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U.S. Movers: Caterpillar, Palantir Technologies, Yum China, Uber

Scott Peters
06 Aug, 2024
New York City

Caterpillar advanced 4.2% to $329.97, and the earth moving equipment maker reported better-than-expected quarterly results.

Palantir Technologies soared 11.5% to $26.79 after the data analytics company lifted its annual revenue outlook.

The company estimated annual revenue between $2.74 billion and $2.75 billion, higher than the previously estimated range between $2.68 billion and $2.69 billion.

Uber Technologies increased 7.7% to $62.99 after the ride-hailing service provider reported better-than-expected second quarter results.

Revenue increased 16% to $10.7 billion from $9.2 billion, net income attributable to shareholders soared 158% to $1.0 billion from $394 million, and earnings per share rose to 47 cents from 18 cents a year ago.

Uber delivery segment, which includes delivery of food from restaurants and stores, saw gross bookings increase 16% to $18.1 billion from $15.6 billion, and revenue rose 8% to $3.3 billion from $3.1 billion a year ago.

The company also said gross bookings are likely to increase in the current quarter from the previous quarter on solid demand for its services.

Yum China increased 12.8% to $33.58 after the Shanghai-based franchisee of Pizza Hut and Taco Bell fast food stores reported better-than-expected quarterly results.

Revenue in the second quarter increased to $2.68 billion and fell short of market expectations, and adjusted earnings per share rose to 55 cents and surpassed market expectations of at least 49 cents.

The company also said its chief financial officer is planning to step down.

Wall Street Attempts to Rebound from Monday's Big Sell-off

Barry Adams
06 Aug, 2024
New York City

Market indexes recouped losses of the previous session as market sentiment stabilized on Wall Street.

The S&P 500 index jumped 1% and the Nasdaq Composite advanced 0.7% as investors searched for bargains in mega-cap stocks.

Investors returned to buy more stocks in the hopes that the previous three-session sell-off was overdone and underlying economic fundamentals are solid, despite the recent moderation in labor market conditions.

The yield on 10-year Treasury notes rebounded above 3.8% after dropping to a one-year low of 3.67% in the previous session.

The U.S. international goods and services trade gap shrank in June, the Commerce Department reported Tuesday.

The trade gap shrank to $73.1 billion from the revised 20-month peak of a $75 billion deficit in the previous month.

Exports increased 1.5% from the previous month to $265.9 billion, and imports rose at a slower pace of 0.6% to $339 billion.

Exports advanced to the second-highest on record, driven by strong demand for aircraft, automotive vehicles, and petroleum energy products.

Trade deficit with China fell by $1.6 billion to $22.3 billion as more Chinese companies shipped goods from Vietnam, Mexico, and Malaysia to avoid punitive tariffs.

U.S. Indexes and Treasury Yields

The S&P 500 index gained 1.1% to 5,241.09, the Nasdaq Composite advanced 0.7% to 16,311.21, and the Russell 2000 index rose 1.2% to 2,063.71.

The yield on 2-year Treasury notes edged higher to 3.95%, 10-year Treasury notes increased to 3.83%, and 30-year Treasury bonds advanced to 4.12%.

WTI crude oil increased $0.51 to $73.52 a barrel, and natural gas prices edged up 2 cents to $1.96 a thermal unit.

Gold decreased by $7.92 to $2,396.86 an ounce, and silver declined by $0.04 to $27.20.

The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 102.52.

U.S. Stock Movers

Caterpillar advanced 4.2% to $329.97, and the earth moving equipment maker reported better-than-expected quarterly results.

Palantir Technologies soared 11.5% to $26.79 after the data analytics company lifted its annual revenue outlook.

The company estimated annual revenue between $2.74 billion and $2.75 billion, higher than the previously estimated range between $2.68 billion and $2.69 billion.

Uber Technologies increased 7.7% to $62.99 after the ride-hailing service provider reported better-than-expected second quarter results.

Revenue increased 16% to $10.7 billion from $9.2 billion, net income attributable to shareholders soared 158% to $1.0 billion from $394 million, and earnings per share rose to 47 cents from 18 cents a year ago.

