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European Stocks Close Broadly Lower On Growth Worries, Rate Uncertainty
(RTTNews) - European stocks closed lower on Tuesday with investors largely reacting to quarterly earnings and other corporate news. Uncertainty about the size of future interest rate cuts by the Federal Reserve and upcoming U.S. presidential election, and persisting tensions in the Middle East weighed as well on stocks.
With about two weeks left before the Nov. 5 election, Treasury yields remained elevated on concerns about the path of the U.S. deficit regardless of which candidate wins the race for the White House.
Data showed earlier in the day that the U.K. budget deficit widened more than estimated in September and also hit the highest level for the month since 2021.
Chancellor Rachel Reeves is set to deliver the Autumn Budget 2024 on October 30. The budget is expected to hike taxes and reduce spending worth GBP 40 billion.
Chief Secretary to the Treasury Darren Jones said the budget would require difficult decisions to fix the foundations of the economy and begin delivering on the promise of change.
The pan European Stoxx 600 ended down 0.21%. The U.K.'s FTSE 100 closed down 0.14%, Germany's DAX drifted down by 0.2% and France's CAC 40 edged down 0.01%, while Switzerland's SMI lost 0.8%.
Among other markets in Europe, Austria, Belgium, Denmark, Finland, Greece, Netherlands, Poland, Portugal, Russia, Spain and Sweden closed weak.
Iceland, Ireland, Norway and Turkiye ended higher.
In the UK market, Admiral Group, Persimmon, Taylor Wimpey, British Land, Barratt Redrow, Diploma, Land Securities, Relx, National Grid, Reckitt Benckiser, Next, Halma and Rolls-Royce Holdings lost 1 to 2%.
Mulberry Group shares tumbled more than 8% after the luxury fashion brand rejected a second takeover proposal from Mike Ashley's Frasers Group, saying it was "untenable".
Fresnillo climbed nearly 3%. Melrose Industries gained 2% and IHG closed up 1.73%. British American Tobacco, Entain, Standard Chartered, EasyJet, Smith (DS), Croda International, Spirax Group and Barclays gained 1 to 1.5%.
In the German market, Munich RE ended down by about 2.7%. Vonovia, Brenntag, Allianz, RWE, Hannover Rueck, E.ON, Siemens Healthineers, Henkel, Adidas, Infineon and Deutsche Telekom lost 1 to 2%.
SAP climbed 2.15% after the software giant raised its full-year targets on a strong cloud business in the third quarter.
Deutsche Bank gained about 1.25%, while Rheinmetall, Mercedes-Benz, Sartorius, BMW and Commerzbank posted moderate gains.
In the French market, Eurofins Scientific dropped more than 11%.
Saint-Gobain, Sanofi, Safran, Publicis Groupe, Unibail Rodamco, Engie, Credit Agricole and Legrand closed lower by 0.7 to 1.6%.
Edenred, Essilor, STMicroElectronics, Airbus Group and Accor gained 1.5 to 2.2%. Capgemini, L'Oreal, Dassault Systemes, Kering, LVMH and Stellantis also ended notably higher.
The UK budget deficit widened more than officially estimated in September and also hit the highest level for the month since 2021, the Office for National Statistics reported today. Public sector net borrowing increased to GBP 16.6 billion in September from GBP 14.5 billion in the previous year. This was the third highest September borrowing since monthly records began in January 1993.
Europe's new car registrations declined for the second straight month in September due to the fall in sales across France, Germany and Italy, data published by the European Automobile Manufacturers' Association, or ACEA, showe. New car sales decreased 6.1% in September from a year ago. However, this was much lower than the 18.3% drop seen in August.
CAC 40 Slides As US Deficit Worries Grow
(RTTNews) - French stocks were slightly lower on Tuesday amid rising inflation expectations and concerns over U.S. fiscal deficit.
With about two weeks left before the Nov. 5 election, Treasury yields remained elevated on concerns about the path of the U.S. deficit regardless of which candidate wins the race for the White House.
The benchmark CAC 40 was down 21 points, or 0.3 percent, at 7,515 after falling around 1 percent the previous day.
Banks BNP Paribas, Credit Agricole and Societe Generale were down between half a percent and 0.8 percent.
Automaker Renault was moving higher even as industry data showed Europe's new car registrations declined for the second straight month in September due to the fall in sales across France, Germany and Italy.
New car sales decreased 6.1 percent in September from a year ago, according to data published by the European Automobile Manufacturers' Association.
However, this was much slower than the 18.3 percent fall posted in August.
Asian Shares Mostly Lower As Yields Climb
(RTTNews) - Asian stocks ended broadly lower on Tuesday as Middle East tensions persisted and rising bond yields made investors rethink about rate cut chances.
The dollar index remained elevated and approached the next psychological mark of 104, supported by strong U.S. treasury yields.
Gold held near record levels amid geopolitical uncertainties and ahead of the U.S. election that's less than two weeks away.
Oil prices fell about 1 percent in Asian trade on concerns about slowing demand growth in China.
Chinese and Hong Kong markets ended with modest gains after the People's Bank of China conducted its first operation of the Securities, Funds, and Insurance Companies Swap Facility (SFISF), aiming to leverage the role of financial institutions better in stabilizing China's capital market.
China's Shanghai Composite index rose 0.54 percent to 3,285.87 while Hong Kong's Hang Seng index edged up 0.10 percent to 20,498.95.
Japanese stocks tumbled amid concerns the ruling party may lose its lower house majority in the Oct. 27 election.
The Nikkei average fell 1.39 percent to 38,411.96 while the broader Topix index settled 1.06 percent lower at 2,651.47.
Tech stocks suffered heavy losses, with Advantest and Tokyo Electron falling around 3 percent each. Uniqlo-brand owner Fast Retailing lost 3.2 percent.
Seoul stocks fell sharply on the back of selling by foreign investors. The Kospi average ended 1.31 percent lower at 2,570.70.
Australian markets lost ground, with banks and miners leading losses on higher U.S. Treasury yields.
The benchmark SP/ASX 200 dipped 1.66 percent to 8,205.70 while the broader All Ordinaries index finished down 1.57 percent at 8,469.
Wise Tech Global surged 2.8 percent after settling a lawsuit involving its CEO. Coal miners performed well, with Yancoal Australia climbing 3 percent and Stanmore Resources rallying 3.4 percent on China stimulus optimism.
