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Chinese Yuan Falls On Trump Tariff Threats
(RTTNews) - The Chinese yuan weakened against the U.S. dollar in the European session on Tuesday, amid concerns about possible tariffs on Chinese imports by U.S. President-Elect Donald Trump.
Markets are nervous as they seek clarity on U.S. President-elect Donald Trump's policy proposals, including increased tariffs, and await key U.S. inflation reading later in the week for directional cues.
Against the U.S. dollar, the yuan fell to nearly a 3-1/2-month low of 7.2417 from early high of 7.2180. At yesterday's close, the yuan was trading at 7.2139 against the greenback.
If the yuan extends its downtrend, it is likely to find support around the 7.23 region.
The Chinese central bank sets central parity rate every morning and allows the yuan to fluctuate up to 2 percent from that level.
Pounds Falls On Weak U.K. Employment Data
(RTTNews) - The British pound weakened against other major currencies in the European session on Tuesday, after the U.K. unemployment rate rose more than expected in the third quarter and wage growth softened, adding pressure on the Bank of England to cut interest rates further.
Data from the Office for National Statistics showed that the unemployment rate rose to 4.3 percent in the September quarter from 4.0 percent in three months to August period. The rate was seen at 4.1 percent.
Excluding bonus, average earnings gained 4.8 percent in three months to September, the weakest since mid-2022. This follows an increase of 4.9 percent in the preceding period. Wage growth was forecast to ease to 4.7 percent.
Average earnings including bonus grew 4.3 percent annually. The ONS said the annual increase was affected by the civil service one-off payments made in July and August 2023. Economists had expected an increase of 3.9 percent.
Job vacancies decreased for the 28th consecutive period in three months to October, the ONS said. The number of vacancies declined 35,000 on the quarter to 831,000.
Data showed that payrolled employees decreased 5,000 in October from a month ago but increased 95,000 from the previous year, to 30.4 million.
Claimant count rose by 26,700 in October after rising 10,100 in September. However, this was smaller than economists' forecast of 30,500.
There were an estimated 48,000 working days lost because of labor disputes in September.
Last week, the BoE had lowered its interest rate by a quarter-point to 4.75 percent. Previously, the U.K. central bank had reduced the policy rate by a quarter-point in August, which was the first reduction since March 2020.
European stocks traded lower, after reports emerged that U.S. President-elect Donald Trump will appoint Michael Waltz as his national security adviser and Marco Rubio as secretary of state, indicating hardline positions on China, Iran and Venezuela.
Meanwhile, according to data provider DDHQ, Trump's Republican Party had won a majority in the U.S. House of Representatives, signaling a majority for Republicans in both chambers of Congress.
It is feared that Trump's aggressive tariff hikes could fuel inflation eventually and stop the Fed from cutting rates. Tariffs also carry the risk of retaliation from major trading partners.
On the economic front, the focus remains on U.S. consumer price inflation data on Wednesday, and a slew of speeches by Federal Reserve officials this week, including Fed Chair Jerome Powell on Thursday.
In the European trading now, the pound fell to a 3-month low of 1.2792 against the U.S. dollar, from an early high of 1.2874. On the downside, 1.26 is seen as the next support level for the pound.
Against the Swiss franc and the yen, the pound slid to 4-day lows of 1.1280 and 196.89 from early highs of 1.1339 and 198.06, respectively. If the pound extends its downtrend, it is likely to find support around 1.11 against the franc and 194.00 against the yen.
The pound edged down to 0.8303 against the euro, from an early high of 0.8278. The next possible downside target for the pound is seen around the 0.84 region.
Looking ahead, Germany ZEW economic sentiment for November is set to be released in the European session.
In the New York session, U.S. NFIB business optimism index for October, Canada building permits for September, U.S. Redbook report, U.S. consumer inflation expectations for October are slated for release.
Bayer Stock Slips On Q3 Loss, Cautious Outlook
(RTTNews) - Shares of Bayer AG were losing around 11 percent in the morning trading on Germany's XETRA after the pharmaceutical and life sciences major reported Tuesday loss in its third quarter and weak adjusted EBITDA, amid nearly flat sales. The net loss, however, was narrower than last year, while EBIT loss widened.
Further, the company trimmed its fiscal 2024 adjusted EBITDA forecast for the group and for Crop Science unit, citing the weaker-than-anticipated development of the agricultural market, but maintained guidance for sales growth, and core earnings per share.
For 2025, Bayer is cautious on the agricultural market environment. Additional regulatory challenges and generic pricing pressures are set to put pressure on the crop protection business.
Chief Financial Officer Wolfgang Nickl said, "Overall, we expect a muted outlook on top and bottom line next year with likely declining earnings. We plan to accelerate our cost and efficiency measures to partly compensate and remain laser focused on cash conversion."
The company noted that the development of the agricultural market has been weaker than anticipated, especially in Latin America, and that it continues to face pricing pressure in the crop protection business.
For fiscal 2024, Bayer now expects to generate EBITDA before special items of between 10.4 and 10.7 billion euros. Previously, it was expected to be between 10.7 billion euros and 11.3 billion euros.
For Crop Science, Bayer now expects currency- and portfolio-adjusted sales to be down 1 percent to 3 percent, compared to the previous forecast of lower end of the range of between minus 1 and plus 3 percent. Adjusted EBITDA margin is now expected to be between 18 and 20 percent, compared to the previous forecast of lower end of the range of 20 percent to 22 percent.
For Consumer Health, the company now expects currency- and portfolio-adjusted sales growth of between 1 and 3 percent, compared to the previous forecast of between 3 percent and 6 percent.
Pharmaceuticals division now expects to report at the upper end of the previously projected currency- and portfolio-adjusted sales growth of between 0 and 3 percent and adjusted EBITDA margin of between 26 and 29 percent.
Bayer further said its Supervisory Board has extended the current contract of Nickl, Chief Financial Officer, until May 31, 2026. Nickl had initially planned to retire after the 2025 Annual Stockholders' Meeting.
In its third quarter, net loss narrowed to 4.183 billion euros from 4.569 billion euros last year. Loss per share was 4.26 euros compared to a loss of 4.66 euros in the prior year.
The latest quarterly results included net special charges of 4.088 billion euros that mainly related to non-cash impairment losses on intangible assets in the Crop Science Division, compared to prior year's charges of 4.303 billion euros.
Core earnings per share for the third quarter declined to 0.24 euros from 0.38 euros in the previous year.
Group EBIT came in at minus 3.822 billion euros, compared to minus 3.594 billion euros in the prior year. Adjusted EBIT fell 62.3 percent from last year to 267 million euros.
EBITDA before special items decreased 25.8 percent year-over-year to 1.251 billion euros. Adjusted EBITDA margin was 12.6 percent, down from 16.3 percent a year ago.
