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Japan Jobless Rate Falls To 2.4% In September
(RTTNews) - The unemployment rate in Japan came in at a seasonally adjusted 2.4 percent in September, the Ministry of Internal Affairs and Communications said on Tuesday.
That was below expectations for 2.5 percent, which would have been unchanged from the August reading.
The jobs-to-applicant ratio was 1.24 - beating forecasts for 1.23, which again would have been unchanged from the previous month.
The participation rate was 63.5 percent, shy of forecasts for 63.6 percent, which would have been steady from a month prior.
European Shares Gain Ahead Of Busy Week
(RTTNews) - European stocks were broadly higher on Monday ahead of a busy week for earnings and economic releases.
The Eurozone will reveal preliminary flash GDP, consumer confidence and economic sentiment data on Wednesday, with investors looking for clues on how aggressively the European Central Bank will cut interest rates going forward.
Euro zone yields climbed, and the British pound was seeing a sideways movement ahead of British Prime Minister Sir Keir Starmer's new government's first budget to be unveiled on Wednesday and the release of the widely watched monthly U.S. jobs report due on Friday.
In the run-up to the U.K. Budget, a survey showed business confidence in the U.K. dropped to a four-month low in October.
The pan European STOXX 600 was up 0.4 percent at 520.64 after ending flat with a negative bias on Friday.
The German DAX added half a percent, France's CAC 40 climbed 1 percent and the U.K.'s FTSE 100 was up 0.1 percent.
Energy stocks traded lower, with BP Plc falling 1.7 percent and peer Shell losing more than 2 percent in London as crude prices plunged to four-week lows amid easing fears of a Middle East war.
Investors heaved a sigh of relief as Israeli strikes on Iran over the weekend avoided the OPEC member's oil facilities.
Philips shares plunged 16 percent after the Dutch medical devices maker cut its annual sales outlook, citing deteriorating demand from consumers and hospitals in China.
Telecommunications company KPN fell nearly 2 percent despite reiterating its full-year 2024 outlook.
Eurofins Scientific SE gained 1.7 percent in Paris. The company, which is focused on bio-analytical testing said that it has inked a deal with Synlab to acquire its clinical diagnostics operations in Spain for an undisclosed amount.
European Stocks Close On Firm Note
(RTTNews) - European stocks closed higher on Monday with investors closely following the developments on the geopolitical front, and looking ahead to a slew of economic data from the region for clues on the European Central Bank's interest rate trajectory.
Eurozone preliminary flash GDP, consumer confidence and economic sentiment data are due on Wednesday.
Confidence among U.K. businesses fell to its lowest in four months in October as they adopted a cautious stance ahead of the first budget presentation by the new chancellor Rachel Reeves later this week, results of a survey showed today.
The Lloyds Business Barometer fell three points to 44%, the lowest score since June, the survey that covered 1,200 companies between October 1 - 15 revealed.
Euro zone yields climbed, and the British pound was seeing a sideways movement ahead of British Prime Minister Sir Keir Starmer's new government's first budget to be unveiled on Wednesday and the release of the widely watched monthly U.S. jobs report due on Friday.
In the run-up to the U.K. Budget, a survey showed business confidence in the U.K. dropped to a four-month low in October.
Shares of oil companies were under pressure as crude prices plunged to four-week lows amid easing fears of a Middle East war. Investors heaved a sigh of relief as Israeli strikes on Iran over the weekend avoided the OPEC member's oil facilities.
The pan European Stoxx 600 gained 0.46%. The U.K.'s FTSE 100 climbed 0.53%, Germany's DAX closed up 0.34% and France's CAC 40 ended stronger by 0.89%, while Switzerland's SMI ended 0.44% up.
Among other markets in Europe, Austria, Belgium, Finland, Iceland, Ireland, Spain, Sweden and Turkiye closed higher. Poland edged up marginally.
Denmark, Netherlands, Norway, Portugal and Russia ended weak.
In the UK market, Melrose Industries soared nearly 10%.
Easyjet and Pearson climbed 2.8% and 2.69%, respectively. Halma, Natwest Group, Convatec Group and Informa advanced 2 to 2.75%.
Diploma, Entain, Barratt Developments, Taylor Wimpey, Standard Chartered, Persimmon, Anglo American Plc, Smith Nephew, ICG, Howden Joinery, WPP, Frasers Group and IAG gained 1.5 to 1.8%.
Lloyds Banking Group ended down 2.7%. Whitbread, Endeavour Mining, BP, Shell and BT Group lost 1 to 1.7%.
In the German market, Fresenius climbed more than 2%. HeidelbergCement, Puma, Munich RE, Deutsche Boerse, Bayer, Deutsche Bank, Deutsche Post, Hannover Rueck, E.On, Sartorius, Rheinmetall and Allianz gained 0.7 to 1.8%.
Porsche dropped about 5.5%. Siemens Healthineers closed down 3.4% and Adidas ended 1.6% down.
In the French market, ArcelorMittal, Vinci and Danone gained 2.8 to 3.2%.Veolia gained nearly 2.5% following a rating upgrade by RBC.
Kering, Publicis Groupe, Edenred, Bouygues, Air Liquide, Michelin, Saint Gobain, AXA, Accor and Legrand climbed 1.3 to 2.4%.
Eurofins Scientific closed modestly higher. The company, which is focused on bio-analytical testing said that it has inked a deal with Synlab to acquire its clinical diagnostics operations in Spain for an undisclosed amount.
TotalEnergies ended notably lower, after Israel refrained from retaliating to Iran's missile strike by attacking its oil infrastructure, tempering supply concerns from the Middle East.
Philips shares plunged nearly 17% after the Dutch medical devices maker cut its annual sales outlook, citing deteriorating demand from consumers and hospitals in China.
Malaysia Stock Market Due For Support On Tuesday
(RTTNews) - The Malaysia stock market has moved lower in six straight sessions, slipping more than 35 points or 2.3 percent along the way. The Kuala Lumpur Composite Index now sits just above the 1,610-point plateau although it may finally find traction on Tuesday.
The global forecast for the Asian markets is positive following a sharp drop in the price of oil. The European and U.S. markets were up and the Asian bourses are expected to follow that lead.
The KLCI finished modestly lower on Monday following mixed performances from the financial shares, plantation stocks, industrials and telecoms.
For the day, the index shed 7.83 points or 0.48 percent to finish at 1,610.47 after trading between 1,609.87 and 1,630.39.
Among the actives, Axiata lost 0.43 percent, while Celcomdigi added 0.58 percent, CIMB Group slumped 1.23 percent, Genting Malaysia skidded 0.88 percent, IHH Healthcare tanked 1.87 percent, IOI Corporation gained 0.53 percent, Kuala Lumpur Kepong soared 2.09 percent, Maxis tumbled 1.36 percent, Maybank retreated 1.33 percent, MISC improved 0.67 percent, MRDIY gathered 0.45 percent, Nestle Malaysia surged 2.79 percent, Petronas Chemicals strengthened 1.46 percent, Petronas Gas declined 1.25 percent, PPB Group rallied 1.69 percent, Press Metal fell 0.42 percent, Public Bank advanced 1.13 percent, QL Resources climbed 1.27 percent, RHB Bank sank 0.78 percent, Sime Darby jumped 1.70 percent, SD Guthrie shed 0.63 percent, Sunway plummeted 3.14 percent, Telekom Malaysia perked 0.31 percent, Tenaga Nasional plunged 2.64 percent, YTL Corporation rose 0.51 percent, YTL Power spiked 2.00 percent and Genting was unchanged.
