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Sensex, Nifty Likely To Follow Asian Peers Lower
(RTTNews) - Indian shares are likely to open a tad lower on Wednesday amid mixed cues from global markets.
Range-bound trading activity may be witnessed as investors get into festive mood and look forward to next week's U.S. presidential election and Federal Reserve rate decision.
Stock-specific action is likely, with Adani Group stocks in focus after Adani Enterprises posted a nearly eight-fold rise in net profit in the September quarter.
Benchmark indexes Sensex and Nifty recovered from an early slide to end higher by about half a percent on Tuesday, extending gains for a second straight session.
Asian markets were mostly lower this morning after mixed results from U.S. technology companies.
Google parent Alphabet's earnings beat estimates as the company saw strong quarterly revenue growth from its cloud business.
On the other hand, chipmaker AMD's fourth-quarter revenue guidance failed to impress investors.
Meta Platforms and Microsoft are set to report their earnings later today, while Apple and Amazon are due to publish their results on Thursday.
Japan's Nikkei traded up more than 1 percent to extend gains despite political uncertainty.
Treasury yields edged lower while gold climbed to a new record high due to U.S. election jitters and persisting Middle East tensions.
The dollar index was little changed after reaching the highest since July 30. Oil prices steadied after two previous sessions of losses.
U.S. stocks ended mixed overnight ahead of earnings from big technology companies.
Economic reports painted a mixed picture, with job openings dropping to more than a 3-1/2-year low in September, while a measure of consumer confidence rose to a nine-month high.
The SP 500 gained 0.2 percent, and the tech-heavy Nasdaq Composite climbed 0.8 percent to reach a new record closing high, while the Dow dipped 0.4 percent to close lower for the sixth time in the past seven sessions.
European stocks closed lower on Tuesday as earnings from heavyweights BP Plc and Novartis AG disappointed.
The pan European STOXX 600 declined 0.6 percent. The German DAX slid 0.3 percent, France's CAC 40 shed 0.6 percent and the U.K.'s FTSE 100 gave up 0.8 percent.
Asian Markets Trade Mostly Lower
(RTTNews) - Asian stock markets are trading mostly lower on Wednesday, following the mixed cues from Wall Street overnight, as traders are cautious and reluctant to take positions ahead of the next week's U.S. presidential election and the US Fed's monetary policy decision. Concern about the tension in the Middle East is also weighing on the markets. Asian markets closed mostly higher on Tuesday.
Traders also looked ahead to a slew of U.S. economic data as well as tech megacap earnings for directional cues.
Australian shares are trading modestly lower on Wednesday, giving up some of the gains in the previous three sessions, with the benchmark SP/ASX 200 falling below the 8,200 level, following the mixed cues from Wall Street overnight, with weakness in energy and financial stocks partially offset by gains in iron ore miners.
The benchmark SP/ASX 200 Index is losing 64.30 points or 0.78 percent to 8,184.90, after hitting a low of 8,182.20 earlier. The broader All Ordinaries Index is down 61.80 points or 0.73 percent to 8,444.10. Australian stocks ended modestly higher on Tuesday.
Among major miners, Rio Tinto and Mineral Resources are rising almost 1 percent each, while Fortescue Metals is adding more than 1 percent and BHP Group is gaining 1.5 percent.
Oil stocks are mostly lower. Origin Energy and Woodside Energy are edging down 0.2 to 0.3 percent each, while Beach energy is losing more than 1 percent and Santos is down almost 1 percent.
In the tech space, Afterpay owner Block is losing more than 1 percent, Zip is declining almost 1 percent and Xero is edging down 0.1 percent, while Appen is surging almost 6 percent and WiseTech Global is edging up 0.4 percent.
Among the big four banks, Commonwealth Bank, National Australia Bank and ANZ Banking are losing almost 1 percent each, while Westpac is edging down 0.3 percent.
Among gold miners, Evolution Mining and Northern Star Resources are advancing more than 1 percent each, while Gold Road Resources is edging up 0.4 percent. Newmont is losing almost 2 percent and Resolute Mining is down almost 1 percent.
In economic news, consumer prices in Australia were up a seasonally adjusted 0.2 percent on quarter in the third quarter of 2024, the Australian Bureau of Statistics said on Wednesday. That was shy of expectations for an increase of 0.3 percent and down from 1.0 percent in the previous three months.
On an annualized basis, inflation climbed 2.8 percent - exceeding forecasts for 2.3 percent and down from 3.8 percent in the second quarter. The trimmed mean was up 0.8 percent on quarter and 3.5 percent on year, while the weighted mean was up 0.9 percent on quarter and 3.8 percent on year.
In the currency market, the Aussie dollar is trading at $0.656 on Wednesday.
The Japanese stock market is trading significantly higher on Wednesday, extending the gains in the previous two sessions, following the mixed cues from Wall Street overnight. The Nikkei 225 is moving up to be a tad below the 39,300 level, with gains across most sectors led by index heavyweights, financial and technology stocks.
The benchmark Nikkei 225 Index closed the morning session at the day's high of 39,390.49, up 486.81 points or 1.25 percent. Japanese stocks ended notably higher on Tuesday.
Market heavyweight SoftBank Group is gaining more than 2 percent and Uniqlo operator Fast Retailing is flat. Among automakers, Honda is edging down 0.2 percent, while Toyota is gaining almost 1 percent.
In the tech space, Advantest is advancing almost 3 percent, Tokyo Electron is adding almost 1 percent and Screen Holdings are gaining more than 2 percent.
In the banking sector, Sumitomo Mitsui Financial and Mitsubishi UFJ Financial are edging up 0.5 percent each, while Mizuho Financial is flat.
Among the major exporters, Sony is gaining almost 2 percent and Panasonic is edging up 0.2 percent, while Mitsubishi Electric and Canon are adding almost 1 percent each.
Among other major gainers, Disco is skyrocketing almost 11 percent and Fujikura is surging more than 5 percent, while Lasertech, Keyence and Tokyo Electric Power are gaining more than 4 percent each. Furukawa Electric, Kansai Electric Power, Nikon, Renesas Electronics and SMC are adding more than 3 percent each, while Chubu Electric Power, Hoya, Toppan Holdings and Daiichi Sankyo are up almost 3 percent each.