Uber delivery segment, which includes delivery of food from restaurants and stores, saw gross bookings increase 16% to $18.1 billion from $15.6 billion, and revenue rose 8% to $3.3 billion from $3.1 billion a year ago.

The company also said gross bookings are likely to increase in the current quarter from the previous quarter on solid demand for its services.

Yum China increased 12.8% to $33.58 after the Shanghai-based franchisee of Pizza Hut and Taco Bell fast food stores reported better-than-expected quarterly results.

Revenue in the second quarter increased to $2.68 billion and fell short of market expectations, and adjusted earnings per share rose to 55 cents and surpassed market expectations of at least 49 cents.

The company also said its chief financial officer is planning to step down.

Europe Movers: Abrdn, Adecco Group, Domino's Pizza, Monte dei Paschi di Siena, SIG Gorup

Inga Muller
06 Aug, 2024
Frankfurt

European markets hovered near the flatline and traded near six-month lows amid a mix of rising tensions in the Middle East, less-than-inspiring corporate earnings growth, and U.S. economic slowdown worries.

The DAX index increased by 0.1% to 17,362.15; the CAC-40 index fell by 0.2% to 7,134.50; and the FTSE 100 index declined by 0.4% to 7,976.06.

European bond yields dropped to six-month lows as investors sought safety in government securities amid growing worries about the global economic slowdown and rising geopolitical tensions.

The yield on 10-year German bonds edged higher to 2.17%, French bonds inched higher to 2.95%, the UK gilts inched higher to 3.90%, and Italian bonds increased to 3.66%.

Abrdn jumped 2.2% to 165.76 pence after the UK-based asset management company reported better-than-expected first-half results.

Adecco Group increased 1.1% to CHF 28.12 after the Swiss staffing company's second-quarter results surpassed market expectations.

Monte dei Paschi di Siena soared 7.3% to €4.66 after the Italian bank raised its profit outlook.

SIG Group AG decreased 1.4% to CHF 17.09 after the Swiss construction material company reported a loss in the first half.

Domino's Pizza decreased 6.5% to 288.80 pence after the pizza delivery company estimated its annual profit to hover near the lower end of market expectations.

Systemwide sales in the first half increased 0.2% to £767.7 million from £766.4 million, total orders decreased 0.9% to 35.1 million from 35.4 million, and group revenue decreased 1.8% to £326.8 million from £332.9 million a year ago.

Statutory profit declined 35.2% to £59.4 million from £91.5 million, and basic earnings per share dropped 44% to 10.70 pence from 19.3 pence a year ago.

The pizza delivery company increased its interim dividend per share by 6% to 3.5 pence from 3.3 pence a year ago.

European Markets Hovered Near Flatline, Eurozone Retail Sales Declined In June

Bridgette Randall
06 Aug, 2024
London

European markets struggled to advance following losses in the previous session amid rising Middle East tensions, lukewarm corporate earnings, and mounting concerns about the U.S. economic slowdown.

Benchmark indexes in Paris, London, and Frankfurt traded around the flatline after investors reviewed eurozone retail sales and German factory orders.

Eurozone Retail Sales Fall In June

Retail sales in the eurozone decreased 0.3% on the month and on the year in June, Eurostat reported Tuesday.

Retail sales declined on a monthly basis for the fourth time in the last seven months, and food, drink, and tobacco sales declined 0.7%, compared to a 1% rise.

Non-food product sales decline slowed to 0.1%, following a 0.3% decrease in the previous month.

On the other hand, sales of auto fuel increased 0.5%, extending a 0.3% rise.

German Factory Orders Rebounded in June

German factory orders adjusted for season and calendar factors rebounded in June after falling in five previous months in a row, the Federal Statistics Office, or Destatis, reported Tuesday.

Orders for manufactured goods were less volatile on a quarterly basis and decreased 1.4% in the second quarter ending in June from the previous quarter.

Automotive orders increased 9.3%; orders for ships, trains, and aircraft soared 11.7%; however, orders for electronic and optical equipment declined 7.9% from the previous month.

Orders for capital goods increased by 9.2%, but intermediate goods fell by 1.5%, and consumer goods dropped 7.1%.

