开放论坛
Philippine Central Bank Lowers Key Rates By 25 Bps
(RTTNews) - The Philippine central bank reduced its benchmark rates by 25 basis points for the second straight meeting on Wednesday, as inflation remained low.
The Monetary Board of the Bangko Sentral ng Pilipinas lowered the target reverse repurchase rate to 6.00 percent from 6.25 percent.
The interest rates on the overnight deposit and lending facilities were accordingly adjusted to 5.50 percent and 6.50 percent, respectively. The new rates will take effect on October 17.
The interest rates were previously lowered by quarter point in August, which was the first cut since November 2020.
In September, consumer price inflation halved to a four-year low of 1.9 percent from 3.3 percent. This was also below BSP's forecast range of 2.0-2.8 percent for the month.
As a result, the year-to-date average of 3.4 percent was within the government's inflation target range of 2.0 percent to 4.0 percentage point for 2024.
At the same time, core inflation fell to 2.4 percent from 2.6 percent.
Today, the bank downgraded its risk-adjusted inflation forecast for 2024 to 3.1 percent from 3.3 percent. But the outlook for 2025 and 2026 were lifted to 3.3 percent and 3.7 percent, respectively.
The bank said risks to the outlook for 2025 and 2026 was shifted toward the upside due to potential adjustments in electricity rates and higher minimum wages.
Further, the board expects domestic growth to continue to be strong based on improved prospects for household income and consumption, investment and government spending amid monetary easing.
"On balance, the within-target inflation outlook and well-anchored inflation expectations continue to support the BSP's shift toward less restrictive monetary policy," the bank said.
"Looking ahead, the Monetary Board will maintain a measured approach in its easing cycle to ensure price stability conducive to sustainable economic growth and employment," the bank added.
The BSP is set to cut the policy rate by another 25 basis points at the December meeting, with further easing likely in 2025, Capital Economics' economist Harry Chambers said.
Pound Slides As U.K. Inflation Hits Three-year Low
(RTTNews) - The British pound weakened against other major currencies in the European session on Wednesday, after U.K. inflation fell below the 2 percent target and also hit the lowest in more than three years in September, piling pressure on the Bank of England to ease policy at the November meeting.
Data from the Office for National Statistics showed that consumer price inflation weakened more-than-expected to 1.7 percent in September from 2.2 percent in August. This was the lowest since April 2021. Prices were forecast to climb 1.9 percent.
On a monthly basis, the consumer price index remained flat after rising 0.3 percent in the prior month. Economists had expected a 0.2 percent increase.
Core inflation that excludes prices of energy, food, alcohol and tobacco, softened to 3.2 percent from 3.6 percent in the previous month. The core rate also remained below forecast of 3.4 percent.
Data showed that services inflation eased notably to 4.9 percent from 5.6 percent. At the same time, goods prices slid 1.4 percent.
The BoE had maintained its benchmark rate at 5.00 percent at the September meeting after lowering it by a quarter-point in August, which was the first reduction since 2020. The next policy announcement is due on November 7.
Another report from the ONS showed that output prices declined for the first time in eight months in September. Output prices dropped 0.7 percent annually, reversing a 0.3 percent rise in August. Economists had forecast prices to fall 0.6 percent.
On a monthly basis, the decline in output prices deepened to 0.5 percent from 0.3 percent in the prior month. Prices were expected to fall again by 0.3 percent.
Input prices decreased 2.3 percent on a yearly basis, following a revised 1.0 percent fall in August. Monthly input prices were down 1.0 percent after a 0.3 percent drop in August. Input prices were expected to drop only by 0.5 percent.
European shares traded lower with weak earnings and caution ahead of a European Central Bank (ECB) policy meeting on Thursday denting investor sentiment.
The ECB is likely to deliver another interest rate cut after recent data signaled continued weakness in the euro zone economy.
In the European trading now, the pound fell to nearly a 2-month low of 1.2982 against the U.S. dollar and a 6-day low of 193.70 against the yen, from early highs of 1.3078 and 195.30, respectively. If the pound extends its downtrend, it is likely to find support around 1.28 against the greenback and 191.00 against the yen.
Against the euro and the Swiss franc, the pound dropped to a 5-day low of 0.8380 and a 2-day low of 1.1193 from early highs of 0.8327 and 1.1280, respectively. The pound may test support near 0.84 against the euro and 1.11 against the franc.
Looking ahead, U.S. MBA mortgage approvals data, Canada housing starts for September, manufacturing sales data for August, U.S. import and export prices for September, are slated for release in the New York session.
European Stocks Closed Broadly Lower
(RTTNews) - European markets closed broadly lower on Wednesday after a cautious session, even as the U.K. market settled at multi-week high thanks to data showing a sharp drop in inflation in September. Investors looked ahead to the European Central Bank's policy announcement on Thursday for directional cues.
UK inflation fell below the 2% target and also hit the lowest in more than three years in September, piling pressure on the Bank of England to ease policy at the November meeting. Consumer price inflation weakened more-than-expected to 1.7% in September from 2.2% in August, the Office for National Statistics said.
The pan European Stoxx 600 ended down 0.19%. Germany's DAX and France's CAC 40 closed lower by 0.27% and 0.4%, respectively. The U.K.'s FTSE 100 climbed 0.97% to a six-week high. Switzerland's SMI ended lower by 0.21%.
Among other markets in Europe, Belgium, Denmark, Finland, Ireland, Netherlands and Russia ended weak.
Austria, Greece, Norway, Poland, Portugal, Spain, Sweden and Turkiye closed higher, while Iceland ended flat.
In the UK market, Whitbread climbed more than 6%. Barratt Developments, Entain, Severn Trent, Endeavour Mining, Rolls-Royce Holdings, Persimmon, Taylor Wimpey, Melrose Industries, United Utilities and Ashtead Group gained 3 to 5%.
Land Securities, Legal General, JD Sports Fashion, LondonMetric Property, British Land, IAG, Vodafone Group, Howden Joinery and DCC also moved up sharply. Antofagasta gained about 1.3% after reporting a 15% rise in third-quarter copper output.
