Market Update
Japan Indexes Edged Higher After Service Growth Accelerated and Manufacturing Contracted In September
Akira Ito
24 Sep, 2024
Tokyo
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's Monetary Stimulus Need Additional Fiscal Measures to Revive Long Term Market Sentiment, China Indexes Jumped 4%
Li Chen
24 Sep, 2024
Hong Kong
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.
India Movers: Adani Power, Motherson, NHPC, Punjab National Bank, Reliance Power, Spicejet, V2 Retail
Arun Goswami
24 Sep, 2024
Mumbai
Stocks in Mumbai edged slightly higher, but the rising tensions in the Middle East kept market enthusiasm in check on Dalal Street.
The Sensex index increased by 0.1% to 85,032.78, and the Nifty index edged up by 0.1% to 25,971.50.
On the Mumbai stock exchange, 190 stocks traded at their 52-week highs, and 20 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds inched lower to 6.70%, and the Indian rupee strengthened to 83.55 against the U.S. dollar.
Spicejet decreased 1.2% to ₹69.37, and the struggling discount airline said it has completed its ₹3,000 crore secondary issue.
Moreover, the company said it received an additional ₹736 crore from the previous fund-raising round.
Reliance Power gained 5% to ₹40.05, and the electric power company said it plans to raise ₹1,525 crore to accelerate its plans to expand its renewable energy business.
Punjab National Bank decreased 0.7% to ₹110.73, and the financial service provider set the terms of its upcoming ₹7,500 crore secondary issue for institutional investors.
The company set the floor price of ₹109.16 per share with a maximum discount of 5%.
Adani Power increased 0.04% to ₹672.30, and the company is looking to sell electric power from the Godda thermal power plant located in Jharkhand in the domestic market following the lack of payment from Bangladesh.
V2 Retail soared 5% to ₹1,284.85, and Lighthouse Advisors sold a 2% stake for ₹85 crore in the Kolkatta-based apparel and household goods retailer.
After the latest stake sale to a mutual fund controlled by Motilal Oswal, Lighthouse still controls 4.24% stake in the retailer.
NHPC decreased 0.2% to ₹94.02, and the hydroelectric power company paid a total of ₹1,286.33 crore, including the final dividend of 338.51 crore paid recently to the central government.
Samvardhana Motherson International decreased 0.4% to ₹206.55, and the automotive component manufacturer completed its secondary issue ₹6,438 crore.
The company plans to use the proceeds to repay its debt and for general corporate expenses.
World Markets Fluctuate Near Record Highs, Private Sector Activities Growth Diverge In U.S. and Europe
Alexander Garcia
23 Sep, 2024
Miami
Stock market indexes traded in a tight range as investors digested the latest update on private sector activities.
Benchmark indexes rose sharply in the previous week after the Federal Reserve announced a bod rate cut.
Financial markets cheered the jumbo-sized 50 basis points rate cut after some initial hesitation, as investors hoped that the central bank was more likely to engineer a so-called "soft landing," a gradual economic slowdown without dipping the economy into a recession.
The rate cut was also seen as the Fed’s acknowledgement that labor market conditions are moderate and inflation is falling at a faster-than-expected pace.
However, the large rate cut may fan inflationary forces in the months ahead, prolonging higher inflation next year.
But for now, investors around the world cheered the Fed’s aggressive move and awaited additional rate cuts later in the year.
On Monday, the release of the manufacturing and service sector activities survey kicked-off a busy week of economic releases.
The S&P Global Flash U.S. Composite PMI declined to 54.4 in September from 54.6 in August.
On Monday, the manufacturing and service sector activities survey kicked off a busy week of economic releases.
The S&P Global Flash U.S. Composite PMI declined to 54.4 in September from 54.6 in August.
The private sector activity growth remained strong, suggesting a robust economic expansion in the third quarter.
Growth in the service sector remained strong, but it edged lower to 55.4 in September from 55.7 in August, but the contraction in manufacturing deepened to 47 from 47.9 in the previous month.
Prices for goods and services rose at the fastest pace since March; input costs advanced the most in a year.
Investors are looking forward to the release of the PCE price index, an alternative measure of inflation, amid expectations of a monthly increase of 0.2%.
Second quarter GDP growth revision, durable goods orders, and new and pending home sales data are also set to be released this week.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.2% to 5,718.05, the Nasdaq Composite rose 0.3% to 18,004.65, and the Russell 2000 index fell 0.4% to 2,219.22.