Across the Tasman, New Zealand's benchmark SP/NZX-50 index dropped 0.85 percent to 12,813.15.
U.S. stocks ended mostly lower overnight as bond yields jumped and investors geared up for key earnings. In economic news, data showed the leading economic index fell more than expected in September.
The 10- and 30-year Treasury yields hit almost three-month closing highs on growing worries about the prospects of a rising U.S. deficit and fears about higher-for-longer interest rates.
The Dow gave up 0.8 percent to log its biggest fall in two weeks and snap a three-session winning streak. The SP 500 slid 0.2 percent while the tech-heavy Nasdaq Composite edged up 0.3 percent.
Dollar Turns In Mixed Performance Against Major Counterparts
(RTTNews) - The U.S. dollar turned in a mixed performance against its major counterparts on Tuesday with investors awaiting some crucial economic data, including reports on U.S. manufacturing and services sector activity.
The greenback found some support on expectations of a victory for former president Donald Trump in the upcoming presidential election on November 5. Trump's tariff and tax policies are seen as inflationary.
Recent polls indicated Trump leading US Vice President and Democratic candidate Kamala Harris in key battleground states.
The dollar index, which was down at 103.82 in the Asian session, recovered slowly and was at 104.08 a little while ago, recording a marginal gain.
Against the Euro, the dollar firmed to 1.0799 from 1.0817. The dollar was little changed against Pound Sterling at 1.2986.
Against the Japanese currency, the dollar climbed to 151.10 yen, gaining from 150.84 yen. The dollar edged down to 0.7784 against the Aussie.
The Swiss franc gained slightly against the greenback at CHF 0.8654. The Loonie edged up against the Loonie to C$ 1.3817, gaining slightly after settling at C$ 1.3831 on Monday.
DAX Rises As SAP Raises Annual Outlook
(RTTNews) - German stocks traded higher on Tuesday after software giant SAP raised its full-year targets on a strong cloud business in the third quarter.
The benchmark DAX was up 86 points, or 0.4 percent, at 19,548 after declining 1 percent in the previous session.
SAP jumped 5.5 percent after raising its full-year outlook.
Automakers BMW, Mercedes Benz and Volkswagen were seeing modest gains even as industry data showed Europe's new car registrations declined for the second straight month in September due to the fall in sales across France, Germany and Italy.
New car sales decreased 6.1 percent in September from a year ago, according to data published by the European Automobile Manufacturers' Association.
However, this was much slower than the 18.3 percent fall posted in August.
Euro Lower Against Most Majors
(RTTNews) - The euro declined against its most major counterparts in the New York session on Tuesday, amid dovish comments from European Central Bank President Lagarde.
Lagarde said at a Bloomberg Newsmaker event that she is absolutely confident that inflation could fall back to 2 percent by 2025.
The ECB will continue lowering its key interest rates, but the pace of cuts will be data-dependent.
A strength in the US dollar on expectations of gradual rate cuts by the Fed also weighed on the currency.
Europe's new car registrations declined for the second straight month in September due to the fall in sales across France, Germany and Italy, data published by the European Automobile Manufacturers' Association, or ACEA, showed.
New car sales decreased 6.1 percent in September from a year ago. However, this was much slower than the 18.3 percent fall posted in August. This was the second consecutive decrease.
The euro fell to a 2-1/2-month low of 1.0800 against the greenback and near a 2-week low of 0.9349 against the franc, off its early highs of 1.0837 and 0.9376, respectively. The currency is seen finding support around 1.06 against the greenback and 0.925 against the franc.
The euro dropped to a 4-day low of 1.6149 against the aussie and a 5-day low of 1.4929 against the loonie, from its early highs of 1.6260 and 1.4985, respectively. The currency may challenge support around 1.59 against the aussie and 1.46 against the loonie.
The euro weakened to a 5-day low of 1.7836 against the kiwi, reversing from an early 6-day high of 1.7962. The currency is likely to locate support around the 1.74 level.
The euro eased to 0.8320 against the pound, from an early 5-day high of 0.8346. This may be compared to an early 4-day low of 0.8319. If the currency falls further, it is likely to test support around the 0.82 region.
In contrast, the euro recovered to 163.45 against the yen. This may be compared to an early more than a 2-month high of 163.66. The currency is poised to challenge resistance around the 167.0 level.
South Korea Bourse May Remain Stuck In Neutral
(RTTNews) - The South Korea stock market headed south again on Tuesday, one day after ending the three-day slide in which it had slumped almost 40 points or 1.6 percent. The KOSPI now sits just above the 2,570-point plateau and it may tick lower again on Wednesday.
The global forecast for the Asian markets is soft thanks to rising treasury yields. The European and U.S. markets were slightly lower and the Asian bourses are expected to follow suit.
The KOSPI finished sharply lower on Tuesday following losses from the technology stocks and industrials, while the financial sector came in mixed.
For the day, the index dropped 34.22 points or 1.31 percent to finish at 2,570.70 after trading between 2,564.46 and 2,604.16. Volume was 337.43 million shares worth 8.75 trillion won. There were 688 decliners and 195 gainers.
Among the actives, Shinhan Financial collected 0.36 percent, while KB Financial added 0.64 percent, Hana Financial fell 0.46 percent, Samsung Electronics tanked 2.20 percent, Samsung SDI plummeted 3.14 percent, LG Electronics sank 0.93 percent, SK Hynix slumped 1.62 percent, Naver tumbled 3.17 percent, LG Chem plunged 3.87 percent, Lotte Chemical lost 0.87 percent, SK Innovation declined 1.75 percent, POSCO stumbled 3.49 percent, SK Telecom rallied 2.13 percent, KEPCO spiked 2.59 percent, Hyundai Mobis jumped 1.43 percent, Hyundai Motor shed 1.05 percent and Kia Motors retreated 2.63 percent.
The lead from Wall Street offers little clarity as the major averages opened slightly lower on Tuesday and hugged the line throughout the day, with the NASDAQ managing to peek above the line by the close.
The Dow shed 6.71 points or 0.02 percent to finish at 42,924.89, while the NASDAQ rose 33.12 points or 0.18 percent to end at 18,573.13 and the SP 500 slipped 2.78 points or 0.05 percent to close at 5,851.20.
