Market Update
Europe Movers: Britvic, Carlsberg, Delivery Hero, French Banks, HgCapital, Marston's
Inga Muller
08 Jul, 2024
Frankfurt
France is facing political gridlock after Sunday's snap election resulted in the first ever hung parliament, as neither party won a clear majority.
Immigration, taxes, and pensions are likely to dominate the political agenda over the next three years.
The DAX index increased by 0.4% to 18,540.62; the CAC-40 index rose by 0.2% to 7,692.54; and the FTSE 100 index rose by 0.2% to 8,219.48.
The yield on 10-year German bonds edged lower to 2.54%. French bonds inched lower to 3.15%; the UK gilts inched lower to 4.13%; and Italian bonds decreased to 3.92%.
The French banks rallied after the far-right National Rally Party failed to win a majority in the second round of the snap election on Sunday.
Credit Agricole, Societe Generale, and BNP Paribas advanced between 1% and 2%.
Britvic Plc increased 4.6% to 1,265.0 pence after the Danish brewer agreed to acquire the British soft drink maker for £3.3 billion.
Carlsberg jumped 4.4% to DKK 873.20.
Marston's PLC jumped 15% to 35.29 pence after the pub and hotel group agreed to sell its 40% stake in the brewing joint venture with Carlsberg.
HgCapital Trust increased by 0.1% to 485.62 pence after the private equity company sold its remaining stake in the business software company TeamSystem.
Delivery Hero decreased 5.2% to €19.93 after the German food delivery company said it may face a fine of more than €400 million from the European Union for violating antitrust rules.
France Faces Political Gridlock After Left Alliance Wins Big But Lacks Majority
Bridgette Randall
08 Jul, 2024
London
European markets advanced despite France heading for months of political gridlock after neither party came close to winning a majority seat to form a government after the second phase of the snap election this Sunday.
The recently formed alliance of left-leaning parties, the New Popular Front, won the largest bloc of seats, winning 182 seats in France's 577-member parliament.
President Emmanuel Macron's coalition, Ensemble, the centrist alliance, won the second largest bloc with 163 seats, followed by the far-right National Rally Party with 143 seats.
Any governing party needs at least 289 seats to form the next government.
France is in uncharted territory as the country has always had a dominant party to form the government, avoiding the need for coalitions among leading parties with different views.
German Exports and Trade Surplus Expanded In May
On the economic front, Germany's exports declined for the first time in three months in May, data from the Federal Statistical Office, Destatis, showed on Monday.
Exports declined 3.6% from the previous month to €131.6 billion, and imports fell 6.6% to €106.7 billion, resulting in a trade surplus of €24.9 billion.
The trade surplus in May jumped to €24.9 billion from €19 billion a year ago.
Exports to the member states of the European Union decreased by 2.5% to €72.3 billion, and imports from the region fell by 8.9% to €55.7 billion.
Exports to the U.S., the largest market for German goods, declined 2.9% to €13.8 billion, and to the People's Republic of China, they decreased 10.2% to €7.6 billion.
Imports from the People's Republic of China, the largest source of imports, rose 1.7% to €13.0 billion, followed by imports from the United States worth 7.9 billion, an increase of 4.6%.
Europe Indexes and Yields
The DAX index increased by 0.4% to 18,540.62; the CAC-40 index rose by 0.2% to 7,692.54; and the FTSE 100 index rose by 0.2% to 8,219.48.
The yield on 10-year German bonds edged lower to 2.54%. French bonds inched lower to 3.15%; the UK gilts inched lower to 4.13%; and Italian bonds decreased to 3.92%.
The euro edged lower to $1.08; the British pound inched higher to $1.28; and the U.S. dollar weakened to 89.62 Swiss cents.
Brent crude increased $1.07 to $85.90 a barrel, and the Dutch TTF natural gas fell by €0.41 to €33.43 per MWh.
Europe Stock Movers
The French banks rallied after the far-right National Rally Party failed to win a majority in the second round of the snap election on Sunday.
Credit Agricole, Societe Generale, and BNP Paribas advanced between 1% and 2%.