The yield on 2-year Treasury notes edged lower to 3.58%, 10-year Treasury notes inched up to 3.75%, and 30-year Treasury bonds inched higher to 4.10%.
WTI crude oil increased $0.11 to $71.11 a barrel, and natural gas prices edged up 6 cents to $2.50 a thermal unit.
Gold rose by $3.48 to $2,625.13 an ounce, and silver decreased by $0.41 to $30.75.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 100.94.
U.S. Stock Movers
Ciena Corp. jumped 4.2% to $61.31 after the networking software and system developer for optical connectivity was upgraded to "buy" from "sell," citing improving conditions in the telecom industry.
Intel Corp. increased 2.4% to $22.43 on a report that Apollo Global Management offered the chipmaker to make an equity-like investment of as much as $5 billion.
The news was first reported by Bloomberg News on Sunday.
Intel has fallen more than 60% from a high of $68.26 reached in early April 2021, as the advanced chipmaker struggled to make a transition to smaller and more powerful chips suitable for artificial intelligence applications amid rising competitions.
Eurozone Business Activities Contracted for the Fourth Month, Stocks and Euro Edged Lower
European markets traded down in cautious trading as investors reacted to the latest political developments in the region and weak business activity data.
Benchmark indexes in Paris, London, and Frankfurt were down between 0.2% and 0.5% after the business activity index declined for the fourth consecutive month in September.
The HCOB Flash Eurozone Composite PMI decreased to 48.9 in September from 51.0 in August and fell to the lowest level since January, according to the data released by S&P Global.
The service sector growth slowed to 50.5 from 52.9, and the manufacturing downturn extended to the 18th month in a row to 44.5 from 45.8 in the previous month, respectively.
The composite PMI fell at the fastest pace in 15 months after the Olympic games had temporarily boosted activities in France.
The euro dropped to $1.11 after the report, amid concerns that the European Central Bank may need to accelerate easing of its monetary policy and provide additional support.
The British pound jumped to a two-and-a-half years high of $1.33 as the UK's Labour Party kicked off its annual conference on Monday.
In political news, France's prime minister, Michel Barnier, said his government is open to increasing taxes for big businesses and the wealthiest citizens to tackle its large and widening budget deficit.
The Social Democratic Party, led by Olaf Scholz, narrowly defeated far-right party Alternative for Germany in an election in the east German state of Brandenburg.
Europe Indexes and Yields
The DAX index increased by 0.6% to 18,828.59; the CAC-40 index rose by 0.1% to 7,508.08; and the FTSE 100 index advanced by 0.4% to 8,259.71.
The yield on 10-year German bonds edged lower to 2.15%, French bonds inched higher to 2.93%, the UK gilts edged up to 3.91%, and Italian bonds decreased to 3.52%.
The euro edged lower to $1.11; the British pound inched higher to $1.33; and the U.S. dollar weakened to 84.94 Swiss cents.
Brent crude decreased $1.08 to $73.44 a barrel, and the Dutch TTF natural gas rose by €1.50 to €36.11 per MWh.
Europe Stock Movers
Rightmove Plc increased 1.2% to 682.60 pence after Australia's REA Group increased its offer for the UK-based property portal.
Commerzbank added 0.2% to €15.71, and the German government agency said in a statement that it has no plans to sell its remaining 12% stake in the bank.
Scout24 SE increased 2.3% to €77.30, and Germany's largest online property platform operator announced its plans to commence its stock buyback program worth €150 million.
The company plans to launch its stock buyback plan in the next few weeks and end in 2026.
UBS Group AG was nearly unchanged at CHF 25.46 on reports that the Swiss regulator is investigating the collapse of Credit Suisse ahead of its merger with the bank.
Siemens AG increased 0.4% to €167.26, and the company said it plans to separate its eMobility business.
China Lowered Short Term Rate, Hong Kong Indexes Hovered at 3-Month High
Stocks in Hong Kong and Shanghai advanced in Monday's trading following an unexpected rate cut by the People's Bank of China.
The Hang Seng increased 0.6%, and the mainland-focused CSI 300 index gained 0.7% in active trading.
The People's Bank of China unexpectedly lowered its 14-day reverse repurchase rate by 10 basis points to 1.85% from 1.95%. It also injected liquidity of 74.5 billion yuan into the financial system, according to a statement released by the central bank.