Conversely, Hino Motors is plummeting more than 11 percent.
In the currency market, the U.S. dollar is trading in the lower 153 yen-range on Wednesday.
Elsewhere in Asia, New Zealand, China, Hong Kong, Singapore, South Korea, Malaysia and Indonesia are lower by between 0.1 and 1.0 percent each. Taiwan is bucking the trend and is up 0.3 percent.
On the Wall Street, stocks moved higher during trading on Monday but returned to the mixed performance seen to close out the previous week on Tuesday. While the tech-heavy Nasdaq showed a notable advance to reach a new record closing high, the Dow closed lower for the sixth time in the past seven sessions.
The Nasdaq climbed 145.56 points or 0.8 percent to 18,712.75, extending its winning streak to four days. The SP 500 also rose 9.40 points or 0.2 percent to 5,832.92, but the Dow fell 154.52 points or 0.4 percent to 42,233.05.
Meanwhile, the major European markets all moved to the downside on the day. While the U.K.'s FTSE 100 Index slid 0.8 percent, the French CAC 40 Index fell by 0.6 percent and the German DAX Index dipped by 0.3 percent.
Crude oil prices settled lower again on Tuesday amid concerns crude supplies will far exceed near term demand. West Texas Intermediate Crude oil futures for December ended down $0.17 or about 0.25 percent at $67.21 a barrel.
Steady Start Eyed For Thai Stock Market
(RTTNews) - The Thai stock market has moved lower in back-to-back sessions, slumping more than a dozen points or 0.9 percent along the way. The Stock Exchange of Thailand now sits just above the 1,450-point plateau although it may find traction on Wednesday.
The global forecast for the Asian markets offers little clarity, although technology shares may provide a slight boost. The European markets were down and the U.S. bourses were mixed and the Asian markets figure to split the difference.
The SET finished slightly lower on Tuesday following losses from the industrial, resource and technology sectors.
For the day, the index dipped 1.87 points or 0.13 percent to finish at 1,451.16 after trading between 1,449.24 and 1,461.93. Volume was 9.850 billion shares worth 40.897 billion baht. There were 248 decliners and 226 gainers, with 189 stocks finishing unchanged.
Among the actives, Advanced Info tumbled 1.85 percent, while Thailand Airport advanced 0.81 percent, Asset World climbed 1.10 percent, Banpu retreated 1.60 percent, Bangkok Expressway increased 0.63 percent, CP All Public dropped 0.78 percent, Charoen Pokphand Foods improved 1.21 percent, Energy Absolute surged 3.92 percent, Gulf rose 0.38 percent, Kasikornbank fell 0.34 percent, Krung Thai Card lost 0.52 percent, PTT Oil Retail declined 1.26 percent, PTT sank 0.73 percent, PTT Exploration and Production added 0.40 percent, SCG Packaging plunged 2.86 percent, Siam Commercial Bank shed 0.43 percent, Siam Concrete rallied 1.47 percent, Thai Oil gained 0.60 percent, True Corporation jumped 1.68 percent, TTB Bank collected 0.56 percent and Bangkok Bank, Krung Thai Bank, PTT Global Chemical, B. Grimm, Bangkok Dusit Medical and BTS Group were unchanged.
The lead from Wall Street is murky as the major averages opened lower on Tuesday and largely hugged the line before ending mixed.
The Dow slumped 154.52 points or 0.36 percent to finish at 42,233.05, while the NASDAQ jumped 145.56 points or 0.78 percent to close at a record 18,712.75 and the SP 500 rose 9.40 points or 0.16 percent to end at 5,832.92.
The climb by the NASDAQ came ahead of the release of earnings news from big-name tech companies, including with Google parent Alphabet (GOOGL), Advanced Micro Devices (AMD), Meta Platforms (META), Microsoft (MSFT), Amazon (AMZN) and Apple (AAPL).
Semiconductor stocks showed a particularly strong move to the upside, driving the Philadelphia Semiconductor Index up by 2.3 percent.
In U.S. economic news, the Conference Board noted a substantial improvement by U.S. consumer confidence in October. Also, the Labor Department said job openings in the U.S. fell to 7.44 million in September from a downwardly revised 7.86 million in August.
Oil futures settled lower again on Tuesday amid concerns crude supplies will far exceed near term demand. West Texas Intermediate Crude oil futures for December ended down $0.17 or about 0.25 percent at $67.21 a barrel.
European Economic News Preview: Eurozone GDP Data Due
(RTTNews) - Preliminary GDP estimates from the euro area and other European economies and budget announcement from the UK are due on Wednesday.
At 2.30 am ET, France's statistical office INSEE publishes flash GDP and consumer spending figures. The second largest euro area economy is forecast to grow 0.3 percent in the third quarter after expanding 0.2 percent in the preceding period.
At 4.00 am ET, flash GDP and inflation figures are due from Spain. Gross domestic product is expected to post a slower growth of 0.6 percent following second quarter's 0.8 percent expansion. Economists forecast consumer price inflation to rise to 1.7 percent in October from 1.5 percent in September.
At 4.55 am ET, unemployment data is due from Germany. The jobless rate is expected to rise to 6.1 percent in October from 6.0 percent in September.
At 5.00 am ET, Italy's statistical office ISTAT publishes GDP data for the third quarter. The growth is seen easing to 0.7 percent from 0.9 percent.
At 6.00 am ET, Eurostat publishes euro area flash GDP data. The currency bloc is expected to log a steady growth of 0.2 percent in the third quarter.
Also, Eurozone economic sentiment survey results are due. The economic sentiment indicator is seen at 96.4 in October, up from 96.2 in the previous month.
At 8.30 am ET, UK Chancellor of the Exchequer will present her Autumn Budget 2024 to Parliament.
At 9.00 am ET, Destatis is slated to release Germany's flash consumer and harmonized prices for October. Consumer price inflation is seen rising to 1.8 percent from 1.6 percent in September.
