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New Zealand Inflation Data Due On Wednesday
(RTTNews) - New Zealand will on Wednesday release Q3 numbers for consumer prices, highlighting a modest day for Asia-Pacific economic activity.
Inflation is expected to rise 0.7 percent on quarter and 2.2 percent on year after rising 0.4 percent on quarter and 3.3 percent on year in the three months prior.
Australia will see September results for the leading economic index from the Melbourne Institute; in August, the index was roughly flat with a slight negative bias.
South Korea will provide September figures for unemployment, imports, exports and trade balance. In August, the jobless rate was 2.4 percent, while imports added 2.2 percent on year and exports rose an annual 7.5 percent for a trade surplus of $6.66 billion.
The central bank in Thailand is scheduled to wrap up its monetary policy meeting and announce its decision on interest rates; the bank is expected to keep its benchmark lending rate unchanged at 2.50 percent.
The central bank in Indonesia is also scheduled to wrap up its monetary policy meeting and announce its decision on interest rates; the bank is expected trim its benchmark lending rate by 25 basis points, to 5.75 percent from 6.00 percent.
China Bourse May Extend Tuesday's Losses
(RTTNews) - The China stock market has alternated between positive and negative finishes through the last five trading days since the end of the 10-day winning streak in which it had skyrocketed more than 780 points or 27.9 percent. The Shanghai Composite now sits just above the 3,200-point plateau and it may take further damage on Wednesday.
The global forecast for the Asian markets is negative thanks to a combination of weak economic and earnings news, while profit taking may also be in order. The European and U.S. markets were down and the Asian bourses are expected to follow that lead.
The SCI finished sharply lower on Tuesday following heavy losses among the financial shares and resource stocks, while the property sector was mixed.
For the day, the index plummeted 83.03 points or 2.53 percent to finish at the daily low of 3,201.29 after trading as high as 3,285.21. The Shenzhen Composite Index slumped 39.73 point or 2.10 percent to end at 1,850.50.
Among the actives, Industrial and Commercial Bank of China surrendered 3.25 percent, while Bank of China dropped 2.33 percent, China Construction Bank stumbled 3.86 percent, China Merchants Bank fell 2.11 percent, Agricultural Bank of China skidded 2.19 percent, China Life Insurance plunged 3.00 percent, Jiangxi Copper plummeted 3.06 percent, Aluminum Corp of China (Chalco) crashed 6.38 percent, Yankuang Energy shed 1.92 percent, PetroChina tumbled 3.66 percent, China Petroleum and Chemical (Sinopec) retreated 2.94 percent, Huaneng Power slumped 2.48 percent, China Shenhua Energy declined 2.02 percent, Gemdale gained 0.75 percent, Poly Developments rallied 1.30 percent and China Vanke sank 1.50 percent.
The lead from Wall Street is soft as the major averages opened mixed on Tuesday but quickly turned lower and saw all of them finish well under water.
The Dow tumbled 324.80 points or 0.75 percent to finish at 42,740..42, while the NASDAQ slumped 187.10 points or 1.01 percent to close at 18,315.59 and the SP 500 sank 44.59 points or 0.76 percent to end at 5,815.26.
The pullback on Wall Street reflected profit taking as traders looked to cash in on recent strength in the markets after the Dow and SP hit record closing highs on Monday.
Corporate earnings also weighed, led lower by the likes of UnitedHealth (UNH) and Citigroup (C), although Walgreens Boots Alliance (WBA) rallied on its results.
On the U.S. economic front, the Federal Reserve Bank of New York reported that regional manufacturing activity has returned to contraction in October.
Oil prices fell sharply on Tuesday as fears about supply disruptions faded on reports that Israel will avoid targeting Iran's oil sites. West Texas Intermediate crude oil futures for November sank $3.25 or 4.4 percent at $70.58 a barrel.
