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Canadian Dollar Advances As Oil Prices Gain
(RTTNews) - The Canadian dollar climbed against its major counterparts in the New York session on Monday, as oil prices rose after OPEC+ agreed to push back its December production increase by at least a month, prioritizing price support over regaining market share.
Crude for December delivery rose $1.68 to $71.17 per barrel.
The group led by Saudi Arabia and Russia was supposed to begin a series of monthly production increases by adding 180,000 barrels a day from December.
Now, the decision has been postponed due to recent pressure on prices from weak demand growth, especially in China and Europe.
Oil prices also remain supported by persisting Middle East tensions and expectations of China's fiscal stimulus.
Iran's Supreme Leader Ayatollah Ali Khamenei has vowed that Israel and the U.S. would face a "teeth-breaking response" for their actions against the country.
The Wall Street Journal reported that Iran is planning a complex attack on Israel, which may include missiles with high-powered warheads.
The loonie edged up to 0.9146 against the aussie and 1.5117 against the euro, from an early 10-day low of 0.9205 and more than a 2-month low of 1.5170, respectively. The currency is poised to challenge resistance around 0.90 against the aussie and 1.49 against the euro.
The loonie touched 1.3875 against the greenback, setting a 10-day high. If the loonie rises further, it is likely to test resistance around the 1.36 region.
The loonie rebounded to 109.56 against the yen, off an early low of 109.00. The currency is likely to locate resistance around the 110.5 level.
Canadian Shares Turning In Mixed Performance; TSX Down Marginally
(RTTNews) - Canadian stocks are turning in a mixed performance on Monday with investors looking ahead to the U.S. Presidential election on Tuesday and the Federal Reserve's monetary policy announcement. Energy stocks are faring well thanks to higher oil prices.
The benchmark SP/TSX Composite Index was down 30.41 points or 0.13% at 24,224.75 a little whilea go.
The Energy Capped Index is up 1.2%. Tamarack Valley Energy (TVE.TO), MEG Energy (MEG.TO) and Headwater Exploration (HWX.TO) are gaining 4.2 to 4.7%. Athabasca Oil Corp (ATH.TO), Baytex Energy (BTE.TO), Vermilion Energy (VET.TO), Pason Systems (PSI.TO), Veren Inc (VRN.TO) and Precision Drilling Corporation (PD.TO) are up 3 to 3.75%.
Nutrien (NTR.TO), Tecsys Inc (TCS.TO), TerraVest Industries (TVK.TO), Celestica Inc (CLS.TO), Brookfield Renewable Corporation (BEPC.TO), Ag Growth International (AFN.TO), Onex Corporation (ONEX.TO), Bank of Nova Scotia (BNS.TO), EQB Inc (EQB.TO) and Dollarama Inc (DOL.TO) are up 1.5 to 4.3%.
STEP Energy Services Ltd. (STEP.TO) shares are up more than 40% after the company announced that it has entered into a definitive arrangement agreement with Alberta Ltd. and the limited partnerships comprising ARC Energy Fund 8 (a private equity fund advised by ARC Financial Corp.) (collectively, " ARC ") to take the Company private in an all-cash transaction.
BCE Inc (BCE.TO) shares are plunging nearly 10%. ATCO Ltd. (ACO.Y.TO) is down 3.7% and Fairfax Financial Holdings (FFH.TO) is declining 3.2%, while Sprott Inc (SII.TO), Cameco Corporation (CCO.TO), Kinaxis Inc (KXS.TO), Bombardier Inc (BBD.B.TO), Dayforce (DAY.TO), Bank of Montreal (BMO.TO) and Constellation Software (CSU.TO) are down 1 to 2.3%.
South Korea Shares May Turn Lower Again
(RTTNews) - The South Korea stock market on Monday halted the three-day losing streak in which it had stumbled almost 75 points or 2.9 percent. The KOSPI now sits just beneath the 2,590-point plateau, although it may hand back those gains on Tuesday.
The global forecast for the Asian markets is flat to lower ahead of the U.S. presidential election and the Federal Reserve rate decision this week. The European and U.S. markets were down and the Asian bourses are tipped to open in similar fashion.
The KOSPI finished sharply higher on Monday following gains from the technology stocks and industrials, while the financials and chemical companies were mixed.
For the day, the index rallied 46.61 points or 1.83 percent to finish at the daily high of 2,588.97 after trading as low as 2,542.68. Volume was 367.8 million shares worth 7.9 trillion won. There were 619 gainers and 254 decliners.
Among the actives, Shinhan Financial collected 0.93 percent, while KB Financial slumped 1.20 percent, Hana Financial retreated 1.31 percent, Samsung Electronics added 0.69 percent, Samsung SDI jumped 1.81 percent, LG Electronics improved 1.65 percent, SK Hynix surged 6.46 percent, Naver spiked 3.01 percent, LG Chem climbed 1.73 percent, Lotte Chemical dropped 0.97 percent, SK Innovation lost 0.57 percent, POSCO rallied 2.37 percent, SK Telecom dipped 0.18 percent, KEPCO rose 0.22 percent, Hyundai Motor strengthened 1.41 percent, Kia Motors accelerated 3.29 percent and Hyundai Mobis was unchanged.
The lead from Wall Street is soft as the major averages opened lower on Monday, hugged the line for much of the day and finished in the red.
The Dow stumbled 257.59 points or 0.61 percent to finish at 41,794.60, while the NASDAQ shed 59.93 points or 0.33 percent to close at 18,179.98 and the SP 500 sank 16.11 points or 0.28 percent to end at 5,712.69.
