Market Update
Japan's First Quarter GDP Contracted at a Faster Pace, Nikkei Extended Rally to Third Day
Akira Ito
02 Jul, 2024
Tokyo
The persistent weakness in the yen boosted stock market indexes for the third session in a row.
The Nikkei and the Topix indexes jumped more than 1% in the hopes that export-heavy industries are likely to benefit from the falling yen.
Currency traders prepared for another round of market intervention as the yen drifted to a new 38-year low of 161.63 against the U.S. dollar.
The Finance Ministry and the Bank of Japan have signaled that the rapid decline in the yen is likely to invite market intervention.
Despite the jawboning, the Bank of Japan has still lagged in adjusting its monetary policy and shrinking the wide interest rate differential with the U.S. bonds.
Moreover, the central bank continues to fund elevated levels of government bond purchases, which adds to the already high government deficit.
Investors also reassessed the economic growth outlook after Japan's economy shrank more than initially estimated.
Japan revised its first quarter real economic growth contraction to an annual pace of 2.9% from the preliminary estimate of 1.8% decline, the Cabinet Office said in an unscheduled release on Monday.
The GDP data revision reflected the weaker-than-previously estimated construction orders.
The Cabinet Office also cut growth in the December quarter to an increase of 0.1% from the previous estimate of 0.4%.
Investors overlooked inflation worries after crude oil prices jumped to a two-month high amid rising demand and supply cuts by the OPEC+.
Japan Stock Movers
The Nikkei 225 stock average jumped 1.1% to 40,074.69, and the Topix index advanced 1.2% to 2,856.62.
Retailers were in focus for the second week in a row after J. Front reported better-than-expected net income.
Moreover, Japan is expecting record tourist arrivals this summer as foreigners take advantage of weak currency and increased mobility of Chinese tourists after the end of COVID-19 restrictions.
J. Front rose 1.8% to ¥3,145.0, Takashimaya declined 2% to ¥2,948.0, Seven &I Holdings added 0.7% to ¥1,973.50, and Isetan Mitsukoshi gained 1.8% to ¥3,210.0.
Dai-ichi Life, Daiwa Securities, T&D Holdings, and MS&AD gained between 3% and 4%. amid a rebound in financial services stocks.
Dentsu Group declined 2.1% to ¥ 3,945.0, and Sumitomo Pharma dropped 2.2% to €2.14.
China's Property Sales Decline Slowed, June Auto Sales Turned Down
Li Chen
02 Jul, 2024
Hong Kong
Market indexes in Hong Kong rebounded after investors returned from a public holiday and reacted for the first time to the latest updates in manufacturing activities.
The Hang Seng index jumped more than 0.5%, but the indexes in mainland China continued to drift lower.
The Caixin manufacturing purchasing managers' index advanced to 51.8 in June from 51.7 in the previous month, S&P Global reported Monday.
The private survey, which tracked a wider set of small and medium enterprises with significant activities, contrasted with the government data, which showed contraction for the second month in a row.
The Hang Seng index has been under pressure after peaking on May 20 due to a weak policy response, a lack of progress in the revival of the property market, and a rising tide of capital flight.
Moreover, Chinese policymakers are struggling to hold the yuan as the Bank of Japan lets the yen drift to a new 38-year low and avoids expensive market intervention.
The weaker yen is putting additional pressure on the yuan as businesses keep foreign earnings overseas and more capital leaves China for the third year in a row.
China Stock Movers
The CSI 300 index decreased 0.03% to 3,476.93, and the Hang Seng index jumped 0.5% to 17,815.61.
Li Auto jumped 5.3% to HK$74.0 after the leading electric vehicle maker reported a rise in sales in June.
China's automobile sales contracted in June by 2.9% to 1.91 million units, the first monthly decline since January.
However, sales in the first-half increased 2.5% to 9.65 million units, according to the data released by the CPCA.
Chinese property developers edged higher after the decline in home sales eased in June.
Top 100 developers reported home sales declined 16.7% to 438.9 billion yuan, or $60.4 billion, but advanced 36% from May, according to data released by CRIC.
Property transactions improved the most in the top-tier cities of Beijing, Shanghai, Shenzhen, and Guangzhou.
The average price of a new home increased by 0.2% in 100 large cities, slightly weaker than the 0.2% increase in May.
China's new home sales at the top 100 real estate companies in the period between January and June plunged 41.6% from a year ago, the China Index Academy said in a report released on Monday.
India Movers: CSB Bank, DCX Systems, Eicher Motors, Hero Motocorp, NMDC, Patanjali Foods, TVS Motor, Tata Motors
Arun Goswami
02 Jul, 2024
Mumbai
Vehicle sales in June showed broad market weakness amid weak demand in rural markets for 2-wheelers and a lack of enthusiasm for passenger cars in urban markets.
