Investors Divided About BoJ's Rate Decisions, Softbank's Big U.S. Investment Pledge Invites Skepticism

Akira Ito
17 Dec, 2024
Tokyo

Stock market indexes in Tokyo reversed morning gains to close down as investors turned cautious ahead of rate decisions from central banks of Japan and the U.S. 

The Nikkei 225 stock average declined 0.3%, and the Topix index dropped 0.4% amid growing uncertainty about the rate path in Japan. 

On Wednesday, the U.S. Federal Reserve is widely anticipated to cut its policy rate by 25 basis points, and the central bank may settle on fewer rate cuts in 2025 amid resurgent inflation. 

The Bank of Japan on Thursday may postpone its rate increase till its first meeting in 2025 as policymakers are signaling a lack of urgency in raising rates. 

Central banks of the UK, Sweden, Norway, Thailand, the Philippines, and Indonesia are set to announce their rate decisions this week amid elevated trade tensions and rising political uncertainty in the eurozone. 

The yen strengthened against the U.S. dollar ahead of the Bank of Japan's rate decisions, as the rate differential between the two currencies is expected to narrow over the next few months. 

Japan Stock Movers 

The Nikkei 225 Stock Average decreased 0.3% to 39,364.68, and the broader Topix Index fell 0.4% to 2,728.20. 

SoftBank jumped 4.4% to 2,728.20 after CEO Masayoshi Son announced a plan to invest $100 billion in the U.S. and create 100,000 jobs without giving details. 

Son had made a similar pledge to invest $50 billion in 2016 at the start of the first presidential term of Donald Trump, and those announcements failed to deliver the promised job creation of 50,000. 

Softbank Group has $27 billion in cash, and the Vision Fund controlled by the company has less than $3 billion available for investment. 

Son's access to capital largely comes from the Middle East sovereign funds, and the Vision Fund's previous investments in Uber, DoorDash, and Arm Holdings PLC were the few success stories amid a string of failed investments.

While Trump favors splashy news announcements, a similar pledge in the first presidential term, to invest billions in a fabrication plant by Foxconn Technology, was quickly abandoned after an initial investment of a few million dollars. 

President Trump's bombastic claims of attracting foreign investments are not designed to deliver for U.S. workers or entrepreneurs but are mostly viewed as political stunts. 

Advantest Corp. plunged 9.5% to ¥8,664 after the company released its latest testing solution for advanced testing. 

Tokyo Electron jumped 0.8% to ¥23,840.0. Screen Holdings jumped 0.4% to ¥9,206, and Lasertec Corp. advanced 1.2% to ¥15,485. 

Nippon Steel Corp. declined 1.6% to ¥2,982.50 amid growing uncertainty about the company's plans to acquire U.S. Steel as workers' unions, regulators, and politicians pour cold water over the proposed acquisition. 

Japan Steel Works advanced 1.6% to ¥6,469. 

Fast Retailing Co. Ltd. added 1.3% to ¥53,430; Isetan Mitsukoshi gained 0.2% to ¥2,366.50, and Seven & I Holdings Co. Ltd. inched up 0.1% to ¥2,513. 

China Investors Lose Faith In Previously Announced Fiscal Measures Amid Lack of Details

Li Chen
17 Dec, 2024
Hong Kong

Stock market indexes in China and Hong Kong struggled to advance amid a lack of details about the fiscal measures. 

The Hang Seng index declined 0.4%, and the mainland-focused CSI 300 index gained 0.3% as investors erased the previous week's gains in two days of trading this week.

Investor enthusiasm waned after the economic work conference failed to provide additional details about the implementation plans of the previously announced fiscal measures in late September and early October. 

Over the last six weeks, the Hang Seng index has lost about 15% from the recent peak after policymakers failed to show urgency to announce implementation plans to revive property market transactions and consumer confidence. 

Market sentiment improvement was short-lived after a report suggested that the Chinese government is likely to expand its deficit to 4% of gross domestic product in 2025 from 3% in the current year. 

Investors are anticipating that the Chinese government will issue long-term bonds worth more than three trillion yuan to finance the proposed fiscal measures. 

China Stock Movers 

The Hang Seng index dropped 0.4% to 19,728.82, and the CSI 300 index edged higher 0.3% to 3,923.0. 

Alibaba Group Holding Ltd. declined 1.4% to HK $83.15 after the e-commerce platform operator agreed to sell its department store chain Intime Retail Group for 7.4 billion yuan, or about $1 billion, to Youngor Fashion.

Alibaba will book a loss of 9.3 billion yuan, or $1.3 billion, linked to the sale of the department store chain to a fashion group and Intimae's management, 

Alibaba recently announced its restructuring that sharpened its focus on core e-commerce business and walked away from its offline operations amid rising domestic competitions from PDD's Pinduoduo and ByteDance's short-video app Douyin. 

Among the most actively traded companies, Zhongsheng Group declined 3.2% to HK $15.36, and WuXi Biologics declined 2.7% to HK $16.84. 

China Resources Beer Holdings dropped 1.9% to HK $25.70, and Budweiser Brewing Company fell 1% to HK $7.25. 

China Investors Lose Faith In Previously Announced Fiscal Measures Amid Lack of Details

Li Chen
17 Dec, 2024
Hong Kong

Stock market indexes in China and Hong Kong struggled to advance amid a lack of details about the fiscal measures. 

The Hang Seng index declined 0.4%, and the mainland-focused CSI 300 index gained 0.3% as investors erased the previous week's gains in two days of trading this week.

Investor enthusiasm waned after the economic work conference failed to provide additional details about the implementation plans of the previously announced fiscal measures in late September and early October. 

Over the last six weeks, the Hang Seng index has lost about 15% from the recent peak after policymakers failed to show urgency to announce implementation plans to revive property market transactions and consumer confidence. 

Market sentiment improvement was short-lived after a report suggested that the Chinese government is likely to expand its deficit to 4% of gross domestic product in 2025 from 3% in the current year. 