Last week, the central bank held steady 1-year and 5-year loan prime rates, despite the U.S. Federal Reserve Bank lowering its target rate range by 50 basis points to between 4.75% and 5.0%.
The latest move is likely to spur more lending to businesses and residential property developers, amid weak consumer confidence and domestic demand.
The central bank's move comes ahead of a 7-day National Day Holiday period starting October 1.
In other economic news, China's jobless rate among those between the ages of 16 and 24, excluding students, increased to 18.8% in August from 17.1% in July, the National Bureau of Statistics reported Monday.
The jobless rate increased to the highest since December, when the statistical agency revised its methodology after halting the release of data for four months.
The revised methodology vastly understates the jobless count among young applicants, according to most private economists.
Last week, the Hang Seng index advanced 5.1%, the most in five months, following the receding worries of the global economic slowdown.
However, financial market indexes in mainland China continued to struggle near five-year lows as corporate earnings growth outlook remained clouded.
Indexes in India traded at new record highs and gained 0.2%, and in Australia they edged down 0.5% but hovered near recent record highs.
In Friday's trading, benchmark indexes in New York and Europe closed mixed but extended weekly advance after the U.S. Federal Reserve lowered its target rate range and signaled possible rate declines in the year.
Japan's financial markets are closed on Monday for a holiday.
China Stock Movers
The Hang Seng index increased 0.6% to 18,359.38, and the CSI 300 index added 0.7% to 3,223.15.
Tech stocks led the gainers in Hong Kong following the rise in the sector in Friday's trading in New York.
Alibaba Group gained 0.5% to HK $87.70, JD.com gained 2% to $114.80, and Tencent Holdings declined 0.5% to HK $387.0.
Bank of China increased 1.1% to HK $3.54.0, China Minsheng Banking advanced 1.9% to HK $2.86, China Construction Construction Bank added 1.4% to HK $5.66, and Industrial and Commercial Bank of China added 1.6% to HK $4.46.
Property developers were in focus for the second day in a row after the People's Bank of China unexpectedly lowered short-term rates.
China Vanke gained 2.2% to HK $4.55, China Resources Land decreased 0.3% to HK $21.20, Longfor Group added 0.1% to HK $8.78, Henderson Land decreased 0.3% to HK $25.40, and Sun Hung Kai Properties added 0.7% to HK $81.95.
Xiaomi Corp. gained 3.9% to HK $20.65 after its chief executive confirmed the company's plans to launch its popular and expensive flip phone into the global market this month.
Kweichow Moutai increased 0.3% to ¥1,267.38 in Shanghai trading, and the liquor maker said it plans to repurchase up to 6 billion yuan of its own stock.
Kweichow Moutai stock is trading at a four-year low amid an economic slowdown and falling wholesale prices.
Wall Street Enthusiasm Pushes Major Indexes Near Record Territory
Barry Adams
23 Sep, 2024
New York City
Benchmark indexes looked higher following the sharp gains the previous week after the Federal Reserve announced a bod rate cut.
Financial markets cheered the jumbo-sized 50 basis points rate cut after some initial hesitation, as investors hoped that the central bank was more likely to engineer a so-called "soft landing," a gradual economic slowdown without dipping the economy into a recession.
The rate cut was also seen as the Fed’s acknowledgement that labor market conditions are moderate and inflation is falling at a faster-than-expected pace.
However, the large rate cut may fan inflationary forces in the months ahead, prolonging higher inflation next year.
But for now, investors around the world cheered the Fed’s aggressive move and awaited additional rate cuts later in the year.
On Monday, the release of the manufacturing and service sector activities survey is set to kick-off a busy week of economic releases.
Investors are hoping to get more insights into the growth drivers in the service sector, the main driver of the U.S. economy.
Investors are looking forward to the release of the PCE price index, an alternative measure of inflation, amid expectation of an increase of 0.2% from the previous month in August.
Second quarter GDP growth revision, durable goods orders, and new and pending home sales data are also set to be released this week.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.2% to 5,715.87, the Nasdaq Composite rose 0.1% to 17,968.59, and the Russell 2000 index fell 1.1% to 2,227.89.
The yield on 2-year Treasury notes edged lower to 3.58%, 10-year Treasury notes inched up to 3.75%, and 30-year Treasury bonds inched higher to 4.10%.
WTI crude oil increased $0.11 to $71.11 a barrel, and natural gas prices edged up 6 cents to $2.50 a thermal unit.