The choppy trading on Wall Street came as traders seemed reluctant to make significant moves ahead of the U.S. elections on Tuesday, as Vice President Kamala Harris faces off against former President Donald Trump.
With polls showing an extremely tight race between Harris and Trump, the outcome of the presidential election may not be known on Election Day.
Traders were also looking ahead to the Federal Reserve's monetary policy decision, which is due to be announced on Thursday. The Fed is widely expected to lower interest rates by another 25 basis points, but traders will be looking to the accompanying statement for clues about the likelihood of future rate cuts.
Oil prices rose sharply on Monday, buoyed by OPEC's decision to delay plans to increase production, and on rising concerns about tensions in the Middle East. West Texas Intermediate crude oil futures for December closed up $1.98 or about 2.85% at $71.47 a barrel, extending gains to a fourth straight session.
Closer to home, South Korea will provide October figures for consumer prices later this morning, with forecasts suggesting an increase of 0.2 percent on month and 1.4 percent on year. That follows the 0.1 percent monthly increase and the 1.6 percent yearly gain in September.
Renewed Consolidation Anticipated For Singapore Stock Market
(RTTNews) - The Singapore stock market on Monday ended the two-day slide in which it had dropped almost 35 points or 1 percent. The Straits Times Index now sits just above the 3,570-point plateau although it figures to head south again on Tuesday.
The global forecast for the Asian markets is flat to lower ahead of the U.S. presidential election and the Federal Reserve rate decision this week. The European and U.S. markets were down and the Asian bourses are tipped to open in similar fashion.
The STI finished modestly higher on Monday following gains from the property stocks and mixed performances from the financial shares and industrials.
For the day, the index improved 16.61 points or 0.47 percent to finish at 3,572.04 after trading between 3,566.42 and 3,582.04.
Among the actives, CapitaLand Integrated Commercial Trust rose 0.49 percent, while CapitaLand Investment climbed 1.06 percent, City Developments added 0.77 percent, DBS Group collected 0.80 percent, Frasers Centrepoint Trust plunged 2.67 percent, Genting Singapore rallied 1.18 percent, Hongkong Land skyrocketed 7.14 percent, Keppel Ltd lost 0.31 percent, Mapletree Pan Asia Commercial Trust advanced 0.78 percent, Mapletree Industrial Trust jumped 1.25 percent, Mapletree Logistics Trust accelerated 1.52 percent, Oversea-Chinese Banking Corporation and Venture Corporation both eased 0.07 percent, SATS shed 0.50 percent, SembCorp Industries spiked 1.81 percent, Singapore Technologies Engineering fell 0.22 percent, SingTel gained 0.65 percent, Thai Beverage soared 2.00 percent, Wilmar International was up 0.32 percent, Yangzijiang Financial surged 2.53 percent, Yangzijiang Shipbuilding sank 0.79 percent and Comfort DelGro, Emperador, Keppel DC REIT and Seatrium Limited were unchanged.
The lead from Wall Street is soft as the major averages opened lower on Monday, hugged the line for much of the day and finished in the red.
The Dow stumbled 257.59 points or 0.61 percent to finish at 41,794.60, while the NASDAQ shed 59.93 points or 0.33 percent to close at 18,179.98 and the SP 500 sank 16.11 points or 0.28 percent to end at 5,712.69.
The choppy trading on Wall Street came as traders seemed reluctant to make significant moves ahead of the U.S. elections on Tuesday, as Vice President Kamala Harris faces off against former President Donald Trump.
With polls showing an extremely tight race between Harris and Trump, the outcome of the presidential election may not be known on Election Day.
Traders were also looking ahead to the Federal Reserve's monetary policy decision, which is due to be announced on Thursday. The Fed is widely expected to lower interest rates by another 25 basis points, but traders will be looking to the accompanying statement for clues about the likelihood of future rate cuts.
Oil prices rose sharply on Monday, buoyed by OPEC's decision to delay plans to increase production, and on rising concerns about tensions in the Middle East. West Texas Intermediate crude oil futures for December closed up $1.98 or about 2.85% at $71.47 a barrel, extending gains to a fourth straight session.
Closer to home, Singapore will see September figures for retail sales later today; In August, sales were up 0.7 percent on month and 0.6 percent on year.
Canadian Markets Ends Flat
(RTTNews) - After a weak start and a subsequent swift recovery that resulted in a brief spell in positive territory, the Canadian market fell into the red around late morning on Monday, and finally ended the day's session on a flat note.
The mood was cautious with investors looking ahead to the U.S. Presidential election on Tuesday and the Federal Reserve's monetary policy announcement later in the week.
The benchmark SP/TSX Composite Index ended at 24,256.06, up less than a point from the previous close. The index, which climbed to 24,353.36 early morning, dropped to a low of 24,162.22 at noon.
Energy stocks moved up as oil prices rose sharply. Real estate stocks were the other prominent gainers. Communications shares closed weak.
STEP Energy Services (STEP.TO) zoomed more than 40% after the company announced that it has entered into a definitive arrangement agreement with Alberta Ltd. and the limited partnerships comprising ARC Energy Fund 8 (a private equity fund advised by ARC Financial Corp.) (collectively, " ARC ") to take the Company private in an all-cash transaction.
