Market Update
Japan's Nikkei 225 and Topix Plunged Nearly 2% Ahead of Rate Decisions
Akira Ito
17 Sep, 2024
Tokyo
Benchmark indexes in Tokyo faced selling pressure ahead of the monetary policy decisions by the Bank of Japan on Friday.
The Nikkei 225 stock average declined as much as 2% and the Topix index fell as much as 1.8%, and losses in tech stocks contributed to the market weakness.
Investors turned cautious after a three-day holiday and reacted to the weak tech stocks on Wall Street ahead of rate decisions this week by the Federal Reserve Bank, the Bank of England, the Norges Bank, and the Bank of Japan.
The Bank of Japan is widely anticipated to hold its interest rate range, but investors are looking forward to the central bank's rate outlook and the timing of future rate increases.
The yield on 10-year Japanese bonds fell to a one-year low of 0.83%, ahead of the central bank's rate decisions.
The Japanese yen traded at 140.34 against the U.S. dollar in Tokyo as investors turned cautious.
Investors are also hoping that the Federal Reserve Bank will lower its key lending rates by at least 25 basis points, shrinking the gap with rates in Japan.
Japan Stock Movers
The Nikkei 225 stock average decreased 1% to 36,180.30, and the Topix index declined 0.7% to 2,554.52.
Tech stocks led the losers in Tokyo following sharp losses in overnight trading in New York after investors worried that the Apple iPhone 16 sales may lag expectations.
Tokyo Electron decreased 5.2% to ¥22,440.0, Advantest dropped 5.6% to ¥6,016.0, and Screen Holdings declined 2.9% to ¥9,577.0.
Retailers were also among the leading decliners after the yen continued to advance.
Seven & I Holdings declined 0.4% to ¥2,158.50, Isetan Mitsukoshi dropped 3% to ¥2,196.50, and Fast Retailing added 0.4% to ¥44,070.0.
Banks accelerated losses for the second session in a row ahead of the Bank of Japan's rate decisions on Friday.
Mizuho Financial Group declined 2.5% to ¥2,746.50, Sumitomo Mitsui decreased 2.6% to ¥8,750.0, and Mitsubishi UFJ dropped 2.2% to ¥1,419.0.
Property Stocks Rebound In Hong Kong Ahead of Expected Fed Rate Cut, Midea Group IPO Sizzles On Debut
Li Chen
17 Sep, 2024
Hong Kong
Stocks in Hong Kong advanced for the fourth day in a row, and property stocks led the gainers.
The Hang Seng index soared more than 1.5%, and the financial markets in mainland China are set to resume trading on Wednesday after a 4-day weekend.
Stocks advanced ahead of the possible rate cut by the U.S. Federal Reserve on Wednesday, and investors increased their bets that the central bank is more likely to cut rates by 50 basis points.
Amid widespread speculation, investors are hoping that the Federal Reserve is expected to signal that the central bank is prepared to lower rates by as much as 100 basis points by the end of 2024.
Rate cuts in the U.S. also automatically lower interest rates in Hong Kong to maintain the city's currency peg with the U.S. dollar.
Moreover, the Bank of England is scheduled to hold its rate steady on Thursday, and the Bank of Japan is likely to keep its interest rate range unrevised on Friday.
Market sentiment in Hong Kong was also boosted by the expectation that the Chinese government will provide additional stimulus following weak economic data over the weekend.
China Stock Movers
The Hang Seng index added 1.6% to 17,696.54, and financial markets in mainland China were closed for a holiday.
Midea Group increased 10% to HK $59.30, and the Foshan-based electric appliance and household consumer electronics maker raised HK $31 billion in an offering last week.
The company priced its Hong Kong initial public offering at HK $54.80 per share and raised $3.98 billion in the largest offering in three years.
The company is likely to exercise its option to sell additional shares amid strong interest from international investors and increase its offering size to $4.6 billion.
The company is the largest maker of white goods, and the appliance maker also owns Germany-based industrial robot company Kuka.
The company's stock in Hong Kong traded at a 20% discount to its closing price in Shenzhen at ¥63.51.
Tech stocks advanced in Hong Kong trading, tracking gains on Wall Street in overnight trading.
Alibaba Group gained 1.6% to HK $82.95, Tencent Holdings jumped 0.9% to HK $381.20, and Baidu gained 1% to HK $83.50.
Henderson Land Development increased 3.2% to HK $24.55, Sun Hung Kai Properties gained 2.2% to HK $80.80, and CK Asset Holdings gained 4.4% to HK $32.30.
India Movers: Adani Wilmar, Adani Energy, BPCL, Bajaj Housing Finance, Bharat Forge, Reliance Infra, Reliance Power, Strides Pharma
Arun Goswami
17 Sep, 2024
Mumbai
Stocks in Mumbai traded around the flatline, and investors reviewed the impact of the recent decline in crude oil prices on domestic inflationary forces.
The Sensex index decreased by 0.1% to 82,916.07, and the Nifty index edged down by 0.1% to 25,369.95.
On the Mumbai stock exchange, 110 stocks traded at their 52-week highs, and 9 stocks traded at their 52-week lows.