Domestic orders rose 9.1% and foreign orders inched up 0.4%, with orders from the eurozone declining 0.3% and outside the currency union rising 0.9%.

Europe Indexes and Yields

The DAX index increased by 0.1% to 17,362.15; the CAC-40 index fell by 0.2% to 7,134.50; and the FTSE 100 index declined by 0.4% to 7,976.06.

European bond yields dropped to six-month lows as investors sought safety in government securities amid growing worries about the global economic slowdown and rising geopolitical tensions.

The yield on 10-year German bonds edged higher to 2.17%, French bonds inched higher to 2.95%, the UK gilts inched higher to 3.90%, and Italian bonds increased to 3.66%.

The euro edged down to $1.09; the British pound inched lower to $1.269; and the U.S. dollar weakened to 85.40 Swiss cents.

Brent crude decreased $0.05 to $76.24 a barrel, and the Dutch TTF natural gas fell by €0.90 to €36.70 per MWh.

Europe Stock Movers

Abrdn jumped 2.2% to 165.76 pence after the UK-based asset management company reported better-than-expected first-half results.

Adecco Group increased 1.1% to CHF 28.12 after the Swiss staffing company's second-quarter results surpassed market expectations.

Monte dei Paschi di Siena soared 7.3% to €4.66 after the Italian bank raised its profit outlook.

SIG Group AG decreased 1.4% to CHF 17.09 after the Swiss construction material company reported a loss in the first half.

Domino's Pizza decreased 6.5% to 288.80 pence after the pizza delivery company estimated its annual profit to hover near the lower end of market expectations.

Volatile Japan Indexes Rebound 10% Following Historic Plunge In Monday's Trading

Akira Ito
06 Aug, 2024
Tokyo

After a day of tumultuous trading, benchmark indexes in Tokyo recouped losses in the previous session as market sentiment stabilized.

The Nikkei 225 and the Topix indexes jumped around 10% as investors searched for bargains after three-day losses totaled nearly 20%.

In fact, the surge in Tuesday's trading was the largest-ever increase in points in the Nikkei 225's history, surpassing its previous increase of 2,676.55 points in October 1990.

The Nikkei 225 stock plunged more than 12% in Monday's trading as currency traders unwound the so-called "carry trade."

Carry trade had dominated currency market speculation for more than a decade, where investors borrowed money in the Japanese yen and invested in U.S. or European assets that yielded a higher annual return.

However, that currency arbitrage became far more risky after the Bank of Japan unexpectedly increased its policy rate for the second time in a row since March and signaled additional rate hikes.

Benchmark indexes accumulated nearly 20% of losses over the three days to Monday, amid rising market anxieties after currency traders unwound the carry trade, investors walked away from frothy valuations of the artificial intelligence-linked stocks, and the strong rebound in the yen dented the earnings growth outlook of exporting companies.

On Tuesday, the yen weakened to 145.34 from 141.43 against the U.S. dollar in Monday's trading.

On the economic front, average cash earnings increased 4.5% in June, accelerating from an upwardly revised 2% in May, the Ministry of Health, Labor, and Welfare reported Tuesday.

Japan's nominal wage increase outpaced the core inflation rate of 2.6%, leading to the first gain in real wages in 27 months.

The average of household spending in Japan was up a seasonally adjusted 0.1% on month but fell 1.4% in real terms on the year in June, the Ministry of Internal Affairs and Communications said on Tuesday.

Household spending in June was 280,888 yen and the real average of monthly income per household increased 3.1% from a year ago to 957,457 yen.

Japan Stock Movers

The Nikkei 225 stock average soared 10.2% to 34,675.46, and the Topix index advanced 9.3% to 2,434.21.

Widely followed advanced chipmaking equipment makers rebounded, and Tokyo Electron, Advantest, and Screen Holdings jumped between 10% and 15%.

Leading banks also participated in the market's rebound.

Mitsubishi UFJ gained 5.8% to ¥1,318.0, Sumitomo Mitsui Financial declined 2% to ¥8,000.0, and Mizuho Financial Group jumped 5.6% to ¥2,596.50.