The early weakness on Wall Street reflected renewed concerns about the outlook for interest rates after a recent surge by U.S. treasury yields.
After the Fed slashed interest rates by 50 basis points last month, CME Group's FedWatch Tool is currently indicating an 89.6 percent chance of just a 25-basis point rate cut next month.
The subsequent recovery by the markets came even though the yield on the benchmark ten-year note crept up to a nearly three-month closing high, as traders are optimistic about the economic outlook.
Oil prices rose sharply on Tuesday amid hopes that China's latest stimulus move will push up demand, although the upside was limited by a possible a ceasefire deal in the Middle East. West Texas Intermediate Crude futures for November added $1.53 or 2.1 percent at $72.09 a barrel.
Hang Seng Index Likely To Remain Rangebound
(RTTNews) - The Hong Kong stock market has moved higher in two of three days since the end of the four-day losing streak in which it had stumbled almost 1,100 points or 5.2 percent. The Hang Seng Index now sits just beneath the 20,500-point plateau and it's expected to remain in that neighborhood again on Wednesday.
The global forecast for the Asian markets is soft thanks to rising treasury yields. The European and U.S. markets were slightly lower and the Asian bourses are expected to follow suit.
The Hang Seng finished slightly higher on Tuesday following gains from the financial shares and technology companies, while the properties were mixed.
For the day, the index picked up 20.49 points or 0.10 percent to finish at 20,498.95 after trading between 20,380.04 and 20,629.48.
Among the actives, Alibaba Group sank 0.56 percent, while Alibaba Health Info slid 0.25 percent, ANTA Sports jumped 1.75 percent, China Life Insurance slumped 0.61 percent, China Mengniu Dairy soared 2.64 percent, China Resources Land dropped 0.57 percent, CITIC eased 0.11 percent, CSPC Pharmaceutical gained 0.31 percent, Galaxy Entertainment fell 0.29 percent, Haier Smart Home accelerated 1.94 percent, Hang Lung Properties and Henderson Land both tumbled 0.76 percent, Hong Kong China Gas was down 0.16 percent, Industrial and Commercial Bank of China collected 0.21 percent, JD.com lost 0.32 percent, Lenovo plunged 2.77 percent, Li Auto surged 4.99 percent, Li Ning rallied 1.13 percent, Meituan spiked 1.99 percent, New World Development tanked 1.11 percent, Nongfu Spring advanced 0.66 percent, Techtronic Industries shed 0.44 percent, Xiaomi Corporation climbed 0.82 percent, WuXi Biologics added 0.61 percent and CNOOC, CLP Holdings, Hengan International and CK Infrastructure were unchanged.
The lead from Wall Street offers little clarity as the major averages opened slightly lower on Tuesday and hugged the line throughout the day, with the NASDAQ managing to peek above the line by the close.
The Dow shed 6.71 points or 0.02 percent to finish at 42,924.89, while the NASDAQ rose 33.12 points or 0.18 percent to end at 18,573.13 and the SP 500 slipped 2.78 points or 0.05 percent to close at 5,851.20.
The early weakness on Wall Street reflected renewed concerns about the outlook for interest rates after a recent surge by U.S. treasury yields.
After the Fed slashed interest rates by 50 basis points last month, CME Group's FedWatch Tool is currently indicating an 89.6 percent chance of just a 25-basis point rate cut next month.
The subsequent recovery by the markets came even though the yield on the benchmark ten-year note crept up to a nearly three-month closing high, as traders are optimistic about the economic outlook.
Oil prices rose sharply on Tuesday amid hopes that China's latest stimulus move will push up demand, although the upside was limited by a possible a ceasefire deal in the Middle East. West Texas Intermediate Crude futures for November added $1.53 or 2.1 percent at $72.09 a barrel.
Singapore Inflation Data Due On Wednesday
(RTTNews) - Singapore will on Wednesday release consumer price data for September, highlighting a light day for Asia-Pacific economic activity.
Overall inflation is expected to rise 0.5 percent on month and 1.9 percent on year, easing from 0.7 percent on month and 2.2 percent on year in August. Core CPI is called steady at an annual 2.7 percent.
Taiwan will see September figures for industrial production; in August, industrial production was up 13.42 percent on year.
Finally, the markets in Thailand are closed on Wednesday for Chulalongkorn Day and will re-open on Thursday.
European Shares Seen Opening Mixed
(RTTNews) - European stocks are seen opening on a mixed note Wednesday following a quiet day on Wall Street overnight as traders grapple with Middle East tensions, a rising dollar and uncertainties over the upcoming U.S. presidential election.
Asian stocks traded mixed, with Japan's Nikkei falling about 1 percent due to election jitters.
Chinese, Hong Kong and South Korean markets were seeing significant gains as Beijing intensifies efforts to bolster the world's second-largest economy.
A state-backed think tank has reportedly proposed issuing 2 trillion yuan ($281 billion) in special government bonds to help create a market stabilization fund that would promote market stability through the buying and selling of blue-chip stocks and exchange-traded funds.
In a report published Tuesday, the International Monetary Fund trimmed its forecast for growth in China for this year to 4.8 percent from 5 percent previously, citing weakness in the real estate sector and low consumer confidence.
The Japanese yen fell to its lowest level in three months as the dollar and U.S. Treasury yields continued to rise on rising chances of Trump winning the presidency and the higher inflation and fiscal spending it will bring,
The euro hovered near a two-month low amid bets the European Central Bank will keep lowering rates.
Gold held steady near a record high despite Fed officials urging a cautious approach to interest rate cuts.
Oil prices traded lower in Asian trading as industry data signaled a rise in U.S. oil inventories and the Biden administration renewed efforts to secure a cease-fire in the Middle East.
Earnings news is likely to be in the spotlight later today, with ATT, Boeing and Coca-Cola among the companies due to release their quarterly results before the U.S. opening bell.
U.S. stocks ended narrowly mixed overnight as Treasury yields continued to climb on prospects for a slower pace of Federal Reserve rate cuts and amid concerns about the possible fiscal impact of U.S. presidential election results.
The Dow and the SP 500 finished marginally lower while the tech-heavy Nasdaq Composite edged up 0.2 percent.
European stocks closed lower Tuesday on worries about the U.S. fiscal deficit and comments from Federal Reserve officials hinting at gradual rate cuts.
