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Sensex, Nifty Open Lower With Earnings In Focus
(RTTNews) - Indian shares opened lower on Monday despite positive cues from global markets.
The benchmark SP/BSE Sensex was down 290 points, or 0.4 percent, at 80,936 in early trade while the broader NSE Nifty index was down 140 points, or 0.6 percent, at 24,713.
HDFC Bank rallied 2.6 percent on posting a modest 5 percent rise in Q2 net profit, beating Street estimates.
Tech Mahindra climbed 2.5 percent as quarterly profit jumped 153 percent year-on-year.
Kotak Mahindra Bank slumped 4.5 percent after Q2 profit came in slightly below estimates.
UltraTech Cement dropped 1 percent ahead of its earnings release.
Manappuram Finance plunged 4.2 percent after the Reserve Bank of India asked its subsidiary Asirvad Micro Finance to stop sanctions and disbursals of loans.
Reliance infrastructure was slightly lower after receiving shareholder approval for a Rs. 6,000-crore fundraising plan.
Bay Street Likely To Open Higher On Firm Commodity Prices
(RTTNews) - The Canadian market may open higher Monday morning as some strong buying is likely in energy and materials sectors thanks to rising oil and metal prices.
However, the mood is likely to remain cautious amid persisting worries about tensions in the Middle East.
The Bank of Canada's interest rate decision is due on Wednesday. The central bank is widely expected to reduce its key policy rate by 50 basis points, marking its fourth cut in a row.
The Canadian market climbed to a new record high on Friday, rising for a third straight day, thanks to strong gains in materials stocks as metal prices surged to record highs. Continued optimism about interest rate cuts by the Bank of Canada also aided sentiment.
The benchmark SP/TSX Composite Index, which marched to a new intra-day high at 24,850.15, settled with a gain of 132.06 points or 0.53% at 24,822.54, a new closing high. The index gained nearly 1.5% in the week.
Asian stocks turned in a mixed performance on Monday as China's central bank once again cut interest rates and the country's banks slashed borrowing costs to combat the country's stubborn economic slump.
Uncertainty over wars in the Middle East and Europe, and uncertainty around the U.S. presidential election weighed on stocks. Israel opened up a fresh military assault on Hezbollah's strongholds in Lebanon, a day after a drone exploded next to Prime Minister Benjamin Netanyahu's private home.
Israel has already vowed to retaliate against Iran for a missile attack at the start of October.
European stocks are notably lower in cautious trade as investors look for directional cues.
ECB policymaker Gediminas Simkus said today that rates could get lower than the natural level between 2% and 3%, if a fall in inflation becomes entrenched.
In commodities, West Texas Intermediate crude oil futures are up $1.48 or 2.14% at $70.70 a barrel.
Gold futures are gaining $19.10 or 0.7% at $2,749.10 an ounce, while Silver futures are up $0.961 or 2.89% at $34.195 an ounce.
U.S. Dollar Strengthens As Trump Leads In Polls
(RTTNews) - The U.S. dollar firmed against its major counterparts in the New York session on Monday, amid rising odds of former President Donald Trump winning the November election.
Recent polls indicated Trump leading US Vice President and Democratic candidate Kamala Harris in key battleground states.
Expectations that the Federal Reserve will deliver smaller rate cuts also boosted the dollar.
Dallas Fed President Logan said that she supported gradual rate cuts to help manage the risks and accomplish the goals.
On the economic front, flash PMI numbers on the U.S. manufacturing and the services sectors, durable goods orders, housing market data, the Federal Reserve's Beige Book on regional economic activity and speeches by several Fed officials may influence investor sentiment.
The greenback touched 1.2978 against the pound, setting a 4-day high. If the greenback rises further, it is likely to test resistance around the 1.26 region.
The greenback rose to a 4-day high of 1.0819 against the euro and a 2-1/2-month high of 150.49 against the yen, from an early 4-day low of 1.0871 and a 5-day low of 149.08, respectively. The currency is poised to challenge resistance around 1.06 against the euro and 152.00 against the yen.
The greenback recovered to 0.8660 against the franc, from an early 4-day low of 0.8633. The currency is likely to locate resistance around the 0.90 level.
The greenback advanced to 1.3849 against the loonie, its highest level since August 6. Immediate resistance for the currency is seen around the 1.40 level.
The greenback firmed to near a 6-week high of 0.6654 against the aussie and more than a 2-month high of 0.6028 against the kiwi, from an early 6-day low of 0.6723 and a 5-day low of 0.6084, respectively. The next possible resistance for the greenback is seen around 0.64 against the aussie and 0.58 against the kiwi.
New Zealand Trade Data Due On Tuesday
(RTTNews) - New Zealand will on Tuesday release September figures for imports, exports and trade balance, highlighting a light day for Asia-Pacific economic activity.
South Korea will see September numbers for producer prices; in August, producer prices were down 0.1 percent on month and up 1.6 percent on year.
Hong Kong will provide September data for consumer prices; in August, overall inflation was flat on month and up 2.5 percent on year.
Dollar Rises Against Major Counterparts
(RTTNews) - The U.S. traded firm against its major counterparts on Monday after recent pools indicated a victory for former President Donald Trump in the upcoming Presidential election.
According to recent polls, Trump was leading Vice President and Democratic candidate Kamala Harris in some key battleground states.
The also found some support on bets the Federal Reserve will not be aggressive with regard to rate cuts. Dallas Fed President Logan said that she supported gradual rate cuts to help manage the risks and accomplish the goals.
The Conference Board released a report today showing its reading on leading U.S. economic indicators fell by more than expected in the month of September.
The report said the leading economic index slid by 0.5% in September after falling by a revised 0.3% in August.
Economists had expected the leading economic index to decrease by 0.3% compared to the 0.2% dip originally reported for the previous month.
Investors are looking ahead to flat PMI reading on activities in U.S. manufacturing and the services sectors, a slew of speeches from Fed officials this week.
The dollar index climbed to 104.02 gaining about 0.5%.
Against the Euro, the dollar firmed to 1.0818 from 1.0869. Against Pound Sterling, the dollar strengthened to 1.2985 from 1.3051.