Gold rose by $3.48 to $2,625.13 an ounce, and silver decreased by $0.41 to $30.75.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 100.94.
U.S. Stock Movers
Ciena Corp. jumped 4.2% to $61.31 after the networking software and system developer for optical connectivity was upgraded to "buy" from "sell," citing improving conditions in the telecom industry.
Intel Corp. increased 2.4% to $22.43 on a report that Apollo Global Management offered the chipmaker to make an equity-like investment of as much as $5 billion.
The news was first reported by Bloomberg News on Sunday.
Intel has fallen more than 60% from a high of $68.26 reached in early April 2021, as the advanced chipmaker struggled to make a transition to smaller and more powerful chips suitable for artificial intelligence applications amid rising competitions.
Europe Movers: Commerzbank, Scout24, Rightmove, Siemens, UBS
Inga Muller
23 Sep, 2024
Frankfurt
Business activities in the European Union contracted for the fourth month in a row amid persistent weakness in the manufacturing sector.
Germany's SDP narrowly won an election in the Brandenburg state.
The DAX index increased by 0.5% to 18,824.07; the CAC-40 index fell by 0.3% to 7,480.31; and the FTSE 100 index declined by 0.1% to 8,219.74.
The yield on 10-year German bonds edged lower to 2.15%, French bonds inched higher to 2.93%, the UK gilts edged up to 3.91%, and Italian bonds decreased to 3.52%.
Rightmove Plc increased 1.2% to 682.60 pence after Australia's REA Group increased its offer for the UK-based property portal.
Commerzbank added 0.2% to €15.71, and the German government agency said in a statement that it has no plans to sell its remaining 12% stake in the bank.
Scout24 SE increased 2.3% to €77.30, and Germany's largest online property platform operator announced its plans to commence its stock buyback program worth €150 million.
The company plans to launch its stock buyback plan in the next few weeks and end in 2026.
UBS Group AG was nearly unchanged at CHF 25.46 on reports that the Swiss regulator is investigating the collapse of Credit Suisse ahead of its merger with the bank.
Siemens AG increased 0.4% to €167.26, and the company said it plans to separate its eMobility business.
Eurozone Business Activities Contracted for the Fourth Month, Stocks and Euro Edged Lower
Bridgette Randall
23 Sep, 2024
London
European markets traded down in cautious trading as investors reacted to the latest political developments in the region and weak business activity data.
Benchmark indexes in Paris, London, and Frankfurt were down between 0.2% and 0.5% after the business activity index declined for the fourth consecutive month in September.
The HCOB Flash Eurozone Composite PMI decreased to 48.9 in September from 51.0 in August and fell to the lowest level since January, according to the data released by S&P Global.
The service sector growth slowed to 50.5 from 52.9, and the manufacturing downturn extended to the 18th month in a row to 44.5 from 45.8 in the previous month, respectively.
The composite PMI fell at the fastest pace in 15 months after the Olympic games had temporarily boosted activities in France.
The euro dropped to $1.11 after the report, amid concerns that the European Central Bank may need to accelerate easing of its monetary policy and provide additional support.
The British pound jumped to a two-and-a-half years high of $1.33 as the UK's Labour Party kicked off its annual conference on Monday.
In political news, France's prime minister, Michel Barnier, said his government is open to increasing taxes for big businesses and the wealthiest citizens to tackle its large and widening budget deficit.
The Social Democratic Party, led by Olaf Scholz, narrowly defeated far-right party Alternative for Germany in an election in the east German state of Brandenburg.
Europe Indexes and Yields
The DAX index increased by 0.5% to 18,824.07; the CAC-40 index fell by 0.3% to 7,480.31; and the FTSE 100 index declined by 0.1% to 8,219.74.
The yield on 10-year German bonds edged lower to 2.15%, French bonds inched higher to 2.93%, the UK gilts edged up to 3.91%, and Italian bonds decreased to 3.52%.
The euro edged lower to $1.11; the British pound inched higher to $1.33; and the U.S. dollar weakened to 84.94 Swiss cents.
Brent crude increased $0.18 to $74.66 a barrel, and the Dutch TTF natural gas rose by €0.20 to €34.80 per MWh.
Europe Stock Movers
Rightmove Plc increased 1.2% to 682.60 pence after Australia's REA Group increased its offer for the UK-based property portal.
Commerzbank added 0.2% to €15.71, and the German government agency said in a statement that it has no plans to sell its remaining 12% stake in the bank.
