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U.S. Jobless Claims Unexpectedly Dip To Nearly Six-Month Low
(RTTNews) - First-time claims for U.S. unemployment benefits unexpectedly edged lower in the week ended November 9th, according to a report released by the Labor Department on Thursday.
The report said initial jobless claims slipped to 217,000, a decrease of 4,000 from the previous week's unrevised level of 221,000. Economists had expected jobless claims to inch up to 223,000.
The unexpected decline pulled jobless claims down to their lowest level since hitting 216,000 in the week ended May 18th.
"Our base case is for claims to remain in recent ranges, which we view as consistent with a resilient labor market," said Nancy Vanden Houten, Lead U.S. Economist at Oxford Economics.
She added, "However, starting with the next week's report, seasonal factors related to holidays and seasonal layoffs may make the headline figures noisier than usual for several weeks."
The Labor Department said the less volatile four-week moving average also dipped to 221,000, a decrease of 6,250 from the previous week's unrevised average of 227,250.
Continuing claims, a reading on the number of people receiving ongoing unemployment assistance, also fell by 11,000 to 1.873 million in the week ended November 2nd.
Meanwhile, the four-week moving average of continuing claims, crept up by 1,000 to 1,874,500, reaching the highest level since November 2021.
"Despite the decline in initial claims, continued claims may remain elevated for longer as it may take time for some of those who suffered job losses related to the hurricanes or the Boeing strike to return to work or find new jobs," said Vanden Houten.
Japan GDP Data Due On Friday
(RTTNews) - Japan will on Friday release preliminary Q3 numbers for gross domestic product, highlighting a busy day for Asia-Pacific economic activity. GDP is expected to add 0.2 percent on quarter and 2.5 percent on year after rising 0.7 percent on quarter and 2.9 percent on year in the three months prior.
South Korea will provide October figures for imports, exports and trade balance; in September, imports were up 1.7 percent on year and exports rose an annual 4.6 percent for a trade surplus of $3.17 billion.
China will release October data for fixed asset investment, industrial production, retail sales and unemployment. FAI is expected to rise 3.5 percent on year, up from 3.4 percent in September. Industrial production is tipped to add an annual 5.5 percent, up from 5.4 percent in the previous month. Sales are seen higher by 3.8 percent on year, up from 3.2 percent a month earlier. The jobless rate is seen steady at 5.1 percent.
Malaysia will see Q3 numbers for current account and gross domestic product; in Q2, the current account surplus was MYR300 billion, while GDP expanded 5.9 percent on year.
Indonesia will provide October trade data; in September, imports were up 8.55 percent on year and exports rose an annual 6.44 percent for a trade surplus of IDR3.26 billion.
Hong Kong will release Q3 data for gross domestic product; in the previous three months, GDP was down 1.1 percent on quarter and up 1.8 percent on year.
U.S. Producer Prices Rise 0.2% In October, In Line With Estimates
(RTTNews) - After yesterday's consumer price inflation data matched expectations, the Labor Department released a separate report on Thursday showing producer prices in the U.S. also increased in line with economist estimates in the month of October.
The Labor Department said its producer price index for final demand rose by 0.2 percent in October following a revised 0.1 percent uptick in September.
Economists had expected producer prices to rise by 0.2 percent compared to the unchanged reading originally reported for the previous month.
Meanwhile, the report said the annual rate of growth by producer prices accelerated to 2.4 percent in October from an upwardly revised 1.9 percent in September.
The annual rate of producer price growth was expected to accelerate to 2.3 percent from the 1.8 percent originally reported for the previous month.
The modest monthly increase by producer prices was largely due to higher prices for services, which climbed by 0.3 percent in October after rising by 0.2 percent in September.
The Labor Department said over three-fourths of the advance by prices for services was due to a 0.3 percent increase by prices for services less trade, transportation, and warehousing. Prices for portfolio management surged by 3.6 percent.
Prices for transportation and warehousing services also climbed by 0.5 percent, while prices for trade services inched up by 0.1 percent.
Meanwhile, the report said energy prices fell by 0.3 percent in October after tumbling by 2.8 percent in September, while food prices dipped by 0.2 percent in October after jumping by 1.0 percent in September.
Prices for goods still crept up by 0.1 percent due in large part to an 8.4 percent spike by prices for carbon steel scrap.
Excluding prices for food, energy and trade services, core producer prices rose by 0.3 percent in October after inching up by 0.1 percent in September.
The annual rate of growth by core producer prices accelerated to 3.5 percent in October from 3.3 percent in September.
"A rise in the headline and core PPI indices won't dampen percolating fears of a higher inflation environment after Wednesday's CPI report," said Nationwide Financial Markets Economist Oren Klachkin.
"And yet while they highlight upside risks to our inflation call, the latest data don't completely disrupt the disinflation narrative. We're vigilant for bumps ahead," he added. "PPI won't decisively alter the Fed's easing bias, but it makes charting the policy outlook murkier."
A separate 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 was also in line with estimates.
DAX Rises On Upbeat Earnings
(RTTNews) - German stocks advanced on Thursday as investors reacted to upbeat earnings news and awaited Eurozone GDP later in the day.
Bundesbank President Joachim Nagel warned on Wednesday that Donald Trump's threatened trade levies risk derailing the German economy.
"If the tariff plans are implemented, it could cost us 1 percent of economic output," he told Die Zeit newspaper in an interview.
The benchmark DAX was up 136 points, or 0.7 percent, at 19,139 after falling 0.2 percent in the previous session.
Deutsche Telekom rallied 2.7 percent after the telecoms group beat third-quarter profit expectations and raised its full-year core profit guidance.
Engineering group Siemens soared 7.3 percent after Q4 earnings topped expectations.
Yen Falls Against Majors
(RTTNews) - The Japanese yen weakened against other major currencies in the Asian session on Thursday.
The yen fell to a 2-day low of 198.00 against the pound, from yesterday's closing value of 197.47.
Against the U.S. and the Canadian dollars, the yen slipped to nearly 4-month lows of 156.15 and 111.42 from Wednesday's closing quotes of 155.45 and 111.05, respectively.
Against the euro and the Swiss franc, the yen edged down to 164.68 and 175.92 from yesterday's closing quotes of 164.20 and 175.41, respectively.