The lead from Wall Street is upbeat as the major averages opened modestly higher on Monday and stayed that way throughout the trading day.
The Dow rallied 273.17 points or 0.65 percent to finish at 42,387.57, while the NASDAQ gained 48.58 points or 0.26 percent to finish at 18,567.19 and the SP 500 added 15.40 points or 0.27 percent to end at 5,823.52.
The strength on Wall Street came amid a steep drop by the price of oil. Oil prices fell sharply on Monday as concerns about supply disruptions faded after Israel avoided hitting Iranian oil facilities over the weekend. West Texas Intermediate Crude oil futures for December plunged $4.40 or 6.1 percent at $67.38 a barrel.
Meanwhile, traders were also looking ahead to the release of key U.S. economic data later in the week. The monthly jobs report as well as a report on personal income and spending that includes the Federal Reserve's preferred inflation readings are likely to be in the spotlight.
The data could impact the outlook for the economy as well as expectations regarding how quickly the Fed will lower interest rates.
Australian Market Modestly Higher
(RTTNews) - Adding to the gains in the previous two sessions, the Australian stock market is trading modestly higher on Tuesday, following the broadly positive cues from Wall Street overnight. The benchmark SP/ASX 200 is staying well above the 8,200 level, with gains in mining, financial and technology stocks partially offset by weakness in energy stocks amid tumbling crude oil prices.
The benchmark SP/ASX 200 Index is gaining 29.40 points or 0.36 percent to 8,250.90, after touching a high of 8,262.80 earlier. The broader All Ordinaries Index is up 29.70 points or 0.35 percent to 8,507.90. Australian stocks closed slightly higher on Monday.
Among the major miners, BHP Group, Rio Tinto and Fortescue Metals are edging up 0.3 to 0.5 percent each, while Mineral Resources is surging more than 5 percent.
Oil stocks are mostly lower. Origin Energy and Santos are edging down 0.3 percent each, while Woodside Energy is losing almost 1 percent and Beach energy is declining more than 1 percent.
Among tech stocks, Appen is gaining almost 4 percent, WiseTech Global is adding almost 3 percent, Afterpay owner Block rising 1.5 percent, Xero is edging up 0.2 percent and Zip is soaring more than 9 percent.
Gold miners are mostly higher. Gold Road Resources and Resolute Mining are edging up 0.2 to 0.3 percent each, while Evolution Mining is gaining almost 1 percent, Newmont is adding more than 2 percent and Northern Star resources is advancing almost 2 percent.
Among the big four banks, Commonwealth Bank and Westpac are gaining almost 1 percent each, while ANZ Banking and National Australia Bank are edging up 0.1 to 0.5 percent each.
In other news, shares in Premier Investment are rallying more than 11 precent after it agreed to sell its apparel brands business in Australia and New Zealand to Myer.
In the currency market, the Aussie dollar is trading at $0.658 on Tuesday.
On Wall Street, stocks gave back ground over the course of the trading day on Monday but managed to end the day mostly higher after showing a strong move to the upside early in the session. The major averages all finished the day in positive territory after turning in mixed performances over the two previous sessions.
The Dow advanced 273.17 points or 0.7 percent to 42,387.57, the Nasdaq climbed 48.58 points or 0.3 percent to 18,567.19 and the SP 500 rose 15.40 points or 0.3 percent to 5,821.52.
The major European markets also moved to the upside on the day. While the French CAC 40 Index advanced by 0.8 percent, the U.K.'s FTSE 100 Index and the German DAX Index rose by 0.5 percent and 0.4 percent, respectively.
Crude oil prices fell sharply on Monday as concerns about supply disruptions faded after Israel avoided hitting Iranian oil facilities over the weekend. West Texas Intermediate Crude oil futures for December plunged $4.40 or 6.1 percent at $67.38 a barrel.
Election, Economy, Escalation And Expectations Enhance Dollar's Appeal
(RTTNews) - Uncertainty surrounding the presidential election in the U.S., data underscoring the resilience of the U.S. economy, the escalation in geopolitical tensions in the Middle East as well as the sobering rate cut expectations boosted the U.S. dollar during the week ended October 25. The greenback gained against the euro, the British pound, the Australian dollar, the Japanese yen, the Canadian dollar, the Swedish Krona as well as the Swiss franc.
The six-currency Dollar Index rose for the fourth week in a row as world markets braced for the Presidential election scheduled for November 5 and the Fed's monetary policy decision on November 7.
The Dollar Index jumped 0.74 percent during the week spanning October 21 to 25, rising to 104.26 from 103.49 a week earlier. From the low of 103.42 recorded on Monday, the index jumped to a weekly high of 104.57 on Wednesday.
The SP Global PMI readings from the U.S. released on Thursday showed both the manufacturing and services sector performing better than expected. Data from the U.S. Census Bureau showed sales of new single-family homes jumping 4.1 percent in contrast to a 2.3 percent fall in August.
The initial jobless claims data released by the U.S. department of labor on Thursday showed initial jobless claims for the week ended October 19 unexpectedly decreasing to 227 thousand from 242 thousand in the previous week. Markets had expected a level of 242 thousand. The decline in claims triggered fears of the Fed delaying rate cuts as concerns about the labor market diminished.
New orders for manufactured durable goods decreased 0.8 percent in September, following a revised 0.8 percent decline in August and far better than market expectations of a 1 percent decline. The University of Michigan's consumer sentiment reading was also revised upward to 70.5 in October from a preliminary of 68.9. With a third consecutive month of rises, the measure reached the highest level in six months.
The economic data helped sober Fed rate cut expectations that were reinforced with the release of the Fed's Beige book on Wednesday. The commentary on current economic conditions across the 12 Federal Reserve Districts had pointed to continued sluggishness in the U.S. economy. The report showed that economic activity was little changed in nearly all Districts since early September, though two Districts reported modest growth.
Expectation of a Trump Presidency boosted bond yields also. Yields on ten-year U.S. treasuries surged from 4.075 percent on October 18 to 4.232 percent on October 25, bolstering the greenback further.
The EUR/USD pair plunged 0.67 percent during the week ended October 25 amidst deepening rate cut expectations from the European Central Bank. The pair slipped to 1.0793 from 1.0866 in the week earlier amidst data that showed producer prices in Germany dropping 1.4 percent year-on-year in September versus a decrease of 0.8 percent in the previous two months. The weekly trading ranged between the high of 1.0872 recorded on Monday and the low of 1.0760 touched on Wednesday.
Bank of England Governor Andrew Bailey's acknowledgement that disinflation in the U.K. was happening faster than expected boosted rate cut expectations from the Bank of England causing the sterling to drop 0.68 percent against the greenback during the week ended October 25. The GBP/USD pair declined to 1.2959 on October 25, from 1.3048 a week earlier. The sterling's weekly trading range was between $1.3058 recorded on Monday and $1.2904 recorded on Wednesday.
Expectations that consumer price inflation in Australia would fall into the Reserve Bank of Australia's band of 2 to 3 percent in September contributed to the AUD's weakness. The AUD/USD pair tumbled 1.54 percent during the week spanning October 21 to 25. From the level of 0.6706 recorded on October 18, the pair dropped to 0.6603 in a week's time. The pair touched a high of 0.6723 on Monday and a low of 0.6599 on Friday.