Rentokil Initial, Admiral Group and Informa lost 2 to 2.6%. Beazley, Sainsbury (J) and Mondi also closed weak.
In the German market, Adidas closed more than 6% down, despite raising its full-year sales and profit guidance.
Sartorius ended down 4%. Qiagen, Hannover Rueck, Merck, Symrise, Brenntag, Porsche and Siemens lost 1 to 2%.
Puma rallied more than 3.5%. MTU Aero Engines closed up 1.6%. Vonovia, Deutsche Bank, Siemens Energy, Henkel, BASF, E.ON, Deutsche Telekom and SAP gained 0.4 to 1.2%.
In the French market, LVMH tumbled 3.7% after sales of fashion and leather goods unexpectedly fell at its biggest unit for the first time since 2020.
L'Oreal ended down 2.1%, while Hermes International and Carrefour closed lower by 1.3% and 1.2%, respectively.
Teleperformance soared more than 11%. Renault and Accor both gained nearly 2%. Orange, Thales, BNP Paribas and Bouygues also closed notably higher.
ASML Holding slumped more than 5% after the semiconductor equipment maker announced deep cuts to its 2025 sales forecast.
UK Inflation Falls Below 2% Target
(RTTNews) - UK inflation fell below the 2 percent target and also hit the lowest in more than three years in September, piling pressure on the Bank of England to ease policy at the November meeting.
Consumer price inflation weakened more-than-expected to 1.7 percent in September from 2.2 percent in August, the Office for National Statistics reported Wednesday.
This was the lowest since April 2021. Prices were forecast to climb 1.9 percent.
The fall was underpinned by lower air fares and petrol prices. Meanwhile, food and non-alcoholic beverages prices provided the largest upward contribution.
On a monthly basis, the consumer price index remained flat after rising 0.3 percent in the prior month. Economists had expected a 0.2 percent increase.
Core inflation that excludes prices of energy, food, alcohol and tobacco, softened to 3.2 percent from 3.6 percent in the previous month. The core rate also remained below forecast of 3.4 percent.
Data showed that services inflation eased notably to 4.9 percent from 5.6 percent. At the same time, goods prices slid 1.4 percent.
ING economists said the data is unequivocally dovish for the BoE and paves the way for rate cuts at the two remaining meetings this year.
The BoE had maintained its benchmark rate at 5.00 percent at the September meeting after lowering it by a quarter-point in August, which was the first reduction since 2020. The next policy announcement is due on November 7.
Another report from the ONS showed that output prices declined for the first time in eight months in September. Output prices dropped 0.7 percent annually, reversing a 0.3 percent rise in August. Economists had forecast prices to fall 0.6 percent.
On a monthly basis, the decline in output prices deepened to 0.5 percent from 0.3 percent in the prior month. Prices were expected to fall again by 0.3 percent.
Input prices decreased 2.3 percent on a yearly basis, following a revised 1.0 percent fall in August. Monthly input prices were down 1.0 percent after a 0.3 percent drop in August. Input prices were expected to drop only by 0.5 percent.
European Shares Mostly Lower As Earnings Disappoint
(RTTNews) - European stocks were broadly lower on Wednesday as investors digested a slew of disappointing earnings updates and awaited a European Central Bank policy meeting on Thursday for directional cues.
Markets currently eye two more rate cuts from the euro area's central bank this year amid a weak growth outlook and lower inflation.
The pan-European STOXX 600 was down 0.3 percent at 518.95 after falling 0.8 percent on Tuesday.
The German DAX slipped 0.3 percent and France's CAC 40 dipped half a percent while the U.K.'s FTSE 100 was up 0.7 percent.
The British pound slumped below $1.30 mark after official data showed U.K. inflation fell below the 2 percent target and also hit the lowest in more than three years in September, piling pressure on the Bank of England to ease policy at the November meeting.
LVMH plunged 4 percent in Paris after sales of fashion and leather goods unexpectedly fell at its biggest unit for the first time since 2020.
Peers Kering, Hermes International and Richemont were down 1-2 percent.
Rexel SA lost 4 percent. The distributor of electrical supplies cut its 2024 outlook due to negative trading environment in Europe.
Stellantis NV fell about 1 percent after the automaker reported a 20 percent fall in third-quarter consolidated shipments.
ASML Holding slumped 4.3 percent after the semiconductor equipment maker announced deep cuts to its 2025 sales forecast.
Food delivery firm Just Eat Takeaway.com tumbled 3 percent as it reported a decline in orders for the third quarter.
Primary Health Properties rose over 2 percent. The British healthcare facilities investor reported an additional £2.7m in rental income in a third quarter update.
Antofagasta jumped more than 3 percent. The Chilean miner reported a 15 percent rise in third-quarter copper output.
Property developer Hammerson rallied 2.3 percent after launching a £140m share buyback program.
German sportswear giant Adidas tumbled 3.3 percent despite raising its full-year sales and profit guidance.
Dragerwerk gave up 4 percent. The breathing equipment maker for industries and hospitals registered a decline in preliminary earnings before interest and taxes for the third quarter, reflecting a drop in sales.
Swiss Market Ends Marginally Down
(RTTNews) - After a weak start and a subsequent long spell in negative territory, the Switzerland market briefly edged up into positive territory in the final hour of the session on Wednesday, but slipped and ended the day marginally down.
The benchmark SMI ended with a loss of 25.78 points or 0.21% at 12,193.07, after moving in a tight range between 12,161.05 and 12,223.11.
VAT Group dropped 4.28%, and Swatch Group closed down 2.75%. Alcon and Givaudan ended lower by 1.67% and 1.52%, respectively. Logitech International ended down 1.16%.
Lindt Spruengli, Richemont, ABB, Schindler Ps and Roche Holding closed lower by 0.6 to 1%.
Holcim ended moderately lower. The Swiss building materials company is weighing a potential dual listing of its North American subsidiary in the US and Switzerland, according to Bloomberg News.
Tecan Group plunged 14.5% following a profit warning. The laboratory instruments company announced an anticipated 12% to 14% drop in full-year 2024 sales in local currencies, compared with its previous forecast of a flat to mid-single-digit percentage decline.
