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European Shares Poised For Mixed Open
(RTTNews) - European stocks are seen opening on a mixed note Monday as investors await cues from earnings and ponder over whether the U.S. Federal Reserve will cut interest rates in November.
The release of reports on U.S. retail sales and industrial production along with speeches by a slew of Fed officials may provide more cues on the interest-rate outlook as the week progresses.
On the earnings front, Bank of America, Citigroup, Goldman Sachs, Johnson Johnson, UnitedHealth, Morgan Stanley and Netflix are among the prominent U.S. companies due to report their quarterly results this week.
Chipmaking bellwether ASML Holding reports on Wednesday, with investors looking for more cues on artificial intelligence-driven demand.
Meanwhile, as fighting raged between Israel and Hezbollah forces in Lebanon's south, the United States said on Sunday it will send U.S. troops to Israel along with an advanced U.S. anti-missile system to bolster the country's air defenses following missile attacks by Iran.
Asian stocks traded mixed, with Japanese markets closed for a holiday.
China's consumer inflation unexpectedly eased in September, while producer price deflation deepened, raising concerns about weak domestic demand.
Also, China's finance ministry flagged more fiscal stimulus over the weekend but left out key details on the overall size of the package.
Minister of Finance Lan Foan pledged to "significantly increase" debt, offer subsidies to people with low incomes, support the property market and replenish state banks' capital, among other measures.
Gold edged lower in Asian trading as the dollar extended gains on reduced bets of outsized Fed rate cuts.
Oil prices were down more than 1 percent as China demand concerns overshadowed fears of a worsening conflict between Israel and Iran.
U.S. stocks rose Friday as investors cheered strong earnings results from the likes of JPMorgan Chase and Wells Fargo, and a benign producer price inflation reading.
Data showed producer prices in the U.S. were unexpectedly unchanged in September after rising by 0.2 percent in August.
The annual rate of growth in producer prices slowed to 1.8 percent from an upwardly revised 1.9 percent in August.
The Dow climbed 1 percent and the SP 500 added 0.6 percent to reach new record closing highs while the tech-heavy Nasdaq Composite edged up 0.3 percent.
European stocks closed higher on Friday as German inflation fell to its lowest level in more than three years and traders looked ahead to highly anticipated fiscal stimulus from China.
The pan European STOXX 600 advanced 0.6 percent. The German DAX gained 0.9 percent, France's CAC 40 rose half a percent and the U.K.'s FTSE 100 inched up 0.2 percent.
Australian Market Modestly Higher
(RTTNews) - The Australian stock market is currently trading modestly higher on Monday, reversing the slight losses in the previous session, following the broadly positive cues from Wall Street on Friday. The benchmark SP/ASX 200 index is staying above the 8,200.00 level, with gains in mining and financial stocks partially offset by weakness in energy stocks.
The benchmark SP/ASX 200 Index is gaining 26.10 points or 0.32 percent to 8,240.60, after touching of 8,254.10 earlier. The broader All Ordinaries Index is up 25.00 points or 0.29 percent to 8,516.50. Australian stocks closed slightly lower on Friday.
Among the major miners, BHP Group and Rio Tinto are edging up 0.1 to 0.5 percent each, while Fortescue Metals is gaining more than 1 percent. Mineral Resources is losing almost 2 percent.
Oil stocks are mostly lower. Origin Energy Energy is edging down 0.4 percent and Santos is down more than 1 percent, while Beach energy and Woodside Energy are losing almost 1 percent each.
Among tech stocks, Afterpay owner Block is losing almost 2 percent and Zip is declining more than 1 percent, while Appen is gaining almost 3 percent and Xero is adding almost 1 percent. WiseTech Global is flat.
Gold miners are mostly higher. Evolution Mining and Northern Star Resources are gaining more than 1 percent each, while Resolute Mining is adding more than 2 percent and Newmont is edging up 0.4 percent. Gold Road Resources is flat.
Among the big four banks, Commonwealth Bank, Westpac and National Australia Bank are edging up 0.4 to 0.5 percent each, while ANZ Banking is gaining almost 1 percent.