Honda Motor, Toyota Motor, and Nissan Motor gained between 10% and 12%.

Kikkoman soared 21% to ¥1,744.0 after the food products maker reported a surge in net income in the June quarter.

Revenue increased 12% to 178.22 billion yen, and net income soared 70% to 18.1 billion yen.

The company also reiterated its annual net income outlook of 57.60 billion yen and its net sales estimate of 685 billion yen.

Indexes In Shanghai and Hong Kong Fail to Stay Above Flatline

Li Chen
06 Aug, 2024
Hong Kong

Stocks in Hong Kong and Shanghai rebounded after market sentiment stabilized, and investors looked forward to the release of corporate results.

The Hang Seng and the CSI indexes rebounded in early trading after Japan's Nikkei 225 stock average recouped most of the historic losses in the previous session amid panic selling.

But market indexes turned lower after a weak domestic economic outlook and earnings growth uncertainty overshadowed market sentiment in Hong Kong and Shanghai.

Investors looked forward to the release of official consumer price inflation and producer price inflation data on Friday.

Economists are estimating consumer price inflation to rebound by 0.3% in July, but wholesale deflation will persist for the 22nd month in a row and show a decline of 0.9%.

The Hang Seng index has erased about 15% of its gains from the peak in May, and the benchmark is struggling near a three-month low as foreign investors lighten their holdings and domestic investors stay on the sidelines.

In addition, China's policymakers are struggling to devise market reform amid weak consumer confidence and prolonged residential market decline as the world's second-largest economy labors under record-high government debt.

Across wider Asia, market indexes in Mumbai advanced 0.7%, in Tokyo rebounded 9.6%, in Seoul gained 4.5%, and in Sydney jumped 0.4%.

China Stock Movers

The Hang Seng index fell 0.2% to 16,668.21, and the CSI 300 index declined 0.5% to 3,327.05.

Property developers were in focus ahead of the release of their quarterly results.

China's top 100 residential real estate developers reported home sales of 1.85 trillion yuan, a 40% decline in sales in the first half, according to China Real Estate Information Corp.

But the supply of new homes is still rising at a pace faster than the rate in 2016, indicating that the industry may take more than a decade to rebound from the current slump.

China Vanke increased 1.2% to HK $4.08, China Resources Land gained 1.1% to HK $22.70, Longfor Group was unchanged at HK $9.07, and China Overseas Land & Investment inched higher 0.3% to HK $12.56.

Alibaba Group jumped 2% to HK $75.65, Meituan Holding declined 0.4% to $106.30, Baidu decreased 1.4% to HK $79.90, and Tencent Holdings dropped 1.6% to HK $350.80.

India Movers: BLS International, ONGC, Deepak Nitrite, Schneider Electric, Tata Chemicals, V-Mart

Arun Goswami
06 Aug, 2024
Mumbai

India indexes rebounded, tracking a rise in Asian markets, and investors focused on the latest batch of mixed quarterly results.

The Sensex index decreased by 0.8% to 79,815.89, and the Nifty index fell by 0.8% to 24,121.15.

On the Mumbai stock exchange, 110 stocks traded at their 52-week highs, and 19 stocks traded at their 52-week lows.

The yield on the 10-year Indian government bonds inched lower to 6.85%, and the Indian rupee edged lower to ₹83.85 against the U.S. dollar.

ONGC increased 1.9% to ₹316.05, and the oil explorer reported a decline in profit in the June quarter.

Revenue increased 1.8% to 35,266.4 crore, and net income decreased 9.4% to 8,938.1 crore from a year ago, respectively.

Deepak Nitrite advanced 2.2% to ₹3,017.50 after the chemical maker reported a jump in revenue and earnings in the June quarter.

Revenue increased by 22.5% to 2,166.8 crore, and net income rose by 35.1% to 202.5 crore a year ago, respectively.

BLS International gained 4.3% to ₹365.0, and the visa services processing company reported a rise in revenue and earnings in the June quarter.

Revenue increased 28.5% to ₹492.7 crore and net income soared 70% to ₹120.8 crore from a year ago, respectively.

V-Mart Retail jumped 10.3% to ₹3,616.65, and the hypermarkets operator swung to a profit in the June quarter.