Japan Core Machine Orders Slump 1.9% In August
(RTTNews) - The value of core machine orders in Japan was down a seasonally adjusted 1.9 percent on month in August, the Cabinet Office said on Wednesday - coming in at 858.1 billion yen.
That missed forecasts for a decline of 0.1 percent, which would have been the same as the July reading.
On a yearly basis, core machine orders dropped 3.4 percent - well shy of forecasts for an increase of 3.6 percent and down sharply from 8.7 percent in the previous month.
For the third quarter of 2024, core machine orders are forecast to add 0.2 percent on quarter and 3.9 percent on year to 2,626.7 billion yen.
The total value of machinery orders received by 280 manufacturers operating in Japan decreased by 3.0 percent on month but climbed 15.5 percent on year in August at 2,961.4 billion yen.
Taiwan Stock Market Due For Consolidation On Wednesday
(RTTNews) - The Taiwan stock market has finished higher in four straight sessions, rallying more than 680 points or 3.2 percent in that span. The Taiwan Stock Exchange now rests just shy of the 23,300-point plateau, although it's due for profit taking on Wednesday.
The global forecast for the Asian markets is negative thanks to a combination of weak economic and earnings news, while profit taking may also be in order. The European and U.S. markets were down and the Asian bourses are expected to follow that lead.
The TSE finished sharply higher on Tuesday following gains from the financials, technology stocks and cement companies, although the plastics were soft.
For the day, the index surged 316.75 points or 1.38 percent to finish at 23,292.04 after trading between 23,082.06 and 23,353.91.
Among the actives, Cathay Financial collected 1.62 percent, while Mega Financial climbed 1.03 percent, CTBC Financial accelerated 2.11 percent, First Financial strengthened 1.62 percent, Fubon Financial improved 1.55 percent, E Sun Financial advanced 1.24 percent, Taiwan Semiconductor Manufacturing Company spiked 2.39 percent, United Microelectronics Corporation perked 0.19 percent, Hon Hai Precision soared 4.02 percent, Largan Precision increased 1.41 percent, Catcher Technology gained 1.46 percent, MediaTek added 0.78 percent, Delta Electronics rallied 2.84 percent, Novatek Microelectronics skidded 1.16 percent, Formosa Plastics plunged 3.30 percent, Nan Ya Plastics slumped 1.04 percent and Asia Cement was up 1.20 percent.
The lead from Wall Street is soft as the major averages opened mixed on Tuesday but quickly turned lower and saw all of them finish well under water.
The Dow tumbled 324.80 points or 0.75 percent to finish at 42,740..42, while the NASDAQ slumped 187.10 points or 1.01 percent to close at 18,315.59 and the SP 500 sank 44.59 points or 0.76 percent to end at 5,815.26.
The pullback on Wall Street reflected profit taking as traders looked to cash in on recent strength in the markets after the Dow and SP hit record closing highs on Monday.
Corporate earnings also weighed, led lower by the likes of UnitedHealth (UNH) and Citigroup (C), although Walgreens Boots Alliance (WBA) rallied on its results.
On the U.S. economic front, the Federal Reserve Bank of New York reported that regional manufacturing activity has returned to contraction in October.
Oil prices fell sharply on Tuesday as fears about supply disruptions faded on reports that Israel will avoid targeting Iran's oil sites. West Texas Intermediate crude oil futures for November sank $3.25 or 4.4 percent at $70.58 a barrel.
More Pain Predicted For Hong Kong Stock Market
(RTTNews) - The Hong Kong stock market has moved lower in consecutive trading days, stumbling almost 850 points or 4 percent along the way. The Hang Seng Index now sits just shy of the 20,320-point plateau and it may take further damage again on Wednesday.
The global forecast for the Asian markets is negative thanks to a combination of weak economic and earnings news, while profit taking may also be in order. The European and U.S. markets were down and the Asian bourses are expected to follow that lead.
The Hang Seng finished sharply lower on Tuesday with damage across the board, especially among the technology companies.