In other news, shares in Web Travel Group are tumbling 31 percent after it said subdued margins in its European WebBeds business led to disappointing results and weak outlook.
In the currency market, the Aussie dollar is trading at $0.673 on Monday.
On Wall Street, stocks showed a strong move back to the upside during trading on Friday following the modest pullback seen in the previous session. The major averages more than offset yesterday's losses, with the Dow and the SP 500 reaching new record closing highs.
The major averages pulled back off their best levels going into the close but remained firmly positive. The Dow jumped 409.74 points or 1.0 percent to 42,863.86, the SP 500 climbed 34.96 points or 0.6 percent to 5,815.03 and the Nasdaq rose 60.89 points or 0.3 percent to 18,342.94.
The major European markets all also moved to the upside over the course of the session. While the German DAX Index advanced by 0.9 percent, the French CAC 40 Index climbed by 0.5 percent and the U.K.'s FTSE 100 Index edged up by 0.2 percent.
Crude oil prices saw a modest pullback on Friday after surging in the previous session. West Texas Intermediate crude for November delivery dipped $0.29 or 0.4 percent to $75.56 a barrel. Despite the pullback on the day, the price of crude oil jumped by 1.6 percent for the week.
Dollar Extends Gains As Rate Cut Expectations Weaken
(RTTNews) - The U.S. dollar firmed up during the week ended October 11 amidst a weakening in expectations regarding the Fed's monetary easing plans. Concerns about inflation and premature easing contained in the recent FOMC minutes as well as the lesser-than-expected progress on the inflation front helped the U.S. Dollar record gains against the euro, the British pound, the Australian dollar, the Japanese yen and the Canadian dollar. The greenback however weakened marginally against the Swedish krona and the Swiss franc.
The 6-currency Dollar Index or DXY added 0.36 percent during the week ended October 11. The Index which was at 102.52 on October 4 rallied over the course of the week to close at 102.89. The week's trading range was slightly wider, with a low of 102.29 recorded on Tuesday and a high of 103.18 recorded on Thursday.
Waning rate cut expectations boosted the dollar during the past week. According to the CME FedWatch tool that tracks the expectations of interest rate traders, the probability of a rate cut of 25 basis points by the Fed in the review scheduled for early-November dropped to 89.5 percent on October 11 from 97.4 percent a week earlier. Consequently, expectations of a pause surged to 10.5 percent from 2.6 percent a week earlier.
The revelations regarding the deliberations at the previous FOMC swayed sentiment in favor of the greenback. Though the Federal Reserve had surprised with a 50-basis points rate cut, the decision to slash rates by 50 basis points was not unanimous and one member had dissented.
Governor Michelle. W. Bowman preferred to lower the federal funds rate by 25 basis points only, in the light of core inflation remaining well above the Committee's objective, a labor market that was near full employment, and solid underlying growth. She felt that the Committee's larger policy action could be seen as a premature declaration of victory on the price-stability part of the dual mandate.
Despite the broad consensus on the diminishing upside risks to inflation and the increasing downside risks to employment, participants emphasized that inflation remained somewhat elevated and expressed a strong commitment to bring inflation to the Committee's 2 percent objective. The participants also agreed that labor market conditions were almost close to the Committee's longer-run goal of maximum employment.
Close on the heels of the FOMC minutes, the Dollar was boosted by the hotter-than-expected consumer price inflation update. Data released by the U.S. Bureau of Labor Statistics on Thursday showed annual headline inflation in the U.S. edging down to 2.4 percent from 2.5 percent in August, missing market expectations of a reading of 2.3 percent. The core component thereof which was seen steady at 3.2 percent unexpectedly edged up to 3.3 percent. Month-on-month inflation which was seen edging down to 0.1 percent from 0.2 percent in the previous month unexpectedly remained steady at 0.2 percent. The core component thereof which was seen edging down to 0.2 percent from 0.3 percent in the previous month unexpectedly remained steady at 0.3 percent.
Meanwhile, weekly data released by the U.S. Department of Labor showed initial jobless claims rising to 258 thousand during the week ended October 5, from 225 thousand a week earlier. The level far exceeded market expectations of a level of 230 thousand and capped the Dollar's gains.