If the yen extends its downtrend, it is likely to find support around 158.00 against the greenback, 112.00 against the loonie, 199.00 against the pound, 166.00 against the euro and 177.00 against the franc.
U.S. Producer Prices Increase In Line With Estimates In October
(RTTNews) - After yesterday's consumer price inflation data matched expectations, the Labor Department released a separate report on Thursday showing producer prices in the U.S. also increased in line with economist estimates in the month of October.
The Labor Department said its producer price index for final demand rose by 0.2 percent in October following a revised 0.1 percent uptick in September.
Economists had expected producer prices to rise by 0.2 percent compared to the unchanged reading originally reported for the previous month.
Meanwhile, the report said the annual rate of growth by producer prices accelerated to 2.4 percent in October from an upwardly revised 1.9 percent in September.
The annual rate of producer price growth was expected to accelerate to 2.3 percent from the 1.8 percent originally reported for the previous month.
Thai Shares Tipped To Open In The Red On Friday
(RTTNews) - The Thai stock market turned lower again on Thursday, one day after snapping the three-day losing streak in which it had slumped almost 25 points or 1.6 percent. The Stock Exchange of Thailand now sits just above the 1,450-point plateau and it's expected to open under pressure again on Friday.
The global forecast for the Asian markets is soft on concerns over the outlook for interest rates. The European markets were up and the U.S bourses were down and the Asian markets figure to follow the latter lead.
The SET finished slightly lower on Thursday as losses from the finance, industrial and property sectors were mitigated by support from the food and technology companies.
For the day, the index dipped 1.35 points or 0.09 percent to finish at 1,450.12 after trading between 1,441.15 and 1,461.99. Volume was 14.419 billion shares worth 59.358 billion baht. There were 292 decliners and 218 gainers, with 165 stocks finishing unchanged.
Among the actives, Advanced Info dipped 0.35 percent, while Thailand Airport tumbled 2.09 percent, Asset World declined 1.17 percent, Bangkok Expressway lost 0.65 percent, CP All Public rallied 2.38 percent, Charoen Pokphand Foods fell 0.40 percent, Energy Absolute plummeted 4.88 percent, Gulf jumped 1.98 percent, Kasikornbank retreated 1.35 percent, Krung Thai Bank dropped 0.97 percent, Krung Thai Card shed 0.53 percent, PTT Oil Retail surrendered 2.08 percent, PTT sank 0.76 percent, PTT Exploration and Production weakened 1.23 percent, PTT Global Chemical tanked 2.43 percent, Siam Commercial Bank slid 0.44 percent, Siam Concrete slumped 1.02 percent, Thai Oil added 0.61 percent, True Corporation stumbled 1.67 percent, TTB Bank skidded 1.14 percent and Bangkok Bank, SCG Packaging, Banpu, B. Grimm, Bangkok Dusit Medical and BTS Group were unchanged.
The lead from Wall Street is weak as the major averages opened flat on Thursday but quickly fell into the red and stayed that way, ending near session lows.
The Dow dropped 207.33 points or 0.47 percent to finish at 43,750.86, while the NASDAQ slumped 123.07 points or 0.64 percent to close at 19,107.65 and the SP 500 sank 36.21 points or 0.60 percent to end at 5,949.17.
The weakness that emerged on Wall Street late in the session came after Federal Reserve Chair Jerome Powell said the central bank does not "need to be in a hurry to lower rates" due to the strength of the economy.
Powell's remarks came as the latest batch of U.S. economy data generated some uncertainty about the outlook for interest rates after the Labor Department said first-time claims for U.S. jobless benefits unexpectedly edged lower last week.
While the Fed is still widely expected to lower interest rates by a quarter point next month, there is some concern that sticky inflation will lead the central bank to slow the pace of its rate cuts in early 2025.
Oil futures settled higher on Thursday, supported by data showing a drop in gasoline stockpiles. West Texas Intermediate Crude oil futures for December closed up $0.27 or about 0.4 percent at $68.70 a barrel.
Swiss Market Ends On Firm Note
(RTTNews) - After languishing in negative territory till noon, Swiss stocks moved higher on Thursday and ended the session on a firm note, in line with markets across Europe.
The benchmark SMI, which dropped to 11,652.40 in early trades, closed up 79.84 points or 0.68% at 11,783.65. The index touched a high of 11,801.07.
Straumann Holding climbed about 3.3%. Logitech International and Kuehne + Nagel gained 2.97% and 2.63%, respectively. Swatch Group, Richemont and Partners Group ended higher by 2.3 to 2.5%.
SIG Group and VAT Group ended up 1.84% and 1.8%, respectively. Geberit, Nestle, Zurich Insurance Group and ABB advanced 1 to 1.35%. Julius Baer, Novartis, Adecco, UBS Group, Swisscom and Schindler Ps also closed on a firm note.
Swiss Re gained about 0.5%. The insurer recorded a year-over-year drop in third-quarter group net income to $102 million from $1.02 billion, with revenue also declining over the period. The group expects net income for full-year 2024 to exceed $3 billion, assuming normal loss activity for the remainder of the year.
Shares of pharmaceutical company Curatis climbed nearly 10% after the company announced its intention to apply for a biologic license for its C-PTBE-01 drug (for treating diffuse midline glioma, an aggressive brain tumor) in the US. Its regulatory pathway review concluded that the treatment qualifies for the application.
Sandoz Group closed down 1.4%. Alcon ended lower by 1.01% and Holcim closed with a loss of 0.76%. Roche Holding, Swiss Life Holding and Lindt Ps also ended weak.
Powell Says Fed Doesn't Need To Be In A Hurry To Lower Rates
(RTTNews) - Following the Federal Reserve's decision to lower interest rates by a quarter point last week, Fed Chair Jerome Powell said in remarks on Thursday that the central bank does not "need to be in a hurry to lower rates" due to the strength of the economy.
"The economy is not sending any signals that we need to be in a hurry to lower rates," Powell said during an event in Dallas, Texas. "The strength we are currently seeing in the economy gives us the ability to approach our decisions carefully."
Powell's comments on the outlook for rates came as he described the U.S. economy's performance as "remarkably good," noting the labor market remains in solid condition but is no longer a source of significant inflationary pressures.
The Fed chief noted the labor market cooling and the substantial improvement in broader supply conditions have brought inflation down toward the central bank's target of 2 percent over the longer run.
