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S&P 500 and Nasdaq Struggled to Advance After Mixed Quarterly Earnings and Economic Updates

Barry Adams
27 Jun, 2024
New York City

Market indexes on Wall Street in early trading struggled to find direction after 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.

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.

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.

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.

Europe Movers: French Luxury Stocks, H&M, Nordex, Resource Stocks, Watches of Switzerland Group

Inga Muller
27 Jun, 2024
Hong Kong

European markets traded in a narrow range, bond yields advanced in the currency union, and the euro and the pound nudged lower ahead of the parliamentary elections in France and the U.K.

Sweden held its policy rate steady but held out for at least two rate cuts in the second half of the year.

The DAX index increased by 0.1% to 18,172.23; the CAC-40 index fell by 0.5% to 7,573.19; and the FTSE 100 index rose by 0.3% to 8,202.72.

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%.

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.

European Market Indexes Swing Around Flatline Ahead of Elections In the UK and France

Bridgette Randall
27 Jun, 2024
Frankfurt

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 0.1% to 18,172.23; the CAC-40 index fell by 0.5% to 7,573.19; and the FTSE 100 index rose by 0.3% to 8,202.72.

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 $0.33 to $85.59 a barrel, and the Dutch TTF natural gas rose by €0.35 to €34.34 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

Akira Ito
27 Jun, 2024
Tokyo

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

Li Chen
27 Jun, 2024
Hong Kong

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.

India Movers: JSW Energy, KEC International, RVNL, Ramky Infrastructure

Arun Goswami
27 Jun, 2024
Mumbai

Market indexes on Dalal Street hovered near record highs amid a positive outlook for the current quarter results and expectations of additional measures to accelerate infrastructure building.

The Sensex index decreased by 0.2% to 78,505.27, and the Nifty index fell by 0.2% to 23,818.0.

On the Mumbai stock exchange, 145 stocks traded at their 52-week highs, and 14 stocks traded at their 52-week lows.

The yield on the 10-year Indian government bonds held steady at 6.99%, and the Indian rupee weakened to ₹83.51 against the U.S. dollar.

JSW Energy rose 3.2% to ₹734.85, and the company's renewable power subsidiary signed a power purchase agreement for 1,325 MW for wind and solar power.

Ramky Infrastructure jumped 5.6% to ₹594.95, and the company won a ₹131 crore project from PowerGrid Energy Services in Ladakh.

Rail Vikas Nigam jumped 1% to ₹413.25, and the company's joint venture received an order worth ₹156 crore to implement an automated signaling system on the Ernakulam JN- Vallattol Nagar section from Southern Railway.

KEC International jumped 6.2% to ₹916.70, and the company said it won new orders worth ₹1.025 crore in its transmission and distribution segment.

New Home Sales Level Drops to a 6-Month Low In May

Brian Turner
26 Jun, 2024
Washington, D.C.

Single-family new home sales in May declined 16.5% from a year ago to an annual pace of 619,000, the U.S. Census Bureau reported Wednesday.

The home sale rate declined to the lowest pace in six months after high home prices and mortgage rates negatively affected home affordability.

The median price of a house sold in May eased to $417,000 from $421,200, and the average home price rose to $520,000 from $495,800 a year ago, respectively.

Meanwhile, the number of homes available for sale at the end of May was 481,000, representing about 9.3 months of supply at the current sales rate.

The number of homes available for sale at the end of the month has been steadily rising, from 6.9 in May 2023 to 9.3 in May 2024.

On the economic front, investors are looking ahead to the release of consumer spending, income, and PCE price inflation indicator updates for May later in the week.

Investors are looking forward to the release of international trade balances, durable goods orders, and the third and final estimate for first quarter GDP growth.

U.S. and Global Markets Lack Momentum and the Yen Sinks Further In Search of a Bottom

Alexander Garcia
26 Jun, 2024
Miami

Benchmark indexes traded around the flatline, and tech stocks gave up early gains by late afternoon.