Britvic Plc increased 4.6% to 1,265.0 pence after the Danish brewer agreed to acquire the British soft drink maker for £3.3 billion.
Carlsberg jumped 4.4% to DKK 873.20.
Marston's PLC jumped 15% to 35.29 pence after the pub and hotel group agreed to sell its 40% stake in the brewing joint venture with Carlsberg.
HgCapital Trust increased by 0.1% to 485.62 pence after the private equity company sold its remaining stake in the business software company TeamSystem.
Delivery Hero decreased 5.2% to €19.93 after the German food delivery company said it may face a fine of more than €400 million from the European Union for violating antitrust rules.
Japan's Current Account Surplus Widened In May, Real Wages Continue to Decline
Akira Ito
08 Jul, 2024
Tokyo
Benchmark indexes in Tokyo turned lower for the second day in a row after real wages declined in May for the 26th month in a row.
The Nikkei declined 0.3% and the broader Topix dropped more than 0.5% amid interest rate uncertainty and weak consumer sentiment.
Japan's average nominal wages for full-time workers increased 2.1% to 378,803 yen, and part-time workers rose 3.2% to 108,511 yen.
Excluding bonuses and incentive pays, average wages increased 2.5% to 263,539 yen, and overtime and other allowances advanced 2.3% to 19441 yen.
The 5.1% rise in negotiated pay by the workers union at the largest companies during the annual wage negotiation this spring supported the wage gains, but smaller and medium-sized companies raised wages between 2% and 3%, closer to the long-term average over the last decade.
Cash earnings for an average worker, including base and overtime, increased 1.9% to 297,151 yen or $1,850.
Despite the nominal wage gains, real wages, after adjusting for inflation, decreased 1.4% in May following the revised decline of 1.2% in April, according to the monthly report released on Monday by the Ministry of Health, Labor, and Welfare.
Meanwhile, Japan's current account surplus rose more than expected in May.
Current account surplus increased to 2,849.9 billion yen from 2,010.1 billion in the same month a year earlier, the Ministry of Finance reported Monday.
The current account generated surplus for the 16th month in a row as primary income surplus expanded to 4,211.1 billion yen from 3,726.7 billion in the previous year.
The goods trade deficit narrowed to 1,108.9 billion yen from 1,199.8 billion yen after exports rose 12.1% and imports advanced 9.3%.
Japan Stock Movers
The Nikkei 225 stock average decreased 0.3% to 40,780.70, and the Topix Index dropped 0.6% to 2,867.61.
Tech stocks traded volatile, but artificial intelligence-linked stocks struggled after advancing in the morning session.
Tokyo Electron, Screen Holdings, Advantest, and SoftBank edged down a fraction.
Banks were also among the leading decliners in Monday's trading.
Sumitomo Mitsui, Mizuho Financial, and Mitsubishi UFJ declined between 0.3% and 1.2%.
Export-linked companies declined for the second week in a row on the looming market intervention to support the yen.
Kawasaki Kisen Kaisha, Omron, Canon, Hitachi Zosen declined more than 3%.
Retail stocks declined after advancing for two weeks in a row.
J. Front Retail, Seven & I, Isetan Mitsukoshi, Takashimaya, and Fast Retailing traded in a tight range between a decline of 0.3% and a rise of 1.2%.
China Stocks Face Renewed Downward Pressure Amid Low Expectations Ahead of Third Plenum
Li Chen
08 Jul, 2024
Hong Kong
Stocks in Hong Kong and Shanghai traded down on Monday after a week of choppy trading.
The Hang Seng index dropped nearly 2%, and the CSI 300 index declined close to 1% due to persistent economic growth worries.
The market rally powered by the state-controlled bank intervention lost steam as investors shifted their focus to the upcoming earnings season and a gathering of policymakers.
Investors are hoping that policymakers may announce significant reforms at the end of the third four-day plenary session of 300 communist party policymakers this week.
However, hopes are receding for deep and broad reforms because of the central government's lack of financial headroom and weak consumer sentiment.
The growth in exports has contributed to the economic growth in the current year, but the growth is expected to slow down in the second half as the economies in the U.S. and the European Union are expected to face further headwinds.
