Market Update
U.S. and Global Markets Attempt to Claw Back Monday's Losses
Alexander Garcia
07 Aug, 2024
Miami
Stocks attempted to rebound on Wall Street for the second day in a row as market sentiment stabilized and investors tried to recoup Monday's losses.
The S&P 500 index gained more than 1% and the Nasdaq Composite advanced closer to 2% as investors surmised that the recent three-day sell-off may have been overdone.
Investors debated the health of the U.S. economy and looked for alternative indicators to assess the underlying drivers, such as rail cargo loadings, ocean freight demand, online traffic at shopping sites, and credit card charge volumes.
Market indexes rebounded on Wednesday after falling sharply in the previous three sessions in a row, following worries that labor market conditions are deteriorating faster than previously estimated and factory activities shrank for the third month in a row in June.
Moreover, market sentiment was weak after mega-cap tech companies reported weaker-than-expected earnings results, stoking fears that the elevated capital expenditure to build out artificial intelligence infrastructure may be cut.
U.S. Indexes and Treasury Yields
The S&P 500 index gained 0.4% to 5,263.01, the Nasdaq Composite advanced 0.6% to 16,450.79, and the Russell 2000 index rose 0.1% to 2,064.88.
The yield on 2-year Treasury notes edged higher to 4.0%, 10-year Treasury notes increased to 3.93%, and 30-year Treasury bonds advanced to 4.23%.
WTI crude oil increased $1.75 to $75.03 a barrel, and natural gas prices edged up 6 cents to $2.07 a thermal unit.
Gold increased by $13.75 to $2,397.68 an ounce, and silver rose by $0.09 to $26.92.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 103.22.
U.S. Stock Movers
Airbnb plunged 14.2% to $111.92 after the online booking platform reported a weaker-than-expected third-quarter outlook.
The booking platform operator estimated revenue to fall between $3.67 billion and $3.73 billion, slightly below analysts expectations of at least $3.85 billion.
Wynn Resorts declined 0.3% to $76.10 after the casino and resort operator reported weaker-than-expected revenue in the second quarter.
Reddit dropped 6% to $51.08, despite the social news company reporting better-than-expected second quarter revenue and earnings and issuing third quarter revenue in line with market expectations.
The company estimated revenue in the third quarter to fall between $290 million and $310 million.
Walt Disney & Company decreased 2.5% to $87.77 after the theme park operator reported better-than-expected quarterly results.
Lyft Inc. dropped 16.6% to $9.15, and the digital ride-hailing company issued weaker-than-expected third-quarter revenue guidance.
The company estimated gross booking in the third quarter to range between $4.0 billion and $4.1 billion and adjusted operating earnings between $90 million and $95 million.
CVS Health decreased 0.6% to $57.95 after the drugstore chain operator reported better-than-expected second quarter earnings, but the company lowered its full-year net income outlook, citing higher costs.
Super Micro Computer dropped 14.3% to $528.77 after the computer server company reported weaker-than-expected fiscal fourth quarter earnings.
The company also announced a 10-for-1 stock split.
European Markets Rebounded Shaking Off Global Worries
European markets rebounded as investors reacted to domestic economic updates and economic reports in China.
Benchmark indexes in London, Paris, and Frankfurt increased between 1% and 2%, and German industrial output rose more than expected and exports fell in June.
Global market sentiment recovered after days of weakness following a string of weak key economic U.S. data and weaker-than-expected earnings from big tech companies.
Moreover, investors were also on edge after the Bank of Japan unexpectedly raised the interest rate, forcing the yen carry trade to unwind, roiling global financial markets, and spiking volatility to a level not seen since 1987.
Advanced chip equipment makers were under pressure for the second week in a row after investors unwound artificial intelligence-linked stocks on fears of stretched valuations and a possible slowdown in spending by mega-cap tech companies.
Germany's Exports and Imports Eased In June
Calendar and seasonally adjusted goods exports from Germany in June declined 3.4% from the previous month to €127.7 billion, and goods imports rose 0.3% to €107.3 billion, resulting in a trade surplus of €20.4 billion.
On an annual basis, exports decreased 4.4% and imports fell 6.4%, the Federal Statistics Office, or Destatis, reported Thursday.
The trade balance in May 2024 was €25.3 billion, and it was €19.0 billion in June 2023.
Exports to the EU countries decreased 3.4% to €69.7 billion, shipments to the U.S. fell 7.7% to €12.9 billion, shipments to China rose 3.4% to €7.9 billion, and shipments to the U.K. edged down 0.6% to €6.5 billion.
Imports from the EU nations eased 0.4% to €51.9 billion, declined 6.9% to €12.9 billion, from the U.S. decreased 6.5% to €7.4 billion, and from the UK increased 11.1% to €3.1 billion.
German Industrial Output Expanded
In a separate report, the statistical office noted industrial production increased 1.4% in June but declined 4.1% from a year ago.
Production rebounded largely because of a 7.5% increase in the automotive sector, reversing the decline of 9.9% in the previous month.
Industrial production, excluding energy and construction, increased by 1.5% in June compared to May, adjusted for seasonal and calendar effects.
Production of capital goods rose by 2.5%, intermediate goods by 2.1%, but consumer goods fell by 2.4%.
Outside industry, electricity and energy production rose by 2.9%, and construction activities rose by 0.3% in June 2024 compared to the previous month.
Europe Indexes and Yields
The DAX index increased by 1.5% to 17,615.15; the CAC-40 index rose by 1.9% to 7,266.01; and the FTSE 100 index advanced by 1.8% to 8,186.88.
The yield on 10-year German bonds edged higher to 2.28%, French bonds inched higher to 3.02%, the UK gilts inched higher to 3.92%, and Italian bonds increased to 3.71%.
The euro edged down to $1.09; the British pound inched lower to $1.272; and the U.S. dollar weakened to 86.39 Swiss cents.
Brent crude increased $1.72 to $78.19 a barrel, and the Dutch TTF natural gas fell by €2.15 to €38.73 per MWh.
Europe Stock Movers
Novo Nordisk declined 3.7% to DKK 855.0 despite the Danish pharmaceutical company reporting weaker-than-expected second quarter profit and trimming its full-year outlook.
Puma SE decreased 11.2% to €36.79 after the athleticwear maker trimmed its full-year outlook.
Commerzbank AG decreased 4.9% to €12.53 after the financial services company reported a decline in profit in the second quarter.
Continental AG soared 5.8% to €57.54 after the automobile parts maker reported solid second-quarter results.
Beiersdorf AG decreased 1.8% to €129.05, and the consumer products maker reported lower-than-expected second quarter results.
ABN AMRO jumped 4.8% to €15.13 after the Dutch financial services company lifted its annual net interest income estimate.
Coca-Cola HBC decreased 2.7% to 2,686.0 pence after the Greece-based beverage bottling company cited macroeconomic headwinds in the second half of the year.
Glencore increased 2.2% to 401.60 pence after the mining company shelved its plan to spin off its coal mining division, despite gaining support from its shareholders.