Powell noted the progress toward the inflation target allowed the Fed to lower rates by 25 basis points last week after cutting rates by 50 basis points in September.
"We are confident that with an appropriate recalibration of our policy stance, strength in the economy and the labor market can be maintained, with inflation moving sustainably down to 2 percent," he said.
Powell said the Fed is attentive to risks to both its employment and inflation goals, noting cutting rates too quickly could hinder progress on inflation but cutting rates too slowly could unduly weaken economic activity and employment.
"We are moving policy over time to a more neutral setting. But the path for getting there is not preset," Powell said. "Ultimately, the path of the policy rate will depend on how the incoming data and the economic outlook evolve."
The Fed's next monetary policy meeting is scheduled for December 17-18, with CME Group's FedWatch Tool currently indicating a 67.3 percent chance the central bank lowers rates by another quarter point.
Australian Market Notably Higher
(RTTNews) - The Australian stock market is notably higher on Friday, adding to the gains in the previous session, despite the broadly negative cues from Wall Street overnight. The benchmark SP/ASX 200 is staying well above the 8,200 level, with gains across most sectors led by gold miners and technology stocks.
The benchmark SP/ASX 200 Index is gaining 43.90 points or 0.53 percent to 8,267.90, after touching a high of 8,273.90 earlier. The broader All Ordinaries Index is up 44.20 points or 0.52 percent to 8,524.10. Australian markets ended modestly higher on Thursday.
Among major miners, BHP Group is edging up 0.3 percent, while Rio Tinto is edging down 0.3 percent and Mineral Resources is losing more than 4 percent. Fortescue Metals is flat.
Oil stocks are mostly higher. Woodside Energy and Santos are gaining almost 1 percent each, while Beach energy is edging up 0.4 percent and Origin Energy is advancing almost 2 percent.
Among tech stocks, Zip is adding more than 2 percent, Appen is surging almost 5 percent, WiseTech Global is gaining almost 2 percent and Xero is up almost 1 percent each, while Afterpay-owner Block is losing more than 2 percent.
Among the big four banks, Commonwealth Bank and Westpac are gaining almost 1 percent each, while ANZ Banking is adding more than 1 percent and National Australia Bank is edging up 0.2 percent.
Gold miners are mostly higher. Evolution Mining is advancing almost 2 percent, Northern Star Resources is adding more than 1 percent, Newmont is up almost 1 percent and Gold Road Resources is rising more than 2 percent. Resolute Mining is flat.
In the currency market, the Aussie dollar is trading at $0.645 on Friday.
On Wall Street, stocks came under pressure in the latter part of the trading day on Thursday after showing a lack of direction for much of the session. The major averages slid more firmly into negative territory after spending most of the day bouncing back and forth across the unchanged line.
The major averages ended the day just off their lows of the session. The Dow slid 207.33 points or 0.5 percent to 43,750.86, the Nasdaq fell 123.07 points or 0.6 percent to 19,107.65 and the SP 500 declined 36.21 points or 0.6 percent to 5,949.17.
Meanwhile, the major European markets moved to the upside on the day. While the U.K.'s FTSE 100 Index climbed by 0.5 percent, the French CAC 40 Index and the German DAX Index jumped by 1.3 percent and 1.4 percent, respectively.
Crude oil prices settled higher on Thursday, supported by data showing a drop in gasoline stockpiles. West Texas Intermediate Crude oil futures for December closed up $0.27 or about 0.4 percent at $68.70 a barrel.
Canadian Market Up Firmly In Positive Territory
(RTTNews) - The Canadian market is modestly higher Thursday afternoon with energy stocks turning in a fine performance. Utilities, consumer staples and materials shares are among the other prominent gainers.
Technology stocks are down on profit taking after recent strong gains.
The benchmark SP/TSX Composite Index was up 121.99 points or 0.49% at 25,111.01 a little while ago.
The Energy Capped Index is up 2.22%. Paramount Resources (POU.TO) is up 17% after the company announced that it has entered into a purchase and sale agreement with Ovintiv Inc., and one of its wholly-owned subsidiaries (together, "Ovintiv") pursuant to which Ovintiv will acquire Paramount's Karr, Wapiti and Zama properties for $3.325 billion in cash plus certain Horn River Basin properties of Ovintiv.
Vermilion Energy (VET.TO), Kelt Exploration (KEL.TO) and Nuvista Energy (NVA.TO) are gaining 6%, 5.8% and 5%, respectively. Baytex Energy (BTE.TO), Parex Resources (PXT.TO), Suncor Energy (SU.TO), Veren Inc (VRN.TO), Athabasca Oil Corporation (ATH.TO) and Precision Drilling Corporation (PD.TO) are up 2.7 to 4%.
In the materials sector, Novagold (NG.TO) is rising more than 8%. First Majestic Silver (AG.TO) is gaining 6.3%. Lundin Mining (LUN.TO), Fortuna Silver Corp (FVI.TO), New Gold (NGD.TO), Calibre Mining Corp (CXB.TO), Capstone Mining (CS.TO) and MAG Silver Corp (MAG.TO) are up 3.5 to 4.7%.
Seabridge Inc (SEA.TO) is up 3.7%. Seabridge reported a net loss of $27.6 million ($0.31 per share) for the third quarter of this year, compared to a net loss of $5.3 million ($0.06 per share) for the same period last year.
Technology stocks Computer Modelling Group (CMG.TO) is down 6.7%. CGI Group (GIB.A.TO) is declining 5.2%. Dye Durham (DND.TO), Open Text Corp (OTEX.TO), Shopify Inc (SHOP.TO), Bitfarms (BITF.TO), Enghouse Systems (ENGH.TO), Docebo Inc (DCBO.TO), Coveo Solutions (CVO.TO), Descartes Systems Group (DSG.TO) and Kinaxis Inc (KXS.TO) are down 3 to 4.5%.
Keyera Corporation (KEY.TO) is down 1.2% after reporting net earnings of $184.6 million for the quarter ended September 30, 2024, compared with net earnings of $78.1 million in the year-ago quarter.
Canadian Utilities Limited (CU.TO) reported third quarter 2024 adjusted earnings of $102 million ($0.38 per share), which were $15 million ($0.06 per share) higher compared to $87 million ($0.32 per share) in the third quarter of 2023. The stock is up marginally.