Adani Wilmar declined 0.6% to ₹363.30, and Adani Enterprise and Wilmar International plan to sell a 13% stake in the listed joint venture to meet the regulatory requirements.
After the sale, two companies will lower their combined stake from 88% to 75%, meeting the minimum public holding requirement of 25%.
Adani Energy Solutions increased 0.4% to ₹983.95, and Kenya Electricity Transmission clarified that the company has still not finalized its deal to build three high-voltage power lines.
Bjajaj Housing Finance increased 7.7% to ₹177.75, and the company priced its stock at ₹70 per share and sold a total of 92.6 crore shares and raised ₹6,500 crore.
The company provides consumer loans and 82% of its 308,693 active customers have home loans.
The company's initial public offering was oversubscribed by nearly 64 times.
Bharat Forge declined 0.8% to ₹1,588.40 and Kalyani Forge added 1.4% to ₹531.90, and family feud between Baba Kalyani and Gaurishankar Kalyani deepened.
Baba, 75, rejected his 70-year-old brother Gaurishankar's claim of a second will by their mother as "misinformation campaign."
Strides Pharma declined 2% to ₹1,368.80, and the company received a U.S. Food and Drug Administration's regulatory approval to manufacture generic Fluoxetine tablets.
Fluoxetine is used to treat depression, panic attacks, and eating disorders.
Reliance Power gained 2% to ₹31.69, and the company won an order to build a battery storage solution from Solar Energy Corporation of India.
Reliance Infrastructure soared 6.4% to ₹229.80, and the company's board is scheduled to meet on September 19 to discuss additional fund raising.
Three years ago, the company raised ₹550 crore through the placement of a preferred stock offering.
BPCL declined 0.4% to ₹339.30, and the Central Pollution Control Board issued a preliminary warning for the lack of vapor recovery system at the company's 28 storage terminals.
The regulatory board threatened to fine one crore rupees if the company fails to provide an adequate response by September 19.
Wall Street Indexes Head Lower Ahead of Rate Decisions This Week
Alexander Garcia
16 Sep, 2024
Miami
Stocks traded around the flatline in Monday's trading as investors awaited the Fed's rate decisions and economic projections later in the week.
The S&P 500 index increased 0.2% and the Nasdaq Composite decreased 0.8%, and investors are hoping that the rate-setting committee is ready to start its rate-cut cycle as early as this week.
The S&P500 index and the Nasdaq Composite staged a sharp rebound last week after falling in the previous two weeks in a row, following two inflation reports that confirmed weakening inflationary forces.
Investors are on edge, and the recent decline in inflation and comments from Fed Chair Powell and other officials have raised hopes of a rate cut of at least 25 basis points at the end of the policy meeting on Wednesday.
Last week, investors raised hopes that the Fed may lower the rate by 50 basis points after consumer price inflation dropped to a three-year low and crude oil prices fell to this year's low.
Moreover, the European Central Bank lowered its three key lending rates by 25 basis points following the easing of inflation below 2%.
The Federal Reserve Bank is set to announce its rate decisions and economic projections at the end of its 2-day meeting on Wednesday.
The Bank of England and the Norges Bank are expected to hold their rates steady on Thursday, and the Bank of Japan is likely to hold its rate range unrevised on Friday.
U.S. Indexes and Treasury Yields
The S&P 500 index decreased 0.1% to 5,619.35, the Nasdaq Composite fell 0.8% to 17,544.28, and the Russell 2000 index rose 0.2% to 2,186.91.
The yield on 2-year Treasury notes edged lower to 3.58%, 10-year Treasury notes inched down to 3.66%, and 30-year Treasury bonds inched lower to 3.98%.
WTI crude oil increased $1.20 to $69.83 a barrel, and natural gas prices edged up 6 cents to $2.36 a thermal unit.
Gold rose by $4.81 to $2,583.29 an ounce, and silver increased by $0.05 to $30.76.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 100.70.
U.S. Stock Movers
Apple declined 3% to $215.79 amid worries that the company's new iPhone 16 may fall short of its sales target amid weak demand in China.
Oil service and exploration company stocks advanced after the crude oil prices rebounded in Monday's trading for the second consecutive day in a row.
Exxon Mobil jumped 0.9% to $112.15, Chevron jumped 0.6%, Transocean gained 1.3% to $4.26, and Hess Corp. added 1.2% to $129.08.
Weak China Data Weigh On European Markets, Italy's Trade Surplus Jumps to 3-Year High
European markets struggled in Monday's trading, and investors reviewed the latest economic updates in China.
Market indexes rebounded between 1% and 2% in the previous week, tracking gains on Wall Street amid growing hopes of a 50 basis points rate cut by the Federal Reserve this week.
Luxury goods and vehicle makers were under pressure after China's key economic data fell short of market expectations.
China's retail sales and industrial output rose less-than-expected in August, and the jobless rate edged higher.
Moreover, foreign direct investment plunged 31.5% to $81.8 billion in the first eight months to August.
Moreover, new home prices across 70 largest cities plunged 5.7%, the fastest pace in nine years, indicating weak consumer demand.
Closer to home, Italy's trade surplus widened to €6.7 billion in July from €6.1 billion in the period a year ago, the statistical agency, ISTAT, reported Monday.