The Japanese currency Yen weakened to 150.78 against the dollar. The Aussie eased to US$0.6659 a unit, from US$0.6659.
The dollar firmed against Swiss franc, fetching CHF 0.8660 a unit, and strengthened the Loonie as well, trading at C$ 1.3833 a unit.
ECB's Kazaks Says Falling Inflation, Weak Economy Allow For Lowering Rates Further
(RTTNews) - Eurozone inflation rates continue to fall and growth in the single currency economy remains sluggish, thus allowing for a gradual reduction in interest rates, European Central Bank Governing Council member Martins Kazaks said on Monday.
The ECB has lowered interest rates thrice this year, the latest being the 25 basis points cut this month, and is widely expected to announce another reduction in December as policymakers grow increasingly worried over the euro area growth.
Household consumption in the euro area has so far been weaker than expected and is one of the main reasons for the sluggish economy, Kazaks, who is the chief of the Bank of Latvia, said in a blog.
"Risks to growth remain on the downside," Kazaks said. "If the recovery is delayed, this could lead to layoffs (as it becomes too expensive to keep workers), risking inflation to be driven significantly below target."
Despite this risk, the ECB continues to look for a "soft landing" without a rapid rise in unemployment and recession, Kazaks said, echoing remarks made by ECB President Christine Lagarde last week.
Kazaks said ECB rates will continue to decrease as inflation is on a sustainable path of return to the 2 percent target.
Elsewhere, the Bank of Lithuania chief Gediminas Simkus also signaled on Monday that the future direction for ECB rates is lower.
Meanwhile, the Slovakia central bank governor Peter Kazimir was hesitant to give a clear signal on easing in December, saying he wanted more evidence of an accelerating pace of disinflation.
"All options remain on the table," Kazimir said in a blog, with regard to the ECB decision in December.
European Stocks Close Lower After Cautious Session
(RTTNews) - European stocks closed lower on Monday as a lack of significant triggers, and rising tensions in the Middle East and uncertainty over the outcome of the upcoming U.S. presidential election rendered the mood cautious.
The pan European Stoxx 600 dropped 0.66%. The U.K.'s FTSE 100 ended down 0.48%, while Germany's DAX and France's CAC 40 lost 1% and 1.01%, respectively. Switzerland's SMI closed down 0.53%.
Among other markets in Europe, Austria, Belgium, Finland, Greece, Ireland, Netherlands, Poland, Portugal, Spain, Sweden and Turkiye closed weak.
Iceland, Norway and Russia ended higher, while Denmark closed flat.
In the UK market, Intertek Group ended nearly 4% down. Entain, Easyjet, Prudential, Pershing Square Holdings and Airtel Africa closed down 2.3 to 2.7%. Spirax Group, DCC, Frasers Group, Admiral Group, Persimmon, Convatec Group, Weir Group, IMI and Taylor Wimpey also ended notably lower.
Fresnillo rallied 6.3%. Smith (DS) gained about 2.4%. BP, Endeavour Mining and Reckitt Benckiser advanced 1 to 1.3%.
In the German market, Sartorius tumbled nearly 5%. Munich RE ended lower by about 3% after Jefferies cut its rating on the stock.
Vonovia, Infineon, Adidas, Beiersdorf, Merck, Hannover Rueck, Commerzbank, Brenntag, Deutsche Telekom, Qiagen, Henkel and Bayer lost 1 to 3%.
Fresenius Medical Care climbed nearly 4%. Fresenius, Puma, Rheinmetall and Porsche posted moderate gains.
In the French market, Eurofins Scientific ended down 4.7%. L'Oreal, STMicroElectronics, Kering, Stellantis, LVMH, Michelin, Capgemini, Vinci, Unibail Rodamco, ArcelorMittal, Pernod Ricard, Teleperformance, Edenred, Veolia, Bouygues, Hermes International, Publicis Groupe and AXA closed lower by 1 to 2.5%.
In economic news, Germany's producer prices declined at a faster pace in September due to the sharp fall in energy prices, data from Destatis showed. Producer prices dropped 1.4% on a yearly basis, following a 0.8% fall in August and July.
UK house prices increased at a below seasonal average pace in October due to the rise in buyer choice and increasing seller competition, property website Rightmove said. House prices grew 0.3% month-on-month in October, which was much lower than the average seasonal 1.3% increase at this time of year. Prices had increased 0.8% in September.
Eurozone inflation rates continue to fall and growth in the single currency economy remains sluggish, thus allowing for a gradual reduction in interest rates, European Central Bank Governing Council member Martins Kazaks said today.
The ECB has lowered interest rates thrice this year, the latest being the 25 basis points cut this month, and is widely expected to announce another reduction in December as policymakers grow increasingly worried over the euro area growth.
Household consumption in the euro area has so far been weaker than expected and is one of the main reasons for the sluggish economy, Kazaks, who is the chief of the Bank of Latvia, said in a blog. "Risks to growth remain on the downside," Kazaks said. "If the recovery is delayed, this could lead to layoffs (as it becomes too expensive to keep workers), risking inflation to be driven significantly below target."
Despite this risk, the ECB continues to look for a "soft landing" without a rapid rise in unemployment and recession, Kazaks said, echoing remarks made by ECB President Christine Lagarde last week.
The European Central Bank could cut interest rates further if inflation continues to slow and the economy remains sluggish, Governing Council member Gediminas Simkus said today, but he refrained from predicting the December move.
Swiss Market Ends Moderately Lower
(RTTNews) - The Switzerland market recovered and moved into positive territory after a weak start Monday morning, but retreated soon and spent the rest of the day's session in negative territory.
The benchmark SMI, which advanced to 12,355.26, ended the session with a loss of 64.89 points or 0.53% at 12,261.87, about 10 points off the day's low of 12,251.99.
SGS and VAT Group ended down by about 2.3% and 2.2%, respectively. UBS Group shares ended down 1.55% after the lender agreed to sell Credit Suisse's 50% interest in credit card company Swisscard to joint venture partner American Express for undisclosed terms.
