Market Update
Resilient Consumer Spending Drove Euro Area Economic Growth In 2022
Bridgette Randall
31 Jan, 2023
Frankfurt
European markets traded lower ahead of key rate decisions from the European Central Bank and the Bank of England.
Despite the constant drumbeat of gloom and doom, the economies in the Euro Area expanded avoided a recession on the back of resilient consumer spending.
Germany's retail sales declined 6.4% in December from the year ago, the Federal Statistics Office reported Tuesday.
Euro Area Economy Expanded In 2022
The Euro Area economy unexpectedly expanded at 0.1% on the quarter in the fourth quarter and following 0.3% in the third quarter, Eurostat, the statistical office of the European Union reported Tuesday.
In 2022, after adjusting for seasonality factors and calendar days, the Euro Area economy expanded at 3.5% and the European Union economy rose 3.6%, according to the preliminary report released by Eurostat.
Ireland' economy surged 3.5% in the final quarter from the previous three months and jumped 15.7% from a year ago.
Ireland has been a leading beneficiary of U.K.'s leaving from the European Union after many U.S. corporations shifted operations or financial assets to the nation.
Economies of Germany contracted 0.2% and Italy shrank 0.1% but those of Spain expanded 0.2% and France increased 0.1% respectively, according to national statistics.
IMF Lifts Global Growth Estimate
The IMF revised global growth slightly on the resilient consumer demand in the U.S. and Europe despite the elevated energy prices and four-decade high inflation.
The U.S. economy is expected to grow at 1.3%, China at 5.0% and India at 6.0%.
Of the 22 largest economies in the world, only the UK is expected to shrink in 2023, according to the data released by the IMF.
The UK's economy is expected to shrink 0.6% in 2023.
Italy GDP Contracts In Fourth Quarter
Italy's GDP shrank in the final quarter of 2022 after expanding for seven quarters in a row, ISTAT or the National Statistics Office reported Tuesday.
Elevated inflation dragged real consumer spending in the final quarter after consumers retrenched and focused on basics.
On a quarterly basis, gross domestic product declined 0.3% in the December quarter after rising 0.5% in the September quarter.
On a yearly basis, GDP growth slowed to 1.7% in the fourth quarter from 2.6% in the previous quarter.
In 2022, Italy's GDP after adjusting for seasonal factors and calendar expanded 3.9%, slower than 6.6% in 2021.
European Market Indexes Traded Down
The DAX index fell 0.4% to 15,069.20, the CAC-40 index declined 0.3% to 7,061.98 and the FTSE 100 index dropped 0.5% to 7,748.14.
European Bond Yields Advanced
The yield on 10-year German Bunds hovered near 2.27%, French bonds traded near 2.74%, the UK Gilts traded at 3.30% and Italian bonds bounced around 425%.
Europe Stock Movers
UBS Group AG declined 2% to 19.42 Swiss francs after the financial services provider said revenue declined but earnings rose in the fourth quarter.
UBS said fourth quarter revenue declined 9% to $8.0 billion from $8.2 billion a year ago.
Net income in the quarter rose to $1.65 billion from $1.34 billion and diluted earnings per share rose to 50 cents from 38 cents a year ago.
In 2022, the Swiss bank repurchased $5.6 billion of its stock and the company said it plans to buy back $5 billion of its shares in 2023.
The company also proposed a dividend of 55 cents to shareholders on record April 13 and payable on April 14, subject to the approval from the company's board at the shareholder meeting on April 5.
UniCredit SpA soared 11.5% to €17.75 after the Italian bank reported record fourth quarter profit and the bank said it plans to return €5.3 billion to investors.
Revenue in the fourth quarter increased 25.4% to €5.4 billion and net income rose to €1.04 billion from €338 million a year ago.
Assets under management declined 11.7% from a year ago and flat from the previous quarter to €193.5 billion.
Gross bad loans declined 20.3% from the previous quarter and dropped 46.6% from the previous year to €2.4 billion.
Ricardo Plc fell 2% to 534.20 pence after the company reiterated its fiscal year outlook.
Leoni AG declined 15% to €5.97 after the cable and harness maker said chief executive Aldo Kemper will depart the company as of March 31.
The company is undergoing restructuring and struggling with a heavy debt load of €1.7 billion and equity of €178 million.
Tele2 AB declined 3.9% to kr90.20 after the telecom service provider headquartered in Stockholm said 2023 revenue is estimated to grow in "low single-digit" in end user service and operating earnings adjusted for leased assets.