Exports rose 6.8% to €57.2 billion, driven by a 21.4% rise in pharmaceutical products, a 15.4% increase in food products and beverages, and a 15.3% rise in chemicals.
Imports rose 6.3% to €50.4 billion, driven by a decline in apparel imports by 7.2% and natural gas by 6.5%, offsetting the increase in pharmaceuticals by 24.6%, food products and beverages by 16.2%, and chemicals by 15.9%.
In the week ahead, investors are also awaiting monetary policy decisions from the Bank of England, the U.S. Federal Reserve, the Bank of Japan, and the Norges Bank.
Europe Indexes and Yields
The DAX index decreased by 0.4% to 18,633.11; the CAC-40 index fell by 0.2% to 7,449.44; and the FTSE 100 index increased by 0.1% to 8,278.44.
The yield on 10-year German bonds edged higher to 2.14%, French bonds inched lower to 2.83%, the UK gilts edged down to 3.77%, and Italian bonds decreased to 3.49%.
The euro edged up to $1.11; the British pound inched higher to $1.31; and the U.S. dollar weakened to 84.48 Swiss cents.
Brent crude increased $0.92 to $72.53 a barrel, and the Dutch TTF natural gas fell by €1.40 to €34.31 per MWh.
Europe Stock Movers
Eni SpA increased 0.1% to €14.03 after a report suggested that the Italian oil company is seeking to sell more shares in its renewable energy arm, Plenitude.
UniCredit SA advanced 0.4% to €37.07, and the Italian lender announced its plans to start repurchasing €1.7 billion of its own stock.
Ispen SA gained 5.5% to €111.50, and the French drug maker said it has aborted its plans to commercialize its prostate cancer treatment after the late-stage trial failed to meet its main goals.
Phoenix Group Holdings PLC decreased 3.4% to 557.0 pence after the British insurance company reported strong first-half results and halted its plans to sell its SunLife business.
IFRS loss in the first half widened to £698 million from £245 million a year ago, reflecting higher global interest rates and adverse equities.
IFRS adjusted operating profit increased 15% to £360 million from £313 million because of higher income in its pension and savings and retirement solutions divisions.
In addition, the company's board approved an increase of 2.5% in cash dividends in the first half to 26.55 pence per share.
Playtech PLC jumped 13.5% to 742.0 pence after the UK-based gambling technology company said its adjusted core profit is likely to be ahead of market expectations.
Vossloh AG jumped 2.7% to €47.25, and the German rail technology company said it secured a €100 million contract from DB InfraGo AG, a unit of Deutsche Bahn AG.
Mercedes Benz decreased 0.9% to €56.25, VW fell 1.6% to €90.92, and BMW dropped 0.8% to €72.72.
Kering SA fell 0.8% to €226.85, LVMH fell 0.03% to €607.90, and Hermes International dropped 0.9% to €1,899.50.
Rexel SA increased 8.7% to €24.97 after the electrical supplies distributor said it received and rejected an unsolicited acquisition offer from billionaire Brad Jacobs-led QXO.
China's Faltering Economic Growth Data Highlight Struggling Consumer and Weakening Labor Market
Stocks in Hong Kong struggled in Monday's trading as investors reviewed the latest flood of economic updates from the mainland.
The Hang Seng index declined as much as 0.5% in Monday's trading after the key economic data fell short of market expectations, setting off alarms of rapidly faltering economic activities.
China's retail sales in August rose 2.1%, industrial output advanced at a five-year low annual rate of 4.5%, fixed investment slowed at 3.4%, and foreign direct investment plunged 31.5% to $81.8 billion in the period between January and August, respectively.
Retail sales slowed from 2.7% in the previous month, and fixed investment in the eight-month period to August slowed to 3.4% from the first seven months in the year, the National Bureau of Statistics reported over the weekend.
Property investment dropped 10.2% in the eight-month period to August, matching the decline in the seven-month period ending in July.
Industrial output growth slowed to 4.5% from a 5.1% increase in July, as domestic demand growth continues to wane.
The urban jobless growth rate edged higher to 5.3% in August from 5.2% in July, but the jobless data are widely suspected to understate by a wide margin the weakness in the labor market.
China's weak growth data confirmed the uneven economic recovery and the government's flexibility to stimulate the economy because of sky-high debt levels at the federal and local government levels.
Moreover, new home prices across 70 cities declined 5.7% in August, faster than 5.3% in July, according to the latest data released by the National Bureau of Statistics.
New home prices fell at the fastest pace since May 2015 as the federal government's piecemeal approach to reviving weak property markets failed.
Prices in Tier-1 cities, which generally act as a barometer of a nation's health, declined 0.3% from the previous month, reversing a trend of rising prices for years.
Moreover, prices declined 0.7% in the Tier-2 and Tier-3 cities, amid a lack of demand and a string of failed and unfinished residential investment projects.
Existing home sales did not fare any better, and prices plunged 0.9% across the top 70 cities, the statistics bureau reported over the weekend.
China's households are increasingly parking their savings in banks amid weak consumer confidence and a rapidly weakening labor market outlook.