Scout24 SE increased 2.3% to €77.30, and Germany's largest online property platform operator announced its plans to commence its stock buyback program worth €150 million.
The company plans to launch its stock buyback plan in the next few weeks and end in 2026.
UBS Group AG was nearly unchanged at CHF 25.46 on reports that the Swiss regulator is investigating the collapse of Credit Suisse ahead of its merger with the bank.
Siemens AG increased 0.4% to €167.26, and the company said it plans to separate its eMobility business.
China Lowered Short Term Rate, Hong Kong Indexes Hovered at 3-Month High
Li Chen
23 Sep, 2024
Hong Kong
Stocks in Hong Kong and Shanghai advanced in Monday's trading following an unexpected rate cut by the People's Bank of China.
The Hang Seng increased 0.6%, and the mainland-focused CSI 300 index gained 0.7% in active trading.
The People's Bank of China unexpectedly lowered its 14-day reverse repurchase rate by 10 basis points to 1.85% from 1.95%. It also injected liquidity of 74.5 billion yuan into the financial system, according to a statement released by the central bank.
Last week, the central bank held steady 1-year and 5-year loan prime rates, despite the U.S. Federal Reserve Bank lowering its target rate range by 50 basis points to between 4.75% and 5.0%.
The latest move is likely to spur more lending to businesses and residential property developers, amid weak consumer confidence and domestic demand.
The central bank's move comes ahead of a 7-day National Day Holiday period starting October 1.
Last week, the Hang Seng index advanced 5.1%, the most in five months, following the receding worries of the global economic slowdown.
However, financial market indexes in mainland China continued to struggle near five-year lows as corporate earnings growth outlook remained clouded.
Indexes in India traded at new record highs and gained 0.2%, and in Australia they edged down 0.5% but hovered near recent record highs.
In Friday's trading, benchmark indexes in New York and Europe closed mixed but extended weekly advance after the U.S. Federal Reserve lowered its target rate range and signaled possible rate declines in the year.
Japan's financial markets are closed on Monday for a holiday.
China Stock Movers
The Hang Seng index increased 0.6% to 18,359.38, and the CSI 300 index added 0.7% to 3,223.15.
Tech stocks led the gainers in Hong Kong following the rise in the sector in Friday's trading in New York.
Alibaba Group gained 0.5% to HK $87.70, JD.com gained 2% to $114.80, and Tencent Holdings declined 0.5% to HK $387.0.
Bank of China increased 1.1% to HK $3.54.0, China Minsheng Banking advanced 1.9% to HK $2.86, China Construction Construction Bank added 1.4% to HK $5.66, and Industrial and Commercial Bank of China added 1.6% to HK $4.46.
Property developers were in focus for the second day in a row after the People's Bank of China unexpectedly lowered short-term rates.
China Vanke gained 2.2% to HK $4.55, China Resources Land decreased 0.3% to HK $21.20, Longfor Group added 0.1% to HK $8.78, Henderson Land decreased 0.3% to HK $25.40, and Sun Hung Kai Properties added 0.7% to HK $81.95.
Xiaomi Corp. gained 3.9% to HK $20.65 after its chief executive confirmed the company's plans to launch its popular and expensive flip phone into the global market this month.
Kweichow Moutai increased 0.3% to ¥1,267.38 in Shanghai trading, and the liquor maker said it plans to repurchase up to 6 billion yuan of its own stock.
Kweichow Moutai stock is trading at a four-year low amid an economic slowdown and falling wholesale prices.
India Movers: Adani Total Gas, Dreamfolks Services, HDFC Bank, Religare, Reliance Infrastructure, Signature Global, Tata Steel
Arun Goswami
23 Sep, 2024
Mumbai
India indexes advanced in Monday's trading following positive market sentiment amid receding worries of a global economic slowdown.
The Sensex and Nifty indexes traded at new intraday highs following the sustained new fund flows from domestic investors.
The Sensex index increased by 0.3% to 84,752.44, and the Nifty index edged up by 0.4% to 25,881.35.
On the Mumbai stock exchange, 147 stocks traded at their 52-week highs, and 17 stocks traded at their 52-week lows.
Punjab & Sind Bank gained 1% to ₹54.65, and the company plans to raise as much as ₹3,000 crore through a bond offering, following other large offerings from state-controlled banks.
Dreamfolks Services increased 1.3% to ₹501.45, and the company has halted providing lounge services at airports operated by Adani Group.
