Market Update
Eurozone Retail Sales Growth Slowed and German Factory Orders Advanced In March
Bridgette Randall
07 May, 2025
London
European markets traded down on Wednesday, and investors reviewed the fresh batch of earnings.
Benchmark indexes in Frankfurt, Paris, Milan, and London declined, and investors awaited rate decisions from the U.S. Federal Reserve and the Bank of England.
On the economic front, German factory orders advanced in March, and retail sales in the eurozone edged up.
Germany's new orders in the manufacturing sector increased by 3.6% in March from the previous month, adjusted for seasonal and calendar effects. Excluding large orders, new orders were 3.2% higher than in the previous month.
Eurozone retail sales in March decreased from the previous month and increased at an annual pace from a year ago, according to Eurostat.
Retail sales declined by 0.1% from the previous month and rose at a slower pace of 1.5% from a year ago.
On an annual basis, food, beverage, and tobacco sales increased by 0.6%; non-food store sales, excluding fuel, rose 2.3%, and gas stations' fuel sales rose 2.3%.
Europe Indexes and Yields
The DAX index decreased by 0.02% to 23,245.47, the CAC-40 index edged lower 0.5% to 7,659.82, and the FTSE 100 index declined 0.3% to 8,573.71.
The yield on 10-year German bonds inched higher to 2.53%, French bonds increased to 3.26%, the UK gilts moved down to 4.50%, and Italian bonds edged lower to 3.62%.
The euro decreased to $1.14; the British pound was lower at $1.33; and the U.S. dollar was higher and traded at 82.40 Swiss cents.
Brent crude increased $0.79 to $62.94 a barrel, and the Dutch TTF natural gas was lower by €0.25 to €34.67 per MWh.
Europe Stock Movers
Fresenius Medical Care AG jumped 3.5% to €50.30, and the German dialysis service provider reported mixed quarterly results.
BMW AG added 1.8% to €76.22 despite the luxury carmaker reporting a 23% fall in earnings in the first quarter.
Siemens Healthineers AG decreased 0.4% to €47.19 after the German medical company lowered the bottom end of its annual earnings outlook.
Novo Nordisk AS edged up 2.6% to DKK 455.50 after the pharmaceutical company reported better-than-expected net income and lowered its full-year sales growth outlook.
Zalando SE declined 1.8% to €30.59, despite the German online fashion retailer reporting strong first-quarter results and a sharp increase in gross merchandise volume.
Eurozone Retail Sales Growth Slowed and German Factory Orders Advanced In Mar
Bridgette Randall
07 May, 2025
London
European markets traded down on Wednesday, and investors reviewed the fresh batch of earnings.
Benchmark indexes in Frankfurt, Paris, Milan, and London declined, and investors awaited rate decisions from the U.S. Federal Reserve and the Bank of England.
On the economic front, German factory orders advanced in March, and retail sales in the eurozone edged up.
Germany's new orders in the manufacturing sector increased by 3.6% in March from the previous month, adjusted for seasonal and calendar effects. Excluding large orders, new orders were 3.2% higher than in the previous month.
Eurozone retail sales in March decreased from the previous month and increased at an annual pace from a year ago, according to Eurostat.
Retail sales declined by 0.1% from the previous month and rose at a slower pace of 1.5% from a year ago.
On an annual basis, food, beverage, and tobacco sales increased by 0.6%; non-food store sales, excluding fuel, rose 2.3%, and gas stations' fuel sales rose 2.3%.
Europe Indexes and Yields
The DAX index decreased by 0.02% to 23,245.47, the CAC-40 index edged lower 0.5% to 7,659.82, and the FTSE 100 index declined 0.3% to 8,573.71.
The yield on 10-year German bonds inched higher to 2.53%, French bonds increased to 3.26%, the UK gilts moved down to 4.50%, and Italian bonds edged lower to 3.62%.
The euro decreased to $1.14; the British pound was lower at $1.33; and the U.S. dollar was higher and traded at 82.40 Swiss cents.
Brent crude increased $0.79 to $62.94 a barrel, and the Dutch TTF natural gas was lower by €0.25 to €34.67 per MWh.
Europe Stock Movers
Fresenius Medical Care AG jumped 3.5% to €50.30, and the German dialysis service provider reported mixed quarterly results.
BMW AG added 1.8% to €76.22 despite the luxury carmaker reporting a 23% fall in earnings in the first quarter.
Siemens Healthineers AG decreased 0.4% to €47.19 after the German medical company lowered its bottom end of its annual earnings outlook.
Novo Nordisk AS edged up 2.6% to DKK 455.50 after the pharmaceutical company reported better-than-expected net income and lowered its full-year sales growth outlook.
Zalando SE declined 1.8% to €30.59, despite the German online fashion retailer reporting strong first-quarter results and a sharp increase in gross merchandise volume.
U.S. Movers: AMD, Arista Networks, Electronic Arts, Gartner, Marriott
Scott Peters
07 May, 2025
New York City
Advanced Micro Devices Inc. gained 1.7% to $100.32 after the high performance and adaptive computing company reported first-quarter 2025 results.
Revenue jumped to $7.44 billion from $5.47 billion, net income edged up to $709 million from $123 million, and diluted earnings per share rose to 44 cents from 7 cents a year ago.
