Market Update
World Markets Under Pressure as Russia Threatens Nuclear Response
Alexander Garcia
19 Nov, 2024
Miami
Stock market indexes looked down, gold jumped, and bond yields edged lower as tensions escalated between the U.S. and Russia.
The S&P 500 index declined 0.8%, and the Nasdaq Composite dropped 1.1% after Russia's president, Vladimir Putin, lowered his nation's bar for the use of atomic weapons.
The latest escalation is driven by a series of events starting with North Korea supplying soldiers to support Russia's ongoing war in Ukraine, which prompted the U.S. to allow Ukraine to use long-range missiles to strike deep in Russia, driving Putin to revise nuclear doctrine.
Putin said Russia would consider using atomic weapons if his nation or its allies were met with the "use of conventional weapons that created a critical threat to their sovereignty and/or their territorial integrity.”
Russia's news agency TASS also noted that the nuclear doctrine was last revised in June 2020.
"Moscow also reserves the right to consider a nuclear response to a conventional weapons attack threatening its sovereignty, a large-scale launch of enemy aircraft, missiles, and drones targeting Russian territory, their crossing of the Russian border, and an attack on its ally Belarus," noted the news agency.
Investors sought protection in bonds amid rising geopolitical tensions and looming trade wars among three large trading blocs: the U.S., the European Union, and China.
Investors also awaited the release of surveys of manufacturing and service sectors later in the week.
Disruptions from Hurricanes and Rising Inventories Dampen U.S. Housing Starts
U.S. housing starts fell more than expected in October as higher mortgage rates and hurricanes dampened activities.
Building permits adjusted for seasonal factors declined 7.7% from a year ago to 1.416 million, the U.S. Census Bureau reported Tuesday.
Single-family home authorizations declined 1.8% to 968,000, and permits for multi-family homes with five or more units decreased 20.9% from a year ago, respectively.
Housing starts dropped 4% from a year ago to 1.311 million units, driven by a 0.5% fall in single-family homes to 970,000 and 5-units or more multi-family by 12.6% to 326,000.
Single-family housing start annual rate in the Northeast increased 39.2% to 110,000 units, in the Midwest declined 7.1% to 197,000, in the South fell 7.8% to 666,000, and decreased 4.0% to 338,000.
Seasonally adjusted new home completion annual rate increased 16.8% from a year ago 1.614 million units, driven by single-family home completion rate decline of 0.2% to 986,000 and multi-family home completion rate increase of 61.4% to 615,000.
U.S. Indexes and Treasury Yields
The S&P 500 index decreased 0.04% to $5,891.30, the Nasdaq Composite rose 0.3% to 18,844.79, and the Russell 2000 index declined 0.4% to 2,302.48.
The yield on 2-year Treasury notes edged lower to 4.26%, 10-year Treasury notes inched down to 4.38%, and 30-year Treasury bonds decreased to 4.56%.
WTI crude oil decreased $0.35 to $68.30 a barrel, and natural gas prices edged down 3 cents to $2.94 a thermal unit.
Gold decreased by $24.06 to $2,636.42 an ounce, and silver increased by $0.19 to $31.34.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 106.40.
U.S. Stock Movers
Walmart increased 3.7% to $87.16 after the retailer reported better-than-expected quarterly results and revised its annual outlook.
The retailer boosted its annual sales estimate to a new range between 4.8% and 5.1%, from the previous estimate between 3.75% and 4.75%.
Consolidated revenue in the third quarter increased 5.5% to $169.6 billion, net income advanced to $4.6 billion from $453 million, and net income rose to 57 cents from 6 cents a year ago.
The retailer said it repurchased 46 million shares for $3 billion in the year so far, as part of its $20 billion stock buyback plan.
The company said sales at its U.S. locations increased 5.5% to $114.9 billion, reflecting broad strength as more customers look for products beyond its grocery aisles.
E-commerce sales in the U.S. rose 22%, led by store-fulfilled pickup & delivery, advertising revenue, and marketplace activities.
Super Micro Computer soared 27% to $27.48 after the company appointed BDO as its new independent auditor following the resignation of its previous auditor, Ernst & Young.
The company also said it plans to file its annual report for the year ending on June 30 and its latest quarterly report ending on September 30.
Russia Fears Drive Eurozone Bond Yields to One-Month Low, Swiss Goods Trade Surplus Soar In October
Eurozone Bond Yields Eased to One-Month Low, Swiss Goods Trade Surplus Soared In October
Stock market indexes across Europe looked down, bond yields headed lower, and the euro and the pound drifted lower against the U.S. dollar.
