Market Update
U.S. Stocks Accelerated Declines In Afternoon Trading, Global Markets Trend Lower
Barry Adams
30 Jan, 2023
New York City
Stocks on Wall Street closed down led by tech stocks and investors braced for weak quarterly results from leading technology companies.
Apple Inc, Amazon.com Inc, Meta Platforms and Alphabet Inc are among 400 companies scheduled to release earnings.
After Microsoft reported a decline in earnings and sales, investors have dilated back expectations and Apple Inc is expected to report a decline in revenues in three years.
Apple is struggling to adjust to the weakening PC demand and production challenges for its advanced smartphones because of "zero-covid" policy in China.
Apple has shifted production of some models of smartphone production to India and the company is planning to shift MacBook production to Vietnam as early this year after its key supplier Foxconn diversifies its manufacturing base.
Investors are also looking ahead to economic reports this week.
Monthly jobs report, consumer confidence data and activities in manufacturing and services sectors are scheduled to be released later in the week.
In Europe, Philips announced to lay off 6,000 staff as the company reorganizes its operations after the boom and bust of Covid-19 related products.
Electric vehicle makers brace for more price cuts after Ford Motor Company announced a price cut for some of its electric vehicles, following the price cuts by Tesla Inc.
Ford Motor Company cut as much as 9% list prices on select models of Mustang-E after Tesla Inc offered buyer incentives in the U.S.
Investors also overlooked the latest covid-peak assessment from health regulators in China and independent local sources confirmed Covid-flare-up remains a real threat in rural China.
Benchmark indexes traded volatile with a downward bias and bond yields inched higher on the expectations of a smaller rate hike this week in the U.S. and the Euro Area.
The S&P 500 index declined 1.3% to 4,017.77 and the Nasdaq Composite index dropped 1.95% to 11,393.81.
Crude oil decreased $1.42 to $77.89 a barrel and natural gas futures declined 17 cents to $2.67 a barrel.
The yield on 2-year Treasury notes increased to 4.24%, 10-year Treasury notes inched up to 3.55%, 30-year Treasury notes to 3.65%.
Europe Markets Struggled, Germany's Fourth Quarter GDP Decreased
European markets closed mixed as investors braced for a busy week of corporate earnings and central bank policy meetings.
Semiconductor maker ASML Holding NV declined 2.7% in Amsterdam trading after the company said it is awaiting the details of legislation focused on export controls to China in a statement released on Friday.
Germany's GDP Shrank In December Quarter
Germany's economy contracted in the final quarter of 2022 but expanded in 2022 despite the supply chain challenges and elevated energy prices and weakening consumer spending.
Germany's real GDP decreased 0.2% on the quarter in the final three months of 2022 from the upwardly revised 0.5% in the third quarter, the Federal Statistical Office or Destatis reported Monday.
In 2022, real GDP after adjusting for prices increased 1.8% and rose 1.9% after adjusting for prices and calendar days.
Italian Wholesale Prices Accelerated In December
Italian wholesale price indexes rose in December to 31.7%, accelerating for the second month in a row from 29.4% in the previous month, the Italian National
On a monthly basis prices rose 2.9% from 2.6% in November.
European Indexes Closed Lower
The DAX index fell 0.2% to 15,126.08, the CAC-40 index declined 0.2% to 7,082.01 and the FTSE 100 index rose 0.3% to 7,784.87.
Brent crude fell $1.25 to $85.26 a barrel and the Dutch natural gas TTF futures contract price inched up 2% to €56.55 per MWh.
The yield on 10-year German Bunds rose to 2.28%, French bonds increased to 2.75%, UK Gilts to 3.35% and Italian bonds advanced to 4.28%.
The euro increased to 1.089, the pound traded down to $1.238 and the Swiss franc inched higher to 92.32 U.S. cents.
Europe Movers
Renault SA declined 4.1% to €36.63 after the company agreed to adjust its holding structure in a partnership with Nissan in Japan.
After months of tense discussions, Nissan and Renault agreed to limit and neutralize their cross holdings and voting rights to 15%.
Renault will transfer 28.4% stake in a French trust but retain economic rights for those shares and any gains associated with the sale of the stake.
Renault acquired a stake in the near-bankrupt Nissan in early 1999 and Mitsubishi Motor acquired a stake in the alliance in 2016.
Renault also signed a pact with China-based Geely Automobile to manufacture powertrains for hybrid and internal combustion engine powered vehicles.
Separately, the French automaker struck a strategic deal with the U.S.-based Qualcomm for its new electric and software company, Ampere.
Philips SA rose 7% to €16.64 and the company said it plans to layoff another 6,000 following the recall of faulty respirators.
Prosus NV declined 6.3% to €73.89 after the company said it plans to cut staff reflecting macroeconomic headwinds.
Prosus and its South Africa-based parent Naspers Ltd plan to lay off 30% of its corporate staff, chief executive officer Bob van Dijk said in an interview.
888 Holdings plunged 28% to 74.85 pence after the company announced the departure of chief executive and executive director Itai Pazner.
DEUTZ AG increased 1.9% to €4.97 after the German internal combustion engine maker said it struck two deals with Daimler Truck Holdings AG to develop medium- and heavy-duty commercial engines.
Japan-Holland-US Alliance In Focus In Tokyo and China Trading
Asian markets lacked direction as investors awaited rate decisions and Chinese stocks closed mixed after a week-long holiday
The Chinese State Council reiterated its commitment to boost spending and health authorities announced a sharp decline in daily death rate related to Convid-19.