Signature Global advanced 3.2% to ₹1,529.90, and the residential real estate developer placed a 320 crore order with ACC India for its luxury housing project in Gurugram.
Religare Enterprises inched up 1.2% to ₹274.25, and the company was in focus after it postponed its annual general meeting following the allegations of insider trading by executive chairperson Rashmi Saluja.
Reliance Infrastructure soared 11% to ₹316.0, and the company announced fund raising of ₹1,100 crore from promoters and ₹1,900 crore from an investment company as part of its efforts to raise as much as 6,000 crore through a secondary offering.
Tata Steel increased 1.7% to ₹152.10, and the company initiated a new blast furnace operation at a plant in Odisha that will expand its capacity to 8 million tons from 3 million tons.
Adani Total Gas advanced 1.8% to ₹790.0, and the local gas distribution network operator said it has completed raising $315 million or ₹2,632 crore from international lenders.
The company plans to raise a total of $375 million, or 3,134 crore, from a consortium of international lenders over the next few weeks.
HDFC Bank increased 2.4% to ₹1,749.0, and the company's subsidiary HDB Financial Services plans to raise as much as ₹2,500 crore through an initial public offering.
U.S. Movers: Chewy, FedEx, MillerKnoll, Nike
Scott Peters
20 Sep, 2024
New York City
FedEx decreased 13% to $261.50, and the parcel delivery company reported a sharp fall in earnings and the company lowered its annual outlook.
Nike increased 8.3% to $87.68, and the athletic footwear maker said chief executive John Donahoe would step down from the office on October 13.
Elliott Hill, a Nike veteran, would return to the company to assume the leading role.
MillerKnoll declined 7.9% to $25.30, and the office furniture maker reported weaker-than-expected revenue and earnings in its latest quarter.
Revenue in the fiscal first quarter ending in August decreased 6.1% to $851.5 million from $917.7 million, net income swung to a loss of $0.5 million from $16.1 million, and diluted earnings per share were a loss of 1.2 cents compared to a profit of 16.1 cents a year earlier.
Chewy declined 2.9% to $25.30 after the online pet products store disclosed its plans to raise $500 million through a public offering of Class A stock.
Wall Street Indexes Rested Near Record Highs Amid Soft Landing Optimism
Barry Adams
20 Sep, 2024
New York City
Market indexes traded around the flatline on Wall Street as investors focused on the positives of the Fed's jumbo-sized rate cut on Wednesday.
The S&P 500, the Nasdaq Composite, and the Dow Jones Industrial Average traded at or near record highs, boosted by the market enthusiasm over the Fed's latest cut and signaling of additional cuts in the year.
Market indexes rallied on Thursday after initial jobless claims last week dropped to the lowest level since May, confirming that labor market conditions are moderating and the Federal Reserve is more likely to engineer a soft landing, averting a recession.
Jumbo-sized rate cuts are positive for consumers and businesses as they increase demand for goods and services, but lower rates also stoke inflationary forces.
After a week of tumultuous trading, the S&P 500 and the Nasdaq Composite are set to close to advance in the week between 1% and 2%.
U.S. Indexes and Treasury Yields
The S&P 500 index decreased 0.2% to 5,703.66, the Nasdaq Composite fell 0.01% to 18,013.92, and the Russell 2000 index advanced 2.1% to 2,252.70.
The yield on 2-year Treasury notes edged lower to 3.62%, 10-year Treasury notes inched down to 3.73%, and 30-year Treasury bonds inched lower to 4.06%.
WTI crude oil decreased $0.46 to $70.68 a barrel, and natural gas prices edged up 2 cents to $2.37 a thermal unit.
Gold rose by $29.19 to $2,816.98 an ounce, and silver increased by $0.16 to $31.37.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 100.75.
U.S. Stock Movers
FedEx decreased 13% to $261.50, and the parcel delivery company reported a sharp fall in earnings and the company lowered its annual outlook.
Nike increased 8.3% to $87.68, and the athletic footwear maker said chief executive John Donahoe would step down from the office on October 13.
Elliott Hill, a Nike veteran, would return to the company to assume the leading role.
MillerKnoll declined 7.9% to $25.30, and the office furniture maker reported weaker-than-expected revenue and earnings in its latest quarter.
Revenue in the fiscal first quarter ending in August decreased 6.1% to $851.5 million from $917.7 million, net income swung to a loss of $0.5 million from $16.1 million, and diluted earnings per share were a loss of 1.2 cents compared to a profit of 16.1 cents a year earlier.