The pan-European STOXX 600 dipped 0.2 percent. The German DAX dipped 0.2 percent, France's CAC 40 ended little changed and the U.K.'s FTSE 100 slid 0.1 percent.
Soft Start Seen For Singapore Stock Market
(RTTNews) - The Singapore stock market has ended lower in consecutive trading days, shedding more than 50 points or 1.4 percent along the way. The Straits Times Index now sits just shy of the 3,590-point plateau and it may extend its losses again on Wednesday.
The global forecast for the Asian markets is soft thanks to rising treasury yields. The European and U.S. markets were slightly lower and the Asian bourses are expected to follow suit.
The STI finished modestly lower on Tuesday following losses from the financial shares, property stocks and industrial issues.
For the day, the index sank 27.17 points or 0.75 percent to finish at the daily low of 3,587.41 after peaking at 3,615.16.
Among the actives, CapitaLand Integrated Commercial Trust tanked 1.43 percent, while CapitaLand Investment skidded 0.67 percent, City Developments stumbled 0.94 percent, Comfort DelGro advanced 0.68 percent, DBS Group lost 0.46 percent, DFI Retail spiked 1.34 percent, Genting Singapore retreated 1.18 percent, Keppel DC REIT rallied 1.32 percent, Keppel Ltd declined 1.09 percent, Mapletree Pan Asia Commercial Trust tumbled 1.39 percent, Mapletree Industrial Trust fell 0.41 percent, Mapletree Logistics Trust slumped 0.70 percent, Oversea-Chinese Banking Corporation dropped 0.65 percent, SATS shed 0.53 percent, SembCorp Industries plummeted 2.00 percent, Singapore Technologies Engineering eased 0.21 percent, SingTel sank 0.62 percent, Wilmar International plunged 1.51 percent, Yangzijiang Shipbuilding slid 0.39 percent and Hongkong Land, Yangzijiang Financial, Thai Beverage, Seatrium Limited and Emperador were unchanged.
The lead from Wall Street offers little clarity as the major averages opened slightly lower on Tuesday and hugged the line throughout the day, with the NASDAQ managing to peek above the line by the close.
The Dow shed 6.71 points or 0.02 percent to finish at 42,924.89, while the NASDAQ rose 33.12 points or 0.18 percent to end at 18,573.13 and the SP 500 slipped 2.78 points or 0.05 percent to close at 5,851.20.
The early weakness on Wall Street reflected renewed concerns about the outlook for interest rates after a recent surge by U.S. treasury yields.
After the Fed slashed interest rates by 50 basis points last month, CME Group's FedWatch Tool is currently indicating an 89.6 percent chance of just a 25-basis point rate cut next month.
The subsequent recovery by the markets came even though the yield on the benchmark ten-year note crept up to a nearly three-month closing high, as traders are optimistic about the economic outlook.
Oil prices rose sharply on Tuesday amid hopes that China's latest stimulus move will push up demand, although the upside was limited by a possible a ceasefire deal in the Middle East. West Texas Intermediate Crude futures for November added $1.53 or 2.1 percent at $72.09 a barrel.
Closer to home, Singapore will release consumer price data for September later today. Overall inflation is expected to rise 0.5 percent on month and 1.9 percent on year, easing from 0.7 percent on month and 2.2 percent on year in August. Core CPI is called steady at an annual 2.7 percent.
China Stock Market May Spin Its Wheels On Wednesday
(RTTNews) - The China stock market has finished higher in three straight sessions, gathering almost 120 points or 3.5 percent along the way. The Shanghai Composite now sits just above the 3,285-point plateau although the rally may stall on Wednesday.
The global forecast for the Asian markets is soft thanks to rising treasury yields. The European and U.S. markets were slightly lower and the Asian bourses are expected to follow suit.
The SCI finished modestly higher again on Tuesday following gains from the energy companies, while the financial shares and property stocks were mixed.
For the day, the index gained 17.76 points or 0.54 percent to finish at 3,285.87 after trading between 3,255.14 and 3,294.96. The Shenzhen Composite Index improved 16.68 points or 0.86 percent to end at 1,953.64.
Among the actives, Industrial and Commercial Bank of China fell 0.32 percent, while Bank of China dipped 0.20 percent, China Construction Bank eased 0.12 percent, China Merchants Bank advanced 0.82 percent, Agricultural Bank of China collected 0.41 percent, China Life Insurance was down 0.14 percent, Jiangxi Copper perked 0.09 percent, Aluminum Corp of China (Chalco) improved 0.91 percent, Yankuang Energy rose 0.31 percent, China Petroleum and Chemical (Sinopec) gained 0.76 percent, Huaneng Power soared 4.42 percent, China Shenhua Energy added 0.29 percent, Gemdale rallied 2.00 percent, Poly Developments jumped 1.86 percent, China Vanke increased 0.54 percent and PetroChina was unchanged.
The lead from Wall Street offers little clarity as the major averages opened slightly lower on Tuesday and hugged the line throughout the day, with the NASDAQ managing to peek above the line by the close.
The Dow shed 6.71 points or 0.02 percent to finish at 42,924.89, while the NASDAQ rose 33.12 points or 0.18 percent to end at 18,573.13 and the SP 500 slipped 2.78 points or 0.05 percent to close at 5,851.20.
The early weakness on Wall Street reflected renewed concerns about the outlook for interest rates after a recent surge by U.S. treasury yields.
After the Fed slashed interest rates by 50 basis points last month, CME Group's FedWatch Tool is currently indicating an 89.6 percent chance of just a 25-basis point rate cut next month.
The subsequent recovery by the markets came even though the yield on the benchmark ten-year note crept up to a nearly three-month closing high, as traders are optimistic about the economic outlook.
Oil prices rose sharply on Tuesday amid hopes that China's latest stimulus move will push up demand, although the upside was limited by a possible a ceasefire deal in the Middle East. West Texas Intermediate Crude futures for November added $1.53 or 2.1 percent at $72.09 a barrel.
Malaysia Bourse May Extend Losing Streak
(RTTNews) - The Malaysia stock market has moved lower in back-to-back sessions, slipping almost 4 points or 0.2 percent along the way. The Kuala Lumpur Composite Index now sits just above the 1,640-point plateau and it may take further damage again on Wednesday.