Swiss Re, Kuehne + Nagel, Lonza Group, UBS Group, Lindt Spruengli, Straumann Holding, Givaudan, Geberit, Adecco and Sika lost 1 to 2%.
Shares of biopharmaceutical company Relief Therapeutics soared nearly 16% after an announcement that the firm has received a notice of allowance from the European Patent Office for its proprietary hypochlorous acid solutions.
Sandoz Group climbed 4.62%. Swatch Group gained about 1.25%, while Logitech International and Nestle gained 0.87% and 0.44%, respectively.
U.S. Leading Economic Index Falls More Than Expected In September
(RTTNews) - The Conference Board released a report on Monday showing its reading on leading U.S. economic indicators fell by more than expected in the month of September.
The report said the leading economic index slid by 0.5 percent in September after falling by a revised 0.3 percent in August.
Economists had expected the leading economic index to decrease by 0.3 percent compared to the 0.2 percent dip originally reported for the previous month.
Over the six-month period between March and September, the index tumbled by 2.6 percent compared to the 2.2 percent slump over the previous six-month period, the Conference Board said.
"Weakness in factory new orders continued to be a major drag on the US LEI in September as the global manufacturing slump persists," said Justyna Zabinska-La Monica, Senior Manager, Business Cycle Indicators, at The Conference Board. "Additionally, the yield curve remained inverted, building permits declined, and consumers' outlook for future business conditions was tepid."
She added, "Overall, the LEI continued to signal uncertainty for economic activity ahead and is consistent with The Conference Board expectation for moderate growth at the close of 2024 and into early 2025."
The Conference Board said the lagging economic index also fell by 0.3 percent in September after coming in unchanged in August.
Meanwhile, the coincident economic index inched up by 0.1 percent in September after rising by a downwardly revised 0.2 percent in August.
Canadian Market Moderately Lower In Cautious Trade
(RTTNews) - The Canadian market, which fell after a slightly positive start and a subsequent rise to a new record high Monday morning, continues to languish in negative territory in cautious trade and looks headed for a weak close.
Technology, real estate and financial shares are among the notable losers. Energy and materials stocks are finding some support thanks to higher commodity prices.
The mood remains cautious due to a lack of significant triggers. Investors are awaiting the Bank of Canada's policy announcement on Wednesday. The Canadian central bank is widely expected to lower interest rates by 50 basis points.
The benchmark SP/TSX Composite Index, which climbed to a new record high of 24,922.22 this morning, was down 123.17 points or 0.5% at 24,669.37 a little while ago.
Goeasy (GSY.TO) is declining 4.6%. Magna International (MG.TO) is down 3.7% and Teck Resources (TECK.A.TO) is lower by nearly 3%.
Cargojet (CJT.TO), BRP Inc (DOO.TO), Stella-Jones (SJ.TO), Morguard Corporation (MRC.TO), EQB Inc (EQB.TO), Bank of Montreal (BMO.TO), Loblaw Companies (L.TO), West Fraser Timber (WFG.TO), Constellation Software (CSU.TO) are down 1 to 2.5%.
Among the gainers, RB Global Inc (RBA.TO) is up more than 6%. Hut 8 Corp (HUT.TO), Brookfield Renewable Corporation (BEPC.TO) and MAG Silver Corp (MAG.TO) are gaining 4.7 to 5%.
Restaurant Brands International (QSR.TO), Bombardier Inc (BBD.A.TO), Atkins Realis Group (ATRL.TO), Stantec (STN.TO), Franco-Nevada Corporation (FNV.TO) and Wheaton Precious Metals (WPM.TO) are up 1 to 3%.
ECB's Kazimir Says All Options Remain On Table For December
(RTTNews) - The European Central Bank could have waited till December to lower interest rates, but the economic data since the September policy session signaled a shift in risks to inflation to the downside, and thus policymakers opted for a rate cut this month, Governing Council member Peter Kazimir said on Monday.
"It's an insurance cut and confidence boost, not a declaration of victory," Kazimir, who is the governor of the National Bank of Slovakia, said in a blog post.
Kazimir, who is among the conservative policymakers on the ECB's rate-setting body, said he would have been comfortable waiting till December and not cutting rates in October.
He expressed increasing confidence that the disinflation path is on solid footing. "But the doubting Thomas in me still needs to see further proof of a sustainable return to target," Kazimir said.
"Our decision to lower rates in October leaves the December meeting wide open," the policymaker said. "All options remain on the table."
Fellow ECB policymakers like the Bank of Lithuania governor Gediminas Simkus and the Bank of Latvia chief Martins Kazaks signaled the scope for lowering interest rates further in separate instances on Monday.
ECB rate-setters will be equipped with the latest set of staff macroeconomic projections and a lot more economic data by December to help in deciding the next move.
The central bank for the single currency economy has already cut interest rates thrice, the latest being the 25 basis points reduction last week that was mainly due to increasing concerns over the sluggish growth in Eurozone.
Such worries are unlikely to go away by the end of the year, as suggested by some of the recent surveys and hence, the ECB is widely expected to lower rates again in December.
Kazimir pointed out that survey data signal slowing employment growth, joining the league of ECB policymakers like Bank of Portugal governor Mario Centeno who has already voiced concern over the softening labor market.
"If new data and forecasts confirm an accelerated pace in disinflation, we will be in a strong and comfortable position to continue the easing cycle," Kazimir said.
Citing the expected decline in wage growth and services inflation, the rate-setter said he is looking for more "evident signs of this materializing" before declaring victory over inflation.
He also pointed out that the highly tense geopolitical environment now also poses a significant threat to inflation.
"If new information points in the direction of higher inflation (risks), we can still slow down the pace at which we remove restrictions in the coming meetings," Kazimir wrote. "Even with three cuts delivered, we still remain in restrictive territory."
European Shares Set To Open Mostly Higher
(RTTNews) - European stocks are seen opening mostly higher on Tuesday, even as a cautious undertone may prevail as investors await cues from the latest batch of earnings and speeches by Federal Reserve officials.