Investors are anticipating that the Chinese government will issue long-term bonds worth more than three trillion yuan to finance the proposed fiscal measures. 

China Stock Movers 

The Hang Seng index dropped 0.4% to 19,728.82, and the CSI 300 index edged higher 0.3% to 3,923.0. 

Alibaba Group Holding Ltd. declined 1.4% to HK $83.15 after the online e-commerce platform agreed to sell its department store chain Intime Retail Group for 7.4 billion yuan, or about $1 billion, to Youngor Fashion.

Among the most actively traded companies, Zhongsheng Group declined 3.2% to HK $15.36, and WuXi Biologics declined 2.7% to HK $16.84. 

China Resources Beer Holdings dropped 1.9% to HK $25.70, and Budweiser Brewing Company fell 1% to HK $7.25. 

India Movers: Anant Raj, Gravita, RVNL, Jungle Camp, Toss the Coin, Quess Corp.

Arun Goswami
17 Dec, 2024
Mumbai

Slowing economic growth and a weak earnings outlook kept investors on the sidelines amid rising trade tensions. 

The Sensex index decreased by 0.9% to 81,025.67, and the Nifty index declined by 0.8% to 24,453.60. 

On the Mumbai stock exchange, 229 stocks traded at their 52-week highs, and 12 stocks traded at their 52-week lows.

Rail Vikas Nigam Ltd. rose 0.9% to ₹474.15, and the company won a 270 crore order to build several rail stations in Nagpur from Maharashtra Metro Rail Corporation. 

Gravita India Ltd. jumped 4.3% to ₹2,326.25 after the company launched its secondary offering to raise as much as ₹1,000 crore with a floor price of ₹2,206.49 per share. 

Anant Raj Ltd. rose 6.5% to ₹837.70, and the real estate developer approved the allotment of 13.7 lakh convertible warrants worth ₹100 crore to the promoter entity controlled by Ashok Sarin.

Quess Corp Ltd. soared 9.9% to ₹736.30 after the business services and staffing company received positive comments from a brokerage firm. 

Jungle Camps India soared to ₹136.80 after the company priced its initial public offering at ₹72 per share.

The company offered 40.8 lakh shares and raised ₹29.5 crore in its initial public offering. 

Toss the Coin Ltd. soared to ₹345.80 per share after the company priced its public offering at ₹182 per share. 

The marketing consultancy services provider placed 5 lakh shares and raised ₹9.2 crore. 

HDFC Bank declined 1.3% to ₹1,840.50 after the bank received a second warning from the SEBI for its failure to comply with listing requirements. 

India Movers: Anant Raj, Gravita, RVNL, Jungle Camp, Toss the Coin, Quess Corp.

Arun Goswami
17 Dec, 2024
Mumbai

Slowing economic growth and a weak earnings outlook kept investors on the sidelines amid rising trade tensions. 

The Sensex index decreased by 0.9% to 81,025.67, and the Nifty index declined by 0.8% to 24,453.60. 

On the Mumbai stock exchange, 229 stocks traded at their 52-week highs, and 12 stocks traded at their 52-week lows.

Rail Vikas Nigam Ltd. rose 0.9% to ₹474.15, and the company won a 270 crore order to build several rail stations in Nagpur from Maharashtra Metro Rail Corporation. 

Gravita India Ltd. jumped 4.3% to ₹2,326.25 after the company launched its secondary offering to raise as much as ₹1,000 crore with a floor price of ₹2,206.49 per share. 

Anant Raj Ltd. rose 6.5% to ₹837.70, and the real estate developer approved the allotment of 13.7 lakh convertible warrants worth ₹100 crore to the promoter entity controlled by Ashok Sarin.

Quess Corp Ltd. soared 9.9% to ₹736.30 after the business services and staffing company received positive comments from a brokerage firm. 

Jungle Camps India soared to ₹136.80 after the company priced its initial public offering at ₹72 per share.

The company offered 40.8 lakh shares and raised ₹29.5 crore in its initial public offering. 

Toss the Coin Ltd. soared to ₹345.80 per share after the company priced its public offering at ₹182 per share. 

The marketing consultancy services provider placed 5 lakh shares and raised ₹9.2 crore. 

HDFC Bank declined 1.3% to ₹1,840.50 after the bank received a second warning from the SEBI for its failure to comply with listing requirements. 

Tech Rally Powers U.S. Indexes Advance to Fifth Consecutive Week

Alexander Garcia
16 Dec, 2024
Miami

Stocks advanced in Monday's trading after tech artificial intelligence enthusiasm lifted a narrow list of stocks. 

The S&P 500 index gained 0.4% and the Nasdaq Composite advanced 0.6%, and investors extended 4-week rally in tech stocks. 

Broadcom surged 7%, Nvidia decreased 2.4%, AMD fell 0.3%, Amazon.com advanced 1.5%, Meta Platforms gained 0.6%, and Meta Platforms inched higher 0.2%. 

n the year-to-Friday's close, the S&P 500 index has advanced 26.8%, the Nasdaq Composite gained 32.7%, the Dow Jones Industrial Average jumped 16.2%, and the Russell 2000 index increased 16.6%. 

Investors awaited rate decisions from eight central banks around the world. 

The Federal Reserve is scheduled to announce its rate decisions, and investors are anticipating a rate cut of 25 basis points, lowering rates for the third time this year.

The Bank of England is likely to lower its key policy rates for the second time in a row, but the Bank of Japan may hold off its rate increase until its first meeting in 2025. 

In addition, central banks of Sweden, Norway, Thailand, Indonesia, and the Philippines are set to release their rate decisions later this week. 

Closer to home, investors are looking forward to the release of U.S. housing starts and completions, building permits, and existing home sales.

New home sales are struggling amid affordability issues and elevated mortgage rates, and existing home sales in November are likely to confirm low inventory of available homes for sale and new record high median and average home prices. 