End-user service revenue increased 3% from a year ago to SEK 5.1 billion due to strong performance in the Baltics and business-to-business customers in Sweden.
Net profit increased to SEK 1.25 billion from SEK 953 million and earnings per share rose to SEK 1.82 from SEK 1.39 a year ago.
World Markets In Holding Pattern, IMF Lifted Global Growth Outlook
Barry Adams
31 Jan, 2023
New York City
U.S. stocks lacked direction as financial markets await rate decisions tomorrow and review a fresh batch of earnings.
The U.S. Federal Reserve is set to announce its rate decision at the end of a two-day meeting tomorrow.
Markets are factoring in a 25 basis points increase to the benchmark rate range and investors are looking to get a better understanding of the inner workings of the economy.
Investors reacted positively after McDonald's and GM reported better-than-expected results but Caterpillar and UPS traded lower.
U.S. Compensation Costs Growth Slowed
The U.S. compensation costs for civilian workers increased 1% in the final three months of 2022 from the previous quarter, the third slowdown in a row, the Bureau of Labor Statistics said Tuesday.
Wages and salaries, which is about 70% of employment costs in the period rose 1% after rising at 1.3% in the previous quarter.
Benefits cost increased 0.8% in the final quarter after rising 1.0% in the previous quarter,
On an annual basis, total compensation costs increased 5.1% in the fourth quarter, slower than 5.0% in the third quarter and declined 1.3% after adjusting for inflation.
IMF Lifts Global Growth Estimate
The IMF revised global growth slightly on the resilient consumer demand in the U.S. and Europe despite the elevated energy prices and four-decade high inflation.
The U.S. economy is expected to grow at 1.3%, China at 5.0% and India at 6.0%.
Of the 22 largest economies in the world, only the UK's economy is expected to shrink by 0.6% in 2023, according to the data released by the IMF.
U.S. Indexes Trend Lower
The S&P 500 index increased 0.3% to 4,043.0 and the Nasdaq Composite index advanced 0.3% to 12,002,03.
Crude oil prices hovered near a three-week low on the worries that despite the U.S. and European Union sanctions Russia energy supplies are growing.
Moreover, the global demand recovery is expected to be slower than previously anticipated as business activities in China struggle to recover after the ending of zero-covid restrictions.
Crude oil declined to 46 cents to $77.45 a barrel and natural gas declined 3 cents to $2.64 a thermal unit.
The yield on 2-year Treasury notes declined to 4.21%, 10-year Treasury notes fell to 3.51% and 30-year Treasury bonds eased to 3.64%.
U.S. Stock Movers
Caterpillar Inc declined 3.3% to $253.01 after the company reported a rise in sales and earnings but missed analysts' expectations.
Caterpillar said fourth quarter revenue increased 20% to $16.6 billion from $13.8 billion on higher sales volume and price increase.
Net income in the quarter declined to $1.45 billion from $2.12 billion and diluted earnings per share fell to $2.79 from $3.91 a year ago.
Construction machinery sales increased 34% in North America and soared 39% in Latin America.
General Motors jumped 1.7% to $38.06 after the vehicle maker reported better-than-expected quarterly earnings.
Fourth quarter revenue increased 28.4% to $43.1 billion after the company sold more vehicles in the U.S.
Net income in the quarter increased 14.8% to $1.99 billion from $1.74 billion and diluted earnings per share rose to $1.39 from $1.16 a year ago.
European Markets Cautious Ahead of Rate Decisions
European markets traded lower ahead of key rate decisions from the European Central Bank and the Bank of England.
The Euro Area economy unexpectedly expanded at 0.1% on the quarter in the fourth quarter and following 0.3% in the third quarter, Eurostat, the statistical office of the European Union reported Tuesday.
In 2022, after adjusting for seasonality factors and calendar days, the Euro Area economy expanded at 3.5% and the European Union economy rose 3.6%, according to the preliminary report released by Eurostat.
The DAX index fell 0.4% to 15,069.20, the CAC-40 index declined 0.3% to 7,061.98 and the FTSE 100 index dropped 0.5% to 7,748.14.
The yield on 10-year German Bunds hovered near 2.27%, French bonds traded near 2.74%, the UK Gilts traded at 3.30% and Italian bonds bounced around 425%.
Asian Markets Closed Down
Asian markets traded lower following weak overnight trading in New York. Caution prevailed ahead of rate decisions from the US Federal Reserve and central banks in Europe and UK.