Moreover, rising trade tensions with the European Union are also weighing on market sentiment, and the commerce ministry said it plans to hold an anti-dumping hearing next week for the import of brandy from the region.
In Europe, the euro edged slightly lower after France's second round of parliamentary elections showed a hung parliament with three major blocks but no clear majority.
France's newly formed New Popular Front won 182 seats, President Emmanuel Macron's coalition ensemble clinched 168, and the far-right National Rally Party won 143 seats.
China Stock Movers
The Hang Seng index decreased 1.7% to 17,499.27, and the CSI 300 index dropped 0.7% to 3,408.55.
Shipping stocks remained under pressure for the second week in a row.
COSCO Shipping declined 7.2% to HK $12.46, and Orient Overseas dropped 6.4% to HK $120.20.
Ganfeng Lithium fell 4.7% to HK $15.30 after the mining company said the mainland financial regulator fined the company for insider trading.
Property developers continued to slide for the second week in a row amid worries of a lack of demand outside the top-tier cities.
Longfor Group decreased 3.5% to HK $10.74, China Vanke fell 4.5% to HK $4.49, and China Resources Land decreased 3% to HK $26.60.
India Movers: Bank of Baroda, IndusInd Bank, JM Financial, NLC India, Power Grid, Titan Company
Arun Goswami
08 Jul, 2024
Mumbai
India indexes lacked direction in early trading as investors looked forward to the government's plan to tackle a sky-high budget deficit.
The Union Budget is expected to show higher infrastructure spending and more regulatory reforms to attract foreign investment.
The Sensex index decreased by 0.1% to 79,922.68, and the Nifty index decreased by 0.1% to 24,300.90.
On the Mumbai stock exchange, 279 stocks traded at their 52-week highs, and 22 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds inched lower to 6.99%, and the Indian rupee edged higher to ₹83.44 against the U.S. dollar.
NLC India jumped 2.9% to ₹269.0, and the company won coal mining rights at a block in Machhakata, Odisha, with an estimated reserve of 1,377 million tons of coal.
IndusInd Bank gained 0.1% to ₹1,435.65, and the bank said deposits increased by 15% to ₹3.98 lakh crore and loan portfolios advanced 16% to ₹3.48 lakh crore.
Bank of Baroda declined 2.6% to ₹266.75, and the bank said its domestic deposit base increased 5.2% to ₹11.05 lakh crore and loan advances rose 8.5% to ₹8.81 lakh crore.
JM Financial declined 1.1% to ₹97.19, and the company's board approved the purchase of a 43% stake in JM Financial Credit Solutions for ₹1,282 crore.
Simultaneously, JM Financial Credit Solutions will acquire a 71.8% stake in JM Financial Asset Reconstruction Company from JM Financial for ₹856 crore.
Power Grid Corporation of India decreased 0.1% to ₹339.0, and the company's board is scheduled to meet on July 10 to increase the company's borrowing limit in the current financial year.
Titan Company declined 3.5% to ₹3,142.85, and the jewelry retailer said standalone revenue increased 9% from a year ago in the fiscal first quarter ending in March.
The company expanded its retail store network by 61 net new stores to 3,096.
Revenue in the jewelry segment increased 9%, watches and wearable rose 15%, and revenue at the CaratLane subsidiary surged 18%.
Nonfarm Payroll and Wage Growth Slowed in June, Labor Force Participation Rate Holds Steady
Brian Turner
05 Jul, 2024
Washington, D.C.
The U.S. economy expanded payrolls at a slower pace in June than the previous month, the latest update from the U.S. Bureau of Labor Statistics showed Friday.
Nonfarm payrolls increased by 206,000 in June, slower than 218,000 in May, and the jobless rate increased to 4.1% in the month, the highest since November 2021.
Despite the steady expansion of payrolls over the last three years, the labor force participation rate held at 62.6% and the employment-population rate remained at 60.1%.
Both measures have remained steady over the year, indicating a churn in the employment base but little improvement in expanding the overall employment base.
The number of people not in the labor force who currently want a job declined by 483,000 to 5.2 million in June.
These individuals were not counted as unemployed because they were not actively looking for a job during the 4 weeks preceding the survey.
