Market Update
India Movers: Adani Enterprises, Hindustan Aeronautics, IRCTC, Puravankara
Arun Goswami
13 Sep, 2024
Mumbai
Benchmark indexes in Mumbai struggled in Friday's trading and trimmed weekly gains to 2% amid weak global market sentiment.
Industrial production accelerated slightly in July, and inflation in August held nearly steady, but elevated food prices are likely to persist in the months ahead.
The Sensex index decreased by 0.01% to 82,889.88, and the Nifty index edged down by 0.1% to 25,359.15.
On the Mumbai stock exchange, 126 stocks traded at their 52-week highs, and 13 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds inched lower to 6.81%, and the Indian rupee weakened to 83.92 against the U.S. dollar.
Adani Enterprises edged up 1.5% to ₹2,982.35, and the company clarified in a statement that it is not involved in any Swiss court proceedings.
The company released a statement following a report by the U.S.-based controversial short-seller Hindenburg Research stating that the Swiss authorities have frozen $310 million of the company's assets as part of a money laundering and securities forgery investigation, citing newly released Swiss criminal court proceedings.
Hindustan Aeronautics gained 0.8% to ₹4,634.05, and a report suggested that the central government is likely to upgrade the company status to Maharatna from Navratna, providing greater operational and financial flexibility to the management.
Puravankara added 5% to ₹456.95, and the company acquired redevelopment rights for a luxury apartment complex in South Mumbai.
The company plans to redevelop Miami Apartments in the Breach Candy area and also signed a joint development agreement for a land parcel in Electronic City of Bengaluru.
Indian Railway Catering and Tourism Corporation inched higher by 0.5% to ₹936.05, and the Life Insurance Corporation of India increased its stake in the company to 9.3% from 7.28%.
U.S. Investors Keep Rate-cut Hopes Alive After Second Inflation Report, ECB Lowers Rates
Alexander Garcia
12 Sep, 2024
Miami
Investors returned to search for tech bargains for the second day in a row and reviewed the latest update on producer price inflation and weekly unemployment claims.
Market indexes have been treading water as investors debated the future rate path and the appropriate size of the rate cut.
The S&P 500 index inched up a fraction, and the Nasdaq Composite advanced 0.3%.
Producer price inflation, a measure of wholesale inflation, advanced 0.2% from the previous month in August, the U.S. Bureau of Labor Statistics reported Thursday.
The rebound in services inflation contributed to the rise from the downwardly revised flat reading in July.
On an annual basis, producer price inflation slowed for the second consecutive month to 1.7% from 2.1% in July.
On Wednesday, investors reviewed that August's consumer price inflation slowed to 2.5%, but the core rate of inflation held steady at 2.8%, highlighting well-entrenched service inflation in the broader economy.
After the release of two inflations, investors dialed down aggressive rate cut expectations of as much as 50% but still held out for a 25 basis rate cut at the end of the two-day meeting on September 18.
Separately, the European Central Bank lowered its key lending rate by 25 basis points for the second time since June, but cited elevated wage pressures as contributing to inflationary pressures.
Initial jobless claims inched higher and stayed well above the weekly average seen earlier in the year.
Initial jobless claims increased 2,000 from the previous week to 230,000 in the week ending September 7.
Meanwhile, continuing claims, which lag initial claims by one week, rose 5,000 to 1.85 million.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.03% to 5,559.32, the Nasdaq Composite rose 0.3% to 17,448.04, and the Russell 2000 index rose 0.8% to 2,120.85.
The yield on 2-year Treasury notes edged higher to 3.67%, 10-year Treasury notes inched up to 3.67%, and 30-year Treasury bonds inched lower to 3.98%.
WTI crude oil increased $2.15 to $69.74 a barrel, and natural gas prices edged up 8 cents to $2.35 a thermal unit.
Gold rose by $34.52 to $2,546.33 an ounce, and silver increased by $0.98 to $29.65.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 101.54.
U.S. Stock Movers
Alaska Air Group declined 0.3% to $39.37, and the regional airline lifted its third quarter profit outlook citing strong demand in the summer travel season.
The company estimated earnings per share to range between $2.15 and $2.25, compared to its previous estimate between $1.40 and $1.60.
Oxford Industries dropped 3.3% to $80.95 after the parent company of retailer Tommy Bahama reported weaker-than-expected quarterly results.
Revenue in the quarter edged slightly lower to $419.9 million from $420.1 million, net income dropped to $40.6 million from $51.4 million, and diluted earnings per share eased to $2.57 from $3.22 a year earlier.
The company declared a cash dividend of 67 cents per share, an increase from 65 cents a year ago.
The company also tightened its fiscal year revenue to range between $1.51 billion and $1.54 billion, compared to $1.57 billion in the fiscal year 2023.
The retailer also estimated GAAP earnings per share in the current fiscal year to range between $6.28 and $6.58, compared to $3.82 in the previous fiscal year.
Moderna plunged 18.1% to $65.11 after the drug company announced its plans to slash its expenses by $1.1 billion by 2027.
The biotech company said it is shifting its priorities after the COVID-19 pandemic and deprioritizing certain drugs, but still anticipates the release of 10 new drugs over the next three years.
European Markets Advanced 1% as the ECB Delivered Expected Rate Cut
European markets rebounded and erased previous two sessions' losses after the European Central Bank cut rate for the second time in three months as inflation cools.
Benchmark indexes in Paris, London, and Frankfurt gained around 1%, and investors reviewed the release of monetary policy decisions and economic projections from the European Central Bank.
The European Central Bank lowered its key lending rates by 25 basis points, as widely anticipated.
The governing council lowered its rates for the second time after lowering rates in June, reflecting the weakening inflation in the currency union.
The main refinancing rate is now fixed at 3.65%, the deposit facility rate at 3.5%, and the marginal lending facility rate at 3.9%.
"The Governing Council today decided to lower the deposit facility rate—the rate through which it steers the monetary policy stance—by 25 basis points.
Based on the Governing Council’s updated assessment of the inflation outlook, the dynamics of underlying inflation, and the strength of monetary policy transmission, it is now appropriate to take another step in moderating the degree of monetary policy restriction," according to the statement from the ECB.
Inflation in the currency union has declined over the last nine months, but the core rate of inflation is still well above the central bank's target rate of 2%.
Moreover, the service sector inflation, still near 3%, has become one of the key drivers of inflation in the currency union and failed to budge over the last few months.
ECB staff projected average inflation at 2.5% in 2024, 2.2% in 2025, and 1.9% in 2026, matching the rates estimated in June.
Core inflation estimates for 2024 and 2025 have been revised slightly higher, reflecting stronger-than-expected service inflation.
Core inflation is now expected to slow from 2.9% to 2.3% in 2025 and 2.0% in 2026.