Vodafone Group gained 3.2% to 72.66 pence after the wireless telecom operator launched its €500 million stock repurchase plan.
WPP declined 2.6% to 698.40 pence after the advertising services provider agreed to sell its majority stake in FGS Global to KKR at an enterprise value of £1.7 billion.
The state sale will generate a total of £604 million after tax.
TotalEnergies SE increased 2.5% to €60.64 after the company agreed to sell a 50% stake in Total PARCO Pakistan Ltd. to Switzerland-based Gunvor Group.
Japan Indexes Extended 2-day Gains, Yen Weakened Again
Stock market indexes rebounded in Tokyo for the second day in a row, but market participants were worried about the outlook for the yen in the near future.
The Nikkei 225 stock average jumped more than 1%, and the broader Topix advanced more than 2%.
Global markets rebounded after calm returned to financial markets, following steep losses over the last five trading sessions as investors worried about the weakening U.S. economic conditions and the unexpected increase in interest rates by the Bank of Japan.
The Bank of Japan's policy tightening led to a swift unwinding of the yen carry trade, stoking a surge in market volatility not seen since 1987.
The yen eased to 146.90 against the U.S. dollar after Bank of Japan Deputy Governor Shinichi Uchida said the central bank will not raise rates if the market is unstable.
Those comments contributed to positive market sentiment and supported the market advance in Thursday's trading.
However, investors worry that the pressure on the yen is likely to remain high, as the wide yield gap between the U.S. and Japan is likely to persist.
Japan Stock Movers
The Nikkei 225 stock average jumped 1.3% to 35,124.54, and the Topix index advanced 2.2% to 2,489.38.
Financial services providers led the market gainers in Thursday's trading.
Mitsubishi UFJ Financial, Sumitomo Mitsui Financial, and Mizuho Financial advanced between 8% and 10%.
Leading industrial exporters led the gainers, and Canon jumped 9.9% to ¥4,405.0, Mitsubishi Electric advanced 3% to ¥2,160.50, and SoftBank Group jumped 6.5% to ¥7,544.0.
Nichirei jumped 7.6% to ¥3,970.0, Nichias advanced 13.1% to ¥5,230.0, and Fujikura increased 8.3% to ¥2,650.0.
Daikin Industries dropped 9.5% to ¥17,200.0 after the world's largest air conditioner manufacturer reported weaker-than-expected results.
Net sales in the June quarter increased 14% to 1.25 trillion yen, and net income fell 21% to 63.10 billion yen from a year ago.
The company estimated fiscal year revenue of 4.54 trillion yen, net income of 2.67 billion yen, and dividends of 320 yen.
China Indexes Rebound from 3-Month Lows
Market indexes in Shanghai and Hong Kong rebounded from a three-month low after calm returned to global markets.
The Hang Seng index jumped more than 1.5%, and the CSI 300 index advanced 0.4%.
Financial markets recovered from steep losses over the last three days, heightened by worries about the unexpected weakening of U.S. economic conditions and the Bank of Japan's increase in interest rates.
Positive market sentiment was supported by a strong rise in China's exports and imports in July, indicating sustained domestic demand for imported goods.
China's Exports and Imports Rise 7% In July
Exports increased 7% to $300.6 billion, and imports advanced 7.2% to $216 billion, driving the trade surplus to $84.7 billion, lower than $99.1 billion in June and higher than $80 billion a year ago.
China's exports to the U.S. rose for the third month in a row and advanced 8%; to the ASEAN region, they increased 12.2%; to the European Union, they rose 7.9%; but declined by 2.8% to Russia.
Exports to the U.S. have been surging in the past few months, ahead of the expected tariffs on over 100 Chinese goods in the next few weeks.
However, the outlook for China's exports is not clear in the second half, after the implementation of additional tariffs and import hurdles in the U.S. and the European Union.
China Stock Movers
The Hang Seng index soared 1.8% to 16,951.78, and the CSI 300 index added 0.4% to 3,355.76.
Internet leaders led the gainers in Hong Kong trading after falling for three weeks in a row.
Alibaba Group advanced 2.9% to HK $77.45, Tencent Holding increased 2.9% to HK $364.60, and Meituan gained 1.8% to HK $107.50.
Techtronic Industries increased 4.9% to HK$96.05 after the power tool maker reported a 16% increase in first-half profit.
BYD Company advanced 0.08% to HK $211.05, Li Auto jumped 4.1% to HK $76.05, and Xpeng decreased 1.9% to HK $28.10.
U.S. Movers: Airbnb, CVS Health, Disney, Lyft, Reddit, Super Micro
Scott Peters
07 Aug, 2024
New York City
Airbnb plunged 14.2% to $111.92 after the online booking platform reported a weaker-than-expected third-quarter outlook.
The booking platform operator estimated revenue to fall between $3.67 billion and $3.73 billion, slightly below analysts expectations of at least $3.85 billion.
Wynn Resorts declined 0.3% to $76.10 after the casino and resort operator reported weaker-than-expected revenue in the second quarter.
Reddit dropped 6% to $51.08, despite the social news company reporting better-than-expected second quarter revenue and earnings and issuing third quarter revenue in line with market expectations.
The company estimated revenue in the third quarter to fall between $290 million and $310 million.
Walt Disney & Company decreased 2.5% to $87.77 after the theme park operator reported better-than-expected quarterly results.
Lyft Inc. dropped 16.6% to $9.15, and the digital ride-hailing company issued weaker-than-expected third-quarter revenue guidance.
The company estimated gross booking in the third quarter to range between $4.0 billion and $4.1 billion and adjusted operating earnings between $90 million and $95 million.
CVS Health decreased 0.6% to $57.95 after the drugstore chain operator reported better-than-expected second quarter earnings, but the company lowered its full-year net income outlook, citing higher costs.
Super Micro Computer dropped 14.3% to $528.77 after the computer server company reported weaker-than-expected fiscal fourth quarter earnings.
The company also announced a 10-for-1 stock split.
Wall Street Extends Rebound to Second Day Amid Worries of Economic Slowdown
Barry Adams
07 Aug, 2024
New York City
Stocks rebounded on Wall Street for the second day in a row as market sentiment stabilized.
The S&P 500 index gained more than 1% and the Nasdaq Composite advanced closer to 2% as investors surmised that the recent three-day sell-off may have been overdone.
Investors debated the health of the U.S. economy and looked for alternative indicators to assess the underlying drivers, such as rail cargo loadings, ocean freight demand, online traffic at shopping sites, and credit card charge volumes.
Market indexes rebounded on Wednesday after falling sharply in the previous three sessions in a row, following worries that labor market conditions are deteriorating faster than previously estimated and factory activities shrank for the third month in a row in June.
Moreover, market sentiment was weak after mega-cap tech companies reported weaker-than-expected earnings results, stoking fears that the elevated capital expenditure to build out artificial intelligence infrastructure may be cut.
U.S. Indexes and Treasury Yields
The S&P 500 index gained 1.3% to 5,311.19, the Nasdaq Composite advanced 1.7% to 16,620.93, and the Russell 2000 index rose 1.1% to 2,086.65.