Group sales were 9.968 billion euros in the third quarter, down 3.6 percent from 10.342 billion euros last year. Sales edged up 0.6 percent on a currency- and portfolio-adjusted basis.
At constant currency, agricultural business sales in the Crop Science segment decreased 3.6 percent to 3.986 billion euros. Sales of glyphosate-based herbicides declined 19.1 percent.
In the Pharmaceuticals division, sales of prescription medicines grew 2.3 percent to 4.510 billion euros. The division's new products achieved significant gains, with growth rates of 83.2 percent for Nubeqa and 96.4 percent for Kerendia.
Sales of self-care products, in the Consumer Health division, increased 5.7 percent to 1.413 billion euros. Positive drivers included higher volumes in Europe/Middle East/Africa and Latin America.
On the XETRA, Bayer shares were trading at 21.81 euros, down 10.7 percent.
For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com.
Australian Dollar Falls On U.S. Trump Tariff Threats
(RTTNews) - The Australian dollar weakened against other major currencies in the Asian session on Tuesday, amid concerns about possible tariffs on Chinese imports by U.S. President-Elect Donald Trump.
Markets are nervous as they seek clarity on U.S. President-elect Donald Trump's policy proposals, including increased tariffs, and await key U.S. inflation reading later in the week for directional cues.
Though the markets are optimistic that Trump's policies such as tax reductions and deregulation will help boost corporate earnings, they see an uptick in inflation amid proposed increase in tariffs that will complicate the US Fed's interest-rate plans.
Weakness in mining stocks amid tumbling metal prices, also led to the downtrend of the currency.
Crude oil closed sharply lower, weighed down by a stronger dollar and concerns about demand. West Texas Intermediate Crude oil futures for December ended down $2.34 or 3.6 percent at $68.04 a barrel.
In the Asian trading today, the Australian dollar fell to a 6-day low of 0.6550 against the U.S. dollar, from yesterday's closing value of 0.6574. On the downside, 0.63 is seen as the next support level for the aussie.
Against the yen and the euro, the aussie slipped to 100.56 and 1.6248 from Monday's closing quotes of 101.05 and 1.6201, respectively. If the aussie extends its downtrend, it is likely to find support around 99.00 against the yen and 1.66 against the euro.
Against the Canada and the New Zealand dollars, the aussie edged down to 0.9135 and 1.0997 from yesterday's closing quotes of 0.9154 and 1.1021, respectively. The next possible downside target for the aussie is seen around 0.90 against the loonie and 1.08 against the kiwi.
Looking ahead, Germany CPI data for October and U.K. jobs data for October, are due to be released in the pre-European session.
In the European session, Germany ZEW economic sentiment for November is set to be released.
In the New York session, U.S. NFIB business optimism index for October, Canada building permits for September, U.S. Redbook report, U.S. consumer inflation expectations for October are slated for release.
German ZEW Economic Confidence Deteriorates
(RTTNews) - German economic sentiment deteriorated in November as the victory of Donald Trump in the US presidential election and the collapse of the German government coalition damped expectations, survey results from the think tank ZEW showed Tuesday.
The ZEW Indicator of Economic Sentiment dropped to 7.4 in November from 13.1 in the previous month. The index was expected to remain broadly unchanged at 13.2.
Investors were increasingly pessimistic about the current economic situation. The corresponding index dropped 4.5 points to -91.4. This was weaker than economists' forecast of -86.0.
ZEW President Achim Wambach said the outcome of the US presidential election is likely to be the major reason for the fall in economic expectations.
"The fact that economic expectations for the USA are clearly rising, while economic sentiment for China and the eurozone is falling, supports this view," Wambach said.
"Still, more optimistic voices were heard in the last survey days, expecting economic prospects for Germany to improve with snap elections on the horizon," he added.
The economic confidence for the eurozone also declined in November. The sentiment index slid 7.6 points to 12.5 in November. However, the assessment of the current economic situation dropped moderately by 3.0 points to -43.8 in November.
Tyson Foods Q4 Results Top Estimates
(RTTNews) - Meat processor Tyson Foods, Inc. (TSN) reported Tuesday a profit for the fourth quarter compared to a loss last year, reflecting improved margins and sales growth. Both adjusted earnings per share and quarterly sales topped analysts' expectations. However, the company provided weak sales guidance for the full-year 2025.
In Tuesday's pre-market trading on Nasdaq, TSN is trading at $62.27, up $3.46 or 5.88 percent.
"We delivered significant improvement in profitability for the fourth quarter and full year. We also strengthened our financial position, with solid cash flow generation and a substantial reduction of our net leverage ratio," said Donnie King, President and CEO of Tyson Foods.
For the fourth quarter, the Springdale, Arkansas-based company reported net Income attributable to the company of $357 million or $1.00 per share, compared to a net loss of $450 million or $1.31 per share in the prior-year quarter.
Excluding items, adjusted earnings for the quarter were $0.92 per share, compared to $0.37 per share in the year-ago quarter.
On average, eight analysts polled by Thomson Reuters expected the company to report earnings of $0.69 per share for the quarter. Analysts' estimates typically exclude special items.
Sales for the quarter increased 1.6 percent to $13.57 billion from $13.35 billion in the same quarter last year. Analysts expected revenue of $13.39 billion for the quarter.
Beef sales increased to $5.26 billion from $5.03 billion and Chicken sales improved to $4.25 billion from $4.16 billion last year, while Pork sales decreased to $1.44 billion from $1.49 billion and Prepared Foods sales declined to $2.47 billion from $2.50 billion last year.
Operating margin for the quarter improved 740 basis points to 3.9 percent and adjusted margin expanded 200 basis points to 3.8 percent from a year ago.
"Looking ahead, we are optimistic about our outlook and our ability to deliver long-term value to our shareholders. Our multi-protein, multi-channel portfolio, combined with our best-in-class team, iconic brands and focus on operational excellence positions us well for Fiscal 2025 and beyond," King added.
Looking ahead to fiscal 2025, the company expects sales to be between down 1 percent and flat from fiscal 2024, implying sales between $52.82 billion and $53.31 billion. The Street is looking for revenues of $54.09 billion for the year.
The company also expects capital expenditures between $1.0 billion and $1.2 billion for fiscal 2025.
On Friday, the Board of Directors increased the quarterly dividend by 2 percent to $0.50 per share on Class A common stock and $0.45 per share on Class B common stock, both payable on December 13, 2024, to shareholders of record at the close of business on November 29, 2024.
The Board also declared on November 8, 2024 a quarterly dividend of $0.50 per share on Class A common stock and $0.45 per share on our Class B common stock, payable on March 14, 2025, to shareholders of record at the close of business on February 28, 2025.
For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com
Dollar Extends Gains, Rises To Near 5-month High
(RTTNews) - The U.S. dollar climbed higher on Tuesday, extending its dominance against his major counterparts, amid bets rate cuts will not be any aggressive next year as prices may move higher under Donald Trump administration due to proposed increase in tariffs.