Europe Indexes and Yields
The DAX index increased by 1.0% to 18,507.64; the CAC-40 index rose by 0.5% to 7,435.07; and the FTSE 100 index rose by 0.6% to 8,240.97.
The yield on 10-year German bonds edged lower to 2.12%, French bonds inched lower to 2.82%, the UK gilts edged down to 3.78%, and Italian bonds increased to 3.53%.
The euro edged down to $1.10; the British pound inched higher to $1.30; and the U.S. dollar gained to 85.40 Swiss cents.
Brent crude increased $1.92 to $72.53 a barrel, and the Dutch TTF natural gas fell by €0.90 to €35.25 per MWh.
Europe Stock Movers
Technology stocks soared in Thursday's trading following a rally in the sector in overnight trading in New York, which also lifted tech-heavy markets in Asia.
ASML jumped 4.3% to €727.80, BE Semiconductor gained 5.3% to €113.20, Infineon Technologies increased 2.9% to €29.72, and STMicroelectronics inched higher 1.2% to €25.75.
Roche Holding declined 2.9% to CHF 261.30 on reports that the Swiss drugmaker's early-stage trial for an obesity drug showed a high rate of temporary side effects.
Santhera Pharmaceuticals decreased 5.2% to CHF 9.22 after the Swiss drug maker posted a first-half loss of CHF 15.3 million.
Nordex SE advanced 1.5% to €14.31 after the German windmill maker won an order from the Danish renewable energy company Orsted for its 43 MW Farranrory windfarm in Ireland.
Banks in London edged higher after the Bank of England, bowing to pressure from local banks, delayed and watered down its banking capital requirement proposal for the second time in less than a year.
Barclays PLC increased 2.1% to 219.80 pence, HSBC Holdings jumped 1.8% to 660.70 pence, Lloyds Banking increased 1.1% to 58.08 pence, and Standard Chartered 765.60 pence.
The Bank of England delayed its increase in tier-1 capital by less than one percentage point to January 2030, down from its previous announcement of three percentage points in December and six percentage points in the earlier directive.
IG Group Holdings plc increased 8% to 967.50 pence, and the online trading firm reported an increase in revenue in its fiscal first quarter.
Trainline PLC jumped 8.7% to 326.40 pence after the online rail ticketing app reported strong first-half results and lifted its annual profit estimate.
Nikkei 225 Soared 3%, Japan's Producer Price Inflation Slowed In August
Japan stocks rebounded and reversed losses in the previous two sessions, and investors reviewed the latest update on inflation and sentiment among large manufacturing companies.
The Nikkei 225 stock average soared more than 3%, and the broader Topix index advanced more than 2% in Thursday's trading, and the yen edged higher to 142.73 against the U.S. dollar.
Producer price index inflation slowed to 2.5% in August from 3.0% in the prior month, the Bank of Japan reported on Thursday.
Producer inflation slowed to the lowest pace since May after the 4% decline in petroleum and coal prices overshadowed a 2.1% increase in food and beverages and a 2.5% rise in electrical machinery.
On a monthly basis, producer price inflation declined 0.2%, its first decline in ten months, indicating a stronger yen and a weaker price of imported petroleum products.
Moreover, sentiment among large Japanese companies jumped 4.5% in the third quarter from a 1% decline in the second quarter, the Cabinet Office reported on Thursday.
The index turned positive for the first time in three quarters despite the Bank of Japan raising rates and signaling possible additional rate hikes in the year.
Market sentiment was also boosted after the crude oil prices traded around a three-year low of $66 a barrel in New York.
Japan imports more than 99% of its crude oil from the Middle Eastern nations, including Saudi Arabia and the United Arab Emirates, and the lower cost of oil weakens domestic inflation.
Investors are also looking forward to the release of monetary policy decisions and economic projections from the European Central Bank later today.
Japan Stock Movers
The Nikkei 225 stock average jumped 3.4% to 36,838.83, and the Topix index advanced 2.4% to 2,591.88.
Tech stocks rebounded sharply, tracking gains in overnight trading in New York.
Softbank jumped 7.6% to ¥8,476.0, Tokyo Electron advanced 4.5% to ¥23,220.0, Advantest Corp. soared 9% to ¥6,283.0, and Screen Holdings added 3.1% to ¥9,949.0.
Industrial machinery and equipment makers jumped more than 5% after the sentiment among large manufacturing companies improved in the third quarter.
Ebara soared 11% to ¥1,901.0, IHI Corp added 9.7% to ¥6,691.0, Kawasaki Heavy Industries jumped 5.6% to ¥4,572.0, and Omron gained 4.8% to ¥6,001.0.
Retailers were in focus after producer price inflation weakened in August.
Seven & I Holdings added 3.7% to ¥2,198.0, Isetan Mitsukoshi increased 1.2% to ¥2,170.0, Aeon Co. Ltd. gained 2.2% to ¥3,906.0, and Fast Retailing jumped 3.6% to ¥44,470.0.
Energy importers and distributors were in focus after crude oil prices hovered near three-year lows amid expectations of lower prices in the fourth quarter.
Eneos Holdings gained 2.3% to ¥738.10, Idemitsu Kosan increased 1.3% to ¥983.20, and Cosmo Energy advanced 3.2% to ¥7,375.0.
Alibaba Leads Hong Kong Stock Rebound, Mainland Indexes Struggle
Hong Kong stocks advanced and Shanghai stocks turned lower amid heightened market volatility in China.
The Hang Seng index jumped 1% on the expectations of a rate cut in Europe later today and in the U.S. next week, but the CSI 300 index struggled amid weak investor sentiment.
The Hang Seng index nearly erased August's 4% advance this month amid worries of an economic slowdown in the U.S.
However, market indexes rebounded in Thursday's trading as investors shifted their focus to monetary policy decisions from the European Central Bank and the U.S. Federal Reserve.
Moreover, crude oil prices hovered around a three-year low of $66 a barrel in New York, amid demand growth worries in China and the U.S.
The accelerated structural shift to renewable energy and faster adoption of electric vehicles in China is likely to curtail future demand for crude oil.
Moreover, China's rapid growth in exports of solar panels, windmills, and electric vehicles to the ASEAN region, Russia, Central Asia, and the rest of the world is also likely to negatively impact global crude oil demand.
Investors remained cautious as the domestic consumer demand remained weak in China amid job market uncertainties and a protracted property market slump.
Moreover, China's leadership has shifted its focus from supporting economic growth to investing in military technologies and modernizing its defense capabilities.
China Stock Movers
The Hang Seng index rebounded 1% to 17,274.72, and the CSI 300 index decreased 0.2% to 3,181.57.
Energy stocks were in focus for the second day in a row after Hurricane Francine made landfall in Louisiana, halting oil refinery operations and crude oil explorations in the Gulf of Mexico.