The average hourly earnings for all employees increased 10 cents, or 0.3%, from the previous month of 3.9% a year ago to $35.0.
The April nonfarm payroll increase was revised down to 108,000 from 167,000, and the change for May was revised to 212,000 from 272,000.
U.S. Treasury Yields Turn Lower After Sharp Payroll Growth Revisions
Barry Adams
05 Jul, 2024
New York City
Stocks on Wall Street turned higher on the final day of the holiday-shortened week as investors returned from the Independence Day holiday.
Treasury yields turned sharply lower after nonfarm payrolls were sharply revised lower in April and May, indicating labor market conditions are softening, supporting the case for the Federal Reserve to lower rates as early as September.
Market sentiment has been on the defensive this week after the service sector unexpectedly contracted, weekly jobless claims rose for the ninth week in a row, and private payroll growth slowed in June.
For the week, the S&P 500 index headed higher by 0.7% and the Nasdaq Composite gained 1.8%, supported by another leg up in the tech stocks.
The two widely followed indexes are set to close higher for the fifth consecutive week in a row.
Nonfarm Payroll Growth Slowed in June
The U.S. economy expanded payrolls at a slower pace in June than the previous month, the latest update from the U.S. Bureau of Labor Statistics showed Friday.
Nonfarm payrolls increased by 206,000 in June, slower than 218,000 in May, and the jobless rate increased to 4.1% in the month, the highest since November 2021.
Despite the steady expansion of payrolls over the last three years, the labor force participation rate held at 62.6% and the employment-population rate remained at 60.1%.
Both measures have remained steady over the year, indicating a churn in the employment base but little improvement in expanding the overall employment base.
The number of people not in the labor force who currently want a job declined by 483,000 to 5.2 million in June.
These individuals were not counted as unemployed because they were not actively looking for a job during the 4 weeks preceding the survey.
The average hourly earnings for all employees increased 10 cents, or 0.3%, from the previous month of 3.9% a year ago to $35.0.
The April nonfarm payroll increase was revised down to 108,000 from 167,000, and the change for May was revised to 212,000 from 272,000.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.1% to 5,543.37, and the Nasdaq Composite rose 0.4% to 18,267.56.
The yield on 2-year Treasury notes edged lower to 4.64%, 10-year Treasury notes decreased to 4.31%, and 30-year Treasury bonds edged lower to 4.51%.
WTI crude oil decreased $0.15 to $83.86 a barrel, and natural gas prices edged up 3 cents to $2.38 a thermal unit.
Gold decreased by $24.67 to $2,381.24 an ounce, and silver rose 51 cents to $30.87.
The dollar index, which weighs the U.S. currency against a basket of foreign currencies, edged lower to 105.07.
U.S. Stock Movers
Nvidia decreased 0.8% to $127.28, and the artificial intelligence application processing chipmaker is set to close higher this week by 3% after falling more than 6% over the previous two weeks.
Chipotle Mexican Grill advanced 0.2% to $61.78 after the fast food restaurant chain operator split its stock 50-to-1 and traded ex-split on June 26.
The company's fundamentals remain strong, revenue in the first quarter of 2024 rose 14%, and same-store sales increased 7%.
Europe Movers: Aixtron, Germany Automakers, HSBC, UK Home Builders
Inga Muller
05 Jul, 2024
Frankfurt
European markets extended weekly gains, and the pound and the euro were in focus after the UK's Labour Party won in a landslide victory and the French parliament faced gridlock.
The DAX index increased by 0.9% to 18,608.56; the CAC-40 index rose by 0.4% to 7,723.98; and the FTSE 100 index rose by 0.001% to 8,240.89.
The yield on 10-year German bonds edged lower to 2.56%. French bonds inched lower to 3.20%; the UK gilts inched lower to 4.16%; and Italian bonds decreased to 3.95%.
Home builders in the UK traded higher after the Labour Party won in a landslide, and the new government plans to ramp up the building of affordable housing over the next five years by 1.5 million units.
Persimmons, Barratt Developments, Vistry Group, and Taylor Wimpey gained between 2% and 3%.