China's retail bank deposits increased by 9.65 trillion yuan in the eight months to August, with 710 billion yuan rising in August alone, the People's Bank of China reported on Friday.
China Stock Movers
The Hang Seng index decreased 0.04% to 17,362.17, and financial markets on the mainland were closed for the celebration of the Mid-Autumn festival.
Residential property developers extended recent losses after the release of new home price data over the weekend.
China Resources Land decreased 2.7% to HK $19.04, China Vanke decreased 2.5% to HK $3.83, Longfor Group Holdings dropped 2.6% to HK $7.81, but Sun Hung Kai Properties rose 1.1% to HK $78.70.
Tech stocks lacked direction and headed lower in Monday's trading.
Alibaba Group fell 1.03% to HK $81.90, Tencent Holdings gained 0.7% to HK $377.60, and Baidu added 0.7% to HK $82.65.
S&P 500 and Nasdaq Hover Near Flatline, 10-Year Treasury Yield Hold at 15-Month Low
Barry Adams
16 Sep, 2024
New York City
Stocks struggled to advance in Monday's trading as investors awaited the Fed's rate decisions and economic projections later in the week.
The S&P 500 index increased 0.1% and the Nasdaq Composite decreased 0.4%, and investors are hoping that the rate-setting committee is ready to start its rate-cut cycle.
Investors are on edge, and the recent decline in inflation and comments from Fed Chair Powell and other officials have raised hopes of a rate cut of at least 25 basis points.
Last week, investors raised hopes that the Fed may lower the rate by 50 basis points after consumer price inflation dropped to a three-year low and crude oil prices fell to this year's low.
Moreover, the European Central Bank lowered its three key lending rates by 25 basis points following the easing of inflation below 2%.
The Federal Reserve Bank is set to announce its rate decisions and economic projections at the end of its 2-day meeting on Wednesday.
The Bank of England and the Norges Bank are expected to hold their rates steady on Thursday, and the Bank of Japan is likely to hold its rate range unrevised on Friday.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.1% to 5,631.52, the Nasdaq Composite fell 0.4% to 17,608.19, and the Russell 2000 index rose 0.3% to 2,188.49.
The yield on 2-year Treasury notes edged lower to 3.58%, 10-year Treasury notes inched down to 3.66%, and 30-year Treasury bonds inched lower to 3.98%.
WTI crude oil increased $1.90 to $70.54 a barrel, and natural gas prices edged down 4 cents to $2.34 a thermal unit.
Gold rose by $3.11 to $2,581.70 an ounce, and silver increased by $0.09 to $30.86.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 100.70.
U.S. Stock Movers
Apple declined 3% to $215.79 amid worries that the company's new iPhone 16 may fall short of its sales target amid weak demand in China.
Oil service and exploration company stocks advanced after the crude oil prices rebounded in Monday's trading for the second consecutive day in a row.
Exxon Mobil jumped 0.9% to $112.15, Chevron jumped 0.6%, Transocean gained 1.3% to $4.26, and Hess Corp. added 1.2% to $129.08.
Europe Movers: Eni, Ispen, Phoenix Group, Playtech, Rexel, UniCredit, Vossloh
Inga Muller
16 Sep, 2024
Frankfurt
European markets struggled to advance as investors anticipated monetary policy decisions from several major central banks this week.
The DAX index decreased by 0.2% to 18,658.57; the CAC-40 index rose by 0.03% to 7,467.89; and the FTSE 100 index decreased by 0.01% to 8,265.69.
The yield on 10-year German bonds edged higher to 2.14%, French bonds inched lower to 2.83%, the UK gilts edged down to 3.77%, and Italian bonds decreased to 3.49%.
Eni SpA increased 0.1% to €14.03 after a report suggested that the Italian oil company is seeking to sell more shares in its renewable energy arm, Plenitude.
UniCredit SA advanced 0.4% to €37.07, and the Italian lender announced its plans to start repurchasing €1.7 billion of its own stock.
Ispen SA gained 5.5% to €111.50, and the French drug maker said it has aborted its plans to commercialize its prostate cancer treatment after the late-stage trial failed to meet its main goals.
Phoenix Group Holdings PLC decreased 3.4% to 557.0 pence after the British insurance company reported strong first-half results and halted its plans to sell its SunLife business.
IFRS loss in the first half widened to £698 million from £245 million a year ago, reflecting higher global interest rates and adverse equities.
IFRS adjusted operating profit increased 15% to £360 million from £313 million because of higher income in its pension and savings and retirement solutions divisions.
In addition, the company's board approved an increase of 2.5% in cash dividends in the first half to 26.55 pence per share.
Playtech PLC jumped 13.5% to 742.0 pence after the UK-based gambling technology company said its adjusted core profit is likely to be ahead of market expectations.
Vossloh AG jumped 2.7% to €47.25, and the German rail technology company said it secured a €100 million contract from DB InfraGo AG, a unit of Deutsche Bahn AG.
Luxury goods and vehicle makers declined after China's latest economic data fell short of market expectations.
Mercedes Benz decreased 0.9% to €56.25, VW fell 1.6% to €90.92, and BMW dropped 0.8% to €72.72.