PetroChina declined 1% to HK $5.55, China Petroleum and Chemical fell 1% to HK $4.24, and CNOOC increased 0.1% to HK $18.0.
In Hong Kong, property developers were in focus ahead of the widely expected rate cut in the U.S. next week.
China Vanke increased 1.3% to HK $3.89, Longfor Holdings Group added 0.6% to HK $7.72, China Overseas Land declined 1.2% to HK $10.96, and Sun Hung Kai advanced 1.4% to HK $77.40.
Following the gains in overnight trading in New York, technology stocks advanced in Hong Kong but struggled in Shanghai and Shenzhen.
Alibaba Group edged up 1.1% to HK $83.50 as mainland investors snapped up HK11.6 billion worth of the company's stock on the first day of trading on the Stock Connect.
Tencent Holdings added 1.2% to HK $374.60, Baidu jumped 2.2% to HK $82.25, and Meituan advanced 4% to HK $124.20.
U.S. Movers: Alaska Air Group, Moderna, Oxford Industries
Scott Peters
12 Sep, 2024
New York City
Alaska Air Group declined 0.3% to $39.37, and the regional airline lifted its third quarter profit outlook citing strong demand in the summer travel season.
The company estimated earnings per share to range between $2.15 and $2.25, compared to its previous estimate between $1.40 and $1.60.
Oxford Industries dropped 3.3% to $80.95 after the parent company of retailer Tommy Bahama reported weaker-than-expected quarterly results.
Revenue in the quarter edged slightly lower to $419.9 million from $420.1 million, net income dropped to $40.6 million from $51.4 million, and diluted earnings per share eased to $2.57 from $3.22 a year earlier.
The company declared a cash dividend of 67 cents per share, an increase from 65 cents a year ago.
The company also tightened its fiscal year revenue to range between $1.51 billion and $1.54 billion, compared to $1.57 billion in the fiscal year 2023.
The retailer also estimated GAAP earnings per share in the current fiscal year to range between $6.28 and $6.58, compared to $3.82 in the previous fiscal year.
Moderna plunged 18.1% to $65.11 after the drug company announced its plans to slash its expenses by $1.1 billion by 2027.
The biotech company said it is shifting its priorities after the COVID-19 pandemic and deprioritizing certain drugs, but still anticipates the release of 10 new drugs over the next three years.
Nvidia rose 2.4% to $119.67, and the company's chief executive said at a conference organized by Goldman Sachs that the demand for its advanced AI chip Blackwell is strong.
CEO Jensen Huang said that the company will start selling the chip in the fourth quarter and scale it in the quarter and into the next year.
U.S. Major Averages Advance After PPI Inflation Slows In August
Barry Adams
12 Sep, 2024
New York City
U.S. stocks advanced, and tech stocks continued to lead gainers for the second day in a row on Wall Street.
The S&P 500 index inched up 0.01%, and the Nasdaq Composite advanced 0.2%.
Producer price inflation, a measure of wholesale inflation, advanced 0.2% from the previous month in August, the U.S. Bureau of Labor Statistics reported Thursday.
The rebound in services inflation contributed to the rise from the downwardly revised flat reading in July.
On an annual basis, producer price inflation slowed for the second consecutive month to 1.7% from 2.1% in July.
On Wednesday, investors reviewed that August's consumer price inflation slowed to 2.5%, but the core rate of inflation held steady at 2.8%, highlighting well-entrenched service inflation in the broader economy.
After the release of two inflations, investors dialed down aggressive rate cut expectations of as much as 50% but still held out for a 25 basis rate cut at the end of the two-day meeting on September 18.
Separately, the European Central Bank lowered its key lending rate by 25 basis points for the second time since June, but cited elevated wage pressures as contributing to inflationary pressures.
Initial jobless claims inched higher and stayed well above the weekly average seen earlier in the year.
Initial jobless claims increased 2,000 from the previous week to 230,000 in the week ending September 7.
Meanwhile, continuing claims, which lag initial claims by one week, rose 5,000 to 1.85 million.
U.S. Indexes and Treasury Yields
The S&P 500 index decreased 0.3% to 5,486.63, the Nasdaq Composite eased 0.4% to 16,960.21, and the Russell 2000 index fell 0.1% to 2,095.90.
The yield on 2-year Treasury notes edged higher to 3.67%, 10-year Treasury notes inched up to 3.67%, and 30-year Treasury bonds inched lower to 3.98%.
WTI crude oil increased $0.92 to $68.22 a barrel, and natural gas prices edged up 1 cent to $2.22 a thermal unit.
Gold rose by $9.06 to $2,520.92 an ounce, and silver increased by $0.13 to $28.80.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 101.73.
U.S. Stock Movers
Alaska Air Group declined 0.3% to $39.37, and the regional airline lifted its third quarter profit outlook citing strong demand in the summer travel season.
The company estimated earnings per share to range between $2.15 and $2.25, compared to its previous estimate between $1.40 and $1.60.
Oxford Industries dropped 3.3% to $80.95 after the parent company of retailer Tommy Bahama reported weaker-than-expected quarterly results.
Revenue in the quarter edged slightly lower to $419.9 million from $420.1 million, net income dropped to $40.6 million from $51.4 million, and diluted earnings per share eased to $2.57 from $3.22 a year earlier.
The company declared a cash dividend of 67 cents per share, an increase from 65 cents a year ago.
The company also tightened its fiscal year revenue to range between $1.51 billion and $1.54 billion, compared to $1.57 billion in the fiscal year 2023.
The retailer also estimated GAAP earnings per share in the current fiscal year to range between $6.28 and $6.58, compared to $3.82 in the previous fiscal year.
Moderna plunged 18.1% to $65.11 after the drug company announced its plans to slash its expenses by $1.1 billion by 2027.
The biotech company said it is shifting its priorities after the COVID-19 pandemic and deprioritizing certain drugs, but still anticipates the release of 10 new drugs over the next three years.
ECB Lowers Rates Second Time as Inflation Slows
Inga Muller
12 Sep, 2024
Frankfurt
The European Central Bank lowered its key lending rates by 25 basis points, as widely anticipated.
The governing council lowered its rates for the second time after lowering rates in June, reflecting the weakening inflation in the currency union.
The main refinancing rate is now fixed at 3.65%, the deposit facility rate at 3.5%, and the marginal lending facility rate at 3.9%.
"The Governing Council today decided to lower the deposit facility rate—the rate through which it steers the monetary policy stance—by 25 basis points.
Based on the Governing Council’s updated assessment of the inflation outlook, the dynamics of underlying inflation, and the strength of monetary policy transmission, it is now appropriate to take another step in moderating the degree of monetary policy restriction," according to the statement from the ECB.