Chewy declined 2.9% to $25.30 after the online pet products store disclosed its plans to raise $500 million through a public offering of Class A stock.
Europe Movers: Burberry, Mercedes-Benz Group, Luxury Stocks
Inga Muller
20 Sep, 2024
Frankfurt
European markets trimmed weekly gains after luxury goods and vehicle makers with significant exposure to China led the decliners.
Germany's producer price inflation extended its yearlong decline in August, and the UK's retail sales accelerated after warmer weather boosted demand for food and apparel.
The DAX index decreased by 0.8% to 18,850.71; the CAC-40 index fell by 0.7% to 7,565.09; and the FTSE 100 index declined by 0.4% to 8,294.19.
The yield on 10-year German bonds edged higher to 2.20%, French bonds inched higher to 2.93%, the UK gilts edged up to 3.89%, and Italian bonds increased to 3.55%.
Vehicle makers were among the leading decliners in Friday's trading after Mercedes-Benz lowered its annual outlook following a rapid deterioration in its business in China.
Mercedes-Benz Group dropped 6.4% to €55.24, and the luxury automaker said it plans to invest over $2 billion in China with local partners and accelerate its transition to electric vehicle manufacturing.
The company said its adjusted operating earnings before interest and tax were "significantly below" last year's level amid a rapid decline in sales in China.
The company-added return on sales is likely to fall in the range between 7.5% and 8.5% from the previously estimated range between 10% and 11%.
Following the Mercedes-Benz announcement, stocks of other leading automakers declined in the region.
Porsche Automobil decreased 2.6% to €39.90, Volvo declined 1.5% to SEK 260.60, Stellantis fell 2.4% to €13.63, BMW dropped 3% to €73.86, and Volkswagen eased 2.4% to €91.62.
Luxury goods makers were also on the slide on the worry of their exposure to China.
Hermes International declined 2.8% to €1,937.0, LVMH fell 2.8% to €597.40, and Kering SA, the parent of Gucci, decreased 3.5% to €224.95.
Burberry Group declined 4.8% to 596.60 pence after Goldman Sachs lowered its target price to €235 from €270 and assigned a "neutral" rating.
Among other widely held stocks, Deutsche Post, Infineon, Puma, Adidas, Essilor, and L'Oreal fell between 2% and 3% amid market weakness.
European Markets Trimmed Weekly Gains, Mercedes-Benz Lowered Annual Outlook
Bridgette Randall
20 Sep, 2024
London
European markets traded down and trimmed weekly gains as investors reassessed global economic growth outlook and rate path after rate decisions from major central banks this week.
Benchmark indexes in Paris, London, and Frankfurt decreased in Friday's trading but traded higher in the week after rate decisions from the Bank of Japan, the People's Bank of China, the Bank of England, the Norges Bank, and the U.S. Federal Reserve.
The jumbo-sized rate cut by the U.S. Federal Reserve on Wednesday surprised many market participants, and investors hoped that the central bank is more likely to engineer the so-called soft landing and avoid a recession.
On Friday, the Bank of Japan held steady its short-term lending rate, and the People's Bank of China surprisingly held steady its short- and medium-term rates.
However, market sentiment was cautious amid luxury automobile stocks after Mercedes-Benz lowered its annual outlook, citing weakness in China.
Closer to home, the producer price index in Germany decreased annually by 0.8% in August, matching the decline in the previous month, the statistical agency, destatis, reported Friday.
Factory gate prices have been declining since July 2023, primarily reflecting the fall in energy prices.
Confidence among French manufacturers remained stable in September after rising in the previous month, the statistical office INSEE reported Friday.
The manufacturing sentiment remained stable at 99.0, matching the level in August and just below the long-term average of 100.
Separately, UK retail sales rose more than expected after warmer weather boosted demand for food and apparel, the Office for National Statistics reported Friday.
Retail sales growth accelerated to 1% on a monthly basis in August from a 0.7% rise in July, and on an annual basis, sales advanced 2.5% from the revised annual 1.4% rise in the previous month.
Europe Indexes and Yields
The DAX index decreased by 0.8% to 18,850.71; the CAC-40 index fell by 0.7% to 7,565.09; and the FTSE 100 index declined by 0.4% to 8,294.19.
The yield on 10-year German bonds edged higher to 2.20%, French bonds inched higher to 2.93%, the UK gilts edged up to 3.89%, and Italian bonds increased to 3.55%.
