Market Update
Europe Movers: 888 Holdings, Dechra Pharma, Hermes, YouGov, TomTom
Bridgette Randall
14 Apr, 2023
Frankfurt
Dechra Pharmaceuticals plc soared 34% to 3,732.0 after the veterinary products maker confirmed it is in talks with private equity group EQT for a possible offer of £4.63 billion.
Hermes International SCA increased 1.1% to €1,966.80 after the French luxury products maker said sales in the first quarter increased 22% to €3.38 billion.
Sales in Europe increased 22.9%, Asia jumped 20.9% and in the Americas 23.9%.
YouGov Plc increased 2.3% to 880 pence after the company appointed Steve Hatch as its next chief executive.
TomTom NV advanced 5.3% to €8.0 after the Dutch navigation firm returned to profit in the first quarter.
Group revenue in the first quarter increased 10% to €140.7 million from €128.4 million and net income swung to €3 million from a loss of €21.5 million and earnings per share to 2 cents from a loss of 17 cents a year ago.
888 Holdings Plc soared 17.9% to 72.89 pence after the online sports betting and gambling company reported a double-digit increase in annual revenue.
Group revenue in the fiscal year ending in March surged 74% to £1,238.8 million, and adjusted operating income increased 82% to £217.9 million, including the purchase of William Hill on July 1, 2022.
Proforma profit declined to 64 .2 million from 82.6 million and earnings per share fell to 15.1 pence from 22.2 pence a year ago, adjusting for the William Hill transaction.
European Markets In Longest Winning Streak In Four Months Hoping Monetary Pause
Bridgette Randall
14 Apr, 2023
Frankfurt
Benchmark indexes in Europe extended gains after inflation indexes in France and Germany eased.
Germany's wholesale prices index fell sharply in March and French consumer price index eased following the sharp decline in energy prices.
Cooling inflation trends in the U.S. and Europe raised hopes that the central bankers are nearing an end to aggressive rate increase cycle and may pause after the next meeting in May.
Singapore held its monetary policy tightening and also lowered its estimate of economic growth in 2023.
Singapore joined other central banks in India, Australia, Canada and South Korea that already paused rate hikes.
Stocks in the Eurozone opened higher and extended gains ahead of the start of earnings season in the U.S. and Europe.
Investors are awaiting earnings results from U.S. banks and benchmark indexes are set for their longest weekly advance since early December.
German Wholesale Inflation Fell Sharply In March
The German wholesale price index declined for the sixth month in a row and slipped to the rate last seen in January 2021, the Federal Statistics Office or Destatis reported Friday.
On a monthly basis, the wholesale price index increased 0.2% after rising 0.1% in February.
Wholesale price index over the year increased 2.0% in March, slower than 8.9% in February, reflecting a sharp negative swing in energy and petrochemical related products.
Prices of materials and residues decreased 29%, petroleum products decreased 17.9% and metals and ores dropped 14.1%.
However, prices of food, beverages and tobacco increased 16.4%, reflecting meat and meat products price increase of 20.0%, fruits, vegetables and potatoes 20% and milk and dairy products, eggs, edible oils and fats 19.6% and building materials and elements 19.8%.
Wholesale price inflation has been on the decline after peaking at 23.6% in March 2022.
French Consumer Price Inflation Slowed in March
France's consumer price index inflation slowed to 5.7% annual rate in March, from 6.3% increase in February, the statistical office Insee reported Friday.
The final estimate of consumer inflation was revised higher from the flash estimate of 5.6%.
Indexes & Yields
The DAX index increased 0.4% to 15,788.0, the CAC-40 index rose 0.3% to 7,500.77 and the FTSE 100 index advanced 0.3% to 7,868.80.
The yield on 10-year German Bunds increased to 2.36%, French bonds to 2.87%, the UK gilts to 3.56% and Italian bonds to 4.21%.
The euro inched higher to $1.106, the British pound to $1.251 and the Swiss franc to 88.75 cents.
Brent crude oil increased 10 cents to $86.19 a barrel and the Dutch TTF natural gas eased 60 cents to 41.49 per MWh.
Europe Stock Movers
Dechra Pharmaceuticals plc soared 34% to 3,732.0 after the veterinary products maker confirmed it is in talks with private equity group EQT for a possible offer of £4.63 billion.