Adecco gained nearly 2%. Julius Baer and SGS climbed 1.78% and 1.46%, respectively. Straumann Holding gained 1.13% and UBS Group ended up 1.05%.
Swiss Life Holding gained nearly 1%. Swisscom ended with a gain of 0.62%, while Kuehne Nagel gained 0.45%.
Japan Has Y294.3 Billion Trade Shortfall
(RTTNews) - Japan posted a merchandise trade deficit of 294.3 billion yen in September, the Ministry of Finance said on Thursday.
That missed forecasts for a shortfall of 237.6 billion yen following the downwardly revised 703.2 billion yen deficit in August (originally -695.3 billion yen).
Exports fell 1.7 percent on year to 9.038 trillion yen - shy of expectations for an increase of 0.5 percent following the downwardly revised 5.5 percent increase in the previous month (originally 5.6 percent).
Imports rose an annual 2.1 percent to 9.332 trillion yen versus expectations for a gain of 3.2 percent following the 2.3 percent increase a month earlier.
Australia Unemployment Data Due On Thursday
(RTTNews) - Australia will on Thursday release September figures for unemployment, highlighting a light day for Asia-Pacific economic activity.
The Australian economy is expected to have added 25,200 jobs last month following the addition of 47,500 jobs in August. The jobless rate (4.2 percent) and the participation rate (67.1 percent) are both seen steady.
Japan will provide September numbers for imports, exports and trade balance. Imports are expected to rose 3.2 percent on year after adding 2.3 percent in August. Exports are called higher by an annual 0.5 percent, slowing from 5.6 percent in the previous month. The trade deficit is pegged at 237.6 billion yen following the 695.3 billion yen shortfall a month earlier.
Singapore will see September figures for non-oil domestic exports; in August, NODX was down 4.7 percent on month and up 10.7 percent on year, with a trade surplus of SGD5.90 billion.
Singapore Stock Market May Reclaim 3,600-Point Level
(RTTNews) - The Singapore stock market has ticked lower in consecutive trading days, although it has given up just over 5 points or 0.15 percent in that span. The Straits Times Index now sits just above the 3,590-point plateau although it figures to stop the bleeding on Thursday.
The global forecast for the Asian markets suggests mild upside on optimism ahead of key U.S. economic data later this week. The European markets were mixed and the U.S. bourses were up and the Asian markets figure to split the difference.
The STI finished slightly lower on Wednesday as losses from the financial shares were tempered by support from the industrials and properties.
For the day, the index dipped 4.85 points or 0.13 percent to finish at the daily low of 3,590.62 after trading between 3,614.57.
Among the actives, CapitaLand Integrated Commercial Trust gained 0.48 percent, while CapitaLand Investment skidded 1.00 percent, City Developments rallied 0.97 percent, Comfort DelGro advanced 0.69 percent, DBS Group slumped 1.02 percent, DFI Retail Group surged 3.81 percent, Emperador stumbled 1.16 percent, Hongkong Land jumped 1.27 percent, Keppel DC REIT tumbled 1.32 percent, Keppel Ltd sank 0.31 percent, Mapletree Industrial Trust rose 0.41 percent, Mapletree Logistics Trust climbed 0.71 percent, Oversea-Chinese Banking Corporation lost 0.26 percent, SATS perked 0.27 percent, Seatrium Limited spiked 1.52 percent, SembCorp Industries added 0.55 percent, Singapore Technologies Engineering fell 0.22 percent, Wilmar International retreated 1.21 percent, Yangzijiang Financial declined 1.20 percent, Yangzijiang Shipbuilding soared 2.34 percent and SingTel, Thai Beverage, Frasers Logistics Commercial Trust, Frasers Centrepoint Trust, Genting Singapore and Mapletree Pan Asia Commercial Trust were unchanged.
The lead from Wall Street is upbeat as the major averages opened mixed on Wednesday but quickly headed higher and finished well in positive territory.
The Dow rallied 337.28 points or 0.79 percent to finish at 43,077.70, while the NASDAQ gained 51.49 points or 0.28 percent to close at 18,367.08 and the SP 500 added 27.21 points or 0.47 percent to end at 5,842.47.
The strength that emerged on Wall Street came on continued optimism about the strength of the U.S. economy ahead of the release of several key reports later this week including weekly jobless claims, retail sales and industrial production.
In economic news, the Labor Department released a report showing a continued decrease by prices for U.S. imports and exports in September.
Oil futures settled lower on Wednesday, weighed down by concerns about weak demand from China and easing geopolitical worries. West Texas Intermediate Crude oil futures for November ended down $0.19 at $70.39 a barrel.
Closer to home, Singapore will see September figures for non-oil domestic exports this morning; in August, NODX was down 4.7 percent on month and up 10.7 percent on year, with a trade surplus of SGD5.90 billion.
Dollar Rises Against Major Counterparts
(RTTNews) - The U.S. dollar climbed higher on Wednesday on speculation the Federal Reserve will not deliver a big interest rate cut at the next policy meeting.
Soft U.K. inflation data that resulted in a drop in Pound Sterling's value, and a weak euro ahead of the monetary policy meeting of the European Central Bank supported the greenback.
The dollar rose on rising bets for a second Donald Trump presidency and expectations the Federal Reserve will proceed with modest interest rate cuts.
Markets currently see a 95% chance of a 25 basis point rate cut from the Fed next month after an aggressive 50 basis point cut in September.
In economic news, data from the Labor Department said import prices fell by 0.4% in September after slipping by a revised 0.2% in August. The decline matched economist estimates.
Compared to the same month a year ago, import prices edged down by 0.1%, marking the first year-over-year decrease since February.
The report also said export prices slid by 0.7% in September after slumping by a revised 0.9% in August. Economists had expected export prices to fall by 0.4%.
The dollar index, which climbed to 103.61, was last seen at 103.55, up 0.28% from the previous close.
Against the Euro, the dollar firmed to 1.0861 from 1.0892.