Data center segment revenue was up 57% in the quarter, client sales were up 68%, gaming sales were down 30%, and embedded segment sales were down 3% from the prior year.
The company guided second-quarter revenue to be approximately $7.4 billion, plus or minus $300 million, compared to $5.8 billion in 2024, and non-GAAP gross margin is estimated to be 43%, compared to 53% in the prior year.
Arista Networks Inc. dropped 3.8% to $87.32 after the computer networking company reported first-quarter 2025 results.
Revenue edged up to $2.00 billion from $1.57 billion, net income jumped to $813.8 million from $637.7 million, and diluted earnings per share rose to 64 cents from 50 cents a year ago.
The company authorized an additional program to repurchase up to $1.5 billion.
Arista estimated second-quarter revenue to be approximately $2.1 billion, compared to $1.69 billion in the prior year; non-GAAP gross margin to be 63%, compared to 65.4%; and non-GAAP operating margin to be 46%, compared to 46.5% a year earlier.
Electronic Arts Inc. advanced 5.2% to $162.55 after the video game company reported fourth-quarter 2025 results.
Revenue jumped to $1.89 billion from $1.78 billion, net income climbed to $254 million from $182 million, and diluted earnings per share rose to 98 cents from 67 cents a year ago.
The company proposed a quarterly cash dividend of 19 cents per share, payable on June 18 to shareholders on record as of May 28.
Electronic Arts guided fiscal 2026 revenue to be between $7.10 billion and $7.50 billion, compared to $7.46 billion in fiscal 2025; net income to be between $795 million and $974 million, compared to $1.12 billion; and diluted earnings per share to be between $3.09 and $3.79, compared to $4.25 a year ago.
For the first quarter of fiscal 2026, the company estimated revenue to be between $1.55 billion and $1.65 billion, compared to $1.66 billion in 2025; net income to be between $125 million and $169 million, compared to $280 million; and diluted earnings per share to be between 49 cents and 66 cents, compared to $1.04 in the prior year.
Marriott International surged 2.6% to $253.83 after the hotel chain operator reported first-quarter 2025 results.
Net fee revenue jumped 5% to $1.28 billion from $1.19 billion, net income edged up 18% to $665 million from $564 million, and diluted earnings per share rose 24% to $2.39 from $1.93 a year ago.
The company added 12,200 net rooms during the quarter, an increase of 4.6% from a year earlier.
At the end of the quarter, Marriott’s worldwide development pipeline totaled 3,800 properties and over 587,000 rooms, an increase of 7.4% from the prior year.
The company repurchased 2.8 million shares for $0.8 billion in the quarter, and year to date through April 29, the company has returned over $1.2 billion to shareholders through dividends and share repurchases.
Marriott guided second-quarter revenue to be between $1.38 billion and $1.39 billion, compared to $1.34 billion in 2024, and adjusted diluted earnings per share to be between $2.57 and $2.62, compared to $2.50 a year earlier.
The hotel company estimated revenue per available room in the second quarter to grow between 1.5% and 2.5% from the prior year.
For the full year 2025, the company expects revenue to be between $5.36 billion and $5.47 billion, compared to $5.17 billion in 2024, and adjusted diluted earnings per share to be between $9.82 and $10.19, compared to $9.33 a year ago.
Marriott expects net rooms to grow nearly 5%, with worldwide revenue per available room increasing between 1.5% and 3.5% in 2025.
Gartner Inc. advanced 2.4% to $437.11 after the research and advisory company reported first-quarter 2025 results.
Revenue jumped to $1.53 billion from $1.47 billion, net income inched up to $210.9 million from $210.5 million, and diluted earnings per share rose to $2.71 from $2.67 a year ago.
The company said operating cash flow increased 66% to $314 million and free cash flow edged up 73.3% to $288 million, as contract value climbed 7%.
The company guided for the medium term its research segment to grow between 12% and 16%, conferences up 5% to 10%, and consulting up 3% to 8%, while total revenue is estimated to increase by at least 10%.
The full-year revenue outlook in the research segment was narrowed to $5.33 billion as of May 6 from $5.36 billion as of February 4, bringing down the total revenue estimate to $6.53 billion from $6.55 billion, respectively.
The company estimated full-year adjusted earnings per share to be $11.70, revised upwardly from $11.45 earlier this year.
In comparison, in 2024 revenue was $6.3 billion, and adjusted earnings per share were $14.09.
U.S. Movers: AMD, Arista Networks, Electronic Arts, Gartner, Marriott
Scott Peters
07 May, 2025
New York City
Advanced Micro Devices Inc. gained 1.7% to $100.32 after the high performance and adaptive computing company reported first-quarter 2025 results.
Revenue jumped to $7.44 billion from $5.47 billion, net income edged up to $709 million from $123 million, and diluted earnings per share rose to 44 cents from 7 cents a year ago.
Data center segment revenue was up 57% in the quarter, client sales were up 68%, gaming sales were down 30%, and embedded segment sales were down 3% from the prior year.
The company guided second-quarter revenue to be approximately $7.4 billion, plus or minus $300 million, compared to $5.8 billion in 2024, and non-GAAP gross margin is estimated to be 43%, compared to 53% in the prior year.