Kering SA fell 0.8% to €226.85, LVMH fell 0.03% to €607.90, and Hermes International dropped 0.9% to €1,899.50.
Rexel SA increased 8.7% to €24.97 after the electrical supplies distributor said it received and rejected an unsolicited acquisition offer from billionaire Brad Jacobs-led QXO.
Weak China Data Weigh On European Markets, Italy's Trade Surplus Jumps to 3-Year High
Bridgette Randall
16 Sep, 2024
London
European markets struggled in Monday's trading, and investors reviewed the latest economic updates in China.
Market indexes rebounded between 1% and 2% in the previous week, tracking gains on Wall Street amid growing hopes of a 50 basis points rate cut by the Federal Reserve this week.
Luxury goods and vehicle makers were under pressure after China's key economic data fell short of market expectations.
China's retail sales and industrial output rose less-than-expected in August, and the jobless rate edged higher.
Moreover, foreign direct investment plunged 31.5% to $81.8 billion in the first eight months to August.
Moreover, new home prices across 70 largest cities plunged 5.7%, the fastest pace in nine years, indicating weak consumer demand.
Closer to home, Italy's trade surplus widened to €6.7 billion in July from €6.1 billion in the period a year ago, the statistical agency, ISTAT, reported Monday.
Exports rose 6.8% to €57.2 billion, driven by a 21.4% rise in pharmaceutical products, a 15.4% increase in food products and beverages, and a 15.3% rise in chemicals.
Imports rose 6.3% to €50.4 billion, driven by a decline in apparel imports by 7.2% and natural gas by 6.5%, offsetting the increase in pharmaceuticals by 24.6%, food products and beverages by 16.2%, and chemicals by 15.9%.
In the week ahead, investors are also awaiting monetary policy decisions from the Bank of England, the U.S. Federal Reserve, the Bank of Japan, and the Norges Bank.
Europe Indexes and Yields
The DAX index decreased by 0.2% to 18,658.57; the CAC-40 index rose by 0.03% to 7,467.89; and the FTSE 100 index decreased by 0.01% to 8,265.69.
The yield on 10-year German bonds edged higher to 2.14%, French bonds inched lower to 2.83%, the UK gilts edged down to 3.77%, and Italian bonds decreased to 3.49%.
The euro edged up to $1.11; the British pound inched higher to $1.31; and the U.S. dollar weakened to 84.48 Swiss cents.
Brent crude increased $0.32 to $71.92 a barrel, and the Dutch TTF natural gas fell by €1.57 to €34.13 per MWh.
Europe Stock Movers
Eni SpA increased 0.1% to €14.03 after a report suggested that the Italian oil company is seeking to sell more shares in its renewable energy arm, Plenitude.
UniCredit SA advanced 0.4% to €37.07, and the Italian lender announced its plans to start repurchasing €1.7 billion of its own stock.
Ispen SA gained 5.5% to €111.50, and the French drug maker said it has aborted its plans to commercialize its prostate cancer treatment after the late-stage trial failed to meet its main goals.
Phoenix Group Holdings PLC decreased 3.4% to 557.0 pence after the British insurance company reported strong first-half results and halted its plans to sell its SunLife business.
IFRS loss in the first half widened to £698 million from £245 million a year ago, reflecting higher global interest rates and adverse equities.
IFRS adjusted operating profit increased 15% to £360 million from £313 million because of higher income in its pension and savings and retirement solutions divisions.
In addition, the company's board approved an increase of 2.5% in cash dividends in the first half to 26.55 pence per share.
Playtech PLC jumped 13.5% to 742.0 pence after the UK-based gambling technology company said its adjusted core profit is likely to be ahead of market expectations.
Vossloh AG jumped 2.7% to €47.25, and the German rail technology company said it secured a €100 million contract from DB InfraGo AG, a unit of Deutsche Bahn AG.
Mercedes Benz decreased 0.9% to €56.25, VW fell 1.6% to €90.92, and BMW dropped 0.8% to €72.72.
Kering SA fell 0.8% to €226.85, LVMH fell 0.03% to €607.90, and Hermes International dropped 0.9% to €1,899.50.
Rexel SA increased 8.7% to €24.97 after the electrical supplies distributor said it received and rejected an unsolicited acquisition offer from billionaire Brad Jacobs-led QXO.
China's Faltering Economic Growth Data Highlight Struggling Consumer and Weakening Labor Market
Li Chen
16 Sep, 2024
Hong Kong
Stocks in Hong Kong struggled in Monday's trading as investors reviewed the latest flood of economic updates from the mainland.
The Hang Seng index declined as much as 0.5% in Monday's trading after the key economic data fell short of market expectations, setting off alarms of rapidly faltering economic activities.
China's retail sales in August rose 2.1%, industrial output advanced at a five-year low annual rate of 4.5%, fixed investment slowed at 3.4%, and foreign direct investment plunged 31.5% to $81.8 billion in the period between January and August, respectively.
Retail sales slowed from 2.7% in the previous month, and fixed investment in the eight-month period to August slowed to 3.4% from the first seven months in the year, the National Bureau of Statistics reported over the weekend.
Property investment dropped 10.2% in the eight-month period to August, matching the decline in the seven-month period ending in July.