ATCO Limited (ACO.X.TO) is gaining 1.5%. The company reported adjusted earnings of $91 million ($0.81 per share) for the third quarter of this year, up $10 million ($0.10 per share) compared to $81 million ( 0.71 per share) in the third quarter of 2023.
Enerflex Limited (EFX.TO) is up 5% after the company announced that it posted net earnings of $30 milion in the quarter ended September 30, 2024, compared with net earnings of $4 million in the corresponding quarter last year.
South Korea Shares May See Renewed Consolidation
(RTTNews) - The South Korea stock market on Thursday snapped the four-day losing streak in which it had plunged almost 250 points or 5.8 percent. The KOSPI now sits just beneath the 2,420-point plateau although it may head south again on Friday.
The global forecast for the Asian markets is soft on concerns over the outlook for interest rates. The European markets were up and the U.S bourses were down and the Asian markets figure to follow the latter lead.
The KOSPI finished barely higher on Thursday following gains from the industrials and mixed performances from the financial shares and technology stocks.
For the day, the index rose 1.78 points or 0.07 percent to finish at 2,418.86 after trading between 2,410.93 and 2,441.43. Volume was 628.4 million shares worth 12.6 trillion won.
Among the actives, Shinhan Financial collected 0.89 percent, while KB Financial declined 1.21 percent, Hana Financial stumbled 1.32 percent, Samsung Electronics retreated 1.38 percent, Samsung SDI rallied 3.52 percent, LG Electronics spiked 2.28 percent, SK Hynix plunged 5.41 percent, Naver accelerated 3.46 percent, LG Chem shed 0.52 percent, Lotte Chemical surged 5.83 percent, SK Innovation slumped 1.44 percent, POSCO skyrocketed 7.27 percent, SK Telecom eased 0.18 percent, KEPCO soared 4.05 percent, Hyundai Mobis advanced 0.99 percent, Hyundai Motor gained 0.80 percent and Kia Motors jumped 1.87 percent.
The lead from Wall Street is weak as the major averages opened flat on Thursday but quickly fell into the red and stayed that way, ending near session lows.
The Dow dropped 207.33 points or 0.47 percent to finish at 43,750.86, while the NASDAQ slumped 123.07 points or 0.64 percent to close at 19,107.65 and the SP 500 sank 36.21 points or 0.60 percent to end at 5,949.17.
The weakness that emerged on Wall Street late in the session came after Federal Reserve Chair Jerome Powell said the central bank does not "need to be in a hurry to lower rates" due to the strength of the economy.
Powell's remarks came as the latest batch of U.S. economy data generated some uncertainty about the outlook for interest rates after the Labor Department said first-time claims for U.S. jobless benefits unexpectedly edged lower last week.
While the Fed is still widely expected to lower interest rates by a quarter point next month, there is some concern that sticky inflation will lead the central bank to slow the pace of its rate cuts in early 2025.
Oil futures settled higher on Thursday, supported by data showing a drop in gasoline stockpiles. West Texas Intermediate Crude oil futures for December closed up $0.27 or about 0.4 percent at $68.70 a barrel.
Indonesia Bourse May Give Up Support At 7,200 Points
(RTTNews) - The Indonesia stock market has finished lower in back-to-back sessions, shedding almost 110 points or 1.3 percent along the way. The Jakarta Composite Index now rests just beneath the 7,215-point plateau and it's expected to extend its slide again on Friday.
The global forecast for the Asian markets is soft on concerns over the outlook for interest rates. The European markets were up and the U.S bourses were down and the Asian markets figure to follow the latter lead.
The JCI finished sharply lower on Thursday following losses from the financial, food and resource companies.
For the day, the index slumped 94.11 points or 1.29 percent to finish at the daily low of 7,214.56 after peaking at 7,318.78.
Among the actives, Bank CIMB Niaga sank 0.84 percent, while Bank Mandiri shed 0.78 percent, Bank Danamon Indonesia collected 0.40 percent, Bank Negara Indonesia dipped 0.20 percent, Bank Central Asia lost 0.49 percent, Bank Rakyat Indonesia tumbled 1.75 percent, Indosat Ooredoo Hutchison jumped 1.82 percent, Indocement rose 0.36 percent, Semen Indonesia retreated 1.63 percent, Indofood Sukses Makmur fell 0.32 percent, United Tractors declined 1.61 percent, Astra International slumped 1.49 percent, Energi Mega Persada plunged 4.23 percent, Astra Agro Lestari skidded 1.14 percent, Aneka Tambang tanked 1.33 percent, Jasa Marga dipped 0.22 percent, Vale Indonesia rallied 1.87 percent, Timah surrendered 2.92 percent, Bumi Resources stumbled 1.83 percent and Bank Maybank Indonesia was unchanged.
The lead from Wall Street is weak as the major averages opened flat on Thursday but quickly fell into the red and stayed that way, ending near session lows.
The Dow dropped 207.33 points or 0.47 percent to finish at 43,750.86, while the NASDAQ slumped 123.07 points or 0.64 percent to close at 19,107.65 and the SP 500 sank 36.21 points or 0.60 percent to end at 5,949.17.
The weakness that emerged on Wall Street late in the session came after Federal Reserve Chair Jerome Powell said the central bank does not "need to be in a hurry to lower rates" due to the strength of the economy.
Powell's remarks came as the latest batch of U.S. economy data generated some uncertainty about the outlook for interest rates after the Labor Department said first-time claims for U.S. jobless benefits unexpectedly edged lower last week.
While the Fed is still widely expected to lower interest rates by a quarter point next month, there is some concern that sticky inflation will lead the central bank to slow the pace of its rate cuts in early 2025.
Oil futures settled higher on Thursday, supported by data showing a drop in gasoline stockpiles. West Texas Intermediate Crude oil futures for December closed up $0.27 or about 0.4 percent at $68.70 a barrel.
Closer to home, Indonesia will provide October trade data later today; in September, imports were up 8.55 percent on year and exports rose an annual 6.44 percent for a trade surplus of IDR3.26 billion.
U.S. Dollar Retreats Against Most Majors
(RTTNews) - The U.S. dollar pulled back against its most major counterparts in the New York session on Thursday.