The Sensex index decreased by 0.1% to 79,384.47, and the Nifty index fell by 0.1% to 24,109.90.
On the Mumbai stock exchange, 215 stocks traded at their 52-week highs, and 7 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds inched higher to 7.0%, and the Indian rupee weakened to ₹83.53 against the U.S. dollar.
Patanjali Foods jumped 0.9% to ₹1,713.95, and the company agreed to acquire Patanjali Ayurveda for 1,100 crore, which will be paid in five installments.
Hero Motocorp jumped 0.2% to ₹5,611.25, and the 2-wheeler maker said total sales in June jumped 15% to 5,03,000 units.
In June, domestic vehicle sales rose 16% to 4,91,000, and exports decreased to 12,032 from 14,236 units in the corresponding month a year ago.
Eicher Motors declined 0.7% to ₹4,603.0, and the vehicle maker said Enfield sales in June declined 5% to 73,141 units and exports plunged 27% to 7,024 units.
Tata Motors decreased 1.3% to ₹989.50, and the company said total domestic vehicle sales in June decreased 8% to 74,147 units.
TVS Motor Company advanced 0.5% to ₹2,365.85, and the vehicle maker said total 2-wheeler sales in June increased 6% to 322,000 units.
Domestic sales rose 8% to 256,000 units, and exports declined 3.9% to 76,074 units.
Mahindra & Mahindra decreased 0.1% to ₹2,873.0, after the passenger car market reported June sales rose 23% to 40,022 units.
NMDC declined 1.5% to ₹247.95, and the iron ore mining company said total production eased to 3.37 million tons from 3.48 million tons a year ago.
Total sales decreased to 3.73 million tons from 4.1 million tons a year ago.
The company lowered the price of lump iron ore by ₹500 to ₹5,950 per ton and fine ore by the same amount to ₹5,110 per ton.
CSB Bank advanced 3.5% to ₹388.65, and the company said total deposits increased 22.2% to 29,920 crore and total loans rose 17.8% to 25,099 crore.
DCX Systems soared 15.6% to ₹438.0, and the company won an order for 1,250 crore for electronic modules to be supplied over three years.
Europe Movers: Airbus, Anglo American, French Banks, Petrofac, Valneva
Inga Muller
01 Jul, 2024
Frankfurt
The French election results indicated far-right parties won a smaller than feared number of seats in the first round of the election, raising the prospect of legislative gridlock and holding the increase in government spending.
The DAX index increased by 0.3% to 18,289.86; the CAC-40 index gained by 1.5% to 7,588.25; and the FTSE 100 index rose by 0.3% to 8,189.08.
The yield on 10-year German bonds edged higher to 2.56%; French bonds inched higher to 3.26%; the UK gilts edged higher to 4.22%; and Italian bonds decreased to 4.06%.
French banks rebounded after the announcement of national election results, indicating that the far-right party fell short of an absolute majority in the first round of the national election.
BNP Paribas jumped 3.5% to €61.85, Credit Agricole gained 4.1% to €13.27, and Societe Generale advanced 5% to €23.03.
Airbus SE increased 2.2% to €131.08 after the European airplane maker entered into a bid agreement with Spirit AeroSystems to acquire a business unit supplying products and systems to the company.
Separately, Boeing agreed to acquire the majority of the assets owned by Spirit AeroSystems in an all-stock deal that valued the equity of the company at $4.7 billion, or $37.25 per share.
The total transaction is valued at $8.3 billion, including the total debt of the company.
Valneva soared 5.3% to €3.35 after the European Commission approved marketing of the company's chikungunya vaccine, IXCHIQ, for adults 18 years and older.
Petrofac Ltd. jumped 3.5% to 13.47 pence after the company extended its interest payment moratorium on its secured senior notes to July 25 from June 30.
Anglo American declined 2.1% to 2,450.0 pence after the company suspended its activities in a coal mine in Queensland, Australia, following an underground coal gas ignition incident.
Euro And European Markets Advance After Far Right Party Fell Short of Majority In French Election
Bridgette Randall
01 Jul, 2024
Frankfurt
European markets rebounded and the risk premium for French bonds receded after the far-right party failed to win a majority in the first round of the French parliamentary elections on Sunday.
The CAC-40 index soared 1.5% after Marie Le Pen's National Rally Party won 34% of the vote in the unexpected snap legislative assembly elections.
The National Rally Party won 34.1%, the left-wing New Popular Front Party won 28.1%, and the centrist Renaissance Party coalition controlled by President Emmanuel Macron received 20.8%, according to the preliminary results released by the Interior Ministry.
France is headed for the second round of elections on July 7.
A private survey indicated the eurozone's business activity contracted less than expected in June.