Investors await key U.S. inflation readings, reports on retail sales and industrial production, and FOMC member commentary for additional clues to the Fed's rate trajectory.
The dollar index, which climbed to a near five-month high at 106.18, was at 105.92 a little while ago, gaining about 0.35%.
Against the Euro, the dollar firmed to 1.0627 from 1.0656, and strengthened to 1.2749 against Pound Sterling from 1.2868.
The dollar climbed against the Japanese currency, fetching 154.65 yen a unit, up from Monday's closing value of 154.65 yen. Against the Aussie, the dollar firmed to 0.6534 from 0.6574.
The dollar gained marginally against Swiss franc at CHF 0.8820. Against the Loonie, the dollar advanced to C$ 1.3945 from C$ 1.3925.
Swiss Market Ends Sharply Lower On Weak Global Cues
(RTTNews) - The Switzerland market ended sharply lower on Tuesday as stocks reeled under selling pressure right through the day's session on weak global cues amid concerns about the possible impact of Donald Trump's protectionist policies.
The benchmark SMI closed down 190.70 points or 1.6% at 11,712.09, slightly off the day's low of 11,697.50.
Alcon closed down 5.65%. SIG Group ended lower by 4.41%, while Adecco, Richemont and Swatch Group lost 3 to 3.3%.
Holcim, Straumann Holding, Sika, ABB, Julius Baer and Sandoz Group lost 2 to 3%. Sonova and Swiss Life Holding closed nearly 2% down.
Logitech International, Partners Group, Schindler Ps, Givaudan, Swiss Re, Zurich Insurance Group, SGS, Swisscom and UBS Group drifted down 1.5 to 2%.
Nestle, Lindt Spruengli, Kuehne + Nagel, Roche Holding and VAT Group ended lower by 1 to 1.3%.
Lonza Group bucked the trend and closed higher by a little over 1%. The company said that it will expand its bioconjugation capabilities at its Visp facility by adding two mutipurpose manufacturing suites.
Temenos Group shares moved up more than 4% after the company laid out new mid-term targets for 2028 as part of its new strategy. The company expects to reach an annual recurring organic revenue of more than $1.3 billion.
European Stocks Tumble On Economic, Geopolitical Concerns
(RTTNews) - European stocks tumbled on Tuesday and several markets recorded their biggest single-session decline in several weeks, as concerns about the potential adverse impact of Donald Trump's protectionist policies on global economic and political front weighed on sentiment.
A sell-off in mining stocks following a sharp drop in metal prices contributed significantly to the decline in several markets.
According to reports, U.S. President-elect Donald Trump will appoint Michael Waltz as his national security adviser and Marco Rubio as secretary of state, indicating hardline positions on China, Iran and Venezuela.
Meanwhile, according to data provider DDHQ, Trump's Republican Party had won a majority in the U.S. House of Representatives, signaling a majority for Republicans in both chambers of Congress.
It is feared that Trump's aggressive tariff hikes could fuel inflation eventually and stop the Fed from cutting rates. Tariffs also carry the risk of retaliation from major trading partners.
On the economic front, the focus remains on U.S. consumer price inflation data on Wednesday, and a slew of speeches by Federal Reserve officials this week, including Fed Chair Jerome Powell on Thursday.
The pan European Stoxx 600 fell 1.98%. The U.K.'s FTSE 100 ended down 1.22%, Germany's DAX and France's CAC 40 closed down 2.13% and 2.69%, respectively, while Switzerland's SMI settled lower by 1.6%.
Among other markets in Europe, Austria, Belgium, Denmark, Finland, Ireland, Netherlands, Poland, Portugal, Russia, Spain and Sweden lost 1 to 3%.
Iceland and Norway closed modestly lower, while Greece edged up marginally.
In the UK market, Vodafone Group dropped more than 8% after the British telecoms group suffered falling revenue in its biggest market Germany.
Fresnillo closed nearly 8% down. Vistry Group, Prudential, Anglo American Plc, Croda International, EasyJet, Airtel Africa and Glencore lost 3.2 to 5.6%.
Frasers Group, WPP, Barratt Redrow, Mondi, Rolls-Royce Holdings, Persimmon, Taylor Wimpey, Beazley, Intertek Group and Rio Tinto closed down 2 to 3%. Antofagasta, Schrodders, Severn Trent, Relx and Natwest Group also declined sharply.
Convatec Group soared more than 22%. The medical products and technologies company said that it is on track to deliver full-year double-digit adjusted earnings per share or EPS growth guidance. The company has also raised organic sales growth guidance, citing a trading growth across all categories.
DCC zoomed 14.2% after the sales and marketing services provider announced plans to sell its healthcare division and review "strategic options" for its technology business.
RightMove gained 2.65%. Smith Nephew closed up nearly 2% and Centrica gained about 1.1%.
In the German market, Bayer tanked more than 15%. The pharmaceutical and life sciences major reported a loss in its third quarter and weak adjusted EBITDA, amid nearly flat sales. The net loss, however, was narrower than last year, while EBIT loss widened.
Further, the company trimmed its fiscal 2024 adjusted EBITDA forecast for the group and for Crop Science unit, citing the weaker-than-anticipated development of the agricultural market, but maintained guidance for sales growth, and core earnings per share.
Brenntag lost about 8%. BASF, Continental, Siemens, Siemens Energy, Puma, Siemens Healthineers, Adidas, Hannover Rueck, Commerzbank, Symrise, HeidelbergCement, Deutsche Bank, Deutsche Post, Allianz, E.ON, RWE and Munich RE closed down 2 to 4.3%.
Infineon rallied more than 4%. Rheinmetall gained about 1.3%, while Sartorius ended with a modest gain.
In the French market, Kering closed more than 6% down. LVMH, ArcelorMittal, Teleperformance, Schneider Electric, Hermes International, Edenred, Airbus Group, Safran, Legrand, BNP Paribas, Vivendi, Publicis Groupe, TotalEnergies, Carrefour and Essilor lost 2 to 5%.
STMicroElectronics bucked the trend and climbed about 3.75%.
In economic news, the UK unemployment rate rose more than expected in the third quarter and wage growth softened, adding pressure on the Bank of England to cut interest rates further. The unemployment rate rose to 4.3% in the September quarter from 4% in three months to August period, the Office for National Statistics reported. The rate was seen at 4.1%.
After falling below the 2% target, German inflation accelerated again in October on higher food prices and ongoing above-average price increases for services, final data from Destatis showed. The consumer price index rose 2% year-on-year, as initially estimated in October. Prices had increased 1.6% in September.
German economic sentiment deteriorated in November as the victory of Donald Trump in the US presidential election and the collapse of the German government coalition damped expectations, survey results from the think tank ZEW showe. The ZEW Indicator of Economic Sentiment dropped to 7.4 in November from 13.1 in the previous month. The index was expected to remain broadly unchanged at 13.