Industrial output growth slowed to 4.5% from a 5.1% increase in July, as domestic demand growth continues to wane.
The urban jobless growth rate edged higher to 5.3% in August from 5.2% in July, but the jobless data are widely suspected to understate by a wide margin the weakness in the labor market.
China's weak growth data confirmed the uneven economic recovery and the government's flexibility to stimulate the economy because of sky-high debt levels at the federal and local government levels.
Moreover, new home prices across 70 cities declined 5.7% in August, faster than 5.3% in July, according to the latest data released by the National Bureau of Statistics.
New home prices fell at the fastest pace since May 2015 as the federal government's piecemeal approach to reviving weak property markets failed.
Prices in Tier-1 cities, which generally act as a barometer of a nation's health, declined 0.3% from the previous month, reversing a trend of rising prices for years.
Moreover, prices declined 0.7% in the Tier-2 and Tier-3 cities, amid a lack of demand and a string of failed and unfinished residential investment projects.
Existing home sales did not fare any better, and prices plunged 0.9% across the top 70 cities, the statistics bureau reported over the weekend.
China's households are increasingly parking their savings in banks amid weak consumer confidence and a rapidly weakening labor market outlook.
China's retail bank deposits increased by 9.65 trillion yuan in the eight months to August, with 710 billion yuan rising in August alone, the People's Bank of China reported on Friday.
China Stock Movers
The Hang Seng index decreased 0.04% to 17,362.17, and financial markets on the mainland were closed for the celebration of the Mid-Autumn festival.
Residential property developers extended recent losses after the release of new home price data over the weekend.
China Resources Land decreased 2.7% to HK $19.04, China Vanke decreased 2.5% to HK $3.83, Longfor Group Holdings dropped 2.6% to HK $7.81, but Sun Hung Kai Properties rose 1.1% to HK $78.70.
Tech stocks lacked direction and headed lower in Monday's trading.
Alibaba Group fell 1.03% to HK $81.90, Tencent Holdings gained 0.7% to HK $377.60, and Baidu added 0.7% to HK $82.65.
India Movers: JSW Energy, MTNL, Patanjali Foods, Spicejet, Zydus Lifesciences
Arun Goswami
16 Sep, 2024
Mumbai
Stocks in Mumbai opened higher amid optimism about the inflation outlook after the crude oil prices hovered near the 2024's lows.
Bajaj Housing Finance, Tolins Tyres, and Arkade Developers are in focus this week ahead of listing their shares on stock exchanges.
Patanjali Foods decreased 0.5% to ₹1,850.70 after Patanjali Ayurved sold 2.7%, or 97.9 lakh shares, for ₹1,815 crore.
GLG Partners increased its stake in the food product maker by 1.24% through an open market transaction and potentially acquiring shares sold by Patanjali Ayurved.
Zydus Lifesciences declined 0.1% to ₹1,117.15, and the U.S. Food and Drug Administration issued warning letters citing manufacturing lapses at its Gujarat manufacturing unit.
Spicejet increased 2.4% to ₹73.39 after the company received approval from the SEBI to raise as much as 3,000 crore through the sale of securities.
The securities regulator also banned Spice Healthcare, the promoter group-controlled company, from making an open offer to acquire additional shares in the struggling airline.
JSW Energy declined 0.5% to ₹764.0, and the company's subsidiary has commissioned a 300 MW wind power plant in Tuticorin, Tamil Nadu.
Mahanagar Telephone Nigam decreased 3.7% to ₹57.09 after the central government said it will make interest payments on outstanding bonds for the second time.
MTNL also said in a regulatory filing that the Bank of India has classified its loans to the company totaling ₹1,024 crore as non-performing.
The central government has pumped more than ₹3.2 lakh crore into MTNL and BSNL, two state-controlled struggling telecom companies facing severe financial difficulties. over the last five years.
U.S. Movers: Adobe, Boeing, RH
Scott Peters
13 Sep, 2024
New York City
Boeing declined 2.5% to $158.80 after the workers union rejected the latest agreement with the company and decided to strike.
RH soared 19% to $305.0, and the furniture retailer reported better-than-expected quarterly results.
Net revenue increased 3.6% to $830 million, net income declined to $28.9 million from $76.4 million, and diluted earnings per share were $1.57 from $3.65.
The company estimated revenue to increase between 7% and 9% in the third quarter and adjusted its operating earnings margin between 15% and 16%.
Adobe declined 8.9% to $534.44, and the software company reported better-than-expected fiscal third quarter results, but the company's current quarter outlook fell short of market expectations.
Adobe reported revenue in the quarter increased to $5.41 billion and adjusted earnings per share of $4.65.
Revenue increased 11% to $5.41 billion, net income advanced to $1.7 billion compared to $1.4 billion, and diluted earnings rose to $3.76 from $3.05 from a year ago.
S&P 500 and Nasdaq Composite 5-day Rally Extends Weekly Gains
Barry Adams
13 Sep, 2024
New York City
Stock market indexes traded higher and extended weekly gains as investors debated the future rate path and size of the possible rate next week.