Benchmark indexes in Paris, Milan, Frankfurt, and London declined as investors worried about escalating tensions between Russia and Ukraine.
Investors sought safety in bonds amid worries of supply chain disruptions and a potential deepening of conflict between Russia and Ukraine.
Bond yields edged lower after Russia's president, Vladimir Putin, pledged to use atomic weapons in the event the nation is attacked by massive conventional weapons.
Moreover, the European Central Bank officials also signaled a dovish outlook for the future rate path, suggesting that rate cuts at the next policy meeting are less likely.
Chemical and Pharma Exports Growth Drives Swiss Trade Surplus to Record High in October
On the economic front, Switzerland's goods trade surplus soared to a record high of CHF 6 billion, up from the revised CHF 4.0 billion in September, according to a monthly update released by the Federal Customs Administration.
On a monthly basis, seasonally adjusted exports surged 10.2% to CHF 24.4 billion, driven by sharply higher sales of jewelry & watches, vehicles, and pharmaceuticals and chemicals.
Meanwhile, imports advanced 1.8% from the previous month to CHF 18.4 billion, with increases in chemical and pharmaceutical products, jewelry, and paper and graphic products.
Chemical and pharmaceutical exports jumped 15.6% to CHF 14.3 billion from CHF 12.3 billion; advanced electrical machinery rose 3.1% to CHF 2.7 billion from CHF 2.6 billion; and watches advanced 5.1% to CHF 2.1 billion from CHF 2.0 billion.
Between January and October 2024, international trade balance increased to CHF 39.5 billion, compared to CHF 31.8 billion in the same period in 2023.
Europe Indexes and Yields
The DAX index decreased by 1.3% to 18,943.15; the CAC-40 index eased by 1.2% to 7,188.98; and the FTSE 100 index fell by 0.3% to 8,083.25.
The yield on 10-year German bonds edged lower to 2.31%, French bonds inched down to 3.05%, the UK gilts edged lower to 4.42%, and Italian bonds decreased to 3.53%.
The euro edged lower to $1.05; the British pound inched down to $1.26; and the U.S. dollar strengthened to 88.27 Swiss cents.
Brent crude decreased $0.07 to $73.22 a barrel, and the Dutch TTF natural gas fell by €1.24 to €45.21 per MWh.
Europe Stock Movers
ThyssenKrupp AG increased 8.1% to €3.67 after the German steelmaker reported slightly better-than-expected earnings.
Sales in the fiscal year 2024 ending in September declined 7% to €35 billion, and adjusted operating earnings declined to €567 million from €703 million a year earlier, respectively.
The company estimated net income to swing to €100 million from a loss of €1.4 billion in the financial year that just ended.
Net loss in the fiscal year 2024 shrank to €1.4 billion from €2.0 billion the prior year, driven by asset impairment of €1.2 billion in its steel division in Europe.
The company proposed to pay an annual dividend of 15 cents per share and return cash to shareholders for the third year in a row.
Nestle SA declined 1.8% to CHF 76.78 after the company said it plans to accelerate its cost savings by CHF 2.5 billion and support additional investments.
Caixabank SA decreased 4.8% to €5.42 after the company released its 2025-2027 strategic plan.
Japanese Yen In Focus Amid Growing Prospects of BoJ Intervention
Stock market indexes in Tokyo rebounded in Tuesday's trading, and the yen was in focus on the rising government intervention prospects.
The Nikkei 225 stock average gained 0.4%, the broader Topix index advanced 0.6%, and the yen hovered near 154.50 against the U.S. dollar.
Bank of Japan Governor Kazuo Ueda reiterated the central bank's commitment to raising rates gradually but failed to provide the timing and size of these increases.
The yen edged slightly higher on the growing speculation that the Bank of Japan is preparing to conduct another market intervention and arrest the rapid decline of the currency.
Stocks in Tokyo have been volatile over the last six weeks after the persistent weakening of the yen supports higher profits at export-driven companies but also lifts inflation, which negatively impacts consumer spending.
On the economic front, investors are looking forward to the release of international trade data on Wednesday and an inflation update on Friday.
Japan Stock Movers
The Nikkei 225 stock average increased 0.4% to 38,377.07, and the broader Topix index gained 0.6% to 2,708.04.
Banks and leading export companies led the market gainers in Tuesday's trading.