The yield on 2-year Treasury notes edged higher to 4.0%, 10-year Treasury notes increased to 3.93%, and 30-year Treasury bonds advanced to 4.23%.
WTI crude oil increased $1.71 to $74.69 a barrel, and natural gas prices edged up 9 cents to $2.10 a thermal unit.
Gold increased by $19.65 to $2,403.78 an ounce, and silver declined by $0.07 to $27.07.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 103.18.
U.S. Stock Movers
Airbnb plunged 14.2% to $111.92 after the online booking platform reported a weaker-than-expected third-quarter outlook.
The booking platform operator estimated revenue to fall between $3.67 billion and $3.73 billion, slightly below analysts expectations of at least $3.85 billion.
Wynn Resorts declined 0.3% to $76.10 after the casino and resort operator reported weaker-than-expected revenue in the second quarter.
Reddit dropped 6% to $51.08, despite the social news company reporting better-than-expected second quarter revenue and earnings and issuing third quarter revenue in line with market expectations.
The company estimated revenue in the third quarter to fall between $290 million and $310 million.
Walt Disney & Company decreased 2.5% to $87.77 after the theme park operator reported better-than-expected quarterly results.
Lyft Inc. dropped 16.6% to $9.15, and the digital ride-hailing company issued weaker-than-expected third-quarter revenue guidance.
The company estimated gross booking in the third quarter to range between $4.0 billion and $4.1 billion and adjusted operating earnings between $90 million and $95 million.
CVS Health decreased 0.6% to $57.95 after the drugstore chain operator reported better-than-expected second quarter earnings, but the company lowered its full-year net income outlook, citing higher costs.
Super Micro Computer dropped 14.3% to $528.77 after the computer server company reported weaker-than-expected fiscal fourth quarter earnings.
The company also announced a 10-for-1 stock split.
Europe Movers: ABN AMRO, Beiersdorf, Coca Cola HBC, Continental AG, Commerzbank, Glencore, Vodafone, Puma, TotalEnergies
Inga Muller
07 Aug, 2024
Frankfurt
European market indexes traded higher and overcame global worries after market sentiment stabilized.
The bond yields in the region traded near a six-month low, and the euro and the pound edged slightly higher.
The DAX index increased by 1.3% to 17,573.64; the CAC-40 index rose by 1.7% to 7,252.66; and the FTSE 100 index advanced by 1.2% to 8,116.19.
The yield on 10-year German bonds edged higher to 2.28%, French bonds inched higher to 3.02%, the UK gilts inched higher to 3.92%, and Italian bonds increased to 3.71%.
Novo Nordisk declined 3.7% to DKK 855.0 despite the Danish pharmaceutical company reporting weaker-than-expected second quarter profit and trimming its full-year outlook.
Puma SE decreased 11.2% to €36.79 after the athleticwear maker trimmed its full-year outlook.
Commerzbank AG decreased 4.9% to €12.53 after the financial services company reported a decline in profit in the second quarter.
Continental AG soared 5.8% to €57.54 after the automobile parts maker reported solid second-quarter results.
Beiersdorf AG decreased 1.8% to €129.05, and the consumer products maker reported lower-than-expected second quarter results.
ABN AMRO jumped 4.8% to €15.13 after the Dutch financial services company lifted its annual net interest income estimate.
Coca-Cola HBC decreased 2.7% to 2,686.0 pence after the Greece-based beverage bottling company cited macroeconomic headwinds in the second half of the year.
Glencore increased 2.2% to 401.60 pence after the mining company shelved its plan to spin off its coal mining division, despite gaining support from its shareholders.
Vodafone Group gained 3.2% to 72.66 pence after the wireless telecom operator launched its €500 million stock repurchase plan.
WPP declined 2.6% to 698.40 pence after the advertising services provider agreed to sell its majority stake in FGS Global to KKR at an enterprise value of £1.7 billion.
The state sale will generate a total of £604 million after tax.
TotalEnergies SE increased 2.5% to €60.64 after the company agreed to sell a 50% stake in Total PARCO Pakistan Ltd. to Switzerland-based Gunvor Group.
European Markets Rebounded Shaking Off Global Worries, German Exports and Imports Declined In June
Bridgette Randall
07 Aug, 2024
London
European markets rebounded as investors reacted to domestic economic updates and economic reports in China.
Benchmark indexes in London, Paris, and Frankfurt increased between 1% and 2%, and German industrial output rose more than expected and exports fell in June.
Global market sentiment recovered after days of weakness following a string of weak key economic U.S. data and weaker-than-expected earnings from big tech companies.
Moreover, investors were also on edge after the Bank of Japan unexpectedly raised the interest rate, forcing the yen carry trade to unwind, roiling global financial markets, and spiking volatility to a level not seen since 1987.
Advanced chip equipment makers were under pressure for the second week in a row after investors unwound artificial intelligence-linked stocks on fears of stretched valuations and a possible slowdown in spending by mega-cap tech companies.
Germany's Exports and Imports Eased In June
Calendar and seasonally adjusted goods exports from Germany in June declined 3.4% from the previous month to €127.7 billion, and goods imports rose 0.3% to €107.3 billion, resulting in a trade surplus of €20.4 billion.
On an annual basis, exports decreased 4.4% and imports fell 6.4%, the Federal Statistics Office, or Destatis, reported Thursday.
The trade balance in May 2024 was €25.3 billion, and it was €19.0 billion in June 2023.
Exports to the EU countries decreased 3.4% to €69.7 billion, shipments to the U.S. fell 7.7% to €12.9 billion, shipments to China rose 3.4% to €7.9 billion, and shipments to the U.K. edged down 0.6% to €6.5 billion.
Imports from the EU nations eased 0.4% to €51.9 billion, declined 6.9% to €12.9 billion, from the U.S. decreased 6.5% to €7.4 billion, and from the UK increased 11.1% to €3.1 billion.
German Industrial Output Expanded
In a separate report, the statistical office noted industrial production increased 1.4% in June but declined 4.1% from a year ago.
Production rebounded largely because of a 7.5% increase in the automotive sector, reversing the decline of 9.9% in the previous month.
Industrial production, excluding energy and construction, increased by 1.5% in June compared to May, adjusted for seasonal and calendar effects.
Production of capital goods rose by 2.5%, intermediate goods by 2.1%, but consumer goods fell by 2.4%.
Outside industry, electricity and energy production rose by 2.9%, and construction activities rose by 0.3% in June 2024 compared to the previous month.
Europe Indexes and Yields
The DAX index increased by 1.3% to 17,573.64; the CAC-40 index rose by 1.7% to 7,252.66; and the FTSE 100 index advanced by 1.2% to 8,116.19.
The yield on 10-year German bonds edged higher to 2.28%, French bonds inched higher to 3.02%, the UK gilts inched higher to 3.92%, and Italian bonds increased to 3.71%.
The euro edged down to $1.09; the British pound inched lower to $1.272; and the U.S. dollar weakened to 86.39 Swiss cents.