The S&P 500 index and the Nasdaq Composite edged higher and are set to advance for the fifth consecutive session in a row as investors doubled down rate-cut bets.
The S&P 500 index is up 3.5%, and the Nasdaq Composite has advanced 5.3% this week as of market close on Thursday.
Weakening of consumer price inflation in August boosted hopes of a rate cut, but the core inflation rate held steady at 2.8%, well above the Fed's target rate of 2%.
Moreover, crude oil prices have been on the downward slide this year and dropped to this year's low below $66 a barrel, which could lower overall inflation in September.
However, service inflation is above 3% and well-entrenched in the economy, indicating inflation is likely to stay near 3%.
Investors are looking forward to the Fed's policy meeting on September 17 and 18, and the central bank is set to release its economic projections and inflation outlook.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.4% to 5,616.31, the Nasdaq Composite rose 0.3% to 17,626.01, and the Russell 2000 index rose 1.3% to 2,157.09.
The yield on 2-year Treasury notes edged lower to 3.61%, 10-year Treasury notes inched down to 3.66%, and 30-year Treasury bonds inched lower to 3.98%.
WTI crude oil increased $0.79 to $69.77 a barrel, and natural gas prices edged up 4 cents to $2.40 a thermal unit.
Gold rose by $11.41 to $2,569.92 an ounce, and silver increased by $0.16 to $30.08.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 101.08.
U.S. Stock Movers
Boeing declined 2.5% to $158.80 after the workers union rejected the latest agreement with the company and decided to strike.
RH soared 19% to $305.0, and the furniture retailer reported better-than-expected quarterly results.
Net revenue increased 3.6% to $830 million, net income declined to $28.9 million from $76.4 million, and diluted earnings per share were $1.57 from $3.65.
The company estimated revenue to increase between 7% and 9% in the third quarter and adjusted its operating earnings margin between 15% and 16%.
Adobe declined 8.9% to $534.44, and the software company reported better-than-expected fiscal third quarter results.
Adobe reported revenue in the quarter increased to $5.41 billion and adjusted earnings per share of $4.65.
Revenue increased 11% to $5.41 billion, net income advanced to $1.7 billion compared to $1.4 billion, and diluted earnings rose to $3.76 from $3.05 from a year ago.
Europe Movers: Commerzbank, Mining Stocks, Unilever, Worldline
Inga Muller
13 Sep, 2024
Frankfurt
Benchmark indexes in France, Germany, and the UK extended weekly gains to 1% a day after the ECB lowered its key lending rates.
France's consumer price inflation was revised lower in August, and the Euro Area industrial output extended weakness to the eighteenth month.
The DAX index increased by 0.5% to 18,617.54; the CAC-40 index rose by 0.3% to 7,457.28; and the FTSE 100 index rose by 0.2% to 8,257.62.
The yield on 10-year German bonds edged higher to 2.13%, French bonds inched lower to 2.83%, the UK gilts edged down to 3.77%, and Italian bonds decreased to 3.51%.
Worldline SA plummeted 19.2% to €6.79, and the payment service provider lowered its revenue and core earnings outlook.
The company also announced the departure of its chief executive, Giles Grapinet.
Mining companies traded higher after copper prices surged in the hopes of higher demand ahead of the National Day Holiday, also known as Golden Week, starting October 1.
Antofagasta declined 0.1% to 1,725.0 pence, Anglo American decreased 0.3% to 2,056.50 pence, and Glencore jumped 0.6% to 374.75 pence.
Unilever plc increased 0.7% to 4,960.0 pence after the consumer products maker launched the second and final phase of its Є1.5 billion stock buyback.
Commerzbank AG advanced 3.2% to €15.47 after the head of the Bundesbank, Joachim Nagel, said that the central bank will closely look at Italy-based UniCredit's plan to acquire the German bank.
European Indexes Advanced and Bond Yields Eased, Industrial Output Weakness Extended to July
Bridgette Randall
13 Sep, 2024
London
European markets traded higher a day after the European Central Bank lowered its rates, but the central bank provided little clarity about the future rate path.
Benchmark indexes in Paris, London, and Frankfurt edged higher between 0.2% and 0.5%, and bond yield traded down for the fifth session in a row.
The European Central Bank, in a statement released after the rate decisions, confirmed that while inflation is easing, wages are still rising at an elevated pace, which could rekindle inflationary pressures.
In addition, at the press conference after the governing council meeting, ECB president Christine Lagarde provided little clarity about the next steps of the policymakers and added that rate decisions are going to be based on future data flow.
On the economic front, industrial output of the Euro Area declined 2.2% from a year ago in July, Eurostat reported Friday.
Industrial output has been declining since May 2023, barring only January 2024, indicating weak domestic demand overwhelming rising exports.
France's annual consumer price inflation was revised lower to 1.8% from the preliminary estimate of 1.9% and from 2.3% in June, according to an update released by the statistical agency INSEE.
Consumer price inflation in August dropped to the lowest level since July 2021, largely because of weak energy and electricity prices.
Europe Indexes and Yields
The DAX index increased by 0.5% to 18,617.54; the CAC-40 index rose by 0.3% to 7,457.28; and the FTSE 100 index rose by 0.2% to 8,257.62.