Nutrien (NTR.TO), TerraVest Industries (TVK.TO), Brookfield Renewable Partners (BEP.UN.TO), Brookfield Renewable Corporation (BEPC.TO), Tecsys Inc (TCS.TO), Precision Drilling Corporation (PD.TO), Cogeco Inc (CGO.TO), Celestica Inc (CLS.TO) and Brookfield Asset Management (BAM.TO) gained 2.5 to 4.6%.
Dollarama Inc (DOL.TO), Bank of Nova Scotia (BNS.TO), EQB Inc (EQB.TO), TFI International (TFII.TO) and Boyd Group Services (BYD.TO) also moved up sharply.
BCE Inc (BCE.TO) tanked 9.7%. BCE announced today that its unit Bell Canada has entered into a definitive agreement to acquire Ziply Fiber in a deal with a transaction value of around C$7.0 billion. The consideration comprises around C$5.0 billion in cash and the assumption of outstanding net debt of around C$2.0 billion to be rolled over at transaction close.
Transcontinental Inc (TCL.B.TO) declined nearly 7%. Fairfax Financial Holdings (FFH.TO), ATCO Ltd (ACO.Y.TO), Cameco Corporation (CCO.TO), Sprott Inc (SII.TO) and Bombardier Inc (BBD.B.TO) lost 2 to 4%. Kinaxis Inc (KXS.TO), Bank of Montreal (BMO.TO) and goeasy (GSY.TO) also ended notably lower.
Dollar Slips Against Major Counterparts Ahead Of US Presidential Election
(RTTNews) - The U.S. dollar shed ground on Monday with traders unwinding some long positions ahead of the presidential election. Traders are also eying the Federal Reserve's monetary policy announcement, due on Thursday.
The rising odds of Kamala Harris winning the U.S. presidential election due on Tuesday, also led to the downward pressure of the currency.
The dollar index dropped to a nine-day low to 103.58 in the European session, but pared some losses as the day progressed, and was at 103.91 a little while ago, down 0.36% from the previous close.
Against the Euro, the dollar was down at 1.0875, easing from 1.0835 a unit of the European currency. Against Pound Sterling, the dollar was down marginally at $1.2954.
The dollar weakened against the Japanese currency to 152.17 yen a unit, from 152.99 yen. Against the Aussie, the dollar was down nearly 0.4% at 0.6585.
The Swiss franc strengthened to 0.8644 against the greenback, firming from 0.8700. The Loonie firmed to 1.3903 a dollar, from 1.3961, as oil prices rose sharply after OPEC+ decided to delay output increase plans.
Singapore Private Sector Ebbs In October - S&P Global
(RTTNews) - The private sector in Singapore continued to expand in October, albeit at a slower rate, the latest survey from SP Global revealed on Tuesday with a PMI score of 55.5.
That's down from 56.6, although it remains above the boom-or-bust line that separates expansion from contraction.
Incoming new orders for Singaporean goods and services expanded sharply in October, driven by improvements in underlying demand conditions and successive business development efforts. New sales rose the quickest in the wholesale and retail sector according to detailed sector data.
The marked increase in new business contributed to an acceleration of business activity growth. The level of backlogged work also rose sharply, with firms in the real estate business services experiencing the most pronounced accumulation.
Australia Services Sector Accelerates In October - Judo Bank
(RTTNews) - The services sector in Australia continued to expand in October, and at a faster rate, the latest survey from Judo Bank revealed on Tuesday with a PMI score of 51.0.
That's up from 50.5, and it moves further above the boom-or-bust line that separates expansion from contraction.
Higher new business inflows underpinned the latest acceleration of activity growth in October. The rate of expansion was solid and the fastest since May 2022. Improvements in underlying demand and business development efforts bearing fruit were mentioned as reasons for the uptick in new work, with firms in the finance and insurance sector recording the fastest rise in new business.
Additionally, growth in new work was concentrated domestically as export business shrank for a second consecutive month.
China Services PMI Improves To 52.0 In October - Caixin
(RTTNews) - The services sector in China continued to expand in October, and at a faster rate, the latest survey from Caixin revealed on Tuesday with a PMI score of 52.0.
That's up from 50.3, and it moves further above the boom-or-bust line that separates expansion from contraction.
Improvements in underlying demand and market conditions underpinned growth in new business inflows in October. The rate of expansion rose for the first time in four months though remained modest overall. Growth in new work was supported by another solid increase in export business which panelists attributed to successive business development efforts and rising interests from foreign markets such as the US.
Capacity pressure was meanwhile observed in the service sector. Despite faster services activity growth, backlogs accumulated again and at a slightly quicker pace than in September.
Soft Start Predicted For Taiwan Stock Market
(RTTNews) - The Taiwan stock market on Monday ended the four-day losing streak in which it had stumbled more than 565 points or 2.7 percent. The Taiwan Stock Exchange now rests just above the 22,965-point plateau although it's likely to open under water again on Tuesday.
The global forecast for the Asian markets is flat to lower ahead of the U.S. presidential election and the Federal Reserve rate decision this week. The European and U.S. markets were down and the Asian bourses are tipped to open in similar fashion.
The TSE finished modestly higher on Monday following gains from the financial shares and technology stocks.
For the day, the index advanced 185.31 points or 0.81 percent to finish at 22,965.39 after trading between 22,792.77 and 23,020.99.