Arista Networks Inc. dropped 3.8% to $87.32 after the computer networking company reported first-quarter 2025 results.
Revenue edged up to $2.00 billion from $1.57 billion, net income jumped to $813.8 million from $637.7 million, and diluted earnings per share rose to 64 cents from 50 cents a year ago.
The company authorized an additional program to repurchase up to $1.5 billion.
Arista estimated second-quarter revenue to be approximately $2.1 billion, compared to $1.69 billion in the prior year; non-GAAP gross margin to be 63%, compared to 65.4%; and non-GAAP operating margin to be 46%, compared to 46.5% a year earlier.
Electronic Arts Inc. advanced 5.2% to $162.55 after the video game company reported fourth-quarter 2025 results.
Revenue jumped to $1.89 billion from $1.78 billion, net income climbed to $254 million from $182 million, and diluted earnings per share rose to 98 cents from 67 cents a year ago.
The company proposed a quarterly cash dividend of 19 cents per share, payable on June 18 to shareholders on record as of May 28.
Electronic Arts guided fiscal 2026 revenue to be between $7.10 billion and $7.50 billion, compared to $7.46 billion in fiscal 2025; net income to be between $795 million and $974 million, compared to $1.12 billion; and diluted earnings per share to be between $3.09 and $3.79, compared to $4.25 a year ago.
For the first quarter of fiscal 2026, the company estimated revenue to be between $1.55 billion and $1.65 billion, compared to $1.66 billion in 2025; net income to be between $125 million and $169 million, compared to $280 million; and diluted earnings per share to be between 49 cents and 66 cents, compared to $1.04 in the prior year.
Marriott International surged 2.6% to $253.83 after the hotel chain operator reported first-quarter 2025 results.
Net fee revenue jumped 5% to $1.28 billion from $1.19 billion, net income edged up 18% to $665 million from $564 million, and diluted earnings per share rose 24% to $2.39 from $1.93 a year ago.
The company added 12,200 net rooms during the quarter, an increase of 4.6% from a year earlier.
At the end of the quarter, Marriott’s worldwide development pipeline totaled 3,800 properties and over 587,000 rooms, an increase of 7.4% from the prior year.
The company repurchased 2.8 million shares for $0.8 billion in the quarter, and year to date through April 29, the company has returned over $1.2 billion to shareholders through dividends and share repurchases.
Marriott guided second-quarter revenue to be between $1.38 billion and $1.39 billion, compared to $1.34 billion in 2024, and adjusted diluted earnings per share to be between $2.57 and $2.62, compared to $2.50 a year earlier.
The hotel company estimated revenue per available room in the second quarter to grow between 1.5% and 2.5% from the prior year.
For the full year 2025, the company expects revenue to be between $5.36 billion and $5.47 billion, compared to $5.17 billion in 2024, and adjusted diluted earnings per share to be between $9.82 and $10.19, compared to $9.33 a year ago.
Marriott expects net rooms to grow nearly 5%, with worldwide revenue per available room increasing between 1.5% and 3.5% in 2025.
Gartner Inc. advanced 2.4% to $437.11 after the research and advisory company reported first-quarter 2025 results.
Revenue jumped to $1.53 billion from $1.47 billion, net income inched up to $210.9 million from $210.5 million, and diluted earnings per share rose to $2.71 from $2.67 a year ago.
The company said operating cash flow increased 66% to $314 million and free cash flow edged up 73.3% to $288 million, as contract value climbed 7%.
The company guided for the medium term its research segment to grow between 12% and 16%, conferences up 5% to 10%, and consulting up 3% to 8%, while total revenue is estimated to increase by at least 10%.
The full-year revenue outlook in the research segment was narrowed to $5.33 billion as of May 6 from $5.36 billion as of February 4, bringing down the total revenue estimate to $6.53 billion from $6.55 billion, respectively.
The company estimated full-year adjusted earnings per share to be $11.70, revised upwardly from $11.45 earlier this year.
In comparison, in 2024 revenue was $6.3 billion, and adjusted earnings per share were $14.09.
Europe Movers: Hugo Boss, Pandora, TeamViewer, Zalando
Inga Muller
07 May, 2025
Frankfurt
Zalando SE dropped 3.3% to €31.13 after the German fashion retailer reported first-quarter 2025 results.
Revenue increased to €2.42 billion from €2.24 billion, and net income was €9.9 million compared to a loss of €8.9 million a year ago.
The number of orders jumped to 58.5 million from 55.2 million, and the number of active customers edged up to 52.4 million from 49.5 million a year earlier.
Gross merchandise volume in the quarter increased to €3.49 billion from €3.28 billion in the prior year.
The company guided fiscal 2025 revenue and gross merchandise volume to grow between 4% and 9% compared to 2024, and the adjusted EBIT to reach a level between €530 million and €590 million.
The guidance does not account for effects from the planned acquisition of Hamburg-based About You.
In comparison, revenue in 2024 was €10.57 billion, gross merchandise volume was €15.30 billion, and adjusted EBIT was €511.1 million.
TeamViewer SE plunged 16.5% to €11.16 after the German digital workplace platform operator reported lower-than-expected first-quarter 2025 results.
Revenue jumped to €178.75 million from €161.65 million, net income climbed to €29.63 million from €22.34 million, and diluted earnings per share rose to 19 cents from 14 cents a year ago.