HCOB's final eurozone purchasing managers' index slipped to 45.8 in June, less than the initial estimate of 45.6, S&P Global reported on Monday.
Europe Indexes and Yields
The DAX index increased by 0.3% to 18,289.86; the CAC-40 index gained by 1.5% to 7,588.25; and the FTSE 100 index rose by 0.3% to 8,189.08.
The yield on 10-year German bonds edged higher to 2.56%; French bonds inched higher to 3.26%; the UK gilts edged higher to 4.22%; and Italian bonds decreased to 4.06%.
The euro edged lower to $1.07; the British pound inched lower to $1.266; and the U.S. dollar advanced to 90.12 Swiss cents.
Brent crude increased $0.37 to $85.37 a barrel, and the Dutch TTF natural gas fell by €0.27 to €34.23 per MWh.
Europe Stock Movers
French banks rebounded after the announcement of national election results, indicating that the far-right party fell short of an absolute majority in the first round of the national election.
BNP Paribas jumped 3.5% to €61.85, Credit Agricole gained 4.1% to €13.27, and Societe Generale advanced 5% to €23.03.
Airbus SE increased 2.2% to €131.08 after the European airplane maker entered into a bid agreement with Spirit AeroSystems to acquire a business unit supplying products and systems to the company.
Separately, Boeing agreed to acquire the majority of the assets owned by Spirit AeroSystems in an all-stock deal that valued the equity of the company at $4.7 billion, or $37.25 per share.
The total transaction is valued at $8.3 billion, including the total debt of the company.
Valneva soared 5.3% to €3.35 after the European Commission approved marketing of the company's chikungunya vaccine, IXCHIQ, for adults 18 years and older.
Petrofac Ltd. jumped 3.5% to 13.47 pence after the company extended its interest payment moratorium on its secured senior notes to July 25 from June 30.
Anglo American declined 2.1% to 2,450.0 pence after the company suspended its activities in a coal mine in Queensland, Australia, following an underground coal gas ignition incident.
Japan Indexes Inch Higher After Manufacturing Sentiment Improved
Akira Ito
01 Jul, 2024
Tokyo
Stock market indexes in Tokyo advanced in Monday's trading, the yen continued its slide, and the yield on Japanese government bonds stayed above 1%.
The Nikkei 225 and the Topix indexes advanced after confidence among large companies rose in the second quarter, indicating rising activity.
Market sentiment was positive in Monday's trading, and the Topix index jumped to a new intra-day record high.
However, foreign investors have been lowering their exposure to Japanese stocks amid a faltering pace of improvement in corporate governance, a mixed economic outlook, and the persistent yen weakness.
The Nikkei 225 index rose in the first half by 19%, sharply lower than the 27% increase at the end of the second quarter.
Most foreign investors are anticipating the Nikkei index to face significant headwinds in the third quarter as the Bank of Japan lets the yen sink to a new low in the year.
Tankan Survey Shows Improved Manufacturing Sentiment
The Bank of Japan's Tankan index of sentiment among large manufacturers in the second quarter increased to plus 13 from plus 11 in the previous quarter.
The sentiment among manufacturers of textiles increased to 22 from 11 in the first quarter, petroleum and coal products to 17 from 9, and chemical products to 10 from 2.
Meanwhile, sentiment among makers of iron and steel weakened to zero from 16 in the first quarter, food and beverages to 21 from 24, and production machinery to 11 from 17.
Japan Stock Movers
The Nikkei 225 Stock Average increased 0.1% to 39,631.06, and the Topix index rose 0.5% to 2,824.28.
Tech stocks faced selling pressure in Monday's trading, and Tokyo Electron, Screen Holdings, and Advantest declined around 0.5%.
Softbank gained 1.1% to ¥10,505.0.
Sumitomo Mitsui gained 2.5%, Mitsubishi UFJ jumped 1.1% to ¥1,749.0, and Mizuho Financial increased 1.5% to ¥3,408.0.
J. Front Retailing soared 17% to ¥1,924.50 after the retailer reported a surge in earnings following strong demand from foreign tourists.
Takashimaya advanced 11.4% to ¥3,007.0 in the hopes of higher earnings after the J. Front results.
China's Private and Official Manufacturing Activities Survey Show Diverging Results
Li Chen
01 Jul, 2024
Hong Kong
Asian markets lacked direction after China's official survey showed that the manufacturing sector contracted again and service sector growth slowed to a five-month low in June.
The CSI 300 index declined 0.1% to 3,459.01, and financial markets in Hong Kong were closed to mark the handover of the city to China.
China's manufacturing sector growth shrank for the second month in a row in June, the National Bureau of Statistics reported Monday.
The manufacturing purchasing managers' index was 49.5 in June, matching the rate in May.