The global forecast for the Asian markets is soft thanks to rising treasury yields. The European and U.S. markets were slightly lower and the Asian bourses are expected to follow suit.
The KLCI finished slightly lower on Tuesday following losses from the plantations, support from the telecoms and a mixed picture from the financial sector.
For the day, the index slipped 3.14 points or 0.19 percent to finish at 1,642.54 after trading between 1,642.35 and 1,648.31.
Among the actives, Axiata spiked 1.25 percent, while Celcomdigi advanced 0.84 percent, CIMB Group lost 0.49 percent, Genting slumped 0.98 percent, Genting Malaysia dropped 0.86 percent, Hong Leong Bank collected 0.38 percent, Hong Leong Financial climbed 1.06 percent, IHH Healthcare rose 0.42 percent, Kuala Lumpur Kepong shed 0.57 percent, Maxis surged 2.96 percent, Maybank dipped 0.38 percent, MISC eased 0.26 percent, Nestle Malaysia rallied 1.17 percent, Petronas Chemicals sank 0.70 percent, Petronas Dagangan tumbled 1.86 percent, PPB Group slid 0.42 percent, Press Metal perked 0.41 percent, Public Bank fell 0.44 percent, SD Guthrie soared 2.33 percent, Sunway gained 0.45 percent, Telekom Malaysia added 0.61 percent, Tenaga Nasional declined 1.23 percent, YTL Corporation retreated 1.34 percent, YTL Power skidded 0.87 percent and QL Resources, RHB Bank, Sime Darby, IOI Corporation and MRDIY were unchanged.
The lead from Wall Street offers little clarity as the major averages opened slightly lower on Tuesday and hugged the line throughout the day, with the NASDAQ managing to peek above the line by the close.
The Dow shed 6.71 points or 0.02 percent to finish at 42,924.89, while the NASDAQ rose 33.12 points or 0.18 percent to end at 18,573.13 and the SP 500 slipped 2.78 points or 0.05 percent to close at 5,851.20.
The early weakness on Wall Street reflected renewed concerns about the outlook for interest rates after a recent surge by U.S. treasury yields.
After the Fed slashed interest rates by 50 basis points last month, CME Group's FedWatch Tool is currently indicating an 89.6 percent chance of just a 25-basis point rate cut next month.
The subsequent recovery by the markets came even though the yield on the benchmark ten-year note crept up to a nearly three-month closing high, as traders are optimistic about the economic outlook.
Oil prices rose sharply on Tuesday amid hopes that China's latest stimulus move will push up demand, although the upside was limited by a possible a ceasefire deal in the Middle East. West Texas Intermediate Crude futures for November added $1.53 or 2.1 percent at $72.09 a barrel.
McDonald's Stock Hit By E. Coli Outbreak Link To Quarter Pounders
(RTTNews) - McDonald's Corp.'s shares lost around 6 percent in the after-hours trading on Tuesday and are currently trading down around 6 percent in pre-market activity on the NYSE after the U.S. Centers for Disease Control and Prevention or CDC linked severe E. coli outbreak in Mountain West states to the fast food chain's Quarter Pounder hamburgers.
The agency has issued a food safety alert against McDonald's Quarter Pounders after one died and 49 people from 10 states got sick from the same strain of E. coli O157:H7.
CDC, the U.S. Food and Drug Administration, USDA FSIS, and public health officials in multiple states are investigating the outbreak of E. coli O157:H7 infections to identify the ingredient causing illness.
While collaborating with the probe, McDonald's has pulled the suspect ingredients, the slivered onions and beef patties, used for the Quarter Pounder hamburgers temporarily from stores in the affected states. Fresh slivered onions are primarily used on Quarter Pounder hamburgers and not other menu items.
The company added that Quarter Pounder hamburgers won't be available for sale in some states as the investigation is ongoing.
Escherichia coli or E. coli are bacteria found in many places like the intestines of people and animals. Most kinds of E. coli are harmless and are part of a healthy intestinal tract, but certain strains can make people sick.
Most people infected with Shiga toxin-producing E. coli experience severe stomach cramps, diarrhea - often bloody, and vomiting.
Symptoms usually start 3 to 4 days after swallowing the bacteria, and most people recover without treatment after 5 to 7 days.
Meanwhile, some people may develop serious kidney problems, known as hemolytic uremic syndrome or HUS, and would need to be hospitalized.
In the latest E. coli outbreak, most sick people are from Colorado, where 27 got sick, and Nebraska, where 9 got sick. Among them, 10 people have been hospitalized, while one older person in Colorado has died. Additionally, one child is hospitalized with complications of hemolytic uremic syndrome.
All impacted people were reported eating at McDonald's before their illness started, and most specifically mentioned eating a Quarter Pounder hamburger.
Though the specific ingredient linked to illness has not yet been identified, CDC investigators are focused on two ingredients in particular, such as fresh slivered onions, and fresh beef patties.
CDC urged customers, who have severe symptoms of E. coli infection after eating a Quarter Pounder hamburger at McDonald's, to seek health care.
McDonald's stock closed Tuesday's regular trading on the NYSE at $314.69, down 0.06 percent.
Following the news, the shares fell 5.8 percent in the extended trading to $296.44. In pre-market activity, the shares are at $295.99, down 5.94 percent.
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Little Movement Expected For Taiwan Stock Market
(RTTNews) - The Taiwan stock market on Wednesday ended the three-day winning streak in which it had advanced more than 530 points or 2.4 percent. The Taiwan Stock Exchange now rests just above the 23,535-point plateau and it's looking at a fairly flat lead for Wednesday's trade.
The global forecast for the Asian markets is soft thanks to rising treasury yields. The European and U.S. markets were slightly lower and the Asian bourses are expected to follow suit.
The TSE finished barely lower on Tuesday as losses from the plastics and technology stocks were offset by support from the financial sector.
For the day, the index eased 7.10 points or 0.03 percent to finish at the daily high of 23,535.43 after moving as low as 23,269.86.