CAC 40 Falls As Earnings Dampen Mood
(RTTNews) - French stocks fell sharply on Wednesday, with mixed earnings from U.S. big technology companies and uncertainty around the upcoming U.S. presidential election weighing on markets.
Meanwhile, France's economic growth doubled in the third quarter as the Paris Olympic and Paralympic Games boosted consumption, official data revealed.
Gross domestic product posted a quarterly growth of 0.4 percent after expanding 0.2 percent in the second quarter, according to the first estimate from the statistical office INSEE. This was also better than economists' forecast of 0.3 percent.
Separate data from INSEE showed that household spending growth weakened in September on lower food and energy consumption.
Household consumption edged up 0.1 percent, slower than the 0.4 percent increase in August.
The benchmark CAC 40 dropped 71 points, or 1 percent, to 7,439 after losing 0.6 percent the previous day.
Luxury stocks fell, with LVMH, Kering and Hermes falling 1-3 percent on concerns about demand growth in China.
Energy-management and automation group Schneider Electric rose about 1 percent after third-quarter revenue rose to record levels.
Capgemini plunged 6 percent as the IT consulting group cut its 2024 revenue target for the second time this year.
Spain GDP Expands More Than Forecast
(RTTNews) - The Spanish economy logged a faster-than-expected growth in the third quarter on domestic demand, advance estimates from the statistical office INE showed on Wednesday.
Gross domestic product grew 0.8 percent on a sequential basis, the same rate of growth as seen in the second quarter. Growth was forecast to ease to 0.6 percent.
The expenditure-side of GDP showed that domestic demand contributed 0.9 points to growth, while external demand contributed negatively by 0.1 points.
Household consumption moved up 1.1 percent and government spending climbed 2.2 percent. Meanwhile, gross capital formation fell 0.7 percent.
Exports of goods and services expanded 0.9 percent and imports grew 1.2 percent.
Further, data showed that all major sectors of the economy logged positive growth, except construction. Industry grew 0.2 percent and services by 1.1 percent. Meanwhile, construction shrank 1.4 percent.
On a yearly basis, economic growth accelerated unexpectedly to 3.4 percent from 3.2 percent in the previous quarter. Economists had forecast the rate to ease to 2.9 percent.
Economists at Capital Economics said Spain's rapid growth over the past couple of years was partly due to the expansion of the tourism sector but also due to rapid immigration which has lifted the labour supply and household consumption. The economists expect this virtuous circle to continue for some time.
Euro Rises As German Economy Expands Unexpectedly
(RTTNews) - The euro strengthened against other major currencies in the European session on Wednesday, after the German economy expanded unexpected in the third quarter, underpinned by household and government consumption.
The preliminary estimate data from Destatis showed that the gross domestic product grew 0.2 percent from a quarter ago, in contrast to the revised 0.3 percent contraction posted in the second quarter. GDP was expected to fall 0.1 percent.
With the latest growth, the largest euro area economy avoided a technical recession.
On a yearly basis, calendar-adjusted GDP logged an expansion of 0.2 percent, reversing the second quarter's 0.3 percent decline.
Meanwhile, the price-adjusted GDP grew 0.2 percent on year, following a 0.1 percent rise in the prior quarter.
The surprising positive Q3 German GDP data dampened expectations of the European Central Bank's (ECB) larger-than-usual interest rate cut of 50 basis points (bps) in December.
In economic news, a preliminary flash estimate published by Eurostat showed that Eurozone economic growth accelerated in the third quarter. Gross domestic product increased 0.4 percent on a quarterly basis. GDP was expected to log 0.2 percent growth, the same rate as seen in the second quarter.
Year-on-year, economic growth improved to 0.9 percent from 0.6 percent in the second quarter. This was also better than economists' forecast of 0.8 percent.
Meanwhile, traders remain caution ahead of next week's U.S. presidential election and Federal Reserve rate decision.
In the European trading now, the euro rose to a 3-month high of 166.21 against the yen and a 2-day high of 0.8343 against the pound, from early lows of 165.59 and 0.8314, respectively. If the euro extends its uptrend, it is likely to find resistance around 167.00 against the yen and 0.84 against the pound.
Against the U.S. dollar and the Swiss franc, the euro advanced to 9-day highs of 1.0859 and 0.9405 from early lows of 1.0813 and 0.9371, respectively. The euro may test resistance around 1.10 against the greenback and 0.95 against the franc.
Looking ahead, U.S. MBA weekly mortgage approvals data, U.S. GDP data for the third quarter, U.S. core price index for the third quarter, pending home sales data for September and U.S. EIA crude oil data are slated for release in the New York session.
U.S. Private Sector Employment Surges Much More Than Expected In October
(RTTNews) - Payroll processor ADP released a report on Wednesday showing private sector employment in the U.S. shot up by much more than anticipated in the month of October.
ADP said private sector employment surged by 233,000 jobs in October after jumping by an upwardly revised 159,000 jobs in September.
Economists had expected private sector employment to climb by 115,000 jobs compared to the addition of 143,000 jobs originally reported for the previous month.
"Even amid hurricane recovery, job growth was strong in October," said ADP chief economist Nela Richardson. "As we round out the year, hiring in the U.S. is proving to be robust and broadly resilient."
Pound Falls Ahead Of U.K. Autumn Budget Statement
(RTTNews) - The British pound weakened against other major currencies in the European session on Wednesday, as traders await the U.K. budget declaration, where the Labour administration is anticipated to increase taxes and expenditure.
The United Kingdom's (U.K.) Autumn Forecast Statement is set to be released at 8.30 am ET. Chancellor of the Exchequer Rachel Reeves is anticipated to announce a tax increase on various income-generating sources and provide increased spending plans to encourage investment in what will be Labour's first budget presentation in more than 15 years.
Investors also expect the Bank of England (BoE) to cut interest rates by 25 basis points (bps) in its upcoming policy meeting on November 7.
European stocks traded lower as investors assessed a batch of mixed earnings and awaited regional growth data as well as the U.K. government's budget for direction.