Investors were also cautious after the U.S., Japan and the Netherlands struck a deal to limit their exports of advanced semiconductor equipment to China.
The details of the pact are still not clear, but the alliance of three countries are expected to finalize the details of legislation in the next six months.
The restrictions are likely to include 28 nanometer ultraviolet lithography equipment used in the production of graphic chips, central processing units and high-speed networking chips, according to a research note prepared by Jeffries analyst Edison Lee.
Deep ultraviolet equipment made by the Japanese companies Canon and Nikon Corp could also come into restrictions, forcing production cuts at the leading Chinese chipmakers China Semiconductor Manufacturing International Corp and Hua Hong and Shanghai Huali Microelectronics Corp and ChangXin Memory Technologies, Lee said in the note.
Stocks in Japan closed higher after a volatile session. and semiconductor equipment stocks were in focus.
The Nikkei index increased 0.2% to 27,433.40 and the yen inched lower to 130.18 against the U.S. dollar.
Fanuc Corp increased 3.5% to ¥23,165.0 and Shin-Etsu Chemical 5% to ¥19,235.0 after the silicon wafer maker lifted its operating earnings outlook.
Covid-19 Flare-up Worries Chinese Health Authorities
Stocks in China closed mixed and about 300 million completed their holiday travel according to a statement by the ministry of tourism and culture.
Markets are worried that Covid-19 infections are likely to flare-up in the coming weeks in rural China and death rates are expected rise in Sichuan, Hebei, Yunnan and Guangxi provinces.
The Shanghai Composite index increased 0.1% to 3,269.32 and the Hang Seng index fell 2.7% to 22,069.73.
The Kospi average in Seoul decreased 1.35% to close at 2,450.47 after five days of advance in a row following the weakness in auto and technology stocks.
India Stocks React to Earnings
Stocks rebounded after a holiday-shortened week of volatile trading and Adani Group stocks remained under pressure.
Adani Enterprises is still looking to complete its secondary offering as early as this week and the Abu Dhabi, UAE controlled investment arm agreed to invest about $400 million.
International Holding Company will make its second investment after the company invested $2 billion in three companies controlled by the group last year.
The Sensex index increased 0.3% or 158.81 points to 59,500.41 and the Nifty index added 0.3% or 44.60 points to 17,648.95.
The rupee held firm near 81.47 against the U.S. dollar.
After the close of regular trading hours, Larsen & Toubro said quarterly net income increased 24% and Bharat Petroleum Corporation said quarterly net declined 36%.
Tech Mahindra said quarterly revenue topped $1 billion for the first time and revenue increased 19.9% but net income fell 5.3% from a year ago in the December quarter.
Bajaj Finance jumped 4% after the financial services provider reported a surge in the December quarter earnings.
European Markets Struggle Amid More Layoffs, German GDP Expanded In 2022
Bridgette Randall
30 Jan, 2023
Frankfurt
European markets closed mixed as investors braced for a busy week of corporate earnings and central bank policy meetings.
Semiconductor maker ASML Holding NV declined 2.7% in Amsterdam trading after the company said it is awaiting the details of legislation focused on export controls to China in a statement released on Friday.
Germany's GDP Shrank In December Quarter
Germany's economy contracted in the final quarter of 2022 but expanded in 2022 despite the supply chain challenges and elevated energy prices and weakening consumer spending.
Germany's real GDP decreased 0.2% on the quarter in the final three months of 2022 from the upwardly revised 0.5% in the third quarter, the Federal Statistical Office or Destatis reported Monday.
In 2022, real GDP after adjusting for prices increased 1.8% and rose 1.9% after adjusting for prices and calendar days.
Italian Wholesale Prices Accelerated In December
Italian wholesale price indexes rose in December to 31.7%, accelerating for the second month in a row from 29.4% in the previous month, the Italian National
On a monthly basis prices rose 2.9% from 2.6% in November.
European Indexes Closed Lower
The DAX index fell 0.2% to 15,126.08, the CAC-40 index declined 0.2% to 7,082.01 and the FTSE 100 index rose 0.3% to 7,784.87.
Brent crude fell $1.25 to $85.26 a barrel and the Dutch natural gas TTF futures contract price inched up 2% to €56.55 per MWh.
The yield on 10-year German Bunds rose to 2.28%, French bonds increased to 2.75%, UK Gilts to 3.35% and Italian bonds advanced to 4.28%.
The euro increased to 1.089, the pound traded down to $1.238 and the Swiss franc inched higher to 92.32 U.S. cents.
Europe Movers
Renault SA declined 4.1% to €36.63 after the company agreed to adjust its holding structure in a partnership with Nissan in Japan.
After months of tense discussions, Nissan and Renault agreed to limit and neutralize their cross holdings and voting rights to 15%.
Renault will transfer 28.4% stake in a French trust but retain economic rights for those shares and any gains associated with the sale of the stake.
Renault acquired a stake in the near-bankrupt Nissan in early 1999 and Mitsubishi Motor acquired a stake in the alliance in 2016.
Renault also signed a pact with China-based Geely Automobile to manufacture powertrains for hybrid and internal combustion engine powered vehicles.
Separately, the French automaker struck a strategic deal with the U.S.-based Qualcomm for its new electric and software company, Ampere.
Philips SA rose 7% to €16.64 and the company said it plans to layoff another 6,000 following the recall of faulty respirators.
Prosus NV declined 6.3% to €73.89 after the company said it plans to cut staff reflecting macroeconomic headwinds.