Anxiety ahead of the general elections in Japan triggered a weakness in the Japanese yen. The greenback's strength amidst an improved outlook on the U.S. economy as well as expectations of sticky interest rates in the U.S. aided the Japanese yen's decline against the U.S. Dollar. The USD/ JPY pair rallied 1.86 percent during the week ended October 25 as it closed at 152.30 versus 149.52 a week earlier. The pair ranged between the low of 149.07 on Monday and the three-month high of 153.18 on Wednesday.
Currency market sentiment remains on edge ahead of elections in the U.S. as well as key economic data scheduled for release. Ahead of the release of U.S. GDP data on Wednesday and the jobs data on Friday, the Dollar Index has edged down to 104.21 from the level of 104.26 recorded at close on Friday.
Ahead of inflation data from the Euro Zone due on Thursday, which is expected to show an uptick, the EUR/USD pair has rallied to 1.0819. The GBP/USD pair has also increased to 1.2988 as market spotlight turns on the new U.K. government's budget and fears of additional govt borrowing.
The AUD/USD pair has edged up 0.07 percent to 0.6608 amidst anticipation ahead of the releases of the CPI update on Tuesday.
Despite political uncertainty limiting the headroom available to Bank of Japan to raise rates further, markets are keenly watching out for the Bank of Japan's interest rate decision due on Wednesday. The yen has retreated further against the greenback, lifting the USD/JPY pair to 152.68 versus 152.30 at close on Friday.
Higher Open Called For Thai Stock Market
(RTTNews) - The Thai stock market turned lower again on Monay, one session after ending the four-day losing streak in which it had dropped almost 35 points or 2.5 percent. The Stock Exchange of Thailand now sits just above the 1,450-point plateau and it figured to see renewed support on Tuesday.
The global forecast for the Asian markets is positive following a sharp drop in the price of oil. The European and U.S. markets were up and the Asian bourses are expected to follow that lead.
The SET finished modestly lower on Monday as losses from the food, property, service and technology sectors were tempered by support from the consumer, finance, resource and industry companies.
For the day, the index lost 10.39 points or 0.71 percent to finish at 1,453.03 after trading between 1,449.73 and 1,464.12. Volume was 10.990 billion shares worth 45.979 billion baht. There were 246 decliners and 225 gainers, with 187 stocks finishing unchanged.
Among the actives, Advanced Info skidded 1.09 percent, Bangkok Bank jumped 1.69 percent, Bangkok Dusit Medical declined 0.88 percent, Bangkok Expressway gained 0.63 percent, B. Grimm dropped 0.89 percent, BTS Group rallied 5.15 percent, CP All Public slid 0.39 percent, Charoen Pokphand Foods tanked 2.18 percent, Energy Absolute tumbled 1.92 percent, Gulf sank 0.76 percent, Kasikornbank climbed 1.02 percent, Krung Thai Card shed 0.51 percent, PTT Oil Retail added 0.63 percent, PTT soared 3.01 percent, PTT Global Chemical surged 5.21 percent, SCG Packaging spiked 1.94 percent, Thai Oil plummeted 5.68 percent, True Corporation stumbled 1.65 percent and TTB Bank, Krung Thai Bank, Siam Commercial Bank, Siam Concrete, Asset World, Banpu and Thailand Airport were unchanged.
The lead from Wall Street is upbeat as the major averages opened modestly higher on Monday and stayed that way throughout the trading day.
The Dow rallied 273.17 points or 0.65 percent to finish at 42,387.57, while the NASDAQ gained 48.58 points or 0.26 percent to finish at 18,567.19 and the SP 500 added 15.40 points or 0.27 percent to end at 5,823.52.
The strength on Wall Street came amid a steep drop by the price of oil. Oil prices fell sharply on Monday as concerns about supply disruptions faded after Israel avoided hitting Iranian oil facilities over the weekend. West Texas Intermediate Crude oil futures for December plunged $4.40 or 6.1 percent at $67.38 a barrel.
Meanwhile, traders were also looking ahead to the release of key U.S. economic data later in the week. The monthly jobs report as well as a report on personal income and spending that includes the Federal Reserve's preferred inflation readings are likely to be in the spotlight.
The data could impact the outlook for the economy as well as expectations regarding how quickly the Fed will lower interest rates.
Asian Shares Rise On China Optimism
(RTTNews) - Asian stocks ended mostly higher on Tuesday after Chinese Premier Li Qiang expressed confidence that his government can pull off an economic recovery.
Additionally, a private survey showed China's services activity expanded at the fastest pace in three months in October.
The dollar was on the defensive and gold was little changed as the U.S. presidential election got underway, with polls predicting a tight race.
Oil prices were subdued in Asian trade after rallying almost 3 percent on Monday following OPEC+'s decision to delay restoring barrels to the market.
China's Shanghai Composite index jumped 2.32 percent to 3,386.99 and Hong Kong's Hang Seng index added 2.14 percent to close at 21,006.97 after Chinese Premier Li Qiang said he is confident of meeting this year's growth target and that there was room for more stimulus.
Observers hope a specific figure for the stimulus could emerge from this week's meeting of the Standing Committee of National People's Congress, the top body of China's rubber stamp parliament.
There was also some cheer on the data front. China's service activity expanded at the fastest pace since July, a private survey showed today in a sign that consumer demand may be on the mend.
Japanese markets rallied as trading resumed after a long holiday weekend. The Nikkei average climbed 1.11 percent to 38,474.90 while the broader Topix index settled 0.76 percent higher at 2,664.26.
Nintendo shares fell 3.9 percent. The gaming company today cut its annual operating profit forecast by 10 percent to 360 billion yen ($2.36 billion), as its ageing Switch console loses steam.
Seoul stocks ended lower as caution crept in ahead of the U.S. election and the Federal Reserve's interest-rate decision due later this week, with the U.S. central bank widely expected to cut its main interest rate for a second straight time.
Geopolitical tensions also weighed after North Korea launched a salvo of ballistic missiles towards the sea off the east coast of the Korean Peninsula. The Kospi average dropped 0.47 percent to 2,576.88.
Data showed earlier today that South Korea's October headline inflation slowed further to the weakest level in almost four years.
Australian markets fell slightly as the Reserve Bank of Australia held the official cash rate at 4.35 percent and signaled no immediate plans for rate cuts.
The benchmark SP/ASX 200 dipped 0.40 percent to 8,131.80, with financials and consumer stocks leading losses. The broader All Ordinaries index closed 0.42 percent lower at 8,387.80.
Domino's Pizza Enterprises slumped 6.3 percent after an announcement that long-time chief executive and managing director Don Meij will retire effective 6 November.
Across the Tasman, New Zealand's benchmark SP/NZX-50 index rose 0.54 percent to 12,658.30.
U.S. stocks drifted lower overnight as investors refrained from making big bets ahead of the presidential election and the Fed's interest-rate decision.
The Dow shed 0.6 percent, while the tech-heavy Nasdaq Composite and the SP 500 both dipped around 0.3 percent.
Japanese Market Is Notably Higher
(RTTNews) - Adding to the sharp gains in the previous session, the Japanese stock market is trading notably higher on Tuesday after opening in the red, with the Nikkei 225 moving well above the 38,800 level, following the broadly positive cues from Wall Street overnight, with gains across most sectors led by index heavyweights and financial stocks.
The markets reacted to domestic data showing unemployment rate edged lower to 2.4 percent in September from 2.5 percent in August, the lowest in eight months.