The dollar strengthened to 1.2987 against Pound Sterling, gaining from 1.3074, after U.K. inflation fell below the 2% target and also hit the lowest in more than three years in September, piling pressure on the Bank of England to ease policy at the November meeting.
Against the Japanese currency, the dollar advanced to 149.65 yen from 149.22 yen. The dollar firmed to 0.6665 against the Aussie, from the previous close of 0.6704 a unit of the Australian currency.
The Swiss franc weakened to 0.8655 a dollar from 0.8621, while the Loonie gained against the dollar, firming to C$1.3755.
Canadian Dollar Climbs Against Majors
(RTTNews) - The Canadian dollar rose against its major counterparts in the New York session on Wednesday.
The loonie climbed to a 2-day high of 1.3767 against the greenback and a 1-week high of 1.4966 against the euro, off its early lows of 1.3793 and 1.5023, respectively.
The loonie advanced to an 8-day high of 0.9171 against the aussie and a 6-day high of 108.76 against the yen, from its early lows of 0.9239 and 108.02, respectively.
The currency is poised to challenge resistance around 1.34 against the greenback, 1.46 against the euro, 0.90 against the aussie and 110.00 against the yen.
Bargain Hunting May Boost Taiwan Stock Market
(RTTNews) - The Taiwan stock market on Wednesday halted the four-day winning streak in which it had surged more than 680 points or 3.2 percent. The Taiwan Stock Exchange now rests just above the 23,000-point plateau although it's expected to open in the green on Thursday.
The global forecast for the Asian markets suggests mild upside on optimism ahead of key U.S. economic data later this week. The European markets were mixed and the U.S. bourses were up and the Asian markets figure to split the difference.
The TSE finished sharply lower on Wednesday following losses from the financial shares, technology stocks and plastics companies.
For the day, the index stumbled 281.06 points or 1.21 percent to finish at 23,010.98 after trading between 22,866.73 and 23,258.52.
Among the actives, Cathay Financial lost 1.45 percent, while Mega Financial fell 0.51 percent, CTBC Financial dipped 0.14 percent, First Financial declined 1.10 percent, Fubon Financial shed 1.74 percent, E Sun Financial slumped 1.05 percent, Taiwan Semiconductor Manufacturing Company plunged 2.34 percent, United Microelectronics Corporation retreated 1.71 percent, Hon Hai Precision skidded 0.97 percent, Catcher Technology tanked 2.26 percent, MediaTek tumbled 1.92 percent, Delta Electronics surrendered 2.38 percent, Novatek Microelectronics rallied 1.56 percent, Formosa Plastics sank 0.83 percent, Nan Ya Plastics dropped 0.94 percent, Asia Cement stumbled 1.83 percent and Largan Precision was unchanged.
The lead from Wall Street is upbeat as the major averages opened mixed on Wednesday but quickly headed higher and finished well in positive territory.
The Dow rallied 337.28 points or 0.79 percent to finish at 43,077.70, while the NASDAQ gained 51.49 points or 0.28 percent to close at 18,367.08 and the SP 500 added 27.21 points or 0.47 percent to end at 5,842.47.
The strength that emerged on Wall Street came on continued optimism about the strength of the U.S. economy ahead of the release of several key reports later this week including weekly jobless claims, retail sales and industrial production.
In economic news, the Labor Department released a report showing a continued decrease by prices for U.S. imports and exports in September.
Oil futures settled lower on Wednesday, weighed down by concerns about weak demand from China and easing geopolitical worries. West Texas Intermediate Crude oil futures for November ended down $0.19 at $70.39 a barrel.
Rebound Anticipated For Malaysia Stock Market
(RTTNews) - The Malaysia stock market on Wednesday ended the modest two-day winning streak in which it had collected almost 10 points or 0.6 percent. The Kuala Lumpur Composite Index now sits just above the 1,630-point plateau although it figures to bounce higher again on Thursday.
The global forecast for the Asian markets suggests mild upside on optimism ahead of key U.S. economic data later this week. The European markets were mixed and the U.S. bourses were up and the Asian markets figure to split the difference.
The KLCI finished modestly lower on Wednesday following losses from the financial shares, plantation stocks and telecoms.
For the day, the index shed 9.34 points or 0.57 percent to finish at 1,632.63.
Among the actives, Axiata retreated 1.24 percent, while Celcomdigi and Sime Darby both tumbled 1.65 percent, CIMB Group declined 1.21 percent, Genting soared 2.02 percent, Genting Malaysia surged 4.48 percent, IHH Healthcare skidded 0.96 percent, IOI Corporation dipped 0.27 percent, Kuala Lumpur Kepong plummeted 2.14 percent, Maxis jumped 1.33 percent, Maybank dropped 0.56 percent, MISC rose 0.13 percent, MRDIY rallied 1.40 percent, Petronas Chemicals sank 0.53 percent, PPB Group fell 0.42 percent, Press Metal tanked 2.28 percent, Public Bank shed 0.45 percent, RHB Bank collected 0.16 percent, SD Guthrie plunged 2.33 percent, Sunway stumbled 1.35 percent, Telekom Malaysia slumped 1.07 percent, Tenaga Nasional slid 0.41 percent, YTL Corporation lost 0.43 percent, YTL Power added 0.28 percent and QL Resources, Nestle Malaysia and Petronas Dagangan were unchanged.
The lead from Wall Street is upbeat as the major averages opened mixed on Wednesday but quickly headed higher and finished well in positive territory.
The Dow rallied 337.28 points or 0.79 percent to finish at 43,077.70, while the NASDAQ gained 51.49 points or 0.28 percent to close at 18,367.08 and the SP 500 added 27.21 points or 0.47 percent to end at 5,842.47.
The strength that emerged on Wall Street came on continued optimism about the strength of the U.S. economy ahead of the release of several key reports later this week including weekly jobless claims, retail sales and industrial production.
In economic news, the Labor Department released a report showing a continued decrease by prices for U.S. imports and exports in September.
Oil futures settled lower on Wednesday, weighed down by concerns about weak demand from China and easing geopolitical worries. West Texas Intermediate Crude oil futures for November ended down $0.19 at $70.39 a barrel.