The yield on 10-year German bonds edged higher to 2.13%, French bonds inched lower to 2.83%, the UK gilts edged down to 3.77%, and Italian bonds decreased to 3.51%.
The euro edged up to $1.11; the British pound inched higher to $1.31; and the U.S. dollar weakened to 84.78 Swiss cents.
Brent crude increased $0.69 to $72.66 a barrel, and the Dutch TTF natural gas rose by €0.55 to €35.79 per MWh.
Europe Stock Movers
Worldline SA plummeted 19.2% to €6.79, and the payment service provider lowered its revenue and core earnings outlook.
The company also announced the departure of its chief executive, Giles Grapinet.
Mining companies traded higher after copper prices surged in the hopes of higher demand ahead of the National Day Holiday, also known as Golden Week, starting October 1.
Antofagasta declined 0.1% to 1,725.0 pence, Anglo American decreased 0.3% to 2,056.50 pence, and Glencore jumped 0.6% to 374.75 pence.
Unilever plc increased 0.7% to 4,960.0 pence after the consumer products maker launched the second and final phase of its Є1.5 billion stock buyback.
Commerzbank AG advanced 3.2% to €15.47 after the head of the Bundesbank, Joachim Nagel, said that the central bank will closely look at Italy-based UniCredit's plan to acquire the German bank.
Rising Yen Trims Weekly Gains in Nikkei 225 Average and Topix Index
Akira Ito
13 Sep, 2024
Tokyo
Market indexes in Tokyo fell following the continued rise in the yen after hawkish comments from the Bank of Japan official.
The Nikkei 225 stock average declined 0.7% and the Topix index dropped 0.8% after the yen rose to this year's high of 140.50 against the U.S. dollar.
Bank of Japan board member Naoki Tamura said on Thursday that the central bank must lift rates to 1% over the next two years to gradually achieve its target of 2% inflation.
Tamura's comments pressured Japanese equities and rimmed benchmark indexes' weekly gains to between 2% and 3%.
Investors welcomed the European Central Bank's 25 basis points rate cut for the second time in three months and hoped that the U.S. Federal Reserve Bank would follow through with a similar rate cut next week.
Japan Stock Movers
The Nikkei 225 stock average decreased 0.7% to 36,570.74, and the broader Topix index declined 0.8% to 2,573.01.
Tech stocks traded mixed following a rise in the sector in overnight trading in New York.
Advantest increased 1.3% to ¥6,380.0, Screen Holdings fell 1% to ¥9,857.0, Softbank Group fell 1% to ¥8,417.0, and Tokyo Electron advanced 1.6% to ¥23,645.0.
Banks were in focus after the yen traded near this year's high amid a hawkish interest rate outlook.
Mitsubishi UFJ Financial declined 0.6% to ¥1,451.0, Sumitomo Mitsui Financial fell 0.8% to ¥8,982.0, and Mizuho Financial decreased 0.6% to ¥2,813.50.
Diversified conglomerates declined and extended weekly losses to around 2% after the yen continued to drift higher.
Marubeni decreased 0.5% to ¥2,234.50, Mitsui % Co. increased 0.2% to ¥2,891.50, Mitsubishi Corp. fell 0.5% to ¥2,834.50, and Itochu Corp. dropped 1.3% to ¥7,325.0.
Hong Kong and Mainland China Indexes Trim Weekly Losses Amid Lackluster Trading
Li Chen
13 Sep, 2024
Hong Kong
Stocks in Shanghai and Hong Kong advanced in Friday's trading amid speculation that the central bank is prepared to lower mortgage rates.
The Hang Seng index advanced 1%, and the mainland-focused CSI 300 index edged higher after property developers jumped.
Lingering worries about weak economic rebound and weakening consumer confidence outweighed optimism about the possible U.S. rate cuts next week.
Investors have stayed on the sidelines amid persistent growth worries, a protracted property market slump,
Market sentiment was boosted after the European Central Bank cut its key lending rate by 25 basis points and held its economic growth and inflation outlook for the current year.
The move was widely anticipated by investors, and investors are hoping that the U.S. Federal Reserve Bank will follow through with at least a similar rate cut after its policy meeting on September 18.
China Stock Movers
The Hang Seng index increased 1.1% to 17,435.42, and the mainland-focused CSI 300 index added 0.2% to 3,176.79.
For the week, the Hang Seng index is down a fraction following the decline of more than 3% in the previous week.
Tech stocks led the gainers in Hong Kong trading following a rebound in the sector on Wall Street in Thursday's trading.
Meituan increased 1.7% to HK $124.40, Alibaba Group decreased 0.4% to HK $83.15, Baidu gained 0.8% to HK $82.25, and Tencent Holdings edged higher 0.4% to HK $374.60.
Xiaomi Corp added 1.4% to HK $19.20, BYD gained 0.5% to HK $240.0, and Li Auto fell 0.7% to HK $73.90.
Mainland-focused property developers advanced on speculation that the People's Bank of China is likely to lower mortgage rates in the coming weeks.
Longfor Group advanced 3.6% to HK $8.07, China Resources Land added 1.3% to HK $19.66, and China Vanke increased 1.3% to HK $3.94.