The greenback retreated to 1.0576 against the euro, 1.2711 against the pound and 0.8869 against the franc, from an early more than 1-year high of 1.0495, more than 4-month high of 1.2629 and near a 4-month high of 0.8910, respectively.
The greenback eased to 0.6483 against the aussie and 0.5883 against the kiwi, from its early more than 3-month highs of 0.6497 and 0.5850, respectively.
The currency is likely to locate support around 1.09 against the euro, 1.30 against the pound, 0.87 against the franc, 0.67 against the aussie and 0.60 against the kiwi.
Dollar Moves Further Up Against Major Counterparts
(RTTNews) - The U.S. dollar climbed to a new 52-week high on Thursday with the latest set of economic data reducing the prospects of aggressive rate cuts by the Federal Reserve. Hawkish comments from Fed Chair Jerome Powell contributed as well to the dollar's rise.
In economic news today, data from the Labor Department said initial jobless claims slipped to 217,000 in the week ended November 9th, a decrease of 4,000 from the previous week's unrevised level of 221,000. Economists had expected jobless claims to inch up to 223,000.
A separate report from the Labor Department showed its producer price index for final demand rose by 0.2% in October following a revised 0.1% uptick in September. Economists had expected producer prices to rise by 0.2% compared to the unchanged reading originally reported for the previous month.
Meanwhile, the report said the annual rate of growth by producer prices accelerated to 2.4% in October from an upwardly revised 1.9% in September. The annual rate of producer price growth was expected to accelerate to 2.3% from the 1.8% originally reported for the previous month.
Fed Chair Jerome Powell said in remarks on Thursday that the central bank does not "need to be in a hurry to lower rates" due to the strength of the economy.
"The economy is not sending any signals that we need to be in a hurry to lower rates," Powell said during an event in Dallas, Texas. "The strength we are currently seeing in the economy gives us the ability to approach our decisions carefully."
Powell's comments on the outlook for rates came as he described the U.S. economy's performance as "remarkably good," noting the labor market remains in solid condition but is no longer a source of significant inflationary pressures.
The dollar index, which surged to 107.06 in the European session, dropped to 106.38 a little before noon, but climbed to 106.95 later on, gaining nearly 0.5%.
Against the Euro, the dollar strengthened to 1.0530 from 1.0565. Against Pound Sterling, the dollar firmed to 1.2664 from 1.2709.
The dollar gained against the Japanese currency, rising to 156.32 yen a unit, up from previous close of 155.49 yen. Against the Aussie, the dollar strengthened to 0.6455.
The Swiss franc weakened to CHF 0.8904 against the dollar, while the Loonie was down at 1.4062 a unit of the U.S. currency.
New Zealand Manufacturing PMI Sinks To 45.8 In October - BusinessNZ
(RTTNews) - The manufacturing sector in New Zealand continued to contract in October, and at a faster pace, the latest survey from BusinessNZ revealed on Friday with a manufacturing PMI score of 45.8.
That's down from the upwardly revised 47/0 in September (originally 46.9) and it moves further beneath the boom-or-bust line of 50 that separates expansion from contraction.
Among the individual components, production (44.5), employment (45.8), new orders (49.0), finished stocks (47.4) and deliveries (44.6) all were in contraction.
"Despite lower interest rates, the manufacturing sector continues to face significant headwinds. Recent business surveys have shown a sharp contrast between improved expectations for activity and weak current conditions," said BNZ Senior Economist Doug Steel.
European Shares Set To Drift Lower After Powell Comments
(RTTNews) - European stocks may open on a sluggish note Friday after Federal Reserve Chair Jerome Powell signaled a cautious approach on rate cuts, given persistent inflationary pressures.
Asian stocks traded mixed, with Japanese markets leading regional gains as weak GDP data dampened expectations for more rate hikes by the Bank of Japan.
Chinese stocks were declining on concerns around slowing economic growth.
The dollar held gains to hover near one-year highs on expectations of a hawkish Trump presidency, with focus on expected changes in trade and tariff policy.
Gold edged up slightly after falling over 1 percent on Thursday to hit a two-month low. Oil prices were down about 1 percent due to concerns over oversupply and a stronger dollar.
In economic releases, trading later in the day may be impacted by reaction to the latest U.S. economic data, including reports on retail sales and industrial production.
Data showed earlier today that China's industrial output expanded at a slower-than-anticipated 5.3 percent in October, while retail sales jumped an annual 4.8 percent to surpass expectations boosted by a week-long holiday and the annual Singles' Day shopping festival.
Property investment fell 10.3 percent year-on-year in January-October and fixed asset investment growth in the first ten months of 2024 came in below expectations, keeping alive calls for Beijing to unveil more stimulus.
U.S. stocks ended lower overnight after data showed producer price inflation rose in October and Fed Chair Jerome Powell said the U.S. central bank does not need to rush to lower interest rates and can approach decisions carefully.
Data showed a higher-than-expected annual wholesale inflation rate of 2.4 percent in October, marking the highest level in three months.
Weekly jobless claims fell last week, suggesting the weak October government payrolls report was an anomaly.
Powell lauded the economy as "remarkably good", the labor market as "solid" and noted that inflation was "running much closer" to the bank's target.
The Dow dipped half a percent while the tech-heavy Nasdaq Composite and the SP 500 both shed around 0.6 percent.
European stocks closed higher on Thursday after the release of Eurozone GDP and employment data.
The pan European STOXX 600 gained 1.1 percent. The German DAX rallied 1.4 percent, France's CAC 40 climbed 1.3 percent and the U.K.'s FTSE 100 added half a percent.
China Industrial Output Rises 5.3% On Year In October
(RTTNews) - Industrial production in China was up 5.3 percent on year in October, the National Bureau of Statistics said on Friday - slowing from 5.4 percent in September and missing expectations for 5.5 percent.
Retail sales jumped an annual 4.8 percent, beating forecasts for 3.8 percent and up sharply from 3.2 percent in the previous month.
Fixed Asset Investment rose 3.4 percent on year, missing expectations for 3.5 percent but unchanged from a month earlier.
The jobless rate came in at 5.0 percent, beneath expectations for 5.1 percent - which would have been unchanged from September.
Japanese Market Significantly Higher
(RTTNews) - Snapping a three-session losing streak, the Japanese stock market is significantly higher on Friday, despite the broadly negative cues from Wall Street overnight. The benchmark Nikkei 225 is moving well above the 38,800 level, with gains across all sectors led by index heavyweights and technology stocks as traders reacted to solid domestic GDP data.