South Korea Bourse May Reverse Wednesday's Losses
(RTTNews) - The South Korea stock market on Wednesday snapped the two-day winning streak in which it had gathered more than 35 points or 1.3 percent. The KOSPI now sits just above the 2,610-point plateau although it's expected to rebound again on Thursday.
The global forecast for the Asian markets suggests mild upside on optimism ahead of key U.S. economic data later this week. The European markets were mixed and the U.S. bourses were up and the Asian markets figure to split the difference.
The KOSPI finished modestly lower on Wednesday as the financial shares, technology stocks and industrials ended mostly in the red.
For the day, the index dropped 23.09 points or 0.88 percent to finish at 2,610.36 after trading between 2,601.35 and 2,622.33. Volume was 429.5 million shares worth 9.8 trillion won. There were 551 decliners and 323 gainers.
Among the actives, Shinhan Financial tumbled 2.42 percent, while KB Financial dipped 0.21 percent, Hana Financial rallied 2.17 percent, Samsung Electronics stumbled 2.46 percent, Samsung SDI plunged 3.13 percent, LG Electronics dropped 0.91 percent, SK Hynix slumped 2.18 percent, Naver climbed 1.03 percent, LG Chem sank 0.88 percent, Lotte Chemical rose 0.22 percent, SK Innovation plummeted 3.88 percent, POSCO retreated 1.42 percent, SK Telecom added 0.36 percent, KEPCO perked 0.24 percent, Hyundai Mobis skyrocketed 7.81 percent, Hyundai Motor gained 0.41 percent and Kia Motors tumbled 1.91 percent.
The lead from Wall Street is upbeat as the major averages opened mixed on Wednesday but quickly headed higher and finished well in positive territory.
The Dow rallied 337.28 points or 0.79 percent to finish at 43,077.70, while the NASDAQ gained 51.49 points or 0.28 percent to close at 18,367.08 and the SP 500 added 27.21 points or 0.47 percent to end at 5,842.47.
The strength that emerged on Wall Street came on continued optimism about the strength of the U.S. economy ahead of the release of several key reports later this week including weekly jobless claims, retail sales and industrial production.
In economic news, the Labor Department released a report showing a continued decrease by prices for U.S. imports and exports in September.
Oil futures settled lower on Wednesday, weighed down by concerns about weak demand from China and easing geopolitical worries. West Texas Intermediate Crude oil futures for November ended down $0.19 at $70.39 a barrel.
U.S. Dollar Advances Against Most Majors
(RTTNews) - The U.S. dollar firmed against its most major counterparts in the New York session on Wednesday.
The greenback strengthened to a 2-1/2-month high of 1.0854 against the euro and near a 5-week high of 0.6657 against the aussie, off its early lows of 1.0901 and 0.6704, respectively.
The greenback reached as high as 149.79 against the yen.
The greenback rose back to 1.2984 against the pound. This may be compared to an early nearly 2-month high of 1.2981.
The greenback rose back to 0.6052 against the kiwi. This may be compared to an early 2-month high of 0.6039.
The currency is poised to challenge resistance around 1.06 against the euro, 0.63 against the aussie, 151.00 against the yen, 1.27 against the pound and 0.585 against the kiwi.
TSX Posts New Intraday, Closing Highs
(RTTNews) - The Canadian market recorded new intraday and closing highs on Wednesday thanks to strong gains in utilities, healthcare and financial sectors. The mood was positive on expectations of a larger interest rate cut by the Bank of Canada next week.
The benchmark SP/TSX Composite Index, which climbed to a high of 24,603.11, settled at 24,561.20 with a gain of 122.12 points or 0.5%.
The Utilities Capped Index climbed 2.19%. Brookfield Renewable Partners (BEP.UN.TO) soared 9.6%. Brookfield Infra Partners (BIP.UN.TO), Innergex Renewable Energy (INE.TO) and Boralex Inc (BLX.TO) gained 3.8 to 4.6%. Northland Power (NPI.TO) and TransAlta Corp (TA.TO) both gained nearly 2.5%.
Healthcare stocks Chartwell Retirement Residences (CSH.UN.TO) and Sienna Senior Living (SIA.TO) gained about 2% and 1.2%, respectively. Bausch Health Companies (BHC.TO) ended 0.8% up.
In the financials sector, Sprott Inc (SII.TO), Brookfield Asset (BAM.TO) and CI Financial Corp (CIX.TO) gained 3.8%, 3% and 2.7%, respectively. Brookfield Corp (BN.TO), Laurentian Bank (LB.TO), Canadian Imperial Bank of Commerce (CM.TO), Bank of Nova Scotia (BNS.TO), goeasy (GSY.TO) and Royal Bank of Canada (RY.TO) advanced 1 to 2%.
Materials stocks Iamgold Corp (IMG.TO), Lundin Mining (LUN.TO), Ivanhoe Mines (IVN.TO), Hudbay Minerals (HBM.TO), First Quantum Minerals (FM.TO) and Capstone Mining (CS.TO) gained 2 to 3.1%.
Lithium Americas Corp (LAC.TO) shares soared nearly 23% after the company said that it will form a joint venture with General Motors Holdings to focus on advancing the Thacker Pass project in Nevada.
Corus Entertainment (CJR.B.TO) announced late Tuesday that it is continuing to negotiate with RBC Capital Markets, TD Securities and other members of the bank group as the company seeks an amendment to its credit agreement so as to strengthen its balance sheet and manage liabilities.
In economic news, data from Canada Mortgage Housing Corporation said housing starts in Canada increased by 5% over a month to 223,808 units in September.
Data from Statistics Canada showed manufacturing sales in Canada decreased by 1.3% month-over-month in August, following a downwardly revised 1.1% rise in July.
Another data from Statistics Canada said car registrations in Canada decreased to 168,620 units in August from 169,327 units in July.
Australian Dollar Rises On Solid Jobs Data
(RTTNews) - The Australian dollar strengthened against other major currencies in the Asian session on Thursday, after the release of a strong Australian employment report in September.