Sumitomo Mitsui Financial jumped 3.1% to ¥3,669.0, Mitsubishi UFJ Financial advanced 1.6% to ¥1,838.50, and Mizuho Financial gained 2.7% to ¥3,842.0.
Panasonic Holdings advanced 4.2% to ¥1,547.50, Canon added 1.1% ¥5,039.0, and Sony Group inched higher 0.2% to ¥2,922.0.
Japan Steel Works increased 11.3% to ¥6,488.0, Nidec Corp. advanced 4.4% to ¥2,864.0, and Fujikura Ltd. jumped 6.9% to ¥5,638.0.
Suzuki Motor increased 0.8% to ¥1,654.0, but Recruit Holding declined 3% to ¥9,403.0.
China Indexes Struggle to Advance as Regulators Promise More Reforms
Stock market indexes in China and Hong Kong traded in a tight range amid rising prospects of escalation of trade tensions with the U.S. and the European Union.
The Hang Seng index edged up 0.2%, but the mainland-focused CSI 300 index turned lower by 0.7% in the late afternoon trading.
Market indexes have been on the decline over the last six weeks after the previously promised fiscal reforms fell short of market expectations.
Stock market indexes have lost about 25% from the peak on October 7, after several measures announced by the finance ministry and the People's Bank of China failed to revive investor confidence.
Vice-Premier He Lifeng, in a keynote delivered at a gathering organized by the Hong Kong Monetary Authority, said China will issue long-term treasury bonds to finance its plans to assume local government debts.
Lifeng also promised to improve mutual market access through the Stock Connect system and facilitate Chinese companies to list their shares on the Hong Kong Stock Exchange.
China Stock Movers: Xiaomi and Trip.com In Focus
The Hang Seng Index increased 0.2% to 19,615.96, and the mainland-focused CSI 300 index declined 0.7% to 3,924.48.
Trip.com advanced 5.3% to HK $503.50 after the online travel platform reported better-than-expected revenue in the third quarter.
Revenue increased 16% to 15.9 billion yuan, or $2.2 billion, slightly higher than analysts estimates, reflecting holiday travel demand to Japan, Thailand, and Singapore.
Xiaomi Corp. declined 3.8% to HK $27.65, trimming gains of 85% in the year so far to Monday after the company posted higher-than-expected revenue in the third quarter.
Revenue increased 31% to 92.5 billion yuan from 70.9 billion yuan, and after-tax profit increased 9.7% to 5.3 billion yuan from 4.9 billion yuan a year ago.
Smartphone x A IoT segment revenue rose 16.8% to 82.8 billion yuan, and electric vehicle segment and other initiatives revenue reached 9.7 billion yuan.
Global shipment of smartphones increased 3.1% to 43.1 million units, and the company maintained its number 3 ranking in global shipment with a market share of 13.8%, according to Canalys.
The company said its shipment ranking in mainland China rose to number 4, and market share increased by 1.2 percentage points from a year ago to 14.7%.
In the third quarter of 2024, the deliveries of the Xiaomi SU7 Series reached 39,790 vehicles, and in October, monthly deliveries rose to 20,000 vehicles.
Kunshan Wanyuantong Electronics Technology, a maker of printed circuit boards, soared 333% to 48.61 yuan after the company's stock began trading in Beijing.
The company priced its public offering at 11.16 yuan per share and sold 1.4725 million shares.
U.S. Movers: Lowe's, Super Micro Computer, Walmart
Scott Peters
19 Nov, 2024
New York City
Walmart increased 3.7% to $87.16 after the retailer reported better-than-expected quarterly results and revised its annual outlook.
The retailer boosted its annual sales estimate to a new range between 4.8% and 5.1%, from the previous estimate between 3.75% and 4.75%.
Consolidated revenue in the third quarter increased 5.5% to $169.6 billion, net income advanced to $4.6 billion from $453 million, and net income rose to 57 cents from 6 cents a year ago.
The retailer said it repurchased 46 million shares for $3 billion in the year so far, as part of its $20 billion stock buyback plan.
The company said sales at its U.S. locations increased 5.5% to $114.9 billion, reflecting broad strength as more customers look for products beyond its grocery aisles.
E-commerce sales in the U.S. rose 22%, led by store-fulfilled pickup & delivery, advertising revenue, and marketplace activities.
Super Micro Computer soared 27% to $27.48 after the company appointed BDO as its new independent auditor following the resignation of its previous auditor, Ernst & Young.
The company also said it plans to file its annual report for the year ending on June 30 and its latest quarterly report ending on September 30.