The Nikkei index declined 0.4% to 27,327.11 and the yen weakened to 130.02 against the U.S. dollar.
The Shanghai composite index fell 0.4% to 3,255.67 and the Hang Seng index declined 1.03% to 21,842.33.
Stocks lacked direction in Mumbai trading ahead of the release of the Union Budget tomorrow.
India's real GDP is estimated to grow between 6% and 6.8% in the next fiscal year ending in March 2024, the survey released in the Parliament by the central government Tuesday.
The Sensex index in Mumbai advanced 49.49 points to 59,549.90 and the Nifty index increased 13.2 points to 17,662.15.
The rupee edged lower to 81.41 against the U.S. dollar.
Movers: Caterpillar, General Motors, J&J, McDonald's, UBS, UPS, Whirlpool
Scott Peters
31 Jan, 2023
New York City
Caterpillar Inc declined 3.3% to $253.01 after the company reported a rise in sales and earnings but missed analysts' expectations.
Caterpillar said fourth quarter revenue increased 20% to $16.6 billion from $13.8 billion on higher sales volume and price increase.
Net income in the quarter declined to $1.45 billion from $2.12 billion and diluted earnings per share fell to $2.79 from $3.91 a year ago.
Construction machinery sales increased 34% in North America and soared 39% in Latin America.
General Motors jumped 1.7% to $38.06 after the vehicle maker reported better-than-expected quarterly earnings.
Fourth quarter revenue increased 28.4% to $43.1 billion after the company sold more vehicles in the U.S.
Net income in the quarter increased 14.8% to $1.99 billion from $1.74 billion and diluted earnings per share dropped to $1.39 from $1.10 a year ago.
Johnson & Johnson declined 4% to $162.0 after a U.S. District Court in Philadelphia rejected the company's bankruptcy move and said it must face claims related to its talcum powder.
The company is facing about 40,000 lawsuits filed by women who claimed to have developed ovarian cancer after using the company's talcum powder products laced with asbestos.
McDonald's Corp declined 2.5% after the fast food chain operator reported a rise in sales driven by price increase and new stores.
McDonald's reported a strong quarterly sales increase after global comparable sales increased 12.6% and in the U.S. rose 10.6%.
Revenue in the fourth quarter declined 1% to $5.9 billion from $6.0 billion and net income increased 16% to $1.9 billion from $1.6 billion.
Diluted earnings per share rose to $2.59 from $2.18 a year ago.
Revenue in 2022 was flat at $23.2 billion and net income fell 18% to $6.2 billion from $7.5 billion a year ago.
UBS Group AG declined 2% to $20.83 after the financial services provider said revenue declined but earnings rose in the fourth quarter.
UBS said fourth quarter revenue declined 9% to $8.0 billion from $8.2 billion a year ago.
Net income in the quarter rose to $1.65 billion from $1.34 billion and diluted earnings per share rose to 50 cents from 38 cents a year ago.
In 2022, the Swiss bank repurchased $5.6 billion of its stock and the company said it plans to buy back $5 billion of its shares in 2023.
The company also proposed a dividend of 55 cents to shareholders on record April 13 and payable on April 14, subject to the approval from the company's board at the shareholder meeting on April 5.
United Parcel Service rose 1.7% to $179.90 after the company reported better-than-expected earnings.
said fourth quarter consolidated revenue increased 2.7% to $27.0 billion.
Revenue in the U.S. rose 3.1% driven by price increase and higher revenues per piece of 7.2%.
The parcel delivery service provider increased its quarterly dividend to $1.62 per share on all outstanding Class A and Class B shares payable on March 10 to shareowners of record on February 21.
The company board also approved a new stock repurchase program of $5.0 billion, replacing the existing plan.
Whirlpool Corp rose 2.2% to $156.80 after the company reported mixed quarterly results but exceeded expectations set by analysts
Whirlpool said fourth quarter net sales declined 15.3% to $4.3 billion and swung to a net loss of $1.6 billion from $300 million.
Diluted loss per share was $29.35 compared to a profit per share of $4.90 a year ago.
Movers: AMC Entertainment, Apple, GE Healthcare, Nissan, Philips, Qualcomm
Scott Peters
30 Jan, 2023
New York City
AMC Entertainment Holdings Inc declined 9% to $5.01 and the company set up a shareholder meeting to decide on its capital raising plan and potentially convert its preferred share unit to its common stock.
