互联网峰会
Dollar Rises Against Major Counterparts
(RTTNews) - The U.S. dollar climbed higher against its major counterparts on Monday on expectations the Federal Reserve will announce smaller interest rate cuts in the coming months, as against earlier hopes for another 50-basis point cut.
Investors looked ahead to a slew of speeches from Fed officials and some crucial economic data, as well as the European Central Bank's monetary policy announcement this week.
The dollar index rose to a 10-week high, and scored gains against most of its major counterparts. The dollar index, which climbed to 103.36, eased a bit subsequently, but at 103.20, remained firm with a gain of about 0.3%.
Against the Euro, the dollar firmed to 1.0908 from 1.0939. Against Pound Sterling, the dollar gained marginally at 1.3061.
The dollar strengthened against the Japanese currency, fetching 149.74 yen a unit, about 0.4% more than the previous close of 149.14 yen. Against the Aussie, the dollar firmed to 0.6725 from 0.6751.
The dollar climbed against Swiss franc to CHF 0.8625 from CHF 0.8572, and against the Loonie, it advanced to C$ 1.3795 a unit, up from the previous close of C$ 1.3764.
Sensex, Nifty Seen Lower As Retail Inflation Hits Nine-month High
(RTTNews) - Indian shares look set to open on a tepid note Tuesday after government data showed retail inflation in the country rose to a nine-month high of 5.49 percent in September, due to higher food prices. That marks a significant increase from 3.65 percent in August.
Meanwhile, Reliance Industries reported a decline in profits for the third consecutive quarter, as its oils-to-chemicals business underperformed once again.
Benchmark indexes Sensex and Nifty rose around 0.7 percent each on Monday, with IT stocks leading the surge. The rupee closed flat at 84.06 against the dollar.
Asian stocks were mostly lower this morning, though Japanese markets surged as traders returned from a long holiday weekend.
The U.S. dollar traded at an over two-month high against major currencies and gold was little changed amid bets that the Federal Reserve will proceed with modest rate cuts in the near term.
Thursday's ECB meeting remains on investors' radar, where the central bank is likely to deliver another interest rate cut.
Oil prices fell more than 3 percent in Asian trading, extending losses for a third straight session after reports emerged that Israel may avoid targeting Iran's crude infrastructure.
U.S. stocks rallied to new records overnight on relief that interest rates are finally heading back down and that the economy is on a solid footing.
The Dow gained half a percent and the SP 500 jumped 0.8 percent to reach new record closing highs while the tech-heavy Nasdaq Composite advanced 0.9 percent.
European stocks closed higher for a second day running on Monday as investors weighed the prospects of a 25-bps ECB rate cut later in the week.
The pan-European STOXX 600 ended half a percent higher at a two-week high. The German DAX climbed 0.7 percent, France's CAC 40 edged up 0.3 percent and the U.K.'s FTSE 100 added half a percent.
Sensex, Nifty Open Higher On Wall Street Cues
(RTTNews) - Indian shares were modestly higher on Tuesday after major U.S. indexes rallied to new records overnight on relief that interest rates are finally heading back down and that the economy is on a solid footing.
The benchmark SP/BSE Sensex was up 222 points, or 0.3 percent, at 82,195 in early trade while the broader NSE Nifty index was up 47 points, or 0.2 percent, at 25,175.
Reliance Industries dropped half a percent. The company reported a decline in profits for the third consecutive quarter, as its oils-to-chemicals business underperformed once again.
HCL Technologies gained 1 percent on reporting an 11 percent rise in its Q2 net profit.
Bharti Airtel added 1 percent on reports the telecom major has awarded a new multi-billion-dollar contract to buy 5G equipment to Swedish telecom gear maker Ericsson.
ONGC and Oil India both fell around 1 percent as oil prices fell nearly 3 percent in Asian trading, extending losses for a third straight session after reports emerged that Israel may avoid targeting Iran's crude infrastructure.
State-run oil companies such as BPCL, HPCL and IOC surged 2-4 percent.
Major European Markets Close On Firm Note
(RTTNews) - European stocks closed higher on Monday with investors largely making their moves reacting or looking ahead to earnings updates, and digesting some corporate news.
Investors also awaited the European Central Bank's upcoming decision, expecting a 25 bps rate cut later this week.
Data showing much less than expected growth in China's exports and imports in September weighed a bit on sentiment. A much-anticipated Chinese stimulus announcement over the weekend also failed to inspire confidence among investors.
The pan European Stoxx 600 climbed 0.53%. The U.K.'s FTSE 100 gained 0.47%, Germany's DAX ended up 0.69% and France's CAC 40 closed 0.32% up, while Switzerland's SMI advanced 0.86%.
Among other markets in Europe, Belgium, Ireland, Netherlands, Russia, Spain and Sweden ended higher.
Austria, Finland, Greece, Iceland, Poland, Portugal and Turkiye closed weak, while Denmark and Norway ended flat.
Shares of designer goods manufacturers fell as investors remained jittery over anemic China demand for European designer goods.
In the UK market, Vistry Group climbed nearly 4.5%. Bunzl, SSE, BAE Systems and Severn Trent gained 2 to 2.5%, while United Utilities advanced nearly 2%.
Pershing Square Holdings, Sage Group, AstraZeneca, Smiths Group, Coca-Cola HBC, Centrica, EasyJet, Sainsbury (J), Hikma Pharmaceuticals, Diploma, Intertek Group, Compass Group, National Grid and Halma climbed 1 to 1.6%.
Mulberry Group shares jumped over 20% following a revised possible takeover offer from Frasers Group Plc.
Entain tumbled 8% following a report that the Labour government is considering an up to £3 billion tax hit on the gambling sector in this month's Budget. Flutter Entertainment shares ended down by about 6%.
Croda International ended down 2.3%. Antofagasta, Frasers Group, Mondi, Barclays Group and Fresnillo lost 1 to 2%.