Prosus and its South Africa-based parent Naspers Ltd plan to lay off 30% of its corporate staff, chief executive officer Bob van Dijk said in an interview.
888 Holdings plunged 28% to 74.85 pence after the company announced the departure of chief executive and executive director Itai Pazner.
DEUTZ AG increased 1.9% to €4.97 after the German internal combustion engine maker said it struck two deals with Daimler Truck Holdings AG to develop medium- and heavy-duty commercial engines.
Wall Street Down 1% On Tech Earnings Anxieties and Rate Worries
Barry Adams
30 Jan, 2023
New York City
Stocks on Wall Street struggled and investors awaited rate decisions and prepared for a busy week of earnings.
Apple Inc, Amazon.com Inc, Meta Platforms and Alphabet Inc are among 400 companies scheduled to release earnings.
Monthly jobs report, consumer confidence data and activities in manufacturing and services sectors are scheduled to be released.
In Europe, Philips announced to lay off 6,000 staff as the company reorganizes its operations after the boom and bust of Covid-19 related products.
Electric vehicle makers brace for more price cuts after Ford followed the price cut announced by Tesla last month.
Ford Motor Company cut as much as 9% list prices on select models of Mustang-E after Tesla Inc offered buyer incentives in the U.S.
Investors also overlooked the latest covid-peak assessments from health regulators from China after independent local sources confirmed it is too soon to declare victory.
Benchmark indexes traded volatile with a downward bias and bond yields inched higher on the expectations of a smaller rate hike this week in the U.S. and the Euro Area.
The S&P 500 index declined 0.9% to 4,035.08 and the Nasdaq Composite index dropped 1.5% to 11,454.37.
Crude oil decreased $1.42 to $78.25 a barrel and natural gas futures declined 15 cents to $2.65 a barrel.
The yield on 2-year Treasury notes increased to 4.25%, 10-year Treasury notes inched up to 3.55%, 30-year Treasury notes to 3.66%.
Europe Markets Struggled, Germany's Fourth Quarter GDP Decreased
European markets closed mixed as investors braced for a busy week of corporate earnings and central bank policy meetings.
Semiconductor maker ASML Holding NV declined 2.7% in Amsterdam trading after the company said it is awaiting the details of legislation focused on export controls to China in a statement released on Friday.
Germany's real GDP decreased 0.2% on the quarter in the final three months of 2022 from the upwardly revised 0.5% in the third quarter. In 2022, real GDP increased 1.8%.
The DAX index fell 0.2% to 15,126.08, the CAC-40 index declined 0.2% to 7,082.01 and the FTSE 100 index rose 0.3% to 7,784.87.
Brent crude fell $1.25 to $85.26 a barrel and the Dutch natural gas TTF futures contract price inched up 2% to €56.55 per MWh.
The yield on 10-year German Bunds rose to 2.28%, French bonds increased to 2.75%, UK Gilts to 3.35% and Italian bonds advanced to 4.28%.
The euro increased to 1.089, the pound traded down to $1.238 and the Swiss franc inched higher to 92.32 U.S. cents.
Japan-Holland-US Alliance In Focus In Tokyo and China Trading
Asian markets lacked direction as investors awaited rate decisions and Chinese stocks closed mixed after a week-long holiday
The Chinese State Council reiterated its commitment to boost spending and health authorities announced a sharp decline in daily death rate related to Convid-19.
Investors were also cautious after the U.S., Japan and the Netherlands struck a deal to limit their exports of advanced semiconductor equipment to China.
The details of the pact are still not clear, but the alliance of three countries are expected to finalize the details of legislation in the next six months.
The restrictions are likely to include 28 nanometer ultraviolet lithography equipment used in the production of graphic chips, central processing units and high-speed networking chips, according to a research note prepared by Jeffries analyst Edison Lee.
Deep ultraviolet equipment made by the Japanese companies Canon and Nikon Corp could also come into restrictions, forcing production cuts at the leading Chinese chipmakers China Semiconductor Manufacturing International Corp and Hua Hong and Shanghai Huali Microelectronics Corp and ChangXin Memory Technologies, Lee said in the note.
Stocks in Japan closed higher after a volatile session. and semiconductor equipment stocks were in focus.
The Nikkei index increased 0.2% to 27,433.40 and the yen inched lower to 130.18 against the U.S. dollar.
Fanuc Corp increased 3.5% to ¥23,165.0 and Shin-Etsu Chemical 5% to ¥19,235.0 after the silicon wafer maker lifted its operating earnings outlook.
Covid-19 Flare-up Worries Chinese Health Authorities
Stocks in China closed mixed and about 300 million completed their holiday travel according to a statement by the ministry of tourism and culture.
Markets are worried that Covid-19 infections are likely to flare-up in the coming weeks in rural China and death rates are expected rise in Sichuan, Hebei, Yunnan and Guangxi provinces.
The Shanghai Composite index increased 0.1% to 3,269.32 and the Hang Seng index fell 2.7% to 22,069.73.
The Kospi average in Seoul decreased 1.35% to close at 2,450.47 after five days of advance in a row following the weakness in auto and technology stocks.
India Stocks React to Earnings
Stocks rebounded after a holiday-shortened week of volatile trading and Adani Group stocks remained under pressure.
Adani Enterprise is still looking to complete its secondary offering as early as this week and the Abu Dhabi, UAE controlled investment arm agreed to invest about $400 million.
International Holding Company will make its second investment after the company invested $2 billion in three companies controlled by the group last year.