For the day, the index plunged 774.08 points or 3.67 percent to finish at 20,318.79 after trading between 20,154.71 and 21,095.01.
Among the actives, Alibaba Group tanked 5.09 percent, while Alibaba Health Info stumbled 4.77 percent, ANTA Sports dropped 2.95 percent, China Life Insurance surrendered 4.88 percent, China Mengniu Dairy plummeted 7.35 percent, China Resources Land declined 4.04 percent, CITIC sank 2.69 percent, CNOOC retreated 4.22 percent, CSPC Pharmaceutical plunged 6.15 percent, Galaxy Entertainment slumped 4.02 percent, Haier Smart Home lost 2.03 percent, Hang Lung Properties skidded 3.88 percent, Henderson Land fell 1.57 percent, Hong Kong China Gas shed 2.25 percent, Industrial and Commercial Bank of China sank 2.28 percent, JD.com tumbled 4.92 percent, Lenovo lost 1.44 percent, Li Auto plunged 6.94 percent, Li Ning stumbled 5.20 percent, Meituan plummeted 6.97 percent, New World Development retreated 4.28 percent, Nongfu Spring surrendered 5.34 percent, Techtronic Industries slid 1.22 percent, Xiaomi Corporation dropped 2.54 percent and WuXi Biologics tanked 6.81 percent.
The lead from Wall Street is soft as the major averages opened mixed on Tuesday but quickly turned lower and saw all of them finish well under water.
The Dow tumbled 324.80 points or 0.75 percent to finish at 42,740..42, while the NASDAQ slumped 187.10 points or 1.01 percent to close at 18,315.59 and the SP 500 sank 44.59 points or 0.76 percent to end at 5,815.26.
The pullback on Wall Street reflected profit taking as traders looked to cash in on recent strength in the markets after the Dow and SP hit record closing highs on Monday.
Corporate earnings also weighed, led lower by the likes of UnitedHealth (UNH) and Citigroup (C), although Walgreens Boots Alliance (WBA) rallied on its results.
On the U.S. economic front, the Federal Reserve Bank of New York reported that regional manufacturing activity has returned to contraction in October.
Oil prices fell sharply on Tuesday as fears about supply disruptions faded on reports that Israel will avoid targeting Iran's oil sites. West Texas Intermediate crude oil futures for November sank $3.25 or 4.4 percent at $70.58 a barrel.
Australian Market Modestly Lower
(RTTNews) - Australian shares are trading modestly lower on Wednesday, giving up some of the gains in the previous two sessions, with the benchmark SP/ASX 200 falling below the 8,300 level, following the broadly negative cues from Wall Street overnight, with weakness in iron ore miners, energy and technology stocks were nearly offset by gains in gold miners and financial stocks.
The benchmark SP/ASX 200 Index is losing 24.30 points or 0.29 percent to 8,294.10, after hitting a low of 8,274.30 and a high of 8,024.50 earlier. The broader All Ordinaries Index is down 28.30 points or 0.33 percent to 8,570.30. Australian stocks ended significantly higher on Tuesday.
Among major miners, BHP Group and Rio Tinto are losing almost 2 percent each, while Mineral Resources is declining more than 3 percent. Fortescue Metals is flat.
Oil stocks are mostly lower. Origin Energy and Beach energy are losing more than 1 percent each, while Santos are declining more than 2 percent. Woodside Energy is gaining almost 1 percent.
In the tech space, WiseTech Global is slipping almost 2 percent and Appen is losing almost 5 percent, while Zip and Xero are declining more than 1 percent each. Afterpay owner Block is edging up 0.1 percent.
Among the big four banks, Commonwealth Bank, National Australia Bank and Westpac are gaining almost 1 percent each, while ANZ Banking is edging up 0.5 percent.
Among gold miners, Northern Star Resources and Gold Road Resources are gaining more than 1 percent each, while Evolution Mining is advancing more than almost 5 percent, Newmont is up more than 3 percent and Resolute Mining are adding 1.5 percent.