The S&P 500 index and the Nasdaq Composite struggled to rise above the flatline as investors stayed cautious ahead of the release of inflation data later in the week.

Broader averages have been overshadowed by the movement in Nvidia stock because the market cap-weighted S&P 500 index has been dominated by the chipmaker's $3.1 trillion valuation.

Single-family new home sales in May declined 16.5% from a year ago to an annual pace of 619,000, the U.S. Census Bureau reported Wednesday.

The home sale rate declined to the lowest pace in six months after high home prices and mortgage rates negatively affected home affordability.

On the economic front, investors are looking ahead to the release of consumer spending, income, and PCE price inflation indicator updates for May.

Investors in the U.S. are looking forward to the release of international trade balances, durable goods orders, and the third and final estimate for first quarter GDP growth.

U.S. Indexes and Treasury Yields

The S&P 500 index increased 0.01% to 5,469.89, and the Nasdaq Composite rose 0.3% to 17,760.45.

The yield on 2-year Treasury notes edged lower to 4.73%, 10-year Treasury notes increased to 4.29%, and 30-year Treasury bonds edged higher to 4.42%.

WTI crude oil decreased $0.04 to $80.78 a barrel, and natural gas prices fell 2 cents to $2.79 a thermal unit.

Gold decreased by $17.47 to $2,302.27 an ounce, and silver declined 9 cents to $28.77.

The dollar index, which weighs the U.S. currency against a basket of foreign currencies, edged lower to 106.05.

U.S. Stock Movers

FedEx rose 12.9% to $289.63, and the parcel delivery company reported better-than-expected revenue and adjusted earnings in its latest quarter.

Rivian soared 29% to $15.38 after the electric vehicle struck a deal with the German automaker Volkswagen AG.

Volkswagen plans to invest $1 billion in a joint venture with Rivian and increase its investment to as much as $5 billion over the next several years.

Whirlpool Corporation rose 12.8% to $98.33 on a Reuters report that the German company Bosch is considering making an offer for the home appliance maker.

Nvidia Corp. jumped 1.3% to $127.15, and the artificial intelligence chip maker extended its previous session gain of 7%.

Nvidia's market value briefly surpassed Microsoft's market cap of $3.1 trillion before edging down in last week's trading.

European Bond Yields In Focus Ahead of Elections in France and the UK

European markets jumped higher amid election jitters, rate uncertainty, and a weak economic outlook.

Benchmark indexes in Paris, London, and Frankfurt advanced despite the growing anxieties about the upcoming elections over the next week.

Investors are bracing for a shift in the balance of power in France, as the party controlled by President Emmanuel Macron is likely to suffer significant losses.

The shift in power in the legislative assembly is also likely to slow down economic reforms and delay France's goal of lowering its budget deficit below 5% of GDP by 2027.

France's national debt is already hovering above 110% of GDP, one of the highest deficits in the world, and above the European Union average of 88.6%.

In the UK, the Conservative Party is likely to suffer severe losses in the upcoming parliamentary election scheduled for July 4.

The next government in the UK is also facing a severe jump in national debt after Prime Minister Rishi Sunak's government ramped up spending during the pandemic era, lifting the debt to 101.3% of GDP.

Europe Indexes and Yields

The DAX index increased by 0.3% to 18,155.24; the CAC-40 index fell by 0.7% to 7,609.15; and the FTSE 100 index fell by 0.3% to 8,225.33.

The yield on 10-year German bonds edged higher to 2.43%. French bonds inched lower to 3.13%; the UK gilts edged higher to 4.10%; and Italian bonds increased to 3.92%.

The euro edged lower to $1.088; the British pound inched higher to $1.266; and the U.S. dollar advanced to 89.80 Swiss cents.

Brent crude decreased $0.50 to $85.53 a barrel, and the Dutch TTF natural gas rose by €0.49 to €34.04 per MWh.