HSBC Holdings declined 1.9% to 678.30 pence, and a report suggested that UBS and BNP Paribas may be interested in the company's German wealth management unit.
Volkswagen, BMW, and Mercedes-Benz advanced more than 1% after the European Union imposed additional tariffs of as much as 38% on the imported Chinese electric vehicles.
Aixtron SE soared 17.5% to €22.19 after the chipmaking equipment maker reported stronger-than-expected orders in the second quarter.
The UK's Labour Party Returns to Power In a Landslide Victory Amid Myriad Economic Challenges
Bridgette Randall
05 Jul, 2024
London
European markets traded higher and extended weekly gains after the center-left Labour Party won a landslide victory, ending the 14-year Conservative Party government.
Benchmark stock indexes and the pound in London held steady on the hopes that the new government will retain financial policies in place to lower the national debt below 100% of gross domestic product.
The new UK government is going to face a tough task in lowering the budget deficit, balancing the increase in social spending, and altering the tax regime.
In France, voters are heading for the second round of elections on Sunday, and preliminary polls predict a hung parliament as the National Rally Party faces a coalition of parties aligned to prevent the far-right party from winning a majority.
On the economic front, France's international goods trade deficit widened to €8 billion in May from a downwardly revised €7.5 billion in April, the ministry of finance and economy reported Friday.
The trade gap reached its largest level since October 2023, after exports decreased 1.8% to €50.2 billion and imports eased 0.7% to €58.2 billion.
The good trade balance has been negative since 2003, and the monthly deficit hovered around €5 billion before 2019 before deteriorating due to the surge in the cost of imported energy.
Industrial production in Germany declined 6.7% from a year ago in May, adjusted for seasonal and calendar factors, the Federal Statistical Office, or Destatis, reported Friday.
Euro Area retail sales increased 0.3% from a year ago in May and slowed from a 0.6% rise in the previous month, Eurostat reported on Friday.
On a monthly basis, retail sales increased by 0.1% from the previous month and rebounded from an upwardly revised decline of 0.2%.
Europe Indexes and Yields
The DAX index increased by 0.9% to 18,608.56; the CAC-40 index rose by 0.4% to 7,723.98; and the FTSE 100 index rose by 0.001% to 8,240.89.
The yield on 10-year German bonds edged lower to 2.56%. French bonds inched lower to 3.20%; the UK gilts inched lower to 4.16%; and Italian bonds decreased to 3.95%.
The euro edged lower to $1.08; the British pound inched higher to $1.28; and the U.S. dollar weakened to 89.90 Swiss cents.
Brent crude increased $0.17 to $87.27 a barrel, and the Dutch TTF natural gas fell by €0.21 to €33.24 per MWh.
Europe Stock Movers
Home builders in the UK traded higher after the Labour Party won in a landslide, and the new government plans to ramp up the building of affordable housing over the next five years by 1.5 million units.
Persimmons, Barratt Developments, Vistry Group, and Taylor Wimpey gained between 2% and 3%.
HSBC Holdings declined 1.9% to 678.30 pence, and a report suggested that UBS and BNP Paribas may be interested in the company's German wealth management unit.
Volkswagen, BMW, and Mercedes-Benz advanced more than 1% after the European Union imposed additional tariffs of as much as 38% on the imported Chinese electric vehicles.
Aixtron SE soared 17.5% to €22.19 after the chipmaking equipment maker reported stronger-than-expected orders in the second quarter.
Nikkei and Topix Trimmed Weekly Gains, Japan's Household Spending Unexpectedly Declined In May
Akira Ito
05 Jul, 2024
Tokyo
Benchmark indexes in Tokyo traded down and trimmed weekly gains after rallying in five sessions in a row.
The Nikkei 225 and the Topix fell ahead of the U.S. jobs report later in the day, and the yen slightly rebounded from its 38-year low to 160.62 against the U.S. dollar.
Japan's household spending unexpectedly declined in May by 1.8% to 290,328 yen, the internal affairs ministry reported Friday.
Household spending fell after rising 0.5% in the previous month and declined in 13 of the last 14 months.