U.S. Indexes and Treasury Yields

The S&P 500 index increased 0.4% to 6,071.30, the Nasdaq Composite rose 0.8% to 20,081.60, and the Russell 2000 index rose by 0.6% to 2,360.50. 

The yield on 2-year Treasury notes edged higher to 4.18%, 10-year Treasury notes inched up to 4.30%, and 30-year Treasury bonds increased to 4.52%.

WTI crude oil decreased $0.66 to $70.62 a barrel, and natural gas prices edged down 11 cents to $3.16 a thermal unit.

Gold decreased by $12.68 to $2,659.98 an ounce, and silver rose by $0.20 to $30.67. 

The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher by 0.02 to 106.97.

U.S. Stock Movers 

Nasdaq announced changes to its 100 index stocks effective next Monday. 

Illumina, Super Micro Computer, and Moderna will be replaced by MicroStrategy, Palantir Technologies, and Axon Enterprise. 

The changes will be reflected prior to market opening on December 23. 

Broadcom jumped 3.5% to $232.60 and extended the previous week's sharp gains amid optimism about the company's artificial intelligence segment revenue growth. 

Super Micro Computer plunged 11.5% to $32.15 following a Bloomberg News report that the computer server company is likely to retain investment bank Evercore to raise additional capital through the sale of equity and debt. 

Eurozone Business Activities Remain In Contraction, Only Moody's Cut France's Debt Rating 

European markets struggled to stay above the flatline, and France's credit rating was downgraded. 

Benchmark indexes in Paris extended the previous week's losses after Moody's Investors Service lowered its rating on French government debt by one notch, citing political instability and the lack of progress in lowering government debt. 

Moody's lowered its long-term debt outlook to Aa3 from Aa2, and over the weekend President Emmanuel Macron appointed the fourth prime minister this year. 

France's latest spate of trouble began after the sharply divided National Assembly rejected the proposed social security budget, which led to the passage of a no-confidence vote against Prime Minister Michel Barnier's government. 

France’s public finances will be substantially weakened over the coming years, and "this is because political fragmentation is more likely to impede meaningful fiscal consolidation,” said Moody's in a note released to investors. 

S&P Global has so far not reacted to France's ongoing political turmoil, but the rating agency is likely to revise its debt rating opinion about France's long-term financial outlook. 

The Bank of England is expected to cut its rates by 25 basis points on Thursday following a rate cut in November, and Sweden and Norway are set to announce their monetary policy decisions later this week.

In addition, manufacturing surveys in France and Germany are expected to show contraction amid falling demand growth.

The Flash HCOB Eurozone Composite PMI edged higher to 49.5 in December from 48.3 in November, S&P Global reported Monday. 

Business activities, which include manufacturing and service activities, contracted for the second month in a row, but the decline eased amid a rebound in the service sector activities to 51.4 from 49.5 in the previous month. 

Any reading above 50 indicates expansion, and below 50 shows contraction. 

The manufacturing sector remained, and the index of activities was unchanged from the previous month at 45.2. 

The overall drop in business activity was driven by the weakness in Germany and France, the Eurozone's two largest economies; however, the rest of the members in the currency union showed output growth. 

Europe Indexes and Yields

The DAX index decreased by 0.5% to 20,313.76; the CAC-40 index fell by 0.7% to 7,354.66; and the FTSE 100 index inched lower by 0.5% to 8,262.03.

The yield on 10-year German bonds edged higher to 2.24%, French bonds inched up to 3.02%, the UK gilts increased to 4.39%, and Italian bonds increased to 3.39%.

The euro edged higher to $1.05; the British pound inched up to $1.27; and the U.S. dollar advanced to 89.21 Swiss cents.

Brent crude decreased $0.72 to $73.77 a barrel, and the Dutch TTF natural gas rose by €1.34 to €39.80 per MWh. 

Europe Stock Movers

Vivendi SE jumped 36% to €2.51 after the French media company completed the spinoff of Canal+, Havas, and Louis Hachette Group. 

Canal+ traded above £2.90 per share in London, Havas NV traded around €1.80 in Amsterdam, and Louis Hachette Group edged lower from its opening price of €1.20 in Paris. 

Settlement delivery of the Canal+, Havas NV, and Louis Hachette Group shares to the shareholders of Vivendi entitled to receive them will take place on December 18, 2024. 

The trading in three stocks is likely to be volatile over the next several weeks as investors take time to understand the business environment and growth drivers over the next years. 

Entain PLC dropped 6% to 765.40 pence after the parent company of Ladbrokes is facing an anti-money laundering investigation in Australia. 

Ricardo PLC gained 1.3% to 407.0 pence after the environmental and engineering consulting company's Australian unit agreed to acquire 85% of E3 Advisory for A$101.4 million or £51 million. 

Porsche Automobil Holding SE dropped 2.3% to €35.15 after the company withdrew its 2024 earnings outlook, citing potential non-cash impairment charges related to its investment in Volkswagen AG and Porsche AG. 

China's Retail Sales Growth Slowed and Property Investment Decline Deepened In November 

Stock market indexes in China and Hong Kong declined in Monday's trading after a raft of mixed economic data confirmed the continuing deflationary trend. 

The Hang Seng index decreased 1.1%, and the CSI 300 index dropped 1% after retail sales growth slowed and property market investment decline deepened. 

China's annual retail sales growth in November slowed to 3.0% from 4.8% in October, the National Bureau of Statistics reported over the weekend. 

China's annual fixed-asset investment growth slowed to 3.3% this year to November from 3.3% in the period to October, the statistical bureau reported. 

Fixed-asset investment has been slowing from the peak of 4.5% in March, amid weak earnings growth and persistent worries about a lack of domestic demand growth. 

Real estate investment, closely watched by investors, fell 10.4% between January and November, slightly faster than the 10.3% decline in the ten months to October. 

China's new home prices continued to slide for the 17th month in a row amid a lack of demand and worries about the health of the real estate developers. 

New home prices across the 70 largest cities in China declined 5.4% in November, slower than a nine-year low of 5.9% in the previous month. 