Europe Stock Movers

Gelion PLC surged 51% to 28.0 pence after the Anglo-Australian battery company struck a joint development agreement with Glencore International AG.

Volkswagen AG declined 2.7% to €103.65, and the German vehicle maker announced a $5 billion investment in a joint venture with the struggling electric vehicle maker Rivian.

Checkit plc declined 3.3% to 22.25 pence after the automated monitoring system developer decided not to make an offer to acquire Crimson Tide.

Deliveroo jumped 2.7% to 130.90 pence on reports suggesting that the U.S.-based delivery company DoorDash may be interested in acquiring the company.

Energy explorers turned lower following the more than expected increase in U.S. inventories.

Shell PLC decreased 0.4% to 2,796.0 pence, and BP plc declined 0.4% to 473.65 pence.

Weak Yen Raises Intervention Risk

Japan's two popular indexes traded higher for the second consecutive day following the rebound in tech stocks in New York.

The Nikkei 225 and the Topix indexes closed higher after the rally in tech stocks overshadowed weakness in other sectors.

Nvidia rebounded more than 6% in overnight trading in New York, supporting the advance in tech stocks in Tokyo.

The yen's weakness also contributed to the market advance, as weak currency provides an additional boost to market indexes.

The yen traded at 159.32 against the dollar, approaching a 34-year low and close to the mark that generally prompts intervention from the central bank.

Currency traders are bracing for the yen to drop to as low as 170 over the next few months, as the Bank of Japan show little urgency in lifting rates.

On the economic front, investors are looking ahead to the release of industrial output, retail sales, and the jobless rate later in the week.

Japan Stock Movers

The Nikkei 225 stock average rose 1.4% to 39,719.05, and the Topix index advanced 0.9% to 2,803.19.

Tech stocks were among the leading gainers in Tokyo following the rebound in artificial intelligence-linked stocks in New York.

Screen Holdings, SoftBank, and Tokyo Electron gained between 3% and 5%.

Advantest jumped 7.2% to ¥6,222.0, and the company said it is planning to generate annual revenue between 560 billion and 700 billion yen over the next two financial years.

Toyota Motor and Nissan Motor declined more than 1%, but Honda Motor gained 1.9%.

The weaker yen supported another advance in exporting companies, and Sony, Panasonic, Mitsubishi Electric, and Canon gained between 0.5% and 1.3%.

The yield on a 10-year Japanese government bond traded at 1.02% amid uncertain interest rates and the Bank of Japan's reluctance to raise rates in the near term.

Mitsubishi UFJ, Mizuho Financial Group, and Sumitomo Mitsui advanced between 0.3% and 1.2%.

Rising Trade Tensions with the West Weigh On China Indexes

Stocks in Shanghai and Hong Kong declined amid rising tensions between the second-largest economy and the European Union.

The CSI 300 and the Hang Seng index edged lower to a four-month low as investors remained cautious ahead of the Communist Party's third plenum next week.

Foreign investors have been reducing their stakes in China-based companies after policymakers and central bankers failed to provide concrete and far-reaching measures to revive consumer and investor sentiment.

Chinese stocks are expected to trade in a tight range amid a lack of catalysts, an uneven economic recovery, rising trade tensions with the West, and a weak earnings growth outlook.

China Stock Movers

The CSI 300 index decreased 0.2% to 3,449.20, and the Hang Seng index eased 0.01% to 18,069.75.

Game developers traded higher after China permitted the release of 104 new online games in June, higher than fewer than 100 games in the previous two months.

NetEase soared 5.1% to HK $149.0, but Tencent Holdings decreased 0.6% to HK $379.80.

Property developers were in focus after a court in Hong Kong granted Shimao Group a four-week period to secure a restructuring agreement with its creditors.

Shimao Group gained 0.8% to HK$0.78.

Electric vehicle makers were in focus after Canada announced plans to start a public hearing to impose import tariffs on passenger cars made in China. The move is likely to hit BYD the hardest.

