Europe Movers: Barclays, Fresenius Medical Care, InterContinental Hotels

Inga Muller
20 Feb, 2024
Frankfurt

European markets traded sideways, and investors reacted to earnings from domestic corporations. 

In addition, EU passenger car sales rebounded in January, and the current account swung to surplus in 2023 from a deficit in 2022. 

The DAX index decreased by 0.2% to 17,057.49, the CAC-40 index rose 0.3% to 7,792.92, and the FTSE 100 index inched higher by 0.04% to 7,731.61.

The yield on 10-year German bonds edged down to 2.37%; French bonds inched higher to 2.84%; the UK gilts edged lower to 4.05%; and Italian bonds inched higher to 3.86%.

Barclays PLC increased 5.7% to 157.50 pence after the UK-based bank reported weak quarterly results. 

Total revenue in the fourth quarter declined 3% to £5.6 billion from £5.8 billion, and net income attributable to shareholders swung to a loss of £111 million from a profit of £1.04 billion a year ago. 

The financial services company also said it plans to return £10 billion to shareholders between 2024 and 2026 through stock buybacks and dividends. 

Fresenius Medical Care decreased 0.3% to €26.51 despite the Germany dialysis firm reporting stronger-than-expected fourth quarter results. 

Revenue in the fourth quarter was flat at €4.98 billion, net income advanced to €188 million from €139 million, and basic earnings per share jumped 35% to 64 cents from 47 cents a year ago. 

The company estimated 2024 revenue growth at "a low- to mid-single-digit percent rate" and operating income at a "mid- to high-teen percent rate" compared to a year ago, respectively. 

InterContinental Hotels Group rose 3.8% to 8,216.0 pence after the company reported strong financial results. 

Revenue in 2023 increased 18% to $4.6 billion from $3.9 billion, net income soared 99.5% to $750 million from $356 million, and basic earnings per share advanced 114% to $4.43 from $2.07 a year ago. 

In 2023, the company completed a stock buyback of $750 million and paid $245 million in dividends. 

The hospitality group also announced a new stock repurchase program of $800 million and plans to return to shareholders about $1 billion, including dividends, in 2024. 

The company increased its final dividend by 10% to $1.04, increasing its total dividend in 2023 to $1.523 per share. 

Eurozone Current Account Swings to Surplus, EU Passenger Car Sales Rebound

Bridgette Randall
20 Feb, 2024
New York City

European markets traded mixed as investors overlooked interest rate uncertainties and shifted their focus to another batch of earnings. 

Benchmark indexes in Germany edged lower, but in Paris and London they advanced. 

Market indexes in Paris and Frankfurt hovered near record highs, but anxious investors awaited the release of the latest policy meeting minutes. 

Eurozone Current Account Swings to Surplus in 2023

The Eurozone current account surplus rose to a six-month high in December, the European Central Bank reported Tuesday. 

The current account surplus rose to €32 billion from €22 billion in the previous month, the highest level since last June. 

The goods surplus in the month rose to €35 billion from €32 billion, and the service surplus eased to €16 billion from €17 billion a year ago. 

The primary income shortfall in the month declined to €5 billion from €13 billion, and the secondary income shortfall decreased to €13 billion from €14 billion a year ago. 

In the full-year 2023, the current account surplus increased to €260 billion, or 1.8% of the eurozone GDP, from a deficit of €82 billion, or 0.6% of GDP, in 2022.

EU Passenger Car Registration Jumped In January 

Passenger car registration in the European Union rose 12.1% from a year ago in January to 851,700 units, the European Automobile Manufacturers Association reported Tuesday. 

Despite higher interest rates and rising costs of living, buyers returned to acquire new vehicles. 

Among major markets in the region, passenger car registrations in Germany soared 19.1%, followed by Italy with an increase of 10.6%, France 9.2%, and Spain 7.3%. 

Battery electric vehicle sales rebounded 28.9% to 92,700 units, comprising 10.9% of all registrations and rebounding from a 16.9% decline in December. 

In January, the petrol car market expanded by 4%, driven by an increase of 26.7% in Italy and a 16.9% rise in Germany. 

Despite maintaining its lead with 35.2% of the market in January, the share of gasoline cars decreased from 37.9% in the same month in 2023.

Diesel car registration continued to shrink as buyers opted for hybrids or other models of passenger cars. 

The EU diesel car market shrank by 4.9% in January, with a decline of 23.4% in France, 10.2% in Spain, and 8.7% in Italy. 

However, Germany diverged from this trend with an increase of 4.3%. 

In January, diesel car registrations were 114,415 units, shrinking its market share to 13.4% from 15.8% in the month a year ago.

Europe Indexes and Yields

The DAX index decreased by 0.2% to 17,057.49, the CAC-40 index rose 0.3% to 7,792.92, and the FTSE 100 index inched higher by 0.04% to 7,731.61.

The yield on 10-year German bonds edged down to 2.37%; French bonds inched higher to 2.84%; the UK gilts edged lower to 4.05%; and Italian bonds inched higher to 3.86%.

The euro edged higher to $1.08, the British pound inched higher to $1.263, and the U.S. dollar gained to 88.06 Swiss cents.

Brent crude decreased $0.43 to $83.09 a barrel, and the Dutch TTF natural gas increased by €0.19 to €23.89 per MWh.

Europe Stock Movers

Barclays PLC increased 5.7% to 157.50 pence after the UK-based bank reported weak quarterly results. 

Total revenue in the fourth quarter declined 3% to £5.6 billion from £5.8 billion, and net income attributable to shareholders swung to a loss of £111 million from a profit of £1.04 billion a year ago. 

The financial services company also said it plans to return £10 billion to shareholders between 2024 and 2026 through stock buybacks and dividends. 

Fresenius Medical Care decreased 0.3% to €26.51 despite the Germany dialysis firm reporting stronger-than-expected fourth quarter results. 

Revenue in the fourth quarter was flat at €4.98 billion, net income advanced to €188 million from €139 million, and basic earnings per share jumped 35% to 64 cents from 47 cents a year ago. 

The company estimated 2024 revenue growth at "a low- to mid-single-digit percent rate" and operating income at a "mid- to high-teen percent rate" compared to a year ago, respectively. 

