Investors Shift Focus to Economic Releases, India Extends Record High Streak

Barry Adams
29 Nov, 2022
New York City

Stocks on Wall Street lacked direction and closed down as investors shifted focus from corporate earnings to upcoming economic data releases. 

Investors are awaiting JOLT report on and look for clues how the labor market is holding up after several aggressive rate hikes and November payrolls on Friday. 

Inflation data are scheduled to be released on Thursday and the PCE price index is expected to increase at least 6.0% for October month from a year ago. 

Investors are also looking ahead to reviewing Federal Reserve Chairman Jay Powell's two scheduled speeches on Wednesday. 

The S&P 500 index decreased 0.2% to 3,957.63  and the Nasdaq Composite index fell 0.6% to 10,983.78. 

Hibbett Inc declined 11.5% to $59.80 after the sporting goods retailer posted weaker-than-expected earnings on higher costs. 

 

Crude Oil Advances On China Buzz and OPEC Cut Hopes 

China said it plans to accelerate vaccination of senior citizens and relax stringent lock down measures, health authorities reported today. 

Over the weekend a string of protests in many cities and on university campuses against zero-Covid policies spread across China, demanding Chinese authorities to find ways to coexist with the highly infectious coronavirus.  

Crude oil prices rose on speculation that China's relaxation of zero-Covid policy may revive the import of crude oil and on hopes that oil producing nations may announce a production cut at its next meeting on December 4.  

Crude oil increased $1.74 to $78.94 and natural gas increased 8 cents to $7.28 a thermal unit. 

 

U.S. Treasury Yields Inch Higher 

The yield on 2-year U.S. Treasury notes increased to 4.48%, 10-year U.S. Treasury notes edged higher to 3.74% and 30-year Treasury bonds traded at 3.80%. 

 

U.S. Home Price Growth Slows 

Home prices declined for the third month in a row in September, S&P CoreLogic Case Shiller National index showed today.

Higher mortgage rates played a key role in lowering price appreciation and home prices eased in September 0.8% from the previous month.  

From a year ago, single-family home prices rose 10.6%, slower than 12.9% in August  across the nation.

The 20-city composite index showed price increase slowed to 10.4% from 12.6% in August.

Miami, Tampa, and Charlotte reported the highest year-over-year gains among the 20 cities in September.

Miami led the way with a 24.6% year-over-year price increase, followed by Tampa in second with a 23.8% increase, and Charlotte in third with a 17.8% increase.

All 20 cities reported lower price increases in the year ending September 2022 versus the year ending August 2022.

 

European Markets Struggle to Advance

European markets opened on an optimistic note but struggled to advance. 

Stocks rebounded in early trading across Europe after China reported a slight decline in daily infection rates. 

Chinese health authorities also laid out a plan to increase vaccination for senior citizens and review measures to ease stricter lock downs. 

China also offered more financial incentives for the struggling property sector, lifting benchmark indexes in Hong Kong by 5% and Shanghai by 2.4%. 

Inflation data from Germany and Spain showed a slight decline from the previous month, but remained near 4-decade high levels. 

 

Germany's Inflation Hovers Near Record High 

 The consumer price index in Germany eased to 10.0% in November from the record 10.4% in October, significantly higher than 2.0% target rate set by the ECB.

 

Spain's Inflation Eases 

The consumer price index in Spain increased at a 6.8% annual pace in November, slower than the 7.3% rise in October, the data from the statistical office INE showed Tuesday. 

The CPI slowed for the fourth month in a row after reaching a high of 10.8% in July. 

Unlike Germany and the UK, Spain avoided the energy crisis with the help of significant regasification capacity and larger footprint of renewable energy. 

 

Swiss GDP Growth Slows 

The Swiss economy expanded at a slower pace in the third quarter ending in September, the State Secretariat for Economic Affairs in Bern said Tuesday. 

GDP expanded at an annual pace of 0.5% in the third quarter after rising at 2.2% annual pace in the second quarter.

Third quarter expansion was driven by the 0.7% increase in household consumption despite the elevated inflation but slower than the 1.1% increase in the previous quarter.   

 

Turkish Trade Deficit Widens 

The Turkish trade deficit rose in October to $7.4 billion from $4.3 billion a year ago but declined from $9.6 billion a year ago, the Turkish Statistical Institute said Tuesday. 

 

Market Indexes 

The DAX index decreased 0.2% to 14,355.45, the CAC-40 index increased 3.37 points to 6,668.97 and the FTSE 100 index added 0.5% to 7,512.00. 

Brent crude oil was unchanged at $83.10 a barrel and Dutch TTF natural gas price increased 7.3% to 132.29 euros a MWh. 

The euro edged down to $1.032 and the British Pound inched lower to $1.194. 

 

Europe Stock Movers 

HSBC Holdings soared 3.6% to 507.56 pence after the British bank said it agreed to sell its Canada business for $10 billion to Royal Bank of Canada. 

HSBC has been looking to trim down its expenses in the U.S. and also sell its non-core assets. 

The bank plans to distribute proceeds of the Canada business sales through a special dividend to shareholders. 

Vodafone Group was nearly unchanged at 92.84 pence after the British telecom group launched a buyback offer up to $2.3 billion of its 4.375% notes due in May 2028.

Brenntag SE declined 2.4% to