increased 16% to 44.48 million tons.
Revenue in the fiscal year 2024 rose by 21% to 21,294 crores, and after-tax profit increased by 2% to 5,632 crores, driven by an increase of 28% in operating earnings.
BGR Energy Systems declined 2% to ₹50.34, and the securities regulator, SEBI, imposed a fine of ₹9 lakh for regulatory lapses.
Cartrade Tech gained 2.9% to ₹1,008.25, and a fund controlled by Warburg Pincus sold its 8.64% stake in the company for ₹375 crore.
A mutual fund controlled by Mirae Asset Management acquired a 6.4% stake, and the remaining stocks were sold through open market transactions.
U.S. and World Markets Scale Higher After China Unleashed Aggressive Stimulus Measures
Alexander Garcia
24 Sep, 2024
Miami
Stocks overcame morning jitters, and benchmark indexes approached record highs following the 4% surge in artificial intelligence leader Nvidia.
The S&P 500 index and the Nasdaq Composite rose, and investors overlooked the latest update on consumer confidence.
The consumer confidence index decreased to 98.7 in September from the upwardly revised 105.6 in August, the largest decrease since August 2021, The Conference Board said in a report Tuesday.
“Consumers’ assessments of current business conditions turned negative while views of the current labor market situation softened further.
Consumers were also more pessimistic about future labor market conditions and less positive about future business conditions and future income,” Dana Peterson, Conference Board's chief economist, said in a statement.
China-linked stocks advanced between 3% and 7% after the People's Bank of China announced several measures ahead of the holiday week to revive faltering economic growth and property markets.
JD.com, Alibaba Group, Baidu, Tencent Holdings, and Yum China jumped in New York trading.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.2% to 5,729.29, the Nasdaq Composite rose 0.5% to 18,065.96, and the Russell 2000 index rose 0.3% to 2,226.41.
The yield on 2-year Treasury notes edged lower to 3.57%, 10-year Treasury notes inched up to 3.75%, and 30-year Treasury bonds inched higher to 4.11%.
WTI crude oil increased $1.13 to $71.51 a barrel, and natural gas prices edged down 3 cents to $2.57 a thermal unit.
Gold rose by $36.45 to $2,663.40 an ounce, and silver increased by $1.53 to $32.21.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 100.54.
U.S. Stock Movers
Snowflake declined 0.5% to $112.67 after the cloud data management company announced its plans to raise $2 billion through a convertible bond offering.
AAR Corp. decreased 3.8% to $66.33 despite the aviation services provider reporting better-than-expected quarterly results.
The company said revenue in the fiscal first quarter ending in August increased 20% to $661.7 million from $448.4 million, net income swung to a profit of $18 million from a loss of $0.6 million, and diluted earnings per share were 50 cents compared to a loss of 2 cents a year earlier.
Caterpillar jumped 3.8% to $385.08 after the People's Bank of China announced several stimulus measures to revive the faltering economic growth and support investor confidence.
European Markets Traded Higher Following China's Broad Stimulus Measures
European markets traded higher following a broad list of monetary stimulus measures announced by the People's Bank of China.
Benchmark indexes in Paris, London, and Frankfurt advanced after China's central bank announced wide-ranging measures to revive economic growth towards the 5% target rate.
The People's Bank of China lowered its commercial bank reserve ratio by 50 basis points, which would pump about $141 billion of additional liquidity, and lowered existing mortgage loan rates by the same amount that is likely to benefit about 50 million households.
The central bank also said it is ready to lower the reserve ratio requirement by an additional 50 basis points by the year's end, if needed.
The broad set of stimulus measures lifted market indexes in mainland China and in Hong Kong by 4%, and luxury stocks in Paris, London, and Milan advanced following the announcements.
Market enthusiasm was muted after Germany's business morale dropped to an eight-month low in September.
The Ifo Business Climate Indicator decreased to the lowest level since January to 85.4 in September from 85.6 in August.
Europe Indexes and Yields
The DAX index increased by 0.8% to 18,996.43; the CAC-40 index rose by 1.3% to 7,604.01; and the FTSE 100 index rose by 0.3% to 8,282.73.
The yield on 10-year German bonds edged higher to 2.16%, French bonds inched higher to 2.94%, the UK gilts edged up to 3.97%, and Italian bonds decreased to 3.51%.
The euro edged lower to $1.11; the British pound inched higher to $1.33; and the U.S. dollar weakened to 84.82 Swiss cents.
Brent crude increased $1.44 to $75.64 a barrel, and the Dutch TTF natural gas fell by €0.38 to €35.82 per MWh.