China Cuts 5-year Loan Rate to Revive Property Market, Asian Markets Drift Lower

Arjun Pandit
20 Feb, 2024
Mumbai

Asian markets traded down amid global interest rate worries and persistent weakness in Chinese markets amid growing tensions with the U.S. 

Market indexes in Tokyo, Shanghai, Hong Kong, Mumbai, and Seoul traded down after U.S. Treasury yields edged higher. 

Moreover, the latest rate cut by China failed to support market enthusiasm because investors are looking for stronger measures and long-term policy measures to support the property market and lift consumer sentiment. 

European markets closed down in lackluster trading in Monday's trading, and the U.S. financial markets were closed to celebrate President's Day. 

Market sentiment in Asian markets was cautious after U.S. Treasury yields spiked higher. 

Tokyo Stocks Drifted Lower Amid Weakness In Banks and Tech Stocks

The Nikkei index decreased 0.1% to 38,413.66, and the benchmark index traded just below a 34-year high as investors reassessed the possibility of a near-term rate cut. 

The Bank of Japan has been sending mixed signals, but most investors are hoping that the central bank is ready to end its ultra-loose monetary policy after the end of wage negotiations at large corporations over the next two months. 

Tech stocks were among the leading gainers, and Screen Holdings, Advantest, and Tokyo Electron gained between 0.5% and 4.0%. 

Banks were in focus for the second week in a row after investors scaled back bets on the end of ultra-loose monetary policy. 

Banks are likely to be big winners as interest rates rise, lifting the net interest rate margin. 

Mitsubishi UFJ, Sumitomo Mitsui Financial, and Mizuho Financial decreased between 0.5% and 1.5%. 

Three leading automobile exporters, Honda Motor, Toyota Motor, and Nissan, traded mixed after the yen rebounded to above 150 against the U.S. dollar. 

Fanuc and Yaskawa Electric jumped more than 3%. 

China Lowered Rates to Spur Property Market

China lowered its interest rate for the first time since June 2023, hoping that the lower rate may revive the moribund property market. 

The People's Bank of China lowered its 5-year loan prime rate by 25 basis points to 3.95%, the largest cut since the rate was introduced in 2019.

Just a few days ago, China held its one-year loan prime rate at 3.45%, and both one-year and 5-year rates are at record low levels. 

The CSI 300 index decreased 0.4% to 3,389.40, and the Hang Seng index dropped 0.1% to 16,134.47. 

China also offered about 160 billion yuan, or $22.2 billion, to local developers and supported the completion of housing projects, the state-controlled broadcaster CCTV reported Tuesday. 

Despite the record low interest rates, property market confidence remains weak due to worries about a lack of large stimulus from the government and long-term measures to revive market confidence. 

Longfor Group rose HK$9.03, China Vanke advanced 0.7% to $6.17, and China Resources Land decreased 2.8% to HK$24.15. 

Electric vehicle makers were among the leading decliners after BYD lowered prices on plug-in hybrid cars by 20% for its new models. 

The lower price by the industry leader is likely to spark another round of cuts by other players. 

BYD declined 3.8% to HK$179.30, Li Auto fell 1.4% to HK$123.0, and Geely Automobile Holdings dropped 2.2% to HK$7.92. 

FDI In China Eased Second Consecutive Year

Foreign direct investment in China declined for the second year in a row, the State Administration of Foreign Exchange reported Sunday. 

Rising tensions with the U.S. and the arbitrary spying charges on foreign companies by Chinese authorities have kept many from investing in China. Foreign direct investment dropped 80% from the previous year to $33 billion in 2023. 

The foreign direct investment declined for the second year and dropped to 10% of $344 in 2021. 

India Stocks Struggled to Advance After Mixed Earnings Season

Stocks in Mumbai traded lower, the bond yield edged higher, and the Indian rupee held firm in Tuesday's trading. 

The Sensex and the Nifty indexes traded down as investors reviewed the last batch of fiscal third quarter earnings results over the last week. 

The Sensex index decreased 73.10 points to 72,634.99, and the Nifty index fell 44.55 points to 22,077.70.

On the Mumbai stock exchange, 178 stocks traded at their 52-week highs and 2 stocks traded at their 52-week lows.

The yield on the 10-year Indian government bonds increased to 7.10%, and the Indian rupee strengthened to ₹83.10 against the U.S. dollar.

India Movers: Balrampur Chini, CIE Automotive, Morepen, NBCC, Oriental Rail Infra, PowerGrid

Arun Goswami
20 Feb, 2024
Mumbai

Stocks in Mumbai traded in a tight range after the end of the  earnings season last week, and bond yields held steady amid the weakness in markets in Europe and Asia. 

The Sensex index decreased 73.10 points to 72,634.99, and the Nifty index fell 44.55 points to 22,077.70.

On the Mumbai stock exchange, 178 stocks traded at their 52-week highs and 2 stocks traded at their 52-week lows.

Balrampur Chini Mills declined to ₹387.50, and the company said it plans to invest about ₹2,000 crore over the next 30 months in the manufacturing of ply lactic acid. 

CIE Automotive declined 1.7% to ₹475.05 despite the company swinging to a profit in its latest quarterly results. 

Net income in the December quarter swung to a profit of 169 crore from a loss of 658 crore a year ago. 

Oriental Rail Infrastructure rose 1.3% to ₹264.10 ahead of the company's board meeting on February 22. 

The board plans to review the allotment of 50.6 lakh shares and 75 lakh warrants convertible to shares at a price of 169 per share. 

Morepen Labs jumped 0.8% to ₹54.55, and the company board is scheduled to meet on February 22 to discuss various fund-raising plans. 

ESAF Small Finance Bank jumped 0.1% to ₹64.90, and the company board is scheduled to meet on February 23 to review a proposal to issue non-convertible debentures through private placement. 

NBCC advanced 1.1% to ₹142.95 after the company secured orders worth ₹3,690 crore. 

Whirlpool of India decreased 3% to ₹142.95 ahead of the company's parent Whirlpool's Corporation's sale of a stake in the company through a block trade. 

The company plans to sell 3.04 crore shares in a bock trade at a price of ₹1,230 crore per share today, according to a report. 