The Preferred share unit APE soared 21% after the announcement.
Apple Inc declined 2% to $143 ahead of the company's earnings release on Thursday.
Investors are worried that the weakness in the personal computer market and persistent supply chain and production problems rooted in China may impact the company's revenues.
Over the holiday period, Apple struggled to meet demand for its latest popular models of smartphones.
Bed Bath & Beyond soared 12.5% to $2.87 after the retailer announced plans to close more-than-expected stores.
The company said it plans to close 87 of its namesake stores, all 50 Harmon stores and five buybuy Baby stores.
Ford Motor Company declined 2.9% to $12.89 and the company announced a price cut for some of its popular electric vehicles following the discount offered by Tesla Inc.
Ford offered discounts of as much as 8.8% in some of its Mustang E models.
GE Healthcare Inc increased 2% to $71.50 after the company reported its first quarterly earnings as an independent company after spinning off from General Electric.
December quarter revenue increased 8% to $4.94 billion and net income fell to $554 million from $564 million in the previous year.
Earnings per share from continuing operations eased to $1.21 from $1.24 in the previous year and excluding one-time items, adjusted earnings per share was $1.31.
The company estimated full-year 2023, adjusted earnings per share in the range of $3.60 to $3.75.
Nissan Motor Company declined 1% to $7.01 after the company and its alliance partner Renault SA agreed to limit cross ownership to 15%.
Renault will transfer 28.4% in a French trust but will retain economic gains from the potential divestment.
Philips NV rose 5.9% to $17.99 after the company announced a second layoff of 6,000 following the recall of its respiratory system.
The company said fourth quarter sales increased 10% to 5.4 billion euros and comparable sales increased 3%.
The company swung to a loss of 105 million euros from a profit of 151 million euros a year ago
Qualcomm Inc declined 1.3% to $131.63 and the company said it renewed its partnership with electric vehicle and software focused mobility unit Ampere owned by France-based Renault SA.
The chipmaker's stock was under pressure on the worries that industry slump may persist well in the second-half.
U.S. Stocks Accelerated Declines In Afternoon Trading, Global Markets Trend Lower
Barry Adams
30 Jan, 2023
New York City
Stocks on Wall Street closed down led by tech stocks and investors braced for weak quarterly results from leading technology companies.
Apple Inc, Amazon.com Inc, Meta Platforms and Alphabet Inc are among 400 companies scheduled to release earnings.
After Microsoft reported a decline in earnings and sales, investors have dilated back expectations and Apple Inc is expected to report a decline in revenues in three years.
Apple is struggling to adjust to the weakening PC demand and production challenges for its advanced smartphones because of "zero-covid" policy in China.
Apple has shifted production of some models of smartphone production to India and the company is planning to shift MacBook production to Vietnam as early this year after its key supplier Foxconn diversifies its manufacturing base.
Investors are also looking ahead to economic reports this week.
Monthly jobs report, consumer confidence data and activities in manufacturing and services sectors are scheduled to be released later in the week.
In Europe, Philips announced to lay off 6,000 staff as the company reorganizes its operations after the boom and bust of Covid-19 related products.
Electric vehicle makers brace for more price cuts after Ford Motor Company announced a price cut for some of its electric vehicles, following the price cuts by Tesla Inc.
Ford Motor Company cut as much as 9% list prices on select models of Mustang-E after Tesla Inc offered buyer incentives in the U.S.
Investors also overlooked the latest covid-peak assessment from health regulators in China and independent local sources confirmed Covid-flare-up remains a real threat in rural China.
Benchmark indexes traded volatile with a downward bias and bond yields inched higher on the expectations of a smaller rate hike this week in the U.S. and the Euro Area.
The S&P 500 index declined 1.3% to 4,017.77 and the Nasdaq Composite index dropped 1.95% to 11,393.81.
Crude oil decreased $1.42 to $77.89 a barrel and natural gas futures declined 17 cents to $2.67 a barrel.
The yield on 2-year Treasury notes increased to 4.24%, 10-year Treasury notes inched up to 3.55%, 30-year Treasury notes to 3.65%.
Europe Markets Struggled, Germany's Fourth Quarter GDP Decreased
European markets closed mixed as investors braced for a busy week of corporate earnings and central bank policy meetings.
Semiconductor maker ASML Holding NV declined 2.7% in Amsterdam trading after the company said it is awaiting the details of legislation focused on export controls to China in a statement released on Friday.