In the currency market, the Aussie dollar is trading at $0.668 on Wednesday.
On the Wall Street, stocks came under considerable selling pressure over the course of the trading day on Tuesday after moving to the upside early in the session. The major averages all moved notably lower following the strong gains posted during Monday's session.
The major averages fell to new lows late in the trading day before regaining some ground going into the close. The tech-heavy Nasdaq slumped 187.10 points or 1.0 percent to 18,315.59, the Dow slid 324.80 points or 0.8 percent to 42,740.42 and the SP 500 fell 44.59 points or 0.8 percent to 5,815.26.
The major European markets all also moved to the downside on the day. While the French CAC 40 Index slumped by 1.1 percent, the U.K.'s FTSE 100 Index fell by 0.5 percent and the German DAX Index edged down by 0.1 percent.
Crude oil prices fell sharply on Tuesday as fears about supply disruptions faded on reports that Israel will avoid targeting Iran's oil sites. West Texas Intermediate crude oil futures for November sank $3.25 or 4.4 percent at $70.58 a barrel.
Indonesia Stock Market Due For Profit Taking On Wednesday
(RTTNews) - The Indonesia stock market has tracked higher in three straight sessions, climbing more than 140 points or 1.9 percent along the way. The Jakarta Composite Index now rests just above the 7,625-point plateau although investors may lock in gains on Wednesday.
The global forecast for the Asian markets is negative thanks to a combination of weak economic and earnings news, while profit taking may also be in order. The European and U.S. markets were down and the Asian bourses are expected to follow that lead.
The JCI finished modestly higher on Tuesday following gains from the food and financial shares, while the cement companies were mixed and the resource stocks were down.
For the day, the index advanced 67.30 points or 0.89 percent to finish at 7,626.95 after trading between 7,573.45 and 7,635.04.
Among the actives, Bank CIMB Niaga rallied 1.34 percent, while Bank Mandiri jumped 1.81 percent, Bank Danamon Indonesia collected 0.38 percent, Bank Negara Indonesia improved 1.38 percent, Bank Central Asia climbed 1.19 percent, Bank Rakyat Indonesia rose 0.41 percent, Bank Maybank Indonesia dropped 0.88 percent, Indosat Ooredoo Hutchison tumbled 1.97 percent, Indocement sank 0.68 percent, Semen Indonesia spiked 1.93 percent, Indofood Sukses Makmur accelerated 2.13 percent, United Tractors dropped 0.96 percent, Energi Mega Persada advanced 0.88 percent, Astra Agro Lestari shed 0.73 percent, Aneka Tambang stumbled 1.84 percent, Jasa Marga dipped 0.20 percent, Vale Indonesia slumped 0.95 percent, Timah plunged 3.50 percent and Bumi Resources and Astra International were unchanged.
The lead from Wall Street is soft as the major averages opened mixed on Tuesday but quickly turned lower and saw all of them finish well under water.
The Dow tumbled 324.80 points or 0.75 percent to finish at 42,740..42, while the NASDAQ slumped 187.10 points or 1.01 percent to close at 18,315.59 and the SP 500 sank 44.59 points or 0.76 percent to end at 5,815.26.
The pullback on Wall Street reflected profit taking as traders looked to cash in on recent strength in the markets after the Dow and SP hit record closing highs on Monday.
Corporate earnings also weighed, led lower by the likes of UnitedHealth (UNH) and Citigroup (C), although Walgreens Boots Alliance (WBA) rallied on its results.
On the U.S. economic front, the Federal Reserve Bank of New York reported that regional manufacturing activity has returned to contraction in October.
Oil prices fell sharply on Tuesday as fears about supply disruptions faded on reports that Israel will avoid targeting Iran's oil sites. West Texas Intermediate crude oil futures for November sank $3.25 or 4.4 percent at $70.58 a barrel.