Banks pay the main refinancing rate to the European Central Bank when they borrow for one week, while the deposit facility rate is paid to the bank when they make an overnight deposit to the Eurosystem.
The marginal facility rate is the interest rate paid by banks when they seek overnight credit from the Eurosystem.
ECB staff projected average inflation at 2.5% in 2024, 2.2% in 2025, and 1.9% in 2026, matching the rates estimated in June.
Core inflation estimates for 2024 and 2025 have been revised slightly higher, reflecting stronger-than-expected service inflation.
Core inflation is now expected to slow from 2.9% to 2.3% in 2025 and 2.0% in 2026.
ECB staff also slightly revised lower its estimate of GDP growth over the next three years, reflecting tight financing conditions and weak consumer demand.
GDP growth in 2024 is expected at 0.8% in 2024, but will increase to 1.3% in 2025 and further improve to 1.5% in 2026.
Europe Movers: IG Group Nordex, Roche, Santhera Pharma, Trainline, Tech Stocks, UK Banks
Inga Muller
12 Sep, 2024
Frankfurt
European markets jumped around 1% ahead of the widely anticipated rate cut from the European Central Bank.
The Bank of England watered down and delayed its banking overhaul for the second time in a year.
The DAX index increased by 1.2% to 18,556.29; the CAC-40 index rose by 0.9% to 7,461.77; and the FTSE 100 index rose by 0.8% to 8,256.42.
The yield on 10-year German bonds edged lower to 2.12%, French bonds inched lower to 2.82%, the UK gilts edged down to 3.78%, and Italian bonds increased to 3.53%.
Technology stocks soared in Thursday's trading following a rally in the sector in overnight trading in New York, which also lifted tech-heavy markets in Asia.
ASML jumped 4.3% to €727.80, BE Semiconductor gained 5.3% to €113.20, Infineon Technologies increased 2.9% to €29.72, and STMicroelectronics inched higher 1.2% to €25.75.
Roche Holding declined 2.9% to CHF 261.30 on reports that the Swiss drugmaker's early-stage trial for an obesity drug showed a high rate of temporary side effects.
Santhera Pharmaceuticals decreased 5.2% to CHF 9.22 after the Swiss drug maker posted a first-half loss of CHF 15.3 million.
Nordex SE advanced 1.5% to €14.31 after the German windmill maker won an order from the Danish renewable energy company Orsted for its 43 MW Farranrory windfarm in Ireland.
Banks in London edged higher after the Bank of England, bowing to pressure from local banks, delayed and watered down its banking capital requirement proposal for the second time in less than a year.
Barclays PLC increased 2.1% to 219.80 pence, HSBC Holdings jumped 1.8% to 660.70 pence, Lloyds Banking increased 1.1% to 58.08 pence, and Standard Chartered 765.60 pence.
The Bank of England delayed its increase in tier-1 capital by less than one percentage point to January 2030, down from its previous announcement of three percentage points in December and six percentage points in the earlier directive.
IG Group Holdings plc increased 8% to 967.50 pence, and the online trading firm reported an increase in revenue in its fiscal first quarter.
Trainline PLC jumped 8.7% to 326.40 pence after the online rail ticketing app reported strong first-half results and lifted its annual profit estimate.
European Markets Jumped 1% Ahead of Widely Anticipated Rate Cut
Bridgette Randall
12 Sep, 2024
London
European markets rebounded and erased previous two sessions' losses ahead of the widely anticipated interest rate cuts later in the day.
Benchmark indexes in Paris, London, and Frankfurt gained around 1%, and investors awaited the release of monetary policy decisions and economic projections from the European Central Bank.
Investors also looked ahead to comments from ECB President Christine Lagarde to gain insights into the rate path and possible additional rate cuts later in the year.
ECB President Lagarde is scheduled to deliver her comments at 2:45 p.m. Frankfurt time, which could sway trading as the session progresses.
Inflation in the currency union has declined over the last nine months, but the core rate of inflation is still well above the central bank's target rate of 2%.
Moreover, the service sector inflation, still above 3%, has become one of the key drivers of inflation in the currency union and failed to budge over the last few months.
Europe Indexes and Yields
The DAX index increased by 1.2% to 18,556.29; the CAC-40 index rose by 0.9% to 7,461.77; and the FTSE 100 index rose by 0.8% to 8,256.42.
The yield on 10-year German bonds edged lower to 2.12%, French bonds inched lower to 2.82%, the UK gilts edged down to 3.78%, and Italian bonds increased to 3.53%.
The euro edged down to $1.10; the British pound inched higher to $1.30; and the U.S. dollar gained to 85.40 Swiss cents.
Brent crude increased $1.06 to $71.67 a barrel, and the Dutch TTF natural gas fell by €0.62 to €35.54 per MWh.
Europe Stock Movers
Technology stocks soared in Thursday's trading following a rally in the sector in overnight trading in New York, which also lifted tech-heavy markets in Asia.
ASML jumped 4.3% to €727.80, BE Semiconductor gained 5.3% to €113.20, Infineon Technologies increased 2.9% to €29.72, and STMicroelectronics inched higher 1.2% to €25.75.
Roche Holding declined 2.9% to CHF 261.30 on reports that the Swiss drugmaker's early-stage trial for an obesity drug showed a high rate of temporary side effects.
Santhera Pharmaceuticals decreased 5.2% to CHF 9.22 after the Swiss drug maker posted a first-half loss of CHF 15.3 million.
Nordex SE advanced 1.5% to €14.31 after the German windmill maker won an order from the Danish renewable energy company Orsted for its 43 MW Farranrory windfarm in Ireland.
Banks in London edged higher after the Bank of England, bowing to pressure from local banks, delayed and watered down its banking capital requirement proposal for the second time in less than a year.
Barclays PLC increased 2.1% to 219.80 pence, HSBC Holdings jumped 1.8% to 660.70 pence, Lloyds Banking increased 1.1% to 58.08 pence, and Standard Chartered 765.60 pence.
The Bank of England delayed its increase in tier-1 capital by less than one percentage point to January 2030, down from its previous announcement of three percentage points in December and six percentage points in the earlier directive.
IG Group Holdings plc increased 8% to 967.50 pence, and the online trading firm reported an increase in revenue in its fiscal first quarter.
Trainline PLC jumped 8.7% to 326.40 pence after the online rail ticketing app reported strong first-half results and lifted its annual profit estimate.
Nikkei 225 Soared 3%, Japan's Producer Price Inflation Slowed In August
Akira Ito
12 Sep, 2024
Tokyo
Japan stocks rebounded and reversed losses in the previous two sessions, and investors reviewed the latest update on inflation and sentiment among large manufacturing companies.