China Bourse May Extend Tuesday's Losses
(RTTNews) - The China stock market has alternated between positive and negative finishes through the last five trading days since the end of the two-day winning streak in which it had spiked more than 110 points or 3.3 percent. The Shanghai Composite now sits just above the 3,420-point plateau and it may open lower 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 SCI finished sharply lower on Tuesday following losses from the financial shares, property stocks and resource and energy companies.
For the day, the index slumped 48.10 points or 1.39 percent to finish at 3,421.97 after trading between 3,402.04 and 3,489.42. The Shenzhen Composite Index sank 17.25 points or 0.81 percent to end at 2,116.33.
Among the actives, Industrial and Commercial Bank of China shed 0.66 percent, while Bank of China fell 0.42 percent, China Construction Bank lost 0.63 percent, China Merchants Bank tumbled 1.93 percent, Agricultural Bank of China sank 0.85 percent, China Life Insurance surrendered 3.95 percent, Jiangxi Copper stumbled 2.04 percent, Aluminum Corp of China (Chalco) plunged 3.93 percent, Yankuang Energy rose 0.32 percent, PetroChina skidded 1.11 percent, China Petroleum and Chemical (Sinopec) dropped 0.80 percent, Huaneng Power slumped 0.95 percent, China Shenhua Energy retreated 1.19 percent, Gemdale declined 0.83 percent, Poly Developments slid 0.82 percent and China Vanke was down 1.18 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.
Swiss Franc Rises Against Most Majors
(RTTNews) - The Swiss franc appreciated against its most major counterparts in the New York session on Tuesday.
The franc advanced to a 6-day high of 1.1235 against the pound and near a 3-week high of 0.9347 against the euro, off its early lows of 1.1340 and 0.9389, respectively.
The franc touched a 4-day high of 175.47 against the yen, from an early 3-week low of 174.10.
The currency is poised to challenge resistance around 1.09 against the pound, 0.92 against the euro and 179.00 against the yen.
Australia Wage Price Index Climbs 0.8% In Q3
(RTTNews) - The wage price index in Australia was up a seasonally adjusted 0.8 percent on quarter in the third quarter of 2024, the Australian Bureau of Statistics said on Wednesday.
That was unchanged from the previous three months, although it was shy of expectations for an increase of 0.9 percent.
Both the private sector and the public sector rose 0.8 percent for the quarter.
The largest industry contributors to quarterly wages growth were healthcare and social assistance (+1.7 percent), retail trade (+2.1 percent), and administrative and support services (+2.1 percent).
On a yearly basis, wage prices were up 3.5 percent - again short of forecasts for 3.6 percent and down from 4.1 percent in the second quarter.
Canadian Dollar Firms Against Majors
(RTTNews) - The Canadian dollar climbed against its major counterparts in the New York session on Tuesday.
The loonie recovered to 1.3925 against the greenback, from an early more than 2-year low of 1.3967.
The loonie climbed to a 6-day high of 0.9090 against the aussie, 5-day high of 111.07 against the yen and a fresh 4-month high of 1.4779 against the euro, off its early lows of 0.9162, 110.00 and 1.4845, respectively.
The next possible resistance for the currency is seen around 1.34 against the greenback, 0.89 against the aussie, 112.00 against the yen and 1.45 against the euro.
Australian Market Sharply Lower
(RTTNews) - Australian shares are trading sharply lower on Wednesday, adding to the losses in the previous two sessions, with the benchmark SP/ASX 200 falling well below the 8,200 level, following the broadly negative cues from Wall Street overnight, with weakness across most sectors led by mining and energy stocks amid weak commodity prices.
The benchmark SP/ASX 200 Index is losing 93.70 points or 1.14 percent to 8,161.90, after hitting a low of 8,139.10 earlier. The broader All Ordinaries Index is down 90.30 points or 1.06 percent to 8,424.90. Australian stocks ended slightly lower on Tuesday.
Among major miners, BHP Group is losing almost 2 percent and Rio Tinto is declining more than 3 percent, while Fortescue Metals is flat. Mineral Resources is slipping almost 7 percent on news the lithium miner will put operations on hold at the Bald Hill site in Western Australia until spodumene prices improve.
Oil stocks are mostly lower. Woodside Energy and Beach energy are losing more than 1 percent each, while Santos and Origin Energy are edging down 0.3 to 0.5 percent each.
In the tech space, Zip is losing almost 1 percent and Appen is declining almost 4 percent, while Afterpay owner Block is gaining almost 4 percent. WiseTech Global and Xero are edging up 0.1 to 0.5 percent each.
Among the big four banks, Commonwealth Bank and Westpac are losing almost 2 percent each, while National Australia Bank is declining more than 2 percent and ANZ Banking is slipping almost 5 percent.
Among gold miners, Evolution Mining and Newmont are losing 1.5 percent each, while Gold Road Resources is down almost 1 percent, Northern Star Resources is edging down 0.4 percent and Resolute Mining is declining more than 3 percent.
Shares in Light Wonder are slipping more than 6 percent after it reported a 15 percent rise in gaming revenue in the three months to the end of September, driven by global gaming machine sales growth. However, earnings per share fell short of analysts' expectations.
Shares is James Hardie are surging are almost 6 percent after the building materials giant reaffirmed the lower end of its volume guidance, despite posting a 23 percent drop in net profit, citing a "challenging demand environment" for its products, particularly in Asia and Europe.
Shares in Selfwealth are skyrocketing 72 percent after it received a buyout offer from Bell Financial Group at 22¢ apiece, almost double yesterday's closing price.
In the currency market, the Aussie dollar is trading at $0.652 on Wednesday.
On the Wall Street, stocks gave back ground during trading on Tuesday following the strong upward move seen in reaction to last week's last elections. The major averages fluctuated over the course of the trading session before eventually closing in negative territory.
The Dow underperformed its counterparts, slumping 382.15 points or 0.9 percent to 43,910.98. The SP 500 dipped 17.36 points or 0.3 percent to 5,983.99 and the tech-heavy Nasdaq edged down 17.36 points or 0.1 percent to 19,281.40.
The major European markets also showed significant moves to the downside on the day. While the French CAC 40 Index plunged by 2.7 percent, the German DAX Index tumbled by 2.1 percent and the U.K.'s FTSE 100 Index slid by 1.2 percent.
Crude 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.
Canadian Market Stays Firm After Hitting New Record High
(RTTNews) - The Canadian market is holding in positive territory Tuesday afternoon posting a new record high, with technology stocks contributing substantially to the upmove. Materials and energy stocks are having a tough session due to weak commodity prices.
The benchmark SP/TSX Composite Index, which climbed to a new high of 25,024.93, was up 75.89 points or 0.31% at 24,865.17 a little while ago.