Brent crude increased $1.22 to $77.21 a barrel, and the Dutch TTF natural gas fell by €0.50 to €37.08 per MWh.
Europe Stock Movers
Novo Nordisk declined 3.7% to DKK 855.0 despite the Danish pharmaceutical company reporting weaker-than-expected second quarter profit and trimming its full-year outlook.
Puma SE decreased 11.2% to €36.79 after the athleticwear maker trimmed its full-year outlook.
Commerzbank AG decreased 4.9% to €12.53 after the financial services company reported a decline in profit in the second quarter.
Continental AG soared 5.8% to €57.54 after the automobile parts maker reported solid second-quarter results.
Beiersdorf AG decreased 1.8% to €129.05, and the consumer products maker reported lower-than-expected second quarter results.
ABN AMRO jumped 4.8% to €15.13 after the Dutch financial services company lifted its annual net interest income estimate.
Coca-Cola HBC decreased 2.7% to 2,686.0 pence after the Greece-based beverage bottling company cited macroeconomic headwinds in the second half of the year.
Glencore increased 2.2% to 401.60 pence after the mining company shelved its plan to spin off its coal mining division, despite gaining support from its shareholders.
Vodafone Group gained 3.2% to 72.66 pence after the wireless telecom operator launched its €500 million stock repurchase plan.
WPP declined 2.6% to 698.40 pence after the advertising services provider agreed to sell its majority stake in FGS Global to KKR at an enterprise value of £1.7 billion.
The state sale will generate a total of £604 million after tax.
TotalEnergies SE increased 2.5% to €60.64 after the company agreed to sell a 50% stake in Total PARCO Pakistan Ltd. to Switzerland-based Gunvor Group.
Japan Indexes Extended 2-day Gains, Yen Weakened Again Following BoJ Comments
Akira Ito
07 Aug, 2024
Tokyo
Stock market indexes rebounded in Tokyo for the second day in a row, but market participants were worried about the outlook for the yen in the near future.
The Nikkei 225 stock average jumped more than 1%, and the broader Topix advanced more than 2%.
Global markets rebounded after calm returned to financial markets, following steep losses over the last five trading sessions as investors worried about the weakening U.S. economic conditions and the unexpected increase in interest rates by the Bank of Japan.
The Bank of Japan's policy tightening led to a swift unwinding of the yen carry trade, stoking a surge in market volatility not seen since 1987.
The yen eased to 146.90 against the U.S. dollar after Bank of Japan Deputy Governor Shinichi Uchida said the central bank will not raise rates if the market is unstable.
Those comments contributed to positive market sentiment and supported the market advance in Thursday's trading.
However, investors worry that the pressure on the yen is likely to remain high, as the wide yield gap between the U.S. and Japan is likely to persist.
Japan Stock Movers
The Nikkei 225 stock average jumped 1.3% to 35,124.54, and the Topix index advanced 2.2% to 2,489.38.
Financial services providers led the market gainers in Thursday's trading.
Mitsubishi UFJ Financial, Sumitomo Mitsui Financial, and Mizuho Financial advanced between 8% and 10%.
Leading industrial exporters led the gainers, and Canon jumped 9.9% to ¥4,405.0, Mitsubishi Electric advanced 3% to ¥2,160.50, and SoftBank Group jumped 6.5% to ¥7,544.0.
Nichirei jumped 7.6% to ¥3,970.0, Nichias advanced 13.1% to ¥5,230.0, and Fujikura increased 8.3% to ¥2,650.0.
Daikin Industries dropped 9.5% to ¥17,200.0 after the world's largest air conditioner manufacturer reported weaker-than-expected results.
Net sales in the June quarter increased 14% to 1.25 trillion yen, and net income fell 21% to 63.10 billion yen from a year ago.
The company estimated fiscal year revenue of 4.54 trillion yen, net income of 2.67 billion yen, and dividends of 320 yen.
Financial Markers Rebound in Shanghai and Hong Kong, China Trade Surplus Shrinks In July
Li Chen
07 Aug, 2024
Hong Kong
Market indexes in Shanghai and Hong Kong rebounded from a three-month low after calm returned to global markets.
The Hang Seng index jumped more than 1.5%, and the CSI 300 index advanced 0.4%.
Financial markets recovered from steep losses over the last three days, heightened by worries about the unexpected weakening of U.S. economic conditions and the Bank of Japan's increase in interest rates.
Positive market sentiment was supported by a strong rise in China's exports and imports in July, indicating sustained domestic demand for imported goods.
Exports increased 7% to $300.6 billion, and imports advanced 7.2% to $216 billion, driving the trade surplus to $84.7 billion, lower than $99.1 billion in June and higher than $80 billion a year ago.
China's exports to the U.S. rose for the third month in a row and advanced 8%; to the ASEAN region, they increased 12.2%; to the European Union, they rose 7.9%; but declined by 2.8% to Russia.
Exports to the U.S. have been surging in the past few months, ahead of the expected tariffs on over 100 Chinese goods in the next few weeks.
However, the outlook for China's exports is not clear in the second half, after the implementation of additional tariffs and import hurdles in the U.S. and the European Union.
China Stock Movers
The Hang Seng index soared 1.8% to 16,951.78, and the CSI 300 index added 0.4% to 3,355.76.
Internet leaders led the gainers in Hong Kong trading after falling for three weeks in a row.
Alibaba Group advanced 2.9% to HK $77.45, Tencent Holding increased 2.9% to HK $364.60, and Meituan gained 1.8% to HK $107.50.
Techtronic Industries increased 4.9% to HK$96.05 after the power tool maker reported a 16% increase in first-half profit.
BYD Company advanced 0.08% to HK $211.05, Li Auto jumped 4.1% to HK $76.05, and Xpeng decreased 1.9% to HK $28.10.
India Movers: Bata, Cummins India, Gulf Oil, Linde India, Lupin, PB FIntech, VIP Industries, Tata Power
Arun Goswami
07 Aug, 2024
Mumbai
Stocks in Mumbai recovered from two days of steep losses driven by volatile international markets.
The Reserve Bank of India is expected to hold interest rates steady at the end of the policy meeting on Thursday.
The Sensex index increased by 0.8% to 79,237.88, and the Nifty index rose 0.9% to 24,222.55.
On the Mumbai stock exchange, 74 stocks traded at their 52-week highs, and 9 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds inched lower to 6.86%, and the Indian rupee edged lower to ₹83.91 against the U.S. dollar.
PB Fintech increased 1.4% to ₹1,454.95, and the online insurance marketplace operator swung to a profit in the June quarter.
Revenue increased 52% to ₹1,010 crore from ₹666 crore, and net income swung to a profit of ₹60 crore from a loss of ₹11.9 crore in the period year over year.
Cummins India declined 0.9% to ₹3,490.0, and the industrial equipment maker reported a sharp jump in profit in the June quarter.
Revenue increased 4.3% to ₹2,304 crore from ₹2,208.7 crore, and net income soared 33% to ₹419.8 crore from ₹315.7 crore a year ago.