Hermes International SCA increased 1.1% to €1,966.80 after the French luxury products maker said sales in the first quarter increased 22% to €3.38 billion.
Sales in Europe increased 22.9%, Asia jumped 20.9% and in the Americas 23.9%.
YouGov Plc increased 2.3% to 880 pence after the company appointed Steve Hatch as its next chief executive.
TomTom NV advanced 5.3% to €8.0 after the Dutch navigation firm returned to profit in the first quarter.
888 Holdings Plc soared 17.9% to 72.89 pence after the online sports betting and gambling company reported a double-digit increase in annual revenue.
Group revenue in the fiscal year ending in March surged 74% to £1,238.8 million, and adjusted operating income increased 82% to £217.9 million, including the purchase of William Hill on July 1, 2022.
Proforma profit declined to 64 .2 million from 82.6 million and earnings per share fell to 15.1 pence from 22.2 pence a year ago, adjusting for the William Hill transaction.
Asian Markets Track New York Gains, Singapore Holds Rates and Lowers Growth Estimate
Arjun Pandit
14 Apr, 2023
Mumbai
Asian markets traded higher following overnight gains in the U.S. after inflation and rate-hike worries eased.
On Thursday wholesale price index and on Wednesday consumer price index showed waning inflation pressures, reflecting volatile but falling energy prices.
Wholesale price inflation index unexpectedly fell in March and consumer price index declined for the ninth month in a row.
Asian markets track Wall Street swings as the region's export driven economies rely on the market developments in the world's largest economy.
Investors are hoping that the two inflation reports this week may convince the Federal Reserve to pause future rate hikes after the next meeting in early May.
Singapore Left Currency Band Unrevised
The Monetary Authority of Singapore left its key lending rate unrevised after five interest rate hikes in a row since October 2021.
MAS maintains an indirect control on its interest rate by widening or tightening the currency band, known as Singapore dollar nominal effective exchange rate (S$Neer).
MAS said it will retain its current rate of currency appreciation, which will help the nation pay for pricier imports but also keeping the current exchange rate in place will not impact its ability to export.
After the MAS policy announcement, the Singapore dollar declined as much as 0.5% but managed to recover to $1.325.
Singapore's economy expanded only 0.1% in the first quarter on an annual basis after rising at 2.1% in the final quarter of 2022, the Ministry of Trade and Industry said Friday.
The ministry also lowered its estimate of annual economic growth in 2023 by 0.5 percentage point to 2.5%, from 3.6% in the previous year.
The MAS also left its 2023 estimate of core inflation, which excludes housing and private transportation, between 3.5% and 4.5% and overall inflation between 5.5% and 6.5%.
Indexes & Yields
Stocks in Tokyo advanced following the gains in overnight trading in New York but markets in Shanghai and Hong Kong were muted.
The Nikkei index increased 1.1% to 28,462.21, the Hang Seng Index added 0.2% to 20,391.29 and the SSE Composite index advanced 0.5% to 3,334.17.
Financial markets in India were closed for Ambedkar Jayanti.
Asia Stock Movers
Stocks in Hong Kong lacked direction but funds controlled by mainland China added exposure to large tech companies.
BYD, Geely Auto, HSBC and Alibaba Group added between 0.5% and 1.5% but Tencent Holdings fell 0.2%, JD.com declined 1.5% and Baidu fell 4.1%.
Mainland China controlled funds increased their exposure to Hong Kong listed stocks for the tenth week in a row, adding $10 billion of stocks according to the data available from Stock Connect.
Fast Retailing Company Limited soared 8.5% to ¥32,840.00 after the parent of Uniqlo reported operating profit in the first-half to February jumped to ¥220 billion from ¥189 billion a year ago.
The retailer also lifted its full-year profit estimate to ¥360 billion from ¥350 billion forecast in January.
Infosys Limited declined 8.2% to $15.69 in New York trading after the India-based global tech services provider reported weaker-than-expected quarterly results.
Revenue in the March quarter increased 6.4% to $4.6 billion and net income declined to $744 million from $752 million and diluted earnings per share held at 18 cents.
For the fiscal year 2023 ending in March, revenue increased 11.7% to $18.2 billion and net income was stable at $2.9 billion and diluted earnings per share was 71 cents compared to 70 cents a year ago.
The company guided fiscal year 2024 revenue to rise between 4% and 7% in constant currency and operating margin between 20% and 22%.