Revenue increased 15.9% to ₹786 crore, and net income swung to a profit of ₹12.1 crore compared to a loss in the quarter a year ago, respectively.

Schneider Electric Infrastructure advanced 7.7% to ₹807.30 after the power grid equipment and system maker reported a double-digit increase in revenue and earnings in the June quarter.

Revenue soared 19.7% to 592.9 crore, and net income advanced 38.8% to 48.5 crore from the corresponding month a year earlier.

Tata Chemicals increased 1.8% to ₹1,072.30, and the chemical and crop protection maker reported a decline in profit and earnings in the June quarter.

Revenue decreased 10.2% to 3,789 crore, and net income plunged 67.6% to 190 crore from a year ago, respectively.

U.S. Investors Shift Focus to Hard Landing Scenario as World Markets Lower Expectations

Alexander Garcia
05 Aug, 2024
Miami

Stock market indexes on Wall Street dropped sharply in Monday's trading and extended weekly losses of the previous three weeks in a row.

The global market sell-off that originated last week reverberated on Wall Street on Monday as investors recalibrated their economic growth and corporate earnings outlook.

The S&P 500 index and the Nasdaq Composite dropped around 3%, but at the opening, the benchmark indexes plunged as much as 4.5% and 6.5%, respectively.

Only two weeks ago, investors rushed to congratulate the Federal Reserve as policymakers struggled to cool inflation while keeping economic growth intact—the so-called soft landing.

However, market sentiment reversed sharply after key economic indicators suggested weakening economic activities and labor market expansion, suggesting that the economy may be losing steam faster than previously anticipated.

The hoped-for soft-landing scenario has been been discounted to a hard-landing scenario as investors fear economic activities may be falling at a faster-than-previously estimated pace.

The sudden shift in the economic narrative caught investors off guard and set in motion a decline on Wall Street last week, which rippled to Asia and Europe with heightened amplitude.

In Monday's trading, last quarter's big winners linked to artificial intelligence plunged in high double-digits, setting another round of sell-off across the Atlantic.

Intel, Nvidia, Broadcom, Qualcomm, AMD, and TSMC plunged between 5% and 15% at the opening, but those losses were trimmed after an hour of trading.

The yield on 10-year U.S. Treasury notes slipped to 3.7% as investors sought a safe haven in bond markets as stock market indexes hit new lows in the last two weeks.

In overnight trading, Japan's Nikkei plunged 12.4%, the largest point decline in the index's history and the second-largest fall in percentage, after the Bank of Japan lifted rates that contributed to a sharp rebound in the yen.

In the week ahead, in the U.S., all eyes will be on the fresh batch of earnings, including updates from Amgen, Caterpillar, Disney, and Uber.

On the economic front, the service sector activity report is likely to show a rebound in growth in July after a contraction in June.

Investors are also awaiting the release of the international goods and services trade balance, and changes in the deficit with China will take center stage.

U.S. Indexes and Treasury Yields

The S&P 500 index is down about 9%, and the Nasdaq Composite has dropped by 14% from its recent high in early July.

The S&P 500 index decreased 2.7% to 5,199.27, the Nasdaq Composite fell 3.1% to 16,252.99, and the Russell 2000 index declined 3.0% to 2,046.74.

The yield on 2-year Treasury notes edged lower to 3.87%, 10-year Treasury notes decreased to 3.70%, and 30-year Treasury bonds decreased to 4.03%.

WTI crude oil decreased $0.39 to $73.13 a barrel, and natural gas prices edged down 2 cents to $1.94 a thermal unit.

Gold decreased by $50.42 to $2,392.42 an ounce, and silver declined by $1.36 to $27.17.

The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 102.52.

U.S. Stock Movers

Artificial intelligence-linked stocks rebounded from steep losses on Monday morning.

Nvidia declined 6.5% to $99.23, Qualcomm dropped 0.5% to $158.14, TSMC decreased 5.1% to $142.30, but AMD managed to shake off losses to rise above the flatline to gain 0.5% to $133.25.