Data from the Australian Bureau of Statistics showed that the unemployment rate in Australia came in at a seasonally adjusted 4.1 percent in September. That was below estimates for 4.2 percent, which would have been unchanged from the August reading.
The Australian economy added 64,100 jobs last month, blowing away forecasts for an increase of 25,200 jobs following the addition of 47,500 jobs in the previous month.
Asian stock markets traded higher, as investors continued to benefit from optimism about the outlook for interest rates following the release of the latest U.S. inflation data.
Following the recent latest batch of economic data, CME Group's FedWatch tool is indicating a 94.2 percent chance the U.S. Fed will lower interest rates by a quarter point next month.
Gains in energy and financial stocks as well as some mining and technology stocks, also led to the upturn of investor sentiment.
In the Asian trading today, the Australian dollar rose to 2-day highs of 0.6711 against the U.S. dollar, 100.22 against the yen and 1.6191 against the euro, from yesterday's closing quotes of 0.6666, 99.74 and 1.6288, respectively. If the aussie extends its uptrend, it is likely to find resistance around 0.69 against the greenback, 102.00 against the yen and 1.59 against the euro.
Against the Canada and the New Zealand dollars, the aussie edged up to 0.9225 and 1.1046 from Wednesday's closing quotes of 0.9166 and 1.1002, respectively. The next possible upside target for the aussie is seen around 0.93 against the loonie and 1.11 against the kiwi.
Looking ahead, Eurostat releases the euro area final inflation data for September is due to be released at 5:00 am ET. The flash estimate showed that inflation eased to 1.8 percent in September from 2.2 percent in August. Foreign trade data is also due. The trade surplus is seen at EUR 17.8 billion in August compared to EUR 21.2 billion in July.
At 8:15 am ET, the European Central Bank will announce its key interest rates. The bank is forecast to cut the key rates by 25 basis points today after a similar reduction last month. The deposit facility rate, which is the new policy rate, is likely to be lowered to 3.25 percent.
In the New York session, U.S. retail sales data for September, U.S. weekly jobless claims data, U.S. industrial and manufacturing productions data, both for September, business inventories for August, U.S. NAHB housing market index for October and U.S. EIA crude oil data are slated for release.
Australia Jobless Rate Falls To 4.1% In September
(RTTNews) - The unemployment rate in Australia came in at a seasonally adjusted 4.1 percent in September, the Australian Bureau of Statistics said on Thursday.
That was below estimates for 4.2 percent, which would have been unchanged from the August reading.
The Australian economy added 64,100 jobs last month, blowing away forecasts for an increase of 25,200 jobs following the addition of 47,500 jobs in the previous month.
The participation rate ticked up to 67.2 percent, beating expectations for 67.1 percent - which would have been unchanged.
Swiss Franc Falls Against Majors
(RTTNews) - The Swiss franc weakened against other major currencies in the European session on Thursday.
The Swiss franc fell to nearly a 2-week low of 172.39 against the yen and nearly a 2-month low of 0.8670 against the U.S. dollar, from early highs of 172.81 and 0.8653, respectively.
Against the euro and the pound, the franc edged down to 0.9412 and 1.1260 from early highs of 0.9396 and 1.1240, respectively.
If the franc extends its downtrend, it is likely to find support around 169.00 against the yen, 0.88 against the greenback, 0.95 against the euro and 1.13 against the pound.
Mixed Trend In Asian Markets
(RTTNews) - Equity markets in Asia traded on a mixed note ahead of elections in Japan over the weekend and uncertainty over the impact on Bank of Japan's monetary policy stance. However positive sentiment prevailed in the Chinese bourses ahead of the upcoming session of China's top legislature in the first week of November.
China's Shanghai Composite Index rallied 0.64 percent to finish trading at 3,301.42. The day's trading ranged between 3,319.36 and 3,276.13. The Shenzhen Component Index jumped 1.7 percent to close at 10,619.85.
The Japanese benchmark Nikkei 225 slipped 0.60 percent to close at 37,913.92. The day's trading range was between 38,028.14 and 37,713.00.
Konica Minolta topped with overnight gains of 7.3 percent followed by Nidec Corp that added 4.6 percent. SUMCO Corp, Mazda Motor Corp and Kanadevia Corp, all added more than 1 percent.
Sumitomo Dainippon Pharma Co shed 6.3 percent overnight. Kawasaki Kisen Kaisha slipped 4.3 percent. Nippon Yusen and Mitsui O.S.K. Lines erased more than 3 percent whereas Advantest Corp lost 2.9 percent.
The Hang Seng Index of the Hong Kong Stock Exchange added 100.5 points or 0.49 percent from the previous close to finish trading at 20,590.15. The day's trading range was between a high of 20,784.47 and a low of 20,521.95.
Korean Stock Exchange's Kospi Index edged up 0.09 percent or 2.2 points to close trading at 2,583.27. The day's trading range was between 2,577 and 2,611.27.
Australia's SP/ASX200 closed trading at 8,211.30, gaining 5 points or 0.06 percent. The day's trading range was between 8,206.30 and 8,248.10.
Shares of software business WiseTech Global jumped 12 percent following announcement that CEO has shifted to a different role. Insignia Financial followed with gains of 7.3 percent. Healthcare business Resmed DRC gained 5.9 percent. Gold miner Northern Star Resources and Whitehaven Coal also added close to 5 percent.
Mineral Resources, Reliance Worldwide Corporation and Super Retail Group, all slipped more than 4 percent. Bank of Queensland and Metcash followed with losses of more than 3 percent.
The NZX 50 of the New Zealand Stock Exchange shed 42 points or 0.33 percent to close trading at 12,771.61, versus the previous close of 12,814.07. Trading ranged between 12,742.64 and 12,838.16.
Agribusiness Scales Corporation, SkyCity Entertainment Group and real estate business Kiwi Property Group gained more than 2 percent in Friday's trading. Banking business Heartland Group Holdings and Freightways also added close to 2 percent.