Among the actives, Cathay Financial improved 1.46 percent, while Mega Financial rallied 1.81 percent, CTBC Financial and Fubon Financial both accelerated 2.10 percent, E Sun Financial collected 1.86 percent, Taiwan Semiconductor Manufacturing Company gained 1.46 percent, United Microelectronics Corporation slumped 1.29 percent, Hon Hai Precision soared 2.88 percent, Largan Precision spiked 2.18 percent, Catcher Technology advanced 1.08 percent, MediaTek increased 0.39 percent, Delta Electronics climbed 1.15 percent, Novatek Microelectronics tumbled 1.70 percent, Formosa Plastics shed 0.64 percent, Nan Ya Plastics rose 0.24 percent and Asia Cement jumped 1.73 percent.
The lead from Wall Street is soft as the major averages opened lower on Monday, hugged the line for much of the day and finished in the red.
The Dow stumbled 257.59 points or 0.61 percent to finish at 41,794.60, while the NASDAQ shed 59.93 points or 0.33 percent to close at 18,179.98 and the SP 500 sank 16.11 points or 0.28 percent to end at 5,712.69.
The choppy trading on Wall Street came as traders seemed reluctant to make significant moves ahead of the U.S. elections on Tuesday, as Vice President Kamala Harris faces off against former President Donald Trump.
With polls showing an extremely tight race between Harris and Trump, the outcome of the presidential election may not be known on Election Day.
Traders were also looking ahead to the Federal Reserve's monetary policy decision, which is due to be announced on Thursday. The Fed is widely expected to lower interest rates by another 25 basis points, but traders will be looking to the accompanying statement for clues about the likelihood of future rate cuts.
Oil prices rose sharply on Monday, buoyed by OPEC's decision to delay plans to increase production, and on rising concerns about tensions in the Middle East. West Texas Intermediate crude oil futures for December closed up $1.98 or about 2.85% at $71.47 a barrel, extending gains to a fourth straight session.
Sensex, Nifty Extend Losses For Second Day
(RTTNews) - Indian shares traded lower for a second straight session on Tuesday due to persisting Middle East tensions and uncertainty surrounding the closely contested U.S. presidential election.
The benchmark SP/BSE Sensex was down 185 points, or 0.2 percent, at 78,598 following its steepest decline in a month the previous day.
The broader NSE Nifty index dropped 50 points, or 0.2 percent, to 23,945.
Apollo Hospitals Enterprise, ITC, Shriram Finance, Trent and Adani Ports fell 1-2 percent while Hindalco, Tata Steel and IndusInd Bank all were up over 1 percent.
IRCTC fell about 1 percent on reporting a marginal rise in Q2 net profit.
ABB India tumbled 3.8 percent after quarterly results missed estimates.
Asian Markets Mixed Amid Cautious Trades
(RTTNews) - Asian stock markets are trading mixed on Tuesday, following the broadly negative cues from Wall Street overnight, as traders remained cautious and seemed reluctant to make significant moves ahead of the closely contested US presidential election later in the day and the US Fed's upcoming interest rate decision later this week. Asian markets closed mostly higher on Monday.
The Fed is widely expected to lower interest rates by another 25 basis points, but traders will be looking to the accompanying statement for clues about the likelihood of future rate cuts.
Reversing the gains in the previous session, the Australian stock market is trading notably lower on Tuesday, following the broadly negative cues from Wall Street overnight. The benchmark SP/ASX 200 is falling to stay above the 8,100 level, with weakness across most sectors led by technology and financial stocks.
The benchmark SP/ASX 200 Index is losing 33.70 points or 0.41 percent to 8,130.90, after hitting a low of 8,113.40 earlier. The broader All Ordinaries Index is down 34.30 points or 0.41 percent to 8,388.50. Australian stocks closed notably higher on Monday.
Among the major miners, BHP Group is edging down 0.3 percent, while Rio Tinto and Fortescue Metals are losing almost 1 percent each. Mineral Resources is gaining more than 3 percent.
Oil stocks are mostly lower. Origin Energy, Woodside Energy and Santos are edging down 0.1 to 0.4 percent each, while Beach energy is edging up 0.4 percent.
Among tech stocks, Zip is losing almost 3 percent, WiseTech Global is down almost 2 percent and Xero is declining more than 1 percent, while Appen is gaining more than 1 percent. Afterpay owner Block is flat.
Gold miners are mixed. Gold Road Resources is losing more than 1 percent and Northern Star resources is edging down 0.1 percent, while Resolute Mining is adding almost 1 percent. Evolution Mining and Newmont are flat.
Among the big four banks, Commonwealth Bank, Westpac, ANZ Banking and National Australia Bank are all losing almost 1 percent each.
In economic news, the Reserve Bank of Australia will wrap up its monetary policy meeting and then announce its decision on interest rates. The RBA is widely expected to keep its benchmark lending rate steady at 4.35 percent.
In the currency market, the Aussie dollar is trading at $0.659 on Tuesday.
The Japanese stock market is significantly higher in post-holiday trading on Tuesday, reversing the losses in the previous two sessions, with the Nikkei 225 moving well above the 38,400 level, despite the broadly negative cues from Wall Street overnight, with gains across most sectors led by exporters and technology stocks.
The benchmark Nikkei 225 Index closed the morning session at 38,474.66, up 420.99 points or 1.11 percent, after touching a high of 38,572.67 earlier. Japanese shares ended sharply lower on Friday prior to the holiday on Monday.
Market heavyweight SoftBank Group is flat and Uniqlo operator Fast Retailing is gaining more than 2 percent. Among automakers, Honda is gaining almost 1 percent and Toyota is adding more than 1 percent.