Apple decreased 5.4% to $207.97 after Warren Buffett-controlled Berkshire Hathaway disclosed in regulatory filings that it had cut its holding in the company by half.

Tesla declined 5.4% to $196.40, and company founder Elon Musk revived a lawsuit against OpenAI and its founder, Sam Altman.

European Stock Markets Extend Losses On Monday as Global Sell-off Intensifies

European markets extended losses from last week as investors adjusted their global growth outlook amid a weakening economic backdrop.

Benchmark indexes in Paris, Frankfurt, and London dropped between 2% and 4% as weaker-than-expected earnings from mega-cap tech companies were compounded by the weakening economic drop in the U.S.

Large European companies relied on export growth to the U.S. and China, which is the main driver of earnings growth, because of the stagnant economic conditions in the European Union.

However, in recent quarters, most of the earnings growth has been driven by U.S. demand growth, offset by China's weaker-than-expected economic recovery.

Now if the U.S. economy weakens, that could severely impact demand for European industrial and luxury goods, providing another headwind for earnings at European companies.

In domestic economic news, a survey showed the eurozone economy stalled in July as demand for goods and services deteriorated.

The HCOB composite PMI output index fell to a five-month low of 50.2 from 50.9 in June, S&P Global reported Monday.

In the week ahead, investors are awaiting the release of German factory orders and industrial production data, both of which are expected to show a rebound, and final inflation data is expected to confirm acceleration in July.

In the eurozone, investors are looking forward to the release of retail sales and producer price indexes, industrial production in Spain, the unemployment rate in France, and an inflation update in Italy.

Europe Indexes and Yields

The DAX index decreased by 1.8% to 17,339.0; the CAC-40 index fell by 1.4% to 7,148.99; and the FTSE 100 index declined by 2.1% to 8,008.23.

European bond yields dropped to six-month lows as investors sought safety in government securities amid growing worries about the global economic slowdown and rising geopolitical tensions.

The yield on 10-year German bonds edged lower to 2.10%, French bonds inched lower to 2.92%, the UK gilts inched lower to 3.77%, and Italian bonds decreased to 3.62%.

The euro edged down to $1.09; the British pound inched lower to $1.272; and the U.S. dollar weakened to 85.05 Swiss cents.

Brent crude decreased $0.56 to $76.24 a barrel, and the Dutch TTF natural gas fell by €0.85 to €35.80 per MWh.

Europe Stock Movers

Clarkson PLC plunged 10.4% to 3,875.0 pence after the UK-based shipping broker reported a decline in sales and earnings in the first half.

OCI NV increased 10.3% to €23.82 after Woodside Energy agreed to acquire the Netherlands-based chemical maker's clean ammonia plant in Texas for 2.35 billion.

Woodside Energy decreased 2.5% to 1,302.0 pence.

Senior plc plunged 7.7% to 145.4 pence, despite the UK-based engineering company reporting a 10% increase in its first-half profit.

Aurubis AG rose 9.2% to €62.50 after the non-ferrous metal producer and copper recycler reported third-quarter operating earnings below market expectations.

Galderma AG increased 4.6% to CHF 70.09 after L'Oreal said it acquired a 10% stake in the dermatology company for an undisclosed amount.

Japan's Nikkei Records Largest Single-day Fall of 12% Amid Panic Selling

Market indexes in Tokyo plunged in Monday's trading steepened three-day losses amid a growing list of worries as investors adjusted to the hawkish central bank.

The Nikkei 225 stock average plunged more than 12% and extended three-day losses to 20% as the Bank of Japan unexpectedly increased interest rates and sparked a sharp reversal in the Japanese yen.

Last Thursday, the Bank of Japan increased interest rates for the second time since March by 15 basis points to 0.25% and held out for more interest rate increases in the imminent future.

Investors were also under pressure after a string of weak earnings from mega-cap U.S. technology companies, which also led to the unwinding of the artificial intelligence-linked rally, dragging semiconductor equipment makers.

The yen continued to advance for the second week in a row and strengthened as much as 4% to close at 142.45 against the U.S. dollar, a sharp jump from 162 only three weeks ago.

The minutes of the Bank of Japan's policy meeting held on June 13–14 indicated members noted modest economic recovery, and participants decided to delay the release of a detailed bond purchase program until the next meeting.