The official gauge contracted for the fourth out of six months this year as policymakers struggle to revive business activity amid weak demand.
The private survey conducted by Caixin showed improving activity for the eighth month in a row, and the growth rate reached a three-year high.
The Caixin China General Manufacturing PMI increased to 51.8 in June from 51.7 in May, and new orders rose, but demand from foreign buyers slowed to a six-month low.
The private survey conducted by Caixin includes a larger sample of medium- and small-scale companies in the private sector active in exports.
The Japanese yen drifted to a new 34-year low in Tokyo's trading, raising fears of another round of competitive devaluation in Asia, which could force China, South Korea, and Taiwan to revalue their currencies.
The euro edged higher after the far-right and far-left parties made significant gains in the first round of the French parliamentary elections, solidifying their positions.
The National Rally Party won 34.1%, the left-wing New Popular Front Party won 28.1%, and the centrist Renaissance Party coalition controlled by President Emmanuel Macron received 20.8%, according to the preliminary results released by the Interior Ministry.
France is headed for the second round of elections on July 7.
China Stock Movers
Stocks declined in Shanghai trading, and banks, industrial companies, and electric vehicle makers were among the most active stocks.
BYD declined 1.3% to ¥246.81, ICBC gained 1.6% to ¥5.80, China Vanke jumped 5.6% to ¥7.32, and CATL decreased 2.6% to ¥175.38.
India Movers: Bank of Baroda, Bharti Airtel, Cochin Shipyard, GRP, Godrej Properties, UltraTech Cement, Vodafone Idea
Arun Goswami
01 Jul, 2024
Mumbai
Stocks in Mumbai advanced and extended the previous week's market surge despite the persistent valuation worries, aided by the return of foreign investors in June.
The Sensex index increased by 0.3% to 79,233.49, and the Nifty index rose by 0.2% to 24,067.30.
On the Mumbai stock exchange, 192 stocks traded at their 52-week highs, and 18 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds inched higher to 7.02%, and the Indian rupee strengthened to ₹83.39 against the U.S. dollar.
Vodafone Idea decreased 3.3% to ₹17.90 to ₹17.90 and Bharti Airtel declined 1.8% to ₹1,450.0 after the two leading telecom companies announced increases in monthly tariff plans, following the hikes by Reliance Jio.
Bharti Airtel announced its plans to raise subscription rates by as much as 25%.
Godrej Properties jumped 5.8% to ₹3,290.0, and the residential property developer announced the purchase of two development lots in Pune and Bengaluru.
The company plans to develop the 11-acre leasehold in Pune for residential and commercial projects and the 7-acre land in Bengaluru for residential projects.
Bank of Baroda declined 0.05% to ₹275.25, and the financial service company said it plans to appeal a tax demand for 1,067.82 crore for the financial year 2018.
Orchid Pharma increased 4.7% to ₹1,187.0 and Cipla added 0.2% to ₹1,483.50 after the two companies announced a partnership to market pharmaceuticals to treat urinary tract infections and pneumonia.
GRP Ltd. soared 18.5% to ₹15,250.0, and the company's board announced a 3-to-1 bonus share.
Cochin Shipyard advanced 2.2% to ₹2,282.65, and the company has signed a ₹1,100 crore agreement with the Norway-based Wilson ASA for the design and construction of eight 6,300 TDW Dry Cargo Vessels.
Davangere Sugar increased 2% to ₹8.57, and the company said it plans to begin ethanol production in October using damaged corn crops sourced from various regions of the country.
UltraTech Cement gained 0.3% to ₹11,705.30, and the Adani Group-controlled company has launched an additional 3.35 mtpa clinker production and 1.8 mtpa grinding capacity at its unit in Andhra Pradesh.
S&P 500 and Nasdaq Extend First Half Returns as Artificial Intelligence-Linked Stocks Dominate
Barry Adams
28 Jun, 2024
New York City
Stock market indexes on Wall Street advanced as investors reviewed the latest update on inflation and market statistics for the month, week, and first half.
The S&P500 index and the Nasdaq Composite extended weekly gains after the alternative measure of inflation slowed in May as expected.
The personal consumption expenditures price index in May slowed to an annual rate of 2.6% from 2.7% in the previous month, the Commerce Department reported on Friday.
On a monthly basis, the overall PCE price index was unchanged.
The core PCE index, which excludes food and energy prices, also increased 2.6% from a year ago and 0.1% from the last month.
Investors have been eager to parse inflation data as they try to determine when the Federal Reserve is likely to begin lowering interest rates.
On the last trading day of June, investors are reviewing the market performance.
This week, the S&P 500 index gained 0.6% and the Nasdaq advanced 1%.
In the second quarter, the Nasdaq Composite added 9% and the S&P 500 index advanced 4%.