In the European trading now, the pound fell to nearly a 2-week low of 0.8354 against the euro, from an early high of 0.8314. The pound may test support around the 0.84 area.
Moving away from an early 9-day high of 1.3027 against the U.S. dollar, the pound dropped to 1.2695. The next possible downside target for the pound is seen around the 1.28 region.
Against the Swiss franc and the yen, the pound edged down to 1.1243 and 198.27 from early highs of 1.1291 and 199.58, respectively. If the pound extends its downtrend, it is likely to find support around 1.11 against the franc and 194.00 against the yen.
Looking ahead, U.S. MBA weekly mortgage approvals data, U.S. GDP data for the third quarter, U.S. core price index for the third quarter, pending home sales data for September and U.S. EIA crude oil data are slated for release in the New York session.
FTSE 100 Slides Ahead Of Budget
(RTTNews) - U.K. stocks traded lower on Wednesday ahead of the first Labour party budget in 14 years.
U.K. Chancellor of the Exchequer will present her Autumn Budget 2024 to Parliament at 8.30 am ET.
The benchmark FTSE 100 was down 29 points, or 0.4 percent, at 8,190 after falling 0.8 percent in the previous session.
In corporate news, GSK shares tumbled 3.4 percent. The pharmaceutical company swung into a loss in the third quarter and lowered its 2024 vaccine sales forecast.
Standard Chartered rallied 3 percent. The lender upgraded its 2024 income guidance after profits in the third quarter beat market estimates.
Miner Glencore added 1.7 percent as it maintained production forecast for the current year.
Retail bellwether Next gained 1.6 percent after raising outlook for third time in three months.
Bay Street Likely To Open On Mixed Note
(RTTNews) - Canadian shares are likely to open on a mixed note Wednesday morning, reacting to corporate earnings updates and key economic data from the U.S. Energy stocks may move up on firm crude oil prices.
Ivanhoe Mines Ltd. (IVN.TO) reported a net profit of $108 million for the third-quarter of 2024, compared with $67 million in the second-quarter.
Capital Power Corporation (CPX.TO) reported net income of $178 million for the quarter ended September 30, 2024, compared with $272 million in the year-ago quarter.
Secure Energy Services (SES.TO) reported a net income of $94 million for the third-quarter this year, compared with $47 million in the year-ago quarter.
Methanex Corporation (MX.TO) announced today the successful syndication of acquisition financing to support the earlier announced agreement to acquire OCI Global's international methanol business for $2.05 billion.
After a weak start and a subsequent modest upmove, the Canadian market retreated Tuesday morning and spent the rest of the day's session in negative territory as investors digested quarterly earnings updates from Canadian and U.S. companies and awaited some crucial economic data for directional cues.
The benchmark SP/TSX Composite Index ended down 3.11 points or 0.01% at 24,562.55. The index touched a low of 24,461.86 and a high of 24,591.36 intraday.
Asian stocks ended broadly lower on Wednesday, as earnings from Google parent Alphabet and chipmaker AMD proved to be a mixed bag and the European Union announced the imposition of additional tariffs on electric vehicles imported from China, prompting an angry response from Beijing.
Caution ahead of key U.S. economic data due this week and next week's presidential election also kept investors on the sidelines.
European stocks are notably lower with investors digesting the latest batch of earnings announcements and economic data, and looking ahead to the U.K. government's budget.
In commodities, West Texas Intermediate crude oil futures are up $0.84 or 1.23% at $68.05 a barrel.
Gold futures are up $7.80 or 0.28% at $2,788.90 an ounce, while Silver futures are down $0.296 or 0.86% at $34.145 an ounce.
European Shares Decline Ahead Of Key GDP Data
(RTTNews) - European stocks traded lower on Wednesday as investors assessed a batch of mixed earnings and awaited regional growth data as well as the U.K. government's budget for direction.
U.K. Chancellor of the Exchequer will present her Autumn Budget 2024 to Parliament at 8.30 am ET.
The pan European STOXX 600 dropped 0.7 percent to 514.17 after falling 0.6 percent on Tuesday.
The German DAX dipped half a percent, France's CAC 40 lost 1.1 percent and the U.K.'s FTSE 100 was down 0.4 percent.
UBS gained 1.3 percent. The Swiss banking giant reported a significant uptick in its third-quarter performance, driven by cost-cutting and robust loan income.
Bearings maker SKF surged 5.2 percent after selling its Hanover, Pennsylvania ring and seal operation, via subsidiary PCTI, to Carco PRP for 2.3 billion Swedish crowns ($215.98 million).
GSK shares tumbled 3.4 percent in London. The pharmaceutical company swung into a loss in the third quarter and lowered its 2024 vaccine sales forecast.
Standard Chartered rallied 3 percent. The lender upgraded its 2024 income guidance after profits in the third quarter beat market estimates.
Miner Glencore added 1.7 percent as it maintained production forecast for the current year.
Retail bellwether Next gained 1.6 percent after raising outlook for third time in three months.
Luxury stocks fell, with LVMH, Kering and Hermes falling 1-3 percent in Paris on concerns about demand growth in China.
Energy-management and automation group Schneider Electric rose about 1 percent after third-quarter revenue rose to record levels.
Capgemini plunged 7.6 percent as the IT consulting group cut its 2024 revenue target for the second time this year.
German automaker Volkswagen rallied 2 percent after backing its annual sales guidance.
Daimler Truck Holding fell 1.3 percent after an announcement that it is writing off some of its receivables in China.
Euro Rises Against Majors
(RTTNews) - The euro strengthened against other major currencies in the European session on Wednesday.
The euro rose to a 3-month high of 166.21 against the yen and a 2-day high of 0.8343 against the pound, from early lows of 165.59 and 0.8314, respectively.
Against the U.S. dollar and the Swiss franc, the euro advanced to 9-day highs of 1.0859 and 0.9405 from early lows of 1.0813 and 0.9371, respectively.
If the euro extends its uptrend, it is likely to find resistance around 167.00 against the yen, 0.84 against the pound, 1.10 against the greenback and 0.95 against the franc.