The benchmark Nikkei 225 Index is gaining 319.81 points or 0.83 percent to 38,855.51, after touching a high of 39,101.64 earlier. Japanese stocks closed notably lower on Thursday.
Market heavyweight SoftBank Group is gaining more than 1 percent and Uniqlo operator Fast Retailing is also adding more than 1 percent. Among automakers, Honda is gaining more than 2 percent and Toyota is also adding more than 2 percent.
In the tech space, Advantest is gaining more than 1 percent, Screen Holdings is advancing almost 5 percent and Tokyo Electron is adding more than 2 percent.
In the banking sector, Mitsubishi UFJ Financial and Sumitomo Mitsui Financial are gaining almost 1 percent each, while Mizuho Financial is surging more than 5 percent.
Among major exporters, Mitsubishi Electric and Sony are gaining more than 1 percent each, while Canon is adding almost 1 percent. Panasonic is losing more than 2 percent.
Among other major gainers, Japan Steel Works is soaring more than 8 percent, Nissan Motor is surging more than 6 percent, Disco is advancing almost 5 percent and JGC Holdings is gaining more than 4 percent, while Keyence and Tokyo Electric Power are adding more than 3 percent each. Denka, Lasertec, Chubu Electric Power, Comsys Holdings, Odakyu Electric Railway and Yamaha Motor are rising almost 3 percent each.
Conversely, Dentsu Group is plummeting almost 15 percent, Asahi Group is declining more than 5 percent and NEXON is down more than 4 percent, while Rakuten Group and Ebara are losing almost 2 percent each.
In economic news, Japan's gross domestic product expanded by a seasonally adjusted 0.2 percent on quarter in the third quarter of 2024, the Cabinet Office said in Friday's preliminary report. That was in line with expectations and down from 0.7 percent in the second quarter. On an annualized basis, GDP was up 0.9 percent - down from 2.9 percent in the three months prior.
External demand was down 0.4 percent on quarter, missing forecasts for an increase of 0.1 percent after slipping 0.1 percent in the previous three months.
The GDP price index rose 2.5 percent on year, missing expectations for 2.8 percent and slowing from 3.1 percent in the second quarter. Private consumption was up 0.9 percent on quarter - unchanged from Q2 and beating forecasts for 0.2 percent.
In the currency market, the U.S. dollar is trading in the higher 156 yen-range on Friday.
On Wall Street, stocks came under pressure in the latter part of the trading day on Thursday after showing a lack of direction for much of the session. The major averages slid more firmly into negative territory after spending most of the day bouncing back and forth across the unchanged line.
The major averages ended the day just off their lows of the session. The Dow slid 207.33 points or 0.5 percent to 43,750.86, the Nasdaq fell 123.07 points or 0.6 percent to 19,107.65 and the SP 500 declined 36.21 points or 0.6 percent to 5,949.17.
Meanwhile, the major European markets moved to the upside on the day. While the U.K.'s FTSE 100 Index climbed by 0.5 percent, the French CAC 40 Index and the German DAX Index jumped by 1.3 percent and 1.4 percent, respectively.
Crude oil prices settled higher on Thursday, supported by data showing a drop in gasoline stockpiles. West Texas Intermediate Crude oil futures for December closed up $0.27 or about 0.4 percent at $68.70 a barrel.
FDA Approves PTC's Kebilidi As First Gene Therapy To Treat AADC Deficiency
(RTTNews) - The U.S. Food and Drug Administration approved PTC Therapeutics, Inc.'s Kebilidi (eladocagene exuparvovec-tneq) gene therapy for the treatment of aromatic L-amino acid decarboxylase or AADC deficiency. Kebilidi is the first FDA-approved gene therapy for the deficiency.
PTC shares gained around 8.5 percent in the extended trading on the Nasdaq on Thursday, at $45.97.
AADC deficiency is a rare genetic disorder that affects the production of some neurotransmitters, which are chemical messengers that allow cells in the body's nervous system to communicate with each other. The patients are likely to experience symptoms such as delays in gross motor function (head control, sitting, standing, and walking), hypotonia (weak muscle tone), and developmental and cognitive delays.
Kebilidi is an adeno-associated virus vector-based gene therapy indicated for the treatment of adult and pediatric patients with AADC deficiency. Kebilidi is administered through four infusions in one surgical session into a large structure in the brain involved in motor control.
The health regulator also authorized ClearPoint Neuro, Inc.'s SmartFlow Neuro Cannula, an infusion tube inserted into a target in the brain (parenchymal tissue), to deliver Kebilidi. It is currently the only FDA authorized device indicated for use to administer Kebilidi.
The FDA noted that Kebilidi should be administered in a medical center that specializes in pediatric stereotactic neurosurgery, a technique that uses imaging and special equipment to deliver therapies to specific areas in the brain.
The treatment with Kebilidi results in the expression of AADC and subsequent increase in the production of dopamine, a critical neurotransmitter in the brain associated with movement, attention, learning and memory.
The approval was based on an open-label, single-arm clinical study in 13 pediatric patients with confirmed diagnosis of AADC deficiency, which showed the safety and effectiveness of Kebilidi.
Kebilidi's most common adverse reactions include dyskinesia (involuntary muscle movements), fever, low blood pressure, anemia (low red blood cell count), increased saliva production, and insomnia, among others. It is also contraindicated in patients who have not achieved skull maturity assessed by neuroimaging.
The application earlier was granted FDA's Priority Review and Orphan Drug designation, as well as a rare pediatric disease priority review voucher.
The FDA approved Kebilidi using the Accelerated Approval pathway, which allows the agency to approve certain products for serious or life-threatening conditions based on evidence of a product's effect on a surrogate endpoint or an intermediate clinical endpoint that is reasonably likely to predict clinical benefit.
A confirmatory trial is ongoing to verify Kebilidi's clinical benefit.
Peter Marks, director of the FDA's Center for Biologics Evaluation and Research, said, "Clinical advancements in the field of gene therapy continue to lead to the discovery and availability of innovative treatment options for rare diseases that are otherwise difficult to manage. Today's approval underscores our commitment to help make safe and effective treatments available for patients in need."