Europe Stock Movers
Mining companies and luxury goods makers traded higher after China announced a raft of monetary measures to revive the faltering economic growth rate.
Antofagasta plc rose 6.8% to 1,948.50 pence, Anglo American advanced 6.6% to 2,262.97 pence, and Glencore jumped 4.5% to 402.20 pence.
LVMH gained 3.4% to €614.80, Hermes International jumped 3.8% to €2,007.0, and Kering SA added 3.5% to €232.05.
Crude oil explorers advanced amid rising tensions in the Middle East and general weakness in the U.S. dollar.
BP plc gained 0.1% to 412.25 pence, Shell PLC increased 0.2% to €31.24, and BHP Group Ltd. advanced 4.1% to 2,127.0 pence.
TotalEnergies SE jumped 1.2% to €63.07, and the French energy company signed an agreement to supply 200,000 tons of LNG to HD Hyundai Chemical for seven years starting 2027.
CRH PLC declined 0.1% to 6,838.0 pence, and the company announced the appointment of a new chief executive.
Johnson Matthey PLC advanced 1.4% to 1,500.0 pence after the company said its previously announced stock repurchase plan of £125 million will commence today.
Japan Indexes Edged Higher After Service Growth Accelerated and Manufacturing Contracted In September
Benchmark indexes in Tokyo edged higher after investors returned from a three-day holiday and reviewed the latest policy comments from the Bank of Japan Governor.
The Nikkei 225 stock average and the Topix index gained at least 0.5% in active trading after China announced wide-ranging stimulus measures ahead of the holiday week.
Bank of Japan Governor Kazuo Ueda said that the central bank's policy committee needs time to reassess the economic developments and market moves before adjusting policy measures.
Market participants interpreted brief comments as a sign that the central bank is not in a hurry to raise interest rates.
In addition, investors reviewed the latest updates on manufacturing and service sector activities.
The service sector activities accelerated for the third month in a row and reached a five-month high, and the manufacturing sector contracted for the seventh month in 2024.
The au Jibun Bank Japan Services PMI increased to 53.9 in September from the final 53.7 in August, S&P Global reported in its latest update released on Tuesday.
The au Jibun Bank Japan Manufacturing PMI eased to 49.6 in September from 49.8 in August, S&P Global said in a separate report released Tuesday.
The Japanese yen weakened to 144.37 against the U.S. dollar, and the yield on the Japanese government bond edged lower to 0.81%.
Japan Stock Movers
The Nikkei 225 Stock Averages increased 0.6% to 37,940.59, and the broader Topix index gained 0.5% to 2,656.73.
Tech stocks traded volatile and struggled to advance despite the gains in the sector in overnight trading in New York.
Tokyo Electron, Advantest, Screen Holdings, and Disco Corp. traded in a tight range.
Kawasaki Heavy Industries increased 2.9% to ¥5,568.0, Mitsubishi Heavy Industries jumped 4.3% to ¥1,986.50, and Hitachi Ltd jumped 5% to ¥3,856.0.
Seven & I Holdings decreased 0.4% to ¥2,139.0, Isetan Mitsukoshi advanced 2.6% to ¥2,203.50, and Fast Retailing added 0.3% to ¥47,930.0.
China Indexes Jumped 4% After Monetary Stimulus Measures
Stock market indexes in mainland China and Hong Kong soared as much as 4% after the central bank announced a slew of policy measures to revive economic growth and bolster market sentiment.
The Han Seng index and CSI 300 indexes jumped nearly 4% after the People's Bank of China announced several measures to increase liquidity in the financial system, facilitate new home purchases, and lower the burden on existing home loan borrowers.
The central bank lowered its reserve requirement ratio for commercial banks by 50 basis points to around 6.6%, in a move that is expected to inject one trillion yuan or $141 billion liquidity into the banking system.
Governor Pan Gongsheng, at a press conference, also said that the central bank is prepared to lower the reserve ratio requirement by as much as an additional 50 basis points before the end of the year if needed.
Governor Gongsheng also added that the down payment required for the second home purchase is lowered to 15% from the current 25% and interest rates for existing home loans by 50 basis points that will help about 50 million households or 150 million people, reducing annual household interest payment by 150 billion yuan.
To send a strong signal to financial markets and underscore the importance of the latest measures, the central bank announced measures in a joint conference held with Li Yunze, the minister of the National Administration of Financial Regulation, and Wu Qing, chairman of the China Securities Regulatory Commission.
The central bank plans to set up a loan facility for listed companies, stock brokerage firms, and mutual fund companies to purchase listed stocks and provide additional support to the stock market.