Lowe's Companies declined 2.2% to $266.0 after the home improvement retailer reported better-than-expected quarterly results, but the company's negative outlook dampened investor sentiment.
Net sales in the third quarter declined to $20.17 billion from $20.47 billion, and net income declined to $1.69 billion from $1.77 billion, and diluted earnings per share fell to $2.99 from $3.05 a year earlier.
During the quarter, the company repurchased approximately 2.9 million shares for $758 million, and it paid $654 million in dividends.
The company estimated total annual sales in the fiscal year 2024 to range between $83 billion and $83.5 billion, compared to its previous range between $82.7 billion and $83.2 billion.
Comparable same-store sales are estimated to decline between 3% and 3.5%, compared to the previous estimate of a decline between 3.5% and 4.0%.
U.S. Movers: Lowe's, Super Micro Computer, Walmart
Scott Peters
19 Nov, 2024
New York City
Walmart increased 3.7% to $87.16 after the retailer reported better-than-expected quarterly results and revised its annual outlook.
The retailer boosted its annual sales estimate to a new range between 4.8% and 5.1%, from the previous estimate between 3.75% and 4.75%.
Consolidated revenue in the third quarter increased 5.5% to $169.6 billion, net income advanced to $4.6 billion from $453 million, and net income rose to 57 cents from 6 cents a year ago.
The retailer said it repurchased 46 million shares for $3 billion in the year so far, as part of its $20 billion stock buyback plan.
The company said sales at its U.S. locations increased 5.5% to $114.9 billion, reflecting broad strength as more customers look for products beyond its grocery aisles.
E-commerce sales in the U.S. rose 22%, led by store-fulfilled pickup & delivery, advertising revenue, and marketplace activities.
Super Micro Computer soared 27% to $27.48 after the company appointed BDO as its new independent auditor following the resignation of its previous auditor, Ernst & Young.
The company also said it plans to file its annual report for the year ending on June 30 and its latest quarterly report ending on September 30.
Lowe's Companies declined 2.2% to $266.0 after the home improvement retailer reported better-than-expected quarterly results, but the company's negative outlook dampened investor sentiment.
Net sales in the third quarter declined to $20.17 billion from $20.47 billion, and net income declined to $1.69 billion from $1.77 billion, and diluted earnings per share fell to $2.99 from $3.05 a year earlier.
During the quarter, the company repurchased approximately 2.9 million shares for $758 million, and it paid $654 million in dividends.
The company estimated total annual sales in the fiscal year 2024 to range between $83 billion and $83.5 billion, compared to its previous range between $82.7 billion and $83.2 billion.
Comparable same-store sales are estimated to decline between 3% and 3.5%, compared to the previous estimate of a decline between 3.5% and 4.0%.
Global Markets Turn Lower After U.S.-Russia Tensions Escalated
Barry Adams
19 Nov, 2024
New York City
Stock market indexes looked down, gold jumped, and bond yields edged lower amid rising tensions between Russia and the U.S.
The S&P 500 index declined 0.8%, and the Nasdaq Composite dropped 1.1% after Russia's president, Vladimir Putin, lowered his nation's bar for the use of atomic weapons.
Putin said Russia would consider using atomic weapons if his nation or its allies were met with the "use of conventional weapons that created a critical threat to their sovereignty and/or their territorial integrity.”
Russia's news agency TASS also noted that the nuclear doctrine was last revised in June 2020.
"Moscow also reserves the right to consider a nuclear response to a conventional weapons attack threatening its sovereignty, a large-scale launch of enemy aircraft, missiles, and drones targeting Russian territory, their crossing of the Russian border, and an attack on its ally Belarus," noted the news agency.
Investors sought protection in bonds amid rising geopolitical tensions and looming trade wars among three large trading blocs: the U.S., the European Union, and China.
Investors also awaited the release of surveys of manufacturing and service sectors and housing sector activities data later in the week.
U.S. Indexes and Treasury Yields
The S&P 500 index decreased 0.4% to $5,898.50, the Nasdaq Composite fell 0.3% to 18,741.05, and the Russell 2000 index declined 0.2% to 2,291.41.
The yield on 2-year Treasury notes edged lower to 4.26%, 10-year Treasury notes inched down to 4.38%, and 30-year Treasury bonds decreased to 4.56%.
WTI crude oil decreased $0.35 to $68.30 a barrel, and natural gas prices edged down 3 cents to $2.94 a thermal unit.
Gold decreased by $24.06 to $2,636.42 an ounce, and silver increased by $0.19 to $31.34.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 106.40.