Linde India declined 0.2% to ₹7,784.0, and the natural gas company reported mixed quarterly results.
Revenue in the June quarter fell 9.4% to ₹638.9 crore from ₹636.1 crore, and net income advanced 13.8% to ₹113.7 crore from ₹99.9 crore a year ago.
VIP Industries gained 1.4% to ₹451.0, and the molded luggage maker reported a steep decline in earnings in the June quarter.
Revenue edged up 0.4% to 638.9 crore from 636.1 crore, and net income plunged 93% to 4 crore from 57.8 crore a year ago.
Bata India declined 4.5% to ₹1,447.25, and footwear retailer reported a jump in income in the June quarter driven by a one-time exceptional gain.
Revenue fell 1.4% to ₹944.6 crore from ₹958.1 crore, but net income advanced 62.8% to ₹174 crore from ₹106.9 crore a year ago.
Tata Power decreased 2.2% to ₹427.70, and the electric power generator reported a rise in revenue and net income in the June quarter.
Revenue increased 14% to ₹17,294 crore from ₹15,213 crore and net income advanced 4% to ₹1,189 crore from ₹1,141 crore a year ago.
Lupin Ltd. jumped 4.7% to ₹2,001.25 after the company reported solid results in the June quarter.
Revenue increased 16% to ₹5,514.60 crore from ₹4,895.10 crore, and net income soared 77% to ₹801.3 crore from ₹452.3 crore a year ago.
Gulf Oil Lubricants India soared 10.3% to ₹1,189.80 after the chemical company reported solid quarterly results.
Revenue increased 9% to ₹885.1 crore from ₹811.7 crore, and net income soared 29% to ₹88 crore from ₹68 crore a year ago.
U.S. and Global Markets Brace for Volatile Road Ahead
Alexander Garcia
06 Aug, 2024
Miami
In volatile trading, market indexes on Wall Street staged a sharp reversal following losses in the previous trading session.
The S&P 500 index and the Nasdaq Composite advanced 2% as investors searched for bargains in mega-cap stocks.
Nvidia, ASML Holding, Broadcom, Qualcomm, TSMC, Arm Holdings, and Sanmina Corp. jumped between 3% and 6%.
Meta Platforms, Amazon.com, Microsoft, and Alphabet were among the winners, with a rise between 1% and 6%; however, Apple extended losses to the second day in a row after Berkshire Hathaway trimmed its position by half.
Investors returned to buy more stocks in the hopes that the previous three-session sell-off was overdone and underlying economic fundamentals are solid, despite the recent moderation in labor market conditions.
The yield on 10-year Treasury notes rebounded above 3.8% after dropping to a one-year low of 3.67% in the previous session.
The U.S. international goods and services trade gap shrank in June, the Commerce Department reported Tuesday.
The trade gap shrank to $73.1 billion from the revised 20-month peak of a $75 billion deficit in the previous month.
Exports increased 1.5% from the previous month to $265.9 billion, and imports rose at a slower pace of 0.6% to $339 billion.
Exports advanced to the second-highest on record, driven by strong demand for aircraft, automotive vehicles, and petroleum energy products.
Trade deficit with China fell by $1.6 billion to $22.3 billion as more Chinese companies shipped goods from Vietnam, Mexico, and Malaysia to avoid punitive tariffs.
U.S. Indexes and Treasury Yields
The S&P 500 index gained 2.0% to 5,292.95, the Nasdaq Composite advanced 2.2% to 16,561.43, and the Russell 2000 index rose 1.4% to 2,066.50.
The yield on 2-year Treasury notes edged higher to 3.95%, 10-year Treasury notes increased to 3.83%, and 30-year Treasury bonds advanced to 4.12%.
WTI crude oil increased $0.51 to $73.52 a barrel, and natural gas prices edged up 2 cents to $1.96 a thermal unit.
Gold decreased by $14.55 to $2,390.06 an ounce, and silver declined by $0.09 to $27.17.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 102.52.
U.S. Stock Movers
Caterpillar advanced 4.2% to $329.97, and the earth moving equipment maker reported better-than-expected quarterly results.
Palantir Technologies soared 11.5% to $26.79 after the data analytics company lifted its annual revenue outlook.
The company estimated annual revenue between $2.74 billion and $2.75 billion, higher than the previously estimated range between $2.68 billion and $2.69 billion.
Uber Technologies increased 7.7% to $62.99 after the ride-hailing service provider reported better-than-expected second quarter results.
Revenue increased 16% to $10.7 billion from $9.2 billion, net income attributable to shareholders soared 158% to $1.0 billion from $394 million, and earnings per share rose to 47 cents from 18 cents a year ago.
Uber delivery segment, which includes delivery of food from restaurants and stores, saw gross bookings increase 16% to $18.1 billion from $15.6 billion, and revenue rose 8% to $3.3 billion from $3.1 billion a year ago.
The company also said gross bookings are likely to increase in the current quarter from the previous quarter on solid demand for its services.
Yum China increased 12.8% to $33.58 after the Shanghai-based franchisee of Pizza Hut and Taco Bell fast food stores reported better-than-expected quarterly results.
Revenue in the second quarter increased to $2.68 billion and fell short of market expectations, and adjusted earnings per share rose to 55 cents and surpassed market expectations of at least 49 cents.
The company also said its chief financial officer is planning to step down.
European Markets Hovered Near Flatline
European markets struggled to advance following losses in the previous session amid rising Middle East tensions, lukewarm corporate earnings, and mounting concerns about the U.S. economic slowdown.
Benchmark indexes in Paris, London, and Frankfurt traded around the flatline after investors reviewed eurozone retail sales and German factory orders.
Eurozone Retail Sales Fall In June
Retail sales in the eurozone decreased 0.3% on the month and on the year in June, Eurostat reported Tuesday.
Retail sales declined on a monthly basis for the fourth time in the last seven months, and food, drink, and tobacco sales declined 0.7%, compared to a 1% rise.
Non-food product sales decline slowed to 0.1%, following a 0.3% decrease in the previous month.
On the other hand, sales of auto fuel increased 0.5%, extending a 0.3% rise.
German Factory Orders Rebounded in June
German factory orders adjusted for season and calendar factors rebounded in June after falling in five previous months in a row, the Federal Statistics Office, or Destatis, reported Tuesday.
Orders for manufactured goods were less volatile on a quarterly basis and decreased 1.4% in the second quarter ending in June from the previous quarter.
Automotive orders increased 9.3%; orders for ships, trains, and aircraft soared 11.7%; however, orders for electronic and optical equipment declined 7.9% from the previous month.
Orders for capital goods increased by 9.2%, but intermediate goods fell by 1.5%, and consumer goods dropped 7.1%.
Domestic orders rose 9.1% and foreign orders inched up 0.4%, with orders from the eurozone declining 0.3% and outside the currency union rising 0.9%.
Europe Indexes and Yields
The DAX index increased by 0.1% to 17,354.32; the CAC-40 index fell by 0.3% to 7,130.04; and the FTSE 100 index rose by 0.2% to 8,026.69.