Weaker Inflation Reports and Earnings Optimism Power Market Rally
Barry Adams
13 Apr, 2023
New York City
Rate optimism ruled on Wall Street after the second inflation report confirmed waning inflation pressures.
The wholesale inflation index cooled more than expected in March, a second inflation report confirming the slowing inflation trend.
The measure of wholesale prices eased in March largely because of a significant decline in volatile energy prices and higher base effect.
The second inflation report in as many days confirmed that the inflation path is downward but price increase is slowing but still faster than preferred by the Federal Reserve.
Moreover, real interest rates are still negative and not restrictive and labor market conditions are still tight, supporting the case for higher interest rates.
Despite the cooling of inflation, policymakers are likely to lift rates higher by 25 basis points in early May, because stubborn inflation pressures are well anchored in the economy.
Stocks also advanced on the hopes that JP Morgan Chase, Wells Fargo, Citigroup and Bank of America may report stronger-than-expected quarterly results.
Airlines scaled higher after Delta Air reported record advanced booking for summer travel.
Fastenal Co, the distributor of industrial fasteners to leading construction and manufacturing sites, reported stable costs and sustained demand from customers led to higher-than-expected first quarter earnings.
Fastenal's earnings may signal industrial and construction activities may be in better conditions than previously anticipated.
March Wholesale Price Index Eased
The producer price index in March fell 0.5% from the previous month, the U.S. Bureau of Labor Statistics reported Thursday. Core wholesale prices paid by companies decreased 0.1% on a monthly basis after rising 0.2% in February.
Wholesale prices rose 2.7% on an annual basis in March and core prices, excluding food and energy, increased 3.4%.
Lower cost of energy and higher base also impacted the overall inflation reading. Two-thirds of the decline can be attributable to 1.0% decrease in final demand for goods, namely gasoline or energy materials.
U.S. Indexes & Yields
The S&P 500 index increased 1.3% to 4,147.87 and the Nasdaq Composite index added 2.063% to 12,171.31.
The yield on 2-year Treasury notes decreased to 3.93%, 10-year Treasury notes declined to 3.39% and 30-year Treasury bonds to 3.63%.
Crude oil fell 89 cents to $82.36 a barrel and natural gas futures for immediate month delivery fell 6 cents to $2.01 a thermal unit.
U.S. Stock Movers
Delta Air Lines, Inc increased 0..2% to $33.87 after the company forecasted June quarter earnings per share between $2.0 and $2.25 and full-year earnings per share between $5.0 and $6.0 and free cash flow of $2.0 billion.
"With record advance bookings for the summer, we expect June quarter revenue to be 15% to 17% higher on capacity growth of 17% year over year," said Glen Hauenstein, Delta's president.
Delta said March quarter operating revenue rose 36% to $12.8 billion and net loss shrank 61% to $363 million from $940 million and diluted loss per share fell to 57 cents from $1.48 a year ago.
Delta's strong summer booking lifted United Airlines Holdings by 1.4% and American Airlines Group by 0.6%.
Infosys Ltd declined 8.2% to %15.69 after the India-based global tech services provider reported weaker-than-expected quarterly results.
Revenue in the March quarter increased 6.4% to $4.6 billion and net income declined to $744 million from $752 million and diluted earnings per share held at 18 cents.
For the fiscal year 2023, revenue increased 11.7% to $18.2 billion and net income was stable at $2.9 billion and diluted earnings per share was 71 cents compared to 70 cents a year ago.
The company guided fiscal year 2024 revenue to rise between 4% and 7% in constant currency and operating margin between 20% and 22%.
Record High French Index, German Index Extended 2023 Gain
European market indexes traded at one-month high as investors looked beyond the recent banking crisis and scaled new peaks in Germany and France.
The German benchmark index traded above 15,700 and extended this year's gain to 11.7% and the French index traded at a new high and extended 2023's gain to 13.3%.
Investors have been bidding up stocks after months of inflation and economic slowdown worries. The elevated inflation and economic slowdown are not preventing large corporations from reporting rising sales and profits.
LVMH, the largest luxury products maker in the world reported a surge in first quarter sales and the British grocery store Tesco forecasted flat profit in the new fiscal year.
German Inflation In March Weakened but Stayed Elevated
German inflation rate weakened in March but stayed elevated, the latest data from Destatis showed Thursday.