The Information Technology Index is up more than 7%, lifted by Shopify Inc (SHOP.TO), which is up with a hefty gain of 25% thanks to strong results and earning guidance. Shopify reported third-quarter revenue of US$2.16 billion, up from $1.71 billion a year earlier. The company said it expects fourth-quarter revenue to grow "at a mid-to-high-twenties percentage rate on a year-over-year basis."
Sylogist (SYZ.TO), Converge Technology Solutions (CTS.TO) and Lightspeed Commerce (LSPD.TO) are gaining 2.7 to 3.5%. Sangoma Technologies (STC.TO) and Docebo Inc (DCBO.TO) are up 1.5% and 1%, respectively.
Materials shares Hudbay Minerals (HBM.TO), Capstone Mining Corp (CS.TO), Ero Copper (ERO.TO), Ssr Mining Inc (SSRM.TO), Seabridge Gold (SEA.TO), Ivanhoe Mines (IVN.TO), Algoma Steel (ASTL.TO), Teck Resources (TECK.B.TO), Iamgold (IMG.TO) and Lundin Mining (LUN.TO) are down 3.5 to 4.5%.
In the energy sector, Nuvista Energy (NVA.TO) is down 2.5%. Vermilion Energy (VET.TO), MEG Energy Corp (MEG.TO), Suncor Energy (SU.TO), Cenovus Energy (CVE.TO), Peyto Exploration (PEY.TO) and Whitecap Resources (WCP.TO) are down 1.6 to 2%.
Cronos Group Inc. (CRON.TO) is rising nearly 15%. The company reported third-quarter net income of US$7,324 million, as against a loss of US$1,590 million in the year-ago quarter.
On the economic front, data from Statistics Canada showed building permits in Canada increased 11.5% in September from -6.3% in August.
Bay Street Likely To Open On Mixed Note
(RTTNews) - Canadian shares are likely to open on a mixed note Tuesday morning, tracking global stocks and commodity prices. Activity is likely to remain stock specific with investors reacting to quarterly earnings updates.
Data from Statistics Canada showed building permits in Canada increased 11.5% in September from -6.3% in August.
Shopify Inc. (SHOP.TO) reported third-quarter revenue of US$2.16 billion, up from $1.71 billion a year earlier. The company said it expects fourth-quarter revenue to grow "at a mid-to-high-twenties percentage rate on a year-over-year basis."
Cronos Group Inc. (CRON.TO) reported third-quarter net income of US$7,324 million, as against a loss of US$1,590 million in the year-ago quarter.
After opening slightly up and rising further Monday morning, the Canadian market turned a bit sluggish and then kept paring gains as the day progressed before finally settling with a marginal gain.
Donald Trump's win in the U.S. presidential election continued to aid sentiment and contributed to market's early gains. However, with a slew of key economic data due this week, the mood turned cautious.
The benchmark SP/TSX Composite Index closed up 29.88 points or 0.12% at 24,789.28, well off the day's high of 24,901.51, but still recorded a new closing high.
Asian stocks slipped into the red on Tuesday, with Chinese and Hong Kong markets leading losses, as investors await U.S. President-elect Trump's stance on the economy, immigration, foreign policy and more.
European stocks are notably lower as reports that Donald Trump will appoint Michael Waltz as his national security adviser and Marco Rubio as secretary of state, indicate hardline positions on China, Iran and Venezuela.
In commodities, West Texas Intermediate Crude oil futures are up $0.60 or 0.88% at $68.66 a barrel.
Gold futures are down $2.80 or 0.11% at $2,614.90 an ounce, while Silver futures are up $0.047 ot 0.15% at $30.660 an ounce.
Rivian Stock Gains On $5.8 Bln JV With Volkswagen
(RTTNews) - Shares of Rivian Automotive, Inc. gained around 10 percent in the extended trading on Nasdaq on Tuesday after the electric vehicle maker announced a joint venture partnership with German auto major Volkswagen Group, with a total deal size of up to $5.8 billion.
The new joint venture, Rivian and VW Group Technology, LLC, is intended to create next-generation electrical architecture and vertically integrated software for electric vehicles.
The JV will combine Rivian's software and electrical hardware technology as well as Volkswagen's significant global scale and vehicle platform competencies across a variety of segments and price points.
Total deal size is composed of a convertible note of $1 billion, which was issued and funded in June 2024 and will automatically convert into Rivian equity on December 1, 2024.
Further, Volkswagen will make a cash payment of $1.3 billion to Rivian in connection with the closing of the JV, as consideration for licensing of background IP and a 50 percent equity stake in the JV.
The German automaker will also make an additional $1 billion investment into Rivian equity no earlier than June 2025, and an additional $750 million investment into Rivian equity no earlier than January 2026, both on certain conditions.
An additional $250 million investment into Rivian equity will be made no earlier than January 2026.
In addition, Volkswagen will make available for the benefit of Rivian a $1 billion loan in October 2026, and an additional $460 million investment into Rivian equity which will be funded at the earlier of January 3, 2028 or the first production of a saleable Volkswagen Group vehicle using the joint venture's technology.
The JV will be headquartered in Palo Alto, California, and governed by a Co-CEO structure. Wassym Bensaid, Rivian's Chief Software Officer, will also serve as Co-CEO and Chief Technology Officer of the JV, with technical responsibility.
Further, Carsten Helbing, Volkswagen's Chief Technology Engineer, will serve as future Co-CEO and Chief Operating Officer of the JV, with its commercial responsibility.
Bensaid and Helbing will each maintain responsibilities at Rivian and Volkswagen Group, respectively.
The JV Board will be composed of four members, with two each from Rivian and Volkswagen Group.
Rivian will transfer the majority of the initial software and hardware teams responsible for developing the network architecture and full software stack within the JV. From Volkswagen, technical and non-technical employees are also expected to join.
Under the deal terms, Volkswagen, through 2028, will fund 75 percent of the shared platform costs within the JV, while Rivian will fund 25 percent of these costs. Each business will fund 100 percent of the development costs exclusively designed for its vehicles and businesses.
In 2029 and beyond, shared costs will be split equally. However, beginning in 2029, Volkswagen will fund an incremental $100 million per year of the JV's shared costs which will reduce Rivian's shared costs.
Rivian expects that the initial and planned investments from Volkswagen, in addition to its current cash, cash equivalents, and short-term investments, will help it to fund key future growth opportunities such as R2 and R3, key vertically integrated technologies, manufacturing capacity expansion, and its go-to-market footprint and capabilities.
In a statement, Rivian said, "The combination of Rivian's electrical architecture and software platform and Volkswagen Group's global scale, broad segment coverage, and capabilities uniquely position the joint venture to be a leader in the development of software and associated zonal electrical architecture that is designed to create structural cost advantages and be scalable across multiple vehicle brands, segments, price points, and international markets."
On the NasdaqGS, Rivian shares closed Tuesday's regular trading at $10.58, down 4.17 percent. Following the news of the upgraded investment, the shares gained 9.5 percent in the after-hours trading at $11.58.