KMD Brands topped losses with a decline of 4.3 percent. Software business Serko also recorded losses in excess of 4 percent. The a2 Milk Company, Synlait Milk and software business Vista Group International, all shed more than 2 percent in Friday's trading.
Wall Street had closed on a mixed note on Thursday, amidst the latest earnings updates, mixed economic data and an easing in treasury yields. While the Fed's Beige book painted a weak economic picture, Thursday's weekly data showed an unexpected decline in initial jobless claims. Nasdaq Composite added 0.76 percent to close trading at 18,415.49 whereas the Dow Jones Industrial Average shed 0.33 percent to finish trading at 42,374.36.
Sensex, Nifty Open Lower As Focus Shifts To Earnings
(RTTNews) - Indian shares opened on a cautious note Thursday as focus shifted to a batch of earnings due later in the day.
The benchmark SP/BSE Sensex was down 297 points, or 0.4 percent, at 81,204 in early trade while the broader NSE Nifty index was down 157 points, or 0.6 percent, at 24,814.
Axis Bank fell 1.2 percent while Infosys rose nearly 2 percent and Wipro added 0.6 percent ahead of their earnings.
Bajaj Auto plummeted almost 9 percent as it reported a 31.4 percent fall in consolidated net profit after tax (PAT)for the second quarter of the financial year 2024-25.
Cochin Shipyard declined 1.5 percent. The government intends to sell a 5 percent stake in the company through the offer for sale route.
GMR Airports fell about 2 percent after reporting passenger and cargo traffic figures for September 2024 and the first half of FY25.
Oberoi Realty declined 2.5 percent after its board approved a Rs. 1,500 crore NCD issue via private placement.
Kolte-Patil Developers soared 11 percent after releasing its Q2 business update.
RVNL rallied 5 percent on bagging a Rs. 270-crore contract from Maharashtra Metro Rail.
CRISIL jumped 4.3 percent as it reported a 13 percent rise in Q3 net profit.
Reliance Industries gained half a percent after it fixed the record date for a 1:1 bonus issue.
Australian Dollar Rises Against Majors
(RTTNews) - The Australian dollar strengthened against other major currencies in the Asian session on Thursday.
The Australian dollar rose to 2-day highs of 0.6711 against the U.S. dollar, 100.22 against the yen and 1.6191 against the euro, from yesterday's closing quotes of 0.6666, 99.74 and 1.6288, respectively.
Against the Canada and the New Zealand dollars, the aussie edged up to 0.9225 and 1.1046 from Wednesday's closing quotes of 0.9166 and 1.1002, respectively.
If the aussie extends its uptrend, it is likely to find resistance around 0.69 against the greenback, 102.00 against the yen, 1.59 against the euro, 0.93 against the loonie and 1.11 against the kiwi.
Asian Markets Track Wall Street Higher
(RTTNews) - Asian stock markets are trading mostly higher on Thursday, following the broadly positive cues from Wall Street overnight, as markets continued to benefit from optimism about the outlook for interest rates following the release of the latest US inflation data. Asian Markets closed mostly lower on Wednesday.
Following the recent latest batch of economic data, CME Group's FedWatch tool is indicating a 94.2 percent chance the US Fed will lower interest rates by a quarter point next month.
The Australian market is trading significantly higher on Thursday, reversing the losses in the previous session, following the broadly positive cues from Wall Street overnight. The benchmark SP/ASX 200 is moving above the 8,300 level to fresh all-time highs, with gains in energy and financial stocks as well as some mining and technology stocks.
The benchmark SP/ASX 200 Index is gaining 60.40 points or 0.73 percent to 8,345.10, after touching an all-time high of 8,384.50 earlier. The broader All Ordinaries Index is up 57.00 points or 0.67 percent to 8,613.60. Australian stocks ended modestly lower on Wednesday.
Among major miners, Rio Tinto, Mineral Resources and Fortescue Metals are edging up 0.1 to 0.3 percent each, while BHP Group is edging down 0.2 percent.
Oil stocks are mostly higher. Woodside Energy, Beach energy and Santos are edging up 0.1 to 0.4 percent each, while Origin Energy is gaining almost 1 percent.
In the tech space, Afterpay owner Block is gaining almost 3 percent, Xero is adding more than 1 percent and Zip is edging up 0.2 percent, while WiseTech Global is declining almost 4 percent and Appen is losing more than 3 percent.
Among the big four banks, Commonwealth Bank and ANZ Banking are gaining almost 1 percent each, while National Australia Bank is adding more than 1 percent and Westpac is advancing almost 2 percent.
Among gold miners, Evolution Mining and Northern Star Resources are edging down 0.1 to 0.4 percent each, while Resolute Mining is gaining more than 1 percent, Gold Road Resources is edging up 0.5 percent and Newmont is adding almost 1 percent.
In other news, shares in AMP Ltd are surging almost 14 percent after the wealth manager reported strong business growth in the third quarter.
In economic news, the unemployment rate in Australia came in at a seasonally adjusted 4.1 percent in September, the Australian Bureau of Statistics said on Thursday. That was below estimates for 4.2 percent, which would have been unchanged from the August reading.
The Australian economy added 64,100 jobs last month, blowing away forecasts for an increase of 25,200 jobs following the addition of 47,500 jobs in the previous month. The participation rate ticked up to 67.2 percent, beating expectations for 67.1 percent - which would have been unchanged.
In the currency market, the Aussie dollar is trading at $0.670 on Thursday.
Adding to the losses in the previous session, the Japanese market is notably lower on Thursday after opening in the green, despite the broadly positive cues from Wall Street overnight. The Nikkei 225 is falling well below the 39,000 mark, with weakness in exporters and technology stocks partially offset by gains in automakers and financial stocks.
Traders also reacted to domestic data that showed Japan posting a trade deficit in September as exports unexpectedly declined, while imports growth slowed.
The benchmark Nikkei 225 Index closed the morning session at 38,944.93, down 235.37 points or 0.60 percent, after touching a high of 39,299.74 and a low of 38,932.69 earlier. Japanese shares ended sharply lower on Wednesday.