The Sensex index increased 0.3% or 158.81 points to 59,500.41 and the Nifty index added 0.3% or 44.60 points to 17,648.95.
The rupee held firm near 81.47 against the U.S. dollar.
After the close of regular trading hours, Larsen & Toubro said quarterly net income increased 24% and Bharat Petroleum Corporation said quarterly net declined 36%.
Tech Mahindra said quarterly revenue topped $1 billion for the first time and revenue increased 19.9% but net income fell 5.3% from a year ago in the December quarter.
Bajaj Finance jumped 4% after the financial services provider reported a surge in the December quarter earnings.
Japan-Holland-US Alliance In Focus In Tokyo and China Trading
Arjun Pandit
30 Jan, 2023
Mumbai
Asian markets lacked direction as investors awaited rate decisions and Chinese stocks closed mixed after a week-long holiday.
Chinese State Council reiterated its commitment to boost spending and health authorities announced a sharp decline in daily death rate related to Convid-19.
Investors were also cautious after the U.S., Japan and the Netherlands struck a deal to limit their exports of advanced semiconductor equipment to China.
The details of the pact are still not clear, but the alliance of three countries are expected to finalize the details of legislation in the next six months.
The restrictions are likely to include 28 nanometer ultraviolet lithography equipment used in the production of graphic chips, central processing units and high-speed networking chips, according to a research note prepared by Jeffries analyst Edison Lee.
Deep ultraviolet equipment made by the Japanese companies Canon and Nikon Corp could also come into restrictions, forcing production cuts at the leading Chinese chipmakers China Semiconductor Manufacturing International Corp and Hua Hong and Shanghai Huali Microelectronics Corp and ChangXin Memory Technologies, Lee said in the note.
Stocks in Japan closed higher in after a volatile session.
The Nikkei index increased 0.2% to 27,433.40 and the yen inched lower to 130.18 against the U.S. dollar.
Fanuc Corp increased 3.5% to ¥23,165.0 and Shin-Etsu Chemical 5% to ¥19,235.0 after the silicon wafer maker lifted its operating earnings outlook.
Covid-19 Flare-up Worries Chinese Health Authorities
Stocks in China closed mixed and about 300 million completed their holiday travel according to a statement by the ministry of tourism and culture.
Markets are worried that Covid-19 infections are liked to flare-up in the coming weeks in rural China and death rates are expected rise in Sichuan, Hebei, Yunnan and Guangxi provinces.
The Shanghai Composite index increased 0.1% to 3,269.32 and the Hang Seng index fell 2.7% to 22,069.73.
The Kospi average in Seoul decreased 1.35% to close at 2,450.47 after five days of advance in a row following the weakness in auto and technology stocks.
India Stocks React to Earnings
Stocks rebounded after a holiday-shortened week of volatile trading and Adani Group stocks remained under pressure.
Adani Enterprise is still looking to complete its secondary offering as early as this week and the Abu Dhabi controlled investment arm agreed to invest about $400 million.
International Holding Company will make its second investment after the company invested $2 billion in three companies controlled by the group last year.
The Sensex index increased 0.3% or 158.81 points to 59,500.41 and the Nifty index added 0.3% or 44.60 points to 17,648.95.
The rupee held firm near 81.47 against the U.S. dollar.
After the close of regular trading hours, Larsen & Toubro said quarterly net income increased 24% and Bharat Petroleum Corporation said quarterly net declined 36%.
Tech Mahindra said quarterly revenue topped $1 billion for the first time and revenue increased 19.9% but net income fell 5.3% from a year ago in the December quarter.
Bajaj Finance jumped 4% after the financial services provider reported a surge in the December quarter earnings.
Wall Street Extends Weekly Advance Ahead Of Rate Hikes Next Week
Barry Adams
27 Jan, 2023
New York City
U.S. stocks extended weekly gains as tech and energy sector stocks led gainers in a volatile week.
Investors reacted to the latest earnings news and evaluated corporate performance in the light of looming economic slowdown and continued hike in interest rates.
Consumer spending slowed in December raising the prospect of negative economic growth in the first quarter as consumers struggled with inflation broadening from goods to services.
Investors turned cautions after December personal spending declined but the key measure of core inflation stayed elevated, highlighting the tough road for the policymakers in cooling elevated inflation.
The core PCE index cooled for the third month in a row to 4.4% but stayed ahead of the Fed's target of 2%, despite seven rate hikes in 2022.
The decline in inflation gauge was welcomed by investors but consumer spending declined in December, the key driver of the U.S. economy also put investors on alert.
Consumer Inflation Cools but Stay Elevated
U.S. personal spending decreased 0.2% in December and personal income rose 0.2% from the previous month, the Bureau of Economic Analysis reported Friday.
Personal income increased $49.5 billion or 0.2% in December and disposable personal income increased $49.2 billion or 0.3% and personal consumption expenditures or PCE decreased $41.6 billion or 0.2%.
Personal consumption declined for the second month in a row.
Price consumption index, a measure of inflation faced by consumers, rose 5.0% and the core index increased 4.4% from a year ago.
Pending Homes Sales Unexpectedly Rebounded
Pending home sales in December rose unexpectedly in December, the National Association of Realtors said.
U.S. pending home sales rose 2.5% in December from the previous month after falling 2.6% in November. Sales plunged 33.8% from a year ago.
Sales in the South increased 6.1% and rose 6.4% in the West but declined 6.5% in the Northeast and eased 0.3% in the Midwest.
Home sales have been slowing tracking the rise in mortgage rates after the Federal Reserve lifted rates seven times in 2022.