Consumer price index in March rose at a slower annual pace of 7.4%, after rising at 8.4% in February and January.
On a monthly basis, the inflation index rose 0.8%.
On a harmonized basis, the inflation index increased 7.8% from a year ago and 1.1% from the previous month.
"The inflation rate has weakened, but remains at a high level," says Ruth Brand, President of the Federal Statistical Office.
Food price increase accelerated to 22.3% in March, following 21.8% in February and 20.2% in January.
Inflation in March excluding energy prices was 7.8% and excluding food and energy prices was 5.8%.
UK Economy Stagnates After Strikes Dip Service Output
The UK economy stagnated in February and January's growth was upwardly revised to 0.4%, the Office for National Statistics reported Thursday.
Growth in January was revised up from the previous estimate of 0.3% increase.
GDP increased 0.1%% in the three months to February and ahead by 0.3% to the pre-coronavirus levels.
Industrial production declined 0.2% in February after falling 0.5% in January but services output fell 0.1% following strikes in education and public sector following the rise of 0.7% in January respectively.
On a yearly basis, GDP accelerated 0.5% in February after rising at 0.4% in January.
Europe Indexes & Yields
The DAX index increased 25.86 points to 15,729.46, the CAC-40 index added 1.1% to 7,480.83 and the FTSE 100 index gained 18.54 points to 7,843.38.
The yield on 10-year German Bunds held at 2.36%, French bonds at 2.88%, the UK gilts at 3.57% and Italian bonds at 4.22%.
The euro inched higher to $1.10, the British pound edged higher to $1.25 and the Swiss franc edged up to 89.08 cents.
Brent crude oil fell $1.06 to $86.28 a barrel and the Dutch TTF natural gas fell 38 cents to Є42.49 per MWh.
Europe Movers
Oxford Instruments Plc increased 3.9% to 2,540.0 pence after the maker of advanced technology products for industrial companies said sales are ahead of expectations in the current fiscal year.
LVMH Moet Hennessy Louis Vuitton SE increased 4.4% to €873.30 after the luxury products maker said first quarter sales increased 17% from a year ago partly driven by the surge in China demand and the rebound in international travel.
Imperial Brands Plc decreased 1.4% to 1,851.50 pence after the cigarette maker forecasted a decline in first-half revenue following its exit from Russia.
Tesco Plc increased 1.7% to 272.0 pence after the UK-based grocer reported a rise in annual sales. The company also forecasted flat profit in the new fiscal year.
Revenue in the fiscal year 2023 ending in February rose to £65.8 billion from £61.3 billion and after-tax net income declined to £744 million from £1.48 billion and diluted earnings per share fell to 10.08 pence from 19.64 pence a year ago.
"We expect to be able to deliver a broadly flat level of retail adjusted operating profit in 2023-24 and retail free cash flow within our target range of £1.4 billion to £1.8 billion," said the company in the earnings statement released Thursday.
Europe Movers: Imperial Brands, Lloyds Banking, LVMH, Oxford Instruments, Smurfit Kappa, Tesco
Bridgette Randall
13 Apr, 2023
Frankfurt
Oxford Instruments Plc increased 3.9% to 2,540.0 pence after the maker of advanced technology products for industrial companies said sales are ahead of expectations in the current fiscal year.
Lloyds Banking Group PLC decreased 3.1% to 48.31 pence and the company is scheduled to pay 1.6 pence dividend on May 22 to shareholders on record on April 12.
LVMH Moet Hennessy Louis Vuitton SE increased 4.4% to €873.30 after the luxury products maker said first quarter sales increased 17% from a year ago partly driven by the surge in China demand and the rebound in international travel.
Imperial Brands Plc decreased 1.4% to 1,851.50 pence after the cigarette maker forecasted a decline in first-half revenue following its exit from Russia.
Smurfit Kappa Group Plc decreased 2.3% or 68 pence to 2,952.0 pence and the company is scheduled to pay 107.6 euro cents dividend on May 12 to shareholders on record on the close of April 14.
Tesco Plc increased 1.7% to 272.0 pence after the UK-based grocer reported a rise in annual sales. The company also forecasted flat profit in the new fiscal year.
Revenue in the fiscal year 2023 ending in February rose to £65.8 billion from £61.3 billion and after-tax net income declined to £744 million from £1.48 billion and diluted earnings per share fell to 10.08 pence from 19.64 pence a year ago.