In the German market, Rheinmetall climbed more than 2%. Fresenius Medical Care, Infineon, Deutsche Telekom, SAP, Adidas, Deutsche Post and Deutsche Boerse gained 1 to 2%.
Porsche drifted down 1.7% and BASF closed lower by about 1.5%. Volkswagen, Bayer and Vonovia ended moderately lower.
In the French market, Safran, Stellantis, Airbus Group, Thales, Michelin, BNP Paribas, Publicis Groupe and Legrand ended higher by 1 to 2%.
Sanofi ended nearly 100% down. Kering ended lower by nearly 4% and LVMH closed down 2.7%. LVMH, Edenred, Carrefour and Teleperformance lost 1 to 2%.
Asian Markets Track Wall Street Higher
(RTTNews) - Asian stock markets are trading mostly higher on Tuesday, following the broadly positive cues from Wall Street overnight, amid bets the US Fed will proceed with modest rate cuts in the near term after recent US inflation data that showed producer prices were unexpectedly unchanged in September, while the annual rate price growth slowed modestly. Asian markets closed mixed on Monday.
While hopes the Fed will lower rates by another 50 basis points next month have largely evaporated, the data reinforced optimism the central bank will cut rates by 25 basis points. CME Group's FedWatch Tool is currently indicating an 86.1 percent chance the Fed will cut rates by a quarter point at its November meeting.
Adding to the gains in the previous session, the Australian stock market is trading significantly higher on Tuesday, following the broadly positive cues from Wall Street overnight. The benchmark SP/ASX 200 is moving above the 8,300 level to fresh all-time highs, with gains across most sectors led by mining and technology stocks. Energy stocks were the only weak spot amid tumbling crude oil prices.
The benchmark SP/ASX 200 Index is gaining 63.70 points or 0.77 percent to 8,316.50, after touching an all-time high of 8,331.70 earlier. The broader All Ordinaries Index is up 62.90 points or 0.74 percent to 8,592.40. Australian stocks closed notably higher on Monday.
Among the major miners, BHP Group is gaining almost 1 percent, while Rio Tinto and Fortescue Metals are adding more than 1 percent each. Mineral Resources is flat.
Oil stocks are mostly lower. Origin Energy is losing almost 1 percent, while Woodside Energy and Santos are declining more than 1 percent each. Beach energy is flat.
Among tech stocks, Xero and WiseTech Global are adding more than 1 percent each, while Afterpay owner Block is advancing more than 3 percent and Appen is gaining almost 1 percent. Zip is losing more than 1 percent.
Gold miners are mostly higher. Gold Road Resources and Northern Star resources are gaining almost 1 percent each, while Evolution Mining is edging up 0.4 percent, Newmont is adding more than 1 percent and Resolute Mining advancing almost 4 percent.
Among the big four banks, Commonwealth Bank, ANZ Banking, National Australia Bank and Westpac are gaining almost 1 percent each.
In the currency market, the Aussie dollar is trading at $0.673 on Tuesday.
Extending from the gains in the previous three sessions, the Japanese stock market is sharply higher in post-holiday trade on Tuesday, with the Nikkei 225 moving above the 40,200 level, following the broadly positive cues from Wall Street overnight, with gains across all the sectors led by index heavyweights and technology stocks.
The benchmark Nikkei 225 Index closed the morning session at 40,232.45, up 626.65 points or 1.58 percent, after touching a high of 40,257.34 earlier. Japanese shares ended notably higher on Friday ahead of the holiday on Monday.
Market heavyweight SoftBank Group is gaining almost 6 percent, while Uniqlo operator Fast Retailing is edging down 0.3 percent. Among automakers, Honda is edging up 0.4 percent and Toyota is edging up 0.5 percent.
In the tech space, Advantest is gaining more than 3 percent, Screen Holdings is advancing almost 6 percent and Tokyo Electron is adding more than 4 percent.
In the banking sector, Mitsubishi UFJ Financial, Mizuho Financial and Sumitomo Mitsui Financial are gaining more than 2 percent each.
The major exporters are mostly higher. Canon is adding almost 2 percent, while Sony and Mitsubishi Electric are gaining almost 1 percent each. Panasonic is losing almost 1 percent.
Among the other major gainers, Socionext is surging almost 6 percent and Chugai Pharmaceutical is adding more than 5 percent, while Lasertec and Isetan Mitsukoshi are advancing almost 5 percent each. Tokio Marine is gaining more than 4 percent each, while Renesas Electronics and Mercari are up almost 4 percent each. Taiyo Yuden, Ebara and Recruit Holdings are rising more than 3 percent each, while Concordia Financial and Rakuten Group are up almost 3 percent each.
Conversely, Kawasaki Heavy Industries, ENEOS Holdings and Inpex are losing almost 3 percent each.
In the currency market, the U.S. dollar is trading in the higher 149 yen-range on Tuesday.
Elsewhere in Asia, Taiwan is up 1.2 percent, while New Zealand, Singapore, Malaysia, South Korea, and Indonesia are higher by between 0.1 and 0.7 percent each. Hong Kong and China are down 1.2 and 0.8 percent, respectively.
On Wall Street, stocks saw further upside during trading on Monday following the strong upward move seen during last Friday's session. The major averages all moved higher on the day, with the Dow and the SP 500 reaching new record closing highs.
The major averages reached new highs for the session late in the day before giving back some ground going into the close. The Dow rose 201.36 points or 0.5 percent to 43,065.22, the Nasdaq jumped 159.75 points or 0.9 percent to 18,502.69 and the SP 500 climbed 44.82 points or 0.8 percent to 5,859.85.
The major European markets all also moved to the upside on the day. While the German DAX Index advanced by 0.7 percent, the U.K.'s FTSE 100 Index climbed by 0.5 percent and the French CAC 40 Index rose by 0.3 percent.
Crude oil prices fell sharply on Monday, weighed down by another downward revision in demand forecast by OPEC, and concerns about demand from China. West Texas Intermediate Crude oil futures ended down $1.73 or about 2.29 percent at $73.83 a barrel.