Power Grid Corporation rose 3.2% to ₹286.65 after the company's board approved the investment of 656 crore in two power projects. 

The Northern Region project is expected to be completed by November 2025 at a cost of 525 crore and the installation of a transformer at Bhiwani, Haryana by November 2025 at a cost of 141 crore.  

Europe Movers: Forvia, Nnit, Temenos

Inga Muller
19 Feb, 2024
Frankfurt

Benchmark indexes in Europe hovered below record highs, and bond yields edged higher ahead of the release of minutes of the latest policy meetings from the European Central Bank and the Federal Reserve. 

The DAX index increased by 0.4% to 17,056.02, the CAC-40 index fell 0.4% to 7,733.84, and the FTSE 100 index inched higher by 0.06% to 7,616.25.

The yield on 10-year German bonds edged up to 2.39%; French bonds inched higher to 2.82%; the UK gilts edged higher to 4.10%; and Italian bonds inched higher to 3.86%.

Forvia SE edged down 1.5% to €15.83 after the French automotive component maker reported quarterly results and estimated higher sales in 2024. 

Temenos soared 7.2% to CHF 64.94 and rebounded after the Swiss software company's stock plunged more than 20% in Friday's trading after U.S.-based activist investor Hindenburg Research said it was shorting the stock. 

Temenos is scheduled to release its financial statements after the close on Monday, and the company reiterated that its financial performance is in line with the preliminary results announced on January 19. 

Nnit AS rose 3% to kr. 107.0, and the Danish life science information technology company is scheduled to release its annual earnings after the close of its regular trading session. 

European Indexes Hover Below Record Highs, Bond Yields Advanced, Natural Gas Prices Drop to 8-month Low

Bridgette Randall
19 Feb, 2024
Frankfurt

 European markets retreated in Monday's trading from record high levels on Friday as investors debated the future rate path. 

Benchmark indexes in France and Germany traded down from record highs in Friday's trading amid a busy week of economic data releases and minutes of meetings from the European Central Bank and the Federal Reserve. 

In Europe, investors are looking ahead to the GDP update from Germany, manufacturing and service sector surveys, and the final inflation reading in the eurozone.

Moreover, international trade data from Switzerland and Spain is scheduled to be released this week.

European markets trading in Monday's trading is expected to be subdued, and financial markets in the U.S. are closed to celebrate President's Day. 

Closer to home, the annual rate of inflation in Sweden in January accelerated to 5.4% from a 22-month low of 4.4% in the previous month, Statistics Sweden reported Monday. 

Inflation picked up largely because of a surge in housing rents and higher mortgage and utility costs. 

Despite the weak macroeconomic backdrop in the eurozone, corporate earnings so far have been ahead of market expectations, driving benchmark indexes to record highs. 

Investors also welcomed the latest update from China, indicating that tourism spending during the weeklong Lunar New Year holiday surpassed the pre-pandemic 2019 level. 

Europe Indexes and Yields

The DAX index increased by 0.4% to 17,056.02, the CAC-40 index fell 0.4% to 7,733.84, and the FTSE 100 index inched higher by 0.06% to 7,616.25.

The yield on 10-year German bonds edged up to 2.39%; French bonds inched higher to 2.82%; the UK gilts edged higher to 4.10%; and Italian bonds inched higher to 3.86%.

The euro edged higher to $1.077, the British pound inched higher to $1.261, and the U.S. dollar gained to 88.07 Swiss cents.

Brent crude decreased $0.70 to $82.76 a barrel, and the Dutch TTF natural gas decreased by €0.60 to €24.22 per MWh.

The natural gas prices continued to drift lower after peaking on October 13 above €53 per MWh on elevated storage in Germany, France, and Italy and the resumption of supplies from Norway. 

European Union natural gas reserves are at a 13-year high of 65.4% for the current period, and with signs of near-term cold weather, demand for natural gas is expected to stay below normal for the next few weeks. 

Europe Stock Movers

Forvia SE edged down 1.5% to €15.83 after the French automotive component maker reported quarterly results and estimated higher sales in 2024. 

Temenos soared 7.2% to CHF 64.94 and rebounded after the Swiss software company's stock plunged more than 20% in Friday's trading after U.S.-based activist investor Hindenburg Research said it was shorting the stock. 

Temenos is scheduled to release its financial statements after the close on Monday, and the company reiterated that its financial performance is in line with the preliminary results announced on January 19. 

Nnit AS rose 3% to kr. 107.0, and the Danish life science information technology company is scheduled to release its annual earnings after the close of its regular trading session. 

China Holds Rates Steady, Shanghai Indexes Rebound, Japan Machinery Orders Advance

Arjun Pandit
19 Feb, 2024
Mumbai

In Asian markets, benchmark indexes in China advanced after investors returned from a week-long lunar new-year holiday, and the People's Bank of China held its one-year loan prime rate at 2.5%. 

The market indexes in Hong Kong and Seoul advanced, but the indexes in Tokyo, Taiwan, Sydney, and Singapore struggled to advance. 

The Nikkei and the Yen Trade Sideways in Tokyo 

The Nikkei 225 index declined 0.08% to 38,454.85, tracking losses in overnight trading in New York. 

On the economic front, core machine orders rose 2.7% to 838.8 billion yen from the previous month in December, the Cabinet Office said on Monday. 

On a yearly basis, core machine orders, which exclude orders for ships and electric power companies, decreased 0.7% after dropping 4.9% in the previous month. 

For the fourth quarter of 2023, orders were down 1.0% from the previous quarter and 2.5% from a year ago. 

Despite the high volatility in the data series, the monthly report provides insights into the capital spending plans in the upcoming six to nine months. 

The Cabinet Office forecasted orders to increase 4.6% in the first quarter from the fourth quarter but decline 0.2% from the previous year. 

Exporters, automakers, and electronics companies declined after the yen hovered just below the 150 level against the U.S. dollar. 

Mitsubishi Electric, Panasonic, and Sony declined between 0.3% and 1.1%, and Nintendo declined more than 5%. 

Mitusi & Company, Oriental Land, Isetan Mitsukoshi, JGC Holdings, Sumitomo Pharma, and Mercari advanced more than 2.5%. 