In the tech space, Advantest is gaining 2.5 percent, Screen Holdings is surging more than 6 percent and Tokyo Electron is adding almost 2 percent.
In the banking sector, Mitsubishi UFJ Financial and Sumitomo Mitsui Financial are edging up 0.1 to 0.3 percent each, while Mizuho Financial is gaining almost 1 percent.
The major exporters are mostly higher. Panasonic is surging almost 6 percent, Sony is adding almost 3 percent and Canon is up almost 1 percent, while Mitsubishi Electric is losing almost 2 percent
Among the other major losers, Yamaha is plummeting more than 14 percent, NH Foods is plunging more than 10 percent and AGC is losing more than 3 percent, while Recruit Holdings and Konica Minolta are declining almost 3 percent each.
Conversely, Sumitomo Electric Industries is soaring almost 11 percent, while TDK and Nomura Holdings are surging more than 7 percent each. Mitsubishi Chemical Group is advancing almost 7 percent, Disco is gaining 5.5 percent, Subaru is adding almost 5 percent and Minebea Mitsumi is rising more than 4 percent, while Mazda Motor, Murata Manufacturing and Marubeni are rising almost 4 percent each. Kyocera, Kubota and Denso are up more than 3 percent each.
In the currency market, the U.S. dollar is trading in the lower 152 yen-range on Tuesday.
Elsewhere in Asia, China is up 1.3 percent, while New Zealand, Hong Kong and Taiwan are higher by between 0.2 and 0.8 percent each. Singapore and South Korea are down 0.2 and 0.7 percent, respectively. Indonesia and Malaysia are relatively flat.
On Wall Street, stocks showed a lack of direction over the course of the trading day on Monday after turning in a strong performance during last Friday's session. The major averages bounced back and forth across the unchanged line before eventually closing in negative territory.
The Dow underperformed its counterparts, sliding 257.59 points or 0.6 percent to 41,794.60. The Nasdaq fell 59.93 points or 0.3 percent to 18,179.98 and the SP 500 dipped 16.11 points or 0.3 percent to 5,712.69.
Meanwhile, the major European markets turned in a mixed performance on the day. While the U.K.'s FTSE 100 Index crept up by 0.1 percent, the French CAC 40 Index and the German DAX Index fell by 0.5 percent and 0.6 percent, respectively.
Crude oil prices rose sharply on Monday, buoyed by OPEC's decision to delay plans to increase production, and on rising concerns about tensions in the Middle East. West Texas Intermediate crude oil futures for December closed up $1.98 or about 2.85% at $71.47 a barrel, extending gains to a fourth straight session.
European Economic News Preview: UK Final Services PMI Data Due
(RTTNews) - Final services Purchasing Managers' survey from the UK and unemployment from Spain are due on Tuesday, headlining a light day for the European economic news.
At 2.45 am ET, France's statistical office INSEE is slated to issue industrial production for September. Economists forecast output to fall 0.5 percent on month, in contrast to the 1.4 percent increase seen in August.
At 3.00 am ET, Spain's labor office publishes unemployment data for October. The number of unemployed is forecast to increase 26,500 after rising 3,200 in September.
At 4.30 am ET, SP Global publishes final UK services Purchasing Managers' survey data. The final services PMI is seen at 51.8 in October, in line with flash estimate, down from 52.4 in September.
South Korea Inflation Unchanged On Month In October
(RTTNews) - Consumer prices in South Korea were flat on a seasonally adjusted monthly basis in October, Statistics Korea said on Tuesday.
The was shy of expectations for an increase of 0.2 percent and down from 0.1 percent in September.
On an annualized basis, inflation was up 1.3 percent - again missing forecasts for 1.4 percent and down from 1.6 percent in the previous month.
Core CPI added 0.2 percent on month and 1.8 percent on year after slipping 0.2 percent on month and gaining 2.0 percent on year in September.
Hong Kong Private Sector Expands In October - S&P Global
(RTTNews) - The private sector in Hong Kong moved into expansion territory in October, the latest survey from SP Global revealed on Tuesday with a PMI score of 52.2.
That's up from 50.0, which was the boom-or-bust stagnation line that separates expansion from contraction.
Central to the latest upturn in business conditions was an improvement in demand. Incoming new orders increased at the fastest pace in one-and-a-half years which survey panelists often attributed to stimulus policies in Mainland China and greater tourism interests.
New business from both Mainland China and abroad also returned to growth after declining at the end of the third quarter. Sub-sector data revealed that overall new business increased the fastest among services firms.
European Shares Seen Tad Lower As US Election Gets Underway
(RTTNews) - European stocks are seen opening broadly lower on Tuesday as the U.S. presidential election gets underway.
Democrat Kamala Harris and Republican Donald Trump remain virtually tied in opinion polls ahead of polling and the winner will not be known for days after voting ends.
Analysts believe Trump's policies on immigration, tax cuts and tariffs would put upward pressure on inflation, bond yields and the dollar.
Markets are also positioning for a 25-basis point rate cut by the Federal Reserve and the Bank of England on Thursday.
The Federal Reserve's commentary on the economic outlook and the future trajectory of interest rates will be watched closely amid the complexities of an election year and geopolitical tensions.
The U.S. economic calendar remains light today, with reports on trade deficit and service sector activity likely to attract some attention.
Final services purchasing managers' survey results from the U.K. and unemployment data from Spain are due later in the day, headlining a light day for the European economic news.
Asian stocks were mostly higher, with Japan's Nikkei rallying more than 1 percent as traders returned to their desks after a long holiday weekend.