Japanese Market Is Sharply Higher
(RTTNews) - Extending from the gains in the previous three sessions, the Japanese stock market is sharply higher in post-holiday trade on Tuesday, with the Nikkei 225 moving above the 40,200 level, following the broadly positive cues from Wall Street overnight, with gains across all the sectors led by index heavyweights and technology stocks.
The benchmark Nikkei 225 Index is up 618.78 points or 1.56 percent at 40,224.58, after touching a high of 40,257.34 earlier. Japanese shares ended notably higher on Friday ahead of the holiday on Monday.
Market heavyweight SoftBank Group is gaining almost 6 percent, while Uniqlo operator Fast Retailing is edging down 0.3 percent. Among automakers, Honda is edging up 0.4 percent and Toyota is edging up 0.5 percent.
In the tech space, Advantest is gaining more than 3 percent, Screen Holdings is advancing almost 6 percent and Tokyo Electron is adding more than 4 percent.
In the banking sector, Mitsubishi UFJ Financial, Mizuho Financial and Sumitomo Mitsui Financial are gaining more than 2 percent each.
The major exporters are mostly higher. Canon is adding almost 2 percent, while Sony and Mitsubishi Electric are gaining almost 1 percent each. Panasonic is losing almost 1 percent.
Among the other major gainers, Socionext is surging almost 6 percent and Chugai Pharmaceutical is adding more than 5 percent, while Lasertec and Isetan Mitsukoshi are advancing almost 5 percent each. Tokio Marine is gaining more than 4 percent each, while Renesas Electronics and Mercari are up almost 4 percent each. Taiyo Yuden, Ebara and Recruit Holdings are rising more than 3 percent each, while Concordia Financial and Rakuten Group are up almost 3 percent each.
Conversely, Kawasaki Heavy Industries, ENEOS Holdings and Inpex are losing almost 3 percent each.
In the currency market, the U.S. dollar is trading in the higher 149 yen-range on Tuesday.
On Wall Street, stocks saw further upside during trading on Monday following the strong upward move seen during last Friday's session. The major averages all moved higher on the day, with the Dow and the SP 500 reaching new record closing highs.
The major averages reached new highs for the session late in the day before giving back some ground going into the close. The Dow rose 201.36 points or 0.5 percent to 43,065.22, the Nasdaq jumped 159.75 points or 0.9 percent to 18,502.69 and the SP 500 climbed 44.82 points or 0.8 percent to 5,859.85.
The major European markets all also moved to the upside on the day. While the German DAX Index advanced by 0.7 percent, the U.K.'s FTSE 100 Index climbed by 0.5 percent and the French CAC 40 Index rose by 0.3 percent.
Crude oil prices fell sharply on Monday, weighed down by another downward revision in demand forecast by OPEC, and concerns about demand from China. West Texas Intermediate Crude oil futures ended down $1.73 or about 2.29 percent at $73.83 a barrel.
Canadian Dollar Falls Against Majors
(RTTNews) - The Canadian dollar weakened against other major currencies in the Asian session on Tuesday.
The Canadian dollar fell to nearly a 2-1/2-month low of 1.3807 against the U.S. dollar, from yesterday's closing value of 1.3795.
Against the yen, the euro and the Australian dollar, the loonie dropped to 108.31, 1.5057 and 0.9288 from Monday's closing quotes of 108.55, 1.5049 and 0.9277, respectively.
If the loonie extends its downtrend, it is likely to find support around 1.39 against the greenback, 104.00 against the yen, 1.52 against the euro and 0.94 against the aussie.
FTSE 100 Slips As Wage Growth Falls
(RTTNews) - U.K. stocks traded lower on Tuesday as data showed U.K. wage growth softened to the lowest in more than two years in the three months to August, adding support to expectations that the central bank will cut interest rates further at the next meeting.
In the three months to August, average earnings excluding bonus increased 4.9 percent from the previous year, slower than the 5.1 percent increase in the three months to July.
This was the slowest rise since June 2022 and also matched expectations. The unemployment rate fell slightly to 4.0 percent in three months to August, while payroll employment decreased 15,000 from the prior month to 30.3 million in September.
The benchmark FTSE 100 was down 31 points, or 0.4 percent, at 8,261 after gaining half a percent in the previous session.
Energy giant BP Plc slumped 4.2 percent and peer Shell fell nearly 3 percent as oil prices slid as much as $3 to a near two-week low on the back of a weaker demand forecast from IEA and after reports that Israel's planned retaliatory attack on Iran won't target nuclear or oil facilities.
Office-rental company Workspace Group dropped about 1 percent after like-for-like occupancy fell due to an unusually high number of customers vacating in the second quarter.
Bellway soared 7.2 percent after the company delivered a reassuring assessment on the state of the U.K.'s housing market recovery.
DAX Modestly Higher In Cautious Trade
(RTTNews) - German stocks traded slightly higher on Tuesday and the euro remained fragile amid bets that the European Central Bank will deliver another interest rate cut at a policy meeting due Thursday.
German ZEW economic confidence survey data and euro area industrial production data are due later in the day.
The German economic sentiment index is forecast to rise to 10.2 in October from 3.6 in September.
Industrial output in the euro area is expected to grow 1.8 percent on month in August, in contrast to the 0.3 percent fall in July.
The benchmark DAX was up 51 points, or 0.3 percent, at 19,560 after climbing 0.7 percent in the previous session.
In corporate news, Deutsche Bank dropped 2 percent after reports of the sale of some 16 million shares in the bank priced at 16.01 euros ($17.43) per share.
Ericsson Turns To Q3 Profit, Sees Signs Of Stabilizing Market; Stock Climbs
(RTTNews) - Shares of LM Ericsson were gaining more than 8 percent in the early morning trading in Stockholm as well as in pre-market activity on the Nasdaq after the Swedish telecom major reported a profit in its third quarter, compared to prior year's loss, even as sales declined.