U.S. Stock Movers
Walmart increased 3.7% to $87.16 after the retailer reported better-than-expected quarterly results and revised its annual outlook.
The retailer boosted its annual sales estimate to a new range between 4.8% and 5.1%, from the previous estimate between 3.75% and 4.75%.
Consolidated revenue in the third quarter increased 5.5% to $169.6 billion, net income advanced to $4.6 billion from $453 million, and net income rose to 57 cents from 6 cents a year ago.
The retailer said it repurchased 46 million shares for $3 billion in the year so far, as part of its $20 billion stock buyback plan.
The company said sales at its U.S. locations increased 5.5% to $114.9 billion, reflecting broad strength as more customers look for products beyond its grocery aisles.
E-commerce sales in the U.S. rose 22%, led by store-fulfilled pickup & delivery, advertising revenue, and marketplace activities.
Super Micro Computer soared 27% to $27.48 after the company appointed BDO as its new independent auditor following the resignation of its previous auditor, Ernst & Young.
The company also said it plans to file its annual report for the year ending on June 30 and its latest quarterly report ending on September 30.
Global Markets Turn Lower After U.S.-Russia Tensions Escalated
Barry Adams
19 Nov, 2024
New York City
Stock market indexes looked down, gold jumped, and bond yields edged lower amid rising tensions between Russia and the U.S.
The S&P 500 index declined 0.8%, and the Nasdaq Composite dropped 1.1% after Russia's president, Vladimir Putin, lowered his nation's bar for the use of atomic weapons.
Putin said Russia would consider using atomic weapons if his nation or its allies were met with the "use of conventional weapons that created a critical threat to their sovereignty and/or their territorial integrity.”
Russia's news agency TASS also noted that the nuclear doctrine was last revised in June 2020.
"Moscow also reserves the right to consider a nuclear response to a conventional weapons attack threatening its sovereignty, a large-scale launch of enemy aircraft, missiles, and drones targeting Russian territory, their crossing of the Russian border, and an attack on its ally Belarus," noted the news agency.
Investors sought protection in bonds amid rising geopolitical tensions and looming trade wars among three large trading blocs: the U.S., the European Union, and China.
Investors also awaited the release of surveys of manufacturing and service sectors and housing sector activities data later in the week.
U.S. Indexes and Treasury Yields
The S&P 500 index decreased 0.4% to $5,898.50, the Nasdaq Composite fell 0.3% to 18,741.05, and the Russell 2000 index declined 0.2% to 2,291.41.
The yield on 2-year Treasury notes edged lower to 4.26%, 10-year Treasury notes inched down to 4.38%, and 30-year Treasury bonds decreased to 4.56%.
WTI crude oil decreased $0.35 to $68.30 a barrel, and natural gas prices edged down 3 cents to $2.94 a thermal unit.
Gold decreased by $24.06 to $2,636.42 an ounce, and silver increased by $0.19 to $31.34.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 106.40.
U.S. Stock Movers
Walmart increased 3.7% to $87.16 after the retailer reported better-than-expected quarterly results and revised its annual outlook.
The retailer boosted its annual sales estimate to a new range between 4.8% and 5.1%, from the previous estimate between 3.75% and 4.75%.
Consolidated revenue in the third quarter increased 5.5% to $169.6 billion, net income advanced to $4.6 billion from $453 million, and net income rose to 57 cents from 6 cents a year ago.
The retailer said it repurchased 46 million shares for $3 billion in the year so far, as part of its $20 billion stock buyback plan.
The company said sales at its U.S. locations increased 5.5% to $114.9 billion, reflecting broad strength as more customers look for products beyond its grocery aisles.
E-commerce sales in the U.S. rose 22%, led by store-fulfilled pickup & delivery, advertising revenue, and marketplace activities.
Super Micro Computer soared 27% to $27.48 after the company appointed BDO as its new independent auditor following the resignation of its previous auditor, Ernst & Young.
The company also said it plans to file its annual report for the year ending on June 30 and its latest quarterly report ending on September 30.
Europe Movers: Caixabank, Nestle, ThyssenKrupp
Inga Muller
19 Nov, 2024
Frankfurt
Bond yields in the Euro Area edged lower after Russia-Ukraine conflict escalation worries dominated stock and bond market trading. Switzerland's trade surplus soared to a record high in October.
The DAX index decreased by 1.1% to 18,967.02; the CAC-40 index eased by 1.2% to 7,192.02; and the FTSE 100 index fell by 0.4% to 8,081.54.