China Holds Rates, Shanghai, and Hong Kong Stocks Resume Slide 

The People's Bank of China held its rate steady while balancing pressure on the yuan and the need to support the flagging property market. 

The central bank held its one-year loan prime rate for the sixth month in a row. 

Just before the new-year holidays, the People's Bank of China cut the reserve ratio requirement for banks by 50 basis points, freeing up more capital for loans. 

Two weeks ago, a China-controlled sovereign fund also stepped up its purchase of leading stocks in Shanghai and Hong Kong. 

However, market sentiment has remained negative, with no end in sight for the property market's slump. 

Investors returned after the Lunar New Year holidays last week, but caution prevailed in Shanghai and Hong Kong trading. 

Market indexes opened higher in mainland trading as investors sought to catch up with last week's trading in Asia and around the world, but market mood turned cautious on the twin worries of the ongoing property market slump and persistent selling by foreign investors. 

The CSI 300 index increased 0.4% to 3,379.20, and the Hang Seng index declined 0.8% to 16,186.81. 

Alibaba Group, JD.com, Tencent, and Baidu decreased between 0.5% and 2.5%, amid weakness in the tech sector. 

Property sector stocks traded down and extended this year's losses. 

Longfor Group, China Vanke, China Resources Land, and Country Garden Holdings declined between 3% and 5%. 

China's Lunar New Year Holiday Travel Soared 

Domestic tourism appeared to be on the rebound of three years of decline during the latest Lunar New Year holiday last week, the Ministry of Culture and Tourism data released today suggested. 

Overall, domestic tourism jumped to 632.7 billion yuan, or $87.7 billion, an increase of 50% from the previous year's holiday period. 

The number of domestic trips increased 34.3% from a year ago and jumped 19% from the 2019 level, indicating pent-up demand for travel. 

The tourism revival provided a shot in the arm to overall consumer spending, as many retrenched from making large purchases amid the protracted housing market slump and weak job market. 

Overseas trips jumped to 6.83 million in the holiday period as tourists took advantage of visa-free travel to Singapore and Thailand, and Japan, Malaysia, and South Korea remained popular destinations. 

India Indexes Lack Direction In Lackluster Trading

Stocks in Mumbai opened higher, and bond yields and the rupee held firm in Monday's trading. 

The Sensex and the Nifty indexes edged up 0.1% in early trading, and mid-cap and large-cap stocks were among the early gainers. 

Market sentiment was positive as companies in the power and energy, engineering, transportation, automotive, and travel entertainment sectors reported better-than-expected earnings. 

With the end of the earning season last week, investors shifted their focus to upcoming economic releases and international markets. 

The Reserve Bank of India is scheduled to release its latest policy meeting minutes this week, and investors also reviewed the latest international trade data last week. 

India's current account deficit is likely to shrink further in the coming quarter amid the strong export performance of the service sector. 

Moreover, the latest policy meeting minutes are likely to shed more light on the future interest rate path as food price inflation continues to drive overall inflation higher. 

The Sensex index increased 94.80 points to 72,526.80, and the Nifty index rose 43.85 points to 22,082.35.

On the Mumbai stock exchange, 204 stocks traded at their 52-week highs and 4 stocks traded at their 52-week lows.

India Movers: Airtel, Bajaj Auto, Bharti Airtel, CRISIL, LIC, PB Fintech

Arun Goswami
18 Feb, 2024
Mumbai

Stocks in Mumbai lacked direction in Monday's trading, and benchmark indexes hovered near record highs after the end of the earnings season last week. 

The Sensex index increased 94.80 points to 72,526.80, and the Nifty index rose 43.85 points to 22,082.35.

On the Mumbai stock exchange, 204 stocks traded at their 52-week highs and 4 stocks traded at their 52-week lows.

Tata Motors, Mahindra & Mahindra, Maruti Suzuki, and Bajaj Auto advanced between 0.2% and 0.6% amid expectations of sustained demand growth for 2-wheeler vehicles and passenger cars. 

State Bank of India, ICICI Bank, Axis Bank, HDFC Bank, Union Bank, and Canara Bank eased between 0.2% and 1.1%. 

LIC rose 1.7% to ₹1,057.80 after the company received a tax refund of ₹21,740 crore from the income tax department on February 15. 

CRISIL jumped 6% to ₹4,988.0 after the rating agency reported better-than-expected quarterly results. 

After-tax income in the December quarter rose 33% to 210 crore from 158 crore a year ago. 

PB Fintech jumped 5% to ₹978.15 after the insurance regulator approved the company's license to be a composite insurance broker from a direct insurance broker. 

Bajaj Auto added 2.7% to ₹8,549.20, and the vehicle maker set February 29 as the record date for its stock buyback program.

Bharti Airtel increased 0.9% to ₹1,130.80, and reports suggest that the U.S.-based private equity group Carlyle is in talks with Blackstone to sell its 25% stake in the company's data center business, Nxtra Data. 

Sula Vineyards decreased 6.5% to ₹577.45, and Verlinvest plans to sell an 8.34% stake in the company in a block trade today. 

Tata Power increased 1.8% to ₹382.90 after the company received a letter of intent from REC Power Development to acquire Jalpur Khurja Power Transmission for ₹832 crore. 

Producer Prices Rise Fastest In Five Months In January

Brian Turner
16 Feb, 2024
New York City

Producer prices, a measure of wholesale price inflation, in January rose 0.3% from the previous month and advanced 0.9% from a year ago, the U.S. Bureau of Labor Statistics reported Friday. 

The latest bout of inflation was driven by a 0.6% rise in prices for services, but goods price inflation inched lower by 0.2%, a decline for the fourth month in a row, and was driven by a 3.6% fall in gasoline prices. 

A 2.2% increase in the price of hospital outpatient care was a major factor in the January rise in prices for final demand services. 

The cost of chemicals and allied products wholesaling, machinery and equipment wholesaling, portfolio management, traveler accommodation services, and legal services also moved higher. 

Core PPI, which excludes foods, energy, and trade services, rose 0.6% from the previous month in January, the largest advance since moving up 0.6% in the month a year ago. 

For the 12 months ended January 2024, core PPI increased by 2.6%. 

The second inflation report follows the hotter-than-expected consumer price inflation report earlier this week. 