The company reiterated its full-year guidance, expecting annual recurring revenue to grow between 7.5% and 10.8% and pro forma revenue to grow between 5.1% and 7.7% from a year earlier.
In comparison, 2024 revenue was €671.4 million.
Hugo Boss Group advanced 5.8% to €38.55 after the German fashion and lifestyle company reported first-quarter 2025 results.
Sales declined to €999 million from €1.01 billion, net income edged down to €35 million from €38 million, and earnings per share fell to 51 cents from 55 cents a year ago.
Sales in the Asia Pacific region plunged 8% from the prior year, impacted by ongoing subdued consumer demand in China, the company said in a release to investors.
The company guided full-year sales to remain broadly stable, with the EBIT increasing 5% to 22% and the EBIT margin to be between 9% and 10%.
In comparison, sales in 2024 were €4.3 billion, EBIT was €361 million, and the EBIT margin amounted to 8.4%.
Pandora Group eased 2.2% to 982.00 krona after the Danish jewelry retailer reported first-quarter 2025 results.
Revenue jumped to DKK 7.35 billion from DKK 6.83 billion, net profit edged up to DKK 1.10 billion from DKK 965 million, and diluted earnings per share rose to DKK 14.0 from DKK 11.8 a year ago.
The company retained its full-year guidance for organic growth between 7% and 8%, with the EBIT margin expected to be around 24%, reflecting the recent adverse foreign exchange movements and a 30 basis points impact from current tariffs in place over a 90-day period.
Pandora estimated full-year revenue to be between DKK 33.2 billion and DKK 33.5 billion, compared to DKK 31.7 billion in 2024, expecting same-store sales to grow between 4% and 5%.
Europe Movers: Hugo Boss, Pandora, TeamViewer, Zalando
Inga Muller
07 May, 2025
Frankfurt
Zalando SE dropped 3.3% to €31.13 after the German fashion retailer reported first-quarter 2025 results.
Revenue increased to €2.42 billion from €2.24 billion, and net income was €9.9 million compared to a loss of €8.9 million a year ago.
The number of orders jumped to 58.5 million from 55.2 million, and the number of active customers edged up to 52.4 million from 49.5 million a year earlier.
Gross merchandise volume in the quarter increased to €3.49 billion from €3.28 billion in the prior year.
The company guided fiscal 2025 revenue and gross merchandise volume to grow between 4% and 9% compared to 2024, and the adjusted EBIT to reach a level between €530 million and €590 million.
The guidance does not account for effects from the planned acquisition of Hamburg-based About You.
In comparison, revenue in 2024 was €10.57 billion, gross merchandise volume was €15.30 billion, and adjusted EBIT was €511.1 million.
TeamViewer SE plunged 16.5% to €11.16 after the German digital workplace platform operator reported lower-than-expected first-quarter 2025 results.
Revenue jumped to €178.75 million from €161.65 million, net income climbed to €29.63 million from €22.34 million, and diluted earnings per share rose to 19 cents from 14 cents a year ago.
The company reiterated its full-year guidance, expecting annual recurring revenue to grow between 7.5% and 10.8% and pro forma revenue to grow between 5.1% and 7.7% from a year earlier.
In comparison, 2024 revenue was €671.4 million.
Hugo Boss Group advanced 5.8% to €38.55 after the German fashion and lifestyle company reported first-quarter 2025 results.
Sales declined to €999 million from €1.01 billion, net income edged down to €35 million from €38 million, and earnings per share fell to 51 cents from 55 cents a year ago.
Sales in the Asia Pacific region plunged 8% from the prior year, impacted by ongoing subdued consumer demand in China, the company said in a release to investors.
The company guided full-year sales to remain broadly stable, with the EBIT increasing 5% to 22% and the EBIT margin to be between 9% and 10%.
In comparison, sales in 2024 were €4.3 billion, EBIT was €361 million, and the EBIT margin amounted to 8.4%.
Pandora Group eased 2.2% to 982.00 krona after the Danish jewelry retailer reported first-quarter 2025 results.
Revenue jumped to DKK 7.35 billion from DKK 6.83 billion, net profit edged up to DKK 1.10 billion from DKK 965 million, and diluted earnings per share rose to DKK 14.0 from DKK 11.8 a year ago.
The company retained its full-year guidance for organic growth between 7% and 8%, with the EBIT margin expected to be around 24%, reflecting the recent adverse foreign exchange movements and a 30 basis points impact from current tariffs in place over a 90-day period.
Pandora estimated full-year revenue to be between DKK 33.2 billion and DKK 33.5 billion, compared to DKK 31.7 billion in 2024, expecting same-store sales to grow between 4% and 5%.
Europe Movers: Hugo Boss, Pandora, TeamViewer, Zalando
Inga Muller
07 May, 2025
Frankfurt
Zalando SE dropped 3.3% to €31.13 after the German fashion retailer reported first-quarter 2025 results.
Revenue increased to €2.42 billion from €2.24 billion, and net income was €9.9 million compared to a loss of €8.9 million a year ago.
The number of orders jumped to 58.5 million from 55.2 million, and the number of active customers edged up to 52.4 million from 49.5 million a year earlier.