New home sales and prices continue to struggle, despite the Chinese authorities announcing a slew of measures to revive market activities, including lowering mortgage rates for first-time buyers. 

New home prices declined in Beijing by 5.3% compared to 4.9%, in Guangzhou by 9.1% from 10.4%, and in Shenzhen by 7.1% from 8.1% in October, respectively. 

However, new home prices rose in Shanghai by 5%, matching the rate of increase in the previous month.

China's industrial output expanded at an annual pace of 5.4% in November, driven by a faster increase in manufacturing, according to the latest update from the statistical bureau. 

Industrial output increased from 5.3% in October, after manufacturing expanded at an annual rate of 6% compared to 5.4% in October. 

In the first eleven months of the year, industrial production rose 5.8%, driven by increases in manufacturing and mining. 

China Stock Movers 

The Hang Seng index decreased 1.1% to 19,760.77, and the CSI 300 index fell 0.5% to 3,911.84. 

CNOOC Ltd. increased 0.8% to HK $17.82, and the energy exploration company agreed to sell its oil and gas assets in the Gulf of Mexico to the UK-based chemical company Ineos. 

Property developers declined after the release of the latest economic data. 

China Vanke Ltd. decreased 2.2% to HK $6.02, China Resources Land Ltd. dropped 2.5% to HK $22.85, and Longfor Group fell 4.6% to HK $10.18. 

Tech Rally Powers U.S. Indexes Advance to Fifth Consecutive Week

Alexander Garcia
16 Dec, 2024
Miami

Stocks advanced in Monday's trading after tech artificial intelligence enthusiasm lifted a narrow list of stocks. 

The S&P 500 index gained 0.4% and the Nasdaq Composite advanced 0.6%, and investors extended 4-week rally in tech stocks. 

Broadcom surged 7%, Nvidia decreased 2.4%, AMD fell 0.3%, Amazon.com advanced 1.5%, Meta Platforms gained 0.6%, and Meta Platforms inched higher 0.2%. 

n the year-to-Friday's close, the S&P 500 index has advanced 26.8%, the Nasdaq Composite gained 32.7%, the Dow Jones Industrial Average jumped 16.2%, and the Russell 2000 index increased 16.6%. 

Investors awaited rate decisions from eight central banks around the world. 

The Federal Reserve is scheduled to announce its rate decisions, and investors are anticipating a rate cut of 25 basis points, lowering rates for the third time this year.

The Bank of England is likely to lower its key policy rates for the second time in a row, but the Bank of Japan may hold off its rate increase until its first meeting in 2025. 

In addition, central banks of Sweden, Norway, Thailand, Indonesia, and the Philippines are set to release their rate decisions later this week. 

Closer to home, investors are looking forward to the release of U.S. housing starts and completions, building permits, and existing home sales.

New home sales are struggling amid affordability issues and elevated mortgage rates, and existing home sales in November are likely to confirm low inventory of available homes for sale and new record high median and average home prices. 

U.S. Indexes and Treasury Yields

The S&P 500 index increased 0.4% to 6,071.30, the Nasdaq Composite rose 0.8% to 20,081.60, and the Russell 2000 index rose by 0.6% to 2,360.50. 

The yield on 2-year Treasury notes edged higher to 4.18%, 10-year Treasury notes inched up to 4.30%, and 30-year Treasury bonds increased to 4.52%.

WTI crude oil decreased $0.66 to $70.62 a barrel, and natural gas prices edged down 11 cents to $3.16 a thermal unit.

Gold decreased by $12.68 to $2,659.98 an ounce, and silver rose by $0.20 to $30.67. 

The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher by 0.02 to 106.97.

U.S. Stock Movers 

Nasdaq announced changes to its 100 index stocks effective next Monday. 

Illumina, Super Micro Computer, and Moderna will be replaced by MicroStrategy, Palantir Technologies, and Axon Enterprise. 

The changes will be reflected prior to market opening on December 23. 

Broadcom jumped 3.5% to $232.60 and extended the previous week's sharp gains amid optimism about the company's artificial intelligence segment revenue growth. 

Super Micro Computer plunged 11.5% to $32.15 following a Bloomberg News report that the computer server company is likely to retain investment bank Evercore to raise additional capital through the sale of equity and debt. 

Eurozone Business Activities Remain In Contraction, Only Moody's Cut France's Debt Rating 

European markets struggled to stay above the flatline, and France's credit rating was downgraded. 

Benchmark indexes in Paris extended the previous week's losses after Moody's Investors Service lowered its rating on French government debt by one notch, citing political instability and the lack of progress in lowering government debt. 

Moody's lowered its long-term debt outlook to Aa3 from Aa2, and over the weekend President Emmanuel Macron appointed the fourth prime minister this year. 

France's latest spate of trouble began after the sharply divided National Assembly rejected the proposed social security budget, which led to the passage of a no-confidence vote against Prime Minister Michel Barnier's government. 

France’s public finances will be substantially weakened over the coming years, and "this is because political fragmentation is more likely to impede meaningful fiscal consolidation,” said Moody's in a note released to investors. 

S&P Global has so far not reacted to France's ongoing political turmoil, but the rating agency is likely to revise its debt rating opinion about France's long-term financial outlook. 

The Bank of England is expected to cut its rates by 25 basis points on Thursday following a rate cut in November, and Sweden and Norway are set to announce their monetary policy decisions later this week.

In addition, manufacturing surveys in France and Germany are expected to show contraction amid falling demand growth.

The Flash HCOB Eurozone Composite PMI edged higher to 49.5 in December from 48.3 in November, S&P Global reported Monday. 

Business activities, which include manufacturing and service activities, contracted for the second month in a row, but the decline eased amid a rebound in the service sector activities to 51.4 from 49.5 in the previous month. 

Any reading above 50 indicates expansion, and below 50 shows contraction. 

The manufacturing sector remained, and the index of activities was unchanged from the previous month at 45.2. 