3M, Comcast, General Motors, Lockheed Martin and Verizon are among the prominent U.S. companies due to report their quarterly results before the U.S. opening bell.
EV maker Tesla, Boeing, Coca-Cola, IBM Corp and United Parcel Service are among the other companies that will report their quarterly results this week.
Outside of earnings, reports on durable goods orders, new and existing home sales, the Federal Reserve's Beige Book, weekly jobless claims figures and the final reading of consumer sentiment from the University of Michigan will be on top of mind for investors.
Asian stocks were deep in the red due to concerns stemming from geopolitical tensions, the approaching U.S. presidential election and uncertainty over the Fed rate path.
Chinese and Hong Kong markets bucked the weak trend and were seeing marginal gains after the People's Bank of China conducted its first operation of the Securities, Funds, and Insurance Companies Swap Facility (SFISF), boosting liquidity for financial institutions.
The dollar held steady near recent highs after bond yields surged on cooling expectations of Federal Reserve rate cuts. Gold continued its record winning streak despite elevated U.S. bond yields.
Oil prices were moving lower in Asian trading after climbing almost 2 percent on Monday.
U.S. Secretary of State Antony Blinken has arrived in Israel to revive Gaza ceasefire talks following the death of Hamas leader Yahya Sinwar, but any breakthrough looks elusive.
Israel is accelerating military operations to push Hezbollah away from its northern border while thrusting into Gaza's densely packed Jabalia refugee camp in an attempt to seal off northern Gaza from the rest of the enclave.
U.S. stocks ended mostly lower overnight as bond yields jumped and investors geared up for key earnings. In economic news, data showed the leading economic index fell more than expected in September.
The 10- and 30-year Treasury yields hit almost three-month closing highs on growing worries about the prospects of a rising U.S. deficit and fears about higher-for-longer interest rates.
The Dow gave up 0.8 percent to log its biggest fall in two weeks and snap a three-session winning streak. The SP 500 slid 0.2 percent while the tech-heavy Nasdaq Composite edged up 0.3 percent.
European stocks closed lower on Monday, with earnings, Middle East tensions and the looming U.S. presidential election garnering investor attention.
The pan European STOXX 600 dropped 0.7 percent. The German DAX and France's CAC 40 both fell around 1 percent while the U.K.'s FTSE 100 dipped half a percent.
Thai Stock Market May Take Further Damage On Tuesday
(RTTNews) - The Thai stock market has tracked lower in two straight sessions, slipping more than 6 points or 0.4 percent along the way. The Stock Exchange of Thailand now sits just shy of the 1,490-point plateau and it's looking at another soft start again on Tuesday.
The global forecast for the Asian markets is negative with profit taking likely for many of the regions. The European and U.S. markets were mostly lower and the Asian bourses figure to follow that lead.
The SET finished slightly lower on Monday as losses from the industrials, technology stocks and properties were offset by support from the resource and financial sectors.
For the day, the index eased 1.08 points or 0.07 percent to finish at 1,488.74 after trading between 1,482.75 and 1,494.67. Volume was 9.827 billion shares worth 41.652 billion baht. There were 265 decliners and 207 gainers, with 191 stocks finishing unchanged.
Among the actives, Advanced Info improved 0.71 percent, while Thailand Airport was down 0.39 percent, Asset World slid 0.53 percent, Bangkok Bank fell 0.32 percent, Bangkok Dusit Medical jumped 1.72 percent, Bangkok Expressway increased 0.61 percent, BTS Group rallied 0.88 percent, CP All Public slumped 0.74 percent, Charoen Pokphand Foods advanced 0.97 percent, Energy Absolute declined 1.79 percent, Gulf added 0.73 percent, Kasikornbank dropped 0.99 percent, Krung Thai Bank lost 0.47 percent, PTT Oil Retail sank 0.60 percent, PTT gained 0.74 percent, PTT Exploration and Production dipped 0.39 percent, PTT Global Chemical skidded 0.98 percent, Siam Commercial Bank soared 3.64 percent, Siam Concrete shed 0.47 percent, Thai Oil tanked 2.62 percent, True Corporation retreated 1.68 percent, TTB Bank collected 0.55 percent and Krung Thai Card, SCG Packaging, Banpu and B. Grimm were unchanged.
The lead from Wall Street is mixed to soft as the major averages opened lower on Monday and largely stayed that way, although the NASDAQ broke into the green late in the day.
The Dow stumbled 344.25 points or 0.80 percent to finish at 42,931.25, while the NASDAQ gained 50.45 points or 0.27 percent to close at 18,540.01 and the SP 500 fell 10.69 points or 0.18 percent to end at 5,853.98.
The mixed performance on Wall Street came as profit taking brought the Dow down from a record closing high, while tech shares boosted the NASDAQ to a three-month closing high.
Overall trading activity was relatively subdued as traders looked ahead to the release of a slew of corporate earnings news from big-name companies later this week.
In economic news, the Conference Board said its reading on leading U.S. economic indicators fell by more than expected in the month of September.
Oil prices moved higher on Monday on possible disruptions in supplies due to escalating tensions in the Middle East. West Texas Intermediate Crude oil futures for November ended up by $1.34 or 1.94 percent at $70.56 a barrel.
Asian Markets Trade Mostly Lower
(RTTNews) - Asian stock markets are trading mostly lower on Tuesday, following the mixed cues from Wall Street overnight, as bond yields surged on cooling expectations on US Fed interest rate cuts. Traders also booked some profits after the recent up surge in the markets. The uncertainty over wars in the Middle East and Europe as well as the U.S. presidential election is weighing on market sentiment. Asian markets closed mixed on Monday.
After the Fed slashed interest rates by 50 basis points last month, CME Group's FedWatch Tool is currently indicating an 87.0 chance of just a 25 basis point rate cut next month. Dallas Fed President Lorie Logan said that she supported gradual rate cuts to help manage the risks and accomplish the goals.
Reversing the gains in the previous session, the Australian stock market is trading sharply lower on Tuesday, following the mixed cues from Wall Street overnight. The benchmark SP/ASX 200 is falling well below the 8,300 level, with weakness across most sectors led by energy and technology stocks. Gold miner stocks were the only bright spot.