Gross merchandise volume in the quarter increased to €3.49 billion from €3.28 billion in the prior year.
The company guided fiscal 2025 revenue and gross merchandise volume to grow between 4% and 9% compared to 2024, and the adjusted EBIT to reach a level between €530 million and €590 million.
The guidance does not account for effects from the planned acquisition of Hamburg-based About You.
In comparison, revenue in 2024 was €10.57 billion, gross merchandise volume was €15.30 billion, and adjusted EBIT was €511.1 million.
TeamViewer SE plunged 16.5% to €11.16 after the German digital workplace platform operator reported lower-than-expected first-quarter 2025 results.
Revenue jumped to €178.75 million from €161.65 million, net income climbed to €29.63 million from €22.34 million, and diluted earnings per share rose to 19 cents from 14 cents a year ago.
The company reiterated its full-year guidance, expecting annual recurring revenue to grow between 7.5% and 10.8% and pro forma revenue to grow between 5.1% and 7.7% from a year earlier.
In comparison, 2024 revenue was €671.4 million.
Hugo Boss Group advanced 5.8% to €38.55 after the German fashion and lifestyle company reported first-quarter 2025 results.
Sales declined to €999 million from €1.01 billion, net income edged down to €35 million from €38 million, and earnings per share fell to 51 cents from 55 cents a year ago.
Sales in the Asia Pacific region plunged 8% from the prior year, impacted by ongoing subdued consumer demand in China, the company said in a release to investors.
The company guided full-year sales to remain broadly stable, with the EBIT increasing 5% to 22% and the EBIT margin to be between 9% and 10%.
In comparison, sales in 2024 were €4.3 billion, EBIT was €361 million, and the EBIT margin amounted to 8.4%.
Pandora Group eased 2.2% to 982.00 krona after the Danish jewelry retailer reported first-quarter 2025 results.
Revenue jumped to DKK 7.35 billion from DKK 6.83 billion, net profit edged up to DKK 1.10 billion from DKK 965 million, and diluted earnings per share rose to DKK 14.0 from DKK 11.8 a year ago.
The company retained its full-year guidance for organic growth between 7% and 8%, with the EBIT margin expected to be around 24%, reflecting the recent adverse foreign exchange movements and a 30 basis points impact from current tariffs in place over a 90-day period.
Pandora estimated full-year revenue to be between DKK 33.2 billion and DKK 33.5 billion, compared to DKK 31.7 billion in 2024, expecting same-store sales to grow between 4% and 5%.
Japan's Service Sector Activities Expanded In April, U.S.-Japan Trade Talks Stalled
Akira Ito
07 May, 2025
Tokyo
Japan's stock market indexes struggled to advance in Tuesday's trading, and investors awaited rate decisions from major central banks.
Investors stayed on the sidelines after returning from long weekend, following the lack of progress on trade talks with the U.S.
The Nikkei index traded in a tight range, and the broader Topix index trimmed gains of the session as investors dialed down expectations of rate cuts in the U.S.
The U.S. Federal Reserve is widely anticipated to hold rates steady later today and maintain its federal funds rate range between 4.25% and 4.50%.
Investors are awaiting comments from the central bank policymakers and are looking for insights about the impact of U.S. tariffs on inflation and economic growth outlook.
The Bank of England is widely anticipated to cut its bank rate by 25 basis points to 4.25%, reflecting weakening inflation and a deteriorating economic outlook.
Japan's Service Sector Expanded in April
Closer to home, Japan's services sector growth accelerated in April after stagnating in March, according to a report released by S&P Global.
The au Jibun Services PMI increased to 52.4 in April from 50.0 in March, as cost pressures intensified, with average input prices rising at the fastest pace in over two years.
The headline figure is the Services Business Activity Index, which tracks changes in the volume of business activity compared with one month previously.
A reading above 50.0 indicates an overall increase compared to the previous month, and below 50.0 an overall decrease.
Japan Indexes and Stocks
The Nikkei 225 Stock Average edged down 0.1% to 36,779.66, and the Topix index added 0.3% to 2,696.16.
Stocks in heavy industries and automobile sectors declined amid a lack of progress on trade talks with the U.S.
Kawasaki Heavy Industries declined 1.4% to ¥8,311.0, IHI Corp rose 0.9% to ¥11,320.0, and Mitsubishi Heavy Industries advanced 1.9% to ¥2,844.50.
Toyota Motor Corp. declined 2.5% to ¥2,706.0, Honda Motor decreased 1.9% to ¥1,458.0, and Nissan Motor eased 2.4% to ¥338.10.
Shipping companies traded volatile as investors worried that the erratic U.S. trade policy may dampen shipping volume to the U.S.
Shipping companies are signaling a sharp decline in shipping volumes from China and Asia to the U.S. ports on the West Coast.
Nippon Yusen advanced 0.4% to ¥4,679.0, Mitsui O.S.K. Lines Ltd. added 1.7% to ¥4,675.0, and Kawasaki Kisen Kaisha decreased 0.2% to ¥1,946.0.
Japan's Service Sector Activities Expanded In April, U.S.-Japan Trade Talks Stalled
Akira Ito
07 May, 2025
Tokyo
Japan's stock market indexes struggled to advance in Tuesday's trading, and investors awaited rate decisions from major central banks.