Looking ahead, Borje Ekholm, President and CEO, said, "We see increasing customer momentum around programmable networks that deliver differentiated performance... We see signs that the overall market is stabilizing with North America, as an early adopter market, returning to growth... We expect our Networks sales to stabilize year-on-year during Q4, driven by continued good growth in North America. However, we anticipate further near-term sales pressure in Enterprise as we focus on profitable segments."
In its third quarter, net income was 3.88 billion Swedish kronor, compared to last year's net loss of 30.49 billion kronor. Earnings per share were 1.14 kronor, compared to loss per share of 9.21 kronor a year ago.
The prior year's profit was hurt by the impairment charge of 31.9 billion kronor, excluding which net profit would have been 1.4 billion kronor.
Sequentially, the result improved significantly from net loss of 11 billion kronor in the second quarter.
In the third quarter, the company's earnings before interest and tax or EBIT increased to 5.77 billion kronor from last year's loss of 28.91 billion kronor. EBIT margin improved to 9.3 percent from prior year's negative 44.8 percent.
Adjusted EBIT excluding impairments climbed 88 percent from last year to 7.33 billion kronor, and adjusted EBIT margin grew to 11.9 percent from 6.0 percent a year ago.
Adjusted EBITA, a key earnings metric, was 7.76 billion kronor, up 64 percent from 4.72 billion kronor in the prior year. Adjusted EBITA margin improved to 12.6 percent from last year's 7.3 percent, benefiting from higher gross income and cost reduction actions, partly offset by targeted investments in RD.
Adjusted gross margin increased to 46.3 percent from last year's 39.2 percent, driven primarily by improved gross margin in Networks.
Sales for the quarter, meanwhile, fell 4 percent to 61.79 billion kronor from 64.47 billion kronor last year. Organic sales declined 1 percent, with strong growth in market area North America of 55 percent offset by declines in most other market areas.
Sequentially, sales grew 3 percent from 59.8 billion kronor recorded in the preceding second quarter.
In the quarter, both Networks as well as Cloud Software and Services reported a 1 percent organic decrease. In Networks, strong growth in market area North America was offset by lower customer investment levels in other markets.
Sales in segment Enterprise declined 3 percent organically due to lower sales in Global Communications Platform.
In pre-market activity on the Nasdaq, Ericsson shares were gaining around 8.49 percent to trade at $8.18.
In Stockholm, Ericsson shares were trading at 84.84 kronor, up 8.32 percent.
For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com.
Pound Rises Against Most Majors
(RTTNews) - The British pound strengthened against most major currencies in the European session on Tuesday.
The pound rose to nearly a 2-week high of 0.8336 against the euro and a 5-day high of 1.3087 against the U.S. dollar, from early lows of 0.8352 and 1.3035, respectively.
Against the Swiss franc, the pound edged up to 1.1276 from an early low of 1.1248.
If the pound extends its uptrend, it is likely to find resistance around 0.81 against the euro, 1.34 against the greenback and 1.13 against the franc.
Sensex, Nifty End Modestly Lower
(RTTNews) - Indian shares ended Tuesday's session modestly lower after data showed India's CPI inflation rose to a nine-month high of 5.49 percent in September versus forecast of 5 percent and 3.65 percent in August on the back of rising food prices.
A stronger dollar and higher U.S. Treasury yields also weighed on markets after Fed Governor Christopher Waller on Monday signaled that future interest rate cuts will be less aggressive than the big move in September, following mixed data points in recent days.
On the positive side, falling oil prices helped to limit overall losses in the broader market.
Oil prices fell nearly 5 percent in European trade to hit two-week lows and extend losses for a third straight session on the back of a weaker demand forecast from IEA and amid reports that Israel's planned retaliatory attack on Iran won't target nuclear or oil facilities.
Closer home, the benchmark 30-share BSE Sensex dropped 152.93 points, or 0.19 percent, to end at 81,820.12 while the broader NSE Nifty index settled at 25,057.35, down 70.60 points, or 0.28 percent, from its previous close.
Hindalco, Bajaj Finance, Bajaj Auto, Wipro and HDFC Life fell 2-4 percent in the Nifty pack while Asian Paints, Britannia Industries, Bharti Airtel, ICICI Bank and BPCL rose 1-2 percent.
European Shares Drift Lower Ahead Of ECB Meeting
(RTTNews) - European shares were moving lower on Tuesday after two days of gains. A slew of mixed regional data and Middle East concerns weighed on sentiment, heading into Thursday's ECB meeting.
Germany's wholesale prices fell at the steepest pace in five months in September, while investor confidence in the country improved for the first time in four months, separate data revealed.
France's consumer price inflation slowed slightly more than initially estimated in September to the lowest level in three-and-a-half years due to cheaper energy costs, statistical office INSEE reported.
Elsewhere, data showed U.K. wage growth softened to the lowest in more than two years in the three months to August, adding support to expectations that the central bank will cut interest rates further at the next meeting.
The pan-European STOXX 600 slipped 0.2 percent to 523.72 after ending half a percent higher to reach at two-week high on Monday.
The German DAX was marginally higher, France's CAC 40 dipped 0.8 percent and the U.K.'s FTSE 100 was down 0.4 percent.
LM Ericsson shares jumped 8.4 percent in Stockholm after the Swedish telecom major reported a profit in its third quarter, compared to prior year's loss.
Tele2 AB gained 2 percent after an announcement that it has appointed Jean-Marc Harion as President and CEO, effective from November 10, 2024.
Energy giant BP Plc slumped 4.2 percent and peer Shell fell nearly 3 percent as oil prices slid as much as $3 to a near two-week low on the back of a weaker demand forecast from IEA and after reports that Israel's planned retaliatory attack on Iran won't target nuclear or oil facilities.
Office-rental company Workspace Group dropped about 1 percent after like-for-like occupancy fell due to an unusually high number of customers vacating in the second quarter.