European bond yields dropped to six-month lows as investors sought safety in government securities amid growing worries about the global economic slowdown and rising geopolitical tensions.
The yield on 10-year German bonds edged higher to 2.17%, French bonds inched higher to 2.95%, the UK gilts inched higher to 3.90%, and Italian bonds increased to 3.66%.
The euro edged down to $1.09; the British pound inched lower to $1.269; and the U.S. dollar weakened to 85.40 Swiss cents.
Brent crude decreased $0.32 to $76.61 a barrel, and the Dutch TTF natural gas fell by €0.82 to €36.62 per MWh.
Europe Stock Movers
Abrdn jumped 2.2% to 165.76 pence after the UK-based asset management company reported better-than-expected first-half results.
Adecco Group increased 1.1% to CHF 28.12 after the Swiss staffing company's second-quarter results surpassed market expectations.
Monte dei Paschi di Siena soared 7.3% to €4.66 after the Italian bank raised its profit outlook.
SIG Group AG decreased 1.4% to CHF 17.09 after the Swiss construction material company reported a loss in the first half.
Domino's Pizza decreased 6.5% to 288.80 pence after the pizza delivery company estimated its annual profit to hover near the lower end of market expectations.
Volatile Japan Indexes Rebound 10% Following Historic Plunge In Monday's Trading
After a day of tumultuous trading, benchmark indexes in Tokyo recouped losses in the previous session as market sentiment stabilized.
The Nikkei 225 and the Topix indexes jumped around 10% as investors searched for bargains after three-day losses totaled nearly 20%.
In fact, the surge in Tuesday's trading was the largest-ever increase in points in the Nikkei 225's history, surpassing its previous increase of 2,676.55 points in October 1990.
The Nikkei 225 stock plunged more than 12% in Monday's trading as currency traders unwound the so-called "carry trade."
Carry trade had dominated currency market speculation for more than a decade, where investors borrowed money in the Japanese yen and invested in U.S. or European assets that yielded a higher annual return.
However, that currency arbitrage became far more risky after the Bank of Japan unexpectedly increased its policy rate for the second time in a row since March and signaled additional rate hikes.
Benchmark indexes accumulated nearly 20% of losses over the three days to Monday, amid rising market anxieties after currency traders unwound the carry trade, investors walked away from frothy valuations of the artificial intelligence-linked stocks, and the strong rebound in the yen dented the earnings growth outlook of exporting companies.
On Tuesday, the yen weakened to 145.34 from 141.43 against the U.S. dollar in Monday's trading.
On the economic front, average cash earnings increased 4.5% in June, accelerating from an upwardly revised 2% in May, the Ministry of Health, Labor, and Welfare reported Tuesday.
Japan's nominal wage increase outpaced the core inflation rate of 2.6%, leading to the first gain in real wages in 27 months.
The average of household spending in Japan was up a seasonally adjusted 0.1% on month but fell 1.4% in real terms on the year in June, the Ministry of Internal Affairs and Communications said on Tuesday.
Household spending in June was 280,888 yen and the real average of monthly income per household increased 3.1% from a year ago to 957,457 yen.
Japan Stock Movers
The Nikkei 225 stock average soared 10.2% or 3,217.04 points to 34,675.46, and the Topix index advanced 9.3% to 2,434.21.
Widely followed advanced chipmaking equipment makers rebounded, and Tokyo Electron, Advantest, and Screen Holdings jumped between 10% and 15%.
Leading banks also participated in the market's rebound.
Mitsubishi UFJ gained 5.8% to ¥1,318.0, Sumitomo Mitsui Financial declined 2% to ¥8,000.0, and Mizuho Financial Group jumped 5.6% to ¥2,596.50.
Honda Motor, Toyota Motor, and Nissan Motor gained between 10% and 12%.
Kikkoman soared 21% to ¥1,744.0 after the food products maker reported a surge in net income in the June quarter.
Revenue increased 12% to 178.22 billion yen, and net income soared 70% to 18.1 billion yen.
The company also reiterated its annual net income outlook of 57.60 billion yen and its net sales estimate of 685 billion yen.
Indexes In Shanghai and Hong Kong Fail to Stay Above Flatline
Stocks in Hong Kong and Shanghai rebounded after market sentiment stabilized, and investors looked forward to the release of corporate results.
The Hang Seng and the CSI indexes rebounded in early trading after Japan's Nikkei 225 stock average recouped most of the historic losses in the previous session amid panic selling.
But market indexes turned lower after a weak domestic economic outlook and earnings growth uncertainty overshadowed market sentiment in Hong Kong and Shanghai.
Investors looked forward to the release of official consumer price inflation and producer price inflation data on Friday.
Economists are estimating consumer price inflation to rebound by 0.3% in July, but wholesale deflation will persist for the 22nd month in a row and show a decline of 0.9%.
The Hang Seng index has erased about 15% of its gains from the peak in May, and the benchmark is struggling near a three-month low as foreign investors lighten their holdings and domestic investors stay on the sidelines.
In addition, China's policymakers are struggling to devise market reform amid weak consumer confidence and prolonged residential market decline as the world's second-largest economy labors under record-high government debt.
Across wider Asia, market indexes in Mumbai advanced 0.7%, in Tokyo rebounded 9.6%, in Seoul gained 4.5%, and in Sydney jumped 0.4%.
China Stock Movers
The Hang Seng index fell 0.2% to 16,668.21, and the CSI 300 index declined 0.5% to 3,327.05.
Property developers were in focus ahead of the release of their quarterly results.
China's top 100 residential real estate developers reported home sales of 1.85 trillion yuan, a 40% decline in sales in the first half, according to China Real Estate Information Corp.
But the supply of new homes is still rising at a pace faster than the rate in 2016, indicating that the industry may take more than a decade to rebound from the current slump.
China Vanke increased 1.2% to HK $4.08, China Resources Land gained 1.1% to HK $22.70, Longfor Group was unchanged at HK $9.07, and China Overseas Land & Investment inched higher 0.3% to HK $12.56.
Alibaba Group jumped 2% to HK $75.65, Meituan Holding declined 0.4% to $106.30, Baidu decreased 1.4% to HK $79.90, and Tencent Holdings dropped 1.6% to HK $350.80.
U.S. Movers: Caterpillar, Palantir Technologies, Yum China, Uber
Scott Peters
06 Aug, 2024
New York City
Caterpillar advanced 4.2% to $329.97, and the earth moving equipment maker reported better-than-expected quarterly results.
Palantir Technologies soared 11.5% to $26.79 after the data analytics company lifted its annual revenue outlook.
The company estimated annual revenue between $2.74 billion and $2.75 billion, higher than the previously estimated range between $2.68 billion and $2.69 billion.
Uber Technologies increased 7.7% to $62.99 after the ride-hailing service provider reported better-than-expected second quarter results.
Revenue increased 16% to $10.7 billion from $9.2 billion, net income attributable to shareholders soared 158% to $1.0 billion from $394 million, and earnings per share rose to 47 cents from 18 cents a year ago.