Spending on food fell 3.1% as purchases of vegetables and seaweed fell after poor crops pushed prices higher.
Spending on housing declined by 3.5%, reversing the gain of 3.5% in the earlier month, but medical care spending accelerated to 6.4% from 1.2% in the previous month.
The resumption of the decline in household spending dashed hopes for the Bank of Japan's policymakers to start the spiral of higher spending and wages, supporting the upward momentum.
In international trading, the pound and the euro traded lower as investors worried that new governments in France and the U.K. are likely to step up government spending amid record-high national debts.
The UK's Prime Minister, Rishi Sunak, conceded defeat after the Labour Party won 410 seats in the House of Commons, with 650 seats.
The sharp reversal in voter sentiment came about after a series of recent policy missteps over immigration, healthcare funding, and lack of infrastructure spending during the Conservative government of 14 years.
In France, the far-right National Rally Party is struggling to win an absolute majority in the second round of the election scheduled for July 7, after President Emmanuel Macron's party formed a coalition with the newly formed Popular Front.
Financial markets in New York are set to reopen lower after the Independence Day holiday on July 4.
Japan Stock Movers
The Nikkei 225 stock average declined 0.2% to 40,828.58, and the Topix index fell 0.6% to 2,881.62.
For the week, the two benchmark indexes are set to close up 3%.
Tech stocks were among the leading decliners, and Tokyo Electron, Screen Holdings, Advantest, and SoftBank declined between 1% and 1.5%.
Retailers were in focus again in the hopes of higher earnings, driven by a surge in foreign tourists.
Isetan Mitsukoshi gained ¥3,528.0, Seven & I edged down 0.1% to ¥1,993.50, Mercari gained 4.0% to ¥2,407.50, and Takashimaya added 0.8% to ¥2,953.50.
Nippon Yusen declined 3.5% to ¥4,923.0, Mitsui OSK fell 3.4% to ¥5,111.0, and Kawasaki Kisen dropped 2.5% to ¥2,700.50.
China Markets Remain Under Pressure Ahead of the Third Plenum Next Week
Li Chen
05 Jul, 2024
Mumbai
Market sentiment was weak in Shanghai and Hong Kong after the European Union imposed additional tariffs on Chinese electric vehicles starting Friday.
The Hang Seng index and the CSI 300 index declined 1% after the European Union imposed additional tariffs between 20.8% and 37.6% on Chinese electric vehicles sold in the region.
The additional tariffs, on top of the 10% current duty, are expected to be in place for four months.
Market sentiment remained subdued as investors looked ahead to additional economic and financial market-supportive measures at the end of the Communist Party's Third Plenum.
Expectations are high that policymakers may announce deeper economic reforms to revive the faltering property market and bolster consumer confidence.
However, Chinese policymakers are struggling to devise broad reforms amid falling foreign investments, rising capital outflows, weak consumer sentiment, and record high youth unemployment.
Investors are looking ahead to the start of earnings season next week, and technology and export-heavy industrial companies are likely to meet or exceed earnings expectations.
In international trading, the pound and the euro traded lower as investors worried that new governments in France and the U.K. are likely to step up government spending amid record-high national debts.
The UK's Prime Minister, Rishi Sunak, conceded defeat after the Labour Party won 406 seats in the House of Commons, with 650 seats.
The sharp reversal in voter sentiment came about after a series of recent policy missteps over immigration, healthcare funding, and lack of infrastructure spending during the Conservative government of 14 years.
China Stock Movers
The Hang Seng Index declined 1% to 17,851.36, and the CSI 300 index dropped 0.97% to 3,412.25.
Electric vehicle markets dropped after the European Union's additional tariffs kicked in.
Li Auto declined 2.2% to HK $78.95, BYD fell 0.3% to HK $229.50, Xpeng dropped 3.5% to HK $30.20, and Nio eased 1.5% to HK $37.05.
Shandong Jianbang New Material soared 130% from its initial public offering price of 44.63 yuan on the first day of its trading in Shanghai.
India Movers: BGR Energy, HDFC Bank, IDBI, IDFC First Bank, Krsnaa Diagnostics, Raymond, VST Industries
Arun Goswami
05 Jul, 2024
Mumbai
The Sensex and Nifty indexes are set to close higher for the fifth consecutive week, and investors are looking forward to the start of earnings season next week.