Market heavyweight SoftBank Group is edging down 0.4 percent, while Uniqlo operator Fast Retailing is edging up 0.3 percent. Among automakers, Toyota is gaining almost 2 percent and Honda is adding almost 1 percent.
In the tech space, Tokyo Electron is losing more than 2 percent, Advantest is declining almost 3 percent and Screen Holdings is down almost 1 percent.
In the banking sector, Mizuho Financial and Mitsubishi UFJ Financial are gaining almost 2 percent each, while Sumitomo Mitsui Financial is adding more than 1 percent.
Among the major exporters, Sony and Canon are edging down 0.1 to 0.2 percent each, while Mitsubishi Electric is losing almost 1 percent each. Panasonic is advancing almost 1 percent.
Among other major losers, Fujikura is losing almost 5 percent and ZOZO is down more than 3 percent, while BANDAI NAMCO and Hoya are declining almost 3 percent each.
Conversely, Chubu Electric Power is surging more than 4 percent, while Tokyo Electric Power and Kansai Electric Power are gaining almost 4 percent each. Toho is adding more than 3 percent and Subaru is advancing almost 3 percent.
In economic news, Japan posted a merchandise trade deficit of 294.3 billion yen in September, the Ministry of Finance said on Thursday. That missed forecasts for a shortfall of 237.6 billion yen following the downwardly revised 703.2 billion yen deficit in August (originally -695.3 billion yen).
Exports fell 1.7 percent on year to 9.038 trillion yen - shy of expectations for an increase of 0.5 percent following the downwardly revised 5.5 percent increase in the previous month (originally 5.6 percent). Imports rose an annual 2.1 percent to 9.332 trillion yen versus expectations for a gain of 3.2 percent following the 2.3 percent increase a month earlier.
In the currency market, the U.S. dollar is trading in the lower 149 yen-range on Thursday.
Elsewhere in Asia, Hong Kong and Singapore are up 1.3 and 1.0 percent, respectively, while New Zealand, China, South Korea, Malaysia and Indonesia are higher by between 0.1 and 0.6 percent each. Taiwan is relatively flat.
On Wall Street, stocks showed a lack of direction early in the session on Wednesday but moved mostly higher over the course of the trading day. With the upward move, the Dow more than offset the loss posted during Tuesday's session, reaching a new record closing high.
The major averages bounced back and forth across the unchanged line in early trading but climbed more firmly into positive territory as the day progressed. The Dow jumped 337.28 points or 0.8 percent to 43,077.70, the Nasdaq rose 51.49 points or 0.3 percent to 18,367.08 and the SP 500 climbed 27.21 points or 0.5 percent to 5,842.47.
Meanwhile, the major European markets turned in a mixed performance on the day. While the U.K.'s FTSE 100 Index jumped by 1.0 percent, the German DAX Index slipped by 0.3 percent and the French CAC 40 Index fell by 0.4 percent.
Crude oil prices settled lower on Wednesday, weighed down by concerns about weak demand from China and easing geopolitical worries. West Texas Intermediate Crude oil futures for November ended down $0.19 at $70.39 a barrel.
European Shares Seen Mixed At Open
(RTTNews) - European stocks are seen opening on a mixed note Thursday, with the FTSE 100 likely to tick higher as the British pound dropped below $1.30 for the first time since August amid bets that slower inflation could pave the way for the Bank of England to cut interest rates again next month.
The European Central Bank (ECB) announces its interest-rate decision later in the day, with a 25-bps cur largely factored in.
Across the Atlantic, trading later in the day may be influenced by reaction to the release of reports on weekly jobless claims, retail sales and industrial production.
Asian markets were mostly higher after China's housing ministry said it will expand a "white list" of housing projects eligible for financing and increase bank lending for such developments to 4 trillion yuan ($562 billion).
Gold hovered near record levels on a softer dollar. while oil edged up slightly after four days of declines on China demand concerns and worries over a global glut.
Meanwhile, Israeli strikes continue in Lebanon and Gaza and U.S. officials expect Israel to respond to Iran's October attack before November 5.
U.S. stocks closed higher overnight after upbeat earnings from Morgan Stanley and United Airlines.
The Dow climbed 0.8 percent to a new record closing high, while the SP 500 added half a percent and the tech-heavy Nasdaq Composite edged up 0.3 percent.
European stocks fell broadly on Wednesday as tech and luxury stocks tumbled in the wake of disappointing results from industry heavyweights ASML and LVMH.
The pan European STOXX 600 eased 0.2 percent. The German DAX slipped 0.3 percent and France's CAC 40 dipped 0.4 percent while the U.K.'s FTSE 100 rallied 1 percent as weak inflation data fuelled rate-cut hopes.
German Business Confidence Improves For First Time In 5 Months
(RTTNews) - German business confidence improved for the first time in five months in October but remained at a low level suggesting weaker economic activity, survey results from the ifo Institute showed Friday.
The business climate index climbed to 86.5 in October from 85.4 in the previous month. The score was forecast to rise to 85.6.
This was the first rise in five months and remained above economists' forecast of 85.6.
Companies were more satisfied with their current situation and their expectations were brighter but marked by skepticism.
The current situation index unexpectedly advanced to 85.7 in October from 84.4 a month ago. The reading was seen at 84.1. The expectations index posted 87.3, up from 86.4 in September and forecast of 86.8.
"The German economy stopped the decline for the time being," Ifo Institute President Clemens Fuest said.
The rise in the business climate index still left it deep in recessionary territory, Capital Economics' economist Franziska Palmas said. With growth in the rest of the euro area also weak, the European Central Bank is set to cut its deposit rate by 50 basis points in December, the economist added.
The downward trend in the manufacturing sector halted due to noticeably less pessimistic expectations by the companies. However, they assessed the current business situation as considerably worse.
In the service sector, the business climate index returned to positive territory. Services companies were noticeably more satisfied with the current situation and their expectations rose slightly.
In trade, business confidence rose somewhat. Although expectations improved slightly, firms were less satisfied with the current business situation.
By contrast, business confidence in trade worsened due to more pessimistic expectations by the companies. However, traders assessed the current business situation as somewhat better.