The yield on 10-year German bonds edged lower to 2.31%, French bonds inched down to 3.05%, the UK gilts edged lower to 4.42%, and Italian bonds decreased to 3.53%.
ThyssenKrupp AG increased 8.1% to €3.67 after the German steelmaker reported slightly better-than-expected earnings.
Sales in the fiscal year 2024 ending in September declined 7% to €35 billion, and adjusted operating earnings declined to €567 million from €703 million a year earlier, respectively.
The company estimated net income to swing to €100 million from a loss of €1.4 billion in the financial year that just ended.
Net loss in the fiscal year 2024 shrank to €1.4 billion from €2.0 billion the prior year, driven by asset impairment of €1.2 billion in its steel division in Europe.
The company proposed to pay an annual dividend of 15 cents per share and return cash to shareholders for the third year in a row.
Nestle SA declined 1.8% to CHF 76.78 after the company said it plans to accelerate its cost savings by CHF 2.5 billion and support additional investments.
Caixabank SA decreased 4.8% to €5.42 after the company released its 2025-2027 strategic plan.
Europe Movers: Caixabank, Nestle, ThyssenKrupp
Inga Muller
19 Nov, 2024
Frankfurt
Bond yields in the Euro Area edged lower after Russia-Ukraine conflict escalation worries dominated stock and bond market trading. Switzerland's trade surplus soared to a record high in October.
The DAX index decreased by 1.1% to 18,967.02; the CAC-40 index eased by 1.2% to 7,192.02; and the FTSE 100 index fell by 0.4% to 8,081.54.
The yield on 10-year German bonds edged lower to 2.31%, French bonds inched down to 3.05%, the UK gilts edged lower to 4.42%, and Italian bonds decreased to 3.53%.
ThyssenKrupp AG increased 8.1% to €3.67 after the German steelmaker reported slightly better-than-expected earnings.
Sales in the fiscal year 2024 ending in September declined 7% to €35 billion, and adjusted operating earnings declined to €567 million from €703 million a year earlier, respectively.
The company estimated net income to swing to €100 million from a loss of €1.4 billion in the financial year that just ended.
Net loss in the fiscal year 2024 shrank to €1.4 billion from €2.0 billion the prior year, driven by asset impairment of €1.2 billion in its steel division in Europe.
The company proposed to pay an annual dividend of 15 cents per share and return cash to shareholders for the third year in a row.
Nestle SA declined 1.8% to CHF 76.78 after the company said it plans to accelerate its cost savings by CHF 2.5 billion and support additional investments.
Caixabank SA decreased 4.8% to €5.42 after the company released its 2025-2027 strategic plan.
Russia Fears Drive Eurozone Bond Yields to One-Month Low, Swiss Goods Trade Surplus Soars In October
Bridgette Randall
19 Nov, 2024
London
Stock market indexes across Europe looked down, bond yields headed lower, and the euro and the pound drifted lower against the U.S. dollar.
Benchmark indexes in Paris, Milan, Frankfurt, and London declined as investors worried about escalating tensions between Russia and Ukraine.
Investors sought safety in bonds amid worries of supply chain disruptions and a potential deepening of conflict between Russia and Ukraine.
Bond yields edged lower after Russia's president, Vladimir Putin, pledged to use atomic weapons in the event the nation is attacked by massive conventional weapons.
Moreover, the European Central Bank officials also signaled a dovish outlook for the future rate path, suggesting that rate cuts at the next policy meeting are less likely.
Chemical and Pharma Exports Growth Drives Swiss Trade Surplus to Record High in October
On the economic front, Switzerland's goods trade surplus soared to a record high of CHF 6 billion, up from the revised CHF 4.0 billion in September, according to a monthly update released by the Federal Customs Administration.
On a monthly basis, seasonally adjusted exports surged 10.2% to CHF 24.4 billion, driven by sharply higher sales of jewelry & watches, vehicles, and pharmaceuticals and chemicals.
Meanwhile, imports advanced 1.8% from the previous month to CHF 18.4 billion, with increases in chemical and pharmaceutical products, jewelry, and paper and graphic products.
Chemical and pharmaceutical exports jumped 15.6% to CHF 14.3 billion from CHF 12.3 billion; advanced electrical machinery rose 3.1% to CHF 2.7 billion from CHF 2.6 billion; and watches advanced 5.1% to CHF 2.1 billion from CHF 2.0 billion.