The Dollar's strength reduced further on Friday amidst flat producer price inflation data. Month-on-month producer price inflation was seen edging down to 0.1 percent from 0.2 percent previously.
The EUR/USD pair slipped 0.36 percent during the week ended October 11 amidst expectations of another rate cut by the ECB. The firm rate cut hints by the ECB contrasted with the caution sounded in the recent Fed minutes and the strong economic data from the U.S. that dragged down the euro and lifted the dollar. The pair slipped to 1.0937 from 1.0976 a week earlier. The weekly trading ranged between 1.0998 and 1.0900.
Bank of England Governor Andrew Bailey's hints of aggressive rate cuts if inflation declined as expected caused the sterling to plunge 0.38 percent against the greenback during the week ended October 11. The GBP/USD pair declined to 1.3066 on October 11, from 1.3116 a week earlier. The sterling's weekly trading range was between $1.3136 and $1.3021. Data released on Friday had shown the U.K. economy expanded as expected by 0.2 percent in August versus stagnant growth in the previous period.
The Aussie also slipped against the Dollar amidst minutes of the Reserve Bank of Australia that showed an increasingly neutral stance. The minutes revealed that RBA discussed scenarios for both lowering and raising interest rates. The Australian Dollar slipped 0.65 percent against the greenback during the week spanning October 7 to 11. From the level of 0.6794 recorded on October 4, the AUD/USD pair dropped to 0.6750. The pair touched a high of 0.6813 on Monday and a low of 0.6707 on Wednesday.
The Japanese Yen slipped 0.28 percent against the U.S. Dollar amidst uncertainty over the monetary policy trajectory to be pursued by the Bank of Japan, given the perceived opposition from the political establishment. The pair increased to close at 149.13 on Friday versus 148.71 on October 4. The pair climbed from a low of 147.34 on Tuesday to a high of 149.56 on Thursday amidst market speculation about when BoJ would deliver the next rate hike.
Ahead of the Retail Sales update from the U.S. on Thursday, which is expected to show a rise, the Dollar Index has increased to 103.17. The EUR/USD pair has weakened to 1.0911 amidst expectations of another 25-basis points rate cut by the European Central Bank on Thursday. The GBP/USD pair has decreased to 1.3047 ahead of Wednesday's inflation update which is expected to show consumer price inflation easing to 1.9 percent. The AUD/USD pair has also slipped to touch 0.6715. Amidst anxiety ahead of inflation data from Japan on Thursday, the USD/JPY pair has increased further to 149.67.
Sensex, Nifty Likely To Open On Flat Note
(RTTNews) - Indian shares look set to open on a flat note Monday despite mostly positive cues from global markets.
Investors may ponder over the domestic economic outlook after data showed India's industrial output contracted in August for the first time since October 2022.
Trading later in the week may be influenced by foreign fund inflows, crude oil price movements, the latest updates on the geopolitical front and a batch of corporate earnings.
Reliance Industries, Infosys, HDFC Bank, Axis Bank, and HCL Tech are among the prominent companies that will unveil their quarterly earnings results this week.
Asian stocks traded mixed this morning, with Japanese markets shut for a holiday.
China's consumer inflation unexpectedly eased in September, while producer price deflation deepened, raising concerns about weak domestic demand.
Also, China's finance ministry flagged more fiscal stimulus over the weekend but left out key details on the overall size of the package.
Minister of Finance Lan Foan pledged to "significantly increase" debt, offer subsidies to people with low incomes, support the property market and replenish state banks' capital, among other measures.
Gold edged lower in Asian trading as the dollar extended gains on reduced bets of outsized Fed rate cuts.
Oil prices fell nearly 2 percent as China demand concerns overshadowed fears of a worsening conflict between Israel and Iran.
The United States said on Sunday it will send U.S. troops to Israel along with an advanced U.S. anti-missile system to bolster the country's air defenses following missile attacks by Iran.
U.S. stocks rose Friday as investors cheered strong earnings results from the likes of JPMorgan Chase and Wells Fargo, and a benign producer price inflation reading.