In the first half, investors rushed to add artificial intelligence stocks, driving the Nasdaq up 19% and the broader S&P 500 index up 15%.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.7% to 5,521.90, and the Nasdaq Composite rose 0.9% to 18,016.88.
The yield on 2-year Treasury notes edged lower to 4.68%, 10-year Treasury notes decreased to 4.27%, and 30-year Treasury bonds edged higher to 4.42%.
WTI crude oil decreased $0.03 to $81.70 a barrel, and natural gas prices fell 2 cents to $2.66 a thermal unit.
Gold decreased by $1.15 to $2,328.63 an ounce, and silver rose 32 cents to $29.32.
The dollar index, which weighs the U.S. currency against a basket of foreign currencies, edged lower to 105.95.
U.S. Stock Movers
Nike plunged 18.2% to $77.10 after the athletic shoe maker reported weaker-than-expected revenue in the latest quarter.
The retailer also estimated revenue in the current quarter is likely to decline by 10%, and the company estimated fiscal 2025 revenue to fall in the mid-single digits.
Infinera soared 17.3% to $6.17, and the optical networking company agreed to be acquired by Nokia Corp. for $2.3 billion.
Europe Movers: Delivery Hero, Deutsche Beteiligungs, JD Sports, Nokia, Puma
Inga Muller
28 Jun, 2024
Frankfurt
European markets lost ground in June after the European Union elections set the stage for a shift in power balance in several member nations, rattling financial markets and the future outlook for the euro.
The DAX index increased by 0.4% to 18,284.50; the CAC-40 index declined by 0.5% to 7,490.44; and the FTSE 100 index rose by 0.3% to 8,205.38.
The yield on 10-year German bonds edged higher to 2.46%; French bonds inched higher to 3.25%; the UK gilts edged lower to 4.15%; and Italian bonds increased to 4.08%.
Nokia increased 0.2% to €3.51 after the telecom equipment maker agreed to acquire Infinera for $2.3 billion to bolster its optical networking business.
Delivery Hero declined 2.2% to €22.25 after the food-delivery company appointed Marie-Anne Popp as the interim chief financial officer after current CFO Emmanuel Thomassin resigned.
Deutsche Beteiligungs AG decreased 7.5% to €25.05 after the German private equity fund manager said it plans to raise €100 million through the sale of convertible bonds maturing in 2030.
JD Sports Fashion declined 5.2% to 119.75 pence, and Puma SE fell 4.2% to €42.12 after Nike said annual sales are likely to decline in the current year.
European Markets Struggled In June Amid Growing Political Uncertainties
Bridgette Randall
28 Jun, 2024
Frankfurt
European markets were mixed in Friday's trading as investors reviewed the slew of economic updates in the region.
Benchmark indexes in Paris edged lower, but the indexes in London and Frankfurt advanced.
For the week and the month, all three leading indexes are down.
For the month, the CAC-40 index dropped 7.3%, the DAX index fell 2.4%, and the FTSE 100 index edged down 0.3%.
Preliminary polls suggest that the far-right parties are likely to gain a substantial number of seats in the French national election in the first round of voting on June 30.
France's consumer price inflation slowed to 2.1% in June from 2.3% in May, the statistical office INSEE reported on Friday.
The annual pace of inflation dropped to the lowest level since August 2021, after food and energy prices advanced at a slower pace.
Spain's consumer price inflation slowed to 3.4% in June, according to the preliminary estimate released by the statistical agency INE on Friday.
The annual pace of inflation eased from a one-year high of 3.6% in May, and core inflation, which excludes volatile food and energy prices, held steady at 3.0%.
Italy's consumer price inflation held steady at 0.8%, and core inflation was also steady at 2.0%.
In addition, the number of people looking for jobs rose more than expected, the Federal Labour Office reported Friday.
The number of jobless people increased from 19,000 to 2.78 million in June, marking the 18th consecutive month of rising unemployment.
The seasonally adjusted jobless rate increased to 6%, the highest since May 2021.
Europe Indexes and Yields
The DAX index increased by 0.4% to 18,284.50; the CAC-40 index declined by 0.5% to 7,490.44; and the FTSE 100 index rose by 0.3% to 8,205.38.
The yield on 10-year German bonds edged higher to 2.46%; French bonds inched higher to 3.25%; the UK gilts edged lower to 4.15%; and Italian bonds increased to 4.08%.
The euro edged lower to $1.07; the British pound inched lower to $1.264; and the U.S. dollar advanced to 89.98 Swiss cents.
Brent crude increased $0.54 to $85.80 a barrel, and the Dutch TTF natural gas fell by €0.03 to €34.24 per MWh.
Europe Stock Movers
Nokia increased 0.2% to €3.51 after the telecom equipment maker agreed to acquire Infinera for $2.3 billion to bolster its optical networking business.