Consumer price inflation in January eased to a 3.1% annual pace in January from 3.4% in December, the bureau reported on Tuesday. 

The 10-year Treasury yield jumped above 4.3% and the 2-year Treasury yield advanced above 4.7% after the release of producer price inflation data. 

S&P 500 Declined and Treasury Yields Advanced After Second Hot Inflation Report

Barry Adams
16 Feb, 2024
New York City

Benchmark indexes on Wall Street edged lower after the second inflation report showed persistent inflation and raised interest rate uncertainty. 

The S&P 500 index and the Nasdaq Composite lacked direction in early trading, and Treasury yields spiked after producer prices rose at a faster-than-expected pace in January. 

Producer prices, a measure of wholesale price inflation, in January rose 0.3% from the previous month and advanced 0.9% from a year ago, the U.S. Bureau of Labor Statistics reported Friday. 

The second inflation report follows the hotter-than-expected consumer price inflation report earlier this week. 

Consumer price inflation in January eased to a 3.1% annual pace in January from 3.4% in December, the bureau reported on Tuesday. 

The 10-year Treasury yield jumped above 4.3% and the 2-year Treasury yield advanced above 4.7% after the release of producer price inflation data. 

On the earnings front, investors reviewed results from Applied Materials, Coinbase, DoorDash, and Toast. 

U.S. indexes and yields

The S&P 500 index decreased 0.2% to 5,038.25, and the Nasdaq Composite rose 0.1% to 15,921.64. 

The yield on 2-year Treasury notes increased to 4.69%, 10-year Treasury notes inched up to 4.32%, and 30-year Treasury bonds edged down to 4.48%.

WTI crude oil decreased $0.27 to $77.83 a barrel, and natural gas prices increased 1 cent to $1.58 a thermal unit, a low last seen in September 2020.

Gold increased by $2.14 to $2,006.33 an ounce after the U.S. dollar gained in international trading.

The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 104.38.

U.S. Stock Movers

DoorDash declined 7.4% to $116.92 after the delivery company reported a wider-than-expected quarterly loss. 

Applied Materials soared 13.1% to $212.16 after the semiconductor equipment maker reported better-than-expected quarterly results.

Trade Desk jumped 17.6% to $89.50 after the digital advertising company reported better-than-expected quarterly sales and estimated a stronger-than-expected fiscal first quarter. 

Coinbase Global soared 14.5% to $189.25 after the crypto trading firm reported better-than-expected fourth-quarter results.

Toast soared 9% to $20.93 after the restaurant point-of-sale system developer reported fourth-quarter revenue of $1.04 billion and a net loss of 7 cents per share. 

U.S. Movers: Applied Materials, Coinbase, DoorDash, Trade Desk, Toast

Scott Peters
16 Feb, 2024
New York City

DoorDash declined 7.4% to $116.92 after the delivery company reported a wider-than-expected quarterly loss. 

Revenue in the fourth quarter increased 27% to $2.3 billion from $1.8 billion, net loss shrank to $154 million from $640 million, and diluted loss per share fell to 39 cents from $1.65 a year ago. 

Applied Materials soared 13.1% to $212.16 after the semiconductor equipment maker reported better-than-expected quarterly results.

Net revenue in the fiscal first quarter was flat at $6.7 billion, net income rose 18% to $2.0 billion from $1.7 billion, and diluted earnings per share increased 19% to $2.41 from $2.03 a year ago.  

Trade Desk jumped 17.6% to $89.50 after the digital advertising company reported better-than-expected quarterly sales and estimated a stronger-than-expected fiscal first quarter. 

Coinbase Global soared 14.5% to $189.25 after the crypto trading firm reported better-than-expected fourth-quarter results.

Revenue in the fourth quarter rose to $953.8 million from $$629.1 million, net income swung to a profit of $275.7 million from a loss of $557.8 million, and diluted earnings per share were $1.04 compared to ($2.46) a year ago. 

Toast soared 9% to $20.93 after the restaurant point-of-sale system developer reported fourth-quarter revenue of $1.04 billion and a net loss of 7 cents per share. 

Revenue in the fourth quarter increased 35% to $1.0 billion from $769 million, net loss shrank to $36 million from $99 million, and diluted loss per share fell to 7 cents from 19 cents a year ago.  

Europe Movers: Hella, Metso, NatWest Group, Segro, Swiss Re, Umicore, Volkswagen

Inga Muller
16 Feb, 2024
Frankfurt

European markets advanced in Friday's trading and extended weekly gains, bond yields held firm and the euro and the pound edged slightly lower. 

The DAX index increased by 0.8% to 17,176.04, the CAC-40 index rose 0.6% to 7,789.81, and the FTSE 100 index inched higher by 0.7% to 7,653.85.

The yield on 10-year German bonds edged up to 2.38%; French bonds inched higher to 2.85%; the UK gilts edged lower to 4.09%; and Italian bonds inched higher to 3.8%.

Swiss Re declined 2.2% to CHF 101.35 despite the reinsurance company reporting a sharply higher profit in 2023, driven by improvements in its property and casualty segments. 

Metso Oyj soared 11.7% to €10.66 after the Finnish mining company reported better-than-expected fourth-quarter earnings, and the company also guided an upbeat outlook. 

Volkswagen Group increased 0.9% to €120.24 after the German vehicle maker signed an agreement with India's Mahindra & Mahindra to supply key electric components for its electric vehicles. 

Segro plc increased 1% to 842.0 pence after the warehousing group narrowed its fiscal 2023 loss driven by rent growth and higher occupancy. 

Hella declined 0.9% to €80.70 despite the German automotive supplier reporting improved adjusted sales and operating income in fiscal 2023. 

NatWest Group soared 6% to 226.70 pence after the UK-based financial service group reported its best annual profit in 2023 since the financial crisis of 2007.

Umicore SA declined 2.2% to €20.50 after the Belgian mineral and battery company reported lower-than-expected sales and outlook. 

Earnings before taxes, interest, depreciation, and amortization declined 18% to €472 million due to lower metals prices and investment costs. 