The overall drop in business activity was driven by the weakness in Germany and France, the Eurozone's two largest economies; however, the rest of the members in the currency union showed output growth. 

Europe Indexes and Yields

The DAX index decreased by 0.5% to 20,313.76; the CAC-40 index fell by 0.7% to 7,354.66; and the FTSE 100 index inched lower by 0.5% to 8,262.03.

The yield on 10-year German bonds edged higher to 2.24%, French bonds inched up to 3.02%, the UK gilts increased to 4.39%, and Italian bonds increased to 3.39%.

The euro edged higher to $1.05; the British pound inched up to $1.27; and the U.S. dollar advanced to 89.21 Swiss cents.

Brent crude decreased $0.72 to $73.77 a barrel, and the Dutch TTF natural gas rose by €1.34 to €39.80 per MWh. 

Europe Stock Movers

Vivendi SE jumped 36% to €2.51 after the French media company completed the spinoff of Canal+, Havas, and Louis Hachette Group. 

Canal+ traded above £2.90 per share in London, Havas NV traded around €1.80 in Amsterdam, and Louis Hachette Group edged lower from its opening price of €1.20 in Paris. 

Settlement delivery of the Canal+, Havas NV, and Louis Hachette Group shares to the shareholders of Vivendi entitled to receive them will take place on December 18, 2024. 

The trading in three stocks is likely to be volatile over the next several weeks as investors take time to understand the business environment and growth drivers over the next years. 

Entain PLC dropped 6% to 765.40 pence after the parent company of Ladbrokes is facing an anti-money laundering investigation in Australia. 

Ricardo PLC gained 1.3% to 407.0 pence after the environmental and engineering consulting company's Australian unit agreed to acquire 85% of E3 Advisory for A$101.4 million or £51 million. 

Porsche Automobil Holding SE dropped 2.3% to €35.15 after the company withdrew its 2024 earnings outlook, citing potential non-cash impairment charges related to its investment in Volkswagen AG and Porsche AG. 

China's Retail Sales Growth Slowed and Property Investment Decline Deepened In November 

Stock market indexes in China and Hong Kong declined in Monday's trading after a raft of mixed economic data confirmed the continuing deflationary trend. 

The Hang Seng index decreased 1.1%, and the CSI 300 index dropped 1% after retail sales growth slowed and property market investment decline deepened. 

China's annual retail sales growth in November slowed to 3.0% from 4.8% in October, the National Bureau of Statistics reported over the weekend. 

China's annual fixed-asset investment growth slowed to 3.3% this year to November from 3.3% in the period to October, the statistical bureau reported. 

Fixed-asset investment has been slowing from the peak of 4.5% in March, amid weak earnings growth and persistent worries about a lack of domestic demand growth. 

Real estate investment, closely watched by investors, fell 10.4% between January and November, slightly faster than the 10.3% decline in the ten months to October. 

China's new home prices continued to slide for the 17th month in a row amid a lack of demand and worries about the health of the real estate developers. 

New home prices across the 70 largest cities in China declined 5.4% in November, slower than a nine-year low of 5.9% in the previous month. 

New home sales and prices continue to struggle, despite the Chinese authorities announcing a slew of measures to revive market activities, including lowering mortgage rates for first-time buyers. 

New home prices declined in Beijing by 5.3% compared to 4.9%, in Guangzhou by 9.1% from 10.4%, and in Shenzhen by 7.1% from 8.1% in October, respectively. 

However, new home prices rose in Shanghai by 5%, matching the rate of increase in the previous month.

China's industrial output expanded at an annual pace of 5.4% in November, driven by a faster increase in manufacturing, according to the latest update from the statistical bureau. 

Industrial output increased from 5.3% in October, after manufacturing expanded at an annual rate of 6% compared to 5.4% in October. 

In the first eleven months of the year, industrial production rose 5.8%, driven by increases in manufacturing and mining. 

China Stock Movers 

The Hang Seng index decreased 1.1% to 19,760.77, and the CSI 300 index fell 0.5% to 3,911.84. 

CNOOC Ltd. increased 0.8% to HK $17.82, and the energy exploration company agreed to sell its oil and gas assets in the Gulf of Mexico to the UK-based chemical company Ineos. 

Property developers declined after the release of the latest economic data. 

China Vanke Ltd. decreased 2.2% to HK $6.02, China Resources Land Ltd. dropped 2.5% to HK $22.85, and Longfor Group fell 4.6% to HK $10.18. 

investors Await Rate Decisions from Federal Reserve and Seven Central Banks

Barry Adams
16 Dec, 2024
New York City

Stocks advanced in early trading, and investors awaited rate decisions from eight central banks around the world. 

The Federal Reserve is scheduled to announce its rate decisions, and investors are anticipating a rate cut of 25 basis points, lowering rates for the third time this year.

The Bank of England is likely to lower its key policy rates for the second time in a row, but the Bank of Japan may hold off its rate increase until its first meeting in 2025. 

In addition, central banks of Sweden, Norway, Thailand, Indonesia, and the Philippines are set to release their rate decisions later this week. 

Closer to home, investors are looking forward to the release of U.S. housing starts and completions, building permits, and existing home sales.

New home sales are struggling amid affordability issues and elevated mortgage rates, and existing home sales in November are likely to confirm low inventory of available homes for sale and new record high median and average home prices. 

In the year-to-Friday's close, the S&P 500 index has advanced 26.8%, the Nasdaq Composite gained 32.7%, the Dow Jones Industrial Average jumped 16.2%, and the Russell 2000 index increased 16.6%. 

U.S. Indexes and Treasury Yields

The S&P 500 index increased 0.6% to 6,074.25, the Nasdaq Composite rose 0.6% to 20,073.25, and the Russell 2000 index rose by 0.1% to 2,384.48. 

The yield on 2-year Treasury notes edged higher to 4.18%, 10-year Treasury notes inched up to 4.30%, and 30-year Treasury bonds increased to 4.52%.