European Economic News Preview: UK Inflation Data Due
(RTTNews) - Consumer and producer prices are due from the UK on Wednesday, headlining a light day for the European economic news.
At 2.00 am ET, the Office for National Statistics releases UK consumer and producer prices for September. Inflation is expected to ease to 1.9 percent from 2.2 percent in August. Economists forecast output prices to fall 0.6 percent annually, in contrast to the 0.2 percent rise a month ago.
At 3.00 am ET, producer price data is due from the Czech Republic.
At 4.00 am ET, Italy's statistical office is scheduled to publish final inflation figures for September. The flash estimate showed that inflation weakened to 0.7 percent from 1.1 percent in August.
At 6.00 am ET, foreign trade data is due from Ireland.
Thai Stock Market May Take Further Damage On Wednesday
(RTTNews) - The Thai stock market on Tuesday ended the four-day winning streak in which it had improved almost 20 points or 1.4 percent. The Stock Exchange of Thailand now rests just above the 1,465-point plateau and the losses may accelerate on Wednesday.
The global forecast for the Asian markets is negative thanks to a combination of weak economic and earnings news, while profit taking may also be in order. The European and U.S. markets were down and the Asian bourses are expected to follow that lead.
The SET finished modestly lower on Tuesday following losses from the food, consumer, industrial, property and service sectors, while the technology stocks offered support.
For the day, the index slipped 5.07 points or 0.34 percent to finish at 1,465.03 after trading between 1,463.32 and 1,478.37. Volume was 14.039 billion shares worth 64.715 billion baht. There were 443 decliners and 109 gainers, with 117 stocks finishing unchanged.
Among the actives, Advanced Info gained 0.72 percent, while Thailand Airport fell 0.39 percent, Asset World shed 0.53 percent, Banpu crashed 5.93 percent, Bangkok Bank collected 0.64 percent, Bangkok Dusit Medical advanced 0.87 percent, Bangkok Expressway slid 0.61 percent, B. Grimm sank 0.85 percent, BTS Group was down 2.18 percent, CP All Public skidded 1.15 percent, Charoen Pokphand Foods climbed 1.00 percent, Energy Absolute tumbled 4.00 percent, Gulf jumped 1.16 percent, Krung Thai Card rallied 2.07 percent, PTT Oil Retail improved 1.20 percent, PTT stumbled 2.19 percent, PTT Exploration and Production declined 2.73 percent, PTT Global Chemical plunged 2.80 percent, SCG Packaging plummeted 3.67 percent, Siam Commercial Bank dropped 0.91 percent, Siam Concrete cratered 4.89 percent, Thai Oil retreated 3.02 percent and True Corporation, TTB Bank, Kasikornbank and Krung Thai Bank were unchanged.
The lead from Wall Street is soft as the major averages opened mixed on Tuesday but quickly turned lower and saw all of them finish well under water.
The Dow tumbled 324.80 points or 0.75 percent to finish at 42,740..42, while the NASDAQ slumped 187.10 points or 1.01 percent to close at 18,315.59 and the SP 500 sank 44.59 points or 0.76 percent to end at 5,815.26.
The pullback on Wall Street reflected profit taking as traders looked to cash in on recent strength in the markets after the Dow and SP hit record closing highs on Monday.
Corporate earnings also weighed, led lower by the likes of UnitedHealth (UNH) and Citigroup (C), although Walgreens Boots Alliance (WBA) rallied on its results.
On the U.S. economic front, the Federal Reserve Bank of New York reported that regional manufacturing activity has returned to contraction in October.
Oil prices fell sharply on Tuesday as fears about supply disruptions faded on reports that Israel will avoid targeting Iran's oil sites. West Texas Intermediate crude oil futures for November sank $3.25 or 4.4 percent at $70.58 a barrel.
Pound Slides Against Majors
(RTTNews) - The British pound weakened against other major currencies in the pre-European session on Wednesday.