European Markets Extend Weekly Gains, German Wholesale Prices Fall for 10th Month

Bridgette Randall
16 Feb, 2024
Frankfurt

Benchmark indexes in Europe extended weekly gains, and investors looked beyond interest rate uncertainty. 

Market indexes in Paris, Frankfurt, and London inched higher by 0.7% as investors focused on earnings growth and overlooked interest rate jitters. 

German Wholesale Prices Decline Extends to 10th Consecutive Month

Germany's wholesale prices declined in January from a year ago by 2.7%, the Federal Statistics Office reported Friday. 

The annual pace of wholesale prices declined for the tenth month in a row following the 7.2% decline in mineral oil prices and the 16.3% fall in chemical product prices. 

However, prices for fruits, vegetables, and potatoes rose 11.8%, beverages increased 6.5%, and sugar, confectionary, and baked goods rose 7.0%. 

On a monthly basis, wholesale prices rose by 0.1% in January, the first increase in four months. 

UK Retail Sales Rebounded In January 

UK retail sales rebounded more than expected in January, the Office for National Statistics reported Friday. 

Retail sales volume rebounded 3.4% from the previous month in January after dropping 3.3% in December. 

The sales rebound was the largest since April 2021, and sales rose in all categories except apparel stores. 

Food store sales rose 3.4%, and non-food store sales increased 3.0% in the month. 

Sales at household goods stores advanced 1.8%, mainly because of the rebound in sales at hardware stores, but sales at apparel stores declined 1.4%. 

On an annual basis, sales increased by 0.7%, the largest increase since March 2022. 

Europe Indexes and Yields

The DAX index increased by 0.8% to 17,176.04, the CAC-40 index rose 0.6% to 7,789.81, and the FTSE 100 index inched higher by 0.7% to 7,653.85.

The yield on 10-year German bonds edged up to 2.38%; French bonds inched higher to 2.85%; the UK gilts edged lower to 4.09%; and Italian bonds inched higher to 3.8%.

The euro edged lower to $1.076, the British pound inched higher to $1.258, and the U.S. dollar gained to 88.12 Swiss cents.

Brent crude decreased $0.81 to $82.06 a barrel, and the Dutch TTF natural gas rose by €0.11 to €25.08 per MWh.

Europe Stock Movers

Swiss Re declined 2.2% to CHF 101.35 despite the reinsurance company reporting a sharply higher profit in 2023, driven by improvements in its property and casualty segments. 

Metso Oyj soared 11.7% to €10.66 after the Finnish mining company reported better-than-expected fourth-quarter earnings, and the company also guided an upbeat outlook. 

Volkswagen Group increased 0.9% to €120.24 after the German vehicle maker signed an agreement with India's Mahindra & Mahindra to supply key electric components for its electric vehicles. 

Segro plc increased 1% to 842.0 pence after the warehousing group narrowed its fiscal 2023 loss driven by rent growth and higher occupancy. 

Hella declined 0.9% to €80.70 despite the German automotive supplier reporting improved adjusted sales and operating income in fiscal 2023. 

NatWest Group soared 6% to 226.70 pence after the UK-based financial service group reported its best annual profit in 2023 since the financial crisis of 2007.

Umicore SA declined 2.2% to €20.50 after the Belgian mineral and battery company reported lower-than-expected sales and outlook. 

Earnings before taxes, interest, depreciation, and amortization declined 18% to €472 million due to lower metals prices and investment costs. 

Nikkei Index Nears 34-year Record High, Bargain Hunters Return to Hong Kong

Arjun Pandit
16 Feb, 2024
Mumbai

Asian markets traded higher tracking gains in overnight trading in New York, and the Nikkei index in Japan soared 1.8% and inched closer to its all-time high of 38,957.44 in December 1989. 

In Tokyo, the Nikkei index added 1% to 38,555.28; in Hong Kong, the Hang Seng index rose 2.4% to 16,323.13; and in Seoul, the KOSPI index added 1.2% to 2,644.27. 

Nikkei In Tokyo Nears 1989 Record High 

Trading in Tokyo dominated Asian markets, and the Nikkei index advanced on the hope that the Bank of Japan will keep intact its ultra-loose monetary policy after Japan entered into a technical recession and slipped behind Germany as the fourth largest economy in the world. 

Tech stocks led the gainers in Tokyo after the S&P 500 index notched a new record high in overnight trading.

Tokyo Electron, Advantest, Screen Holdings, and Renesas Electronics gained between 0.5% and 5.5%. 

Rakuten Group soared 6.6% to ¥779.90 after the technology conglomerate and mobile phone service provider reported a smaller annual loss. 

Net loss in the year ending in December declined to ¥339.4 billion from ¥377.2 billion, and the company said it plans to skip its dividend for the first time in 23 years. 

The company said it plans to increase its mobile phone subscriber base to 8 million from 6.09 million at the end of 2023, the level needed to turn the division profitable. 

The technology conglomerate is struggling with its finances as ¥800 billion of bonds are maturing in 2024 and 2025, but the company plans to buy back bonds maturing in November using the $1.8 billion raised from the sale of a new bond maturing in February 2027. 

Hang Seng Index Advanced After Bargain Hunters Returned

The Hang Seng index in Hong Kong surged more than 2% and extended its weekly gain to 2.2% after bargain hunters returned to increase their holdings of tech companies. 

Alibaba Group, Baidu, Tencent, JD.com, and Meituan advanced between 0.2% and 4.5%. 

The Hang Seng Index Company, the benchmark index manager, is scheduled to release its quarterly review of constituents later, after the close of index revisions effective March 4. 

JD Logistics, Xpeng, and Kuaishou advanced on speculation that they will be included in the index starting next month. 

Financial markets in mainland China are scheduled to reopen on Monday after investors return from a week-long Lunar New Year holiday. 

India Stocks Extend Weekly Gains 

Stocks in Mumbai looked up in early trading, and investors reviewed the last batch of earnings results. 

The Sensex and the Nifty indexes advanced 0.2%, and construction, engineering, and transportation companies were in focus. 

Oil and gas producers were in focus after the government hiked its windfall tax on petroleum crude oil and diesel. 

The Sensex index increased 188.06 points to 72,238.44, and the Nifty index rose 67.30 points to 21,978.05.

For the week, the Sensex advanced 1.4% and the Nifty index rose 1.0%. 