BYD Group decreased 1.5% to HK $238.40.

Among the new listings, two companies made a strong debut in Shanghai.

Aidite Technology, the maker of dental material, soared more than 90% to 85.95 yuan in Shenzhen on the first day of its trading, and Yonz Technology, the maker of photovoltaic products, jumped 55% to 35.80 yuan in Shanghai.

U.S. Movers: FedEx, Nvidia, Rivian, Volkswagen, Whirlpool

Scott Peters
26 Jun, 2024
New York City

FedEx rose 12.9% to $289.63, and the parcel delivery company reported better-than-expected revenue and adjusted earnings in its latest quarter.

Rivian soared 29% to $15.38 after the electric vehicle struck a deal with the German automaker Volkswagen AG.

Volkswagen plans to invest $1 billion in a joint venture with Rivian and increase its investment to as much as $5 billion over the next several years.

Whirlpool Corporation rose 12.8% to $98.33 on a Reuters report that the German company Bosch is considering making an offer for the home appliance maker.

Nvidia Corp. jumped 1.3% to $127.15, and the artificial intelligence chip maker extended its previous session gain of 7%.

Nvidia's market value briefly surpassed Microsoft's market cap of $3.1 trillion before edging down in last week's trading.

U.S. Major Averages Lacked Direction On Wall Street Ahead of Inflation Update

Barry Adams
26 Jun, 2024
New York City

Benchmark indexes in early trading lacked direction, and tech stocks extended gains for the second day in a row.

The S&P 500 index edged lower, but the Nasdaq Composite advanced after Nvidia extended the previous session's gain of 7%.

Broader averages have been overshadowed by the movement in Nvidia stock because the market cap-weighted S&P 500 index has been dominated by the chipmaker's $3.1 trillion valuation.

Single-family new home sales in May declined 16.5% from a year ago to an annual pace of 619,000, the U.S. Census Bureau reported Wednesday.

The home sale rate declined to the lowest pace in six months after high home prices and mortgage rates negatively affected home affordability.

On the economic front, investors are looking ahead to the release of consumer spending, income, and PCE price inflation indicator updates for May.

Investors in the U.S. are looking forward to the release of international trade balances, durable goods orders, and the third and final estimate for first quarter GDP growth.

U.S. Indexes and Treasury Yields

The S&P 500 index decreased 0.03% to 5,466.33, and the Nasdaq Composite rose 0.5% to 17,775.40.

The yield on 2-year Treasury notes edged lower to 4.73%, 10-year Treasury notes increased to 4.29%, and 30-year Treasury bonds edged higher to 4.42%.

WTI crude oil decreased $0.04 to $80.78 a barrel, and natural gas prices fell 2 cents to $2.79 a thermal unit.

Gold decreased by $17.47 to $2,302.27 an ounce, and silver declined 9 cents to $28.77.

The dollar index, which weighs the U.S. currency against a basket of foreign currencies, edged lower to 106.05.

U.S. Stock Movers

FedEx rose 12.9% to $289.63, and the parcel delivery company reported better-than-expected revenue and adjusted earnings in its latest quarter.

Rivian soared 29% to $15.38 after the electric vehicle struck a deal with the German automaker Volkswagen AG.

Volkswagen plans to invest $1 billion in a joint venture with Rivian and increase its investment to as much as $5 billion over the next several years.

Whirlpool Corporation rose 12.8% to $98.33 on a Reuters report that the German company Bosch is considering making an offer for the home appliance maker.

Nvidia Corp. jumped 1.3% to $127.15, and the artificial intelligence chip maker extended its previous session gain of 7%.

Nvidia's market value briefly surpassed Microsoft's market cap of $3.1 trillion before edging down in last week's trading.