WTI crude oil decreased $0.66 to $70.62 a barrel, and natural gas prices edged down 11 cents to $3.16 a thermal unit.

Gold decreased by $12.68 to $2,659.98 an ounce, and silver rose by $0.20 to $30.67. 

The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher by 0.02 to 106.97.

U.S. Stock Movers 

Nasdaq announced changes to its 100 index stocks effective next Monday. 

Illumina, Super Micro Computer, and Moderna will be replaced by MicroStrategy, Palantir Technologies, and Axon Enterprise. 

The changes will be reflected prior to market opening on December 23. 

Broadcom jumped 3.5% to $232.60 and extended the previous week's sharp gains amid optimism about the company's artificial intelligence segment revenue growth. 

Super Micro Computer plunged 11.5% to $32.15 following a Bloomberg News report that the computer server company is likely to retain investment bank Evercore to raise additional capital through the sale of equity and debt. 

investors Await Rate Decisions from Federal Reserve and Seven Central Banks

Barry Adams
16 Dec, 2024
New York City

Stocks advanced in early trading, and investors awaited rate decisions from eight central banks around the world. 

The Federal Reserve is scheduled to announce its rate decisions, and investors are anticipating a rate cut of 25 basis points, lowering rates for the third time this year.

The Bank of England is likely to lower its key policy rates for the second time in a row, but the Bank of Japan may hold off its rate increase until its first meeting in 2025. 

In addition, central banks of Sweden, Norway, Thailand, Indonesia, and the Philippines are set to release their rate decisions later this week. 

Closer to home, investors are looking forward to the release of U.S. housing starts and completions, building permits, and existing home sales.

New home sales are struggling amid affordability issues and elevated mortgage rates, and existing home sales in November are likely to confirm low inventory of available homes for sale and new record high median and average home prices. 

In the year-to-Friday's close, the S&P 500 index has advanced 26.8%, the Nasdaq Composite gained 32.7%, the Dow Jones Industrial Average jumped 16.2%, and the Russell 2000 index increased 16.6%. 

U.S. Indexes and Treasury Yields

The S&P 500 index increased 0.6% to 6,074.25, the Nasdaq Composite rose 0.5% to 20,607.16, and the Russell 2000 index rose by 0.1% to 2,384.48. 

The yield on 2-year Treasury notes edged higher to 4.18%, 10-year Treasury notes inched up to 4.30%, and 30-year Treasury bonds increased to 4.52%.

WTI crude oil decreased $0.66 to $70.62 a barrel, and natural gas prices edged down 11 cents to $3.16 a thermal unit.

Gold decreased by $12.68 to $2,659.98 an ounce, and silver rose by $0.20 to $30.67. 

The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher by 0.02 to 106.97.

U.S. Stock Movers 

Nasdaq announced changes to its 100 index stocks effective next Monday. 

Illumina, Super Micro Computer, and Moderna will be replaced by MicroStrategy, Palantir Technologies, and Axon Enterprise. 

The changes will be reflected prior to market opening on December 23. 

Broadcom jumped 3.5% to $232.60 and extended the previous week's sharp gains amid optimism about the company's artificial intelligence segment revenue growth. 

Super Micro Computer plunged 11.5% to $32.15 following a Bloomberg News report that the computer server company is likely to retain investment bank Evercore to raise additional capital through the sale of equity and debt. 

NYC MONDAY

Barry Adams
16 Dec, 2024
New York City

In the week ahead, the Federal Reserve is scheduled to announce its rate decisions, and investors are anticipating a rate cut of 25 basis points, lowering rates for the third time this year.

Housing starts and completions, and building permits, and existing home sales are also scheduled to be released this week.

U.S. Indexes and Treasury Yields

The S&P 500 index increased 0.3% to 6,071.79, the Nasdaq Composite fell 0.1% to 20,001.43, and the Russell 2000 index fell by 1.4% to 2,361.08. 

The yield on 2-year Treasury notes edged higher to 4.18%, 10-year Treasury notes inched up to 4.30%, and 30-year Treasury bonds increased to 4.52%.

WTI crude oil decreased $0.66 to $70.62 a barrel, and natural gas prices edged down 11 cents to $3.16 a thermal unit.

Gold decreased by $12.68 to $2,659.98 an ounce, and silver rose by $0.20 to $30.67. 

The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher by 0.02 to 106.97.

U.S. Stock Movers 

Europe Movers: Canal+, Entain, Havas, Louis Hachette, Porsche Automobil, Ricardo, Vivendi

Inga Muller
16 Dec, 2024
Frankfurt

Despite the political turmoil and no hope of any meaningful improvement in France's finances in the imminent future, S&P Global and Fitch fail to adjust France's debt rating. 

The DAX index decreased by 0.4% to 20,330.46; the CAC-40 index fell by 0.9% to 7,347.56; and the FTSE 100 index inched lower by 0.5% to 8,265.83.

The yield on 10-year German bonds edged higher to 2.24%, French bonds inched up to 3.02%, the UK gilts increased to 4.39%, and Italian bonds increased to 3.39%.

Vivendi SE jumped 36% to €2.51 after the French media company completed the spinoff of Canal+, Havas, and Louis Hachette Group. 

Canal+ traded above £2.90 per share in London, Havas NV traded around €1.80 in Amsterdam, and Louis Hachette Group edged lower from its opening price of €1.20 in Paris. 

Settlement delivery of the Canal+, Havas NV, and Louis Hachette Group shares to the shareholders of Vivendi entitled to receive them will take place on December 18, 2024. 

The trading in three stocks is likely to be volatile over the next several weeks as investors take time to understand the business environment and growth drivers over the next years. 

Entain PLC dropped 6% to 765.40 pence after the parent company of Ladbrokes is facing an anti-money laundering investigation in Australia. 

Ricardo PLC gained 1.3% to 407.0 pence after the environmental and engineering consulting company's Australian unit agreed to acquire 85% of E3 Advisory for A$101.4 million or £51 million. 