The Nikkei 225 stock average soared more than 3%, and the broader Topix index advanced more than 2% in Thursday's trading, and the yen edged higher to 142.73 against the U.S. dollar.
Producer price index inflation slowed to 2.5% in August from 3.0% in the prior month, the Bank of Japan reported on Thursday.
Producer inflation eased to the slowest pace since May after the 4% decline in petroleum and coal prices overshadowed a 2.1% increase in food and beverages and a 2.5% rise in electrical machinery.
On a monthly basis, producer price inflation declined 0.2%, its first decline in ten months, indicating a stronger yen and a weaker price of imported petroleum products.
Moreover, sentiment among large Japanese companies jumped 4.5% in the third quarter from a 1% decline in the second quarter, the Cabinet Office reported on Thursday.
The index turned positive for the first time in three quarters despite the Bank of Japan raising rates and signaling possible additional rate hikes in the year.
Market sentiment was also boosted after the crude oil prices traded around a three-year low of $66 a barrel in New York.
Japan imports more than 99% of its crude oil from the Middle Eastern nations, including Saudi Arabia and the United Arab Emirates, and the lower cost of oil weakens domestic inflation.
Investors are also looking forward to the release of monetary policy decisions and economic projections from the European Central Bank later today.
Japan Stock Movers
The Nikkei 225 stock average jumped 3.4% to 36,838.83, and the Topix index advanced 2.4% to 2,591.88.
Tech stocks rebounded sharply, tracking gains in overnight trading in New York.
Softbank jumped 7.6% to ¥8,476.0, Tokyo Electron advanced 4.5% to ¥23,220.0, Advantest Corp. soared 9% to ¥6,283.0, and Screen Holdings added 3.1% to ¥9,949.0.
Industrial machinery and equipment makers jumped more than 5% after the sentiment among large manufacturing companies improved in the third quarter.
Ebara soared 11% to ¥1,901.0, IHI Corp added 9.7% to ¥6,691.0, Kawasaki Heavy Industries jumped 5.6% to ¥4,572.0, and Omron gained 4.8% to ¥6,001.0.
Retailers were in focus after producer price inflation weakened in August.
Seven & I Holdings added 3.7% to ¥2,198.0, Isetan Mitsukoshi increased 1.2% to ¥2,170.0, Aeon Co. Ltd. gained 2.2% to ¥3,906.0, and Fast Retailing jumped 3.6% to ¥44,470.0.
Energy importers and distributors were in focus after crude oil prices hovered near three-year lows amid expectations of lower prices in the fourth quarter.
Eneos Holdings gained 2.3% to ¥738.10, Idemitsu Kosan increased 1.3% to ¥983.20, and Cosmo Energy advanced 3.2% to ¥7,375.0.
Alibaba Leads Hong Kong Stock Rebound, Mainland Indexes Struggle
Li Chen
12 Sep, 2024
Hong Kong
Hong Kong stocks advanced and Shanghai stocks turned lower amid heightened market volatility in China.
The Hang Seng index jumped 1% on the expectations of a rate cut in Europe later today and in the U.S. next week, but the CSI 300 index struggled amid weak investor sentiment.
The Hang Seng index nearly erased August's 4% advance this month amid worries of an economic slowdown in the U.S.
However, market indexes rebounded in Thursday's trading as investors shifted their focus to monetary policy decisions from the European Central Bank and the U.S. Federal Reserve.
Moreover, crude oil prices hovered around a three-year low of $66 a barrel in New York, amid demand growth worries in China and the U.S.
The accelerated structural shift to renewable energy and faster adoption of electric vehicles in China is likely to curtail future demand for crude oil.
Moreover, China's rapid growth in exports of solar panels, windmills, and electric vehicles to the ASEAN region, Russia, Central Asia, and the rest of the world is also likely to negatively impact global crude oil demand.
Investors remained cautious as the domestic consumer demand remained weak in China amid job market uncertainties and a protracted property market slump.
Moreover, China's leadership has shifted its focus from supporting economic growth to investing in military technologies and modernizing its defense capabilities.
China Stock Movers
The Hang Seng index rebounded 1% to 17,274.72, and the CSI 300 index decreased 0.2% to 3,181.57.
Energy stocks were in focus for the second day in a row after Hurricane Francine made landfall in Louisiana, halting oil refinery operations and crude oil explorations in the Gulf of Mexico.
PetroChina declined 1% to HK $5.55, China Petroleum and Chemical fell 1% to HK $4.24, and CNOOC increased 0.1% to HK $18.0.
In Hong Kong, property developers were in focus ahead of the widely expected rate cut in the U.S. next week.
China Vanke increased 1.3% to HK $3.89, Longfor Holdings Group added 0.6% to HK $7.72, China Overseas Land declined 1.2% to HK $10.96, and Sun Hung Kai advanced 1.4% to HK $77.40.
Following the gains in overnight trading in New York, technology stocks advanced in Hong Kong but struggled in Shanghai and Shenzhen.
Alibaba Group edged up 1.1% to HK $83.50 as mainland investors snapped up HK11.6 billion worth of the company's stock on the first day of trading on the Stock Connect.
Tencent Holdings added 1.2% to HK $374.60, Baidu jumped 2.2% to HK $82.25, and Meituan advanced 4% to HK $124.20.
India Movers: Aurionpro Solutions, BPCL, EIL, Tata Steel, Vedanta
Arun Goswami
12 Sep, 2024
Mumbai
Market indexes on Dalal Street edged higher following a slight improvement in global market sentiment.
The Sensex and the Nifty indexes are struggling to advance after a sharp sell-off in the previous week.
The Sensex index increased by 0.5% to 81,930.18, and the Nifty index edged up by 0.6% to 25,069.65.
On the Mumbai stock exchange, 126 stocks traded at their 52-week highs, and 18 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds inched higher to 6.85%, and the Indian rupee weakened to 83.98 against the U.S. dollar.
Tata Steel decreased 0.7% to ₹148.38, and the company secured a £500 million grant from the UK government to install an electric arc furnace and reduce environmental pollution.
Bharat Petroleum Corporation declined 1.5% to ₹340.80, and the company's international subsidiary Urja Bharat won an energy exploration concession covering 6,162 km in Abu Dhabi.
Vehicle makers are in focus in Thursday's trading after the Union Cabinet approved two plans totaling 14,335 crore to boost use of electric vehicles, including ambulances, buses, and trucks.
Vedanta declined 3.2% to ₹426.25, and the iron ore mining company raised $900 million with a coupon rate of 10.875% through a bond offering to repay exiting debt.
Aurionpro Solutions dropped 5% to ₹1,816.05, and the company won a ₹200 contract to implement advanced surveillance technology from the Municipal Corporation of Panvel.
Engineers India Ltd. decreased 2.2% to ₹210.0, and the company said new orders in the first five months to September of the current fiscal year increased 37% from a year ago.