The benchmark SP/ASX 200 Index is losing 114.00 points or 1.37 percent to 8,230.40, after hitting a low of 8,215.10 earlier. The broader All Ordinaries Index is down 109.20 points or 1.27 percent to 8,494.90. Australian stocks closed notably higher on Monday.
Among the major miners, BHP Group is losing almost 1 percent and Mineral Resources is slipping almost 5 percent, while Rio Tinto and Fortescue Metals are declining more than 1 percent each.
Oil stocks are mostly lower. Origin Energy is losing almost 2 percent each, while Woodside Energy and Santos are down almost 1 percent each. Beach energy is edging up 0.4 percent.
Among tech stocks, Zip is losing more than 2 percent, WiseTech Global is declining almost 3 percent, Afterpay owner Block is edging down 0.5 percent, Xero is down more than 1 percent and Appen is slipping almost 2 percent.
Gold miners are mostly higher. Gold Road Resources and Resolute Mining are gaining almost 1 percent each, while Newmont and Northern Star resources are edging up 0.2 to 0.3 percent each. Evolution Mining is down almost 1 percent.
Among the big four banks, Commonwealth Bank, Westpac and National Australia Bank are losing more than 1 percent each, while ANZ Banking is declining almost 1 percent.
In other news, shares in Audinate Group sank more than 9 percent after the software maker warned it will not meet its full-year gross profit target, saying "headwinds" are expected to continue into Q2.
In the currency market, the Aussie dollar is trading at $0.667 on Tuesday.
The Japanese stock market is sharply lower on Tuesday, adding to the slight losses in the previous session, with the Nikkei 225 falling to a tad below the 38,400 level, following the mixed cues from Wall Street overnight, with weakness across most sectors led by index heavyweights and technology stocks.
The benchmark Nikkei 225 Index closed the morning session at 38,399.47, down 555.13 points or 1.43 percent, after hitting a low of 38,200.82 earlier. Japanese shares ended slightly lower on Monday.
Market heavyweight SoftBank Group is losing almost 2 percent and Uniqlo operator Fast Retailing is declining more than 2 percent. Among automakers, Honda is losing almost 1 percent, while Toyota is edging up 0.3 percent.
In the tech space, Advantest is losing almost 2 percent, Screen Holdings is declining 1.5 percent and Tokyo Electron is slipping more than 2 percent.
In the banking sector, Mitsubishi UFJ Financial, Sumitomo Mitsui Financial and Mizuho Financial are losing more than 1 percent each.
The major exporters are mostly lower. Mitsubishi Electric is losing more than 2 percent, Panasonic is declining more than 1 percent and Sony is down almost 1 percent, while Canon is edging up 0.3 percent.
Among the other major losers, M3 is losing more than 4 percent and Ebara is slipping almost 4 percent, while Ryohin Keikaku and Toto are slipping more than 3 percent each. Minebea Mitsumi, Mercari, Tokyo Tatemono, Socionext, Mitsubishi Electric, Renesas Electronics and Keisei Electric Railway are declining almost 3 percent each.
Conversely, there are no other major gainers.
In the currency market, the U.S. dollar is trading in the higher 150 yen-range on Tuesday.
Elsewhere in Asia, South Korea is down 1.0 percent, while New Zealand, Singapore, Taiwan and Indonesia are lower by between 0.1 and 0.6 percent each. China, Hong Kong and Malaysia are higher by between 0.1 and 0.5 percent each.
On Wall Street, stocks turned in a mixed performance during trading on Monday following recent strength on Wall Street. While the Dow showed a notable pullback, the tech-heavy Nasdaq managed to end the day in positive territory.
The Dow slid 344.31 points or 0.8 percent to 42,931.60 and the SP 500 dipped 10.69 points or 0.2 percent to 5,853.98, but the Nasdaq rose 50.45 points or 0.3 percent to 18,540.01.
Meanwhile, the major European markets have all moved to the downside on the day. While the U.K.'s FTSE 100 Index fell by 0.5 percent, the German DAX Index and the French CAC 40 Index both slumped by 1.0 percent.
Crude oil prices moved higher on Monday on possible disruptions in supplies due to escalating tensions in the Middle East. West Texas Intermediate Crude oil futures for November ended up by $1.34 or 1.94 percent at $70.56 a barrel.
TSX Turns Weak After Hitting New High, Ends 0.4% Down
(RTTNews) - The Canadian market rose to a new record high Monday morning, but retreated soon and stayed weak right through the session as investors turned cautious ahead of earnings updates and some key economic events, including the Bank of Canada's monetary policy meeting due this week.
The Canadian central bank is widely expected to reduce its key policy rate by 50 basis points, marking its fourth cut in a row.
The benchmark SP/TSX Composite Index, which hit a new record high at 24,922.92 in early trades, ended the session with a loss of 99.21 points or 0.4% at 24,723.33.
Real estate, utilities, technology and consumer staples shares were among the notable losers. Energy and materials stocks found some support as commodity prices rose.
Magna International (MG.TO), goeasy (GSY.TO), Teck Resources (TECK.A.TO), BRP Inc (DOO.TO), Cargojet (CJT.TO) and Stella-Jones (SJ.TO) ended lower by 2 to 3.6%.
Loblaw Companies (L.TO), Morguard Corporation (MRC.TO), TFI International (TFII.TO), West Fraser Timber (WFG.TO), Constellation Software (CSU.TO), CGI Inc (GIB.A.TO), Dollarama Inc (DOL.TO) and George Weston (WN.TO) lost 1 to 2%.
RB Global (RBA.TO) climbed 6.6%. Hut 8 Corp (HUT.TO) ended nearly 6% up. Brookfield Renewable Corporation (BEPC.TO) and MAG Silver Corp (MAG.TO) gained about 5% and 4.7%, respectively.
Restaurant Brands International (QSR.TO), Seabridge Gold (SEA.TO), Bombardier Inc (BBD.B.TO), AtkinsRealis Group (ATRL.TO) and Ag Growth International (AFN.TO) were among the other major gainers in the session.