"We expect to be able to deliver a broadly flat level of retail adjusted operating profit in 2023-24 and retail free cash flow within our target range of £1.4 billion to £1.8 billion," said the company in the earnings statement released Thursday.
Movers: Delta Air Lines, Fastenal, Infosys, Progressive Corp
Scott Peters
13 Apr, 2023
New York City
Delta Air Lines, Inc increased 0..2% to $33.87 after the company forecasted June quarter earnings per share between $2.0 and $2.25 and full-year earnings per share between $5.0 and $6.0 and free cash flow of $2.0 billion.
"With record advance bookings for the summer, we expect June quarter revenue to be 15% to 17% higher on capacity growth of 17% year over year," said Glen Hauenstein, Delta's president.
Delta said March quarter operating revenue rose 36% to $12.8 billion and net loss shrank 61% to $363 million from $940 million and diluted loss per share fell to 57 cents from $1.48 a year ago.
Delta's strong summer booking lifted United Airlines Holdings by 1.4% and American Airlines Group by 0.6%.
Fastenal Co fell 2.2% $51.44 after the company reported first quarter results ahead of market expectations.
First quarter ales increased 9.1% to $1.86 billion and net income rose 9.5% to $295.1 million from $269.6 million and diluted earnings per share rose to 52 cents from 47 cents a year ago.
Price increases impacted net sales between 290 and 320 basis points in the quarter, in addition to between 580 and 610 basis points increase in the quarter a year ago.
Infosys Ltd declined 8.2% to $15.69 after the India-based global tech services provider reported weaker-than-expected quarterly results.
Revenue in the March quarter increased 6.4% to $4.6 billion and net income declined to $744 million from $752 million and diluted earnings per share held at 18 cents.
For the fiscal year 2023, revenue increased 11.7% to $18.2 billion and net income was stable at $2.9 billion and diluted earnings per share was 71 cents compared to 70 cents a year ago.
The company guided fiscal year 2024 revenue to rise between 4% and 7% in constant currency and operating margin between 20% and 22%.
Progressive Corporation decreased 6.7% to $138.20 after the company reported March quarter results.
Net premium written in the quarter rose 22% to $16.1 billion and net income soared 43% to $447.9 million from $313.9 million and diluted earnings per share increased to 75 cents from 52 cents a year ago.
Total revenues increased 21% to $14.3 billion from $11.8 billion a year ago.
The personal and commercial auto insurer said net premium earned in March increased 17% to $4.3 billion but swung to a loss of $151.8 million from a profit of $226.5 million and diluted earnings per share of ($0.26) from $0.38 a year ago.
Progressive said it reduced the impact from Hurricane Ian on its vehicle insurance business by $40 million or about 0.9% on a companywide basis.
The March results took a dive after the insurance company said unfavorable prior year accident years development of $146.5 million, about 55% related to its personal auto products and a majority form the recently passed legislation in Florida.
March PPI Unexpectedly Declined
Brian Turner
13 Apr, 2023
New York City
The producer price index in March fell 0.5% from the previous month, the U.S. Bureau of Labor Statistics reported Thursday.
Core wholesale prices paid by companies decreased 0.1% on a monthly basis after rising 0.2% in February.
Wholesale prices rose 2.7% on an annual basis in March and core prices, excluding food and energy, increased 3.4%.
Annual increase in March, was the smallest since January 2021, followed by 4.9% in February.
Lower cost of energy and higher base also impacted the overall inflation reading. Two-thirds of the decline can be attributable to 1.0% decrease in final demand for goods, namely gasoline or energy materials.
Eighty percent of the March decline in the index for final demand goods can be traced to an 11.7% decline in prices for gasoline.
The prices of diesel fuel, residential natural gas, jet fuel, electric power, and fresh and dry vegetables also fell.
Stocks Rebound After Wholesale Inflation Cooled In March
Barry Adams
13 Apr, 2023
New York City
Stocks looked up on Wall Street after wholesale inflation cooled more than expected in March, a second inflation report confirming the slowing inflation trend.
The measure of wholesale prices eased in March largely because of a significant decline in energy prices and higher base effect.
The second inflation report in as many days confirmed that the inflation path is downward but prices are still rising and at faster rates than preferred by the Federal Reserve.