Among the actives, Cathay Financial rallied 1.46 percent, while Mega Financial perked 0.25 percent, CTBC Financial improved 1.39 percent, First Financial advanced 0.92 percent, Fubon Financial spiked 2.64 percent, E Sun Financial collected 0.18 percent, Taiwan Semiconductor Manufacturing Company dropped 0.92 percent, United Microelectronics Corporation fell 0.39 percent, Hon Hai Precision soared 2.62 percent, Catcher Technology dipped 0.21 percent, MediaTek and Novatek Microelectronics both retreated 1.50 percent, Delta Electronics climbed 1.13 percent, Formosa Plastics slumped 1.27 percent, Nan Ya Plastics declined 1.19 percent and Largan Precision was unchanged.
The lead from Wall Street offers little clarity as the major averages opened slightly lower on Tuesday and hugged the line throughout the day, with the NASDAQ managing to peek above the line by the close.
The Dow shed 6.71 points or 0.02 percent to finish at 42,924.89, while the NASDAQ rose 33.12 points or 0.18 percent to end at 18,573.13 and the SP 500 slipped 2.78 points or 0.05 percent to close at 5,851.20.
The early weakness on Wall Street reflected renewed concerns about the outlook for interest rates after a recent surge by U.S. treasury yields.
After the Fed slashed interest rates by 50 basis points last month, CME Group's FedWatch Tool is currently indicating an 89.6 percent chance of just a 25-basis point rate cut next month.
The subsequent recovery by the markets came even though the yield on the benchmark ten-year note crept up to a nearly three-month closing high, as traders are optimistic about the economic outlook.
Oil prices rose sharply on Tuesday amid hopes that China's latest stimulus move will push up demand, although the upside was limited by a possible a ceasefire deal in the Middle East. West Texas Intermediate Crude futures for November added $1.53 or 2.1 percent at $72.09 a barrel.
Closer to home, Taiwan will see September figures for industrial production later today; in August, industrial production was up 13.42 percent on year.
UK Pay Growth Stalled In September, Likely To Slow Next Year: Survey
(RTTNews) - Growth in the employee earnings in the U.K. stalled in the September quarter and the rate of increase is expected to fall next year as employers weigh the cost, the performance of their companies and possibly lower inflationary pressures.
Median pay award forecast for the next 12 months was 3 percent, nearly two percentage points lower than the median pay award of 4.7 percent for the 12 months ending August 2024, results of a survey by the HR data and insights provider Brightmine, formerly XpertHR, showed Wednesday. The forecast was also 50 percent lower than in the same period in 2023.
"With economic pressures mounting, we're seeing organizations re-evaluate their pay strategies, and many are shifting their focus toward enhancing employee benefits as a way to balance employee expectations with the needs of the business," Sheila Atwood, senior content manager at Brightmine, said.
"While pay awards are expected to decline in 2025, businesses are continuing to find creative ways to support their workforce, particularly by addressing skills shortages and retaining key talent."
Latest official data showed that UK wage growth softened to the lowest in more than two years in the three months to August, adding support to expectations that the Bank of England will cut interest rates further at the November policy session over concerns about a slowing economy and a cooling labor market.
The survey showed that businesses reported affordability, organization performance and inflation/cost of living as the three factors that are most likely to negatively influence pay award decisions in the next 12 months.
Meanwhile, skills shortages and matching pay levels with their industry were the two factors most likely to boost pay awards next year for half of businesses.
The monthly Brightmine Pay Trends report, based on a survey of 64 pay settlements between July 1 and September 30 covering 433,000 employees, showed that September saw pay rises remained flat at 4 percent for the third consecutive rolling quarter. That compared to the 4.8 percent pay award in the June quarter.
Pay settlements in the public sector over the 12 months to the end of September was a median 5.5 percent, unchanged from the previous rolling year to the end of August. This follows a full 12 months when pay awards in the sector were in excess of 6 percent, the report said.
However, employers plan to raise the pay for most employees next year, while about 4 percent of businesses are planning wage freezes.
Deutsche Bank Q3 Profit Climbs, Confirms Outlook; Stock Dips
(RTTNews) - German banking major Deutsche Bank AG reported Wednesday higher profit in its third quarter, driven by partial release of Postbank litigation provisions, lower expenses, as well as improved revenues. The company also said it is on track to achieve its annual revenue target, as well as 2025 goals.
Meanwhile, Deutsche Bank shares were losing around 3 percent in the morning trading in Germany as well as in the pre-market activity on the NYSE.
James von Moltke, CFO, said, "... we will meet our 30 billion euros revenue guidance for the year 2024 and that our continued revenue momentum, cost efficiencies, capital strength and moderating credit provisions all put us on track to deliver on our 2025 goals."
Deutsche Bank further said it recently sought ECB authorization for further share repurchases.
In its third quarter, the company reported net income attributable to shareholders of 1.46 billion euros, 42 percent higher than 1.03 billion euros last year.
The latest earnings were benefited by around 440 million euros partial release of litigation provisions relating to the bank's takeover of Postbank AG, combined with operating momentum.
Excluding Postbank-related litigation release, net profit moved up by 8 percent to 1.3 billion euros from last year's 1.2 billion euros.
Profit before tax rose 31 percent to 2.26 billion euros from prior year's 1.72 billion euros. Adjusted pre-tax income was 1.8 billion euros, up 6 percent from the prior year.
In the quarter, non-interest expenses dropped 8 percent to 4.744 billion euros, while it was flat ex-Postbank litigation release. Provision for credit losses, however, surged to 494 million euros from last year's 245 million euros.
Total net revenues for the quarter were 7.501 billion euros, up 5 percent from previous year's 7.132 billion euros.
The company recorded 5 percent growth in commissions and fee income to 2.5 billion euros, reflecting strong performance of fee and commissions-based businesses.
Net interest income in the key segments of the banking book was broadly stable year on year.
Corporate Bank net revenues were 1.8 billion euros, down 3 percent, and net interest income was 1.2 billion euros, down slightly year on year, reflecting normalizing deposit margins.
Investment Bank net revenues were 2.5 billion euros, up 11 percent over last year, with growth across both Fixed Income and Currencies and Origination Advisory. Emerging Markets revenues were also significantly higher, reflecting growth across regions.
Private Bank net revenues of 2.3 billion euros were essentially flat year on year, while net interest income declined 6 percent in an environment of stabilizing interest rates.
Asset Management net revenues were up 11 percent from last year to 660 million euros.
On XETRA, Deutsche Bank shares were trading at 15.88 euros, down 2.65 percent.
In pre-market activity on the NYSE, the shares are at $17.10, down 2.68 percent.
For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com.