Asian Markets Mostly Higher
(RTTNews) - Asian stock markets are trading mostly higher on Friday, despite the broadly negative cues from Wall Street overnight, as traders react to a bunch of upbeat economic data from the region, including upbeat GDP data from Japan. Regional gains remained very modest after the U.S. Fed said it would slash interest rates carefully amid inflation pressures. Asian markets ended mixed on Thursday.
The Australian stock market is notably higher on Friday, adding to the gains in the previous session, despite the broadly negative cues from Wall Street overnight. The benchmark SP/ASX 200 is staying well above the 8,200 level, with gains across most sectors led by gold miners and technology stocks.
The benchmark SP/ASX 200 Index is gaining 38.30 points or 0.47 percent to 8,262.30, after touching a high of 8,273.90 earlier. The broader All Ordinaries Index is up 36.40 points or 0.43 percent to 8,516.30. Australian markets ended modestly higher on Thursday.
Among major miners, BHP Group is edging up 0.3 percent, while Rio Tinto is edging down 0.3 percent and Mineral Resources is losing more than 4 percent. Fortescue Metals is flat.
Oil stocks are mostly higher. Woodside Energy and Santos are gaining almost 1 percent each, while Beach energy is edging up 0.4 percent and Origin Energy is advancing almost 2 percent.
Among tech stocks, Zip is adding more than 2 percent, Appen is surging almost 5 percent, WiseTech Global is gaining almost 2 percent and Xero is up almost 1 percent each, while Afterpay-owner Block is losing more than 2 percent.
Among the big four banks, Commonwealth Bank and Westpac are gaining almost 1 percent each, while ANZ Banking is adding more than 1 percent and National Australia Bank is edging up 0.2 percent.
Gold miners are mostly higher. Evolution Mining is advancing almost 2 percent, Northern Star Resources is adding more than 1 percent, Newmont is up almost 1 percent and Gold Road Resources is rising more than 2 percent. Resolute Mining is flat.
In the currency market, the Aussie dollar is trading at $0.646 on Friday.
Snapping a three-session losing streak, the Japanese stock market is significantly higher on Friday, despite the broadly negative cues from Wall Street overnight. The benchmark Nikkei 225 is moving well above the 38,800 level, with gains across all sectors led by index heavyweights and technology stocks as traders reacted to solid domestic GDP data.
The benchmark Nikkei 225 Index closed the morning session at 38,842.13, up 306.43 points or 0.80 percent, after touching a high of 39,101.64 earlier. Japanese stocks closed notably lower on Thursday.
Market heavyweight SoftBank Group is gaining more than 1 percent and Uniqlo operator Fast Retailing is also adding more than 1 percent. Among automakers, Honda is gaining more than 2 percent and Toyota is also adding more than 2 percent.
In the tech space, Advantest is gaining more than 1 percent, Screen Holdings is advancing almost 5 percent and Tokyo Electron is adding more than 2 percent.
In the banking sector, Mitsubishi UFJ Financial and Sumitomo Mitsui Financial are gaining almost 1 percent each, while Mizuho Financial is surging more than 5 percent.
Among major exporters, Mitsubishi Electric and Sony are gaining more than 1 percent each, while Canon is adding almost 1 percent. Panasonic is losing more than 2 percent.
Among other major gainers, Japan Steel Works is soaring more than 8 percent, Nissan Motor is surging more than 6 percent, Disco is advancing almost 5 percent and JGC Holdings is gaining more than 4 percent, while Keyence and Tokyo Electric Power are adding more than 3 percent each. Denka, Lasertec, Chubu Electric Power, Comsys Holdings, Odakyu Electric Railway and Yamaha Motor are rising almost 3 percent each.
Conversely, Dentsu Group is plummeting almost 15 percent, Asahi Group is declining more than 5 percent and NEXON is down more than 4 percent, while Rakuten Group and Ebara are losing almost 2 percent each.
In economic news, Japan's gross domestic product expanded by a seasonally adjusted 0.2 percent on quarter in the third quarter of 2024, the Cabinet Office said in Friday's preliminary report. That was in line with expectations and down from 0.7 percent in the second quarter. On an annualized basis, GDP was up 0.9 percent - down from 2.9 percent in the three months prior.
External demand was down 0.4 percent on quarter, missing forecasts for an increase of 0.1 percent after slipping 0.1 percent in the previous three months.
The GDP price index rose 2.5 percent on year, missing expectations for 2.8 percent and slowing from 3.1 percent in the second quarter. Private consumption was up 0.9 percent on quarter - unchanged from Q2 and beating forecasts for 0.2 percent.
In the currency market, the U.S. dollar is trading in the loser 156 yen-range on Friday.
Elsewhere in Asia, New Zealand, China, Hong Kong, Indonesia and Taiwan are higher by between 0.1 and 0.6 percent each. Malaysia and South Korea are down 0.2 and 0.6 percent, respectively. Singapore is relatively flat.
On Wall Street, stocks came under pressure in the latter part of the trading day on Thursday after showing a lack of direction for much of the session. The major averages slid more firmly into negative territory after spending most of the day bouncing back and forth across the unchanged line.
The major averages ended the day just off their lows of the session. The Dow slid 207.33 points or 0.5 percent to 43,750.86, the Nasdaq fell 123.07 points or 0.6 percent to 19,107.65 and the SP 500 declined 36.21 points or 0.6 percent to 5,949.17.
Meanwhile, the major European markets moved to the upside on the day. While the U.K.'s FTSE 100 Index climbed by 0.5 percent, the French CAC 40 Index and the German DAX Index jumped by 1.3 percent and 1.4 percent, respectively.
Crude oil prices settled higher on Thursday, supported by data showing a drop in gasoline stockpiles. West Texas Intermediate Crude oil futures for December closed up $0.27 or about 0.4 percent at $68.70 a barrel.
Yen Falls As Japan GDP Growth Slows In Q3
(RTTNews) - The Japanese yen weakened against other major currencies in the Asian session on Friday, as weak GDP data dampened expectations for more rate hikes by the Bank of Japan.
Data from the Cabinet Office showed that the Japan's gross domestic product expanded by a seasonally adjusted 0.2 percent on quarter in the third quarter of 2024. That was in line with expectations and down from 0.7 percent in the second quarter.
On an annualized basis, GDP was up 0.9 percent, down from 2.9 percent in the three months prior.