Data showed producer prices in the U.S. were unexpectedly unchanged in September after rising by 0.2 percent in August.
The annual rate of growth in producer prices slowed to 1.8 percent from an upwardly revised 1.9 percent in August.
The Dow climbed 1 percent and the SP 500 added 0.6 percent to reach new record closing highs while the tech-heavy Nasdaq Composite edged up 0.3 percent.
European stocks closed higher on Friday as German inflation fell to its lowest level in more than three years and traders looked ahead to highly anticipated fiscal stimulus from China.
The pan European STOXX 600 advanced 0.6 percent. The German DAX gained 0.9 percent, France's CAC 40 rose half a percent and the U.K.'s FTSE 100 inched up 0.2 percent.
Sensex, Nifty Open Higher On Firm Global Cues
(RTTNews) - Indian shares opened on a positive note Monday, tracking mostly firm cues from global markets.
The benchmark SP/BSE Sensex was up 456 points, 0.6 percent, at 81,837 in early trade while the broader NSE Nifty index was up 137 points, or 0.6 percent, at 25,101.
Among the prominent gainers, HDFC Bank, Larsen Toubro, JSW Steel, BPCL and Shriram Finance all rose around 2 percent.
Wipro gained nearly 2 percent ahead of a board meet on Oct. 17 to consider a bonus issue.
Reliance Industries rose about half a percent ahead of its earnings release.
Hathway Cable Datacom rallied 3.3 percent after reporting its quarterly results.
Ashoka Buildcon surged 5.4 percent on winning new orders worth Rs. 2,310 crores from the Maharashtra State Road Development Corporation.
JSW Energy added 1 percent after signing an energy storage facility agreement with Maharashtra State Electricity Distribution Company for 1,500 MW/12,000 MWh pumped hydro energy storage.
PNC Infratech climbed 4.4 percent on winning a Rs 2,039.61-crore contract from CIDCO for infrastructure development.
Sensex, Nifty Follow Global Peers Higher; IT Stocks Lead Gains
(RTTNews) - Indian shares rose notably on Monday after major U.S. indexes reached record closing highs on Friday, buoyed by strong earnings results from the likes of JPMorgan Chase and Wells Fargo, and a benign producer price inflation reading.
A sharp drop in oil prices also boosted sentiment after China reported disappointing inflation and trade balance figures and made a stimulus announcement over the weekend that failed to inspire confidence among investors.
The benchmark 30-share BSE Sensex surged 591.69 points, or 0.73 percent, to 81,973.05 while the broader NSE Nifty index ended up 163.70 points, or 0.66 percent, at 25,127.95.
Wipro topped the gainers list to end 4.2 percent higher at Rs. 550.70 after the company proposed to consider a bonus issue.
Larsen Toubro, HDFC Bank, HDFC Life and Tech Mahindra rallied 2-3 percent while Adani Enterprises, Bajaj Finance, Tata Steel, Maruti Suzuki India and ONGC dropped 1-2 percent.
Swiss Franc Declines Against Majors
(RTTNews) - The Swiss franc fell against its major counterparts in the New York session on Monday, as U.S. stocks rose amid optimism about the outlook for interest rates following last Friday's report on producer price inflation.
The Labor Department report showed producer prices were unexpectedly unchanged in September, while the annual rate price growth slowed modestly.
While hopes the Federal Reserve 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.
Data from the Federal Statistical Office showed that Switzerland's producer and import prices continued to decline in September.
Producer and import prices dropped 1.3 percent year-on-year in September, slightly faster than the 1.2 percent decline in August. Prices have been falling since May 2023.
The producer price index dropped 0.2 percent annually in September, and import prices registered a decrease of 3.5 percent.
The franc dropped to 1-week lows of 1.1276 against the pound and 0.9427 against the euro, off its early highs of 1.1194 and 0.9370, respectively. The currency is seen finding support around 1.14 against the pound and 0.98 against the euro.
The franc touched near a 2-month low of 0.8641 against the greenback. The currency may challenge support around the 0.89 level.
The franc reached as low as 173.42 against the yen. If the currency falls further, it is likely to test support around the 167.00 region.