The pound fell to nearly a 2-month low of 1.2986 against the U.S. dollar and a 6-day low of 193.78 against the yen, from early highs of 1.3078 and 195.30, respectively.
Against the euro and the Swiss franc, the pound dropped to a 5-day low of 0.8376 and a 2-day low of 1.1204 from early highs of 0.8327 and 1.1280, respectively.
If the pound extends its downtrend, it is likely to find support around 1.28 against the greenback, 191.00 against the yen, 0.84 against the euro and 1.11 against the franc.
Alibaba, Baidu Invest In Intel-Backed Horizon Robotics' IPO
(RTTNews) - Horizon Robotics, a Chinese developer of artificial intelligence chips used in autonomous driving systems, is seeking to raise as much as HK$5.4 billion or around $696 million in its Hong Kong initial public offering. According to its listing document, Chinese majors Alibaba Group Holding Ltd. and Baidu Inc. are investing in the IPO of the firm, which is backed by tech major Intel Corp.
If successful, Horizon Robotics' IPO would be the largest in Hong Kong in 2024.
In the offering, Horizon Robotics plans to sell 1.36 billion shares in a price range of HK$3.73 to HK$3.99 each. Hong Kong offer shares include 135.51 million shares, while number of International offer shares would be 1.22 billion shares. Shares are due to start trading on October 24.
The cornerstone investors in the offering include units of Alibaba and Baidu, as well as a fund tied to the government of a Chinese city, Ningbo.
As per the filing, cornerstone investors, led by Alibaba's Alisoft China Holding Limited and Baidu, have subscribed for $219.8 million worth of Horizon Robotics stock in the offering, bidding for $50 million each.
Bloomberg reported, citing people familiar with the matter, that order books were covered shortly after the company started taking investor orders Wednesday.
Horizon Robotics was founded in 2015 by Kai Yu, an AI scientist who previously worked with Baidu, along with several former Baidu employees.
Along with Intel, the company reportedly was funded by investors Hillhouse Investment, HongShan, Yuri Milner, Sinovation Ventures and Yunfeng Capital, among others.
As per reports, Horizon Robotics' initial plan was for an IPO in the United States to raise as much as $1 billion. However, the plan was changed in October 2021 for a Hong Kong IPO.
In 2022, German auto major Volkswagen Group invested $2.3 billion to establish a joint venture with Horizon Robotics, aiming to develop in-house vehicle software for Volkswagen.
CAC 40 Slides On Earnings
(RTTNews) - French stocks traded lower on Wednesday, with weak earnings and caution ahead of a European Central Bank (ECB) policy meeting on Thursday denting investor sentiment.
The ECB is likely to deliver another interest rate cut after recent data signaled continued weakness in the euro zone economy.
The benchmark CAC 40 was down 46 points, or 0.6 percent, at 7,476 after declining 1.1 percent in the previous session.
LVMH slumped 4 percent after sales of fashion and leather goods unexpectedly fell at its biggest unit for the first time since 2020.
Peer Kering dropped 2.3 percent and Hermes International gave up 1.7 percent.
Rexel SA plunged 4.6 percent. The distributor of electrical supplies cut its 2024 outlook due to negative trading environment in Europe.
Asian Shares Decline Amid Tech Selloff
(RTTNews) - Asian stocks fell broadly on Wednesday due to lingering Middle East tensions, shifting U.S. rate cut expectations and reports suggesting that the U.S. is mulling a cap on export licenses for AI chips to specific countries.
French luxury giant LVMH suffered its first quarterly sales drop since pandemic, fueling concerns about slowing demand in China and elsewhere.
Chipmaker shares led regional losses after Europe's biggest tech firm ASML, whose customers include TSMC, Samsung and SK Hynix, warned of weak semiconductor demand.
The dollar hovered near two-month peaks versus major peers, driven by rising bets for a second Donald Trump presidency and expectations the Federal Reserve will proceed with modest interest rate cuts.