China's Shanghai Composite index jumped around 2 percent and Hong Kong's Hang Seng index was up 1.3 percent amid economic optimism after Chinese Premier Li Qiang said he was "fully confident" the country would hit its economic goals this year 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.
Also, 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.
The dollar was on the back foot as 'Trump trades' unwind in tight presidential race. Gold was marginally lower, driven by diminished rate-cut expectations.
Oil prices held steady in Asian trade after rallying almost 3 percent on Monday following OPEC+'s decision to delay restoring barrels to the market.
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.
European markets fell broadly on Monday, with technology stocks leading losses. The pan European STOXX 600 eased 0.3 percent.
The German DAX dropped 0.6 percent and France's CAC 40 gave up half a percent while the U.K.'s FTSE 100 finished marginally higher.
U.S. Trade Deficit Widens Significantly In September
(RTTNews) - A report released by the Commerce Department on Tuesday showed a substantial increase in the size of the U.S. trade deficit in the month of September, as imports surged and exports slumped.
The Commerce Department said the trade deficit widened to $84.4 billion in September from a revised $70.8 billion in August.
Economists had expected the trade deficit to jump to $84.1 billion from the $70.4 billion originally reported for the previous month.
The sharp increase in the size of the trade deficit came as the value of imports spiked by 3.0 percent to $352.3 billion, while the value of exports tumbled by 1.2 percent to $267.9 billion.
Boeing Strike Ends As Machinists Accept New Contract
(RTTNews) - Nearly two months long strike at Boeing Co. has ended after a majority of around 33,000 frontline workers voted to approve a new contract that will deliver 43.65 percent compounded wage increase.
Following the deal, Boeing shares were gaining around 1.91 percent in the pre-market activity on the NYSE to trade at $158.50.
While announcing the news at its website, Boeing President and CEO Kelly Ortberg said, "While the past few months have been difficult for all of us, we are all part of the same team. We will only move forward by listening and working together. There is much work ahead to return to the excellence that made Boeing an iconic company."
As per the aerospace giant, employees may return to work beginning at the start of the first shift on November 6 and must return by the beginning of their shift on November 12.
The machinists, part of the International Association of Machinists and Aerospace Workers or IAM District 751 and W24, voted to ratify the new union contract, which the union said has instantly set a new standard for compensation and wages for aerospace industry workers.
The union members in Washington State, Oregon and California had walked off the job on September 13, demanding better wages and working conditions. The strike had halted mainly the production of Boeing's 737 MAX jets, as well as 767 and 777 widebody planes.
The new offer is the company's fourth one, while all previous three offers were rejected by the striking union members.
IAM now said that its members voted by 59 percent to approve the deal.
In a statement, IAM noted that acting U.S. Secretary of Labor Julie Su, in recent weeks, worked on behalf of the Biden-Harris administration to help restart and reach a positive resolution to negotiations that had previously stalled.
The company's new contract includes a 43.65 percent compounded wage increase, and 38 percent before compounding, over the four-year life of the contract.
Further, a $12,000 ratification bonus combines the previous $7,000 ratification bonus and the $5,000 lump sum into the 401(k). Now, union members can choose how this total amount is received, whether in their paycheck, contribution to 401(k), or a combination of both.
IAM Western Territory General Vice President Gary Allen said, "For many frontline Boeing workers in the IAM Union, the terms of this contract will be life-changing. It's the most significant upgrade we've had to our collective bargaining agreement in a decade - and it will prove to be an example for the rest of the industry to live up to. Their strike was a great example of workers standing up for not just themselves, but also their families and communities."
No Help Yet For Hong Kong Stock Market
(RTTNews) - The Hong Kong stock market has moved lower in three straight sessions, slumping more than 1,100 points or 5.5 percent along the way. The Hang Seng Index now sits just beneath the 19,850-point plateau and it may take further damage again on Wednesday.
The global forecast for the Asian markets is negative ahead of key U.S. inflation data later today. The European and U.S. markets were down and the Asian bourses are expected to follow suit.
The Hang Seng finished sharply lower on Tuesday with damage across the board, especially among the financial shares and technology stocks.
For the day, the index plummeted 580.05 points or 2.84 percent to finish at 19,846.88 after trading between 19,761.31 and 20,517.24.
Among the actives, Alibaba Group tumbled 3.77 percent, while Alibaba Health Info tanked 4.36 percent, ANTA Sports plunged 4.37 percent, China Life Insurance plummeted 6.11 percent, China Mengniu Dairy declined 3.40 percent, China Resources Land stumbled 4.02 percent, CITIC shed 2.06 percent, CNOOC sank 2.08 percent, CSPC Pharmaceutical eased 0.19 percent, Galaxy Entertainment retreated 3.62 percent, Haier Smart Home fell 1.08 percent, Hang Lung Properties lost 1.81 percent, Henderson Land slumped 2.69 percent, Hong Kong China Gas dipped 0.82 percent, Industrial and Commercial Bank of China skidded 2.31 percent, JD.com surrendered 5.01 percent, Lenovo plunged 5.49 percent, Li Auto plummeted 5.60 percent, Li Ning declined 3.29 percent, Meituan tanked 5.33 percent, New World Development dropped 2.30 percent, Nongfu Spring stumbled 4.17 percent, Techtronic Industries was down 0.74 percent, Xiaomi Corporation slumped 2.90 percent and WuXi Biologics slid 1.07 percent.
The lead from Wall Street is soft as the major averages opened slightly higher but quickly headed south and stayed in the red, finishing with modest losses.