The euro edged up to $1.11; the British pound inched higher to $1.32; and the U.S. dollar weakened to 84.91 Swiss cents.
Brent crude decreased $0.46 to $74.40 a barrel, and the Dutch TTF natural gas fell by €1.26 to €34.31 per MWh.
Europe Stock Movers
Vehicle makers were among the leading decliners in Friday's trading after Mercedes-Benz lowered its annual outlook following a rapid deterioration in its business in China.
Mercedes-Benz Group dropped 6.4% to €55.24, and the luxury automaker said it plans to invest over $2 billion in China with local partners and accelerate its transition to electric vehicle manufacturing.
The company said its adjusted operating earnings before interest and tax were "significantly below" last year's level amid a rapid decline in sales in China.
The company-added return on sales is likely to fall in the range between 7.5% and 8.5% from the previously estimated range between 10% and 11%.
Following the Mercedes-Benz announcement, stocks of other leading automakers declined in the region.
Porsche Automobil decreased 2.6% to €39.90, Volvo declined 1.5% to SEK 260.60, Stellantis fell 2.4% to €13.63, BMW dropped 3% to €73.86, and Volkswagen eased 2.4% to €91.62.
Luxury goods makers were also on the slide on the worry of their exposure to China.
Hermes International declined 2.8% to €1,937.0, LVMH fell 2.8% to €597.40, and Kering SA, the parent of Gucci, decreased 3.5% to €224.95.
Burberry Group declined 4.8% to 596.60 pence after Goldman Sachs lowered its target price to €235 from €270 and assigned a "neutral" rating.
Among other widely held stocks, Deutsche Post, Infineon, Puma, Adidas, Essilor, and L'Oreal fell between 2% and 3% amid market weakness.
Japan Indexes Extended Weekly Gain to 3%, BoJ Held Rates Steady
Akira Ito
20 Sep, 2024
Tokyo
Benchmark indexes in Tokyo advanced, extending gains from the previous session and following a surge in overnight trading in New York.
The Nikkei 225 stock average jumped 1.6% and the Topix index gained 1.3% as investors reviewed the latest update on inflation and the Bank of Japan's rate decisions.
The Bank of Japan kept its short-term rate at 0.25% and left its yield curve unchanged after a policy meeting on Friday and reiterated its hawkish outlook.
The central bank decided to take a wait-and-see approach after lifting rates twice this year, in March and July. The policy committee said it needs more time to evaluate the impact of its hawkish stand on the economy and financial markets before it decides its next move.
The policy board also reiterated that the economy is gradually recovering, despite patches of weakness, and private consumption is on an upward trend amid improving corporate profits and rising wages.
The yen edged 0.5% higher to 142.15 against the U.S. dollar and hovered near 2024's high.
Japan's overall consumer price inflation rate increased to 3.0% from 2.8% in the previous three months and is increasing to the highest level since October 2023, the Ministry of Internal Affairs and Communications said Friday.
Core inflation, which excludes volatile food by including energy prices, accelerated for the fourth month in a row to 2.8% after the cost of electricity soared 26.2% following the ending of household subsidies.
Japan Stock Movers
The Nikkei 225 Stock Average gained 1.6% to 37,773.11, and the broader Topix index added 1.3% to 2,649.57.
Banks were in focus after the Bank of Japan reiterated its plan to lift rates gradually.
Mitsubishi UFJ Financial increased 3.2% to ¥1,489.50, Sumitomo Mitsui Financial added 2.7% to ¥9,191.0, and Mizuho Financial advanced 3.1% to ¥2,916.0.
Vehicle makers advanced following the rise in the yen after the Bank of Japan held rates steady.
Hino Motors jumped 2.5% to ¥452.40, Toyota Motor advanced 0.7% to ¥2,629.50, Honda Motor gained 1% to ¥1,558.0, and Nissan Motor edged up 1.2% to ¥406.90.
Tokai Carbon soared 7.2% to ¥932.90, Fanuc gained 3.7% to ¥3,966.0, and Taiyo Yuden added 2.4% to ¥2,913.50.
Tech stocks were among the leading gainers in Friday's trading, following the surge in New York in overnight trading.
Tokyo Electron increased 5.4% to ¥24,315.0, Advantest gained 1.2% to ¥6,289.0, Screen Holdings declined 1.5% to ¥9,956.0, and Disco Corp. advanced 2.4% to ¥36,260.0.