Markets currently see a 95 percent chance of a 25-bps rate cut from the Fed next month, after an aggressive 50-bps cut in September.
Atlanta Fed's Raphael Bostic on Tuesday said he penciled in just one more interest-rate reduction of 25 basis points this year, while San Francisco Fed's Mary Daly said "one or two" cuts in 2024 would be "reasonable".
Gold edged higher for a second straight session to hover near a three-week high while oil recovered some ground after falling more than 4 percent on Tuesday.
China's Shanghai Composite index finished marginally higher after a choppy session as investors awaited concrete details on stimulus plans.
It is believed a press briefing by China's housing minister on Thursday will likely provide more details of measures to promote the "steady and healthy" development of the property sector.
Hong Kong's Hang Seng index edged down 0.16 percent to 20,286.85 after a volatile session.
Japanese markets tumbled after Bank of Japan (BoJ) board member Seiji Adachi stated that monetary policy normalization is underway, but premature hikes should be avoided due to uncertainties in global economic outlook and domestic wage growth.
Investors also reacted to data showing machinery orders in Japan fell more than expected in August.
The Nikkei average slumped 1.83 percent to 39,180.30 while the broader Topix index settled 1.21 percent lower at 2,690.66. Chip-related stocks such as Tokyo Electron, Screen Holdings and Lasertec Corp fell 9-13 percent.
Seoul stocks fell notably, with the Kospi average falling 0.88 percent to 2,610.36. Samsung Electronics fell 2.5 percent and SK Hynix dropped 2.2 percent.
Australian markets closed lower as mining stocks took a hit due to prevailing growth concerns. Gold stocks surged, with Evolution Mining rallying 6.8 percent after releasing its production figures.
The benchmark SP/ASX 200 slipped 0.41 percent to 8,284.70 while the broader All Ordinaries index ended down 0.49 percent at 8,556.60.
Across the Tasman, New Zealand's benchmark SP/NZX-50 index dipped 1.55 percent to 12,641.32 despite data showing inflation in the country declined sharply in the third quarter - opening a path to more supersized interest-rate cuts in coming months.
U.S. stocks closed lower overnight as United Health lowered its full-year earnings outlook and data showed business activity at manufacturing firms in New York State contracted unexpectedly in October.
A disappointing outlook from ASML Holding and concerns about tighter U.S. restrictions on chip sales spurred a selloff in the tech sector while energy stocks tracked oil prices lower.
The tech-heavy Nasdaq Composite lost 1 percent, while the Dow and the SP 500 both shed around 0.8 percent.
FTSE 100 Gains As Inflation Hits Three-year Low
(RTTNews) - U.K. stocks advanced on Wednesday after official data showed U.K. inflation fell below the 2 percent target and also hit the lowest in more than three years in September, piling pressure on the Bank of England to ease policy at the November meeting.
Consumer price inflation weakened more-than-expected to 1.7 percent in September from 2.2 percent in August, the Office for National Statistics reported.
This was the lowest since April 2021. Prices were forecast to climb 1.9 percent.
The benchmark FTSE 100 was up 48 points, or 0.6 percent, at 8,296 after declining half a percent on Tuesday.
British American Tobacco rose about half a percent after saying it remains on track to deliver low-single digit organic revenue and adjusted profit from operations growth in fiscal year 2024.
Primary Health Properties rose over 2 percent. The healthcare facilities investor reported an additional £2.7m in rental income in a third quarter update.
Antofagasta jumped more than 3 percent. The Chilean miner reported a 15 percent rise in third-quarter copper output.
Property developer Hammerson rallied 2.3 percent after launching a £140m share buyback program.
DAX Drifts Lower Ahead Of ECB Rate Decision
(RTTNews) - German stocks were moving lower on Wednesday and the euro was down for a third day in a row as investors await Thursday's ECB meeting for directional cues.