Bellway soared 7.2 percent after the company delivered a reassuring assessment on the state of the U.K.'s housing market recovery.
TotalEnergies SE shares slumped 4.1 percent in Paris. The oil major warned that its third-quarter downstream results are expected to decline sharply due to lower refining margins in Europe and elsewhere.
Deutsche Bank dropped 2.4 percent after reports of the sale of some 16 million shares in the German bank priced at 16.01 euros ($17.43) per share.
German Economic Sentiment Strengthens In October
(RTTNews) - German economic confidence strengthened for the first time four months in October as financial market experts expect more interest rate cuts amid slowing inflation, survey results from the think tank ZEW showed Tuesday.
The ZEW Indicator of Economic Sentiment rose notably to 13.1 from 3.6 in September. The score was above the expected level of 10.2.
On the other hand, assessment of current situation continued to worsen in October.
The corresponding index slid 2.4 points to -86.9, suggesting that nine out of ten respondents gave negative view. Moreover, the reading was weaker than economists' forecast of -84.5.
Factors that supported an improvement in economic assessment was the expectation of stable inflation rates and the associated prospect of further interest rate cuts by the European Central Bank, ZEW President Achim Wambach said.
There were also positive signals from export markets. In addition, economic expectations for the euro area, the USA and China also significantly improved, said Wambach. The increased optimism for China is likely linked to the Chinese government's economic stimulus measures, Wambach noted.
The survey showed an improvement in economic assessment about the Eurozone. At 20.1, the economic sentiment index moved up more-than-expected from 9.3 in September. The reading was seen at 16.9.
Meanwhile, the current conditions indicator fell 0.4 points to -40.8 in October.
CAC 40 Slides With US Earnings In Focus
(RTTNews) - French stocks were notably lower on Tuesday, with investor focus firmly on a batch of U.S. earnings due later in the day and Thursday's ECB meeting.
Bank of America, Citigroup, Goldman Sachs, Johnson Johnson, UnitedHealth and Walgreens are among the prominent companies due to report their earnings results later in the day.
Meanwhile, France's consumer price inflation slowed slightly more than initially estimated in September to the lowest level in three-and-a-half years amid cheaper energy costs, the latest data from the statistical office INSEE showed today.
The consumer price index climbed 1.1 percent year-over-year in September, slower than the 1.8 percent rise in the previous month. In the flash report, the rate of inflation was 1.2 percent.
Further, this was the weakest inflation rate since March 2021, when prices had risen the same 1.1 percent.
EU-harmonized inflation also softened to 1.4 percent from 2.2 percent in the prior month.
The benchmark CAC 40 was down 64 points, or 0.8 percent, at 7,538 after edging up 0.3 percent the previous day.
TotalEnergies SE shares slumped 4.2 percent. The oil major warned that its third-quarter downstream results are expected to decline sharply due to lower refining margins in Europe and elsewhere.
Pound Rises After U.K. Labor Data
(RTTNews) - The British pound strengthened against most major currencies in the European session on Tuesday, after data showed that the nation's unemployment rate fell slightly in three months to August, while it was forecast to remain unchanged.
Data from the Office for National Statistics showed that the U.K. unemployment rate fell slightly to 4.0 percent in three months to August, while it was forecast to remain unchanged at 4.1 percent.
Payroll employment decreased 15,000 from the prior month to 30.3 million in September.
U.K. wage growth softened to the lowest in more than two years in the three months to August, adding support to expectations that the central bank will cut interest rates further at the next meeting.
In the three months to August, average earnings excluding bonus increased 4.9 percent from the previous year, slower than the 5.1 percent increase in the three months to July.
This was the slowest rise since June 2022 and also matched expectations.
European stocks traded higher amid investor optimism about corporate earnings.
After beats by JP Morgan and Wells Fargo, the focus now shifts to earnings from Bank of America, Citigroup, Goldman Sachs, Johnson Johnson, UnitedHealth and Walgreens later in the day.
Thursday's ECB meeting also remains on investors' radar, with the central bank likely to deliver another interest rate cut after recent data signaled continued weakness in the euro zone economy.
In the European trading today, the pound rose to nearly a 2-week high of 0.8336 against the euro and a 5-day high of 1.3087 against the U.S. dollar, from early lows of 0.8352 and 1.3035, respectively. If the pound extends its uptrend, it is likely to find resistance around 0.81 against the euro and 1.34 against the greenback.
Against the Swiss franc, the pound edged up to 1.1276 from an early low of 1.1248. The pound may test resistance around the 1.13 region.
Meanwhile, the pound dropped to 194.67 against the yen, from an early high of 195.68. The next possible downside support for the pound is seen around the 192.00 region.
Looking ahead, Canada CPI data for September, U.S. NY Empire State manufacturing index for October, U.S. Redbook report and U.S. consumer inflation expectations for September are set to be released in the New York session.
Bay Street May Open With Negative Bias
(RTTNews) - The Canadian market may open with a negative bias Tuesday morning with energy stocks likely to be under pressure due to a sharp fall in oil prices. The focus will be on the nation's inflation data.
Canadian inflation data for the month of September is due at 8:30 AM ET. The annual inflation rate in Canada decelerated for the third month to hit 2% in August, the slowest since February 2021, and reaching the central bank's target for the first time in over three years.
Core consumer prices in Canada increased by 1.5% in August, compared to the same month in the previous year, and easing from 1.7% in July.
Data on Canadian wholesale sales fr the month of September is also due at 8:30 AM ET.
Canadian stocks showed a strong move to the upside during trading on Friday, extending the upward trend seen over the past few sessions. The benchmark SP/TSX Composite Index, which remained firmly positive throughout the day, ended with a gain of 168.91 points or 0.7% at a new record closing high of 24,471.71.
Data from Statistics Canada showed that employment in Canada rose by 46,700 jobs in September, the most in five months and well above the market consensus of a net increase of 27,000 jobs. The unemployment rate in Canada also eased to 6.5% in September from the 34-month high of 6.6% recorded in the previous month.