Between January and October 2024, international trade balance increased to CHF 39.5 billion, compared to CHF 31.8 billion in the same period in 2023.
Europe Indexes and Yields
The DAX index decreased by 1.1% to 18,967.02; the CAC-40 index eased by 1.2% to 7,192.02; and the FTSE 100 index fell by 0.4% to 8,081.54.
The yield on 10-year German bonds edged lower to 2.31%, French bonds inched down to 3.05%, the UK gilts edged lower to 4.42%, and Italian bonds decreased to 3.53%.
The euro edged lower to $1.05; the British pound inched down to $1.26; and the U.S. dollar strengthened to 88.27 Swiss cents.
Brent crude decreased $0.41 to $72.88 a barrel, and the Dutch TTF natural gas rose by €0.05 to €47.18 per MWh.
Europe Stock Movers
ThyssenKrupp AG increased 8.1% to €3.67 after the German steelmaker reported slightly better-than-expected earnings.
Sales in the fiscal year 2024 ending in September declined 7% to €35 billion, and adjusted operating earnings declined to €567 million from €703 million a year earlier, respectively.
The company estimated net income to swing to €100 million from a loss of €1.4 billion in the financial year that just ended.
Net loss in the fiscal year 2024 shrank to €1.4 billion from €2.0 billion the prior year, driven by asset impairment of €1.2 billion in its steel division in Europe.
The company proposed to pay an annual dividend of 15 cents per share and return cash to shareholders for the third year in a row.
Nestle SA declined 1.8% to CHF 76.78 after the company said it plans to accelerate its cost savings by CHF 2.5 billion and support additional investments.
Caixabank SA decreased 4.8% to €5.42 after the company released its 2025-2027 strategic plan.
Eurozone Bond Yields Eased to One-Month Low, Swiss Goods Trade Surplus Soared In October
Bridgette Randall
19 Nov, 2024
London
Stock market indexes across Europe looked down, bond yields headed lower, and the euro and the pound drifted lower against the U.S. dollar.
Benchmark indexes in Paris, Milan, Frankfurt, and London declined as investors worried about escalating tensions between Russia and Ukraine.
Investors sought safety in bonds amid worries of supply chain disruptions and a potential deepening of conflict between Russia and Ukraine.
Bond yields edged lower after Russia's president, Vladimir Putin, pledged to use atomic weapons in the event the nation is attacked by massive conventional weapons.
Moreover, the European Central Bank officials also signaled a dovish outlook for the future rate path, suggesting that rate cuts at the next policy meeting are less likely.
Chemical and Pharma Exports Growth Drives Swiss Trade Surplus to Record High in October
On the economic front, Switzerland's goods trade surplus soared to a record high of CHF 6 billion, up from the revised CHF 4.0 billion in September, according to a monthly update released by the Federal Customs Administration.
On a monthly basis, seasonally adjusted exports surged 10.2% to CHF 24.4 billion, driven by sharply higher sales of jewelry & watches, vehicles, and pharmaceuticals and chemicals.
Meanwhile, imports advanced 1.8% from the previous month to CHF 18.4 billion, with increases in chemical and pharmaceutical products, jewelry, and paper and graphic products.
Chemical and pharmaceutical exports jumped 15.6% to CHF 14.3 billion from CHF 12.3 billion; advanced electrical machinery rose 3.1% to CHF 2.7 billion from CHF 2.6 billion; and watches advanced 5.1% to CHF 2.1 billion from CHF 2.0 billion.
Between January and October 2024, international trade balance increased to CHF 39.5 billion, compared to CHF 31.8 billion in the same period in 2023.
Europe Indexes and Yields
The DAX index decreased by 1.1% to 18,967.02; the CAC-40 index eased by 1.2% to 7,192.02; and the FTSE 100 index fell by 0.4% to 8,081.54.
The yield on 10-year German bonds edged lower to 2.31%, French bonds inched down to 3.05%, the UK gilts edged lower to 4.42%, and Italian bonds decreased to 3.53%.
The euro edged lower to $1.05; the British pound inched down to $1.26; and the U.S. dollar strengthened to 88.27 Swiss cents.
Brent crude decreased $0.41 to $72.88 a barrel, and the Dutch TTF natural gas rose by €0.05 to €47.18 per MWh.
Europe Stock Movers
ThyssenKrupp AG increased 8.1% to €3.67 after the German steelmaker reported slightly better-than-expected earnings.
Sales in the fiscal year 2024 ending in September declined 7% to €35 billion, and adjusted operating earnings declined to €567 million from €703 million a year earlier, respectively.