The Sensex index decreased by 0.5% to 79,649.22, and the Nifty index decreased by 0.4% to 24,211.50.
On the Mumbai stock exchange, 199 stocks traded at their 52-week highs, and 12 stocks traded at their 52-week lows.
Raymond Ltd. increased 2.6% to ₹3,040.0, and the company said in a regulatory filing that the company's board has approved the spin-off of its real estate unit.
Current shareholders will receive one share of the newly formed Raymond Realty for every share held in the company and trade on the NSE and the BSE.
IDFC First Bank increased 0.03% to ₹81.19, and the company said it sold shares to six insurance companies, including LIC, HDFC Life, Aditya Birla Sun Life, Bajaj Allianz, SBI General Insurance, and ICICI Lombard.
IDFC sold 39.68 crore shares at ₹80.63 per share and raised ₹3,200 crore.
VST Industries increased 1.8% to ₹4,114.15, and investor Radhakishan Damani has increased his stake in the tobacco company to 3.47% from 1.95% at the end of March.
IDBI Bank increased 0.2% to ₹83.86, and the bank said total deposits increased 13% from a year ago to ₹2.77 lakh crore and net advance increased 17% to ₹1.94 lakh crore.
BGR Energy Systems jumped 4.5% to ₹44.08, and the company board approved the rights offering plan to raise ₹1,000 crore.
Krsnaa Diagnostics increased 1% to ₹695.25, and the company won an order from Bhabha Atomic Research Centre to provide tele reporting services for radiology to the institute's hospital in Mumbai.
HDFC Bank declined 3.5% to ₹1,665.65, and the company said total outstanding loans decreased 0.8% from the previous quarter and rose 14.9% to ₹24.9 lakh crore.
Excluding the merger with HDFC, deposits increased 16.5% from a year ago and were flat from the previous quarter to ₹23.8 lakh crore.
Europe Movers: Barclays, French Banks, Nordex, Smith & Nephew, Spectris
Inga Muller
04 Jul, 2024
Frankfurt
European markets advanced and extended weekly gains, and bond yields edged higher amid election uncertainty in France and the U.K.
German factory orders declined in May due to fewer orders for large-ticket items, and Swiss inflation, one of the lowest in the world, eased in June to 1.3% from 1.4% in May.
The DAX index increased by 0.3% to 18,437.71; the CAC-40 index rose by 0.8% to 7,692.10; and the FTSE 100 index rose by 0.9% to 8,244.87.
The yield on 10-year German bonds edged lower to 2.57%; French bonds inched lower to 3.22%; the UK gilts inched lower to 4.20%; and Italian bonds decreased to 4.0%.
French banks were in focus ahead of the French government bond sale.
Credit Agricole jumped 2.8% to €13.63, Societe Generale gained 2.8% to €23.59, and BNP Paribas advanced 2.5% to €64.29.
Barclays PLC increased 2.3% to 224.32 pence, and the UK-based bank said it agreed to sell its German consumer finance business to Austria-based BAWAG.
Spectris plc gained 1.3% to 2,886.0 pence, and the instrumentation company agreed to acquire SciAps for an initial payment of $200 million and a performance-based payment of as much as $60 million.
Nordex SE advanced 4.4% to €12.48, and the wind turbine company said DenkerWulf placed an order for seven N149/5.X turbines.
Smith & Nephew soared 7.3% to 1,057.50 pence after activist investor Cevian Capital disclosed a 5% stake in the medical equipment maker.
European Markets Extend Weekly Gains and Bond Yields Edged Higher
Bridgette Randall
04 Jul, 2024
London
European market indexes advanced for the second day in a row as voting began across polling stations in the U.K.
Benchmark indexes in London and Paris jumped nearly 1%, and preliminary polls suggest a dramatic shakeup in British politics.
The Labour Party is expected to win a historic majority between 429 and 484 seats, and the Conservative Party is likely to struggle to win even 65 seats.