Moreover, real interest rates are still negative and not restrictive and labor market conditions are still tight, supporting the case for higher interest rates.
Despite the cooling of inflation, policymakers are likely to lift rates higher by 25 basis points in early May, because stubborn inflation pressures are well anchored in the economy.
March Wholesale Price Index Eased
The producer price index in March fell 0.5% from the previous month, the U.S. Bureau of Labor Statistics reported Thursday. Core wholesale prices paid by companies decreased 0.1% on a monthly basis after rising 0.2% in February.
Wholesale prices rose 2.7% on an annual basis in March and core prices, excluding food and energy, increased 3.4%.
Lower cost of energy and higher base also impacted the overall inflation reading. Two-thirds of the decline can be attributable to 1.0% decrease in final demand for goods, namely gasoline or energy materials.
U.S. Indexes & Yields
The S&P 500 index increased 0.3% to 4,103.01 and the Nasdaq Composite index added 0.8% to 12,030.04.
The yield on 2-year Treasury notes decreased to 3.93%, 10-year Treasury notes declined to 3.39% and 30-year Treasury bonds to 3.63%.
Crude oil edged lower 2 cents to $83.24 a barrel and natural gas futures for immediate month delivery fell 2 cents to $2.06 a thermal unit.
U.S. Stock Movers
Delta Air Lines, Inc increased 0..2% to $33.87 after the company forecasted June quarter earnings per share between $2.0 and $2.25 and full-year earnings per share between $5.0 and $6.0 and free cash flow of $2.0 billion.
"With record advance bookings for the summer, we expect June quarter revenue to be 15% to 17% higher on capacity growth of 17% year over year," said Glen Hauenstein, Delta's president.
Delta said March quarter operating revenue rose 36% to $12.8 billion and net loss shrank 61% to $363 million from $940 million and diluted loss per share fell to 57 cents from $1.48 a year ago.
Delta's strong summer booking lifted United Airlines Holdings by 1.4% and American Airlines Group by 0.6%.
Infosys Ltd declined 8.2% to %15.69 after the India-based global tech services provider reported weaker-than-expected quarterly results.
Revenue in the March quarter increased 6.4% to $4.6 billion and net income declined to $744 million from $752 million and diluted earnings per share held at 18 cents.
For the fiscal year 2023, revenue increased 11.7% to $18.2 billion and net income was stable at $2.9 billion and diluted earnings per share was 71 cents compared to 70 cents a year ago.
The company guided fiscal year 2024 revenue to rise between 4% and 7% in constant currency and operating margin between 20% and 22%.
French Index Hits New High, German Index Extends 2023 Gain
Bridgette Randall
13 Apr, 2023
Frankfurt
European market indexes traded at one-month high as investors looked beyond the recent banking crisis and scaled new peaks in Germany and France.
The German benchmark index traded above 15,700 and extended this year's gain to 11.7% and the French index traded at a new high and extended 2023's gain to 13.3%.
Investors have been bidding up stocks after months of inflation and economic slowdown worries. The elevated inflation and economic slowdown are not preventing large corporations from reporting rising sales and profits.
LVMH, the largest luxury products maker in the world reported a surge in first quarter sales and the British grocery store Tesco forecasted flat profit in the new fiscal year.
German Inflation In March Weakened but Stayed Elevated
German inflation rate weakened in March but stayed elevated, the latest data from Destatis showed Thursday.
Consumer price index in March rose at a slower annual pace of 7.4%, after rising at 8.4% in February and January.
On a monthly basis, the inflation index rose 0.8%.
On a harmonized basis, the inflation index increased 7.8% from a year ago and 1.1% from the previous month.
"The inflation rate has weakened, but remains at a high level," says Ruth Brand, President of the Federal Statistical Office.
Food price increase accelerated to 22.3% in March, following 21.8% in February and 20.2% in January.
Inflation in March excluding energy prices was 7.8% and excluding food and energy prices was 5.8%.
UK Economy Stagnates After Strikes Dip Service Output
The UK economy stagnated in February and January's growth was upwardly revised to 0.4%, the Office for National Statistics reported Thursday.
Growth in January was revised up from the previous estimate of 0.3% increase.
GDP increased 0.1%% in the three months to February and ahead by 0.3% to the pre-coronavirus levels.