U.S. Indexes In Review
The S&P 500 index increased 0.2% to 4,070.56 and the Nasdaq Composite index advanced 0.95% to 11,621.71.
For the week, the S&P 500 index increased 2.4% and the Nasdaq Composite index soared 4.3% and advanced for the fourth week in a row.
Crude oil fell $1.69 to $79.31 a barrel and natural gas futures increased 1 cent $2.85 a thermal unit.
The yield on 2-year Treasury notes increased to 4.21%, 10-year Treasury notes rose to 3.51% and 30-year Treasury bonds inched higher to 3.63%.
U.S. Stock Movers
American Express soared 12.4% to $175.15 after the financial service company's earnings were ahead of expectations and the company issued an upbeat guidance.
Fourth quarter total revenue net of interest rates increased 17% to $14.2 billion and net income declined to $1.6 billion from $1.7 billion a year ago.
Diluted earnings per share fell to $2.07 from $2.18 in the previous year.
American Express said 2023 revenues are expected to rise between 15% and 17% and earnings per share in the range between $11.0 and $11.40.
Intel Corporation dropped 10% to $30.09 after the chipmaker reported a sharp fall in revenues and a loss and demand in the PC market is likely to persist in the current quarter.
Intel said fourth quarter revenue plunged 32% to $14.0 billion and swung to a net loss of $0.7 billion from a profit of $4.6 billion.
Diluted earnings per share was a loss of 16 cents compared to $1.13 a year ago.
Mastercard Inc edged slightly lower to $376.91 and the payment processor said cross border volume soared on the back of resilient consumer spending.
Mastercard said in local currencies cross border volume soared 31% and gross dollar volume increased 8% and repurchased 7.4 million shares at a cost of $2.4 billion and paid $473 million in dividends.
Mastercard said fourth quarter revenue increased 12% to $5.8 billion and net income rose 6% to $2.5 billion and diluted earnings per share increased to $2.62 from $2.41 a year ago.
Visa Inc increased 2.2% to $229.65 after the payment processor said resilient consumer spending in the face of higher prices drove the increase in quarterly transactions.
Visa Inc said revenue in the December quarter increased 12% to $7.9 billion and net income rose 6% to $4.2 billion and diluted earnings per share jumped to $1.99 from $1.84 a year ago.
Tesla Inc soared 11.0% to $177.90 and extended a two-day surge to 33% after the electric vehicle maker reported record quarterly revenue, earnings, production and deliveries.
Europe's Broad Money Supply Growth Slowed
European markets advanced in cautious trading ahead of rate decisions from three central banks and the deceleration in broad money supply growth signaled the impact of higher rates.
The European Central Bank and Bank of England are expected to announce rate decisions on Thursday following the rate decisions from the U.S. Federal Reserve on Wednesday.
The challenging economic conditions were highlighted in the latest monetary aggregate monthly report released by the European Central Bank.
The annual growth rate of the broad monetary aggregate M3 fell to 4.1% in December 2022 from 4.8% in November, averaging 4.7% in the three months up to December.
European Indexes Closed Higher In Cautious Trading
Investors turned cautious after the release of the U.S. personal income and spending report.
Real personal spending declined for the second month in a row in December, the Bureau of Economic Analysis said Friday.
Personal income growth slowed to 0.2% in December and spending declined 0.2%.
The DAX index increased 13.01 points to 15,145.86, the CAC-40 index fell 11.68 points to 7,084.31 and the FTSE 100 index rose 4.04 points to 7,765.15.
For the week, the DAX increased 0.9%, the CAC-40 rose 1.5% but the FTSE 100 index was fractionally lower.
The euro inched down to $1.08, the British pound edged lower to $1.238 and the Swiss franc weakened to 92.06 U.S. cents.
Brent crude oil edged 64 cents to $86.84 a barrel and the Dutch TTF natural gas futures increased 2.4% to €56.16 per MWh.
Bond yields advanced after the release of the U.S. personal spending and income report indicating stubborn inflation.
The yield on 10-year German Bunds rose to 2.24%, French bonds increased to 2.70%, UK gilts to 3.33% and Italian bonds to 4.22%.
Europe Stock Movers
LVMH was nearly unchanged at €801.0 after the luxury products maker reported a 9% rise in organic sales in the fourth quarter.
Fourth quarter revenue increased to €22.7 billion and full-year 2022 revenues rose to 23% to €79.2 billion and net income from recurring operations increased 23% to €21.1 billion.
Net profit increased 17% to €14.1 billion and operating free cash flow surpassed €10 billion.
H&M Hennes & Mauritz AB decreased 4.1% to Swedish krona 125.80 after the fashion retailer's operating profit missed expectations set by some investors.
In Frankfurt, Heidelberg Materials increased 2.7% to €61.72 and Adidas increased 2.1% to €148.30.
J Sainsbury Plc increased 4.7% to 250.75 pence and the company confirmed that an investment group Bestway Group intends to acquire 3.45% stake in the retailer for "investment purposes and looks forward to supporting the executive management team."
Rolls Royce Holdings PLC decreased 3.6% to 109.38 pence after the recently appointed chief executive in a meeting with employees made cautious remarks.
"Every investment we make, we destroy value" and added "we underperform every key competitor," said Tufan Erginbilgic, the former BP executive who replaced Warren East as chief executive at the start of 2023.
Erginbilgic is expected to announce sweeping changes and restructure operations and.
The largest engineering company in the UK has lost nearly two-third of its market value in the last five years, a critically important company for the UK government for its military capabilities.
