Market Update
European Indexes Rebound to 3-month High, Natural Gas In Focus
Bridgette Randall
22 Nov, 2022
New York City
European markets closed higher after falling in the previous session driven by higher commodities prices and a sharp reversal in energy prices.
Energy sector stocks led the rebound after natural gas prices soared more than 7% and crude oil prices traded as high as 3%.
Benchmark indexes closed at a 3-month high after investors focused on the latest batch of earnings and natural prices were in focus.
World economies are expected to slow down considerably in 2023, according to the latest report from the OECD.
Global economic growth is expected to slow to 2.2% in 2023 from 3.1% in 2022.
The Paris multilateral agency estimated GDP growth in the eurozone and the U.S. is expected to slow down to 0.5% from 3.3% and 1.8% respectively.
The DAX index increased 0.3% to 14,422.35, the CAC-40 index gained 0.4% to 6,657.53, and the FTSE 100 index added 1.03% to 7,452.84.
The euro held stable at $1.028 and the British pound fetched $1.186.
Natural gas prices rose for the third day more than 4% in a row and prices remained four times ahead of last three-year average.
Russia-based Gazprom said it plans to halt the flow of natural gas through Ukraine as of November 28.
Higher-than-average temperatures in the region have kept natural gas storage near capacity and helped to deal with energy crisis.
Brent crude oil rebounded 1.2% to $88.56 a barrel and TTF natural gas gained 7.2% to 124.10 euros a MWh.
The UK bond yields were in focus after the public sector borrowing surged in October.
Public sector borrowing, excluding banks, rose
Movers: Abercrombie & Fitch, Best Buy, Dell, Dick's Sporting. Dollar Tree, Medtronic, Zoom Video
Scott Peters
22 Nov, 2022
New York City
Abercrombie & Fitch soared 17.2% to $21.40 after the apparel retailer reported stronger-than-expected sales.
The parent of Hollister said third quarter sales declined 3% to $880 million and swung to a net loss of $2.2 million or 4 cents a share from $47 million or 77 cents a year ago.
Best Buy increased 11.4% to $78.82 after the electronics retailer reported a less-than-expected decline in sales.
The retailer said third quarter sales fell 11% to $10.59 billion and net income declined to $277 million or $1.22 a share from $499 million or $2 a share a year ago.
Dell Technologies increased 5.5% to $43.39 after the company reported quarterly results ahead-of-expectations.
Dell said third quarter revenue fell 6% to $24.7 billion and net income plunged 93% to $241 million or 33 cents a share.
In the quarter, services sales increased 6% to $5.8 billion but sales of hardware declined 10% to $18.9 billion from a year ago.
Dick's Sporting Goods rose 7.0% to $114.46 after the retailer lifted its same store outlook for the final quarter of this year.
Dick's said third quarter sales rose 7.7% to $3 billion and net income dropped 28% to $228 million or $2.45 a share from $317 million or $2.78 a year ago.
Dollar Tree declined 8.6% to $150.94 after the deep discount retailer reported better-than-expected sales and earnings.
The retailer said third quarter sales rose 8.1% to $6.9 billion and net income rose 23% to $267 million or $1.20 a share from $216 million or 96 cents a year ago.
Consolidated net sales for the year are now expected in the range of $28.14 billion to $28.28 billion, compared to the previous outlook range of $27.85 billion to $28.10 billion.
Diluted earnings per share for fiscal 2022 are expected to be in the lower half of the company
Retailers Earnings Power Wall Street Rebound
Barry Adams
22 Nov, 2022
New York City
Benchmark indexes on Wall Street traded higher after investors reacted to a slew of corporate earnings and reviewed more comments from the Federal Reserve officials.
Cleveland Federal Reserve President Loretta Mester was the latest to pour cold water on the talks of Fed pausing rates but sounded more supportive of rate hike by at least 50 basis points.
Mester added in an interview with CNBC on Monday that recent inflation data show signs of hope but supportive data over a longer period of time are needed before "we are returning to price stability as soon as we can..
Rate-path and China Worries Keep Global Markets On Edge
Barry Adams
21 Nov, 2022
New York City
Major averages on Wall Street closed lower and investors reviewed comments from the Federal Reserve officials.
San Francisco Fed President Mary Daly said it is premature to rule large-sized rate hike at the next policy meeting in December.
Investors are divided over the size of the rate between those favoring smaller rate hike of 50 basis points, after four back-to-back 75 basis point increases, and those preferring 75 basis points increase to cool 4-decade high inflation near 8%.
European Markets Trend Lower, German Wholesale Inflation Eases
Bridgette Randall
21 Nov, 2022
Frankfurt
Major averages in Europe traded lower after commodities-linked stocks led the decliners on rising coronavirus infections in China.
Geopolitical tensions were also on the rise int the region after Russia escalated bombing around the Zaporizhzhya nuclear power plant.
European markets generally looked beyond an urgent call from the International Atomic Energy Agency "to help prevent nuclear accident" in the Russia-held power plant in Ukraine.
The agency said several parts of the power plant facilities appeared to be damaged but showed no signs of a radiation leak.
The DAX index declined 0.4% to 14,379.93, the CAC-40 index fell 0.2% to 6,634.45 and the FTSE 100 index edged lower 0.1% to 7,376.85.
Markets were also on the defensive after coronavirus infections surged in China, prompting authorities in several cities to impose stricter lockdowns.
In economic news, German producer price inflation in October eased to 34.5% form 45.8% in September, the lowest level in four months, Destatis data showed.
The euro edged slightly lower to $1.02 and the British pound declined to $1.18.
On a monthly basis, the producer prices declined 4.2% in October, reversing the gain of 2.3% in September.
The yield on 10-year German Bunds held steady at 2.024%, French bonds eased to 2.46%, the UK Gilts inched lower to 3.179% and Italian bonds edged up to 3.97%.
Resource stocks were among the leading decliners after commodities prices eased on China demand worries.
Brent crude oil fell as much as $82.11 before recovering to $87.31 a barrel and TTF natural gas futures gained 0.5% to 116.13 per MWh.
BHP Group, Antofagasta and Glencore fell between 1.5% and 2.0% in London trading.
Virgin Money soared 13.5% to 165.15 pence after the British-lender reported better-than-expected full-year results.
The company also announced a stock repurchase program of
Asian Markets Ease, Berkshire Hathaway Hikes Trading House Stakes In Japan
Arjun Pandit
21 Nov, 2022
Mumbai
Asian markets closed lower and inflation worries partly fueled by the rising U.S. dollar coupled with the rising tensions between Russia and NATO nations over the weekend.
The Nikkei index in Tokyo traded sideways and Japanese stocks were in focus after Warren Buffett controlled Berkshire Hathaway increased stakes in five largest trading houses.
Marubeni gained 1.2%, Mitsubishi Corp jumped 4.4%, Mitsui & Co increased 0.2%, Sumitomo Corp advanced 1.2% and Itochu Corp advanced 0.9%.
The Nikkei 225 index edged up 0.2% to 27,944.79, the Shanghai Composite index decreased 0.4% to 3,085.04, the Hang Seng Index dropped 1.9% to 17,655.91 and the Sensex index edged down 0.9% to 61,144.84.
Stocks in India traded lower on general weakness in international markets and rising worries that foreign investors are likely to accelerate funds withdrawal and repatriate on rising U.S. rates.
Archean Chemical advanced 12% to 458.15 rupees after the company raised about $180 million and priced its initial public offering for 407 rupees or $5.0 a share.