The company estimated net income to swing to €100 million from a loss of €1.4 billion in the financial year that just ended.
Net loss in the fiscal year 2024 shrank to €1.4 billion from €2.0 billion the prior year, driven by asset impairment of €1.2 billion in its steel division in Europe.
The company proposed to pay an annual dividend of 15 cents per share and return cash to shareholders for the third year in a row.
Nestle SA declined 1.8% to CHF 76.78 after the company said it plans to accelerate its cost savings by CHF 2.5 billion and support additional investments.
Caixabank SA decreased 4.8% to €5.42 after the company released its 2025-2027 strategic plan.
Japanese Yen In Focus Amid Growing Prospects of BoJ Intervention
Akira Ito
19 Nov, 2024
Tokyo
Stock market indexes in Tokyo rebounded in Tuesday's trading, and the yen was in focus on the rising government intervention prospects.
The Nikkei 225 stock average gained 0.4%, the broader Topix index advanced 0.6%, and the yen hovered near 154.50 against the U.S. dollar.
Bank of Japan Governor Kazuo Ueda reiterated the central bank's commitment to raising rates gradually but failed to provide the timing and size of these increases.
The yen edged slightly higher on the growing speculation that the Bank of Japan is preparing to conduct another market intervention and arrest the rapid decline of the currency.
Stocks in Tokyo have been volatile over the last six weeks after the persistent weakening of the yen supports higher profits at export-driven companies but also lifts inflation, which negatively impacts consumer spending.
On the economic front, investors are looking forward to the release of international trade data on Wednesday and an inflation update on Friday.
Japan Stock Movers
The Nikkei 225 stock average increased 0.4% to 38,377.07, and the broader Topix index gained 0.6% to 2,708.04.
Banks and leading export companies led the market gainers in Tuesday's trading.
Sumitomo Mitsui Financial jumped 3.1% to ¥3,669.0, Mitsubishi UFJ Financial advanced 1.6% to ¥1,838.50, and Mizuho Financial gained 2.7% to ¥3,842.0.
Panasonic Holdings advanced 4.2% to ¥1,547.50, Canon added 1.1% ¥5,039.0, and Sony Group inched higher 0.2% to ¥2,922.0.
Japan Steel Works increased 11.3% to ¥6,488.0, Nidec Corp. advanced 4.4% to ¥2,864.0, and Fujikura Ltd. jumped 6.9% to ¥5,638.0.
Suzuki Motor increased 0.8% to ¥1,654.0, but Recruit Holding declined 3% to ¥9,403.0.
Japanese Yen In Focus Amid Growing Prospects of BoJ Intervention
Akira Ito
19 Nov, 2024
Tokyo
Stock market indexes in Tokyo rebounded in Tuesday's trading, and the yen was in focus on the rising government intervention prospects.
The Nikkei 225 stock average gained 0.4%, the broader Topix index advanced 0.6%, and the yen hovered near 154.50 against the U.S. dollar.
Bank of Japan Governor Kazuo Ueda reiterated the central bank's commitment to raising rates gradually but failed to provide the timing and size of these increases.
The yen edged slightly higher on the growing speculation that the Bank of Japan is preparing to conduct another market intervention and arrest the rapid decline of the currency.
Stocks in Tokyo have been volatile over the last six weeks after the persistent weakening of the yen supports higher profits at export-driven companies but also lifts inflation, which negatively impacts consumer spending.
On the economic front, investors are looking forward to the release of international trade data on Wednesday and an inflation update on Friday.
Japan Stock Movers
The Nikkei 225 stock average increased 0.4% to 38,377.07, and the broader Topix index gained 0.6% to 2,708.04.
Banks and leading export companies led the market gainers in Tuesday's trading.
Sumitomo Mitsui Financial jumped 3.1% to ¥3,669.0, Mitsubishi UFJ Financial advanced 1.6% to ¥1,838.50, and Mizuho Financial gained 2.7% to ¥3,842.0.
Panasonic Holdings advanced 4.2% to ¥1,547.50, Canon added 1.1% ¥5,039.0, and Sony Group inched higher 0.2% to ¥2,922.0.
Japan Steel Works increased 11.3% to ¥6,488.0, Nidec Corp. advanced 4.4% to ¥2,864.0, and Fujikura Ltd. jumped 6.9% to ¥5,638.0.
Suzuki Motor increased 0.8% to ¥1,654.0, but Recruit Holding declined 3% to ¥9,403.0.