Germany's GDP Shrank In December Quarter
Germany's economy contracted in the final quarter of 2022 but expanded in 2022 despite the supply chain challenges and elevated energy prices and weakening consumer spending.
Germany's real GDP decreased 0.2% on the quarter in the final three months of 2022 from the upwardly revised 0.5% in the third quarter, the Federal Statistical Office or Destatis reported Monday.
In 2022, real GDP after adjusting for prices increased 1.8% and rose 1.9% after adjusting for prices and calendar days.
Italian Wholesale Prices Accelerated In December
Italian wholesale price indexes rose in December to 31.7%, accelerating for the second month in a row from 29.4% in the previous month, the Italian National
On a monthly basis prices rose 2.9% from 2.6% in November.
European Indexes Closed Lower
The DAX index fell 0.2% to 15,126.08, the CAC-40 index declined 0.2% to 7,082.01 and the FTSE 100 index rose 0.3% to 7,784.87.
Brent crude fell $1.25 to $85.26 a barrel and the Dutch natural gas TTF futures contract price inched up 2% to €56.55 per MWh.
The yield on 10-year German Bunds rose to 2.28%, French bonds increased to 2.75%, UK Gilts to 3.35% and Italian bonds advanced to 4.28%.
The euro increased to 1.089, the pound traded down to $1.238 and the Swiss franc inched higher to 92.32 U.S. cents.
Europe Movers
Renault SA declined 4.1% to €36.63 after the company agreed to adjust its holding structure in a partnership with Nissan in Japan.
After months of tense discussions, Nissan and Renault agreed to limit and neutralize their cross holdings and voting rights to 15%.
Renault will transfer 28.4% stake in a French trust but retain economic rights for those shares and any gains associated with the sale of the stake.
Renault acquired a stake in the near-bankrupt Nissan in early 1999 and Mitsubishi Motor acquired a stake in the alliance in 2016.
Renault also signed a pact with China-based Geely Automobile to manufacture powertrains for hybrid and internal combustion engine powered vehicles.
Separately, the French automaker struck a strategic deal with the U.S.-based Qualcomm for its new electric and software company, Ampere.
Philips SA rose 7% to €16.64 and the company said it plans to layoff another 6,000 following the recall of faulty respirators.
Prosus NV declined 6.3% to €73.89 after the company said it plans to cut staff reflecting macroeconomic headwinds.
Prosus and its South Africa-based parent Naspers Ltd plan to lay off 30% of its corporate staff, chief executive officer Bob van Dijk said in an interview.
888 Holdings plunged 28% to 74.85 pence after the company announced the departure of chief executive and executive director Itai Pazner.
DEUTZ AG increased 1.9% to €4.97 after the German internal combustion engine maker said it struck two deals with Daimler Truck Holdings AG to develop medium- and heavy-duty commercial engines.
Japan-Holland-US Alliance In Focus In Tokyo and China Trading
Asian markets lacked direction as investors awaited rate decisions and Chinese stocks closed mixed after a week-long holiday
The Chinese State Council reiterated its commitment to boost spending and health authorities announced a sharp decline in daily death rate related to Convid-19.
Investors were also cautious after the U.S., Japan and the Netherlands struck a deal to limit their exports of advanced semiconductor equipment to China.
The details of the pact are still not clear, but the alliance of three countries are expected to finalize the details of legislation in the next six months.
The restrictions are likely to include 28 nanometer ultraviolet lithography equipment used in the production of graphic chips, central processing units and high-speed networking chips, according to a research note prepared by Jeffries analyst Edison Lee.
Deep ultraviolet equipment made by the Japanese companies Canon and Nikon Corp could also come into restrictions, forcing production cuts at the leading Chinese chipmakers China Semiconductor Manufacturing International Corp and Hua Hong and Shanghai Huali Microelectronics Corp and ChangXin Memory Technologies, Lee said in the note.
Stocks in Japan closed higher after a volatile session. and semiconductor equipment stocks were in focus.
The Nikkei index increased 0.2% to 27,433.40 and the yen inched lower to 130.18 against the U.S. dollar.
Fanuc Corp increased 3.5% to ¥23,165.0 and Shin-Etsu Chemical 5% to ¥19,235.0 after the silicon wafer maker lifted its operating earnings outlook.
Covid-19 Flare-up Worries Chinese Health Authorities
Stocks in China closed mixed and about 300 million completed their holiday travel according to a statement by the ministry of tourism and culture.