Europe New Car Registrations Fall For Second Month: ACEA
(RTTNews) - Europe's new car registrations declined for the second straight month in September due to the fall in sales across France, Germany and Italy, data published by the European Automobile Manufacturers' Association, or ACEA, showed Tuesday.
New car sales decreased 6.1 percent in September from a year ago. However, this was much slower than the 18.3 percent fall posted in August. This was the second consecutive decrease.
There were negative results across three of the four major markets in September. Sales in France plunged 11.1 percent and that in Italy decreased 10.7 percent. The German market was down 7.0 percent. By contrast, Spain posted a robust 6.3 percent expansion.
Battery-electric cars that accounted for 17.3 percent of the EU car market showed that sales volume rose 9.8 percent.
Meanwhile, plug-in hybrid car sales declined by a sizeable 22.3 percent with decreases recorded in all major markets. Plug-in-hybrids accounted for 6.8 percent of the car market.
Hybrid-electric registrations advanced 12.5 percent and its market share improved to 32.8 percent. On the other hand, petrol car sales dropped 17.9 percent and the diesel car market contracted 23.5 percent.
During January to September, new car registrations rose only 0.6 percent and almost hit 8 million units, data showed.
Japanese Market Sharply Lower
(RTTNews) - The Japanese stock market is sharply lower on Tuesday, adding to the slight losses in the previous session, with the Nikkei 225 falling to stay a tad above the 38,400 level, following the mixed cues from Wall Street overnight, with weakness across most sectors led by index heavyweights and technology stocks.
The benchmark Nikkei 225 Index is down 549.66 points or 1.41 percent at 38,404.94, after hitting a low of 38,200.82 earlier. Japanese shares ended slightly lower on Monday.
Market heavyweight SoftBank Group is losing almost 2 percent and Uniqlo operator Fast Retailing is declining more than 2 percent. Among automakers, Honda is losing almost 1 percent, while Toyota is edging up 0.3 percent.
In the tech space, Advantest is losing almost 2 percent, Screen Holdings is declining 1.5 percent and Tokyo Electron is slipping more than 2 percent.
In the banking sector, Mitsubishi UFJ Financial, Sumitomo Mitsui Financial and Mizuho Financial are losing more than 1 percent each.
The major exporters are mostly lower. Mitsubishi Electric is losing more than 2 percent, Panasonic is declining more than 1 percent and Sony is down almost 1 percent, while Canon is edging up 0.3 percent.
Among the other major losers, M3 is losing more than 4 percent and Ebara is slipping almost 4 percent, while Ryohin Keikaku and Toto are slipping more than 3 percent each. Minebea Mitsumi, Mercari, Tokyo Tatemono, Socionext, Mitsubishi Electric, Renesas Electronics and Keisei Electric Railway are declining almost 3 percent each.
Conversely, there are no other major gainers.
In the currency market, the U.S. dollar is trading in the higher 150 yen-range on Tuesday.
On Wall Street, stocks turned in a mixed performance during trading on Monday following recent strength on Wall Street. While the Dow showed a notable pullback, the tech-heavy Nasdaq managed to end the day in positive territory.
The Dow slid 344.31 points or 0.8 percent to 42,931.60 and the SP 500 dipped 10.69 points or 0.2 percent to 5,853.98, but the Nasdaq rose 50.45 points or 0.3 percent to 18,540.01.
Meanwhile, the major European markets have all moved to the downside on the day. While the U.K.'s FTSE 100 Index fell by 0.5 percent, the German DAX Index and the French CAC 40 Index both slumped by 1.0 percent.
Crude oil prices moved higher on Monday on possible disruptions in supplies due to escalating tensions in the Middle East. West Texas Intermediate Crude oil futures for November ended up by $1.34 or 1.94 percent at $70.56 a barrel.
Sensex, Nifty Modestly Higher In Early Trade
(RTTNews) - Indian shares were slightly higher on Tuesday despite weak cues from global markets due to lingering Middle East tensions and uncertainty over the upcoming U.S. presidential election.
The benchmark 30-share BSE Sensex was up 268 points, or 0.3 percent, at 81,419 in early trade while the broader NSE Nifty index was up 70 points, or 0.3 percent, at 24,851.
Financials and IT stocks traded higher, with Wipro, ICICI Bank, Tech Mahindra and Shriram Finance rising 1-2 percent.
Bajaj Housing Finance added 1.7 percent on reporting a 21 percent year-on-year rise in Q2 net profit.
Zomato rose over 1 percent and Bajaj Finance edged up slightly, while Paytm fell 1.3 percent ahead of their earnings results due today.
City Union Bank soared 12 percent on reporting modest growth in quarterly profit.
Cyient DLM slumped 4.5 percent as it reported 6 percent growth in Q2 net profit.
NELCO lost 3.8 percent after consolidated net profit declined nearly 28 percent in the September quarter.
RVNL tumbled 3 percent after establishing a new subsidiary in Saudi Arabia.
Australian Market Sharply Lower
(RTTNews) - Reversing the gains in the previous session, the Australian stock market is trading sharply lower on Tuesday, following the mixed cues from Wall Street overnight. The benchmark SP/ASX 200 is falling well below the 8,300 level, with weakness across most sectors led by energy and technology stocks. Gold miner stocks were the only bright spot.
The benchmark SP/ASX 200 Index is losing 120.00 points or 1.44 percent to 8,224.40, after hitting a low of 8,215.10 earlier. The broader All Ordinaries Index is down 119.80 points or 1.40 percent to 8,484.30. Australian stocks closed notably higher on Monday.
Among the major miners, BHP Group is losing almost 1 percent and Mineral Resources is slipping almost 5 percent, while Rio Tinto and Fortescue Metals are declining more than 1 percent each.
Oil stocks are mostly lower. Origin Energy is losing almost 2 percent each, while Woodside Energy and Santos are down almost 1 percent each. Beach energy is edging up 0.4 percent.