Governor Gongsheng announced that the seven-day repo rate will be lowered to 1.5% from 1.7% and added that the move is expected to lower the medium-term loan rates by 0.3% and the loan prime rate by between 0.2% and 0.25%.
The central bank announced a slew of new measures after the previous fund of 300 billion yuan to support the purchase of unsold residential properties failed to make a dent in the property weakness.
The central bank's delayed measures are not likely to alter the downward trajectory of the stock market in the coming months without additional broad fiscal measures, as weak investor confidence and weakening consumer sentiment dominate trading.
China Stock Movers
The Hang Seng index soared 3.5% to 18,892.29, and the mainland-focused CSI 300 index jumped 3.4% to 3,323.27.
Banks and property stocks soared after the central bank announced wide-ranging measures to stimulate the economy and inject financial liquidity.
China Merchants Bank soared 10.5% to HK $34.30, Bank of China increased 3.1% to HK $3.66, and Industrial and Commercial Bank of China gained 5.2% to HK $4.67.
Ping An Insurance jumped 7.1% to HK $40.45, and China Life Insurance added 6.1% to HK $12.94.
China Resources Land added 5.9% to HK $22.40, China Vanke gained 2.9% to HK $4.69, and Longfor Group Holdings advanced 4.2% to HK $9.14.
U.S. Movers: AAR, China ADRs, Caterpillar, Snowflake
Scott Peters
24 Sep, 2024
New York City
Snowflake declined 0.5% to $112.67 after the cloud data management company announced its plans to raise $2 billion through a convertible bond offering.
AAR Corp. decreased 3.8% to $66.33 despite the aviation services provider reporting better-than-expected quarterly results.
The company said revenue in the fiscal first quarter ending in August increased 20% to $661.7 million from $448.4 million, net income swung to a profit of $18 million from a loss of $0.6 million, and diluted earnings per share were 50 cents compared to a loss of 2 cents a year earlier.
Caterpillar jumped 3.8% to $385.08 after the People's Bank of China announced several stimulus measures to revive the faltering economic growth and support investor confidence.
China-linked stocks advanced between 3% and 7% after the People's Bank of China announced several measures ahead of the holiday week to revive faltering economic growth and property markets.
JD.com, Alibaba Group, Baidu, Tencent Holdings, and Yum China jumped in New York trading.
Weakening U.S. Consumer Confidence Overshadows Surge In China ADRs
Barry Adams
24 Sep, 2024
New York City
Stocks struggled in Tuesday's trading, and benchmark indexes edged lower from record highs after consumer confidence weakened.
The S&P 500 index and the Nasdaq Composite declined slightly as investors reviewed the latest update on consumer confidence.
The consumer confidence index decreased to 98.7 in September from the upwardly revised 105.6 in August, the largest decrease since August 2021, The Conference Board said in a report Tuesday.
“Consumers’ assessments of current business conditions turned negative while views of the current labor market situation softened further.
Consumers were also more pessimistic about future labor market conditions and less positive about future business conditions and future income,” Dana Peterson, Conference Board's chief economist, said in a statement.
China-linked stocks advanced between 3% and 7% after the People's Bank of China announced several measures ahead of the holiday week to revive faltering economic growth and property markets.
JD.com, Alibaba Group, Baidu, Tencent Holdings, and Yum China jumped in New York trading.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.02% to 5,721.72, the Nasdaq Composite rose 0.1% to 17,9996.99, and the Russell 2000 index rose 0.1% to 2,221.38.
The yield on 2-year Treasury notes edged lower to 3.57%, 10-year Treasury notes inched up to 3.75%, and 30-year Treasury bonds inched higher to 4.11%.
WTI crude oil increased $1.03 to $71.40 a barrel, and natural gas prices edged down 0.1 cent to $2.60 a thermal unit.
Gold rose by $13.48 to $2,640.88 an ounce, and silver increased by $0.40 to $31.05.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 100.54.
U.S. Stock Movers
Snowflake declined 0.5% to $112.67 after the cloud data management company announced its plans to raise $2 billion through a convertible bond offering.
AAR Corp. decreased 3.8% to $66.33 despite the aviation services provider reporting better-than-expected quarterly results.
The company said revenue in the fiscal first quarter ending in August increased 20% to $661.7 million from $448.4 million, net income swung to a profit of $18 million from a loss of $0.6 million, and diluted earnings per share were 50 cents compared to a loss of 2 cents a year earlier.
Caterpillar jumped 3.8% to $385.08 after the People's Bank of China announced several stimulus measures to revive the faltering economic growth and support investor confidence.