The benchmark Nikkei 225 Index is up 242.80 points or 0.63 percent at 38,848.33, after touching a high of 38,881.86 earlier. Japanese shares ended sharply higher on Monday.
Market heavyweight SoftBank Group is gaining more than 2 percent and Uniqlo operator Fast Retailing is edging down 0.4 percent. Among automakers, Honda is edging down 0.1 percent and Toyota is also edging down 0.2 percent.
In the tech space, Advantest is gaining more than 1 percent, while Screen Holdings and Tokyo Electron are edging up 0.1 to 0.3 percent each.
In the banking sector, Mitsubishi UFJ Financial and Mizuho Financial are gaining almost 3 percent each, while Sumitomo Mitsui Financial is adding more than 2 percent.
The major exporters are mostly higher. Mitsubishi Electric is adding more than 1 percent, while Panasonic and Sony are gaining almost 1 percent each. Canon is edging down 0.4 percent.
Among the other major gainers, M3 is surging almost 5 percent, Shionogi Co. is gaining more than 4 percent and Nitto Denko is adding almost 4 percent, while Furukawa Electric, IHI and Kawasaki Heavy Industries are advancing more than 3 percent each. Astellas Pharma and Renesas Electronics are rising almost 3 percent each.
Conversely, Toto is plummeting almost 13 percent and Tokuyama is losing 3.5 percent.
In economic news, the unemployment rate in Japan came in at a seasonally adjusted 2.4 percent in September, the Ministry of Internal Affairs and Communications said on Tuesday. That was below expectations for 2.5 percent, which would have been unchanged from the August reading.
The jobs-to-applicant ratio was 1.24 - beating forecasts for 1.23, which again would have been unchanged from the previous month. The participation rate was 63.5 percent, shy of forecasts for 63.6 percent, which would have been steady from a month prior.
In the currency market, the U.S. dollar is trading in the higher 152 yen-range on Tuesday.
On Wall Street, stocks gave back ground over the course of the trading day on Monday but managed to end the day mostly higher after showing a strong move to the upside early in the session. The major averages all finished the day in positive territory after turning in mixed performances over the two previous sessions.
The Dow advanced 273.17 points or 0.7 percent to 42,387.57, the Nasdaq climbed 48.58 points or 0.3 percent to 18,567.19 and the SP 500 rose 15.40 points or 0.3 percent to 5,821.52.
The major European markets also moved to the upside on the day. While the French CAC 40 Index advanced by 0.8 percent, the U.K.'s FTSE 100 Index and the German DAX Index rose by 0.5 percent and 0.4 percent, respectively.
Crude oil prices fell sharply on Monday as concerns about supply disruptions faded after Israel avoided hitting Iranian oil facilities over the weekend. West Texas Intermediate Crude oil futures for December plunged $4.40 or 6.1 percent at $67.38 a barrel.
Indonesia Bourse May Halt Its Slide On Tuesday
(RTTNews) - The Indonesia stock market has finished lower in four straight sessions, dropping almost 160 points or 2.1 percent along the way. The Jakarta Composite Index now rests just beneath the 7,635-point plateau although it's due for support on Tuesday.
The global forecast for the Asian markets is positive following a sharp drop in the price of oil. The European and U.S. markets were up and the Asian bourses are expected to follow that lead.
The JCI finished modestly lower on Monday following losses from the financial shares and cement companies, while the resource sector was mixed.
For the day, the index sank 60.03 points or 0.78 percent to finish at 7,634.63 after trading between 7,599.62 and 7,714.74.
Among the actives, Bank CIMB Niaga sank 0.79 percent, while Bank Mandiri tanked 3.19 percent, Bank Danamon Indonesia fell 0.38 percent, Bank Negara Indonesia stumbled 2.65 percent, Bank Central Asia retreated 1.40 percent, Bank Rakyat Indonesia dipped 0.21 percent, Bank Maybank Indonesia dropped 0.88 percent, Indosat Ooredoo Hutchison plunged 4.78 percent, Indocement declined 1.64 percent, Semen Indonesia plummeted 5.69 percent, Indofood Sukses Makmur rose 0.33 percent, Astra International added 0.48 percent, Energi Mega Persada improved 0.73 percent, Astra Agro Lestari skidded 1.11 percent, Aneka Tambang rallied 1.58 percent, Jasa Marga slumped 0.85 percent, Vale Indonesia weakened 1.23 percent, Timah surged 3.50 percent, Bumi Resources tumbled 1.42 percent and United Tractors was unchanged.
The lead from Wall Street is upbeat as the major averages opened modestly higher on Monday and stayed that way throughout the trading day.
The Dow rallied 273.17 points or 0.65 percent to finish at 42,387.57, while the NASDAQ gained 48.58 points or 0.26 percent to finish at 18,567.19 and the SP 500 added 15.40 points or 0.27 percent to end at 5,823.52.
The strength on Wall Street came amid a steep drop by the price of oil. Oil prices fell sharply on Monday as concerns about supply disruptions faded after Israel avoided hitting Iranian oil facilities over the weekend. West Texas Intermediate Crude oil futures for December plunged $4.40 or 6.1 percent at $67.38 a barrel.
Meanwhile, traders were also looking ahead to the release of key U.S. economic data later in the week. The monthly jobs report as well as a report on personal income and spending that includes the Federal Reserve's preferred inflation readings are likely to be in the spotlight.
The data could impact the outlook for the economy as well as expectations regarding how quickly the Fed will lower interest rates.
Rebound Anticipated For Taiwan Stock Market
(RTTNews) - The Taiwan stock market headed south again on Monday, one session after ending the three-day losing streak in which it had dropped almost 350 points or 1.5 percent. The Taiwan Stock Exchange now rests just beneath the 23,200-point plateau although it's likely to bounce higher again on Tuesday.
The global forecast for the Asian markets is positive following a sharp drop in the price of oil. The European and U.S. markets were up and the Asian bourses are expected to follow that lead.
The TSE finished modestly lower on Monday as the financial shares and technology stocks were mostly in the red, while the plastics companies offered support.
For the day, the index sank 150.38 points or 0.64 percent to finish at 23,198.07 after trading between 23,164.42 and 23,547.12.
Among the actives, Cathay Financial collected 0.43 percent, while Mega Financial advanced 0.90 percent, CTBC Financial shed 0.55 percent, Fubon Financial fell 0.33 percent, E Sun Financial lost 0.54 percent, Taiwan Semiconductor Manufacturing Company retreated 1.41 percent, United Microelectronics Corporation skidded 1.10 percent, Hon Hai Precision slid 0.46 percent, Largan Precision stumbled 1.69 percent, Catcher Technology was down 0.42 percent, MediaTek rallied 1.52 percent, Delta Electronics improved 0.75 percent, Novatek Microelectronics perked 0.19 percent, Formosa Plastics soared 3.63 percent, Nan Ya Plastics spiked 2.30 percent and Asia Cement and First Financial were unchanged.
The lead from Wall Street is upbeat as the major averages opened modestly higher on Monday and stayed that way throughout the trading day.
The Dow rallied 273.17 points or 0.65 percent to finish at 42,387.57, while the NASDAQ gained 48.58 points or 0.26 percent to finish at 18,567.19 and the SP 500 added 15.40 points or 0.27 percent to end at 5,823.52.
The strength on Wall Street came amid a steep drop by the price of oil. Oil prices fell sharply on Monday as concerns about supply disruptions faded after Israel avoided hitting Iranian oil facilities over the weekend. West Texas Intermediate Crude oil futures for December plunged $4.40 or 6.1 percent at $67.38 a barrel.