Delivery Hero declined 2.2% to €22.25 after the food-delivery company appointed Marie-Anne Popp as the interim chief financial officer after current CFO Emmanuel Thomassin resigned.
Deutsche Beteiligungs AG decreased 7.5% to €25.05 after the German private equity fund manager said it plans to raise €100 million through the sale of convertible bonds maturing in 2030.
JD Sports Fashion declined 5.2% to 119.75 pence, and Puma SE fell 4.2% to €42.12 after Nike said annual sales are likely to decline in the current year.
China Indexes Deepen Weekly and Monthly Losses and Trim 2024 Gains
Li Chen
28 Jun, 2024
Hong Kong
Stocks in Shanghai and Hong Kong advanced in Friday's trading, but benchmark indexes are set to close down for the month.
The CSI 300 index and the Hang Seng index gained a fraction in lackluster trading as investors remained on the defensive ahead of the Communist Party's third plenum next week.
The Hang Seng index is set to close down 1% in June, the index's first monthly loss after January.
Travel sector-related stocks got a boost after China's commerce ministry lifted its upper limit of duty-free goods to 12,000 yuan from 5,000 yuan in the hope of boosting consumer spending in the city.
Stocks in Hong Kong have been on the defensive for several months after China's policy response to revive the property market underwhelmed investors, and the recent lackluster economic data contributed to market jitters.
China's profit growth for industrial companies decelerated in May, but foreign investors continue to shrink amid rising geopolitical tensions and falling home prices.
China Stock Movers
The CSI 300 index increased 0.2% to 3,461.66, and the Hang Seng index added 0.02% to 17,721.23.
In stock trading, the new listings were in focus, and two of the three new listings soared on the first day of their trading.
Dida, the ride-hailing service provider, dropped nearly 10% from its initial public offering price of HK$6.0 per share and raised $30 million.
Laopu Gold soared more than 60% to HK$65 after the jewelry retailer priced its offering at HK$66.10 per share.
Tianju Dihe Technology jumped 33% to HK $110.45 after the application interface software developer priced its offering at HK$83.03 per share and raised HK $401.5 million.
India Movers: Ambuja Cements, BHEL, HCL Technologies, Polyaab, Raymond, Reliance Industries
Arun Goswami
28 Jun, 2024
Mumbai
The Nifty and the Sensex indexes are set to extend weekly gains to more than 2.6% and trade near record highs amid economic optimism.
The Sensex index increased by 0.1% to 79,167.92, and the Nifty index fell by 0.1% to 24,038.85.
On the Mumbai stock exchange, 235 stocks traded at their 52-week highs, and 19 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds held steady at 7.0%, and the Indian rupee weakened to ₹83.43 against the U.S. dollar.
Polycab India declined 4.5% to ₹6,688.70 on reports that promoters are likely to sell up to a 2.1% stake in the company through block deals.
HCL Technologies declined 0.7% to ₹1,444.50 on reports that the company promoters sold 1.24 crore shares for ₹1,788 crores.
Raymond Ltd. was nearly unchanged at ₹2,964.80, and the company's board reappointed Gautam Singhania as managing director.
BHEL soared 2.1% to ₹303.15 after the engineering company won a ₹13,000 crore order to set up a 1,600 MW power plant in Jharkhand.
Reliance Industries jumped 2% to ₹3,123.0 after the company's wireless telecom division, Jio, raised its monthly service plan price to as much as 25%.
Ambuja Cements jumped 1% to ₹665.40 after the company's board approved the merger of Adani Cementation with the company.
S&P 500 Index Holds Steady Ahead of Key Inflation Update, Global Markets Turn Lower
Alexander Garcia
27 Jun, 2024
Miami
Benchmark indexes gyrated around the flatline, and semiconductor stocks took a breather amid valuation worries.
Investors also reviewed the latest batch of mixed-quarterly results and economic updates.
The S&P 500 index and the Nasdaq Composite flatlined after Micron Technology reported better-than-expected quarterly results, but the current quarter outlook fell short of the market's expectations.
Levi Strauss reported weaker-than-expected quarterly results, despite the strong worldwide demand for denim apparel.
U.S. Initial Jobless Claims Eased Last Week
On the economic front, initial weekly jobless claims at the end of the previous week fell by 6,000 to 239,000. The weekly claims declined for the second consecutive week after reaching a 10-month high of 243,000.
Meanwhile, continuing claims rose to 1,84 million, the highest level since the end of 2001.
First Quarter GDP Growth Revised Slightly Higher
U.S. GDP growth was revised higher to 1.4% in the first quarter, faster than the 1.3% annual pace estimated in the second estimate, the U.S. Bureau of Economic Analysis reported Thursday.