Investors stayed on the sidelines after returning from long weekend, following the lack of progress on trade talks with the U.S.
The Nikkei index traded in a tight range, and the broader Topix index trimmed gains of the session as investors dialed down expectations of rate cuts in the U.S.
The U.S. Federal Reserve is widely anticipated to hold rates steady later today and maintain its federal funds rate range between 4.25% and 4.50%.
Investors are awaiting comments from the central bank policymakers and are looking for insights about the impact of U.S. tariffs on inflation and economic growth outlook.
The Bank of England is widely anticipated to cut its bank rate by 25 basis points to 4.25%, reflecting weakening inflation and a deteriorating economic outlook.
Japan's Service Sector Expanded in April
Closer to home, Japan's services sector growth accelerated in April after stagnating in March, according to a report released by S&P Global.
The au Jibun Services PMI increased to 52.4 in April from 50.0 in March, as cost pressures intensified, with average input prices rising at the fastest pace in over two years.
The headline figure is the Services Business Activity Index, which tracks changes in the volume of business activity compared with one month previously.
A reading above 50.0 indicates an overall increase compared to the previous month, and below 50.0 an overall decrease.
Japan Indexes and Stocks
The Nikkei 225 Stock Average edged down 0.1% to 36,779.66, and the Topix index added 0.3% to 2,696.16.
Stocks in heavy industries and automobile sectors declined amid a lack of progress on trade talks with the U.S.
Kawasaki Heavy Industries declined 1.4% to ¥8,311.0, IHI Corp rose 0.9% to ¥11,320.0, and Mitsubishi Heavy Industries advanced 1.9% to ¥2,844.50.
Toyota Motor Corp. declined 2.5% to ¥2,706.0, Honda Motor decreased 1.9% to ¥1,458.0, and Nissan Motor eased 2.4% to ¥338.10.
Shipping companies traded volatile as investors worried that the erratic U.S. trade policy may dampen shipping volume to the U.S.
Shipping companies are signaling a sharp decline in shipping volumes from China and Asia to the U.S. ports on the West Coast.
Nippon Yusen advanced 0.4% to ¥4,679.0, Mitsui O.S.K. Lines Ltd. added 1.7% to ¥4,675.0, and Kawasaki Kisen Kaisha decreased 0.2% to ¥1,946.0.
China Unveiled Additional Measures to Stabilize Financial Markets Ahead of Trade Talks with U.S.
Li Chen
07 May, 2025
Hong Kong
Mainland China and Hong Kong stock market indexes shot up in early trading but lost momentum after a few hours of trading as policymakers announced measures to support economic growth.
The Hang Seng index soared as much as 1%, and the mainland-focused China edged down after rising as much as 0.7%.
On Wednesday, the People's Bank of China and the China Securities Regulatory Commission announced a new set of measures to stabilize financial markets and support the smooth functioning of the economy.
The People's Bank of China lowered its reserve ratio requirements by 50 basis points for banks, which is expected to make available an additional one trillion yuan, or about $139 billion.
In addition, the central bank announced its willingness to provide support to listed companies to acquire their shares.
Beijing policymakers are expected to announce measures to provide additional support to export-sensitive companies and facilitate foreign fund flows into the stock market.
Despite the fresh efforts by policymakers, central bankers, and regulators, investors remained skeptical and worried about the effectiveness of the measures.
The Hong Kong Monetary Authority intervened in the foreign exchange market for the fourth time since Friday to keep the Hong Kong dollar's peg stable amid rising inflow of foreign funds ahead of the Hong Kong listing of CATL.
Contemporary Amperex Technology, the largest maker of electric vehicle batteries, moved one step closer to its Hong Kong listing after the exchange's committee approved its listing.
Earlier on Wednesday, China said tariff-related talks with the U.S. will start later in the week in Switzerland.
China's Vice Premier He Lifeng is scheduled to meet the U.S. Treasury Secretary Scott Bessent from May 9 to 12 in Switzerland.
China Indexes and Stocks
The Hang Seng index inched up 0.5% to 22,779.11, and the mainland-focused CSI 300 index edged up 0.5% to 3,826.88.
CATL advanced 2.2% to ¥236.16 in Shanghai trading ahead of the company's $5 billion listing on the Hong Kong Stock Exchange next week.
Nongfu Spring Co. Ltd. declined 2% to HK $37.85, JD Health International Inc. rose 1.3% to HK $38.0, and Trip.com Group Ltd. rose 3% to HK $485.60.
Alibaba Group declined 1.3% to HK $122.10, Tencent Holdings decreased 1.2% to HK $493.0, and Baidu Inc. gained 0.7% to HK $88.40.
China Unveiled Additional Measures to Stabilize Financial Markets Ahead of Trade Talks with U.S.
Li Chen
07 May, 2025
Hong Kong
Mainland China and Hong Kong stock market indexes shot up in early trading but lost momentum after a few hours of trading as policymakers announced measures to support economic growth.
The Hang Seng index soared as much as 1%, and the mainland-focused China edged down after rising as much as 0.7%.
On Wednesday, the People's Bank of China and the China Securities Regulatory Commission announced a new set of measures to stabilize financial markets and support the smooth functioning of the economy.