Meanwhile, traders were also looking ahead to the release of key U.S. economic data later in the week. The monthly jobs report as well as a report on personal income and spending that includes the Federal Reserve's preferred inflation readings are likely to be in the spotlight.
The data could impact the outlook for the economy as well as expectations regarding how quickly the Fed will lower interest rates.
China Shares May Extend Winning Streak
(RTTNews) - The China stock market has finished higher in back-to-back sessions, gathering more than 40 points or 1.2 percent along the way. The Shanghai Composite now sits just above the 3,320-point plateau and it may add to its winnings on Tuesday.
The global forecast for the Asian markets is positive following a sharp drop in the price of oil. The European and U.S. markets were up and the Asian bourses are expected to follow that lead.
The SCI finished modestly higher as gains from the properties and resource stocks were offset by weakness from the financials and oil companies.
For the day, the index added 22.50 points or 0.68 percent to finish at the daily high of 3,322.20 after trading as low as 3,279.72. The Shenzhen Composite Index improved 27.93 points or 1.41 percent to end at 2,002.58.
Among the actives, Industrial and Commercial Bank of China sank 0.82 percent, while Bank of China lost 0.61 percent, China Construction Bank slumped 1.23 percent, China Merchants Bank stumbled 1.48 percent, Agricultural Bank of China declined 1.24 percent, China Life Insurance retreated 1.46 percent, Jiangxi Copper strengthened 1.53 percent, Aluminum Corp of China (Chalco) improved 1.06 percent, Yankuang Energy climbed 1.01 percent, PetroChina fell 0.24 percent, China Petroleum and Chemical (Sinopec) dipped 0.16 percent, Huaneng Power accelerated 2.75 percent, China Shenhua Energy rose 0.42 percent, Gemdale surged 4.24 percent, Poly Developments jumped 1.87 percent and China Vanke spiked 2.74 percent.
The lead from Wall Street is upbeat as the major averages opened modestly higher on Monday and stayed that way throughout the trading day.
The Dow rallied 273.17 points or 0.65 percent to finish at 42,387.57, while the NASDAQ gained 48.58 points or 0.26 percent to finish at 18,567.19 and the SP 500 added 15.40 points or 0.27 percent to end at 5,823.52.
The strength on Wall Street came amid a steep drop by the price of oil. Oil prices fell sharply on Monday as concerns about supply disruptions faded after Israel avoided hitting Iranian oil facilities over the weekend. West Texas Intermediate Crude oil futures for December plunged $4.40 or 6.1 percent at $67.38 a barrel.
Meanwhile, traders were also looking ahead to the release of key U.S. economic data later in the week. The monthly jobs report as well as a report on personal income and spending that includes the Federal Reserve's preferred inflation readings are likely to be in the spotlight.
The data could impact the outlook for the economy as well as expectations regarding how quickly the Fed will lower interest rates.
Hong Kong Stock Market May See Additional Support On Tuesday
(RTTNews) - The Hong Kong stock market has moved higher in two straight sessions, gathering more than 100 points or 0.4 percent along the way. The Hang Seng Index now sits just beneath the 20,600-point plateau and it's tipped to open in the green again on Tuesday.
The global forecast for the Asian markets is positive following a sharp drop in the price of oil. The European and U.S. markets were up and the Asian bourses are expected to follow that lead.
The Hang Seng finished slightly higher on Monday following gains from the properties, weakness from the financials and a mixed picture from the technology companies.
For the day, the index rose 9.21 points or 0.04 percent to finish at 20,599.36 after trading between 20,428.94 and 20,669.41.
Among the actives, Alibaba Group and Nongfu Spring both strengthened 1.36 percent, while Alibaba Health Info jumped 1.53 percent, ANTA Sports gained 0.63 percent, China Life Insurance slumped 1.07 percent, China Mengniu Dairy and Hang Lung Properties both surged 2.76 percent, China Resources Land and Galaxy Entertainment both soared 2.19 percent, CITIC added 0.65 percent, CNOOC declined 1.16 percent, CSPC Pharmaceutical dropped 0.64 percent, Haier Smart Home stumbled 1.32 percent, Henderson Land rose 0.39 percent, Hong Kong China Gas and Meituan both perked 0.16 percent, Industrial and Commercial Bank of China skidded 0.84 percent, JD.com climbed 1.28 percent, Lenovo retreated 1.27 percent, Li Auto advanced 0.90 percent, Li Ning rallied 1.39 percent, New World Development improved 0.86 percent, Techtronic Industries sank 0.35 percent, Xiaomi Corporation tumbled 1.73 percent, WuXi Biologics dipped 0.11 percent and ENN Energy was unchanged.
The lead from Wall Street is upbeat as the major averages opened modestly higher on Monday and stayed that way throughout the trading day.
The Dow rallied 273.17 points or 0.65 percent to finish at 42,387.57, while the NASDAQ gained 48.58 points or 0.26 percent to finish at 18,567.19 and the SP 500 added 15.40 points or 0.27 percent to end at 5,823.52.
The strength on Wall Street came amid a steep drop by the price of oil. Oil prices fell sharply on Monday as concerns about supply disruptions faded after Israel avoided hitting Iranian oil facilities over the weekend. West Texas Intermediate Crude oil futures for December plunged $4.40 or 6.1 percent at $67.38 a barrel.
Meanwhile, traders were also looking ahead to the release of key U.S. economic data later in the week. The monthly jobs report as well as a report on personal income and spending that includes the Federal Reserve's preferred inflation readings are likely to be in the spotlight.
The data could impact the outlook for the economy as well as expectations regarding how quickly the Fed will lower interest rates.
Yen Falls Amid BoJ Rate Hike Uncertainty
(RTTNews) - The Japanese yen weakened against other major currencies during the European session on Tuesday, as traders remain cautious amid a rare political crisis following a Japanese snap election that raises doubts about the Bank of Japan's capacity to raise interest rates further and the U.S. election.
Former BOJ board member Makoto Sakurai said that the Bank of Japan is likely to raise interest rates in coming months with January emerging as the most likely timing, when there will be more clarity on political and market developments.
By the end of Governor Kazuo Ueda's term in April 2028, the central bank would eventually aim to increase short-term borrowing costs, which are presently at 0.25%, to 1.5% or 2%, he added.
Investors reacted to mixed earnings updates and awaited interest-rate decisions from the Bank of England and the Federal Reserve later this week.
Meanwhile, all attention is focused on what is being called the "closest race in history" of the 2024 U.S. Presidential election, with Donald Trump facing off against Kamala Harris.
In the European trading today, the yen fell to a 4-day low of 176.61 against the Swiss franc, from an early high of 176.06. On the downside, 178.00 is seen as the next support level for the yen.
Against the euro and the pound, yen slid to 165.94 and 197.73 from early highs of 165.41 and 197.01, respectively. The next possible downside target for the yen is seen around 170.00 against the euro and 200.00 against the pound.
Against the U.S., the Australia, the New Zealand and the Canadian dollars, the yen edged down to 152.55, 100.78, 91.38 and 109.75 from early highs of 152.09, 100.13, 90.84 and 109.42, respectively. If the yen extends its downtrend, it is likely to find support around 155.00 against the greenback, 102.00against the aussie, 93.00 against the kiwi and 112.00 against the loonie.
Looking ahead, U.S. and Canada trade data for September and PMI reports for October, are slated for release in the New York session.