The economic growth in the first quarter was the slowest since the economic contraction in the first half of 2022.
The personal consumption expenditure price index, an alternative measure of inflation preferred by policymakers, increased 3.4% for all items and rose 3.7% for core items.
Both measures were revised higher by 0.1 percentage points from the second estimate.
U.S. Durable Goods Orders for the Fourth Consecutive Month In May
New orders for durable goods unexpectedly rose 0.1% in May, but slower than the downwardly revised 0.2% increase in April, the U.S. Census Bureau reported Thursday.
Durable goods orders rose for the fourth month in a row, but at the slowest pace, due to solid demand for computer products and transportation equipment.
Non-defense new orders declined 0.2%, and non-defense orders, which exclude volatile aircraft orders, known as capital goods orders, declined 0.6% in May after rising 0.3% in the previous month.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.01% to 5,481.98, and the Nasdaq Composite rose 0.2% to 17,846.13.
The yield on 2-year Treasury notes edged lower to 4.76%, 10-year Treasury notes increased to 4.31%, and 30-year Treasury bonds edged higher to 4.45%.
WTI crude oil increased $0.49 to $81.39 a barrel, and natural gas prices fell 2 cents to $2.79 a thermal unit.
Gold decreased by $24.04 to $2,322.58 an ounce, and silver rose 46 cents to $29.17.
The dollar index, which weighs the U.S. currency against a basket of foreign currencies, edged lower to 105.75.
U.S. Stock Movers
Micron Technology declined 4.6% to $135.74, and the semiconductor company reported better-than-expected quarterly results.
The company also issued a revenue outlook for the current quarter of $7.6 billion, which met some investors' expectations.
Levi Strauss dropped 19% to $19.49 after the jeans maker reported weaker-than-expected quarterly results despite the current strong demand for denim products.
AeroVironment declined 6.5% to $180.75, despite the maker of unmanned vehicles posting better-than-expected quarterly results.
Revenue in the fiscal fourth quarter increased to $197 million, and adjusted earnings per share were 43 cents.
European Market Indexes Swing Around Flatline
Market indexes across Europe were little changed as investors looked ahead to the first round of elections this weekend in France.
Benchmark indexes in Paris, London, and Frankfurt lacked direction, and bond yields edged higher amid election uncertainties in France and the UK.
Investors are bracing for shifting economic priorities that could further delay France meeting its budget deficit target if far-right parties win a larger share of parliamentary seats.
In the UK, the Conservative Party is also likely to lose its grip on power as voters prefer to hand over the reign of power to the Labour Party, which could further increase the nation's pile of debt.
The Riksbank held its key lending rate at 3.75%, said inflation is nearing the 2% target rate, and added that if inflation expectations do not change, rates may be cut two to three times in the second half of the year.
On the economic front, Spain's retail sales growth slowed to 0.2% in May from 0.3% in April, the National Statistics Institute reported Thursday.
Europe Indexes and Yields
The DAX index increased by 0.3% to 18,205.39; the CAC-40 index fell by 1.0% to 7,530.72; and the FTSE 100 index fell by 0.6% to 8,179.68.
The yield on 10-year German bonds edged higher to 2.46%; French bonds inched higher to 3.19%; the UK gilts edged higher to 4.16%; and Italian bonds increased to 4.03%.
The euro edged lower to $1.07; the British pound inched lower to $1.265; and the U.S. dollar advanced to 89.70 Swiss cents.
Brent crude increased $0.40 to $85.65 a barrel, and the Dutch TTF natural gas rose by €0.23 to €34.23 per MWh.
Europe Stock Movers
H & M Hennes & Mauritz AB dropped 12.5% to SEK70.15 after the Swedish retailer reported a smaller-than-expected increase in second quarter net income.
Nordex SE declined 1.4% to €11.84, and the German wind turbine maker said it plans to restart its production in Iowa, United States.
China-linked stocks turned lower after Chinese industrial profit growth in May slowed to 0.7%, a sharp slowdown from the annual pace of 4% in the previous month.
Mining companies in the UK and French luxury stocks turned lower after the release of the Chinese data.
Anglo American, Antofagasta, and Glencore declined by around 1%.
Hermes International fell 1% to €2,188; LVMH declined 1.1% to €719.20; and Kering SA rose 3.8% to €338.75.
Watches of Switzerland Group PLC rose 9.3% to 436.80 pence after the UK-based retailer estimated stable market conditions after the sharp decline in business following the COVID-19 pandemic slump.
The Yen's Weakness Raises Intervention Risk, Japan's Retail Sales Growth Accelerated In May
Stocks in Tokyo struggled as investors remained focused on the persistent weakness in the yen.
The Nikkei 225 index fell 1%, and the broader Topix index dropped more than 0.4% as investors struggled to understand the long-term impact of the weaker yen.