Thai Stock Market Poised To Extend Losing Streak
(RTTNews) - The Thai stock market has moved lower in three straight sessions, slumping almost 25 points or 1.6 percent along the way. The Stock Exchange of Thailand now sits just above the 1,445-point plateau and it's looking at another soft start 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 SET finished modestly lower again on Tuesday following losses from the food, finance, consumer, property and resource sectors.
For the day, the index sank 11.40 points or 0.78 percent to finish at 1,445.07 after trading between 1,443.15 and 1,460.13. Volume was 15.581 billion shares worth 42.690 billion baht. There were 430 decliners and 102 gainers, with 133 stocks finishing unchanged.
Among the actives, Advanced Info rose 0.35 percent, while Thailand Airport weakened 1.23 percent, Asset World tanked 2.27 percent, Bangkok Bank shed 0.68 percent, Bangkok Dusit Medical slumped 2.83 percent, Bangkok Expressway improved 0.65 percent, B. Grimm stumbled 2.84 percent, BTS Group advanced 0.82 percent, CP All Public was down 0.40 percent, Charoen Pokphand Foods added 0.31 percent, Energy Absolute plunged 3.79 percent, Gulf gained 0.39 percent, Kasikornbank fell 0.34 percent, Krung Thai Bank retreated 1.44 percent, Krung Thai Card slid 0.53 percent, PTT Oil Retail dropped 0.69 percent, PTT Exploration and Production skidded 1.19 percent, PTT Global Chemical tumbled 1.94 percent, Siam Commercial Bank lost 0.44 percent, Siam Concrete dipped 0.51 percent, Thai Oil surrendered 2.99 percent, TTB Bank sank 0.57 percent and SCG Packaging, True Corporation, Banpu and PTT 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.
Sensex, Nifty Set To Extend Losses
(RTTNews) - Indian shares may drift lower on Wednesday as investors react to weak global cues and signs of rising domestic inflation.
Global sentiment remains fragile due to uncertainty over U.S.-President-election Trump's policy stance and Fed's policy.
India's consumer price inflation accelerated in October to the highest level more than a year amid rising food costs, data from the National Statistical Office revealed Tuesday.
Consumer prices surged 6.21 percent on a yearly basis in October, faster than the 5.49 percent rise seen in September. The expected rate was 5.81 percent.
Further, this was the highest inflation rate since August 2023, when prices had risen 6.83 percent.
Separate set of data revealed that India's industrial production expanded strongly in September after a slight fall in the previous month.
Industrial production rose 3.1 percent from a year ago, reversing a 0.1 percent fall in August amid heavy rainfall effects. That was above the expected growth of 2.5 percent.
Benchmark indexes Sensex and Nifty fell over 1 percent each on Tuesday amid concerns over FII outflows and disappointment stemming from a weak domestic earnings season.
Asian markets traded lower this morning, and the dollar extended its post-election rally ahead of the release of U.S. consumer price inflation reading later in the day.
Treasury 10-year yields were little changed after surging 12 basis points on Tuesday.
Gold traded firm above $2,600 per ounce after hitting nearly a two-month low on Tuesday in the face of a stronger dollar.
Oil steadied neared its lowest level this month, as OPEC cut its forecast for global oil demand growth in 2024.
U.S. stocks fluctuated before ending slightly lower overnight as investors booked some profits from a post-election rally ahead of closely watched economic data due later in the week.
The SP 500 dipped 0.3 percent to snap a five-session winning streak and log its worst day since Oct. 31 as Treasury yields surged in anticipation that Donald Trump's pledged policies on tariffs will rekindle inflation and keep U.S. interest rates high.
The Dow shed 0.9 percent and the tech-heavy Nasdaq Composite slid 0.1 percent.
European shares fell sharply on Tuesday as ECB policymakers warned that Trump's protectionist policies would put upward pressure on inflation and hamper global growth.
The pan-European STOXX 600 plummeted 2 percent. The German DAX lost 2.1 percent, France's CAC 40 tumbled 2.7 percent and the U.K.'s FTSE 100 gave up 1.2 percent.
U.S. Consumer Prices Rise In Line With Estimates In October
(RTTNews) - A closely watched report released by the Labor Department on Wednesday showed consumer prices in the U.S. rose in line with economist estimates in the month of October.
The Labor Department said its consumer price index crept up by 0.2 percent in October, matching the upticks seen in each of the three previous months as well as expectations.
The report also said the annual rate of consumer price growth accelerated to 2.6 percent in October from 2.4 percent in September. The faster growth also came in line with economist estimates.
Excluding food and energy prices, core consumer prices climbed by 0.3 percent in October, matching the increases seen in each of the two previous months along with expectations.
The annual rate of core consumer price growth was unchanged from the previous month at 3.3 percent, which also in line with estimates.
Japanese Market Sharply Lower
(RTTNews) - The Japanese stock market is trading sharply lower on Wednesday, extending to the losses in the previous session, following the broadly negative cues from Wall Street overnight. The Nikkei 225 is falling well below the 39,000 mark, with weakness across most sectors led by index heavyweights and automaker stocks.
The benchmark Nikkei 225 Index is down 464.03 or 1.18 percent at 38,912.06, after hitting a low of 38,814.07 earlier. Japanese stocks ended modestly lower on Tuesday.
Market heavyweight SoftBank Group is edging down 0.4 percent and Uniqlo operator Fast Retailing is down 1.5 percent. Among automakers, Honda is losing 3.5 percent and Toyota is declining 1.5 percent.
In the tech space, Advantest is edging down 0.4 percent, while Tokyo Electron is adding almost 3 percent and Screen Holdings is gaining more than 1 percent.
In the banking sector, Sumitomo Mitsui Financial is edging down 0.1 percent and Mitsubishi UFJ Financial is losing almost 1 percent, while Mizuho Financial is gaining almost 1 percent.
Among the major exporters, Sony is losing more than 1 percent and Canon is down almost 1 percent, while Mitsubishi Electric is edging up 0.5 percent and Panasonic is gaining more than 1 percent.
Among other major losers, NEXON is plummeting almost 14 percent and Sumitomo Metal Mining is sliding almost 8 percent, while Daiichi Sankyo and JGC Holdings are slipping more than 5 percent each. Japan Exchange is down more than 4 percent, while Hitachi, Recruit Holdings, Sumitomo Realty Development, Tokyo Tatemono and DeNA are losing more than 3 percent each. Terumo, Konami Group, Yamaha Motor and Otsuka Holdings are declining almost 3 percent each.
Conversely, Sharp is skyrocketing almost 13 percent and Resona Holdings is gaining almost 4 percent, while Marui Group and Furukawa Electric are adding almost 3 percent each.
In economic news, producer prices in Japan were up 0.2 percent on month in October, the Bank of Japan said on Wednesday. That exceeded expectations for a flat reading and was down from the upwardly revised 0.3 percent in September (originally flat).