The yield on 10-year Japanese government bonds dropped to 0.775% from 1.07% in Friday's trading.

Japan Stock Movers

The Nikkei 225 stock average recorded the largest decline in points in the index's history, and registered the second largest decline in percentage terms.

The Nikkei 225 stock average declined 3,836 points on October 20, 1987, the day after following the sharp plunge on Black Monday in New York.

The Nikkei 225 stock average plunged 12.4% or 4,451.28 points to 31,458.42, and the Topix index declined 12.2% to 2,227.15.

Banks, technology stocks, and industrial and automotive stocks led the decliners for the second day in a row.

Mitsubishi UFJ Financial plunged 17.8% to ¥1,245.50, Sumitomo Mitsui Financial dropped 15.5% to ¥8,162.0, and Mizuho Financial fell 19% to ¥2,452.0.

Over the last three trading sessions, Mitsubishi UFJ declined 33%, Mitsui Financial plunged 20%, and Mizuho Financial chopped 27%.

Softbank Group plunged 19% to ¥6,400.0, Advantest Corp. slid 15.5% to ¥5,313.0, and Screen Holdings dropped 12.7% to ¥9,080.0.

Over the last three trading sessions, Softbank plunged 31%, Advantest dropped 22%, Tokyo Electron decreased 25%, and Screen Holdings decreased 27%.

Toyota Motor declined 13.5% to ¥2,232.0, Honda Motor decreased 17.5% to ¥1,251.50, and Nissan Motor fell 14.5% to ¥378.10.

China Indexes Sell-off Erases 2024 Gains Amid U.S. Recession Worries

Market sentiment continued to weaken in Shanghai and Hong Kong as fears of the U.S. recession grew.

The Hang Seng index declined nearly 3% and dropped to a 3-month low, and the CSI index fell, tracking losses in Asia.

Investor sentiment deteriorated after a string of U.S. economic data suggested that the economy may be heading into a recession, reversing the popular narrative of strong consumer spending and business investments.

The U.S. payrolls expanded at the slowest pace in several years in July, and the jobless rate rose for the fourth month in a row to 4.3%, indicating labor market conditions are moderating.

In addition, last week, factory activities shrank for the third month in a row, and initial jobless claims approached a one-year high.

The sudden reversal in market sentiment from soft landing to hard landing was further supported by weak earnings from Intel, Amazon, Alphabet, and Tesla.

Investors are now thinking that the Federal Reserve may have held interest rates too high for too long and that the central bank may lower rates sooner than expected.

Closer to home, China's service sector showed an improvement in July, driven by an acceleration in export demand and rising employment, according to a private survey.

The Caixin China General Services PMI increased to 52.1–51.2% in June, according to a survey released by S&P Global.

China Stock Movers

The Hang Seng index declined 2.6% to 16,512.61, and the CSI 300 index dropped 1% to 3,352.63.

Internet stocks were among the leading decliners amid worries of a further weakening in earnings.

Alibaba Group fell 2.2% to HK $73.65, Tencent Holding decreased 1.6% to HK $352.40, and Baidu plunged 4.2% to HK $80.05.

Electric vehicle markets fell as investors avoided high-flying stocks.

BYD declined 2.2% to HK $214.40, Li Auto fell 3.2% to HK $71.55, and Xpeng decreased 3% to HK $28.55.

China Vanke declined 1.7% to HK $3.98, China Resources Land dropped 2.2% to HK $21.85, and Henderson Land Development eased 0.5% to HK $21.80.

HSBC Holdings plc declined 5.3% to HK $62.15, and Standard Chartered plc plunged 6.2% to HK $68.15.

Global Market Rout Returns Home Sinking S&P 500 and Nasdaq 4%

Barry Adams
05 Aug, 2024
New York City

The global market sell-off that originated last week reverberated on Wall Street on Monday as investors recalibrated their economic growth and corporate earnings outlook.

The S&P 500 index declined 3% and the Nasdaq Composite dropped 3.4%, but at the opening, the benchmark indexes plunged as much as 4.5% and 6.5%, respectively.