Uber delivery segment, which includes delivery of food from restaurants and stores, saw gross bookings increase 16% to $18.1 billion from $15.6 billion, and revenue rose 8% to $3.3 billion from $3.1 billion a year ago.
The company also said gross bookings are likely to increase in the current quarter from the previous quarter on solid demand for its services.
Yum China increased 12.8% to $33.58 after the Shanghai-based franchisee of Pizza Hut and Taco Bell fast food stores reported better-than-expected quarterly results.
Revenue in the second quarter increased to $2.68 billion and fell short of market expectations, and adjusted earnings per share rose to 55 cents and surpassed market expectations of at least 49 cents.
The company also said its chief financial officer is planning to step down.
Wall Street Attempts to Rebound from Monday's Big Sell-off
Barry Adams
06 Aug, 2024
New York City
Market indexes recouped losses of the previous session as market sentiment stabilized on Wall Street.
The S&P 500 index jumped 1% and the Nasdaq Composite advanced 0.7% as investors searched for bargains in mega-cap stocks.
Investors returned to buy more stocks in the hopes that the previous three-session sell-off was overdone and underlying economic fundamentals are solid, despite the recent moderation in labor market conditions.
The yield on 10-year Treasury notes rebounded above 3.8% after dropping to a one-year low of 3.67% in the previous session.
The U.S. international goods and services trade gap shrank in June, the Commerce Department reported Tuesday.
The trade gap shrank to $73.1 billion from the revised 20-month peak of a $75 billion deficit in the previous month.
Exports increased 1.5% from the previous month to $265.9 billion, and imports rose at a slower pace of 0.6% to $339 billion.
Exports advanced to the second-highest on record, driven by strong demand for aircraft, automotive vehicles, and petroleum energy products.
Trade deficit with China fell by $1.6 billion to $22.3 billion as more Chinese companies shipped goods from Vietnam, Mexico, and Malaysia to avoid punitive tariffs.
U.S. Indexes and Treasury Yields
The S&P 500 index gained 1.1% to 5,241.09, the Nasdaq Composite advanced 0.7% to 16,311.21, and the Russell 2000 index rose 1.2% to 2,063.71.
The yield on 2-year Treasury notes edged higher to 3.95%, 10-year Treasury notes increased to 3.83%, and 30-year Treasury bonds advanced to 4.12%.
WTI crude oil increased $0.51 to $73.52 a barrel, and natural gas prices edged up 2 cents to $1.96 a thermal unit.
Gold decreased by $7.92 to $2,396.86 an ounce, and silver declined by $0.04 to $27.20.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 102.52.
U.S. Stock Movers
Caterpillar advanced 4.2% to $329.97, and the earth moving equipment maker reported better-than-expected quarterly results.
Palantir Technologies soared 11.5% to $26.79 after the data analytics company lifted its annual revenue outlook.
The company estimated annual revenue between $2.74 billion and $2.75 billion, higher than the previously estimated range between $2.68 billion and $2.69 billion.
Uber Technologies increased 7.7% to $62.99 after the ride-hailing service provider reported better-than-expected second quarter results.
Revenue increased 16% to $10.7 billion from $9.2 billion, net income attributable to shareholders soared 158% to $1.0 billion from $394 million, and earnings per share rose to 47 cents from 18 cents a year ago.
Uber delivery segment, which includes delivery of food from restaurants and stores, saw gross bookings increase 16% to $18.1 billion from $15.6 billion, and revenue rose 8% to $3.3 billion from $3.1 billion a year ago.
The company also said gross bookings are likely to increase in the current quarter from the previous quarter on solid demand for its services.
Yum China increased 12.8% to $33.58 after the Shanghai-based franchisee of Pizza Hut and Taco Bell fast food stores reported better-than-expected quarterly results.
Revenue in the second quarter increased to $2.68 billion and fell short of market expectations, and adjusted earnings per share rose to 55 cents and surpassed market expectations of at least 49 cents.
The company also said its chief financial officer is planning to step down.
Europe Movers: Abrdn, Adecco Group, Domino's Pizza, Monte dei Paschi di Siena, SIG Gorup
Inga Muller
06 Aug, 2024
Frankfurt
European markets hovered near the flatline and traded near six-month lows amid a mix of rising tensions in the Middle East, less-than-inspiring corporate earnings growth, and U.S. economic slowdown worries.
The DAX index increased by 0.1% to 17,362.15; the CAC-40 index fell by 0.2% to 7,134.50; and the FTSE 100 index declined by 0.4% to 7,976.06.
European bond yields dropped to six-month lows as investors sought safety in government securities amid growing worries about the global economic slowdown and rising geopolitical tensions.
The yield on 10-year German bonds edged higher to 2.17%, French bonds inched higher to 2.95%, the UK gilts inched higher to 3.90%, and Italian bonds increased to 3.66%.
Abrdn jumped 2.2% to 165.76 pence after the UK-based asset management company reported better-than-expected first-half results.
Adecco Group increased 1.1% to CHF 28.12 after the Swiss staffing company's second-quarter results surpassed market expectations.
Monte dei Paschi di Siena soared 7.3% to €4.66 after the Italian bank raised its profit outlook.
SIG Group AG decreased 1.4% to CHF 17.09 after the Swiss construction material company reported a loss in the first half.
Domino's Pizza decreased 6.5% to 288.80 pence after the pizza delivery company estimated its annual profit to hover near the lower end of market expectations.
Systemwide sales in the first half increased 0.2% to £767.7 million from £766.4 million, total orders decreased 0.9% to 35.1 million from 35.4 million, and group revenue decreased 1.8% to £326.8 million from £332.9 million a year ago.
Statutory profit declined 35.2% to £59.4 million from £91.5 million, and basic earnings per share dropped 44% to 10.70 pence from 19.3 pence a year ago.
The pizza delivery company increased its interim dividend per share by 6% to 3.5 pence from 3.3 pence a year ago.
European Markets Hovered Near Flatline, Eurozone Retail Sales Declined In June
Bridgette Randall
06 Aug, 2024
London
European markets struggled to advance following losses in the previous session amid rising Middle East tensions, lukewarm corporate earnings, and mounting concerns about the U.S. economic slowdown.
Benchmark indexes in Paris, London, and Frankfurt traded around the flatline after investors reviewed eurozone retail sales and German factory orders.
Eurozone Retail Sales Fall In June
Retail sales in the eurozone decreased 0.3% on the month and on the year in June, Eurostat reported Tuesday.
Retail sales declined on a monthly basis for the fourth time in the last seven months, and food, drink, and tobacco sales declined 0.7%, compared to a 1% rise.
Non-food product sales decline slowed to 0.1%, following a 0.3% decrease in the previous month.
On the other hand, sales of auto fuel increased 0.5%, extending a 0.3% rise.
German Factory Orders Rebounded in June
German factory orders adjusted for season and calendar factors rebounded in June after falling in five previous months in a row, the Federal Statistics Office, or Destatis, reported Tuesday.