The Dow stumbled 382.15 points or 0.86 percent to finish at 43,910.98, while the NASDAQ slipped 17.36 points or 0.09 percent to close at 19,281.40 and the SP 500 sank 17.36 points or 0.29 percent to end at 5,983.99.
The pullback on Wall Street reflected profit taking as some traders looked to cash in on the recent strength in the markets following the U.S. elections.
Also, traders seemed reluctant to make more significant moves ahead of the highly anticipated report on consumer price inflation, due out later today.
Oil prices edged up only a bit on Tuesday after OPEC lowered its global oil demand forecast for 2025, while the dollar's continued strength hurt as well. West Texas Intermediate Crude oil futures for December rose $0.08 at $68.12 a barrel.
Australian Dollar Rises Against Majors
(RTTNews) - The Australian dollar strengthened against other major currencies in the Asian session on Monday.
The Australian dollar rose to 1.6484 against the euro and 100.64 against the yen, from yesterday's closing quotes of 1.6518 and 100.16, respectively.
Against the U.S., the Canada and the New Zealand dollars, the aussie advanced to 0.6599, 0.9171 and 1.1035 from Monday's closing quotes of 06584, 0.9152 and 1.1021, respectively.
If the aussie extends its uptrend, it is likely to find resistance around 1.61 against the euro, 102.00 against the yen, 0.69 against the greenback, 0.93 against the loonie and 1.11 against the kiwi.
UK Service Sector Logs Weakest Growth In Almost A Year
(RTTNews) - The UK service sector grew at the slowest pace since November last year as heightened uncertainty and concerns about the domestic economic outlook damped new work, the SP Global purchasing managers' survey showed on Tuesday.
The final services Purchasing Managers' Index registered 52.0 in October, down from 52.4 in September. The reading was above the initial estimate of 51.8.
The survey showed that firms delayed spending decision due to heightened uncertainty ahead of the Autumn budget. Geopolitical tensions also weighed on willingness to spend.
Total new work grew at the slowest pace since June but still slightly stronger than seen on average in the first of the year. Firms linked improving order books to resilient business and consumer spending.
There was a solid rise in new work from abroad and the rate of expansion accelerated to its fastest since March 2023.
Companies reduced staffing numbers for the first time since December 2023. The moderate decrease reflected the non-replacement of voluntary leavers amid budget constraints, efforts to boost productivity and difficulties finding suitable candidates to fill vacancies.
Regarding prices, the survey showed that input cost inflation edged up to a three-month high but remained much softer than seen in the first half of 2024. Average prices charged by service providers increased slightly from September's 43-month low.
Business confidence eased to the lowest in four months. Service providers typically commented on positive sentiment regarding their sales pipelines and broader market conditions but many suggested that political uncertainty ahead of the budget had weighed on sentiment.
The overall private sector output growth moderated further in October, reflecting slower rates of expansion in both manufacturing and service sectors. The composite output index fell to 51.8 from 52.6 in the previous month. The score was the lowest since November 2023. The flash reading was 51.7.
Renewed Consolidation Expected For Indonesia Stock Market
(RTTNews) - The Indonesia stock market has moved higher in two of three trading days since the end of the two-day slide in which it had plunged almost 250 points or 3.3 percent. The Jakarta Composite Index now rests just above the 7,320-point plateau although it's likely to head south again on Wednesday.
The global forecast for the Asian markets is negative ahead of key U.S. inflation data later today. The European and U.S. markets were down and the Asian bourses are expected to follow suit.
The JCI finished modestly higher on Tuesday following gains from the food, telecom and cement companies, while the financials and resource stocks were mixed.
For the day, the index gained 55.53 points or 0.76 percent to finish at 7,321.99 after trading between 7,268.61 and 7,344.07.
Among the actives, Bank CIMB Niaga slid 0.28 percent, Bank Mandiri collected 0.39 percent, Bank Danamon Indonesia gained 0.40 percent, Bank Negara Indonesia slumped 1.20 percent, Bank Central Asia climbed 1.00 percent, Bank Rakyat Indonesia advanced 0.90 percent, Bank Maybank Indonesia jumped 1.82 percent, Indosat Ooredoo Hutchison soared 2.80 percent, Indocement improved 1.08 percent, Semen Indonesia strengthened 1.41 percent, Indofood Sukses Makmur added 0.64 percent, United Tractors spiked 2.39 percent, Energi Mega Persada surged 5.30 percent, Aneka Tambang rallied 2.29 percent, Jasa Marga rose 0.21 percent, Vale Indonesia shed 0.54 percent, Timah plunged 5.28 percent, Bumi Resources skyrocketed 16.78 percent and Astra International and Astra Agro Lestari were unchanged.
The lead from Wall Street is soft as the major averages opened slightly higher but quickly headed south and stayed in the red, finishing with modest losses.
The Dow stumbled 382.15 points or 0.86 percent to finish at 43,910.98, while the NASDAQ slipped 17.36 points or 0.09 percent to close at 19,281.40 and the SP 500 sank 17.36 points or 0.29 percent to end at 5,983.99.
The pullback on Wall Street reflected profit taking as some traders looked to cash in on the recent strength in the markets following the U.S. elections.
Also, traders seemed reluctant to make more significant moves ahead of the highly anticipated report on consumer price inflation, due out later today.