Pound Falls Against Majors
(RTTNews) - The British pound weakened against other major currencies in the European session on Wednesday.
The pound fell to nearly a 2-week low of 0.8354 against the euro, from an early high of 0.8314.
Moving away from an early 9-day high of 1.3027 against the U.S. dollar, the pound dropped to 1.2695.
Against the Swiss franc and the yen, the pound edged down to 1.1243 and 198.27 from early highs of 1.1291 and 199.58, respectively.
If the pound extends its downtrend, it is likely to find support around 0.84 against the euro, 1.28 against the greenback, 1.11 against the franc and 194.00 against the yen.
German Economy Avoids Recession In Q3
(RTTNews) - The German economy avoided a technical recession in the third quarter, thanks to household and government consumption, preliminary estimate from Destatis showed Wednesday.
Gross domestic product grew 0.2 percent from a quarter ago, confounding expectations for a contraction of 0.1 percent. However, the statistical office downwardly revised the fall for the second quarter to 0.3 percent from 0.1 percent.
With the latest growth, the largest euro area economy avoided a technical recession.
On a yearly basis, calendar-adjusted GDP logged an expansion of 0.2 percent, reversing the second quarter's 0.3 percent decline and confounded expectations for a drop of 0.3 percent.
Meanwhile, the price-adjusted GDP grew 0.2 percent on year, following a 0.1 percent rise in the prior quarter. Detailed results will be released on November 22.
Data published by the Federal Employment Agency today showed that the unemployment rate remained unchanged at 6.1 percent in October, in line with expectations.
The number of people out of work increased 27,000 from the previous month after rising 19,000 in September. This was bigger than forecast of 17,000.
Federal Employment Agency chairwoman Andrea Nahles said the autumn recovery in the labor market was absent this year. Although unemployment and underemployoment declined in October, decreases were very small, Nahles noted.
Today's GDP data does not take away the fact that the economy remains stuck in stagnation, ING economist Carsten Brzeski said. "At least it is not falling into a severe recession," he added.
The government forecast the largest euro area economy to contract 0.2 percent this year. Last week, the International Monetary Fund projected the economy to stagnate this year and expand 0.8 percent in 2025.
Elsewhere, France and Spain showed better-than-expected growth, while Italy stagnated in the third quarter.
As the Paris Olympic and Paralympic Games boosted consumption, the French GDP growth doubled to 0.4 percent from 0.2 percent in the second quarter. This was also better than economists' forecast of 0.3 percent.
Underpinned by domestic demand, Spain's GDP grew 0.8 percent on a sequential basis, the same rate as seen in the second quarter. Growth was forecast to ease to 0.6 percent.
Italy's GDP remained flat in the third quarter, following a 0.2 percent rise in the second quarter. Economists had forecast the economy to log another 0.2 percent expansion.
Sensex, Nifty End Lower On Weak Global Cues
(RTTNews) - Indian shares ended Wednesday's session lower, with mixed earnings and caution ahead of next week's U.S. presidential election and Federal Reserve rate decision keeping investors anxious.
The benchmark SP/BSE Sensex dropped 426.85 points, or 0.53 percent, to 79,942.18, snapping a two-day winning streak on the back of weak cues from other Asian and European markets.
The broader NSE Nifty index closed at 24,340.85, down 126 points, or 0.51 percent, from its previous close.
Infosys, Trent, HDFC Life, Shriram Finance and Cipla fell 2-4 percent in the Nifty pack while Adani Enterprises rallied 3.7 percent after the company posted a nearly eight-fold rise in net profit in the September quarter.
Maruti Suzuki India, Britannia Industries, Tata Consumer Products and Hero MotoCorp climbed 2-3 percent.
Global cues were sluggish due to U.S. election jitters and persisting Middle East tensions.
Oil prices traded higher in European trade after two sessions of losses, while gold added to recent gains to reach new record highs.
The dollar rally paused after data showed U.S. job openings dropped to more than a 3-1/2-year low in September, in a possible sign of a slowing labor market that could bolster the case for more rate cuts by the Federal Reserve.
Swiss Market Ends Notably Lower
(RTTNews) - The Switzerland market ended notably lower on Wednesday after languishing in negative territory right through the day's session, as investors reacted to weak economic data, digested a slew of corporate earnings announcements, and looked ahead to some key U.S. economic data due later in the week.
The benchmark SMI ended with a loss of 132.87 points or 1.1% at 11,967.70. The index touched a low of 11,952.43 and a high of 12,093.33.
UBS Group shares dropped 4.53% despite the banking giant reporting a significant uptick in its third-quarter performance, driven by cost-cutting and robust loan income. The bank swung to a net profit of $1.43 billion in the third quarter from a year-ago loss of $711 million.
In the fourth quarter, however, UBS anticipates a mid-single digit decline in net interest income in its global wealth management business and a low single-digit fall in its personal and corporate banking division.
Swatch Group ended down 3.42%. Straumann Holdings, Sika and Schindler Ps lost 2.08%, 1.82% and 1.71%, respectively.
Logitech International, Partners Group, Sonova, Richemont, Alcon, Kuehne + Nagel, Julius Baer, Lonza Group, VAT Group and Roche Holding closed down 1 to 1.6%. Lindt Spruengli ended nearly 1% down.
Sandoz Group climbed 3.7%. SIG Group ended with a modest gain of about 0.3%.
Results of a survey by the KOF Swiss Economic Institute showed that a measure signaling future turning points in the Swiss economy weakened notably in October as the recovery of the economy is very uncertain.
The economic barometer dropped to 99.5 in October from a downwardly revised 104.5 in September. Meanwhile, economists had forecast a score of 105.1.
Although it is still within the medium-term average range, for the first time since January of this year it is no longer above the 100 mark, the KOF said.
China Shares Expected To Open In The Red
(RTTNews) - The China stock market has moved lower in consecutive trading days, slipping more than 55 points or 1.7 percent along the way. The Shanghai Composite now sits just above the 3,265-point plateau and it's looking at another soft start again on Thursday.
The global forecast for the Asian markets is negative on mixed corporate and economic news. The European and U.S. markets finished under water and the Asian bourses are expected to open in similar fashion.