Sensex, Nifty Decline; Auto And Pharma Stocks Lead Losses
(RTTNews) - Indian shares drifted lower again on Tuesday, after having snapped a five-day losing streak the previous day.
The benchmark SP/BSE Sensex was down 370 points, or half a percent, at 79,633 in early trade while the broader NSE Nifty index was down 125 points, or half a percent, at 24,213.
Automakers traded lower, with Bajaj Auto and Tata Motors falling around 3 percent each.
Hero Moto Corp declined 1.7 percent after revealing its 2024 EICMA plans.
Indian Oil Corp fell 2.5 percent after Q2 net profit slumped 98 percent.
Bharti Airtel dropped 2.7 percent despite second-quarter profit surging 168 percent year-on-year led by tariff hikes.
Sun Pharma gave up 1.4 percent despite reporting a 28 percent rise in quarterly profit. Peer Cipla was down nearly 3 percent.
Asian Markets Mixed Amid Cautious Trades
(RTTNews) - Asian stock markets are trading mixed on Tuesday, following the broadly positive cues from Wall Street overnight, as traders remain cautious ahead of the release of key US economic data later in the week that could impact the expectations regarding how quickly the US Fed will lower interest rates. Rising geopolitical tensions in the Middle East is also weighing on market sentiment. Asian markets closed mostly higher on Monday.
Crudes oil prices plunged after Israel's retaliatory attack against Iran over the weekend did not damage the Islamic republic's energy facilities.
The monthly jobs report, consumer confidence, pending home sales, manufacturing sector activity, third quarter GDP as well as a report on personal income and spending that includes the Fed's preferred inflation readings are likely to be in the spotlight this week.
While the Fed is widely expected to lower interest rates by another quarter point next month, CME Group's FedWatch Tool currently indicating a nearly 30 percent chance the central bank will leave rates unchanged in December.
Extending the gains in the previous two sessions, the Australian stock market is trading modestly higher on Tuesday, following the broadly positive cues from Wall Street overnight. The benchmark SP/ASX 200 is staying well above the 8,200 level, with gains in mining, financial and technology stocks partially offset by weakness in energy stocks amid tumbling crude oil prices.
The benchmark SP/ASX 200 Index is gaining 40.60 points or 0.49 percent to 8,250.90, after touching a high of 8,262.10 earlier. The broader All Ordinaries Index is up 40.20 points or 0.47 percent to 8,518.40. Australian stocks closed slightly higher on Monday.
Among the major miners, BHP Group, Rio Tinto and Fortescue Metals are edging up 0.3 to 0.5 percent each, while Mineral Resources is surging more than 5 percent.
Oil stocks are mostly lower. Origin Energy and Santos are edging down 0.3 percent each, while Woodside Energy is losing almost 1 percent and Beach energy is declining more than 1 percent.
Among tech stocks, Appen is gaining almost 4 percent, WiseTech Global is adding almost 3 percent, Afterpay owner Block rising 1.5 percent, Xero is edging up 0.2 percent and Zip is soaring more than 9 percent after reporting upbeat half-year financial results.
Gold miners are mostly higher. Gold Road Resources and Resolute Mining are edging up 0.2 to 0.3 percent each, while Evolution Mining is gaining almost 1 percent, Newmont is adding more than 2 percent and Northern Star resources is advancing almost 2 percent.
Among the big four banks, Commonwealth Bank and Westpac are gaining almost 1 percent each, while ANZ Banking and National Australia Bank are edging up 0.1 to 0.5 percent each.
In other news, shares in Premier Investment are rallying more than 11 precent after it agreed to sell its apparel brands business in Australia and New Zealand to Myer.
In the currency market, the Aussie dollar is trading at $0.658 on Tuesday.
Adding to the sharp gains in the previous session, the Japanese stock market is trading notably higher on Tuesday after opening in the red, with the Nikkei 225 moving above the 38,800 level, following the broadly positive cues from Wall Street overnight, with gains across most sectors led by index heavyweights and financial stocks.
The markets are reacting to domestic data showing unemployment rate edged lower to 2.4 percent in September from 2.5 percent in August, the lowest in eight months.
The benchmark Nikkei 225 Index closed the morning session at 38,819.51, up 213.98 points or 0.55 percent, after touching a high of 38,897.93 earlier. Japanese shares ended sharply higher on Monday.
Market heavyweight SoftBank Group is gaining more than 2 percent and Uniqlo operator Fast Retailing is edging down 0.4 percent. Among automakers, Honda is edging down 0.1 percent and Toyota is also edging down 0.2 percent.
In the tech space, Advantest is gaining more than 1 percent, while Screen Holdings and Tokyo Electron are edging up 0.1 to 0.3 percent each.
In the banking sector, Mitsubishi UFJ Financial and Mizuho Financial are gaining almost 3 percent each, while Sumitomo Mitsui Financial is adding more than 2 percent.
The major exporters are mostly higher. Mitsubishi Electric is adding more than 1 percent, while Panasonic and Sony are gaining almost 1 percent each. Canon is edging down 0.4 percent.
Among the other major gainers, M3 is surging almost 5 percent, Shionogi Co. is gaining more than 4 percent and Nitto Denko is adding almost 4 percent, while Furukawa Electric, IHI and Kawasaki Heavy Industries are advancing more than 3 percent each. Astellas Pharma and Renesas Electronics are rising almost 3 percent each.
Conversely, Toto is plummeting almost 13 percent and Tokuyama is losing 3.5 percent.
In economic news, the unemployment rate in Japan came in at a seasonally adjusted 2.4 percent in September, the Ministry of Internal Affairs and Communications said on Tuesday. That was below expectations for 2.5 percent, which would have been unchanged from the August reading.
The jobs-to-applicant ratio was 1.24 - beating forecasts for 1.23, which again would have been unchanged from the previous month. The participation rate was 63.5 percent, shy of forecasts for 63.6 percent, which would have been steady from a month prior.
In the currency market, the U.S. dollar is trading in the higher 152 yen-range on Tuesday.
Elsewhere in Asia, Taiwan is down 1.8 percent, while New Zealand, Singapore and South Korea are lower by between 0.1 and 0.3 percent each. Hong Kong is up 1.1 percent, while China, Malaysia and Indonesia are higher by between 0.1 and 0.3 percent each.
On Wall Street, stocks gave back ground over the course of the trading day on Monday but managed to end the day mostly higher after showing a strong move to the upside early in the session. The major averages all finished the day in positive territory after turning in mixed performances over the two previous sessions.
The Dow advanced 273.17 points or 0.7 percent to 42,387.57, the Nasdaq climbed 48.58 points or 0.3 percent to 18,567.19 and the SP 500 rose 15.40 points or 0.3 percent to 5,821.52.
The major European markets also moved to the upside on the day. While the French CAC 40 Index advanced by 0.8 percent, the U.K.'s FTSE 100 Index and the German DAX Index rose by 0.5 percent and 0.4 percent, respectively.
Crude oil prices fell sharply on Monday as concerns about supply disruptions faded after Israel avoided hitting Iranian oil facilities over the weekend. West Texas Intermediate Crude oil futures for December plunged $4.40 or 6.1 percent at $67.38 a barrel.
Bay Street Seen Opening Higher On Firm Commodities
(RTTNews) - Canadian shares are likely to open on a positive note Tuesday morning, tracking higher crude oil and metal prices. Investors will also be reacting to earnings news from a slew of top name U.S. companies, including Alphabet.