Among tech stocks, Zip is losing more than 2 percent, WiseTech Global is declining almost 3 percent, Afterpay owner Block is edging down 0.5 percent, Xero is down more than 1 percent and Appen is slipping almost 2 percent.
Gold miners are mostly higher. Gold Road Resources and Resolute Mining are gaining almost 1 percent each, while Newmont and Northern Star resources are edging up 0.2 to 0.3 percent each. Evolution Mining is down almost 1 percent.
Among the big four banks, Commonwealth Bank, Westpac and National Australia Bank are losing more than 1 percent each, while ANZ Banking is declining almost 1 percent.
In other news, shares in Audinate Group sank more than 9 percent after the software maker warned it will not meet its full-year gross profit target, saying "headwinds" are expected to continue into Q2.
In the currency market, the Aussie dollar is trading at $0.666 on Tuesday.
On Wall Street, stocks turned in a mixed performance during trading on Monday following recent strength on Wall Street. While the Dow showed a notable pullback, the tech-heavy Nasdaq managed to end the day in positive territory.
The Dow slid 344.31 points or 0.8 percent to 42,931.60 and the SP 500 dipped 10.69 points or 0.2 percent to 5,853.98, but the Nasdaq rose 50.45 points or 0.3 percent to 18,540.01.
Meanwhile, the major European markets have all moved to the downside on the day. While the U.K.'s FTSE 100 Index fell by 0.5 percent, the German DAX Index and the French CAC 40 Index both slumped by 1.0 percent.
Crude oil prices moved higher on Monday on possible disruptions in supplies due to escalating tensions in the Middle East. West Texas Intermediate Crude oil futures for November ended up by $1.34 or 1.94 percent at $70.56 a barrel.
European Economic News Preview: UK Public Sector Finance Data Due
(RTTNews) - Public sector finance data from the UK and new car registrations from Europe are the top economic news due on Tuesday.
At 2.00 am ET, the Office for National Statistics publishes UK public sector finance data. The public sector net borrowing is seen at GBP 17.4 billion in September compared to GBP 13.7 billion in August.
In the meantime, the European Automobile Manufacturers' Association is scheduled to issue Europe new car registrations data for September.
At 4.00 am ET, retail sales data is due from Poland.
At 8.00 am ET, Hungary's central bank announces its monetary policy decision. The bank is expected to hold the benchmark rate at 6.5 percent.
Sensex, Nifty Seen Lower As Bond Yields Surge
(RTTNews) - Indian shares are likely to open lower on Tuesday as investors react to weak global cues and an uptrend in oil prices overnight amid heightened tensions in the Middle East.
In spite of the rising geopolitical tensions, India's growth outlook is supported by robust domestic consumption and investment demand, the October Bulletin from the Reserve Bank said and projected real GDP growth to come in at 7.2 percent for the fiscal 2025.
Benchmark indexes ended Monday's session slightly lower after a choppy session. The rupee ended flat at 84.07 against the dollar.
Asian markets were broadly lower this morning as bond yields surged on cooling expectations of Federal Reserve rate cuts.
The U.S. dollar clung to a two-and-half-month high, and gold held near record levels while oil dipped slightly after climbing almost 2 percent on Monday.
U.S. Secretary of State Antony Blinken has arrived in Israel to revive Gaza ceasefire talks following the death of Hamas leader Yahya Sinwar, but any breakthrough looks elusive.
Israel is accelerating military operations to push Hezbollah away from its northern border while thrusting into Gaza's densely packed Jabalia refugee camp in an attempt to seal off northern Gaza from the rest of the enclave.
U.S. stocks ended mostly lower overnight as bond yields jumped and investors geared up for key earnings. In economic news, data showed the leading economic index fell more than expected in September.
The 10- and 30-year Treasury yields hit almost three-month closing highs on growing worries about the prospects of a rising U.S. deficit and fears about higher-for-longer interest rates.
The Dow gave up 0.8 percent to log its biggest fall in two weeks and snap a three-session winning streak. The SP 500 slid 0.2 percent while the tech-heavy Nasdaq Composite edged up 0.3 percent.
European stocks closed lower on Monday, with earnings, Middle East tensions and the looming U.S. presidential election garnering investor attention.
The pan European STOXX 600 dropped 0.7 percent. The German DAX and France's CAC 40 both fell around 1 percent while the U.K.'s FTSE 100 dipped half a percent.
TSX Recovers From Early Setback, Settles Flat
(RTTNews) - After a weak start and a subsequent drop to lower levels, the Canadian market recovered gradually on Tuesday and eventually settled marginally down. The mood was cautious with investors awaiting the Canadian central bank's interest rate decision on Wednesday.
The benchmark SP/TSX Composite Index ended down 6.63 points or 0.03% at 24,716.70. The index, which dropped to 24,565.21 in early trades, briefly moved into positive territory, rising to 24,724.53 in the closing minutes.
Healthcare and materials stocks moved higher. Consumer discretionary and utilities stocks were a bit weak, while shares from the rest of the sectors turned in a mixed performance.
Healthcare stock Tilray Inc (TLRY.TO) gained about 7.3%. Seabridge Gold (SEA.TO), up 6%, was the biggest gainer in the Materials index. Sandstorm Gold (SSL.TO) climbed 5.7%. Ssr Mining (SSRM.TO), First Majestic Silver (AG.TO), Pan American Silver Corp (PAAS.TO), Triple Flag Precious Metals (TFPM.TO) and Fortuna Silver Mines (FVI.TO) gained 3 to 5%.
Teck Resources (TECK.A.TO), Franco-Nevada Corporation (FNV.TO) and Wheaton Precious Metals (WPM.TO) climbed 2.2 to 2.5%. Agnico Eagle Mines (AEM.TO) gained nearly 1.5%.
Dye Durham (DND.TO) soared 9.5% after the company responded to a media report that its is exploring a sale after receiving takeover interest. The company said in a statement that it has "expanded the scope of its previously commenced strategic review process to consider additional opportunities to enhance shareholder value that may include, but are not limited to, a sale of the company, merger, divestiture of assets, or other strategic transactions."