The People's Bank of China lowered its reserve ratio requirements by 50 basis points for banks, which is expected to make available an additional one trillion yuan, or about $139 billion.
In addition, the central bank announced its willingness to provide support to listed companies to acquire their shares.
Beijing policymakers are expected to announce measures to provide additional support to export-sensitive companies and facilitate foreign fund flows into the stock market.
Despite the fresh efforts by policymakers, central bankers, and regulators, investors remained skeptical and worried about the effectiveness of the measures.
The Hong Kong Monetary Authority intervened in the foreign exchange market for the fourth time since Friday to keep the Hong Kong dollar's peg stable amid rising inflow of foreign funds ahead of the Hong Kong listing of CATL.
Contemporary Amperex Technology, the largest maker of electric vehicle batteries, moved one step closer to its Hong Kong listing after the exchange's committee approved its listing.
Earlier on Wednesday, China said tariff-related talks with the U.S. will start later in the week in Switzerland.
China's Vice Premier He Lifeng is scheduled to meet the U.S. Treasury Secretary Scott Bessent from May 9 to 12 in Switzerland.
China Indexes and Stocks
The Hang Seng index inched up 0.5% to 22,779.11, and the mainland-focused CSI 300 index edged up 0.5% to 3,826.88.
CATL advanced 2.2% to ¥236.16 in Shanghai trading ahead of the company's $5 billion listing on the Hong Kong Stock Exchange next week.
Nongfu Spring Co. Ltd. declined 2% to HK $37.85, JD Health International Inc. rose 1.3% to HK $38.0, and Trip.com Group Ltd. rose 3% to HK $485.60.
Alibaba Group declined 1.3% to HK $122.10, Tencent Holdings decreased 1.2% to HK $493.0, and Baidu Inc. gained 0.7% to HK $88.40.
Wall Street Indexes Extend Two-Day Losses Ahead of Rate Decisions
Barry Adams
06 May, 2025
New York City
Stock market indexes in New York decreased for the second session in a row amid import tax uncertainty.
The S&P 500 index decreased 0.1%, and the Nasdaq Composite declined 0.3%, as investors awaited the Federal Reserve's rate decisions.
The Federal Open Market Committee started its two-day meeting on Tuesday, and policymakers are widely expected to hold rates steady on Wednesday.
The uncertainty surrounding the U.S. trade policy weighed on the market sentiment, and the S&P 500 index halted its 9-day rally on Monday.
The longest rally in 20 years came to a halt after the U.S. president unilaterally slapped a 100% tariff on foreign-made movies.
The unexpected announcement shocked the industry executives and confused investors, as the Trump administration provided few details about the scope and timetable for import tax implementation.
Commodities, Currencies, Indexes, Yields
The S&P 500 index decreased 1.1% to 5,588.45, the Nasdaq Composite edged down 1.3% to 17,613.27, and the Russell 2000 index was down 0.9% to 1,986.87.
The yield on 2-year Treasury notes edged lower to 3.80%, 10-year Treasury notes increased to 4.35%, and 30-year Treasury bonds advanced to 4.85%.
WTI crude oil increased $2.12 to $59.22 a barrel, and natural gas prices edged higher by $0.05 to $3.60 a thermal unit.
Gold increased by $60.84 to 3,395.30 an ounce, and silver edged up by $0.69 to $33.20.
The dollar index, which weighs the US currency against a basket of foreign currencies, decreased by 0.30 to 99.53, and it traded at the lowest level since April 2022.
U.S. Stock Movers
Mattel Inc. decreased 0.6% to $16.11 after the company withdrew its 2025 full-year outlook because of tariff uncertainty.
Meanwhile, the company's first-quarter results surpassed market expectations.
Palantir Technologies dropped 7.4% to $114.60 after the big data analysis software company reported quarterly results that met investor expectations.
However, the company's 2025 sales revision fell short of some investor expectations.
Ferrari N.V. declined 0.5% to $464.0 despite the luxury sports vehicle maker reporting a 17% jump in first-quarter earnings.
The company warned that U.S. tariffs on imported cars from the European Union could negatively impact the automaker's profitability in 2025.
DoorDash Inc. fell 5.5% to $194.0 after the food delivery company reported weaker-than-anticipated revenue in the first quarter.
Revenue was $3.09 billion, net income swung to a profit of $193 million from a net loss of $23 million, and diluted earnings per share were a profit of 44 cents compared to a loss of 6 cents a year ago.
The food delivery company also announced an acquisition of SevenRooms, a New York City-based online booking platform for hotels and restaurants.
Wall Street Index Extend Two-Day Losses Ahead of Rate Decisions,
Barry Adams
06 May, 2025
New York City
Stock market indexes in New York decreased for the second session in a row amid import tax uncertainty.
The S&P 500 index decreased 0.1%, and the Nasdaq Composite declined 0.3%, as investors awaited the Federal Reserve's rate decisions.
The Federal Open Market Committee started its two-day meeting on Tuesday, and policymakers are widely expected to hold rates steady on Wednesday.
The uncertainty surrounding the U.S. trade policy weighed on the market sentiment, and the S&P 500 index halted its 9-day rally on Monday.
The longest rally in 20 years came to a halt after the U.S. president unilaterally slapped a 100% tariff on foreign-made movies.