Europe Movers: Checkit, Deliveroo, Energy Explorers, Gelion

Inga Muller
26 Jun, 2024
Hong Kong

European markets looked beyond election jitters and the expected dramatic shift in political power balance in the UK and France in the next eleven days.

The DAX index increased by 0.3% to 18,238.42; the CAC-40 index fell by 0.3% to 7,639.42; and the FTSE 100 index rose by 0.1% to 8,259.77.

The yield on 10-year German bonds edged higher to 2.43%. French bonds inched lower to 3.13%; the UK gilts edged higher to 4.10%; and Italian bonds increased to 3.92%.

Gelion PLC surged 51% to 28.0 pence after the Anglo-Australian battery company struck a joint development agreement with Glencore International AG.

Volkswagen AG declined 2.7% to €103.65, and the German vehicle maker announced a $5 billion investment in a joint venture with the struggling electric vehicle maker Rivian.

Checkit plc declined 3.3% to 22.25 pence after the automated monitoring system developer decided not to make an offer to acquire Crimson Tide.

Deliveroo jumped 2.7% to 130.90 pence on reports suggesting that the U.S.-based delivery company DoorDash may be interested in acquiring the company.

Energy explorers turned lower following the more than expected increase in U.S. inventories.

Shell PLC decreased 0.4% to 2,796.0 pence, and BP plc declined 0.4% to 473.65 pence.

European Bond Yields In Focus Ahead of Elections in France and the UK

Bridgette Randall
26 Jun, 2024
Frankfurt

European markets jumped higher amid election jitters, rate uncertainty, and a weak economic outlook.

Benchmark indexes in Paris, London, and Frankfurt advanced despite the growing anxieties about the upcoming elections over the next week.

Investors are bracing for a shift in the balance of power in France, as the party controlled by President Emmanuel Macron is likely to suffer significant losses.

The shift in power in the legislative assembly is also likely to slow down economic reforms and delay France's goal of lowering its budget deficit below 5% of GDP by 2027.

France's national debt is already hovering above 110% of GDP, one of the highest deficits in the world, and above the European Union average of 88.6%.

In the UK, the Conservative Party is likely to suffer severe losses in the upcoming parliamentary election scheduled for July 4.

The next government in the UK is also facing a severe jump in national debt after Prime Minister Rishi Sunak's government ramped up spending during the pandemic era, lifting the debt to 101.3% of GDP.

Europe Indexes and Yields

The DAX index increased by 0.3% to 18,238.42; the CAC-40 index fell by 0.3% to 7,639.42; and the FTSE 100 index rose by 0.1% to 8,259.77.

The yield on 10-year German bonds edged higher to 2.43%. French bonds inched lower to 3.13%; the UK gilts edged higher to 4.10%; and Italian bonds increased to 3.92%.

The euro edged lower to $1.088; the British pound inched higher to $1.266; and the U.S. dollar advanced to 89.80 Swiss cents.

Brent crude decreased $0.57 to $85.43 a barrel, and the Dutch TTF natural gas rose by €0.58 to €35.10 per MWh.

Europe Stock Movers

Gelion PLC surged 51% to 28.0 pence after the Anglo-Australian battery company struck a joint development agreement with Glencore International AG.

Volkswagen AG declined 2.7% to €103.65, and the German vehicle maker announced a $5 billion investment in a joint venture with the struggling electric vehicle maker Rivian.

Checkit plc declined 3.3% to 22.25 pence after the automated monitoring system developer decided not to make an offer to acquire Crimson Tide.

Deliveroo jumped 2.7% to 130.90 pence on reports suggesting that the U.S.-based delivery company DoorDash may be interested in acquiring the company.

Energy explorers turned lower following the more than expected increase in U.S. inventories.

Shell PLC decreased 0.4% to 2,796.0 pence, and BP plc declined 0.4% to 473.65 pence.

Nikkei 225 Index Rebounds Second Consecutive Day as Weak Yen Raises Intervention Risk

Akira Ito
26 Jun, 2024
Tokyo