Despite the two restructurings carried out by the company since 2018, the aerospace company has struggled after the pandemic halted worldwide air travel and the rebound since then has been slow.
The company's revenues are tied to the operating aircraft engine hours, linking the financial performance to the ups and downs of the air travel industry.
Shippers and Exports Advance In Tokyo
Asian markets traded higher following the strong-than-expected fourth quarter U.S. GDP data on Thursday.
Market sentiment was boosted after the largest economy in the world expanded at 2.9% annual pace in the fourth quarter and increased 2.1% in full-year 2022.
Shin Etsu Chemical soared 4%, Yaskawa Electric increased 3% and Rakuten Inc increased 2%.
The Nikkei index increased 19.81 points to 27,382.56 and the yen firmed to 129.91 against the U.S. dollar.
Shipping companies and exporters were among the leading gainers.
Nippon Yusen KK Mitsui OSK Lines and Kawasaki Kisen Kaisha increased 3%.
Panasonic Corp, Fuji Electric, Sony Group and Olympus Corp increased between 1.7% and 3%.
Mainland China markets were closed on Friday and markets are set to reopen on Monday.
The Hang Seng index in Hong Kong increased 0.5% to 22,688.90 following the US GDP data report.
India Awaits Union Budget
Benchmark indexes in Mumbai declined after Adani Group stocks dropped more than 5% for the second day following the negative report released by the U.S.-based short seller Hindenburg Research.
Investors generally ignored the allegations of fraud and tight relationship with government-controlled banks and offshore accounts, which have been widely covered by local media in the past.
Adani Enterprises is set to complete its $2.5 billion secondary offering in the next two weeks.
State Bank of India, IndusInd Bank and ICICI Bank declined between 3% and 5% on the worries of debt exposure to Adani Group.
Investors also looked ahead to the Union Budget and hoped that the government would provide additional incentives for manufacturing companies and increase a minimum threshold for personal income tax.
The Sensex index dropped 1.5% or 874.16 points to 59,330.90 and the Nifty index declined 1.6% or 287.60 points to 17,604.35.
The Indian rupee weakened to 81.54 against the U.S. dollar.
Broad Money Supply Growth Slowed In Europe, Rolls Royce Chief Warns of "Last Chance"
Bridgette Randall
27 Jan, 2023
Frankfurt
European markets advanced in cautious trading ahead of rate decisions from three central banks and the deceleration in broad money supply growth signaled the impact of higher rates.
The European Central Bank and Bank of England are expected to announce rate decisions on Thursday following the rate decisions from the U.S. Federal Reserve on Wednesday.
The challenging economic conditions were highlighted in the latest monetary aggregate monthly report released by the European Central Bank.
The annual growth rate of the broad monetary aggregate M3 fell to 4.1% in December 2022 from 4.8% in November, averaging 4.7% in the three months up to December.
Investors turned cautious after the release of the U.S. personal income and spending report.
Real personal spending declined for the second month in a row in December, the Bureau of Economic Analysis said Friday.
Personal income growth slowed to 0.2% in December and spending declined 0.2%.
European Indexes Close Higher In Cautious Trading
The DAX index increased 13.01 points to 15,145.86, the CAC-40 index fell 11.68 points to 7,084.31 and the FTSE 100 index rose 4.04 points to 7,765.15.
For the week, the DAX increased 0.9%, the CAC-40 rose 1.5% but the FTSE 100 index was fractionally lower.
The euro inched down to $1.08, the British pound edged lower to $1.238 and the Swiss franc weakened to 92.06 U.S. cents.
Brent crude oil edged 64 cents to $86.84 a barrel and the Dutch TTF natural gas futures increased 2.4% to €56.16 per MWh.
Bond yields advanced after the release of the U.S. personal spending and income report indicating stubborn inflation.
The yield on 10-year German Bunds rose to 2.24%, French bonds increased to 2.70%, UK gilts to 3.33% and Italian bonds to 4.22%.
Europe Stock Movers
LVMH was nearly unchanged at €801.0 after the luxury products maker reported a 9% rise in organic sales in the fourth quarter.
Fourth quarter revenue increased to €22.7 billion and full-year 2022 revenues rose to 23% to €79.2 billion and net income from recurring operations increased 23% to €21.1 billion.
Net profit increased 17% to €14.1 billion and operating free cash flow surpassed €10 billion.
H&M Hennes & Mauritz AB decreased 4.1% to Swedish krona 125.80 after the fashion retailer's operating profit missed expectations set by some investors.
In Frankfurt, Heidelberg Materials increased 2.7% to €61.72 and Adidas increased 2.1% to €148.30.
J Sainsbury Plc increased 4.7% to 250.75 pence and the company confirmed that an investment group Bestway Group intends to acquire 3.45% stake in the retailer for "investment purposes and looks forward to supporting the executive management team."
Rolls Royce Holdings PLC decreased 3.6% to 109.38 pence after the recently appointed chief executive in a meeting with employees made cautious remarks.
"Every investment we make, we destroy value" and added "we underperform every key competitor," said Tufan Erginbilgic, the former BP executive who replaced Warren East as chief executive at the start of 2023.
Erginbilgic is expected to announce sweeping changes and restructure operations and.
The largest engineering company in the UK has lost nearly two-third of its market value in the last five years, a critically important company for the UK government for its military capabilities.
Despite the two restructurings carried out by the company since 2018, the aerospace company has struggled after the pandemic halted worldwide air travel and the rebound since then has been slow.