The SCI finished modestly lower on Wednesday as losses from the financials and resource stocks were mitigated by support from the property sector.
For the day, the index shed 20.17 points or 0.61 percent to finish at 3,266.24 after trading between 3,244.81 and 3,291.68. The Shenzhen Composite Index perked 0.69 points or 0.04 percent to end at 1,973.62.
Among the actives, Industrial and Commercial Bank of China dropped 0.83 percent, while Bank of China retreated 1.43 percent, China Construction Bank skidded 1.12 percent, China Merchants Bank tumbled 1.87 percent, Agricultural Bank of China declined 1.67 percent, China Life Insurance tanked 2.31 percent, Jiangxi Copper plunged 3.18 percent, Aluminum Corp of China (Chalco) plummeted 7.90 percent, Yankuang Energy shed 0.58 percent, PetroChina slumped 1.10 percent, China Petroleum and Chemical (Sinopec) lost 0.64 percent, Huaneng Power surrendered 2.20 percent, China Shenhua Energy sank 1.32 percent, Gemdale surged 5.23 percent, Poly Developments added 0.47 percent and China Vanke advanced 0.99 percent.
The lead from Wall Street is soft as the major averages opened lower on Wednesday but then bounced higher for most of the day before a late slump saw them finish in the red.
The Dow dropped 91.51 points or 0.22 percent to finish at 42,141.54, while the NASDAQ tumbled 104.82 points or 0.56 percent to close at 18,607.93 and the SP 500 sank 19.25 points or 0.33 percent to end at 5,813.67.
The choppy trading came as investors reacted to a mixed batch of corporate earnings as Alphabet (GOOGL) and Snap (SNAP) rallied after good results, while Advanced Micro Devices (AMD) and Caterpillar (CAT) stumbled after disappointing.
On the U.S. economic front, payroll processor ADP said private sector employment in the U.S. shot up much more than anticipated in October, although a a separate report released by the Commerce Department showed U.S. economic growth unexpectedly slowed in the third quarter.
Oil prices moved higher on Wednesday after data showed an unexpected drop in U.S. crude inventories last week and on reports that OPEC may delay its planned output increase. West Texas Intermediate Crude oil futures for December closed up $1.40 or 2.1 percent at $68.61 a barrel.
Closer to home, China will see October results later this morning for the manufacturing, non-manufacturing and composite indexes from the National Bureau of Statistics; in September, their scores were 49.8, 50.0 and 50.4, respectively.
Bank Of Japan Interest Rate Decision Due On Thursday
(RTTNews) - The Bank of Japan will wrap up its monetary policy meeting on Thursday and then announce its decision on interest rates, setting the pace for a busy day in Asia-Pacific economic activity. The BoJ is expected to keep its benchmark lending rate unchanged at 0.25 percent.
Japan will also see September data for industrial production, retail sales, construction orders and housing starts. Industrial output is tipped to add 0.9 percent on month after slipping 3.3 percent in August. Sales are seen higher by an annual 2.1 percent, moderating from 2.8 percent in the previous month. In August, construction orders rose 8.7 percent on year and housing starts fell an annual 5.1 percent.
Australia will release September numbers for building approvals, private sector credit and retail sales, as well as Q3 data for import and export prices.
In August, building consents were down 6.1 percent on month and up 7.9 percent on year, while private sector credit rose 0.5 percent on month. Retail sales are tipped to add 0.3 percent on month, slowing from 0.7 percent in August. In Q2, export prices fell 5.9 percent on quarter and import prices rose 1.0 percent.
South Korea will provide September figures for retail sales and industrial production. Sales are expected to rise 0.5 percent on month after gaining 1.7 percent in August. Industrial output is tipped to add 1.2 percent on month and 0.2 percent on year after rising 4.1 percent on month and 3.8 percent on year in the previous month.
China will see October results for the manufacturing, non-manufacturing and composite indexes from the National Bureau of Statistics; in September, their scores were 49.8, 50.0 and 50.4, respectively.
Taiwan will provide preliminary Q3 data for gross domestic product, with forecasts suggesting an increase of 3.4 percent on year following the 5.06 percent gain in the previous three months.
Hong Kong will release preliminary Q3 GDP figures, with forecasts suggesting a flat quarterly reading and am annual increase of 3.1 percent. That follows the 0.4 percent quarterly increase and the 3.3 percent yearly gain in Q2.
Thailand will see September numbers for imports, exports, trade balance and current account. In August, imports were up 8.5 percent on year and exports rose an annual 11.4 percent for a trade surplus of $2.40 billion. The current account showed a surplus of $1.40 billion.
Finally, the markets in Malaysia and Singapore are closed on Thursday got Deepavali and will re-open on Friday.
Dollar Loses Ground Against Major Counterparts After GDP Data
(RTTNews) - The U.S. dollar shed ground on Wednesday after data showed an unexpected slowdown in the nation's GDP growth. Investors also digested strong private sector employment data and looked ahead to the crucial non-farm payroll data due later in the week.
Payroll processor ADP's report showed private sector employment in the U.S. shot up by much more than anticipated in the month of October. ADP said private sector employment surged by 233,000 jobs in October after jumping by an upwardly revised 159,000 jobs in September.
Economists had expected private sector employment to climb by 115,000 jobs compared to the addition of 143,000 jobs originally reported for the previous month.
However, a separate report released by the Commerce Department showed U.S. economic growth unexpectedly slowed in the third quarter.
The Commerce Department said gross domestic product shot up by 2.8% in the third quarter after surging by 3% in the second quarter. Economists had expected another 3% jump.
A report released by the National Association of Realtors (NAR) showed pending home sales in the U.S. spiked by much more than expected in the month of September. NAR said its pending home sales index soared by 7.4% to 75.8 in September after climbing by 0.6% to 70.6 in August. Economists had expected pending home sales to jump by 1.1%.
The dollar index, which dropped to 103.98, losing more than 0.3%, was last seen at 104.02.
Against the Euro, the dollar weakened to 1.0859 from 1.0820. Against Pound Sterling, the dollar firmed to 1.2963, gaining from 1.3015.