The focus will also be on Bank of Canada Governor Tiff Macklem's comments at the House of Commons Standing Committee on Finance later in the day.
After five successive days of losses, the Canadian market closed on a firm note on Monday thanks to strong gains in consumer discretionary, consumer staples, healthcare and financials sectors.
Several stocks from technology and industrials sectors also closed notably higher. Energy stocks fell as oil prices tumbled.
The benchmark SP/TSX Composite Index ended up by 101.99 points or 0.42% at 24,565.66. The index touched a low of 24,406.42 and a high of 24,598.96.
Asian stocks closed mixed on Tuesday as investors looked ahead to a slew of U.S. economic data as well as tech megacap earnings for directional cues. Traders also remained apprehensive that a Donald Trump victory in the upcoming U.S. presidential election may slow global growth.
China's Shanghai Composite index fell 1.08 percent to 3,286.41 as caution set in ahead of next week's top leadership meeting that is expected to discuss stimulus measures. Investors also reacted to reports suggesting that the Biden administration has finalized restrictions on investments by U.S. individuals and companies into advanced technology in China.
European stocks are slightly higher on Tuesday with investors looking ahead to a slew of U.S. economic data as well as tech megacap earnings for directional clues.
In commodities, West Texas Intermediate crude oil futures are up $0.86 or 1.28% at $68.25 a barrel.
Gold futures are up $7.70 or 0.28% at $2,763.60 an ounce, while Silver futures are gaining $0.334 or 0.96% at $34.335 an ounce.
Sensex, Nifty Seen Tad Lower At Open
(RTTNews) - Indian shares look set open a tad lower on Tuesday as investors react to mixed global cues and earnings results from Bharti Airtel, Tata Technologies and Indian Oil Corporation.
Meanwhile, the Finance Ministry's latest monthly economic review has flagged softer urban demand and factory output during the first half of FY25, but nevertheless maintained that the economy will grow between 6.5 percent and 7 percent through 2024-25.
Benchmark indexes Sensex and Nifty climbed around 0.8 percent and 0.7 percent, respectively on Monday to snap a week-long losing streak. The rupee ended flat at 84.07 against the dollar after briefly dipping to a record low.
Overseas investors remained net sellers of Indian equities for the 21st consecutive session on Monday and offloaded shares worth approximately Rs 3,228.1 crore, while domestic institutional investors stayed net buyers for the 25th straight session and bought stocks worth Rs 1,400.9 crore, stock exchange data showed.
Asian markets fluctuated in a narrow range this morning as traders braced for the release of key U.S. economic data this week and next week's U.S. presidential election.
The Japanese yen hovered near a three-month low after the country's ruling party lost its parliamentary majority in recent elections.
Gold traded about half a percent higher above $2,750 per ounce while oil steadied after having tumbled 6 percent on Monday, marking its biggest decline in more than two years.
U.S. stocks advanced overnight after ending mixed over the two previous sessions.
Investors kept a close eye on political news and looked forward to key economic data and earnings from several of the biggest tech-related companies.
The Dow gained 0.7 percent, while the SP 500 and the tech-heavy Nasdaq Composite both edged up by 0.3 percent.
European stocks closed higher on Monday amid improved risk sentiment as Middle East tensions eased.
The pan European STOXX 600 gained 0.4 percent. The German DAX rose 0.4 percent, France's CAC 40 climbed 0.8 percent and the U.K.'s FTSE 100 added half a percent.
Starbucks Threatens To Fire Staff If Not Returning To Office
(RTTNews) - Coffee giant Starbucks Corp. has warned to fire corporate staff if they don't adhere to the policy of return to office three days a week, Bloomberg reported, citing an email.
The company plans to launch a standardized process in January to hold employees accountable, if they don't obey the return-to-office policy, and the consequences could include, up to, and including, separation.
However, workers can request an exemption due to medical or psychological reasons.
Reports quoted Starbucks as saying, "We are continuing to support our leaders as they hold their teams accountable to our existing hybrid work policy. We've made updates to our workspaces to make sure they work for the teams who use them."
Starbucks is also said to be moving away from requiring Tuesday as a common attendance day for all workers at headquarters. According to the memo, the company has set the expectations at a team level.
The newly appointed Chief Executive Brian Niccol last month had indicated that the best place for employees to get their jobs done would be the office.
Niccol, who took charge as the chairman and chief executive officer of the coffee chain on September 9, lives in California where he has a remote office. But, his own work arrangement allows him to travel 1,000 miles to Seattle on the company's corporate jet.
Though the decision related to CEO's commute was criticised by some workers and outsiders, Starbucks noted that Niccol will spend most of his time in Seattle or visiting stores.
Since the start of the pandemic in 2020, the company's corporate workforce has been working remotely. Later, they were required to return to office one day a week.
In January last year, then CEO Howard Schultz wrote in a memo that the coffee giant's badging data showed employees were not meeting their minimum promise of one day a week, and asked its corporate employees to return to the office a minimum of three days a week, with a view to rebuilding and reviving the energy of its headquarters and regional offices.
Meanwhile, many Starbucks employees had opposed that plan through an open letter.
The latest development comes as the new CEO, Niccol, last month announced his priorities for his initial days, with a view to focusing on improving the coffee giant's U.S. business before moving to the international markets.
In an open letter to employees, customers, and stakeholders, he pointed out the firm's drift from its core, and presented a plan for the first 100 days to re-establish Starbucks as the community coffeehouse.
Among others, Amazon.com Chief Executive Officer Andy Jassy recently ordered its employees to start reporting to their desks five days a week, beginning in January. At present, many Amazon employees are working from home two days a week.
Dell Technologies also informed its staff earlier this year that those who chose to remain remote wouldn't be eligible for promotion.
FTSE 100 Modestly Higher Ahead Of Budget
(RTTNews) - U.K. stocks were seeing modest gains in cautious trade on Tuesday ahead of the budget announcement due on Wednesday.
Analysts expect the Autumn Budget to introduce key fiscal reforms, including tax changes and wage adjustments that could significantly impact the industry landscape.
The benchmark FTSE 100 was up 27 points, or 0.3 percent, at 8,312 after rising half a percent on Monday.
HSBC shares surged more than 4 percent after the Asia-focused bank reported stronger-than-expected third-quarter earnings and announced a hefty $3 billion buyback.
Energy giant BP Plc dropped 1 percent as it reported lower profit and cash flow from a year ago, weighed down by a drop in refining profits and weaker oil trading.
German Consumer Confidence Improves Despite Deteriorating Economic Expectations
(RTTNews) - Consumer sentiment in Germany is set to rebound in November to its highest level in over two-and-a-half-years as both income expectations and the willingness to buy showed back-to-back improvements though economic expectations continued to weaken, the closely watched survey showed on Tuesday.
The forward-looking consumer sentiment index rose to -18.3 in November from a revised value of -21.0 in October, the survey published jointly by the market research group GfK and the Nuremberg Institute for Market Decisions (NIM) revealed.
Although the sentiment improved for the second straight month and also hit the highest since April 2022, the level of consumer climate still remained low, the GfK said.
The overall weak level of consumer climate caused by crises, wars, and rising prices is still very much present and is preventing factors that encourage consumption, Rolf Bürkl, consumer expert at NIM, said.
"Reports of a rising number of company insolvencies and plans to cut jobs or relocate production abroad are also preventing a more significant recovery in consumer sentiment," said Bürkl.
German households were once again somewhat more pessimistic about overall economic development for the coming year.