External demand was down 0.4 percent on quarter, missing forecasts for an increase of 0.1 percent after slipping 0.1 percent in the previous three months.
The GDP price index rose 2.5 percent on year, missing expectations for 2.8 percent and slowing from 3.1 percent in the second quarter. Private consumption was up 0.9 percent on quarter - unchanged from Q2 and beating forecasts for 0.2 percent.
Asian stock markets traded higher, as traders react to a bunch of upbeat economic data from the region, including upbeat GDP data from Japan. Regional gains remained very modest after the U.S. Fed said it would slash interest rates carefully amid inflation pressures.
Federal Reserve Chair Jerome Powell signaled a cautious approach on rate cuts, given persistent inflationary pressures. Powell lauded the economy as "remarkably good", the labor market as "solid" and noted that inflation was "running much closer" to the bank's target.
Markets expect a hawkish Trump presidency, with focus on expected changes in trade and tariff policy.
Trading later in the day may be impacted by reaction to the latest U.S. economic data, including reports on retail sales and industrial production.
In the Asian trading today, the yen fell to nearly a 4-month low of 156.75 against the U.S. dollar and a 4-day low of 198.45 against the pound, from yesterday's closing quotes of 156.25 and 197.89, respectively. If the yen extends its downtrend, it is likely to find support around 158.00 against the greenback and 200.00 against the pound.
Against the euro, the Swiss franc and the NZ dollar, the yen slid to 2-day lows of 165.04, 176.02 and 91.72 from Thursday's closing quotes of 164.53, 175.50 and 91.39, respectively. On the downside, 167.00 against the euro, 178.00 against the franc and 93.00 against the kiwi are seen as the next support levels for the yen.
Against the Australia and the Canadian dollars, the yen edged down to 101.20 and 111.14 from yesterday's closing quotes of 100.81 and 111.12, respectively. The next possible downside targets for the yen are seen around the 103.00 against the aussie and 113.00 against the loonie.
Looking ahead, Canada manufacturing sales, new motor vehicle sales and wholesale sales data, all for September, U.S. retail sales data for October, import and export prices for October, U.S. NY Empire State manufacturing index for November, U.S. industrial and manufacturing production for October, business inventories for September and U.S. Baker Hughes oil rig count data are slated for release.
European Economic News Preview: UK GDP Data Due
(RTTNews) - Quarterly national accounts from the UK and final inflation from France and Italy are due on Friday, headlining a busy day for the European economic news.
At 2.00 am ET, the Office for National Statistics publishes UK GDP data for the third quarter and industrial output and foreign trade figures for September. The economy is forecast to grow 0.2 percent sequentially after rising 0.5 percent in second quarter.
In the meantime, wholesale prices are due from Germany. Economists expect wholesale prices to gain 0.1 percent on month in October, in contrast to the 0.3 percent fall in September.
At 2.45 am ET, France's statistical office INSEE publishes final consumer and harmonized prices for October. Consumer price inflation is seen at 1.2 percent, up from 1.1 percent in September.
At 4.00 am ET, consumer and harmonized prices are due from Italy. Inflation is expected to climb to 0.9 percent in October, in line with flash estimate, from 0.7 percent in September.
At 5.00 am ET, foreign trade figures are due from Italy. The trade surplus is expected to increase to EUR 2.55 billion in September from EUR 1.43 billion in August.
Yen Falls Against Majors
(RTTNews) - The Japanese yen weakened against other major currencies in the Asian session on Friday.
The yen fell to nearly a 4-month low of 156.75 against the U.S. dollar and a 4-day low of 198.45 against the pound, from yesterday's closing quotes of 156.25 and 197.89, respectively.
Against the euro, the Swiss franc and the NZ dollar, the yen slid to 2-day lows of 165.04, 176.02 and 91.72 from Thursday's closing quotes of 164.53, 175.50 and 91.39, respectively.
Against the Australia and the Canadian dollars, the yen edged down to 101.20 and 111.14 from yesterday's closing quotes of 100.81 and 111.12, respectively.
If the yen extends its downtrend, it is likely to find support around 158.00 against the greenback, 200.00 against the pound, 167.00 against the euro, 178.00 against the franc, 93.00 against the kiwi, 103.00 against the aussie and 113.00 against the loonie.
UK Economy Logs Meager Growth In Q3
(RTTNews) - In a blow to Chancellor Rachel Reeves, the UK economy grew only marginally in the third quarter on weak services output, data from the Office for National Statistics revealed Friday.
Gross domestic product grew 0.1 percent sequentially, following growth of 0.5 percent in the second quarter and was also weaker than the forecast of 0.2 percent.
The production-side of GDP showed that the dominant services sector grew marginally by 0.1 percent and industrial production shrank 0.2 percent from a quarter ago. Meanwhile, the construction sector expanded 0.8 percent.
The 0.2 percent fall in production was driven by a 2.7 percent fall in electricity, gas, steam and air conditioning supply and a 0.9 percent drop in water supply; sewerage, waste management and remediation activities. However, manufacturing output was up 0.2 percent.
On a yearly basis, economic growth improved to 1.0 percent in the third quarter from 0.7 percent in the preceding period.
In September, GDP edged down 0.1 percent, in contrast to the 0.2 percent expansion in August, data showed. The economy was expected to grow again by 0.2 percent.
Following the release of GDP data, Chancellor Rachel Reeves said, "Improving economic growth is at the heart of everything I am seeking to achieve, which is why I am not satisfied with these numbers."
Earlier this month, the Bank of England had reduced its benchmark rate by a quarter-point and signaled a gradual easing as the Autumn Budget is forecast to boost inflation.
Month-on-month, industrial production slid unexpectedly by 0.5 percent in September but slower than the 0.7 percent drop in August. Output was expected to rise 0.1 percent. Manufacturing contracted 1.0 percent, partially offsetting the 1.3 percent rise in August. Economists had forecast nil growth.
In a separate communiqué, the ONS today said the deficit on goods trade widened in September due to a sharp 12.6 percent decline in exports. At the same time, imports were down 6.3 percent.
The visible trade deficit rose to GBP 16.3 billion from GBP 15.2 billion in the previous month.
The total trade balance, covering both goods and services, registered a deficit of GBP 3.47 billion compared to a GBP 2.02 billion shortfall a month ago.