The company's revenues are tied to the operating aircraft engine hours, linking the financial performance to the ups and downs of the air travel industry.
Europe Movers: H&M, J Sainsbury, LVMH, Rolls Royce
Bridgette Randall
27 Jan, 2023
Frankfurt
LVMH Moët Hennessy Louis Vuitton was nearly unchanged at €801.0 after the luxury products maker reported a 9% rise in organic sales in the fourth quarter.
Fourth quarter revenue increased to €22.7 billion and full-year 2022 revenues rose to 23% to €79.2 billion and net income from recurring operations increased 23% to €21.1 billion.
Net profit increased 17% to €14.1 billion and operating free cash flow surpassed €10 billion.
H&M Hennes & Mauritz AB decreased 4.1% to Swedish krona 125.80 after the fashion retailer's operating profit missed expectations set by some investors.
In Frankfurt, Heidelberg Materials increased 2.7% to €61.72 and Adidas increased 2.1% to €148.30.
J Sainsbury Plc increased 4.7% to 250.75 pence and the company confirmed that an investment group Bestway Group intends to acquire 3.45% stake in the retailer for "investment purposes and looks forward to supporting the executive management team."
Rolls Royce Holdings PLC decreased 3.6% to 109.38 pence after the recently appointed chief executive in a meeting with employees made cautious remarks.
"Every investment we make, we destroy value" and added "we underperform every key competitor," said Tufan Erginbilgic, the former BP executive who replaced Warren East as chief executive at the start of 2023.
Erginbilgic is expected to announce sweeping changes and a plan to restructure operations at the largest engineering company in the UK.
Rolls Royce has lost two-third of its market value in the last five years.
Investors On Fence After Consumer Spending and Inflation Eased
Barry Adams
27 Jan, 2023
New York City
U.S. stocks traded higher in volatile fashion as investors reviewed earnings in the oil, financial services and tech sectors.
Benchmark indexes traded higher and market participants factored smaller rate hikes after the meeting of policymakers next week.
American Express soared following the positive 2023 outlook and chip stocks advanced despite Intel reporting weak results.
Market advance was concentrated in a narrow list of large cap stocks and trading activity in small and mid cap stocks was weak.
Investors turned cautions after December personal spending declined but the key measure of core inflation stayed elevated, highlighting tough road for the policymakers in controlling elevated inflation.
The core PCE index cooled for the third month in a row to 4.4% but stayed ahead of the Fed's target of 2%, despite seven rate hikes in 2022.
The decline in inflation gauge was welcomed by investors but consumer spending declined in December, the key driver of the U.S. economy.
Consumer Inflation Cools but Stay Elevated
U.S. personal spending decreased 0.2% in December and personal income rose 0.2% from the previous month, the Bureau of Economic Analysis reported Friday.
Personal income increased $49.5 billion or 0.2% in December and disposable personal income increased $49.2 billion or 0.3% and personal consumption expenditures or PCE decreased $41.6 billion or 0.2%.
Personal consumption declined for the second month in a row.
Price consumption index, a measure of inflation faced by consumers, rose 5.0% and the core index increased 4.4% from a year ago.
Pending Homes Sales Unexpectedly Rebounded
Pending home sales in December rose unexpectedly in December, the National Association of Realtors said.
U.S. pending home sales rose 2.5% in December from the previous month after falling 2.6% in November. Sales plunged 33.8% from a year ago.
Sales in the South increased 6.1% and rose 6.4% in the West but declined 6.5% in the Northeast and eased 0.3% in the Midwest.
Home sales have been slowing tracking the rise in mortgage rates after the Federal Reserve lifted rates seven times in 2022.
U.S. Indexes In Review
The S&P 500 index increased 0.2% to 4,068.11 and the Nasdaq Composite index advanced 0.5% to 11,581.43.
Crude oil fell 92 cents to $80.10 a barrel and natural gas futures was nearly unchanged at $2.84 a thermal unit.
The yield on 2-year Treasury notes increased to 4.21%, 10-year Treasury notes rose to 3.52% and 30-year Treasury bonds inched higher to 3.63%.
U.S. Stock Movers
American Express soared 12.4% to $175.15 after the financial service company's earnings were ahead of expectations and the company issued an upbeat guidance.
Fourth quarter total revenue net of interest rates increased 17% to $14.2 billion and net income declined to $1.6 billion from $1.7 billion a year ago.
Diluted earnings per share fell to $2.07 from $2.18 in the previous year.
American Express said 2023 revenues are expected to rise between 15% and 17% and earnings per share in the range between $11.0 and $11.40.
Intel Corporation dropped 10% to $30.09 after the chipmaker reported a sharp fall in revenues and a loss and demand in the PC market is likely to persist in the current quarter.
Intel said fourth quarter revenue plunged 32% to $14.0 billion and swung to a net loss of $0.7 billion from a profit of $4.6 billion.
Diluted EPS was a loss of 16 cents compared to $1.13 a year ago.
Mastercard Inc edged slightly lower to $376.91 and the payment processor said cross border volume soared on the back of resilient consumer spending.
Mastercard said in local currencies cross border volume soared 31% and gross dollar volume increased 8% and repurchased 7.4 million shares at a cost of $2.4 billion and paid $473 million in dividends.
Mastercard said fourth quarter revenue increased 12% to $5.8 billion and net income rose 6% to $2.5 billion and diluted earnings per share increased to $2.62 from $2.41 a year ago.