Kinaxis Inc (KXS.TO) announced over the weekend that it has struck a co-development deal with ExxonMobil to create supply chain solutions for the energy sector. Under the deal, the companies will collaborate to identify supply chain challenges unique to the energy sector and create a potential industry solution to mitigate them.
Primo Water Corporation (PRMW.TO) today announced that its Board of Directors declared a special dividend of US$0.82 per share on its common shares, payable in cash on November 21, 2024 to shareowners of record at the close of business on November 5, 2024.
Asian stocks closed broadly higher on Tuesday, with Japanese markets leading regional gains after Prime Minister Shigeru Ishiba reportedly said his government is aiming to compile a supplementary budget for the current fiscal year in excess of last year's 13.1 trillion yen to fund an economic support package.
Chinese and Hong Kong markets underperformed after weekend announcements from authorities about economic support failed to inspire confidence among investors.
European stocks are mostly moving lower with investors digesting a slew of mixed regional data and looking ahead to the European Central Bank's meeting later this week. Middle East concerns appear to be weighing as well on sentiment.
In commodities, West Texas Intermediate Crude oil futures are down $3.02 or about 3.1% at $70.81 a barrel.
Gold futures are up $1.50 or 0.06% at $2,667.10 an ounce, while Silver futures are up $0.014 or 0.04% at $31.330 an ounce.
TSX Ends Marginally Down
(RTTNews) - The Canadian market ended weak on Tuesday due to heavy selling in the energy sector as oil prices fell amid easing fears of a supply disruptions after reports said Israel will not strike Iranian oil and nuclear sites.
Soft Canadian inflation data helped limit the market's downside.
The benchmark SP/TSX Composite Index ended down 32.09 points or 0.13% at 24,439.08. The index, which dropped to 24,357.87 recovered to 24,479.22 before paring gains.
The Energy Capped Index tumbled 4.79%. Baytex Energy (BTE.TO), International Petroleum Corp (IPCO.TO), Kelt Exploration (KEL.TO), Vermilion Energy (VET.TO), Tamarack Valley Energy (TVE.TO), Canadian Natural Resources (CNQ.TO), Cenovus Energy (CVE.TO), Nuvista Energy (NVA.TO), MEG Energy (MEG.TO) and Suncor Energy (SU.TO) lost 5 to 6.3%.
Healthcare stocks Bausch Health Companies (BHC.TO), Chartwell Retirement Residences (CSH.UN.TO) and Sienna Senior Living (SIA.TO) gained 5.7%, 2.7% and 2.5%, respectively.
In the utilities sector, Emera Incorporated (EMA.TO) and Hydro One (H.TO) climbed 4.1% and 3.2%, respectively. Fortis Inc (FTS.TO), Canadian Utilities (CU.TO), Innergex Renewable Energy (INE.TO) and Algonquin Power Utilities Corp (AQN.TO) gained 2 to 4.1%. Atco Ltd. (ACO.X.TO) climbed nearly 2%.
Real estate stocks Dream Industrial (DIR.UN.TO) and Crombie Real Estate Investment (CRR.UN.TO) gained about 3.2% and 2.5%, respectively. Choice Properties (CHP.UN.TO) and CT Real Estate Investment (CRT.UN.TO) both gained a little over 2%.
Primo Water Corporation (PRMW.TO) shares gained 3.3% after the company announced that its Board of Directors declared a special dividend of US$0.82 per share on its common shares, payable in cash on November 21, 2024 to shareowners of record at the close of business on November 5, 2024.
Data from Statistics Canada said the annual inflation rate in Canada fell to 1.6% in September from 2% in the previous month, the lowest since February 2021. The consumer price index decreased 0.4% in September over the previous month.
The annual core inflation rate in Canada ticked up to 1.6% in September from a 3-1/2-year low of 1.5% in the prior month. On a monthly basis, core consumer pries were flat, after falling by 0.1% in the prior month.
A separate data from Statistics Canada said wholesale sales in Canada declined 0.6% month-over-month to $81.9 billion in August, less than preliminary estimates of a 1.1% drop, following a downwardly revised 0.3% rise in July.
Malaysia Shares Tipped To Open In The Red
(RTTNews) - The Malaysia stock market has finished higher in back-to-back sessions, adding almost 10 points or 0.6 percent along the way. The Kuala Lumpur Composite Index now sits just above the 1,640-point plateau although it may spin its wheels on Wednesday.
The global forecast for the Asian markets is negative thanks to a combination of weak economic and earnings news, while profit taking may also be in order. The European and U.S. markets were down and the Asian bourses are expected to follow that lead.
The KLCI finished modestly higher on Tuesday as gains from the financials, plantations and telecoms were capped by weakness from the industrial and entertainment companies.
For the day, the index rose 5.43 points or 0.33 percent to finish at 1,641.97 after trading between 1,636.89 and 1,643.64.
Among the actives, Axiata gained 0.42 percent, while Celcomdigi advanced 0.55 percent, Genting skidded 1.00 percent, Genting Malaysia retreated 1.76 percent, IHH Healthcare and Tenaga Nasional both perked 0.28 percent, Kuala Lumpur Kepong added 0.47 percent, Maxis spiked 2.46 percent, Maybank jumped 1.14 percent, MISC tumbled 1.80 percent, MRDIY sank 0.42 percent, Nestle Malaysia surged 3.41 percent, Petronas Chemicals rose 0.36 percent, PPB Group slumped 1.11 percent, Press Metal dropped 0.62 percent, Public Bank rallied 2.05 percent, QL Resources climbed 0.86 percent, RHB Bank collected 0.16 percent, Sime Darby declined 1.63 percent, SD Guthrie soared 2.61 percent, Sunway accelerated 2.30 percent, Telekom Malaysia gathered 0.31 percent, YTL Corporation plummeted 6.10 percent, YTL Power plunged 4.84 percent and CIMB Group, IOI Corporation and Petronas Gas were unchanged.