After 14 years of ruling, the Conservative Party is likely to shrink to a minority party on the British political scene, which could see a change in policy at several levels, including immigration and government spending priorities.
On the economic front, Switzerland's consumer price inflation slowed to 1.3% in June from 1.4% in May, the Swiss Federal Statistics Office reported Thursday.
Core inflation, which excludes unprocessed food and energy, decreased to 1.1% in the month from 1.2% in the previous month.
Seasonally adjusted factory orders in Germany in May dropped 8.6% from a year ago and 1.6% from the previous month, Destatis reported Thursday.
On a monthly basis, orders declined for the fifth month in a row.
New orders for April were revised to a decrease of 0.6% from the previous month and a decline of 1.8% from the same month a year ago.
Large orders, which include orders for ships, trains, and planes, dropped 19.2% from the previous month, offset by an 11.2% increase in orders for data processing, electronic, and optical equipment.
Europe Indexes and Yields
The DAX index increased by 0.3% to 18,437.71; the CAC-40 index rose by 0.8% to 7,692.10; and the FTSE 100 index rose by 0.9% to 8,244.87.
The yield on 10-year German bonds edged lower to 2.57%; French bonds inched lower to 3.22%; the UK gilts inched lower to 4.20%; and Italian bonds decreased to 4.0%.
The euro edged lower to $1.08; the British pound inched higher to $1.28; and the U.S. dollar weakened to 90.23 Swiss cents.
Brent crude increased $0.14 to $86.37 a barrel, and the Dutch TTF natural gas fell by €0.17 to €32.14 per MWh.
Europe Stock Movers
French banks were in focus ahead of the French government bond sale.
Credit Agricole jumped 2.8% to €13.63, Societe Generale gained 2.8% to €23.59, and BNP Paribas advanced 2.5% to €64.29.
Barclays PLC increased 2.3% to 224.32 pence, and the UK-based bank said it agreed to sell its German consumer finance business to Austria-based BAWAG.
Spectris plc gained 1.3% to 2,886.0 pence, and the instrumentation company agreed to acquire SciAps for an initial payment of $200 million and a performance-based payment of as much as $60 million.
Nordex SE advanced 4.4% to €12.48, and the wind turbine company said DenkerWulf placed an order for seven N149/5.X turbines.
Smith & Nephew soared 7.3% to 1,057.50 pence after activist investor Cevian Capital disclosed a 5% stake in the medical equipment maker.
Weak Yen and U.S. Rate Cut Hopes Supported Broad Market Rally In Tokyo
Akira Ito
04 Jul, 2024
Tokyo
Benchmark indexes jumped for the fifth session in a row amid a broad rally supported by the strong advance in overnight trading in New York.
The Nikkei 225 and the Topix gained nearly 1% on the interest rate, which cut hopes in the U.S.
The Topix index approached a record high last seen in December 1989.
Investors took an optimistic view of the latest slew of soft U.S. economic data after private sector payrolls rose less than expected in June and initial unemployment claims rose for the fourth week in a row.
Moreover, the service sector unexpectedly contracted in June, supporting the case that the Federal Reserve may cut rates as early as September.
The persistent weakness in the yen also contributed to the market advance as weaker yens boost the profits of export-heavy industries.
The yen traded at 161.39 against the U.S. dollar, and the yield on Japan's 10-year government bonds stayed above 1% but eased to 1.08%.
Japan Stock Movers
The Nikkei 225 stock average advanced 0.9% to 40,952.44, and the Topix index gained 0.91% to 2,898.44.
Kawasaki Heavy Industries dropped 7.9% to ¥5,978.0 after the Ministry of Defense ordered an investigation into allegations that the firm paid bribes to officials for submarine repair contracts.
Tech stocks were among the leading gainers for the second week in a row.
Tokyo Electron, Advantest, Screen Holdings, and SoftBank gained between 1.5% and 3.0%.
Renesas Electronics jumped 3.6% to ¥3,282.0, and Yamaha Motor advanced 5% to ¥1,608.0.
Mitsui Mining jumped 5% to ¥5,346.0, and Mitsubishi Materials advanced 4% to ¥3,139.0 following the rebound in copper prices in international markets.