On a yearly basis, producer prices climbed 3.4 percent - again beating forecasts for 2.9 percent and up from the upwardly revised 3.1 percent in the previous month (originally 2.9 percent). Export prices were flat on month and up 0.6 percent on year, the bank said, while import prices fell 0.2 percent on month and 2.1 percent on year.
In the currency market, the U.S. dollar is trading in the higher 154 yen-range on Wednesday.
On the Wall Street, stocks gave back ground during trading on Tuesday following the strong upward move seen in reaction to last week's last elections. The major averages fluctuated over the course of the trading session before eventually closing in negative territory.
The Dow underperformed its counterparts, slumping 382.15 points or 0.9 percent to 43,910.98. The SP 500 dipped 17.36 points or 0.3 percent to 5,983.99 and the tech-heavy Nasdaq edged down 17.36 points or 0.1 percent to 19,281.40.
The major European markets also showed significant moves to the downside on the day. While the French CAC 40 Index plunged by 2.7 percent, the German DAX Index tumbled by 2.1 percent and the U.K.'s FTSE 100 Index slid by 1.2 percent.
Crude 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.
Asian Shares Decline Amid Trump Policy Uncertainty
(RTTNews) - Asian stocks hit two-month lows on Wednesday as investors fretted about the impact of U.S. President-elect Trump's proposed tariffs on inflation and interest rates.
Trump's choice of China hawks in his Cabinet and China's faltering growth also kept investors on the sidelines.
U.S. Treasury yields pushed higher and the dollar rally gained further momentum as investors awaited key U.S. consumer and producer inflation readings this week for hints of a possible Federal Reserve rate cut in December.
Traders are currently pricing in about two Fed rate cuts through June, against almost four seen at the start of last week.
Gold traded around $2,600 per ounce levels in Asian trade while oil edged up slightly on signs of near-term supply tightness but remained near their lowest in two weeks, a day after OPEC revised down its forecasts for global oil demand this year and next.
China's Shanghai Composite index rose 0.51 percent to 3,439.28 as Beijing began marketing its first U.S. dollar sovereign bonds in three years in Saudi Arabia.
The yuan bounced off a more than three-month low against the dollar, lifted by firmer-than-expected official midpoint guidance.
Hong Kong's Hang Seng index dipped 0.12 percent to 19,823.45, extending declines for a fourth day running.
Japanese markets tumbled as five-year government bond yield hit a 15-year high amid increased bets for the Bank of Japan to raise interest rates.
The Nikkei average fell 1.66 percent to 38,721.66 as data revealed Japan's producer price index rose by 3.4 percent year-on-year in October, beating expectations. The broader Topix index settled 1.21 percent lower at 2,708.42 while the yen hovered near the key level of 155 per greenback.
Seven i Holdings surged 11.8 percent after the owner of 7-Eleven said it has received a buyout proposal from a member of its founding Ito family.
Seoul stocks lost ground to reach a one-year low on growing concerns over policy uncertainty under the incoming U.S. Trump administration.
The Kospi average fell 2.64 percent to 2,417.08, extending its losing streak to a fourth day.
Market heavyweight Samsung Electronics slumped 4.5 percent amid lingering concerns over its business competitiveness in the chip market. Peer SK Hynix gave up 1.6 percent.
Australian markets fell for a third consecutive session amid a broad selloff. The benchmark SP/ASX 200 dropped 0.75 percent to 8,193.40 despite Commonwealth Bank of Australia reporting first-quarter cash earnings slightly ahead of market consensus. The broader All Ordinaries index closed 0.76 percent lower at 8,450.90.
Across the Tasman, New Zealand's benchmark SP/NZX-50 index slid 0.59 percent to 12,674.49.
U.S. stocks fluctuated before ending slightly lower overnight as investors booked some profits from a post-election rally ahead of closely watched economic data due later in the week.
The SP 500 dipped 0.3 percent to snap a five-session winning streak and log its worst day since Oct. 31 as Treasury yields surged in anticipation that Donald Trump's pledged policies on tariffs will rekindle inflation and keep U.S. interest rates high.
The Dow shed 0.9 percent and the tech-heavy Nasdaq Composite slid 0.1 percent.
Sensex, Nifty Drift Lower In Early Trade
(RTTNews) - Indian shares followed global peers lower on Wednesday as uncertainty prevailed over U.S.-President-election Trump's policy stance and Fed's policy.
Sentiment was also dented after official data showed India's consumer price inflation accelerated in October to the highest level more than a year amid rising food costs.
Consumer prices surged 6.21 percent on a yearly basis in October, faster than the 5.49 percent rise seen in September. The expected rate was 5.81 percent.
The benchmark SP/BSE Sensex was down 254 points, or 0.3 percent, at 78,420 in early trade after falling more than 1 percent in the previous session on concerns over FII outflows and disappointment stemming from a weak domestic earnings season.
The broader NSE Nifty index was down 120 points, or half a percent, at 23,762.
Tata Steel, Eicher Motors, Hero Moto Corp, Mahindra Mahindra and BEL were down 2-3 percent while NTPC rose 1.4 percent and SBI Life added half a percent.
U.S. Consumer Price Inflation Data Matches Economist Estimates In October
(RTTNews) - A closely watched report released by the Labor Department on Wednesday showed consumer prices in the U.S. rose in line with economist estimates in the month of October.
The Labor Department said its consumer price index crept up by 0.2 percent in October, matching the upticks seen in each of the three previous months as well as expectations.
The report also said the annual rate of consumer price growth accelerated to 2.6 percent in October from 2.4 percent in September. The faster growth also came in line with economist estimates.
The modest monthly increase by consumer prices was due in large part to higher shelter costs, which climbed by 0.4 percent in October after rising by 0.2 percent in September
Food prices also rose by 0.2 percent in October after increasing by 0.4 percent in September, while energy prices were unchanged in October after tumbling by 1.9 percent in September.
Excluding food and energy prices, core consumer prices climbed by 0.3 percent in October, matching the increases seen in each of the two previous months along with expectations.
The annual rate of core consumer price growth was unchanged from the previous month at 3.3 percent, which also in line with estimates.
The higher shelter costs contributed to the monthly increase by core consumer prices along with higher prices for used cars and trucks, airline fares, medical care, and recreation.
Meanwhile, prices for apparel, communication, and household furnishings and operations were among those that decreased over the month.
"The October CPI readings came right in line with expectations, keeping alive the prospect of another 25bps rate cut next month," said Nationwide Chief Economist Kathy Bostjancic. "With the 6-month core CPI annualized rate holding steady at 2.6%, we maintain our call for a December rate cut."
She added, "However, it is a close call then in prior months since the 3-month annualized rate accelerated to 3.6% from 3.1% in September."
The Labor Department is scheduled to release a separate report on Thursday on producer price inflation in the month of October.