Markets are worried that Covid-19 infections are likely to flare-up in the coming weeks in rural China and death rates are expected rise in Sichuan, Hebei, Yunnan and Guangxi provinces.
The Shanghai Composite index increased 0.1% to 3,269.32 and the Hang Seng index fell 2.7% to 22,069.73.
The Kospi average in Seoul decreased 1.35% to close at 2,450.47 after five days of advance in a row following the weakness in auto and technology stocks.
India Stocks React to Earnings
Stocks rebounded after a holiday-shortened week of volatile trading and Adani Group stocks remained under pressure.
Adani Enterprises is still looking to complete its secondary offering as early as this week and the Abu Dhabi, UAE controlled investment arm agreed to invest about $400 million.
International Holding Company will make its second investment after the company invested $2 billion in three companies controlled by the group last year.
The Sensex index increased 0.3% or 158.81 points to 59,500.41 and the Nifty index added 0.3% or 44.60 points to 17,648.95.
The rupee held firm near 81.47 against the U.S. dollar.
After the close of regular trading hours, Larsen & Toubro said quarterly net income increased 24% and Bharat Petroleum Corporation said quarterly net declined 36%.
Tech Mahindra said quarterly revenue topped $1 billion for the first time and revenue increased 19.9% but net income fell 5.3% from a year ago in the December quarter.
Bajaj Finance jumped 4% after the financial services provider reported a surge in the December quarter earnings.
European Markets Struggle Amid More Layoffs, German GDP Expanded In 2022
Bridgette Randall
30 Jan, 2023
Frankfurt
European markets closed mixed as investors braced for a busy week of corporate earnings and central bank policy meetings.
Semiconductor maker ASML Holding NV declined 2.7% in Amsterdam trading after the company said it is awaiting the details of legislation focused on export controls to China in a statement released on Friday.
Germany's GDP Shrank In December Quarter
Germany's economy contracted in the final quarter of 2022 but expanded in 2022 despite the supply chain challenges and elevated energy prices and weakening consumer spending.
Germany's real GDP decreased 0.2% on the quarter in the final three months of 2022 from the upwardly revised 0.5% in the third quarter, the Federal Statistical Office or Destatis reported Monday.
In 2022, real GDP after adjusting for prices increased 1.8% and rose 1.9% after adjusting for prices and calendar days.
Italian Wholesale Prices Accelerated In December
Italian wholesale price indexes rose in December to 31.7%, accelerating for the second month in a row from 29.4% in the previous month, the Italian National
On a monthly basis prices rose 2.9% from 2.6% in November.
European Indexes Closed Lower
The DAX index fell 0.2% to 15,126.08, the CAC-40 index declined 0.2% to 7,082.01 and the FTSE 100 index rose 0.3% to 7,784.87.
Brent crude fell $1.25 to $85.26 a barrel and the Dutch natural gas TTF futures contract price inched up 2% to €56.55 per MWh.
The yield on 10-year German Bunds rose to 2.28%, French bonds increased to 2.75%, UK Gilts to 3.35% and Italian bonds advanced to 4.28%.
The euro increased to 1.089, the pound traded down to $1.238 and the Swiss franc inched higher to 92.32 U.S. cents.
Europe Movers
Renault SA declined 4.1% to €36.63 after the company agreed to adjust its holding structure in a partnership with Nissan in Japan.
After months of tense discussions, Nissan and Renault agreed to limit and neutralize their cross holdings and voting rights to 15%.
Renault will transfer 28.4% stake in a French trust but retain economic rights for those shares and any gains associated with the sale of the stake.
Renault acquired a stake in the near-bankrupt Nissan in early 1999 and Mitsubishi Motor acquired a stake in the alliance in 2016.
Renault also signed a pact with China-based Geely Automobile to manufacture powertrains for hybrid and internal combustion engine powered vehicles.
Separately, the French automaker struck a strategic deal with the U.S.-based Qualcomm for its new electric and software company, Ampere.
Philips SA rose 7% to €16.64 and the company said it plans to layoff another 6,000 following the recall of faulty respirators.
Prosus NV declined 6.3% to €73.89 after the company said it plans to cut staff reflecting macroeconomic headwinds.
Prosus and its South Africa-based parent Naspers Ltd plan to lay off 30% of its corporate staff, chief executive officer Bob van Dijk said in an interview.
888 Holdings plunged 28% to 74.85 pence after the company announced the departure of chief executive and executive director Itai Pazner.