Orders for manufactured goods were less volatile on a quarterly basis and decreased 1.4% in the second quarter ending in June from the previous quarter.
Automotive orders increased 9.3%; orders for ships, trains, and aircraft soared 11.7%; however, orders for electronic and optical equipment declined 7.9% from the previous month.
Orders for capital goods increased by 9.2%, but intermediate goods fell by 1.5%, and consumer goods dropped 7.1%.
Domestic orders rose 9.1% and foreign orders inched up 0.4%, with orders from the eurozone declining 0.3% and outside the currency union rising 0.9%.
Europe Indexes and Yields
The DAX index increased by 0.1% to 17,362.15; the CAC-40 index fell by 0.2% to 7,134.50; and the FTSE 100 index declined by 0.4% to 7,976.06.
European bond yields dropped to six-month lows as investors sought safety in government securities amid growing worries about the global economic slowdown and rising geopolitical tensions.
The yield on 10-year German bonds edged higher to 2.17%, French bonds inched higher to 2.95%, the UK gilts inched higher to 3.90%, and Italian bonds increased to 3.66%.
The euro edged down to $1.09; the British pound inched lower to $1.269; and the U.S. dollar weakened to 85.40 Swiss cents.
Brent crude decreased $0.05 to $76.24 a barrel, and the Dutch TTF natural gas fell by €0.90 to €36.70 per MWh.
Europe Stock Movers
Abrdn jumped 2.2% to 165.76 pence after the UK-based asset management company reported better-than-expected first-half results.
Adecco Group increased 1.1% to CHF 28.12 after the Swiss staffing company's second-quarter results surpassed market expectations.
Monte dei Paschi di Siena soared 7.3% to €4.66 after the Italian bank raised its profit outlook.
SIG Group AG decreased 1.4% to CHF 17.09 after the Swiss construction material company reported a loss in the first half.
Domino's Pizza decreased 6.5% to 288.80 pence after the pizza delivery company estimated its annual profit to hover near the lower end of market expectations.
Volatile Japan Indexes Rebound 10% Following Historic Plunge In Monday's Trading
Akira Ito
06 Aug, 2024
Tokyo
After a day of tumultuous trading, benchmark indexes in Tokyo recouped losses in the previous session as market sentiment stabilized.
The Nikkei 225 and the Topix indexes jumped around 10% as investors searched for bargains after three-day losses totaled nearly 20%.
In fact, the surge in Tuesday's trading was the largest-ever increase in points in the Nikkei 225's history, surpassing its previous increase of 2,676.55 points in October 1990.
The Nikkei 225 stock plunged more than 12% in Monday's trading as currency traders unwound the so-called "carry trade."
Carry trade had dominated currency market speculation for more than a decade, where investors borrowed money in the Japanese yen and invested in U.S. or European assets that yielded a higher annual return.
However, that currency arbitrage became far more risky after the Bank of Japan unexpectedly increased its policy rate for the second time in a row since March and signaled additional rate hikes.
Benchmark indexes accumulated nearly 20% of losses over the three days to Monday, amid rising market anxieties after currency traders unwound the carry trade, investors walked away from frothy valuations of the artificial intelligence-linked stocks, and the strong rebound in the yen dented the earnings growth outlook of exporting companies.
On Tuesday, the yen weakened to 145.34 from 141.43 against the U.S. dollar in Monday's trading.
On the economic front, average cash earnings increased 4.5% in June, accelerating from an upwardly revised 2% in May, the Ministry of Health, Labor, and Welfare reported Tuesday.
Japan's nominal wage increase outpaced the core inflation rate of 2.6%, leading to the first gain in real wages in 27 months.
The average of household spending in Japan was up a seasonally adjusted 0.1% on month but fell 1.4% in real terms on the year in June, the Ministry of Internal Affairs and Communications said on Tuesday.
Household spending in June was 280,888 yen and the real average of monthly income per household increased 3.1% from a year ago to 957,457 yen.
Japan Stock Movers
The Nikkei 225 stock average soared 10.2% to 34,675.46, and the Topix index advanced 9.3% to 2,434.21.
Widely followed advanced chipmaking equipment makers rebounded, and Tokyo Electron, Advantest, and Screen Holdings jumped between 10% and 15%.
Leading banks also participated in the market's rebound.
Mitsubishi UFJ gained 5.8% to ¥1,318.0, Sumitomo Mitsui Financial declined 2% to ¥8,000.0, and Mizuho Financial Group jumped 5.6% to ¥2,596.50.
Honda Motor, Toyota Motor, and Nissan Motor gained between 10% and 12%.
Kikkoman soared 21% to ¥1,744.0 after the food products maker reported a surge in net income in the June quarter.
Revenue increased 12% to 178.22 billion yen, and net income soared 70% to 18.1 billion yen.
The company also reiterated its annual net income outlook of 57.60 billion yen and its net sales estimate of 685 billion yen.
Indexes In Shanghai and Hong Kong Fail to Stay Above Flatline
Li Chen
06 Aug, 2024
Hong Kong
Stocks in Hong Kong and Shanghai rebounded after market sentiment stabilized, and investors looked forward to the release of corporate results.
The Hang Seng and the CSI indexes rebounded in early trading after Japan's Nikkei 225 stock average recouped most of the historic losses in the previous session amid panic selling.
But market indexes turned lower after a weak domestic economic outlook and earnings growth uncertainty overshadowed market sentiment in Hong Kong and Shanghai.
Investors looked forward to the release of official consumer price inflation and producer price inflation data on Friday.
Economists are estimating consumer price inflation to rebound by 0.3% in July, but wholesale deflation will persist for the 22nd month in a row and show a decline of 0.9%.
The Hang Seng index has erased about 15% of its gains from the peak in May, and the benchmark is struggling near a three-month low as foreign investors lighten their holdings and domestic investors stay on the sidelines.
In addition, China's policymakers are struggling to devise market reform amid weak consumer confidence and prolonged residential market decline as the world's second-largest economy labors under record-high government debt.
Across wider Asia, market indexes in Mumbai advanced 0.7%, in Tokyo rebounded 9.6%, in Seoul gained 4.5%, and in Sydney jumped 0.4%.
China Stock Movers
The Hang Seng index fell 0.2% to 16,668.21, and the CSI 300 index declined 0.5% to 3,327.05.
Property developers were in focus ahead of the release of their quarterly results.
China's top 100 residential real estate developers reported home sales of 1.85 trillion yuan, a 40% decline in sales in the first half, according to China Real Estate Information Corp.
But the supply of new homes is still rising at a pace faster than the rate in 2016, indicating that the industry may take more than a decade to rebound from the current slump.
China Vanke increased 1.2% to HK $4.08, China Resources Land gained 1.1% to HK $22.70, Longfor Group was unchanged at HK $9.07, and China Overseas Land & Investment inched higher 0.3% to HK $12.56.
Alibaba Group jumped 2% to HK $75.65, Meituan Holding declined 0.4% to $106.30, Baidu decreased 1.4% to HK $79.90, and Tencent Holdings dropped 1.6% to HK $350.80.