Porsche Automobil Holding SE dropped 2.3% to €35.15 after the company withdrew its 2024 earnings outlook, citing potential non-cash impairment charges related to its investment in Volkswagen AG and Porsche AG. 

Europe Movers: Canal+, Entain, Havas, Louis Hachette, Porsche Automobil, Ricardo, Vivendi

Inga Muller
16 Dec, 2024
Frankfurt

Despite the political turmoil and no hope of any meaningful improvement in France's finances in the imminent future, S&P Global and Fitch fail to adjust France's debt rating. 

The DAX index decreased by 0.4% to 20,330.46; the CAC-40 index fell by 0.9% to 7,347.56; and the FTSE 100 index inched lower by 0.5% to 8,265.83.

The yield on 10-year German bonds edged higher to 2.24%, French bonds inched up to 3.02%, the UK gilts increased to 4.39%, and Italian bonds increased to 3.39%.

Vivendi SE jumped 36% to €2.51 after the French media company completed the spinoff of Canal+, Havas, and Louis Hachette Group. 

Canal+ traded above £2.90 per share in London, Havas NV traded around €1.80 in Amsterdam, and Louis Hachette Group edged lower from its opening price of €1.20 in Paris. 

Settlement delivery of the Canal+, Havas NV, and Louis Hachette Group shares to the shareholders of Vivendi entitled to receive them will take place on December 18, 2024. 

The trading in three stocks is likely to be volatile over the next several weeks as investors take time to understand the business environment and growth drivers over the next years. 

Entain PLC dropped 6% to 765.40 pence after the parent company of Ladbrokes is facing an anti-money laundering investigation in Australia. 

Ricardo PLC gained 1.3% to 407.0 pence after the environmental and engineering consulting company's Australian unit agreed to acquire 85% of E3 Advisory for A$101.4 million or £51 million. 

Porsche Automobil Holding SE dropped 2.3% to €35.15 after the company withdrew its 2024 earnings outlook, citing potential non-cash impairment charges related to its investment in Volkswagen AG and Porsche AG. 

Eurozone Business Activities Remain In Contraction, Only Moody's Cut France's Debt Rating

Bridgette Randall
16 Dec, 2024
London

European markets struggled to stay above the flatline, and France's credit rating was downgraded. 

Benchmark indexes in Paris extended the previous week's losses after Moody's Investors Service lowered its rating on French government debt by one notch, citing political instability and the lack of progress in lowering government debt. 

Moody's lowered its long-term debt outlook to Aa3 from Aa2, and over the weekend President Emmanuel Macron appointed the fourth prime minister this year. 

France's latest spate of trouble began after the sharply divided National Assembly rejected the proposed social security budget, which led to the passage of a no-confidence vote against Prime Minister Michel Barnier's government. 

France’s public finances will be substantially weakened over the coming years, and "this is because political fragmentation is more likely to impede meaningful fiscal consolidation,” said Moody's in a note released to investors. 

S&P Global has so far not reacted to France's ongoing political turmoil, but the rating agency is likely to revise its debt rating opinion about France's long-term financial outlook. 

The Bank of England is expected to cut its rates by 25 basis points on Thursday following a rate cut in November, and Sweden and Norway are set to announce their monetary policy decisions later this week.

In addition, manufacturing surveys in France and Germany are expected to show contraction amid falling demand growth.

The Flash HCOB Eurozone Composite PMI edged higher to 49.5 in December from 48.3 in November, S&P Global reported Monday. 

Business activities, which include manufacturing and service activities, contracted for the second month in a row, but the decline eased amid a rebound in the service sector activities to 51.4 from 49.5 in the previous month. 

Any reading above 50 indicates expansion, and below 50 shows contraction. 

The manufacturing sector remained, and the index of activities was unchanged from the previous month at 45.2. 

The overall drop in business activity was driven by the weakness in Germany and France, the Eurozone's two largest economies; however, the rest of the members in the currency union showed output growth. 

Europe Indexes and Yields

The DAX index decreased by 0.4% to 20,330.46; the CAC-40 index fell by 0.9% to 7,347.56; and the FTSE 100 index inched lower by 0.5% to 8,265.83.

The yield on 10-year German bonds edged higher to 2.24%, French bonds inched up to 3.02%, the UK gilts increased to 4.39%, and Italian bonds increased to 3.39%.

The euro edged higher to $1.05; the British pound inched up to $1.27; and the U.S. dollar advanced to 89.21 Swiss cents.

Brent crude decreased $0.79 to $73.69 a barrel, and the Dutch TTF natural gas rose by €1.17 to €39.98 per MWh. 

Europe Stock Movers

Vivendi SE jumped 36% to €2.51 after the French media company completed the spinoff of Canal+, Havas, and Louis Hachette Group. 

Canal+ traded above £2.90 per share in London, Havas NV traded around €1.80 in Amsterdam, and Louis Hachette Group edged lower from its opening price of €1.20 in Paris. 

Settlement delivery of the Canal+, Havas NV, and Louis Hachette Group shares to the shareholders of Vivendi entitled to receive them will take place on December 18, 2024. 

The trading in three stocks is likely to be volatile over the next several weeks as investors take time to understand the business environment and growth drivers over the next years. 

Entain PLC dropped 6% to 765.40 pence after the parent company of Ladbrokes is facing an anti-money laundering investigation in Australia. 

Ricardo PLC gained 1.3% to 407.0 pence after the environmental and engineering consulting company's Australian unit agreed to acquire 85% of E3 Advisory for A$101.4 million or £51 million. 

Porsche Automobil Holding SE dropped 2.3% to €35.15 after the company withdrew its 2024 earnings outlook, citing potential non-cash impairment charges related to its investment in Volkswagen AG and Porsche AG. 

Eurozone Business Activities Remain In Contraction, Only Moody's Cut France's Debt Rating

Bridgette Randall
16 Dec, 2024
London

European markets struggled to stay above the flatline, and France's credit rating was downgraded. 