Fed's Planned Rate Cut May Reverse Slow Decline In Inflation
Alexander Garcia
11 Sep, 2024
Miami
Wall Street indexes lacked direction after the latest update on inflation dampened hopes of an aggressive rate cut next week.
U.S. benchmark indexes slipped as investors reviewed the inflation report and searched for clues about the health of the broader economy.
The S&P 500 index and the Nasdaq Composite traded in a tight range after consumer price inflation matched market expectations, but core inflation failed to improve.
Consumer price inflation in August slipped for the fifth month in a row to 2.5%, largely because of the weakness in energy prices, the Bureau of Labor Statistics reported Wednesday.
Energy costs declined 4% compared to a rise of 1% in the previous month, overshadowed by the increase in housing inflation to 5.2% from 5.1% in July.
Prices of food and non-food items are still rising in larger nominal amounts, and the service costs are increasing at an elevated pace, stretching household budgets.
Moreover, if the Fed starts the rate cut cycle, as widely anticipated, at the end of the policy meeting next week, this will stoke inflationary pressures again, keeping the central bank away from its elusive but widely advertised goal of lowering inflation to 2%.
In other words, interest rates are still not restrictive, and they have not been despite the Federal Reserve raising rates eleven times over 2022 and 2023.
On a monthly basis, inflation held steady at 0.2%, matching the rate in the previous month, driven by a 0.5% rise in shelter costs.
Core inflation, which excludes volatile food and energy prices, steadied at a three-year low of 3.2%, indicating slow progress in weakening well-anchored inflation.
After the inflation report, investors still held out for at least a 25 basis rate cut next week.
Despite the widely anticipated rate cut, inflation is well-anchored in the economy, and rates are far from restrictive, as the U.S. economy is still adding jobs above the long-term average and GDP is expanding at a faster rate than 2%.
Moreover, an interest rate cut is not likely to alter the long-term structural issues with the economy, international trade competitiveness, widening inequality, and deepening poverty.
U.S. Indexes and Treasury Yields
The S&P 500 index decreased 0.1% to 5,496.11, the Nasdaq Composite rose 0.7% to 17,145.16, and the Russell 2000 index fell 0.5% to 2,087.23.
The yield on 2-year Treasury notes edged lower to 3.59%, 10-year Treasury notes inched down to 3.62%, and 30-year Treasury bonds inched lower to 3.93%.
WTI crude oil decreased $1.51 to $67.25 a barrel, and natural gas prices edged up 4 cents to $2.27 a thermal unit.
Gold rose by $3.15 to $2,518.74 an ounce, and silver increased by $0.36 to $28.80.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 101.43.
U.S. Stock Movers
GameStop Corp. dropped 11% to $20.86, and the video game retailer reported sharply lower revenue in its latest quarter.
Revenue in the second quarter dropped more than 20% to $798 million from $1.16 billion; net income was $14.8 million compared to a loss of $2.8 million; and diluted earnings per share were 4 cents compared to a loss of 1 cent.
The company also announced the sale of up to 20 million shares at an "at-the-market" price.
Dave & Buster's jumped 14% to $34.13 after the entertainment company reported better-than-expected quarterly results.
Revenue in the second quarter ending on August 6 gained 2.8% to $557.1 million, net income jumped to $40.3 million from $25.9 million, and diluted earnings advanced to 99 cents from 60 cents a year ago.
Comparable store sales declined 6.3% from the same calendar period in the year earlier.
Petco Health and Wellness jumped 7.2% to $3.20, and the pet food retailer reported revenue meeting investor expectations.
Revenue declined 0.5% to $1.52 billion, net loss expanded 70% to $24.8 from $14.6 billion, and diluted earnings per share rose 66% to 9 cents from 5 cents.
Cautious Optimism Prevailed In European Markets Ahead of ECB Rate Decisions
European markets were mixed ahead of the closely watched monetary policy decision on Thursday.
Benchmark indexes in Paris, London, and Frankfurt edged higher as investors anticipated a rate cut by the European Central Bank tomorrow.
The ECB has been signaling that policymakers are likely to lower rates following the weakening in inflation over the last eighteen months.
Investors are also keenly awaiting the release of economic projections for the rest of the year and next year, amid weak consumer demand and a high cost of living.
On the economic front, the UK's GDP stagnated for the second month in a row in July, after the growth in service output was overshadowed by the weakness in manufacturing and construction.
Production output weakened by 0.8% in July, following a growth of 0.8% in June, and decreased by 0.1% in the three months to July 2024.
Construction output decreased by 0.4% in July, following a growth of 0.5% in June, but expanded by 1.2% in the three months to July, its first positive three-month growth since September 2023.
Over the three months to July, the real economy expanded by 0.5% from the previous three-month period with a strong contribution from service output, the Office for National Statistics reported Wednesday.
GDP growth in the three-month period slowed from a 0.6% increase in the previous period ending in July.
Europe Indexes and Yields
The DAX index increased by 0.3% to 18,330.27; the CAC-40 index fell by 0.2% to 7,396.83; and the FTSE 100 index fell by 0.2% to 8,193.94.
The yield on 10-year German bonds edged lower to 2.13%, French bonds inched lower to 2.83%, the UK gilts edged down to 3.78%, and Italian bonds increased to 3.49%.
The euro edged down to $1.10; the British pound inched higher to $1.30; and the U.S. dollar weakened to 84.62 Swiss cents.
Brent crude increased $1.72 to $70.91 a barrel, and the Dutch TTF natural gas rose by €0.61 to €36.17 per MWh.
Europe Stock Movers
Commerzbank soared 16.8% to €14.73, and the German government agreed to sell its 4.5% stake in the bank to Italian lender UniCredit.
UniCredit said it plans to seek permission to acquire an additional stake in the German bank, according to sources in the German finance ministry.
The Italian lender acquired the entire stake priced at €13.20 per share for €702 million, making UniCredit the largest shareholder in the German bank.
Santander Bank Polska declined 7.9% to 463.0 zloty after parent company Banco Santander sold a 5.2% stake in the Polish bank.
Rightmove Plc increased 0.3% to 673.0 pence after the UK-based property platform rejected an acquisition offer from the Australia-based REA Group.
Ricardo plc declined 1.5% to 508.0 pence despite the renewable energy-focused company announcing improved financial results in fiscal year 2024.
Rentokil Initial plc plunged 18.5% to 385.90 pence after the pest control company issued a profit warning.
Inditex increased 4.4% to €48.30 after the Spanish apparel company reported strong first-half results.
Sales in the first-half increased to 7.2% to €18.1 billion and net income advanced 10.1% to €2.8 billion.
The increase in sales were driven by the success of its Spring/Summer collections.