The dollar was roughly flat against the Japanese currency, at 153.35 yen a unit. Against the Aussie, the dollar weakened to 0.6575 from 0.6561.
The Swiss franc gained marginally against the dollar at 0.8665, while the Loonie strengthened to 1.3899 a unit of the U.S. currency, firming from 1.3915.
U.S. Dollar Retreats As GDP Growth Slows
(RTTNews) - The U.S. dollar pulled back against its major counterparts in the New York session on Wednesday, as a slowdown in GDP growth outweighed optimism about strong ADP data.
Data from the Commerce Department showed that U.S. economic growth unexpectedly slowed in the third quarter.
The Commerce Department said gross domestic product shot up by 2.8 percent in the third quarter after surging by 3.0 percent in the second quarter. Economists had expected another 3.0 percent jump.
However, a separate report released by payroll processor ADP showed private sector employment in the U.S. shot up much more than anticipated in October.
ADP said private sector employment surged by 233,000 jobs in October after jumping by an upwardly revised 159,000 jobs in September.
Economists had expected private sector employment to climb by 115,000 jobs compared to the addition of 143,000 jobs originally reported for the previous month.
The greenback fell to 9-day lows of 1.0866 against the euro and 1.3042 against the pound, from an early high of 1.0807 and a 6-day high of 1.2936, respectively. The currency is seen finding support around 1.10 against the euro and 1.32 against the pound.
The greenback was trading at 0.8661 against the franc and 153.07 against the yen, down from its early highs of 0.8694 and 153.48, respectively. The next possible support for the greenback is seen around 0.84 against the franc and 144.00 against the yen.
The greenback dropped to a 2-day low of 0.6595 against the aussie, reversing from an early 2-1/2-month high of 0.6536. The currency may challenge support around the 0.68 level.
The greenback eased to 1.3906 against the loonie, from an early 2-1/2-month high of 1.3940. If the currency falls further, it is likely to test support around the 1.36 region.
In contrast, the greenback held steady against the kiwi, after falling to a 5-day low of 0.6001 in the previous session. In the Asian session, the greenback climbed to a 2-1/2-month high of 0.5950 against the kiwi.
Continued Consolidation Called For KOSPI
(RTTNews) - The South Korea stock market on Wednesday ended the three-day winning streak in which it had advanced more than 35 points or 1.4 percent. The KOSPI now sits just above the 2,590-point plateau and it's tipped to open under pressure again on Thursday.
The global forecast for the Asian markets is negative on mixed corporate and economic news. The European and U.S. markets finished under water and the Asian bourses are expected to open in similar fashion.
The KOSPI finished modestly lower on Wednesday following losses from the financial shares and steel companies, while the technology and automobile stocks were mixed.
For the day, the index dropped 24.01 points or 0.92 percent to finish at 2,593.79 after trading between 2,586.88 and 2,613.47. Volume was 476.4 million shares worth 8.76 trillion won. There were 514 decliners and 350 gainers.
Among the actives, Shinhan Financial tanked 3.88 percent, while KB Financial stumbled 1.68 percent, Hana Financial surrendered 3.69 percent, Samsung Electronics sank 0.84 percent, Samsung SDI retreated 1.45 percent, LG Electronics perked 0.11 percent, SK Hynix rallied 2.47 percent, Naver soared 3.07 percent, LG Chem added 0.63 percent, Lotte Chemical rose 0.22 percent, SK Innovation declined 1.33 percent, POSCO tumbled 1.88 percent, SK Telecom shed 0.52 percent, KEPCO lost 0.43 percent, Hyundai Mobis gained 0.40 percent, Hyundai Motor slumped 1.56 percent and Kia Motors improved 0.43 percent.
The lead from Wall Street is soft as the major averages opened lower on Wednesday but then bounced higher for most of the day before a late slump saw them finish in the red.
The Dow dropped 91.51 points or 0.22 percent to finish at 42,141.54, while the NASDAQ tumbled 104.82 points or 0.56 percent to close at 18,607.93 and the SP 500 sank 19.25 points or 0.33 percent to end at 5,813.67.
The choppy trading came as investors reacted to a mixed batch of corporate earnings as Alphabet (GOOGL) and Snap (SNAP) rallied after good results, while Advanced Micro Devices (AMD) and Caterpillar (CAT) stumbled after disappointing.
On the U.S. economic front, payroll processor ADP said private sector employment in the U.S. shot up much more than anticipated in October, although a a separate report released by the Commerce Department showed U.S. economic growth unexpectedly slowed in the third quarter.
Oil prices moved higher on Wednesday after data showed an unexpected drop in U.S. crude inventories last week and on reports that OPEC may delay its planned output increase. West Texas Intermediate Crude oil futures for December closed up $1.40 or 2.1 percent at $68.61 a barrel.
Closer to home, South Korea will provide September figures for retail sales and industrial production later this morning. Sales are expected to rise 0.5 percent on month after gaining 1.7 percent in August. Industrial output is tipped to add 1.2 percent on month and 0.2 percent on year after rising 4.1 percent on month and 3.8 percent on year in the previous month.
Canadian Market Slightly Lower In Cautious Trade
(RTTNews) - Canadian stocks are turning in a mixed performance on Wednesday with investors largely reacting to earnings announcements, and U.S. economic data.
Materials stocks are among the notable losers, while consumer staples and utilities shares are finding good support.
The benchmark SP/TSX Composite Index is down 58.56 points or 0.25% at 24,503.99.
Secure Energy Services (SES.TO) is soaring 11.5% after reporting a net income of $94 million for the third-quarter this year, compared with $47 million in the year-ago quarter.
Capital Power Corporation (CPX.TO) is climbing 8.3% after the company reported net income of $178 million for the quarter ended September 30, 2024, compared with $272 million in the year-ago quarter.
Precision Drilling Corporation (PD.TO) is rising 8.5%. Hut 8 Corp (HUT.TO), Propel Holdings (PRL.TO) and goeasy (GSY.TO) are up 3.5 to 6%.