Australian Market Significantly Higher
(RTTNews) - 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 62.80 points or 0.76 percent to 8,315.60, after touching an all-time high of 8,314.60 earlier. The broader All Ordinaries Index is up 62.70 points or 0.74 percent to 8,592.20. 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.
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.
SpaceX Catches Returning Starship Rocket Booster With Chopstick Arms
(RTTNews) - Elon Musk's spacecraft maker SpaceX, in its fifth Starship test flight, made history on Sunday after returning the first stage booster back to its launch pad in Texas, where it was caught using mechanical arms called Mechazilla. The move is expected to boost the company's efforts to build a reusable moon and Mars vehicle.
Responding to the success of the catch-landing method in its first try, Musk in his post on X platform said, "The tower has caught the rocket!!"
In the test flight of Starship megarocket, the rocket's first stage Super Heavy booster lifted off at 7:25 a.m. CT from SpaceX's Boca Chica, Texas launch facilities. The Starship's second stage rocket was moved toward space, and the booster got separated at an altitude of around 70 km and returned back, as targeted to the tower.
SpaceX, in a statement, noted that following a successful liftoff, ascent, stage separation, boostback burn, and coast, the Super Heavy booster performed its landing burn and was caught by the chopstick arms of the launch and catch tower at Starbase.
The live webcast of the launch was carried on SpaceX's website and its X account.
The milestone moment was also greeted with loud applause from SpaceX engineers, who were watching the company's live stream.
SpaceX added that prior to the catch, Starship executed another successful hot-staging separation, igniting its six Raptor engines and completing ascent into outer space. It coasted along its planned trajectory to the other side of the planet.
The rocket then executed a controlled re-entry, passing through the phases of peak heating and maximum aerodynamic pressure, before executing a flip, landing burn, and splashdown at its target area in the Indian Ocean.
During Starship's previous test flight in June, SpaceX had achieved its first successful splashdown in the Indian Ocean.
SpaceX, which also provides Starlink satellite internet services across the world, has been in the development to build a fully reusable rocket that could move huge cargo into orbit, and transport humans to the moon and eventually to Mars, which is Musk's ultimate destination where he plans to build a colony.
SpaceX now said, "The world witnessed what the future will look like when Starship starts carrying crew and cargo to destinations on Earth, the Moon, Mars and beyond."
Swiss Market Ends On Bright Note
(RTTNews) - The Switzerland market ended on a bright note on Monday with stocks holding early gains thanks to sustained buying right through the day's session. Investors digested the nation's producer price inflation data and looked ahead to the European Central Bank's monetary policy announcement.
The SMI closed up 105.04 points or 0.86% at 12,259.23, after scaling a low of 12,176.38 and a high of 12,266.58 intraday.
VAT Group gained a little over 3% and Lonza Group ended almost 3% up. Logitech International climbed 2.62% and UBS Group ended up 2.05%.
Givaudan ended higher by 1.67%, while Swiss Re, ABB and Sandoz Group gained 1.3 to 1.5%. SGS, Partners Group, Holcim, Kuehne + Nagel, Sonova, Alcon and Novartis ended up 0.8 to 1.2%.
Sika, Swiss Life Holding, Swisscom, Schindler Ps, Julius Baer, Straumann Holding, Zurich Insurance Group and Geberit also closed on a firm note.
Swatch Group ended nearly 2.5% down. SIG Group closed down 0.93% and Richemont ended 0.42% down.
Shares of industrial fastening and assembly technology company Bossard plunged more than 8% following a year-over-year drop in third-quarter group net sales to 240.4 million francs from 249.8 million francs. The company also anticipates sales in the fourth quarter to remain subdued.
Data from the Federal Statistical Office showed Switzerland's producer and import prices continued to decline in September, falling by 1.3% year-on-year, slightly faster than the 1.2% decline in August. Prices have been falling since May 2023.
The producer price index dropped 0.2% annually in September, and import prices registered a decrease of 3.5%.
On a monthly basis, producer and import prices edged down 0.1% in September versus a 0.2% rise in August. The monthly decrease was driven by lower prices for mineral oil products.
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.
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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.