DEUTZ AG increased 1.9% to €4.97 after the German internal combustion engine maker said it struck two deals with Daimler Truck Holdings AG to develop medium- and heavy-duty commercial engines.
Wall Street Down 1% On Tech Earnings Anxieties and Rate Worries
Barry Adams
30 Jan, 2023
New York City
Stocks on Wall Street struggled and investors awaited rate decisions and prepared for a busy week of earnings.
Apple Inc, Amazon.com Inc, Meta Platforms and Alphabet Inc are among 400 companies scheduled to release earnings.
Monthly jobs report, consumer confidence data and activities in manufacturing and services sectors are scheduled to be released.
In Europe, Philips announced to lay off 6,000 staff as the company reorganizes its operations after the boom and bust of Covid-19 related products.
Electric vehicle makers brace for more price cuts after Ford followed the price cut announced by Tesla last month.
Ford Motor Company cut as much as 9% list prices on select models of Mustang-E after Tesla Inc offered buyer incentives in the U.S.
Investors also overlooked the latest covid-peak assessments from health regulators from China after independent local sources confirmed it is too soon to declare victory.
Benchmark indexes traded volatile with a downward bias and bond yields inched higher on the expectations of a smaller rate hike this week in the U.S. and the Euro Area.
The S&P 500 index declined 0.9% to 4,035.08 and the Nasdaq Composite index dropped 1.5% to 11,454.37.
Crude oil decreased $1.42 to $78.25 a barrel and natural gas futures declined 15 cents to $2.65 a barrel.
The yield on 2-year Treasury notes increased to 4.25%, 10-year Treasury notes inched up to 3.55%, 30-year Treasury notes to 3.66%.
Europe Markets Struggled, Germany's Fourth Quarter GDP Decreased
European markets closed mixed as investors braced for a busy week of corporate earnings and central bank policy meetings.
Semiconductor maker ASML Holding NV declined 2.7% in Amsterdam trading after the company said it is awaiting the details of legislation focused on export controls to China in a statement released on Friday.
Germany's real GDP decreased 0.2% on the quarter in the final three months of 2022 from the upwardly revised 0.5% in the third quarter. In 2022, real GDP increased 1.8%.
The DAX index fell 0.2% to 15,126.08, the CAC-40 index declined 0.2% to 7,082.01 and the FTSE 100 index rose 0.3% to 7,784.87.
Brent crude fell $1.25 to $85.26 a barrel and the Dutch natural gas TTF futures contract price inched up 2% to €56.55 per MWh.
The yield on 10-year German Bunds rose to 2.28%, French bonds increased to 2.75%, UK Gilts to 3.35% and Italian bonds advanced to 4.28%.
The euro increased to 1.089, the pound traded down to $1.238 and the Swiss franc inched higher to 92.32 U.S. cents.
Japan-Holland-US Alliance In Focus In Tokyo and China Trading
Asian markets lacked direction as investors awaited rate decisions and Chinese stocks closed mixed after a week-long holiday
The Chinese State Council reiterated its commitment to boost spending and health authorities announced a sharp decline in daily death rate related to Convid-19.
Investors were also cautious after the U.S., Japan and the Netherlands struck a deal to limit their exports of advanced semiconductor equipment to China.
The details of the pact are still not clear, but the alliance of three countries are expected to finalize the details of legislation in the next six months.
The restrictions are likely to include 28 nanometer ultraviolet lithography equipment used in the production of graphic chips, central processing units and high-speed networking chips, according to a research note prepared by Jeffries analyst Edison Lee.
Deep ultraviolet equipment made by the Japanese companies Canon and Nikon Corp could also come into restrictions, forcing production cuts at the leading Chinese chipmakers China Semiconductor Manufacturing International Corp and Hua Hong and Shanghai Huali Microelectronics Corp and ChangXin Memory Technologies, Lee said in the note.
Stocks in Japan closed higher after a volatile session. and semiconductor equipment stocks were in focus.
The Nikkei index increased 0.2% to 27,433.40 and the yen inched lower to 130.18 against the U.S. dollar.
Fanuc Corp increased 3.5% to ¥23,165.0 and Shin-Etsu Chemical 5% to ¥19,235.0 after the silicon wafer maker lifted its operating earnings outlook.
Covid-19 Flare-up Worries Chinese Health Authorities
Stocks in China closed mixed and about 300 million completed their holiday travel according to a statement by the ministry of tourism and culture.