Producer prices are expected to rise by 0.2 percent in October after coming in unchanged in September, while the annual rate of growth is expected to accelerate to 2.3 percent from 1.8 percent.
Asian Markets Track Wall Street Lower
(RTTNews) - Asian stock markets are trading mostly lower on Wednesday, following the broadly negative cues from Wall Street overnight, as weak commodity prices are triggering some heavy selling in energy and materials sectors. Some traders also looked to cash in on the recent strength in the markets following the U.S. elections and seemed reluctant to make more significant moves ahead of the highly anticipated report on US consumer price inflation later in the day. Asian markets closed mostly lower on Tuesday.
Australian shares are trading significantly lower on Wednesday, adding to the losses in the previous two sessions, with the benchmark SP/ASX 200 falling well below the 8,200 level, following the broadly negative cues from Wall Street overnight, with weakness across most sectors led by mining and energy stocks amid weak commodity prices.
The benchmark SP/ASX 200 Index is losing 78.70 points or 0.95 percent to 8,176.90, after hitting a low of 8,139.10 earlier. The broader All Ordinaries Index is down 79.70 points or 0.94 percent to 8,435.50. Australian stocks ended slightly lower on Tuesday.
Among major miners, BHP Group is losing almost 2 percent and Rio Tinto is declining more than 3 percent, while Fortescue Metals is flat. Mineral Resources is slipping almost 7 percent on news the lithium miner will put operations on hold at the Bald Hill site in Western Australia until spodumene prices improve.
Oil stocks are mostly lower. Woodside Energy and Beach energy are losing more than 1 percent each, while Santos and Origin Energy are edging down 0.3 to 0.5 percent each.
In the tech space, Zip is losing almost 1 percent and Appen is declining almost 4 percent, while Afterpay owner Block is gaining almost 4 percent. WiseTech Global and Xero are edging up 0.1 to 0.5 percent each.
Among the big four banks, Commonwealth Bank and Westpac are losing almost 2 percent each, while National Australia Bank is declining more than 2 percent and ANZ Banking is slipping almost 5 percent.
Among gold miners, Evolution Mining and Newmont are losing 1.5 percent each, while Gold Road Resources is down almost 1 percent, Northern Star Resources is edging down 0.4 percent and Resolute Mining is declining more than 3 percent.
In other news, shares in Light Wonder are slipping more than 6 percent after it reported a 15 percent rise in gaming revenue in the three months to the end of September, driven by global gaming machine sales growth. However, earnings per share fell short of analysts' expectations.
Shares is James Hardie are surging are almost 6 percent after the building materials giant reaffirmed the lower end of its volume guidance, despite posting a 23 percent drop in net profit, citing a "challenging demand environment" for its products, particularly in Asia and Europe.
Shares in Selfwealth are skyrocketing 72 percent after it received a buyout offer from Bell Financial Group at 22¢ apiece, almost double yesterday's closing price.
In economic news, the wage price index in Australia was up a seasonally adjusted 0.8 percent on quarter in the third quarter of 2024, the Australian Bureau of Statistics said on Wednesday. That was unchanged from the previous three months, although it was shy of expectations for an increase of 0.9 percent. Both the private sector and the public sector rose 0.8 percent for the quarter.
On a yearly basis, wage prices were up 3.5 percent - again short of forecasts for 3.6 percent and down from 4.1 percent in the second quarter.
In the currency market, the Aussie dollar is trading at $0.653 on Wednesday.
The Japanese stock market is trading significantly lower on Wednesday, extending to the losses in the previous session, following the broadly negative cues from Wall Street overnight. The Nikkei 225 is falling well below the 39,000 mark, with weakness across most sectors led by index heavyweights and automaker stocks.
The benchmark Nikkei 225 Index closed the morning session at 38,953.44, down 422.65 points or 1.07 percent, after hitting a low of 38,814.07 earlier. Japanese stocks ended modestly lower on Tuesday.
Market heavyweight SoftBank Group is edging down 0.4 percent and Uniqlo operator Fast Retailing is down 1.5 percent. Among automakers, Honda is losing 3.5 percent and Toyota is declining 1.5 percent.
In the tech space, Advantest is edging down 0.4 percent, while Tokyo Electron is adding almost 3 percent and Screen Holdings is gaining more than 1 percent.
In the banking sector, Sumitomo Mitsui Financial is edging down 0.1 percent and Mitsubishi UFJ Financial is losing almost 1 percent, while Mizuho Financial is gaining almost 1 percent.
Among the major exporters, Sony is losing more than 1 percent and Canon is down almost 1 percent, while Mitsubishi Electric is edging up 0.5 percent and Panasonic is gaining more than 1 percent.
Among other major losers, NEXON is plummeting almost 14 percent and Sumitomo Metal Mining is sliding almost 8 percent, while Daiichi Sankyo and JGC Holdings are slipping more than 5 percent each. Japan Exchange is down more than 4 percent, while Hitachi, Recruit Holdings, Sumitomo Realty Development, Tokyo Tatemono and DeNA are losing more than 3 percent each. Terumo, Konami Group, Yamaha Motor and Otsuka Holdings are declining almost 3 percent each.
Conversely, Sharp is skyrocketing almost 13 percent and Resona Holdings is gaining almost 4 percent, while Marui Group and Furukawa Electric are adding almost 3 percent each.
In economic news, producer prices in Japan were up 0.2 percent on month in October, the Bank of Japan said on Wednesday. That exceeded expectations for a flat reading and was down from the upwardly revised 0.3 percent in September (originally flat).
On a yearly basis, producer prices climbed 3.4 percent - again beating forecasts for 2.9 percent and up from the upwardly revised 3.1 percent in the previous month (originally 2.9 percent). Export prices were flat on month and up 0.6 percent on year, the bank said, while import prices fell 0.2 percent on month and 2.1 percent on year.
In the currency market, the U.S. dollar is trading in the higher 154 yen-range on Wednesday.
Elsewhere in Asia, South Korea is down 1.4 percent, while New Zealand, China, Hong Kong and Malaysia are higher by between 0.2 and 1.0 percent each. Singapore, Indonesia and Taiwan are higher by between 0.1 and 0.4 percent each.
On the Wall Street, stocks gave back ground during trading on Tuesday following the strong upward move seen in reaction to last week's last elections. The major averages fluctuated over the course of the trading session before eventually closing in negative territory.
The Dow underperformed its counterparts, slumping 382.15 points or 0.9 percent to 43,910.98. The SP 500 dipped 17.36 points or 0.3 percent to 5,983.99 and the tech-heavy Nasdaq edged down 17.36 points or 0.1 percent to 19,281.40.
The major European markets also showed significant moves to the downside on the day. While the French CAC 40 Index plunged by 2.7 percent, the German DAX Index tumbled by 2.1 percent and the U.K.'s FTSE 100 Index slid by 1.2 percent.
Crude 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.