The unexpected announcement shocked the industry executives and confused investors, as the Trump administration provided few details about the scope and timetable for import tax implementation.
U.S. Stock Movers
Mattel Inc. decreased 0.6% to $16.11 after the company withdrew its 2025 full-year outlook because of tariff uncertainty.
Meanwhile, the company's first-quarter results surpassed market expectations.
Palantir Technologies dropped 7.4% to $114.60 after the big data analysis software company reported quarterly results that met investor expectations.
However, the company's 2025 sales revision fell short of some investor expectations.
Ferrari N.V. declined 0.5% to $464.0 despite the luxury sports vehicle maker reporting a 17% jump in first-quarter earnings.
The company warned that U.S. tariffs on imported cars from the European Union could negatively impact the automaker's profitability in 2025.
DoorDash Inc. fell 5.5% to $194.0 after the food delivery company reported weaker-than-anticipated revenue in the first quarter.
Revenue was $3.09 billion, net income swung to a profit of $193 million from a net loss of $23 million, and diluted earnings per share were a profit of 44 cents compared to a loss of 6 cents a year ago.
The food delivery company also announced an acquisition of SevenRooms, a New York City-based online booking platform for hotels and restaurants.
European Markets Struggled to Advance Ahead of Rate Decisions
Bridgette Randall
06 May, 2025
London
European markets lacked direction in Tuesday's trading as investors remained focused on corporate earnings and merger announcements.
Benchmark indexes in Frankfurt, Paris, Milan, and London traded in a tight range as investors reacted to corporate earnings.
Market sentiment was cautious after the Trump administration announced 100% tariffs on foreign-made movies but did not clarify if the import duties apply to streaming services.
Moreover, investors remained on the sidelines ahead of rate decisions from the Federal Reserve on Wednesday and the Bank of England on Thursday.
Deliveroo agreed to be acquired by the U.S.-based Door Dash for £2.9 billion, or $3.9 billion.
Europe Indexes and Yields
The DAX index decreased by 0.2% to 23,305.13, the CAC-40 index edged higher 0.03% to 7,730.23, and the FTSE 100 index advanced 0.3% to 8,623.00.
The yield on 10-year German bonds inched higher to 2.55%, French bonds increased to 3.27%, UK gilts moved up to 4.57%, and Italian bonds edged higher to 3.64%.
The euro increased to $1.13; the British pound was higher at $1.33; and the U.S. dollar was higher and traded at 82.41 Swiss cents.
Brent crude increased $1.33 to $61.56 a barrel, and the Dutch TTF natural gas was higher by €0.24 to €33.29 per MWh.
Europe Movers
Hugo Boss jumped 5.5% to €38.45 after the German fashion company reported better-than-expected revenue in the first quarter.
Philips NV declined 1.9% to €22.12, and the Dutch consumer appliance maker lowered its annual outlook.
Covestro AG increased 0.5% to €58.62 after the polycarbonate raw material maker lowered its earnings outlook.
Continental AG increased 1.2% to €70.92, and the Germany-based automotive parts maker reported better-than-expected revenue and earnings in the latest quarter, and sales rose to a four-year high.
Vestas Wind Systems increased 4.7% to DKK 92.68, and the Danish wind energy company's net income swung to a profit in the first quarter.
European Markets Struggled to Advance Ahead of
Bridgette Randall
06 May, 2025
London
European markets lacked direction in Tuesday's trading as investors remained focused on corporate earnings and merger announcements.
Benchmark indexes in Frankfurt, Paris, Milan, and London traded in a tight range as investors reacted to corporate earnings.
Market sentiment was cautious after the Trump administration announced 100% tariffs on foreign-made movies but did not clarify if the import duties apply to streaming services.
Moreover, investors remained on the sidelines ahead of rate decisions from the Federal Reserve on Wednesday and the Bank of England on Thursday.
Deliveroo agreed to be acquired by the U.S.-based Door Dash for £2.9 billion, or $3.9 billion.
Europe Indexes and Yields
The DAX index decreased by 0.2% to 23,305.13, the CAC-40 index edged higher 0.03% to 7,730.23, and the FTSE 100 index advanced 0.3% to 8,623.00.
The yield on 10-year German bonds inched higher to 2.55%, French bonds increased to 3.27%, UK gilts moved up to 4.57%, and Italian bonds edged higher to 3.64%.
The euro increased to $1.13; the British pound was higher at $1.33; and the U.S. dollar was higher and traded at 82.41 Swiss cents.
Brent crude increased $1.33 to $61.56 a barrel, and the Dutch TTF natural gas was higher by €0.24 to €33.29 per MWh.
Europe Movers
Hugo Boss jumped 5.5% to €38.45 after the German fashion company reported better-than-expected revenue in the first quarter.
Philips NV declined 1.9% to €22.12, and the Dutch consumer appliance maker lowered its annual outlook.
Covestro AG increased 0.5% to €58.62 after the polycarbonate raw material maker lowered its earnings outlook.
Continental AG increased 1.2% to €70.92, and the Germany-based automotive parts maker reported better-than-expected revenue and earnings in the latest quarter, and sales rose to a four-year high.
Vestas Wind Systems increased 4.7% to DKK 92.68, and the Danish wind energy company's net income swung to a profit in the first quarter.