Total sales, including store sales and online sales, between August 1 and September 8 rose 11% from a year ago, suggesting positive impact on its results in the third quarter.
Japan Averages Drop Neary 2% Following Hawkish Comments from BoJ Official
Stocks in Tokyo extended losses of the previous session after hawkish comments from the Bank of Japan official lifted the yen.
The Nikkei 225 stock average dropped 1.6%, and the broader Topix index fell 1.8%.
The Bank of Japan board member Junko Nakagawa said that the central bank is prepared to lift rates if inflation and economic data meet targets set by the policymakers.
Nakagawa's comments lifted the yen to this year's high of 141.35 against the U.S. dollar.
Manufacturing sentiment in Japan dropped to a seven-month low amid ongoing demand weakness from China.
Reuters Tankan sentiment index for manufacturers in Japan fell to +4 in September from +10 in August, on the worries of demand weakness from China, global electric vehicle demand slowdown, and raw material price inflation.
Investors also reviewed the sharp fall in crude oil prices in international trading amid demand growth outlook in the U.S. and China.
Texas crude oil dropped to a three-year low of $66.85 a barrel, despite the likely supply disruption in the Gulf of Mexico following the expected landfall of Hurricane Francine later today.
Japan Stock Movers
The Nikkei 225 stock average declined 1.6% to 35,585.24, and the Topix index dropped 1.8% to 2,529.33.
Tokyo Gas declined 5.4% to ¥3,346.0, and Osaka Gas fell 4.9% to ¥3,348.0.
Financial stocks were in focus after the yen jumped to this year's high following hawkish comments from the Bank of Japan official.
Sumitomo Mitsui Financial decreased 1.7% to ¥8,880.0, Mitsubishi UFJ Financial dropped 1.3% to ¥1,427.50, and Mizuho Financial fell 2.4% to ¥2,765.50.
Energy explorers and distributors fell following a sharp decline in crude oil prices.
Idemitsu Kosan declined 3.7% to ¥968.0, Cosmo Energy Holdings fell 5.1% to ¥7,150.0, and Eneos Holdings decreased 3.4% to ¥721.20.
Hang Seng Index Dropped to One-Month Low After Crude Oil Prices Signaled Global Weakness
Stocks in Shanghai and Hong Kong dropped following renewed worries about the health of the economy after crude oil prices dropped 4%.
The Hang Seng index dropped 1.4% and the mainland-focused CSI 300 index fell 0.4% as investors struggled to understand the latest decline in oil prices.
Crude oil prices fell below $69 a barrel amid worries of lack of demand growth from the U.S. and China, and the OPEC trimmed its global demand growth outlook for 2024 and 2025.
Crude oil prices are now trading at a three-year low after OPEC lowered its global demand growth estimate for 2024 by 80,000 barrels per day to 2 million bpd.
The lowered demand growth primarily reflected demand weakness in China, as the second-largest economy relied more on renewable energy and electric vehicles.
Market sentiment in Hong Kong and Shanghai was dented after consumer price and producer price inflation data confirmed the ongoing demand weakness.
China Stock Movers
The Hang Seng Index dropped 1.4% to 16,992.42, and the mainland-focused CSI 300 index fell 0.4%.
CNOOC fell 3.6% to HK $18.46, PetroChina decreased 4% to HK $5.46, and China Petroleum and Chemical dropped 4% to HK $4.24.
Wuxi AppTec rose 4.8% to HK $33.75 after the company said it plans to buyback stocks worth one billion yuan.
Wuxi Biologics rose 2% to HK $11.12.
Li Ning Co. Ltd. dropped 6.8% to HK $12.64 after Citigroup lowered its opinion on stock to "neutral" from "buy" and lowered its price target by 27%.
Flaircomm Microelectronics opened more than 60% on its first day of trading to 65.89 yuan in Shenzhen.
Tech stocks were also under pressure and led the declines in Hong Kong.
Alibaba Group declined 0.9% to HK $80.95, Tencent Holdings fell 0.5% to HK $366.60, and Meituan decreased 0.8% to HK $117.90.
U.S. Movers: Dave & Buster's, GameStop, Petco
Scott Peters
11 Sep, 2024
New York City
GameStop Corp. dropped 11% to $20.86, and the video game retailer reported sharply lower revenue in its latest quarter.
Revenue in the second quarter dropped more than 20% to $798 million from $1.16 billion; net income was $14.8 million compared to a loss of $2.8 million; and diluted earnings per share were 4 cents compared to a loss of 1 cent.
The company also announced the sale of up to 20 million shares at an "at-the-market" price.
Dave & Buster's jumped 14% to $34.13 after the entertainment company reported better-than-expected quarterly results.
Revenue in the second quarter ending on August 6 gained 2.8% to $557.1 million, net income jumped to $40.3 million from $25.9 million, and diluted earnings advanced to 99 cents from 60 cents a year ago.
Comparable store sales declined 6.3% from the same calendar period in the year earlier.
Petco Health and Wellness jumped 7.2% to $3.20, and the pet food retailer reported revenue meeting investor expectations.
Revenue declined 0.5% to $1.52 billion, net loss expanded 70% to $24.8 from $14.6 billion, and diluted earnings per share rose 66% to 9 cents from 5 cents.
U.S. Major Averages Headed Lower After Core Inflation Stayed Above Fed's Target
Barry Adams
11 Sep, 2024
New York City
U.S. benchmark indexes slipped in early trading as investors reviewed the inflation report and searched for clues about the health of the broader economy.
The S&P 500 index decreased 0.1% and the Nasdaq Composite dropped 0.2% after consumer price inflation matched market expectations.
Consumer price inflation in August slipped for the fifth month in a row to 2.5%, largely because of the weakness in energy prices, the Bureau of Labor Statistics reported Wednesday.
Energy costs declined 4% compared to a rise of 1% in the previous month, overshadowed by the increase in housing inflation to 5.2% from 5.1% in July.
On a monthly basis, inflation held steady at 0.2%, matching the rate in the previous month, driven by a 0.5% rise in shelter costs.
Core inflation, which excludes volatile food and energy prices, steadied at a three-year low of 3.2%, indicating slow progress in weakening well-anchored inflation.
After the inflation report, investors still held out for at least a 25 basis points rate cut next week.
Despite the widely anticipated rate cut, inflation is well-anchored in the economy, and rates are far from restrictive, as the U.S. economy is still adding jobs above the long-term average and GDP is expanding at a faster rate than 2%.
Moreover, an interest rate cut is not likely to alter the long-term structural issues with the economy, international trade competitiveness, widening inequality, and entrenched poverty.
U.S. Indexes and Treasury Yields
The S&P 500 index decreased 0.3% to 5,486.63, the Nasdaq Composite eased 0.4% to 16,960.21, and the Russell 2000 index fell 0.1% to 2,095.90.