Metro Inc (MRU.TO), Loblaw Companies (L.TO), TerraVest Industries (TVK.TO), EQB Inc (EQB.TO), Kinaxis Inc (KXS.TO) and George Weston (WN.TO) are gaining 1 to 2%.
Ivanhoe Mines Ltd. (IVN.TO) reported a net profit of $108 million for the third-quarter of 2024, compared with $67 million in the second-quarter. The stock is down by about 3.7%.
Rogers Communications (RCI.A.TO), Toromont Industries (TIH.TO), Cameco Corporation (CCO.TO), Waste Connections (WCN.TO), Bank of Montreal (BMO.TO) and Morguard Corporation (MRC.TO) are down 1 to 2%.
Losing Streak May Continue For Taiwan Shares
(RTTNews) - The Taiwan stock market has moved lower in three straight sessions, stumbling more than 525 points or 2.5 percent along the way. The Taiwan Stock Exchange now rests just above the 22,820-point plateau and it may take further damage again on Thursday.
The global forecast for the Asian markets is negative on mixed corporate and economic news. The European and U.S. markets finished under water and the Asian bourses are expected to open in similar fashion.
The TSE finished modestly lower on Wednesday as losses from the technology stocks and plastics were offset by support from the financial sector.
For the day, the index sank 106.16 points or 0.46 percent to finish at 22,820.43 after trading between 22,801.45 and 23,116.33.
Among the actives, Cathay Financial added 0.58 percent, while Mega Financial collected 0.51 percent, First Financial perked 0.18 percent, E Sun Financial rose 0.37 percent, Taiwan Semiconductor Manufacturing Company dropped 0.96 percent, United Microelectronics Corporation shed 0.52 percent, Hon Hai Precision advanced 0.95 percent, Largan Precision lost 0.65 percent, Catcher Technology dipped 0.21 percent, MediaTek sank 0.77 percent, Delta Electronics fell 0.49 percent, Novatek Microelectronics was down 0.20 percent, Formosa Plastics declined 0.84 percent, Nan Ya Plastics slumped 0.36 percent, Asia Cement was up 0.11 percent and Fubon Financial and CTBC Financial were unchanged.
The lead from Wall Street is soft as the major averages opened lower on Wednesday but then bounced higher for most of the day before a late slump saw them finish in the red.
The Dow dropped 91.51 points or 0.22 percent to finish at 42,141.54, while the NASDAQ tumbled 104.82 points or 0.56 percent to close at 18,607.93 and the SP 500 sank 19.25 points or 0.33 percent to end at 5,813.67.
The choppy trading came as investors reacted to a mixed batch of corporate earnings as Alphabet (GOOGL) and Snap (SNAP) rallied after good results, while Advanced Micro Devices (AMD) and Caterpillar (CAT) stumbled after disappointing.
On the U.S. economic front, payroll processor ADP said private sector employment in the U.S. shot up much more than anticipated in October, although a a separate report released by the Commerce Department showed U.S. economic growth unexpectedly slowed in the third quarter.
Oil prices moved higher on Wednesday after data showed an unexpected drop in U.S. crude inventories last week and on reports that OPEC may delay its planned output increase. West Texas Intermediate Crude oil futures for December closed up $1.40 or 2.1 percent at $68.61 a barrel.
Closer to home, Taiwan will provide preliminary Q3 data for gross domestic product later today, with forecasts suggesting an increase of 3.4 percent on year following the 5.06 percent gain in the previous three months.
German Inflation Climbs More Than Expected Dampening Bigger Rate Cut Hopes
(RTTNews) - Consumer price inflation in Germany increased more than expected to its highest level in three months in October and the core figure moved closer to 3 percent, damping expectations for a bigger size interest rate cut from the European Central Bank.
The consumer price index rose 2.0 percent year-on-year following a 1.6 percent increase in September, preliminary estimates from the statistical office Destatis showed Wednesday. Economists had forecast the inflation rate to climb to 1.8 percent.
Inflation, based on the harmonized index of consumer prices or HICP, accelerated to 2.4 percent from 1.8 percent, which also surpassed the 2.1 percent economists had expected.
Core inflation, which excludes food and energy, increased to 2.9 percent from 2.7 percent.
Services inflation, one of the main concerns for policymakers because of its stubborn stickiness, rose to 4.0 percent from 3.8 percent.
"The decisive factor for the sharp rise in service prices is likely to be the noticeable increase in wage costs," Commerzbank economist Ralph Solveen said. "Since wages have risen significantly until recently, the only factor to slow prices is the weak economy, which will gradually push down the services inflation."
Food inflation shot up to 2.3 percent from 1.6 percent. Energy prices decreased 5.5 percent after a 7.6 percent slump in September. Goods prices edged up 0.4 percent following a 0.3 percent fall in the previous month.
The CPI rose 0.4 percent month-on-month after remaining flat in September. Economists were looking for a 0.2 percent increase.
The EU measure of inflation HICP also rose 0.4 percent from the previous month, when it decreased 0.1 percent in September. Economists had forecast a 0.2 percent gain.
The ECB has already cut interest rates thrice, the latest being the 25-basis points reduction earlier this month which was mainly due to increasing concerns over the sluggish growth in the euro area.
However, Eurostat flash estimates for the third quarter GDP released earlier on Wednesday showed that the single currency economy Eurozone grew a faster than expected 0.4 percent, underpinned by forecast-beating growth in Germany, France and Spain.
Several ECB policymakers have already signaled another reduction in December, when they will be equipped with the latest round of ECB Staff macroeconomic projections.
However, the recent economic indicators and survey data serve to damp hopes for a 50-basis point reduction from the central bank.
Further, economists expect inflationary pressures in Germany to increase further in the coming months as the base effects of energy prices fade.
The better-than-expected growth figures for Eurozone and the acceleration in inflation in Germany are set to make some ECB members start doubting both the October rate cut decision and the opening to even larger rate cuts, ING economist Carsten Brzeski said.
"Today's macro data releases in the eurozone, however, should encourage the ECB hawks to object to a 50bp rate cut in December. At least for now," Brzeski added.