Industrial production declined 0.2% in February after falling 0.5% in January but services output fell 0.1% following strikes in education and public sector following the rise of 0.7% in January respectively.
On a yearly basis, GDP accelerated 0.5% in February after rising at 0.4% in January.
Europe Indexes & Yields
The DAX index decreased 12.69 points to 15,690.25, the CAC-40 index added 0.9% to 7,465.47 and the FTSE 100 index gained 0.91 points to 7,825.75.
The yield on 10-year German Bunds held at 2.36%, French bonds at 2.88%, the UK gilts at 3.57% and Italian bonds at 4.22%.
The euro inched higher to $1.10, the British pound edged higher to $1.25 and the Swiss franc edged up to 89.08 cents.
Brent crude oil fell 64 cents to $86.68 a barrel and the Dutch TTF natural gas fell 88 cents to Є42.0 per MWh.
Europe Movers
Oxford Instruments Plc increased 3.9% to 2,540.0 pence after the maker of advanced technology products for industrial companies said sales are ahead of expectations in the current fiscal year.
LVMH Moet Hennessy Louis Vuitton SE increased 4.4% to €873.30 after the luxury products maker said first quarter sales increased 17% from a year ago partly driven by the surge in China demand and the rebound in international travel.
Imperial Brands Plc decreased 1.4% to 1,851.50 pence after the cigarette maker forecasted a decline in first-half revenue following its exit from Russia.
Tesco Plc increased 1.7% to 272.0 pence after the UK-based grocer reported a rise in annual sales. The company also forecasted flat profit in the new fiscal year.
Revenue in the fiscal year 2023 ending in February rose to £65.8 billion from £61.3 billion and after-tax net income declined to £744 million from £1.48 billion and diluted earnings per share fell to 10.08 pence from 19.64 pence a year ago.
"We expect to be able to deliver a broadly flat level of retail adjusted operating profit in 2023-24 and retail free cash flow within our target range of £1.4 billion to £1.8 billion," said the company in the earnings statement released Thursday.
Europe Movers: LVMH, Mercedes Benz, Petrofac, Resource Stocks, Volvo
Bridgette Randall
12 Apr, 2023
Frankfurt
Resource companies led the gainers for the second day this week after the dollar eased and commodities prices advanced.
Antofagasta and Glencore advanced between 1% and 2% and BP Plc and Shell Plc advanced between 0.5% and 0.7%.
Petrofac Limited declined 13% to 63.05 pence after the oilfield services provider estimated full-year 2022 operating loss between $150 million and $170 million driven by an operating loss between $240 million and $260 million in its engineering and construction division.
Volvo AB Class B share increased 7.4% to kr208.65 after the vehicle and industrial equipment company reported record first-half profit on higher revenue and margins.
LVMH Moet Hennessy Louis Vuitton SE decreased 0.4% to €836.60 after the luxury products maker said revenue in the first quarter increased 17% to €21 billion.
Fashion and leather goods sales advanced 18% to €10.7 billion and the Selective Retailing group, which includes Sephora and DFS shops at airports, surged 30% to €3.9 billion.
"Europe and Japan, which enjoyed strong growth momentum, benefited from robust demand from local customers and international travelers; the United States, a market which continues to grow, had a steady performance. Asia experienced a significant rebound following the lifting of health restrictions," said the company in its quarterly statement released Wednesday.
Mercedes Benz AG increased 0.7% to €69.34 after the luxury automaker reported moderate increase in sales.
Mercedes Benz car sales increased 3% in the first quarter to 503,500 units driven by an 89% jump in battery electric vehicles to 51,600 units.
Battery electric vehicle sales reached 10% of overall sales compared to 6% in the year ago quarter.
Resource and Luxury Stocks Lead European Markets Higher
Bridgette Randall
13 Apr, 2023
Frankfurt
European markets advanced after the U.S. dollar inched lower and commodities prices traded up.
The U.S. dollar extended its 5-week slump and crude oil and base metal prices edged higher.
The euro, the British pound and the Swiss franc continued to gain.
Inflation in the eurozone is at a risk of getting entrenched at a higher rate than 2% preferred by the central banks and the core inflation trajectory and the future rate path direction in the next few months will determine the outcome in the long term, Bank of France Governor Francois Villeroy de Galha said Tuesday.
Investors focused on how policymakers tackle the balancing of economic growth and curb inflation and maintain stability of the financial system.