On the Mumbai stock exchange, 162 stocks traded at their 52-week highs and 8 stocks traded at their 52-week lows.

The yield on the 10-year Indian government bonds held steady at 7.08%, and the Indian rupee strengthened to ₹83.01 against the U.S. dollar.

Philippines Awards Manila Airport Contract to SMC-led Consortium

GMR Airports lost its bid to develop and operate Manila, the Philippines main airport. 

The Philippines Transportation Department awarded the project to develop Ninoy Aquino International Airport to a San Miguel-led consortium. 

The SMC consortium, headed by tycoon Ramon Ang, offered the central government 82% of revenue if it won the airport project privatization deal. 

NAIA is ranked as the worst international airport worldwide, is one of the oldest airports in the Philippines, and has suffered from severe congestion and frequent power failures. 

India's Overall Trade Deficit Shrinks in January

Overall exports in January rose to $69.7 billion from $63.80 billion, and overall imports advanced to $70.5 billion from $67.6 billion, resulting in a decline in the overall deficit to $0.7 billion from $3.9 billion a year ago. 

Petroleum products, engineering goods, iron ore, electronic goods, drugs, and pharmaceuticals were the main drivers of merchandise exports in January. 

India's merchandise trade deficit increased to $17.5 billion in January from $16 billion in December, the Commerce Department said today. 

Exports rose 3% to $36.9 billion and imports advanced 4.2% to $54.4 billion, and falling commodity prices and weaker demand in Europe and the U.S. weighed on export shipments. 

Service exports rose 17% to $32.8 billion, and imports advanced 8.3% to $16.1 billion, resulting in a traded surplus of $16.8 billion. 

U.S. Averages Struggle to Advance, European Markets Closed Higher

Barry Adams
15 Feb, 2024
New York City

Stocks retained an upward bias but gains were muted after retail sales in January fell short of market  expectations. 

Benchmark indexes advanced for the second day in a row after falling sharply in Tuesday's trading following hotter-than-expected inflation in January. 

Investors reacted to the latest earnings from Cisco Systems, Tripadvisor, Twilio, Stellantis, and Shake Shack. 

Retail and Food Services Sales Declined In January

On the economic front, retail and food services sales declined in January from December, the Census Bureau announced Thursday. 

Preliminary retail and food services sales, adjusted for calendar and seasonal factors but not for prices, decreased 0.8% from the previous month but were up 0.6% from a year ago. 

December sales were revised lower to 0.4% from the previous estimate of 0.6%. 

Retail trade sales were down 1.1% from December 2023 and 0.2% below last year. 

Nonstore retailers were up 6.4% from last year, while food services and drinking places were up 6.3% from January 2023. 

Jobless Claims Edged Slightly Lower 

Seasonally adjusted initial jobless claims for the week ending on February 10 declined by 8,000 to 212,000 from the previous week's revised level. 

The previous week's level was revised up by 2,000 from 218,000 to 220,000. The 4-week moving average was 218,500, an increase of 5,750 from the previous week's revised average.

U.S. indexes and yields

The S&P 500 index increased 0.3% to 5,013.42, and the Nasdaq Composite fell 0.1% to 15,847.21. 

The yield on 2-year Treasury notes declined to 4.55%, 10-year Treasury notes decreased to 4.22%, and 30-year Treasury bonds edged down to 4.40%.

WTI crude oil increased $1.51 to $78.15 a barrel, and natural gas prices declined 3 cents to $1.57 a thermal unit, a low last seen in September 2020.

Gold increased by $10.78 to $2,003.05 an ounce after the U.S. dollar gained in international trading.

The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 104.38.

U.S. Stock Movers

Cisco Systems declined 4.1% to $48.20 after the company reported a decline in sales and earnings in the fiscal second quarter and also issued a weaker-than-expected current quarter sales and earnings outlook. 

Stellantis NV, the parent of Fiat and Chrysler, increased 5.1% to $25.64 after the automobile company announced its Є3 billion stock repurchase plan and hiked its annual dividend by 16% to Є1.55 per share. 

The company plans to increase shareholder return by 26% from a year ago to Є7.7 billion in 2024. 

Tripadvisor gained 4.9% to $26.56 after the travel information provider reported better-than-expected quarterly results. 

Twilio dropped 11.7% to $64.20 after the email delivery service provider estimated weaker-than-expected revenue in the fiscal fourth quarter. 

Apple declined 0.5% to $183.13 after Berkshire Hathaway trimmed several holdings in the fourth quarter, including Apple and HP, according to regulatory filings released on Wednesday. 

Earnings Drive European Markets Higher, EC Lowered GDP Growth Outlook 

European markets traded higher, and investors reviewed the latest batch of corporate results and comments from ECB president Christine Lagarde. 

Benchmark indexes in Paris, Frankfurt, and London advanced after upbeat earnings from Airbus, Commerzbank, Safran, Orange, Renault, and Stellantis. 

Restrictive interest rates and the impact of energy price shocks fade, and inflation in the eurozone is expected to moderate in 2024, ECB President Lagarde said to the committee of the European Parliament. 

Lagarde acknowledges that activities are subdued across a broad spectrum of the economy and labor market conditions are tight, but wage pressures are moderating and energy price inflation is also weakening. 

The European Commission lowered its economic growth outlook for the eurozone by 0.4 percentage points to 0.8%, citing broad weaknesses in activities. 

The commission said all member states are likely to expand in 2024, with Germany at 0.3%, France at 0.9%, and Italy at 0.7%. 

The inflation outlook for the Euro Area was lowered to 2.7% in 2024 and 2.2% in 2025 from 3.2% in 2023. 

The Eurozone merchandise trade balance swung to a surplus of €65.9 billion from a deficit of €332.2 billion in 2022. 

Exports in the year dropped 1.2% to €2.83 trillion and imports dropped 13.5% to €2.77 trillion from a year ago, respectively. 

The UK Economy Dips Into Recession 

The UK economy entered into a technical recession after GDP contracted 0.3% from the previous quarter in the fourth quarter, the Office for National Statistics reported Thursday. 

On an annual basis, the UK economy contracted 0.2% in the fourth quarter of 2023. 