Asian Shares Mixed; Nikkei Underperforms
(RTTNews) - Asian stocks ended mixed on Wednesday and the U.S. dollar index surpassed 104 mark, tracking elevated U.S. treasury yields amid easing expectations of aggressive Federal Reserve rate cuts and fears the U.S. may be heading toward fiscal collapse.
Gold reached a new record high while oil prices fell after industry data showed U.S. crude inventories swelled more than expected.
Chinese shares eked out modest gains after reports emerged that the government may deploy as much as 2 trillion yuan (US$280 billion) to establish a stock market stabilization fund.
The benchmark Shanghai Composite index rose 0.52 percent to 3,302.80 while Hong Kong's Hang Seng index rallied 1.27 percent to 20,760.15.
Japanese markets lost ground as investors were reluctant to place major bets ahead of the country's upcoming lower house election.
Sentiment was also dented by rising Treasury yields due to shifting expectations around how fast and deep the Federal Reserve will cut rates.
The Nikkei average fell 0.80 percent to 38,104.86 after media polls suggested that the ruling Liberal Democratic Party (LDP) and its coalition partner Komeito may lose their majority in the election. The broader Topix index settled 0.55 percent lower at 2,636.96.
Staffing agency Recruit Holdings slumped 4.9 percent and Uniqlo-owner Fast Retailing dropped 1.7 percent while automakers Honda Motor and Toyota surged 2-3 percent on the back of a weaker yen.
Tokyo Metro shares jumped 45 percent on the first day of trading for the company.
Seoul stocks rose sharply, with automakers and technology stocks leading the rally. The Kospi average jumped 1.12 percent to 2,599.62.
Market bellwether Samsung Electronics jumped 2.4 percent while No. 2 chipmaker SK Hynix surged 4.4 percent. Top carmaker Hyundai Motor gained 2.8 percent.
Australian markets finished marginally higher, led by consumer staple stocks. The benchmark SP/ASX 200 edged up 0.13 percent to 8,216 while the broader All Ordinaries index ended marginally up at 8,476.30.
Supermarket operator Woolworths advanced 1.6 percent and Coles Group added 1.4 percent as their lawyers began defending allegations of dodgy discount behaviour in the Federal Court.
Across the Tasman, New Zealand's benchmark SP/NZX-50 index dropped 0.20 percent to 12,787.60.
U.S. stocks ended narrowly mixed overnight as Treasury yields continued to climb on prospects for a slower pace of Federal Reserve rate cuts and amid concerns about the possible fiscal impact of U.S. presidential election results.
The Dow and the SP 500 finished marginally lower while the tech-heavy Nasdaq Composite edged up 0.2 percent.
FTSE 100 Declines As Investors Look Ahead To Budget
(RTTNews) - U.K. stocks drifted lower on Wednesday as investors braced for the upcoming autumn budget and the U.S. Presidential election scheduled for November 5.
The benchmark FTSE 100 was down 17 points, or 0.2 percent, at 8,289 after falling 0.1 percent on Tuesday.
Lender Lloyds rose about 1 percent after Q3 profit beat expectations.
Reckitt Benckiser rallied nearly 3 percent as the consumer goods company reported a smaller than expected fall in third-quarter underlying sales.
Barratt Redrow jumped 3 percent. The homebuilder said it is encouraged by solid trading in recent weeks amid more stable market conditions.
Precious metals miner Fresnillo rose 1.2 percent after a sold third-quarter output performance.
Advertising group WPP gained 3.3 percent as it reported a better-than-expected 0.5 percent rise in like-for-like organic revenue in the third quarter.
U.S. Existing Home Sales Unexpectedly Slump By 1.0% In September
(RTTNews) - A report released by the National Association of Realtors on Wednesday unexpectedly showed a continued decrease by existing home sales in the U.S. in the month of September.
NAR said existing home sales slid by 1.0 percent to an annual rate of 3.84 million in September after tumbling by 2.0 percent to a revised rate of 3.88 million in August.
Economists had expected existing home sales to increase by 1.0 percent to a rate of 3.90 million from the 3.86 million originally reported for the previous month.
"Home sales have been essentially stuck at around a four-million-unit pace for the past 12 months, but factors usually associated with higher home sales are developing," said NAR Chief Economist Lawrence Yun.
"There are more inventory choices for consumers, lower mortgage rates than a year ago and continued job additions to the economy," he added. "Perhaps, some consumers are hesitating about moving forward with a major expenditure like purchasing a home before the upcoming election."
The report also said housing inventory at the end of September totaled 1.39 million units, up 1.5 percent from 1.37 million units in August and up 23.0 percent from 1.13 million units a year ago.
The unsold inventory represents 4.3 months of supply at the current sales pace, up from 4.2 months in August and 3.4 months in September 2023.
"More inventory is certainly good news for home buyers as it gives consumers more properties to view before making a decision," Yun said. "However, the inventory of distressed properties is minimal because the mortgage delinquency rate remains very low."
NAR also said the median existing home price was $404,500 in September, down 2.3 percent from $414,200 in August but up 3.0 percent from $392,700 a year ago.
On Thursday, the Commerce Department is scheduled to release its report on new home sales in the month of September.
Economists currently expect new home sales to rise to an annual rate of 720,000 in September after plunging to a rate of 716,000 in August.
Bank Of Canada Slashes Interest Rates By 50 Basis Points
(RTTNews) - Following three straight quarter point interest rate cuts, the Bank of Canada on Wednesday announced its widely expected decision to slash rates by a half point.
The Bank of Canada said it decided to reduce its target for the overnight rate by 50 basis points to 3.75 percent, with the Bank Rate at 4 percent and the deposit rate at 3.75 percent.
The Canadian central bank's decision to continue lowering rates came as consumer price inflation has declined significantly from 2.7 percent in June to 1.6 percent in September.
"With inflation now back around the 2% target, Governing Council decided to reduce the policy rate by 50 basis points to support economic growth and keep inflation close to the middle of the 1% to 3% range," the bank said its statement.
The Bank of Canada also said it expects to further reduce rates if the economy evolves broadly in line with its forecast but noted the timing and pace of future rate cuts will be guided by incoming information and its implications for the inflation outlook
"We will take decisions one meeting at a time," Bank of Canada said, stressing that it is committed to maintaining price stability for Canadians by keeping inflation close to the 2 percent target.