Markets are worried that Covid-19 infections are likely to flare-up in the coming weeks in rural China and death rates are expected rise in Sichuan, Hebei, Yunnan and Guangxi provinces.
The Shanghai Composite index increased 0.1% to 3,269.32 and the Hang Seng index fell 2.7% to 22,069.73.
The Kospi average in Seoul decreased 1.35% to close at 2,450.47 after five days of advance in a row following the weakness in auto and technology stocks.
India Stocks React to Earnings
Stocks rebounded after a holiday-shortened week of volatile trading and Adani Group stocks remained under pressure.
Adani Enterprise is still looking to complete its secondary offering as early as this week and the Abu Dhabi, UAE controlled investment arm agreed to invest about $400 million.
International Holding Company will make its second investment after the company invested $2 billion in three companies controlled by the group last year.
The Sensex index increased 0.3% or 158.81 points to 59,500.41 and the Nifty index added 0.3% or 44.60 points to 17,648.95.
The rupee held firm near 81.47 against the U.S. dollar.
After the close of regular trading hours, Larsen & Toubro said quarterly net income increased 24% and Bharat Petroleum Corporation said quarterly net declined 36%.
Tech Mahindra said quarterly revenue topped $1 billion for the first time and revenue increased 19.9% but net income fell 5.3% from a year ago in the December quarter.
Bajaj Finance jumped 4% after the financial services provider reported a surge in the December quarter earnings.
Japan-Holland-US Alliance In Focus In Tokyo and China Trading
Arjun Pandit
30 Jan, 2023
Mumbai
Asian markets lacked direction as investors awaited rate decisions and Chinese stocks closed mixed after a week-long holiday.
Chinese State Council reiterated its commitment to boost spending and health authorities announced a sharp decline in daily death rate related to Convid-19.
Investors were also cautious after the U.S., Japan and the Netherlands struck a deal to limit their exports of advanced semiconductor equipment to China.
The details of the pact are still not clear, but the alliance of three countries are expected to finalize the details of legislation in the next six months.
The restrictions are likely to include 28 nanometer ultraviolet lithography equipment used in the production of graphic chips, central processing units and high-speed networking chips, according to a research note prepared by Jeffries analyst Edison Lee.
Deep ultraviolet equipment made by the Japanese companies Canon and Nikon Corp could also come into restrictions, forcing production cuts at the leading Chinese chipmakers China Semiconductor Manufacturing International Corp and Hua Hong and Shanghai Huali Microelectronics Corp and ChangXin Memory Technologies, Lee said in the note.
Stocks in Japan closed higher in after a volatile session.
The Nikkei index increased 0.2% to 27,433.40 and the yen inched lower to 130.18 against the U.S. dollar.
Fanuc Corp increased 3.5% to ¥23,165.0 and Shin-Etsu Chemical 5% to ¥19,235.0 after the silicon wafer maker lifted its operating earnings outlook.
Covid-19 Flare-up Worries Chinese Health Authorities
Stocks in China closed mixed and about 300 million completed their holiday travel according to a statement by the ministry of tourism and culture.
Markets are worried that Covid-19 infections are liked to flare-up in the coming weeks in rural China and death rates are expected rise in Sichuan, Hebei, Yunnan and Guangxi provinces.
The Shanghai Composite index increased 0.1% to 3,269.32 and the Hang Seng index fell 2.7% to 22,069.73.
The Kospi average in Seoul decreased 1.35% to close at 2,450.47 after five days of advance in a row following the weakness in auto and technology stocks.
India Stocks React to Earnings
Stocks rebounded after a holiday-shortened week of volatile trading and Adani Group stocks remained under pressure.
Adani Enterprise is still looking to complete its secondary offering as early as this week and the Abu Dhabi controlled investment arm agreed to invest about $400 million.
International Holding Company will make its second investment after the company invested $2 billion in three companies controlled by the group last year.
The Sensex index increased 0.3% or 158.81 points to 59,500.41 and the Nifty index added 0.3% or 44.60 points to 17,648.95.
The rupee held firm near 81.47 against the U.S. dollar.
After the close of regular trading hours, Larsen & Toubro said quarterly net income increased 24% and Bharat Petroleum Corporation said quarterly net declined 36%.
Tech Mahindra said quarterly revenue topped $1 billion for the first time and revenue increased 19.9% but net income fell 5.3% from a year ago in the December quarter.
Bajaj Finance jumped 4% after the financial services provider reported a surge in the December quarter earnings.