The lead from Wall Street is soft as the major averages opened mixed on Tuesday but quickly turned lower and saw all of them finish well under water.
The Dow tumbled 324.80 points or 0.75 percent to finish at 42,740..42, while the NASDAQ slumped 187.10 points or 1.01 percent to close at 18,315.59 and the SP 500 sank 44.59 points or 0.76 percent to end at 5,815.26.
The pullback on Wall Street reflected profit taking as traders looked to cash in on recent strength in the markets after the Dow and SP hit record closing highs on Monday.
Corporate earnings also weighed, led lower by the likes of UnitedHealth (UNH) and Citigroup (C), although Walgreens Boots Alliance (WBA) rallied on its results.
On the U.S. economic front, the Federal Reserve Bank of New York reported that regional manufacturing activity has returned to contraction in October.
Oil prices fell sharply on Tuesday as fears about supply disruptions faded on reports that Israel will avoid targeting Iran's oil sites. West Texas Intermediate crude oil futures for November sank $3.25 or 4.4 percent at $70.58 a barrel.
Yen Rises Amid BoJ Rate Hike Uncertainty
(RTTNews) - The Japanese yen strengthened against other major currencies in the European session on Tuesday, following Bank of Japan Governor Kazuo Ueda's dovish remarks and incoming Prime Minister Shigeru Ishiba's unexpected resistance to additional rate increases.
Optimism about the U.S. economic outlook, rising bets that the Bank of Japan will forgo raising interest rates again this year, also bolstered the trader's sentiment.
Prime Minister Shigeru Ishiba reportedly said his government is aiming to compile a supplementary budget for the current fiscal year in excess of last year's 13.1 trillion yen ($87.6 billion) to fund an economic support package.
Fed Governor Christopher Waller on Monday signaled that future U.S. Fed interest rate cuts will be less aggressive than the big move in September, following mixed data points in recent days.
In economic news, data from the Ministry of Economy, Trade, and Industry showed that Japan's industrial production decreased as initially estimated in August. Industrial production contracted 3.3 percent on a monthly basis, reversing a 3.1 percent rebound in July. That was in line with the flash data published earlier.
Year-on-year, industrial production declined 4.9 percent in August versus a 2.9 percent rise in the prior month.
In the European trading today, the yen rose to 4-day highs of 162.37 against the euro and 148.85 against the U.S. dollar, from early lows of 163.36 and 149.79, respectively. The yen may test resistance near 157.00 against the euro and 142.00 against the greenback.
The yen advanced to a 6-day high of 172.80 against the Swiss franc, from an early low of 173.69. On the upside, 168.00 is seen as the next resistance level for the yen.
Against Australia, the New Zealand and the Canadian dollars, the yen climbed to a 5-day high of 99.94, a 4-day high of 90.60 and nearly a 2-week high of 107.81 from early lows of 100.77, 91.22 and 108.50, respectively. If the yen extends its uptrend, it is likely to find resistance around 98.00 against the aussie, 88.00 against the kiwi and 104.00 against loonie.
The yen edged up to 194.65 against the pound, from an early low of 195.68. The next possible upside target for the yen is seen around the 190.00 region.
Looking ahead, Canada CPI data for September, U.S. NY Empire State manufacturing index for October, U.S. Redbook report and U.S. consumer inflation expectations for September are set to be released in the New York session.
Eurozone Industrial Output Recovers In August
(RTTNews) - Eurozone industrial production recovered in August largely due to the rebound in capital goods and durable consumer goods output, data from Eurostat showed on Tuesday.
Industrial output posted a monthly growth of 1.8 percent in August, reversing July's 0.5 percent decline. The growth came in line with expectations.
Despite the strongest rise in industrial output in over a year, it is probably not the start of a sustained recovery, Capital Economics' economist Elias Hilmer said.
Production is more likely to drop back over the rest of the year, the economist added.
ING economist Bert Colijn said it looks like improvements in the inventory cycle will be more of a story for next year. "For the manufacturing sector, this means that we don't expect a sustained recovery to start before 2025," said Colijn.
Production of capital goods advanced 3.7 percent, offsetting the 1.3 percent drop a month ago. At the same time, durable consumer goods output moved up 1.7 percent after a 3.1 percent fall.
Likewise, energy production gained 0.4 percent, in contrast to the 0.2 percent fall in July. The decline in intermediate goods output slowed to 0.3 percent from 1.3 percent.
Meanwhile, growth in non-durable consumer goods output softened to 0.2 percent from 1.8 percent.
On a yearly basis, euro area industrial output unexpectedly rose 0.1 percent, following a 2.1 percent fall in July. Economists had forecast a monthly decline of 1.2 percent.
Industrial production in the EU27 gained 1.3 percent on month in August and climbed 0.2 percent from the same period last year.
Yen Rises Against Majors
(RTTNews) - The Japanese yen strengthened against other major currencies in the European session on Tuesday.
The yen rose to 4-day highs of 162.37 against the euro and 148.85 against the U.S. dollar, from early lows of 163.36 and 149.79, respectively.
The yen advanced to a 6-day high of 172.80 against the Swiss franc, from an early low of 173.69.
Against Australia, the New Zealand and the Canadian dollars, the yen climbed to a 5-day high of 99.94, a 4-day high of 90.60 and nearly a 2-week high of 107.81 from early lows of 100.77, 91.22 and 108.50, respectively.
The yen edged up to 194.65 against the pound, from an early low of 195.68.
If the yen extends its uptrend, it is likely to find resistance around 157.00 against the euro, 142.00 against the greenback, 168.00 against the franc, 98.00 against the aussie, 88.00 against the kiwi, 104.00 against loonie and 190.00 against the pound.
Lower Open Called For Singapore Stock Market
(RTTNews) - The Singapore stock market turned lower again on Tuesday, one day after ending the two-day slide in which it had slumped almost 25 points or 0.6 percent. The Straits Times Index now sits just above the 3,595-point plateau and it's expected to open under pressure again on Wednesday.