The IMF lowered its annual global growth forecast to 2.8% from the previous estimate of 2.9% and inflation to 7.0% from 8.7% estimated in January.
The economic slowdown is largely concentrated in the advanced economies and the Euro Area growth was revised to 0.8% from 1.4% and in the UK to -0.3% from 1.0% from the previous estimate.
The inflation is still stubbornly high and the core rate of inflation is accelerating, said the IMF Director of Research Pierre-Olivier Gourinchas.
“We expect year-end to year-end core inflation will slow to 5.1% this year, a sizable upward revision of 0.6 percentage points from our January update, and well above target”, said Director of Research Gourinchas.
Europe Indexes & Yields
The DAX index increased 0.3% or 48.4 points to 15,703.60, the CAC-40 index advanced 6.6 points to 7,396.94 and the FTSE 100 index jumped 0.5% or 39.12 points to 7,396.94.
The yield on 10-year German Bunds rose to 2.37%, French bonds inched up to 2.88%, the UK gilts to 3.57% and Italian bonds to 4.21%.
The euro inched higher to $1.09, the British pound to $1.24 and the Swiss franc to 89.55 cents.
Brent crude oil increased $1.81 to $87.41 a barrel and the Dutch TTF natural gas fell 79 cents to Є42.90 per MWh.
Europe Stock Movers
Resource companies led the gainers for the second day this week after the dollar eased and commodities prices advanced.
Antofagasta and Glencore advanced between 1% and 2% and BP Plc and Shell Plc advanced between 0.5% and 0.7%.
Petrofac Limited declined 13% to 63.05 pence after the oilfield services provider estimated full-year 2022 operating loss between $150 million and $170 million driven by an operating loss between $240 million and $260 million in its engineering and construction division.
Volvo AB Class B share increased 7.4% to kr208.65 after the vehicle and industrial equipment company reported record first-half profit on higher revenue and margins.
LVMH Moet Hennessy Louis Vuitton SE decreased 0.4% to €836.60 after the luxury products maker said revenue in the first quarter increased 17% to €21 billion.
Fashion and leather goods sales advanced 18% to €10.7 billion and the Selective Retailing group, which includes Sephora and DFS shops at airports, surged 30% to €3.9 billion.
"Europe and Japan, which enjoyed strong growth momentum, benefited from robust demand from local customers and international travelers; the United States, a market which continues to grow, had a steady performance. Asia experienced a significant rebound following the lifting of health restrictions," said the company in its quarterly statement released Wednesday.
Mercedes Benz AG increased 0.7% to €69.34 after the luxury automaker reported moderate increase in sales.
Mercedes Benz car sales increased 3% in the first quarter to 503,500 units driven by an 89% jump in battery electric vehicles to 51,600 units.
Battery electric vehicle sales reached 10% of overall sales compared to 6% in the year ago quarter.
Triton International Agreed to $13 Billion Deal from Brookfield Infrastructure
Scott Peters
12 Apr, 2023
New York City
Triton International Limited increased 32% to $83.05 after the company agreed to be acquired by a subsidiary of Brookfield Infrastructure.
The container leasing company agreed to a total consideration of $85.0 per common share, consisting of $68.50 in cash and $16.50 in BIPC class A share.
The deal values the company at $4.7 billion equity and for an enterprise valuation, which includes its total debt, of $13.3 billion.
The Brookfield offer provides a 35% premium to yesterday's closing price of $63.01.
Triton International revenue in 2022 increased 9.5% to $1.67 billion and adjusted net income attributable to common shareholders increased 14.4% to $702.8 million and diluted earnings per share rose 23.6% to $11.32.
In November 2015, Triton Container International Limited agreed to merge with TAL International Group in and create Triton International with 55% stake held by Triton and remaining controlled by TAL shareholders.
At the time of the merger, the two companies had a container portfolio of 2.4 million twenty-foot equivalent units each, which has since increased to a total of 7 million TEU.
Brookfield Infrastructure is a listed subsidiary of Brookfield Corporation, an alternative investment management company with $800 billion in assets under management.
The transaction is expected to close in the fourth quarter of 2023 and has been approved by the Board of Directors of Triton.
The transaction has also received all necessary approvals from Brookfield Infrastructure, is not subject to a financing condition, and does not require approval from Brookfield Infrastructure shareholders.