Visa Inc increased 2.2% to $229.65 after the payment processor said resilient consumer spending in the face of higher prices drove the increase in quarterly transactions.
Visa Inc said revenue in the December quarter increased 12% to $7.9 billion and net income rose 6% to $4.2 billion and diluted earnings per share jumped to $1.99 from $1.84 a year ago.
European Indexes Cautions Ahead of Rate Decisions
European markets advanced in cautious trading ahead of rate decisions from three central banks in the world.
The European Central Bank and Bank of England are expected to announce rate decisions on Thursday following the rate decisions from the U.S. Federal Reserve on Wednesday.
The DAX index increased 13.01 points to 15,145.86, the CAC-40 index fell 11.68 points to 7,084.31 and the FTSE 100 index rose 4.04 points to 7,765.15.
For the week, the DAX increased 0.9%, the CAC-40 rose 1.5% but the FTSE 100 index was fractionally lower.
LVMH gained after the luxury products maker reported a 9% rise in sales in the fourth quarter and fashion retailer H&M's operating profit misses expectations set by some investors.
The euro inched down to $1.08, the British pound edged lower to $1.238 and the Swiss franc weakened to 92.06 U.S. cents.
Brent crude oil edged 64 cents to $86.84 a barrel and the Dutch TTF natural gas futures increased 2.4% to €56.16 per MWh.
The yield on 10-year German Bunds rose to 2.24%, French bonds increased to 2.70%, UK gilts to 3.33% and Italian bonds to 4.22%.
Shippers and Exports Advance In Tokyo
Asian markets traded higher following the strong-than-expected fourth quarter U.S. GDP data on Thursday.
Market sentiment was boosted after the largest economy in the world expanded at 2.9% annual pace in the fourth quarter and increased 2.1% in full-year 2022.
Shin Etsu Chemical soared 4%, Yaskawa Electric increased 3% and Rakuten Inc increased 2%.
The Nikkei index increased 19.81 points to 27,382.56 and the yen firmed to 129.91 against the U.S. dollar.
Shipping companies and exporters were among the leading gainers.
Nippon Yusen KK Mitsui OSK Lines and Kawasaki Kisen Kaisha increased 3%.
Panasonic Corp, Fuji Electric, Sony Group and Olympus Corp increased between 1.7% and 3%.
Mainland China markets were closed on Friday and markets are set to reopen on Monday.
The Hang Seng index in Hong Kong increased 0.5% to 22,688.90 following the US GDP data report.
India Awaits Union Budget
Benchmark indexes in Mumbai declined after Adani Group stocks dropped more than 5% for the second day following the negative report released by the U.S.-based short seller Hindenburg Research.
Investors generally ignored the allegations of fraud and tight relationship with government-controlled banks and offshore accounts, which have been widely covered by local media in the past.
Adani Enterprises is set to complete its $2.5 billion secondary offering in the next two weeks.
State Bank of India, IndusInd Bank and ICICI Bank declined between 3% and 5% on the worries of debt exposure to Adani Group.
Investors also looked ahead to the Union Budget and hoped that the government would provide additional incentives for manufacturing companies and increase a minimum threshold for personal income tax.
The Sensex index dropped 1.5% or 874.16 points to 59,330.90 and the Nifty index declined 1.6% or 287.60 points to 17,604.35.
The Indian rupee weakened to 81.54 against the U.S. dollar.
Asian Markets Rebound Following US GDP Data, India Awaits Union Budget
Arjun Pandit
27 Jan, 2023
Mumbai
Asian markets traded higher following the strong-than-expected fourth quarter U.S. GDP data on Thursday.
Market sentiment was boosted after the largest economy in the world expanded at 2.9% annual pace in the fourth quarter and increased 2.1% in full-year 2022.
Shin Etsu Chemical soared 4%, Yaskawa Electric increased 3% and Rakuten Inc increased 2%.
The Nikkei index increased 19.81 points to 27,382.56 and the yen firmed to 129.91 against the U.S. dollar.
For the week, the Nikkei index increased 35.
Shipping companies and exporters were among the leading gainers.
Nippon Yusen KK Mitsui OSK Lines and Kawasaki Kisen Kaisha increased 3%.
Panasonic Corp, Fuji Electric, Sony Group and Olympus Corp increased between 1.7% and 3%.
Mainland China markets were closed on Friday and markets are set to reopen on Monday.
The Hang Seng index in Hong Kong increased 0.5% to 22,688.90 following the US GDP data report. For the week, the index gained 3%.
The Korean Stock Exchange's Kospi Index advanced 15.37 points or 0.6% to close trading at 2,484.02.
Sensex In India Trades Lower, Adani Group and Banks Fall
Benchmark indexes in Mumbai declined after Adani Group stocks dropped more than 5% for the second day following the negative report released by the U.S.-based short seller Hindenburg Research.
Investors generally ignored the allegations of fraud and tight relationship with government-controlled banks and offshore accounts, which have been widely covered by local media in the past.
Adani Enterprises is set to complete its $2.5 billion secondary offering in the next two weeks.
State Bank of India, IndusInd Bank and ICICI Bank declined between 3% and 5% on the worries of debt exposure to Adani Group.
Investors also looked ahead to Union Budget and hoping that the government will provide clarity on incentives for manufacturing companies and increase for a minimum threshold for personal income tax.
The Sensex index dropped 1.5% or 874.16 points to 59,330.90 and the Nifty index declined 1.6% or 287.60 points to 17,604.35.
For the week, the indexes declined 2.2%.
The Indian rupee weakened to 81.54 against the U.S. dollar.