The global forecast for the Asian markets is negative thanks to a combination of weak economic and earnings news, while profit taking may also be in order. The European and U.S. markets were down and the Asian bourses are expected to follow that lead.
The STI finished barely lower on Tuesday following losses from the properties and mixed performances from the financials, industrials and trusts.
For the day, the index eased 0.44 points or 0.01 percent to finish at 3,595.47 after trading between 3,591.15 and 3,622.71.
Among the actives, CapitaLand Integrated Commercial Trust skidded 0.95 percent, while CapitaLand Investment fell 0.66 percent, City Developments declined 1.34 percent, Comfort DelGro and Mapletree Pan Asia Commercial Trust both lost 0.69 percent, DBS Group climbed 0.69 percent, Emperador spiked 1.18 percent, Genting Singapore tumbled 1.73 percent, Hongkong Land sank 0.76 percent, Keppel DC REIT jumped 1.79 percent, Keppel Ltd slumped 1.23 percent, Mapletree Industrial Trust slid 0.41 percent, Mapletree Logistics Trust shed 0.70 percent, Oversea-Chinese Banking Corporation eased 0.39 percent, SATS rallied 1.10 percent, SembCorp Industries stumbled 1.62 percent, Singapore Technologies Engineering dropped 0.86 percent, SingTel advanced 0.63 percent, Wilmar International retreated 1.49 percent, Yangzijiang Financial soared 2.47 percent, Yangzijiang Shipbuilding surged 5.35 percent
Frasers Logistics Commercial Trust, Fraser and Centrepoint Trust, Seatrium Limited and Thai Beverage were unchanged.
The lead from Wall Street is soft as the major averages opened mixed on Tuesday but quickly turned lower and saw all of them finish well under water.
The Dow tumbled 324.80 points or 0.75 percent to finish at 42,740..42, while the NASDAQ slumped 187.10 points or 1.01 percent to close at 18,315.59 and the SP 500 sank 44.59 points or 0.76 percent to end at 5,815.26.
The pullback on Wall Street reflected profit taking as traders looked to cash in on recent strength in the markets after the Dow and SP hit record closing highs on Monday.
Corporate earnings also weighed, led lower by the likes of UnitedHealth (UNH) and Citigroup (C), although Walgreens Boots Alliance (WBA) rallied on its results.
On the U.S. economic front, the Federal Reserve Bank of New York reported that regional manufacturing activity has returned to contraction in October.
Oil prices fell sharply on Tuesday as fears about supply disruptions faded on reports that Israel will avoid targeting Iran's oil sites. West Texas Intermediate crude oil futures for November sank $3.25 or 4.4 percent at $70.58 a barrel.
South Korea Shares May Run Out Of Steam On Wednesday
(RTTNews) - The South Korea stock market has climbed higher in two straight sessions, gathering more than 35 points or 1.3 percent along the way. The KOSPI now sits just above the 2,630-point plateau although the rally may stall on Wednesday.
The global forecast for the Asian markets is negative thanks to a combination of weak economic and earnings news, while profit taking may also be in order. The European and U.S. markets were down and the Asian bourses are expected to follow that lead.
Th KOSPI finished modestly higher on Tuesday following mixed performances from the financial shares, technology stocks and industrial issues.
For the day, the index added 10.16 points or 0.39 percent to finish at 2,633.45 after trading between 2,615.47 and 2,635.32. Volume was 430 million shares worth 9.72 trillion won. There were 445 decliners and 418 gainers.
Among the actives, Shinhan Financial shed 0.52 percent, while KB Financial stumbled 1.65 percent. Hana Financial collected 0.94 percent, Samsung Electronics rose 0.33 percent, Samsung SDI surrendered 2.23 percent, LG Electronics dipped 0.30 percent, SK Hynix rallied 2.88 percent, Naver spiked 2.22 percent, LG Chem tanked 2.43 percent, Lotte Chemical plummeted 5.08 percent, SK Innovation tumbled 2.77 percent, POSCO plunged 3.29 percent, SK Telecom lost 0.53 percent, KEPCO was up 024 percent, Hyundai Mobis perked 0.22 percent, Hyundai Motor skidded 1.01 percent and Kia Motors dropped 0.89 percent.
The lead from Wall Street is soft as the major averages opened mixed on Tuesday but quickly turned lower and saw all of them finish well under water.
The Dow tumbled 324.80 points or 0.75 percent to finish at 42,740..42, while the NASDAQ slumped 187.10 points or 1.01 percent to close at 18,315.59 and the SP 500 sank 44.59 points or 0.76 percent to end at 5,815.26.
The pullback on Wall Street reflected profit taking as traders looked to cash in on recent strength in the markets after the Dow and SP hit record closing highs on Monday.
Corporate earnings also weighed, led lower by the likes of UnitedHealth (UNH) and Citigroup (C), although Walgreens Boots Alliance (WBA) rallied on its results.
On the U.S. economic front, the Federal Reserve Bank of New York reported that regional manufacturing activity has returned to contraction in October.
Oil prices fell sharply on Tuesday as fears about supply disruptions faded on reports that Israel will avoid targeting Iran's oil sites. West Texas Intermediate crude oil futures for November sank $3.25 or 4.4 percent at $70.58 a barrel.
New Zealand Inflation Slows To 2.2% Annually
(RTTNews) - Consumer prices in New Zealand were up 2.2 percent on year in the third quarter of 2024, Statistics New Zealand said on Wednesday in line with expectations and down from 3.3 percent in the previous three months.
Higher prices were recorded for housing rentals, up 4.5 percent; local authority rates and payments, up 12.2 percent; and cigarettes and tobacco, up 10.0 percent.
These were partly offset by lower prices for petrol, down 8.0 percent; and vegetables, down 17.9 percent/
On a seasonally adjusted quarterly basis, inflation rose 0.6 percent - shy of expectations for 0.7 percent and up from 0.4 percent in the three months prior.