Benchmark indexes in Paris extended the previous week's losses after Moody's Investors Service lowered its rating on French government debt by one notch, citing political instability and the lack of progress in lowering government debt. 

Moody's lowered its long-term debt outlook to Aa3 from Aa2, and over the weekend President Emmanuel Macron appointed the fourth prime minister this year. 

France's latest spate of trouble began after the sharply divided National Assembly rejected the proposed social security budget, which led to the passage of a no-confidence vote against Prime Minister Michel Barnier's government. 

France’s public finances will be substantially weakened over the coming years, and "this is because political fragmentation is more likely to impede meaningful fiscal consolidation,” said Moody's in a note released to investors. 

S&P Global has so far not reacted to France's ongoing political turmoil, but the rating agency is likely to revise its debt rating opinion about France's long-term financial outlook. 

The Bank of England is expected to cut its rates by 25 basis points on Thursday following a rate cut in November, and Sweden and Norway are set to announce their monetary policy decisions later this week.

In addition, manufacturing surveys in France and Germany are expected to show contraction amid falling demand growth.

The Flash HCOB Eurozone Composite PMI edged higher to 49.5 in December from 48.3 in November, S&P Global reported Monday. 

Business activities, which include manufacturing and service activities, contracted for the second month in a row, but the decline eased amid a rebound in the service sector activities to 51.4 from 49.5 in the previous month. 

Any reading above 50 indicates expansion, and below 50 shows contraction. 

The manufacturing sector remained, and the index of activities was unchanged from the previous month at 45.2. 

The overall drop in business activity was driven by the weakness in Germany and France, the Eurozone's two largest economies; however, the rest of the members in the currency union showed output growth. 

Europe Indexes and Yields

The DAX index decreased by 0.4% to 20,330.46; the CAC-40 index fell by 0.9% to 7,347.56; and the FTSE 100 index inched lower by 0.5% to 8,265.83.

The yield on 10-year German bonds edged higher to 2.24%, French bonds inched up to 3.02%, the UK gilts increased to 4.39%, and Italian bonds increased to 3.39%.

The euro edged higher to $1.05; the British pound inched up to $1.27; and the U.S. dollar advanced to 89.21 Swiss cents.

Brent crude decreased $0.79 to $73.69 a barrel, and the Dutch TTF natural gas rose by €1.17 to €39.98 per MWh. 

Europe Stock Movers

Vivendi SE jumped 36% to €2.51 after the French media company completed the spinoff of Canal+, Havas, and Louis Hachette Group. 

Canal+ traded above £2.90 per share in London, Havas NV traded around €1.80 in Amsterdam, and Louis Hachette Group edged lower from its opening price of €1.20 in Paris. 

Settlement delivery of the Canal+, Havas NV, and Louis Hachette Group shares to the shareholders of Vivendi entitled to receive them will take place on December 18, 2024. 

The trading in three stocks is likely to be volatile over the next several weeks as investors take time to understand the business environment and growth drivers over the next years. 

Entain PLC dropped 6% to 765.40 pence after the parent company of Ladbrokes is facing an anti-money laundering investigation in Australia. 

Ricardo PLC gained 1.3% to 407.0 pence after the environmental and engineering consulting company's Australian unit agreed to acquire 85% of E3 Advisory for A$101.4 million or £51 million. 

Porsche Automobil Holding SE dropped 2.3% to €35.15 after the company withdrew its 2024 earnings outlook, citing potential non-cash impairment charges related to its investment in Volkswagen AG and Porsche AG. 

China's Retail Sales Growth Slowed and Property Investment Decline Deepened In November

Li Chen
16 Dec, 2024
Hong Kong

Stock market indexes in China and Hong Kong declined in Monday's trading after a raft of mixed economic data confirmed the continuing deflationary trend. 

The Hang Seng index decreased 1.1%, and the CSI 300 index dropped 1% after retail sales growth slowed and property market investment decline deepened. 

China's annual retail sales growth in November slowed to 3.0% from 4.8% in October, the National Bureau of Statistics reported over the weekend. 

China's annual fixed-asset investment growth slowed to 3.3% this year to November from 3.3% in the period to October, the statistical bureau reported. 

Fixed-asset investment has been slowing from the peak of 4.5% in March, amid weak earnings growth and persistent worries about a lack of domestic demand growth. 

Real estate investment, closely watched by investors, fell 10.4% between January and November, slightly faster than the 10.3% decline in the ten months to October. 

China's new home prices continued to slide for the 17th month in a row amid a lack of demand and worries about the health of the real estate developers. 

New home prices across the 70 largest cities in China declined 5.4% in November, slower than a nine-year low of 5.9% in the previous month. 

New home sales and prices continue to struggle, despite the Chinese authorities announcing a slew of measures to revive market activities, including lowering mortgage rates for first-time buyers. 

New home prices declined in Beijing by 5.3% compared to 4.9%, in Guangzhou by 9.1% from 10.4%, and in Shenzhen by 7.1% from 8.1% in October, respectively. 

However, new home prices rose in Shanghai by 5%, matching the rate of increase in the previous month.

China's industrial output expanded at an annual pace of 5.4% in November, driven by a faster increase in manufacturing, according to the latest update from the statistical bureau. 

Industrial output increased from 5.3% in October, after manufacturing expanded at an annual rate of 6% compared to 5.4% in October. 

In the first eleven months of the year, industrial production rose 5.8%, driven by increases in manufacturing and mining. 

China Stock Movers 

The Hang Seng index decreased 1.1% to 19,760.77, and the CSI 300 index fell 0.5% to 3,911.84. 

CNOOC Ltd. increased 0.8% to HK $17.82, and the energy exploration company agreed to sell its oil and gas assets in the Gulf of Mexico to the UK-based chemical company Ineos. 

Property developers declined after the release of the latest economic data. 

China Vanke Ltd. decreased 2.2% to HK $6.02, China Resources Land Ltd. dropped 2.5% to HK $22.85, and Longfor Group fell 4.6% to HK $10.18.