The UK economy contracted in the fourth quarter amid broad weakness in household consumption, net international contribution, services, and industrial production. 

For the full-year 2023, GDP in the UK edged slightly higher by 0.1% after expanding by 4.3% in 2022 and 8.7% in 2021. 

The Bank of England forecasts the UK economy to expand by 0.25% in 2024 and 0.75% in 2025. 

Europe Indexes and Yields

The DAX index increased by 0.6% to 17,046.69, the CAC-40 index rose 0.9% to 7,743.42, and the FTSE 100 index inched higher by 0.4% to 7,597.53.

The yield on 10-year German bonds edged down to 2.31%; French bonds inched higher to 2.81%; the UK gilts edged lower to 4.02%; and Italian bonds inched higher to 3.83%.

The euro edged lower to $1.073, the British pound inched higher to $1.255, and the U.S. dollar gained to 88.32 Swiss cents.

Brent crude decreased $1.30 to $82.95 a barrel, and the Dutch TTF natural gas rose by €0.11 to €24.97 per MWh.

Europe Stock Movers

Commerzbank surged 3.8% to €10.88 after the German bank said it plans to return about one billion euros to shareholders after the company reported a 55% surge in its annual profit in 2023. 

The financial services company also reported fourth-quarter earnings that were ahead of market expectations. 

Schneider Electric gained 3% to €201.30 after the French company specializing in energy management lifted its dividend and estimated higher earnings and revenue in the current year. 

Renault SA jumped 6.6% to €40.19 after the French automaker and parent of Nissan returned to profitability in 2023 on the back of gains in sales and improvements in margins. 

Stellantis increased 4.3% to €23.61 after the parent company of Italian automaker Fiat announced its plan to buyback its own shares. 

Continental AG increased 0.8% to €76.72, and the German tiremaker announced its plans to eliminate 7,150 jobs worldwide by 2025. 

Yen Remains Under Pressure, Japan Stocks Dominate Asia Markets

Market indexes in Asia drifted sideways after Japan unexpectedly fell into a technical recession and Japan's economy slipped to fourth place, lagging the German economy by a small margin. 

The Nikkei index advanced 1% to 38,073.91, and the Topix index added 0.2% to 2,589.88. 

The yen traded above 150 against the U.S. dollar for the second day in a row this week and for the first time since November, prompting more verbal intervention from Japanese officials.

The yen has declined more than 6% against the U.S. dollar so far in 2024. 

Investors have been selling the Japanese yen on the worry that U.S. interest rates are likely to stay higher for longer after the release of the latest inflation data, expanding the yawning yield gap between Japanese government bonds and U.S. Treasury bonds. 

Renesas Electronics Corp. decreased 1.2% to ¥2,568.50 after the Japanese chip maker announced the acquisition of the Australian-listed software firm Altium for $5.9 billion. 

Japan Falls Behind Germany

Japan's economy unexpectedly shrank by 0.1% from the previous quarter in the fourth quarter of 2023. 

The GDP in the third quarter was revised to a contraction of 0.3%, the Cabinet Office reported Thursday. 

For the full year 2023, Japan's economy expanded 1.9% after rising 1.0% in 2022. 

The economy dipped into a recession after private consumption, which accounts for more than half of the economy, declined for the third quarter in a row on elevated costs. 

The weakness of government spending and capital expenditure overcame the net positive contribution from international trade. 

The GDP data from Japan is generally not that reliable and is subject to sharp revisions. Most likely, the GDP will be revised higher in the second estimate because the business conditions index is signaling rising activity. 

Japan's GDP slipped to the fourth largest in the world, trailing the U.S., China, and Germany. 

Nominal GDP of Japan in 2023 rose 5.7% to 591.48 trillion yen, or $4.3 trillion, based on the average exchange rate in 2023. 

Meanwhile, Germany's nominal GDP expanded 6.3% to €4.21 trillion, or $4.46 trillion, when calculated average exchange rate in 2023.   

China's GDP surpassed Japan's in 2010, and India's economy is forecasted to surpass the economies of Japan and Germany by as early as 2028. 

Hong Kong Stocks Face Persistent Downward Pressure

Investors remained hesitant about investing in Chinese stocks, and most regional investors are looking to trim holdings with any sign of a rebound, according to a survey published by Bank of America on February 13.  

The global bank conducted a survey of institutions managing about $313 billion between February 2 and 8. 

The Hang Seng index increased 0.4% to 15,947.63, and stocks advanced for the second day in a row in the hopes that Chinese government-controlled funds will step up buying. 

Market sentiment reversed in the afternoon session after indexes dropped as much as 0.6% in early trading. 

Alibaba Group, JD.com, Tencent, Baidu, and Meituan jumped between 0.1% and 3.0%. 

Property developers struggled in trading, and Longfor Group, China Vanke, and China Resources Land declined between 1% and 2.5%. 

Financial markets in mainland China are closed this week to celebrate the Lunar New Year. 

Chinese stocks have lost about $5 trillion in market capitalization over the three years to 2023, and indexes have extended losses by another 5% in 2024. 

India Stocks Lacked Direction In Volatile Trading

Stocks in Mumbai opened higher in early trading and extended the previous day's gains. 

The Sensex and the Nifty indexes advanced by 0.2% following the rebound in market indexes in overnight trading in New York and Europe after bond yields eased. 

The Sensex index increased 73.58 points to 71,891.62, and the Nifty index rose 32.35 points to 21,866.65.

On the Mumbai stock exchange, 124 stocks traded at their 52-week highs and 13 stocks traded at their 52-week lows.

India's Current Account Deficit to Moderate

India's current account deficit moderated after the service sector surplus rose at a healthy pace, the Reserve Bank of India reported on Wednesday. 

The service trade surplus in the fiscal third quarter ending in December rose 16% to $44.9 billion, helping the current account to shrink further. 

Service exports in the quarter rose 5.2% to $87.7 billion, and imports advanced 4.2% to $42.8 billion from a year ago, respectively. 

India's current account deficit in the fiscal first half ending in September moderated to 1.0% from 2.9% after the merchandise trade deficit shrank and the service sector surplus rose. 

The steady growth in service sector surpluses and foreign remittances has helped the country lower its current account deficit over the last decade.