Market Update
European Markets React to Domestic Earnings
Bridgette Randall
08 Nov, 2022
Frankfurt
Stocks lacked direction in European trading after energy prices inched lower and currencies were under pressure.
Eurozone retail sales rose 0.4% on a monthly basis in September, according to the latest data from Eurostat.
The DAX index increased 0.6% to 13,612.68, the CAC-40 index traded higher 0.01% to 6,417.46 and the FTSE 100 index edged down 0.04% to 7,297.68.
The euro traded up to $1.001 but the British pound declined 0.3% to $1.147.
The yield on 10-year German Bunds declined to 2.29%, French bonds edged down to 2.80%, British bonds dropped to 3.58% and Italian bonds fell to 4.39%.
Brent crude oil declined 37 cents to $97.31 a barrel and TTF natural gas rose 5% to 116.32 euros a MWh.
Europe Movers
Associated British Foods rose 2.8% to 1,468.74 pence after the Primark owner said annual profit increased 45% to
Renault and Google announced a partnership to deliver more cloud computing capabilities in vehicles.
08 Nov, 2022
Luxury goods makers LVMH and Hermes declined after China reported rising coronavirus cases in Guangzhou, China.
08 Nov, 2022
German industrial production rose 0.6% in September from the revised 1.2% decline in August, Destatis reported.
07 Nov, 2022
Eurozone retail sales in September increased 0.4% from August after struggling in previous three months.
08 Nov, 2022
Stocks Inch Higher for 3rd Day, Bond Yields Retain Upward Bias
Barry Adams
08 Nov, 2022
New York City
Benchmark indexes were stable ahead of midterm elections later in the day and bond yields inched lower.
The S&P 500 index inched up 0.2% to 3,816.14 and the Nasdaq Composite index increased 0.06% to 10,571.28.
Kohl's Corporation jumped 8.5% after the struggling retailer said third quarter sales declined 2% on 6.9% fall in comparable store sales.
The retailer said CEO Michelle Gass is leaving the company from Dec 2 and the board member Tom Kingsbury will serve as interim CEO.
Lyft Inc plunged 20% after the ride-sharing company reported weaker-than-expected revenue.
Third quarter revenue increased 22% to $1.05 billion but net loss widened to $422.2 million from $99.7 million a year ago and active rider growth fell to 7.2% to 20.3 million.
Crude oil edged down 75 cents to $91.02 a barrel and natural gas declined 64 cents to $6.32 a thermal unit.
U.S. Treasury bonds edged lower ahead of the inflation data scheduled to be released on Thursday.
Investors are anticipating the consumer price inflation index to rise at least 0.7% on a monthly basis in October and jump 8.1% from a year ago.
The inflation is rapidly spreading in the services sector of the economy and prices are still rising at a rapid pace.
The yield on 2-year Treasury notes inched lower to 4.68%, 10-year Treasury notes edged down to 4.16% and 30-year Treasury bonds fell to 4.28%.
Stocks lacked direction in European trading after energy prices inched lower and currencies were under pressure.
Eurozone retail sales rose 0.4% on a monthly basis in September, according to the latest data from Eurostat.
The DAX index increased 0.6% to 13,612.68, the CAC-40 index traded higher 0.01% to 6,417.46 and the FTSE 100 index edged down 0.04% to 7,297.68.
Luxury stocks LVMH and Hermes International declined on the China demand worries as regulators lock down several regions in large cities.
Danish costume jewelry retailer Pandora surged more than 8% after the company reported better-than-expected quarterly sales.
Carrefour declined 1.2% and the company said it will accelerate its e-commerce expansion and add more discount stores and trim costs reflecting its new strategic plan.
Schaeffler AG soared 9.5% after the bearings maker said it plans to cut 1,300 jobs worldwide and trim its excess production capacity.
The euro traded up to $1.001 but the British pound declined 0.3% to $1.147.
The yield on 10-year German Bunds declined to 2.29%, French bonds edged down to 2.80%, British bonds dropped to 3.58% and Italian bonds fell to 4.39%.
Brent crude oil declined 37 cents to $97.31 a barrel and TTF natural gas rose 5% to 116.32 euros a MWh.
The Nikkei 225 index increased 1.2% to 27,872.11, the Hang Seng Index declined 0.2% to 16,557.31, the Shanghai Composite inched lower 0.4% to 3,064.49.
Markets in India were closed for a holiday.
Stocks Pull Ahead, Natura Gas Surged 5%
Barry Adams
07 Nov, 2022
New York City
Stocks closed higher on Monday ahead of the Congressional elections on Tuesday.
Tuesday's midterm elections may indicate a new balance of power in the U.S. Congress as the divided nation votes on several issues confronting voters including sky-high inflation and out of control defense spending.
Despite decades of policy changes and different parties in control, the U.S. economy has struggled to generate more than two million net new jobs a year, barring the post-pandemic recovery.
The consumer price inflation data on Thursday are likely to show an increase of 0.7% on a monthly basis in October or about 8.1% on an annual basis.
Hotter-than-expected inflation data may provide another confirming signal to the Federal Reserve to continue its aggressive rate hike campaign at the next meeting.
Interest rates are likely to jump higher by at least 50 basis points at the next Fed's meeting on December 14th.
The S&P 500 index increased 0.96% to 3,806.80 and the Nasdaq Composite index added 0.6% to 10,564.52.
Natural gas prices soared on the hopes that colder-than-usual climate conditions in certain regions of the U.S. will support higher demand.
Crude oil fell 81 cents to $91.82 a barrel and natural gas advanced 71 cents to $7.10 a thermal unit.
The U.S. treasury yields advanced following higher energy prices.
The yield on 2-year Treasury notes rose to 4.73%, 10-year notes jumped to 4.22% and 30-year bonds increased to 4.33%.
U.S. Movers
Berkshire Hathaway jumped more than 1% after the Warren Buffett controlled conglomerate reported a 20% increase in earnings in its latest quarter.
Apple Inc declined more than 1% after China imposed tighter restrictions in the city where many Apple products are manufactured by its Taiwan-based contractor Foxconn Technology Group.
Carvana plunged 16% to $7.35 on the worries that the online used-car retailer may face more difficult times ahead as higher interest rates may slowdown consumer spending.
European Markets Advance
European markets generally traded higher and the resource-heavy FTSE index declined.
German industrial production unexpectedly increased 0.6% in September after falling revised 1.2% in August, according to Destatis Monday.
The DAX index edged up 0.5% to 13,533.52, the CAC-40 index was nearly unchanged at 6,416.61 and the FTSE 100 index fell 0.5% to 7,299.99.
The U.S. dollar faced pressure ahead of midterm Congressional elections on Tuesday and consumer inflation data on Thursday.
The euro inched up to $1.002 and the British pound edged higher to $1.156.
Weak China's International Trade Data Dragged Sentiment In Asia
Asian markets gained following Friday's global market advance but weak Chinese international trade data trimmed gains.
China's imports and exports unexpectedly declined according to the data released by the General Administration of Customs.
October exports declined 0.3% and imports fell 0.7% from a year ago.
Exports declined for the first time since 2020 and trade surplus rose to $85.15 billion.
The Nikkei 225 index gained 1.2% to 27,527.64, the Hang Seng index added 2.7% to 16,595.91 and the Sensex index increased 0.4% to 61,185.15.
The Japanese yen edged up to 147.67 and the Chinese renminbi held near 7.23 and the Indian rupee recovered to 81.80 against the U.S. dollar.