Bay Street Seen Opening Weak; BoC Rate Decision In Focus
(RTTNews) - Lower stock futures and commodity prices point to a weak start for the Canadian market on Wednesday. The focus will be on the Canadian central bank's interest rate decision due after the opening bell.
The Bank of Canada is scheduled to announce its monetary policy at 9:45 AM ET. The central bank is widely expected to reduce interest rates by 50 basis points.
In earnings news, Whitecap Resources (WCP.TO) reported third-quarter net profit of $274.2 million, or $0.46 per share, compared with $152.7 million, or $0.25 per share in the year-ago quarter.
The Canadian market recovered from an early setback and ended flat on Tuesday. The mood was cautious with investors awaiting the Canadian central bank's interest rate decision on Wednesday.
The benchmark SP/TSX Composite Index ended down 6.63 points or 0.03% at 24,716.70. The index, which dropped to 24,565.21 in early trades, briefly moved into positive territory, rising to 24,724.53 in the closing minutes.
Asian stocks ended mixed on Wednesday and the U.S. dollar index surpassed 104 mark, tracking elevated U.S. treasury yields amid easing expectations of aggressive Federal Reserve rate cuts and fears the U.S. may be heading toward fiscal collapse.
Gold reached a new record high while oil prices fell after industry data showed U.S. crude inventories swelled more than expected.
Chinese shares eked out modest gains after reports emerged that the government may deploy as much as 2 trillion yuan (US$280 billion) to establish a stock market stabilization fund.
European stocks are down in negative territory with investors digesting and awaiting the upcoming U.K. autumn budget. The dollar is on the rise again and U.S. Treasury yields hover near three-month highs as traders ponder the prospect of a Donald Trump presidency.
It is feared that Trump policies including tariffs and restrictions on undocumented immigration could increase inflation and keep interest rates relatively high for a longer-than-anticipated period.
In commodities, West Texas Intermediate Crude oil futures are down $1.19 or 1.66% at $70.55 a barrel.
Gold futures are down $1.90 or 0.07% at $2,757.90 an ounce, while Silver futures are lower by $0.371 or 1.06% at $34.670 an ounce.
Sensex, Nifty Give Up Early Gains
(RTTNews) - Indian shares gave up early gains to end marginally lower on Wednesday.
The benchmark 30-share BSE Sensex ended the session down 138.74 points, or 0.17 percent, at 80,081.98 due to concerns over stretched valuations and continued selling by foreign institutional investors amid rising global uncertainties.
The broader NSE Nifty index dropped 36.60 points, or 0.15 percent, to close at 24,435.50.
Power Grid Corp, Shriram Finance, Eicher Motor, Sun Pharma and Mahindra Mahindra fell 2-3 percent in the Nifty pack, while Bajaj Finance jumped 4.9 percent after Q2 net profit surged 80 percent.
HDFC Bank, Bajaj Auto, Tata Consumer Products and Tech Mahindra rose 1-2 percent.
Global cues were mixed, while the dollar and bonds remained elevated amid easing expectations of aggressive Federal Reserve rate cuts and fears the U.S. may be heading toward fiscal collapse.
U.S. Treasury yields hovered near three-month highs as traders pondered the prospect of a Donald Trump presidency.
It is feared that Trump policies including tariffs and restrictions on undocumented immigration could increase inflation and keep interest rates relatively high for a longer-than-anticipated period.
Gold extended its uptrend to reach new record highs, while oil prices were down around 1 percent in European trade as industry data signaled a rise in U.S. oil inventories and the Biden administration renewed efforts to secure a cease-fire in the Middle East.
CAC 40 Declines On China Concerns
(RTTNews) - French stocks traded lower on Wednesday due to concerns about slowing Chinese growth and the widening U.S. fiscal deficit.
The benchmark CAC 40 dropped 34 points, or half a percent, to 7,501 after ending little changed the previous day.
L'Oreal tumbled 4 percent after the cosmetics giant reported a rise in third quarter sales that missed expectations due to low consumer confidence in China.
Thales gave up 2 percent despite reporting higher sales and orders in the first nine months of the year.
Air Liquide dropped 1 percent. The industrial gases supplier delivered third-quarter revenue in line with market expectations.
Ipsen fell 1.3 percent. The global specialty-care biopharmaceutical company reported strong sales momentum in the first nine months of 2024.
European Shares Subdued On Inflation Woes
(RTTNews) - European stocks were slightly lower on Wednesday as investors digested mixed earnings results and braced for the upcoming U.K. autumn budget.
The dollar was on the rise again and U.S. Treasury yields hovered near three-month highs as traders pondered the prospect of a Donald Trump presidency.
It is feared that Trump policies including tariffs and restrictions on undocumented immigration could increase inflation and keep interest rates relatively high for a longer-than-anticipated period.
The pan-European STOXX 600 was down 0.1 percent at 519.68 after falling 0.2 percent on Tuesday.
The German DAX was marginally lower, France's CAC 40 slipped 0.3 percent and the U.K.'s FTSE 100 was down 0.2 percent.
British lender Lloyds rose about 1 percent after Q3 profit beat expectations.
Reckitt Benckiser rallied nearly 3 percent as the consumer goods company reported a smaller than expected fall in third-quarter underlying sales.
Barratt Redrow jumped 3 percent. The homebuilder said it is encouraged by solid trading in recent weeks amid more stable market conditions.
Precious metals miner Fresnillo rose 1.2 percent after a solid third-quarter output performance.
Advertising group WPP gained 3.3 percent as it reported a better-than-expected 0.5 percent rise in like-for-like organic revenue in the third quarter.
L'Oreal tumbled 3.4 percent after the French cosmetics giant reported a rise in third quarter sales that missed expectations due to low consumer confidence in China.
Thales gave up 1.7 percent despite reporting higher sales and orders in the first nine months of the year.
Air Liquide dropped 1.4 percent. The industrial gases supplier delivered third-quarter revenue in line with market expectations.
Ipsen declined 1 percent. The global specialty-care biopharmaceutical company reported strong sales momentum in the first nine months of 2024.
Deutsche Bank fell 3.2 percent after the German lender returned to profit in the third quarter but flagged credit risks.
Atoss Software rose 1.2 percent after reporting higher Q3 profit and lifting its FY24 margin view.