Economic expectations weakened for the third month in a row in October. The corresponding index posted 0.2 compared to 0.7 in September. This was the lowest score since March 2024.
The government forecast the largest euro area economy to contract 0.2 percent this year. Last week, the International Monetary Fund projected the economy to stagnate this year and expand 0.8 percent in 2025.
Destatis is slated to publish the first estimate for the third quarter GDP on October 30.
Consumers were more optimistic about their own future financial situation for the second straight month. The income expectations index rose by 3.6 points to 13.7 points.
The survey showed that easing inflation as well as rising pay growth helped real income to increase significantly.
Further, rising income expectations underpinned an improvement in willingness to buy. The index regarding willingness to buy improved by 2.2 points and stood at -4.7, which was the highest level in more than two and a half years.
Although the willingness to buy is currently showing a slight upward trend, the level is still very low. However, negative circumstances may arise in the coming months with the increase in unemployment and company insolvencies.
The willingness to save fell moderately to 7.2 in October from 12.0 a month ago. The latest survey was conducted between October 4 and 15.
UK Mortgage Approvals At 25-Month High
(RTTNews) - UK mortgage approvals increased to the highest level in more than two years in September suggesting renewed confidence in the housing market, official data revealed Tuesday.
Mortgage approvals for house purchases, an indicator of future borrowing, rose by 700 to 65,600 in September, the Bank of England reported. This was the highest since August 2022.
Likewise, approvals for remortgaging increased 3,100 to 30,800.
However, net borrowing of mortgage debt by individuals dropped GBP 0.3 billion to GBP 2.5 billion in September. This was the first fall in four months.
Nonetheless, annual growth in net mortgage lending continued its upward trend observed since April 2024. On year, net mortgage lending rose 0.9 percent, following prior month's 0.7 percent increase.
The 'effective' interest rate, which is the actual interest paid on newly drawn mortgages decreased by 8 basis points to 4.76 percent in September.
The BoE had reduced its benchmark rate by a quarter-point in August, which was the first reduction since March 2020. At the September meeting, the bank had maintained the rate at 5.00 percent.
Consumer credit decreased to GBP 1.2 billion from GBP 1.4 billion in the previous month. Annual growth in consumer credit eased to 7.5 percent from 7.7 percent.
Borrowing through credit cards fell to GBP 0.4 billion from GBP 0.5 billion. Meanwhile, net borrowing through other forms of consumer credit decreased to GBP 0.8 billion from GBP 0.9 billion.
Capital Economics' economist Paul Dales said there is little evidence that the prospect of tax rises has caused households to become more cautious with their borrowing.
While household borrowing and spending may be a bit softer after the scale of tax rises is revealed in tomorrow's Budget, the economy likely expanded in September and will grow by a decent 0.4 percent sequentially or so in the fourth quarter, the economist noted.
Dales expects the bank rate to eventually fall to 3.00 percent from the current 5.00 percent, suggesting that mortgage rates will fall to around 3.60 percent by the end of next year.
CAC 40 Rises Ahead Of Alphabet's Earnings
(RTTNews) - French stocks traded higher on Tuesday as investors looked ahead to a slew of U.S. economic data as well as tech megacap earnings this week for directional cues.
Google parent Alphabet is due to unveil its earnings later in the day, with investors keen to see how growth at its key search business is progressing during a time of rising competition.
Markets also keep a close eye on the upcoming Nov. 5 U.S. presidential election.
A Trump victory may be on the horizon, but most major polls currently show him locked in a tight race with Vice President Kamala Harris.
The benchmark CAC 40 was up 34 points, or half a percent, at 7,591 after climbing 0.8 percent in the previous session.
China-linked Kering, Hermes and LVMH were rising ahead of a top leadership meeting in China next week, expected to discuss stimulus measures.
European Shares Climb With Big Tech Earnings In Focus
(RTTNews) - European stocks rose on Tuesday as investors looked ahead to a slew of U.S. economic data as well as tech megacap earnings this week for directional cues.
Google parent Alphabet is due to unveil its earnings later in the day, with investors keen to see how growth at its key search business is progressing during a time of rising competition.
Markets also keep a close eye on Wednesday's U.K. budget announcement and the upcoming Nov. 5 U.S. presidential election.
Analysts expect the Autumn Budget to introduce key fiscal reforms, including tax changes and wage adjustments that could significantly impact the industry landscape.
A Trump victory may be on the horizon, but most major polls currently show him locked in a tight race with Vice President Kamala Harris.
Meanwhile, a survey showed earlier today that Germany's consumer confidence is set to recover more strongly in November to hit a more than two-and-a-half-year high.
The forward-looking consumer sentiment index rose to -18.3 in November from a revised value of -21.0 in October as both income expectations and the willingness to buy showed a back-to-back improvement, according to a survey conducted by the market research group GfK and the Nuremberg Institute for Market Decisions (NIM).
Elsewhere, U.K. shop prices declined the most in more than three years in October amid falling non-food prices and easing food inflation, the British Retail Consortium, or BRC, said.
The shop price index declined 0.8 percent on a yearly basis in October, larger than the 0.6 percent decrease in the previous month. This was the weakest deflation since August 2021.
The pan European STOXX 600 was up 0.2 percent at 522 after rising 0.4 percent on Monday.
The German DAX rose 0.4 percent, France's CAC 40 added 0.6 percent and the U.K.'s FTSE 100 was up half a percent.
In corporate news, Spain's largest insurer Mapfre surged 4.3 percent after saying its net profit rose 39 percent in first nine months of the year.
Lender Banco Santander lost 2.8 percent as Q3 net interest income came below consensus estimates.
Swiss pharmaceutical giant Novartis AG fell nearly 3 percent despite raising its annual profit guidance for the third straight quarter.
HSBC shares surged more than 4 percent in London after the Asia-focused bank reported stronger-than-expected third-quarter earnings and announced a hefty $3 billion buyback.
Energy giant BP Plc dropped 1 percent as it reported lower profit and cash flow from a year ago, weighed down by a drop in refining profits and weaker oil trading.
China-linked Kering, Hermes and LVMH all were up around 1 percent in Paris ahead of a top leadership meeting in China next week, expected to discuss stimulus measures.
German sportswear maker Adidas gained 1 percent after posting solid third-quarter results and raising its annual profit target for the third quarter in a row.
Lufthansa fell 2.7 percent as the airline reported a 9 percent year-on-year decline in its third-quarter operating profit.
Sensex, Nifty Extend Gains For Second Day; Auto And Pharma Stocks Decline
(RTTNews) - Indian shares recovered from an early slide to end modestly higher on Tuesday.
The benchmark SP/BSE Sensex rose 363.99 points, or 0.45 percent, at 80,369.03, extending gains for a second straight session.
The broader NSE Nifty index closed up 127.70 points, or 0.2 percent, at 24,466.85.
Financials took the lead, with SBI rallying more than 5 percent after its newly appointed chairman said he would like to leverage the bank's technology and digitalization to reach the under-served across the country amid intense competition for deposits.
SBI Life, HDFC Life, Eicher Motors and BEL jumped 3-5 percent.
Automakers led losses, with Hero MotoCorp, Tata Motors and Maruti Suzuki India falling 3-4 percent due to concerns over subdued festive demand.
Sun Pharma dropped 2 percent despite reporting a 28 percent rise in quarterly profit. Peer Dr Reddy's Laboratories fell 2.5 percent after shares turned ex-split on Monday.