Kinaxis Inc (KXS.TO), Constellation Software (CSU.TO), George Weston (WN.TO) and TFI International (TFII.TO) posted moderate gains.
goeasy (GSY.TO) ended down 9.4%. BRP Inc (DOO.TO) closed lower by 7.6%. Toromont Industries (TIH.TO), Stantec Inc (STN.TO), Cameco Corporation (CCO.TO), Bombardier Inc (BBD.B.TO) and Shopify Inc (SHOP.TO) also closed notably lower.
Thomson Reuters (TRI) ended 0.7% down. The company has acquired Materia, a US-based startup that specializes in the development of an agentic AI assistant for the tax, audit and accounting profession.
On the economic front, data from Statistics Canada showed industrial producer prices in Canada fell by 0.6% over a month in September, following a revised 0.9% decline in the prior period. On yearly basis, producer prices fell by 0.9% in September, after a 0.2% rise in the prior month.
Meanwhile, the raw materials price index in Canada dropped 3.1% month-over-month in September following an upwardly revised 3% fall in August. Year-on-year, prices of raw materials declined 8.8%, the largest year-over-year decrease since July 2023.
Canadian Stocks Turning In Mixed Performance
(RTTNews) - Canadian stocks are turning in a mixed performance on Tuesday with investors digesting Canadian producer prices data and some earnings updates, and awaiting the Bank of Canada's interest rate decision on Wednesday.
The Canadian central bank is widely expected to reduce interest rates by 50 basis points.
The benchmark SP/TSX Composite Index was down 37.37 points or 0.16% at 24,685.96 a little while ago.
On the economic front, data from Statistics Canada showed industrial producer prices in Canada fell by 0.6% over a month in September, following a revised 0.9% decline in the prior period. On yearly basis, producer prices fell by 0.9% in September, after a 0.2% rise in the prior month.
Meanwhile, the raw materials price index in Canada dropped 3.1% month-over-month in September following an upwardly revised 3% fall in August. Year-on-year, prices of raw materials declined 8.8%, the largest year-over-year decrease since July 2023.
Healthcare and materials shares are in demand. Technology, consumer discretionary and communications shares are mostly subdued.
Dye Durham (DND.TO) is gaining nearly 10% after the company responded to a media report that its is exploring a sale after receiving takeover interest. The company said in a statement that it has "expanded the scope of its previously commenced strategic review process to consider additional opportunities to enhance shareholder value that may include, but are not limited to, a sale of the company, merger, divestiture of assets, or other strategic transactions."
Seabridge Gold Inc (SEA.TO) is up 5.3% and Pan American Silver Corp (PAAS.TO) is gaining 4%. Franco-Nevada Corporation (FNV.TO), Teck Resources (TECK.A.TO), Newmont Corporation (NGT.TO), Agnico Eagle Mines (AEM.TO), EQB Inc (EQB.TO), TFI International (TFII.TO) and Kinaxis Inc (KXS.TO) are up with sharp to moderate gains.
Goeasy (GSY.TO) is down nearly 10%. BRP Inc (DOO.TO) is declining more than 6%. Toromont Industries (TIH.TO) is lower by about 3.5%. Cameco Corporation (CCO.TO), Stantec Inc (STN.TO), Shopify Inc (SHOP.TO), Bombardier Inc (BBD.B.TO), Cargojet (CJT.TO), FirstService Corporation (FSV.TO) and CGI Inc (GIB.A.TO) are also notably lower.
UK Budget Deficit Widens More Than Estimated
(RTTNews) - The UK budget deficit widened more than officially estimated in September and also hit the highest level for the month since 2021, the Office for National Statistics reported Tuesday.
Public sector net borrowing increased to GBP 16.6 billion in September from GBP 14.5 billion in the previous year. This was the third highest September borrowing since monthly records began in January 1993.
Data suggested that the government borrowing was higher than the GBP 15.1 billion forecast by the Office for Budget Responsibility. However, this was below economists' forecast of GBP 17.4 billion.
The interest payable on central government debt increased by GBP 4.6 billion from the last year to GBP 5.6 billion in September. This increase reflects the exceptionally low payment in September 2023 because of movements in the retail price index, rather than September 2024's interest being unusually high.
In the financial year to September, borrowing rose by GBP 1.2 billion to GBP 79.6 billion. This was the third highest year-to-September borrowing since monthly records began in January 1993. The OBR had estimated a deficit of GBP 73.0 billion for this period.
"While tax revenue increased, this was outweighed by increased spending, partly due to higher debt interest and public sector pay rises," said ONS deputy director for public sector finances Jessica Barnaby.
Chancellor Rachel Reeves is set to deliver the Autumn Budget 2024 on October 30. The budget is expected to hike taxes and reduce spending worth GBP 40 billion.
Chief Secretary to the Treasury Darren Jones said the budget would require difficult decisions to fix the foundations of the economy and begin delivering on the promise of change.
ONS data showed that public sector net debt excluding banks was estimated at 98.5 percent of gross domestic product at the end of September.
Central government net cash requirement was GBP 13.2 billion in September, which was GBP 1.9 billion less than in September 2023.
Swiss Market Ends Notably Lower
(RTTNews) - After opening marginally down, the Switzerland market slipped deeper into the red Tuesday morning, and stayed weak right through the day's session as investors largely stayed cautious and looked for directional clues.
The benchmark SMI closed down 98.54 points or 0.8% at 12,163.03. The index dropped to a low of 12,120.99 in the session.
Logitech International tumbled 6.5%, failing to hold early gains. The stock surged higher earlier in the session after raising its full-year outlook.
Geberit, Swiss Re and Novartis lost 1.6 to 2%. Sandoz Group ended down 1.4%, while Swiss Life Holding, Givaudan, Lindt Spruengli and Zurich Insurance Group closed down 1 to 1.17%.
Nestle, Schindler Ps, Swisscom, SGS, Julius Baer, Lonza Group, Sika, Straumann Holding and Sonova ended lower by 0.5 to 1%.
SIG Group climbed more than 2%. Adecco gained about 1.1% and Swatch Group closed up 0.52%.