The yield on 2-year Treasury notes edged lower to 3.59%, 10-year Treasury notes inched down to 3.62%, and 30-year Treasury bonds inched lower to 3.93%.
WTI crude oil decreased $1.51 to $67.25 a barrel, and natural gas prices edged up 4 cents to $2.27 a thermal unit.
Gold rose by $3.15 to $2,518.74 an ounce, and silver increased by $0.36 to $28.80.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 101.43.
U.S. Stock Movers
GameStop Corp. dropped 11% to $20.86, and the video game retailer reported sharply lower revenue in its latest quarter.
Revenue in the second quarter dropped more than 20% to $798 million from $1.16 billion; net income was $14.8 million compared to a loss of $2.8 million; and diluted earnings per share were 4 cents compared to a loss of 1 cent.
The company also announced the sale of up to 20 million shares at an "at-the-market" price.
Dave & Buster's jumped 14% to $34.13 after the entertainment company reported better-than-expected quarterly results.
Revenue in the second quarter ending on August 6 gained 2.8% to $557.1 million, net income jumped to $40.3 million from $25.9 million, and diluted earnings advanced to 99 cents from 60 cents a year ago.
Comparable store sales declined 6.3% from the same calendar period in the year earlier.
Petco Health and Wellness jumped 7.2% to $3.20, and the pet food retailer reported revenue meeting investor expectations.
Revenue declined 0.5% to $1.52 billion, net loss expanded 70% to $24.8 from $14.6 billion, and diluted earnings per share rose 66% to 9 cents from 5 cents.
Europe Movers: Commerzbank, Inditex, Rentokil Initial, Ricardo, Rightmove, Santander Bank Polska, UniCredit
Inga Muller
11 Sep, 2024
Frankfurt
European markets lacked direction ahead of the release of monetary policy decisions and economic projections on Thursday. The UK's GDP stagnated for the second month in a row in July.
The DAX index increased by 0.3% to 18,340.93; the CAC-40 index rose by 0.3% to 7,429.59; and the FTSE 100 index rose by 0.1% to 8,211.59.
The yield on 10-year German bonds edged lower to 2.13%, French bonds inched lower to 2.83%, the UK gilts edged down to 3.78%, and Italian bonds increased to 3.49%.
Commerzbank soared 16.8% to €14.73, and the German government agreed to sell its 4.5% stake in the bank to Italian lender UniCredit.
UniCredit said it plans to seek permission to acquire an additional stake in the German bank, according to sources in the German finance ministry.
The Italian lender acquired the entire stake priced at €13.20 per share for €702 million, making UniCredit the largest shareholder in the German bank.
Santander Bank Polska declined 7.9% to 463.0 zloty after parent company Banco Santander sold a 5.2% stake in the Polish bank.
Rightmove Plc increased 0.3% to 673.0 pence after the UK-based property platform rejected an acquisition offer from the Australia-based REA Group.
Ricardo plc declined 1.5% to 508.0 pence despite the renewable energy-focused company announcing improved financial results in fiscal year 2024.
Rentokil Initial plc plunged 18.5% to 385.90 pence after the pest control company issued a profit warning.
Inditex increased 4.4% to €48.30 after the Spanish apparel company reported strong first-half results.
Sales in the first-half increased 7.2% to €18.1 billion and net income advanced 10.1% to €2.8 billion.
The increase in sales were driven by the success of its Spring/Summer collections.
Total sales, including store sales and online sales, between August 1 and September 8 rose 11% from a year ago, suggesting positive impact on its results in the third quarter.
Cautious Optimism Prevailed In European Markets Ahead of ECB Rate Decisions
Bridgette Randall
11 Sep, 2024
London
European markets were mixed ahead of the closely watched monetary policy decision on Thursday.
Benchmark indexes in Paris, London, and Frankfurt edged higher as investors anticipated a rate cut by the European Central Bank tomorrow.
The ECB has been signaling that policymakers are likely to lower rates following the weakening in inflation over the last eighteen months.
Investors are also keenly awaiting the release of economic projections for the rest of the year and next year, amid weak consumer demand and a high cost of living.
On the economic front, the UK's GDP stagnated for the second month in a row in July, after the growth in service output was overshadowed by the weakness in manufacturing and construction.
Production output weakened by 0.8% in July, following a growth of 0.8% in June, and decreased by 0.1% in the three months to July 2024.
Construction output decreased by 0.4% in July, following a growth of 0.5% in June, but expanded by 1.2% in the three months to July, its first positive three-month growth since September 2023.
Over the three months to July, the real economy expanded by 0.5% from the previous three-month period with a strong contribution from service output, the Office for National Statistics reported Wednesday.
GDP growth in the three-month period slowed from a 0.6% increase in the previous period ending in July.
Europe Indexes and Yields
The DAX index increased by 0.3% to 18,340.93; the CAC-40 index rose by 0.3% to 7,429.59; and the FTSE 100 index rose by 0.1% to 8,211.59.
The yield on 10-year German bonds edged lower to 2.13%, French bonds inched lower to 2.83%, the UK gilts edged down to 3.78%, and Italian bonds increased to 3.49%.
The euro edged down to $1.10; the British pound inched higher to $1.30; and the U.S. dollar weakened to 84.62 Swiss cents.
Brent crude increased $1.44 to $70.62 a barrel, and the Dutch TTF natural gas rose by €0.03 to €35.53 per MWh.
Europe Stock Movers
Commerzbank soared 16.8% to €14.73, and the German government agreed to sell its 4.5% stake in the bank to Italian lender UniCredit.
UniCredit said it plans to seek permission to acquire an additional stake in the German bank, according to sources in the German finance ministry.
The Italian lender acquired the entire stake priced at €13.20 per share for €702 million, making UniCredit the largest shareholder in the German bank.
Santander Bank Polska declined 7.9% to 463.0 zloty after parent company Banco Santander sold a 5.2% stake in the Polish bank.
Rightmove Plc increased 0.3% to 673.0 pence after the UK-based property platform rejected an acquisition offer from the Australia-based REA Group.
Ricardo plc declined 1.5% to 508.0 pence despite the renewable energy-focused company announcing improved financial results in fiscal year 2024.
Rentokil Initial plc plunged 18.5% to 385.90 pence after the pest control company issued a profit warning.
Inditex increased 4.4% to €48.30 after the Spanish apparel company reported strong first-half results.
Sales in the first-half increased to 7.2% to €18.1 billion and net income advanced 10.1% to €2.8 billion.
The increase in sales were driven by the success of its Spring/Summer collections.
Total sales, including store sales and online sales, between August 1 and September 8 rose 11% from a year ago, suggesting positive impact on its results in the third quarter.