Oil prices edged up only a bit on Tuesday after OPEC lowered its global oil demand forecast for 2025, while the dollar's continued strength hurt as well. West Texas Intermediate Crude oil futures for December rose $0.08 at $68.12 a barrel.
Spain Unemployment Rises In October
(RTTNews) - Joblessness in Spain increased in October but logged the smallest gain for the month since 2006 except for the pandemic years of 2021 and 2022, data from the labor ministry showed on Tuesday.
The number of unemployed rose by 26,769 persons, which was a below average increase for the month of October. Economists were looking for an increase of 26,500 persons.
In September, the number of jobless increased by 3,164 persons from the previous month.
The October jobless total decreased 5.7 percent from the same month last year, which was the biggest annual fall since September 2023.
Registered unemployment was 2.60 million persons, which was the lowest figure for the month since 2007.
Among industrial sectors, construction registered a fall in unemployment compared to the previous month and the biggest gain was in services.
The labor ministry said a significant trend in hiring is confirmed with 43.5 percent contracts registered in October being permanent.
Results of the SP Global manufacturing purchasing managers' survey for October, released on Monday, showed that factory employment in Spain increased due to the booming business that led to faster depletion of backlogs of work.
Going forward, Spanish manufacturers are planning to hire more workers as they scale up production to meet the increased demand, the survey showed.
Meanwhile, unemployment among women remained at its lowest level since 2008, while those among men increased from September.
Youth unemployment, which is joblessness among young people under 25 years of age, rose 4.35 percent monthly or by 8,361 persons.
The report also showed that a total of 1,703,095 people claimed unemployment benefits at the end of September and the coverage ratio was 70.64 percent, which was the highest since 2010.
Australian Dollar Rises As RBA Holds Interest Rate At 13-Year High
(RTTNews) - The Australian dollar strengthened against other major currencies in the Asian session on Monday, after Australia central bank maintained its interest rate for the eighth straight session at a 13-year high, as underlying inflation remains too high.
The policy board of the Reserve Bank of Australia governed by Michele Bullock decided to hold the cash rate target at 4.35 percent. The bank had previously changed its rate in November 2023, when it was lifted by 25 basis points to the highest level since late 2011.
The interest rate paid on Exchange Settlement balances was kept unchanged at 4.25 percent.
The committee said it needs to remain vigilant to upside risks to inflation and is not ruling anything in or out.
"Policy will need to be sufficiently restrictive until the Board is confident that inflation is moving sustainably towards the target range," the bank said.
Data from Judo Bank showed that the services sector in Australia continued to expand in October, and at a faster rate, with a PMI score of 51.0. That's up from 50.5.
Following the announcement of the November monetary policy decision, the Reserve Bank of Australia (RBA) Governor Michele Bullock said at the press conference the need to maintain restrictive interest rates for the time being due to ongoing inflationary risks. Despite a tight labor market, wage growth is showing signs of easing.
Traders remained cautious and seemed reluctant to make significant moves ahead of the closely contested U.S. presidential election later in the day and the U.S. Fed's upcoming interest rate decision later this week.
The Fed is widely expected to lower interest rates by another 25 basis points, but traders will be looking to the accompanying statement for clues about the likelihood of future rate cuts.
Crude oil prices rose sharply, buoyed by OPEC's decision to delay plans to increase production, and on rising concerns about tensions in the Middle East. West Texas Intermediate crude oil futures for December closed up $1.98 or about 2.85% at $71.47 a barrel, extending gains to a fourth straight session.
In the Asian trading now, the Australian dollar rose to 1.6484 against the euro and 100.64 against the yen, from yesterday's closing quotes of 1.6518 and 100.16, respectively. If the aussie extends its uptrend, it is likely to find resistance around 1.61 against the euro and 102.00 against the yen.
Against the U.S., the Canada and the New Zealand dollars, the aussie advanced to 0.6599, 0.9171 and 1.1035 from Monday's closing quotes of 06584, 0.9152 and 1.1021, respectively. The aussie may test resistance around 0.69 against the greenback, 0.93 against the loonie and 1.11 against the kiwi.
Looking ahead, SP Global publishes final U.K. services Purchasing Managers' survey data for October in the European session. The final services PMI is seen at 51.8 in October, in line with flash estimate, down from 52.4 in September.
In the New York session, U.S. and Canada trade data for September and PMI reports for October, are slated for release.
Australia Holds Interest Rate At 13-Year High
(RTTNews) - Australia central bank maintained its interest rate for the eighth straight session at a 13-year high on Tuesday as underlying inflation remains too high.
The policy board of the Reserve Bank of Australia governed by Michele Bullock decided to hold the cash rate target at 4.35 percent.
The bank had previously changed its rate in November 2023, when it was lifted by 25 basis points to the highest level since late 2011.
The interest rate paid on Exchange Settlement balances was kept unchanged at 4.25 percent.
The committee said it needs to remain vigilant to upside risks to inflation and is not ruling anything in or out.
"Policy will need to be sufficiently restrictive until the Board is confident that inflation is moving sustainably towards the target range," the bank said.
Policymakers observed that headline inflation has declined substantially and it will remain lower for a time but underlying inflation is more indicative of inflation momentum, and it remains too high.
The bank said it will be some time yet before inflation is sustainably in the target range and approaching the midpoint.
In Statement of Monetary Policy, the bank said year-ended headline inflation is forecast to rise in the September quarter of 2025 to above the target band as the rebates unwind. Underlying inflation is not expected to reach 3 percent until the June quarter of next year.
Economic growth is expected to return to around its potential growth rate by late 2025.