Europe Movers: CRH, Johnson Matthey, Luxury Stocks, Resource Stocks, TotalEnergies
Inga Muller
24 Sep, 2024
Frankfurt
European markets advanced after the People's Bank of China announced a broad range of economic stimulus measures to revive faltering economic growth and support weak property markets.
The DAX index increased by 0.5% to 18,945.45; the CAC-40 index rose by 1.1% to 7,607.80; and the FTSE 100 index rose by 0.3% to 8,279.67.
The yield on 10-year German bonds edged higher to 2.16%, French bonds inched higher to 2.94%, the UK gilts edged up to 3.97%, and Italian bonds decreased to 3.51%.
Mining companies and luxury goods makers traded higher after China announced a raft of monetary measures to revive the faltering economic growth rate.
Antofagasta plc rose 6.8% to 1,948.50 pence, Anglo American advanced 6.6% to 2,262.97 pence, and Glencore jumped 4.5% to 402.20 pence.
LVMH gained 3.4% to €614.80, Hermes International jumped 3.8% to €2,007.0, and Kering SA added 3.5% to €232.05.
Crude oil explorers advanced amid rising tensions in the Middle East and general weakness in the U.S. dollar.
BP plc gained 0.1% to 412.25 pence, Shell PLC increased 0.2% to €31.24, and BHP Group Ltd. advanced 4.1% to 2,127.0 pence.
TotalEnergies SE jumped 1.2% to €63.07, and the French energy company signed an agreement to supply 200,000 tons of LNG to HD Hyundai Chemical for seven years starting 2027.
CRH PLC declined 0.1% to 6,838.0 pence, and the company announced the appointment of a new chief executive.
Johnson Matthey PLC advanced 1.4% to 1,500.0 pence after the company said its previously announced stock repurchase plan of £125 million will commence today.
European Markets Traded Higher Following China's Broad Stimulus Measures
Bridgette Randall
24 Sep, 2024
London
European markets traded higher following a broad list of monetary stimulus measures announced by the People's Bank of China.
Benchmark indexes in Paris, London, and Frankfurt advanced after China's central bank announced wide-ranging measures to revive economic growth towards the 5% target rate.
The People's Bank of China lowered its commercial bank reserve ratio by 50 basis points, which would pump about $141 billion of additional liquidity, and lowered existing mortgage loan rates by the same amount that is likely to benefit about 50 million households.
The central bank also said it is ready to lower the reserve ratio requirement by an additional 50 basis points by the year's end, if needed.
The broad set of stimulus measures lifted market indexes in mainland China and in Hong Kong by 4%, and luxury stocks in Paris, London, and Milan advanced following the announcements.
Market enthusiasm was muted after Germany's business morale dropped to an eight-month low in September.
The Ifo Business Climate Indicator decreased to the lowest level since January to 85.4 in September from 85.6 in August.
Europe Indexes and Yields
The DAX index increased by 0.5% to 18,945.45; the CAC-40 index rose by 1.1% to 7,607.80; and the FTSE 100 index rose by 0.3% to 8,279.67.
The yield on 10-year German bonds edged higher to 2.16%, French bonds inched higher to 2.94%, the UK gilts edged up to 3.97%, and Italian bonds decreased to 3.51%.
The euro edged lower to $1.11; the British pound inched higher to $1.33; and the U.S. dollar weakened to 84.82 Swiss cents.
Brent crude increased $1.44 to $75.64 a barrel, and the Dutch TTF natural gas fell by €0.38 to €35.82 per MWh.
Europe Stock Movers
Mining companies and luxury goods makers traded higher after China announced a raft of monetary measures to revive the faltering economic growth rate.
Antofagasta plc rose 6.8% to 1,948.50 pence, Anglo American advanced 6.6% to 2,262.97 pence, and Glencore jumped 4.5% to 402.20 pence.
LVMH gained 3.4% to €614.80, Hermes International jumped 3.8% to €2,007.0, and Kering SA added 3.5% to €232.05.
Crude oil explorers advanced amid rising tensions in the Middle East and general weakness in the U.S. dollar.
BP plc gained 0.1% to 412.25 pence, Shell PLC increased 0.2% to €31.24, and BHP Group Ltd. advanced 4.1% to 2,127.0 pence.
TotalEnergies SE jumped 1.2% to €63.07, and the French energy company signed an agreement to supply 200,000 tons of LNG to HD Hyundai Chemical for seven years starting 2027.
CRH PLC declined 0.1% to 6,838.0 pence, and the company announced the appointment of a new chief executive.
Johnson Matthey PLC advanced 1.4% to 1,500.0 pence after the company said its previously announced stock repurchase plan of £125 million will commence today.