The Bank of Japan is showing little urgency in supporting the faltering yen after the currency dropped to the lowest level since 1986.
Finance Minister Shunichi Suzuki issued a strongly worded warning against the sharp moves in the currency after the yen dropped to 160.87 against the U.S. dollar.
The yen has fallen 2% in June and declined 14% since the start of 2024 as the Bank of Japan struggles to retain its bond buying program and hold interest rates at 0.10%.
Japan's retail sales accelerated in May to a 3% annual pace from the revised 2.4% in April, the Ministry of Economy, Trade, and Industry reported Thursday.
On a monthly basis, seasonally adjusted retail sales rose 1.7% after rising 0.8% in the previous month.
Japan Stock Movers
The Nikkei 225 stock average declined 1% to 39,284.10, and the Topix index dropped 0.4% to 2,792.77.
Tech stocks were under pressure following the sharp moves in the yen.
Tokyo Electron, Advantest, and Screen Holdings declined between 0.5% and 3%.
Daiichi Sankyo, Japan Exchange Group, Sharp, and Daikin Industries declined 3%.
Banks were also under pressure but rebounded to close higher.
Mizuho Financial jumped 0.5%, Sumitomo Mitsui edged up 0.1%, and Mitsubishi UFJ added 0.8%.
Hang Seng Index Drops 2%, Sharp Decline In China Industrial profit Growth
Investors turned cautious and sold stocks in Hong Kong and Shanghai after the latest Chinese economic data underwhelmed.
The Hang Seng dropped 2% and the CSI 300 index declined 0.3% after the sharp slowdown in industrial profit added to the ongoing property market woes.
China's profit growth among industrial companies slowed to 0.7%, decelerating from a 4% increase in the previous month, the National Statistics Bureau reported Thursday.
The data confirmed the uneven and fragile economic recovery as policymakers struggle to revive consumer confidence and economic growth.
The Beijing area government relaxed rules to support the property market, which drew tame reactions from investors.
The local government lowered down payment and mortgage rates for first-time home buyers, hoping that relaxed measures would support a higher level of activity. However, measures did not go far enough and were deemed late following the similar announcements from other Tier 1 cities.
Market sentiment was also on the backfoot after the Japanese yen dropped to a fresh new low, crossing the 160 mark against the U.S. dollar.
The steady devaluation of the yen put additional pressure on the Chinese yuan and supported capital outflows.
Property sector stocks were under renewed pressure as several companies neared the lower market cap requirement limit to participate in the Stock Connect program.
The cross-border investment program requires a minimum market cap of HK$4 billion, or $512 million, to attract capital from mainland investors.
The latest stock price weakness is likely to add to the woes of the property companies as they struggle with liquidity stress and financial restructuring demand from creditors.
China Stock Movers
The CSI 300 index decreased 0.3% to 3,465.98, and the Hang Seng Index dropped 2% to 17,721.01.
Property developers were in focus as eight companies are teetering near the threshold requirement to be included in the Stock Connect program.
Shimao Group Holdings declined a fraction to HK $0.76, and Soho China decreased 0.2% to HK $0.68.
Country Garden Holdings, one of the leading residential property developers, is scheduled for a liquidation hearing next month in Hong Kong.
New World Development declined 0.4% to HK $7.20, and the Hong Kong-based property developer sold a stake in a project to its parent company for 1.44 billion yuan to meet its debt obligations.
U.S. Movers: AeroVironment, Levi Strauss, Micron Technology, Walgreens
Scott Peters
27 Jun, 2024
New York City
Micron Technology declined 4.6% to $135.74, and the semiconductor company reported better-than-expected quarterly results.
The company also issued a revenue outlook for the current quarter of $7.6 billion, which met some investors' expectations.
Levi Strauss dropped 19% to $19.49 after the jeans maker reported weaker-than-expected quarterly results despite the current strong demand for denim products.
AeroVironment declined 6.5% to $180.75, despite the maker of unmanned vehicles posting better-than-expected quarterly results.
Revenue in the fiscal fourth quarter increased to $197 million, and adjusted earnings per share were 43 cents.
Walgreens Boots Alliance plunged 24.6% to $11.76 after the drug store chain operator said it plans to close a significant number of underperforming stores.
CEO Tim Wentworth said about 25% of its 8,600 stores in the United States are underperforming, and a "significant" number of those 2,100 stores are likely to be shuttered.
Revenue in the fiscal third quarter increased 3% to $36.35 billion and earned $344 million compared to $118 million, and diluted earnings per share rose to 40 cents from 14 cents a year ago.
The drug retailer also lowered its adjusted earnings per share outlook for the fiscal fourth quarter ending in August to $2.80 from $2.95, which was cut from the estimate between $3.20 and $3.35 in March.