Markets currently eye two more rate cuts from the euro area's central bank this year amid a weak growth outlook and lower inflation.
The benchmark DAX slipped 0.2 percent to 19,451 after closing 0.1 percent lower the previous day.
Earnings remained in focus, with sportswear giant Adidas tumbling 3.6 percent despite raising its full-year sales and profit guidance.
Dragerwerk declined 3.1 percent. The breathing equipment maker for industries and hospitals registered a decline in preliminary earnings before interest and taxes for the third quarter, reflecting a drop in sales.
Philippine Central Bank Lowers Key Rates By 25 Bps
(RTTNews) - The Philippine central bank reduced its benchmark rates by 25 basis points for the second straight meeting on Wednesday, as inflation remained low.
The Monetary Board of the Bangko Sentral ng Pilipinas lowered the target reverse repurchase rate to 6.00 percent from 6.25 percent.
The interest rates on the overnight deposit and lending facilities were accordingly adjusted to 5.50 percent and 6.50 percent, respectively. The new rates will take effect on October 17.
The interest rates were previously lowered by quarter point in August, which was the first cut since November 2020.
In September, consumer price inflation halved to a four-year low of 1.9 percent from 3.3 percent. This was also below BSP's forecast range of 2.0-2.8 percent for the month.
As a result, the year-to-date average of 3.4 percent was within the government's inflation target range of 2.0 percent to 4.0 percentage point for 2024.
At the same time, core inflation fell to 2.4 percent from 2.6 percent.
Today, the bank downgraded its risk-adjusted inflation forecast for 2024 to 3.1 percent from 3.3 percent. But the outlook for 2025 and 2026 were lifted to 3.3 percent and 3.7 percent, respectively.
The bank said risks to the outlook for 2025 and 2026 was shifted toward the upside due to potential adjustments in electricity rates and higher minimum wages.
Further, the board expects domestic growth to continue to be strong based on improved prospects for household income and consumption, investment and government spending amid monetary easing.
"On balance, the within-target inflation outlook and well-anchored inflation expectations continue to support the BSP's shift toward less restrictive monetary policy," the bank said.
"Looking ahead, the Monetary Board will maintain a measured approach in its easing cycle to ensure price stability conducive to sustainable economic growth and employment," the bank added.
The BSP is set to cut the policy rate by another 25 basis points at the December meeting, with further easing likely in 2025, Capital Economics' economist Harry Chambers said.
Pound Slides As U.K. Inflation Hits Three-year Low
(RTTNews) - The British pound weakened against other major currencies in the European session on Wednesday, after U.K. inflation fell below the 2 percent target and also hit the lowest in more than three years in September, piling pressure on the Bank of England to ease policy at the November meeting.
Data from the Office for National Statistics showed that consumer price inflation weakened more-than-expected to 1.7 percent in September from 2.2 percent in August. This was the lowest since April 2021. Prices were forecast to climb 1.9 percent.
On a monthly basis, the consumer price index remained flat after rising 0.3 percent in the prior month. Economists had expected a 0.2 percent increase.
Core inflation that excludes prices of energy, food, alcohol and tobacco, softened to 3.2 percent from 3.6 percent in the previous month. The core rate also remained below forecast of 3.4 percent.
Data showed that services inflation eased notably to 4.9 percent from 5.6 percent. At the same time, goods prices slid 1.4 percent.
The BoE had maintained its benchmark rate at 5.00 percent at the September meeting after lowering it by a quarter-point in August, which was the first reduction since 2020. The next policy announcement is due on November 7.
Another report from the ONS showed that output prices declined for the first time in eight months in September. Output prices dropped 0.7 percent annually, reversing a 0.3 percent rise in August. Economists had forecast prices to fall 0.6 percent.
On a monthly basis, the decline in output prices deepened to 0.5 percent from 0.3 percent in the prior month. Prices were expected to fall again by 0.3 percent.
Input prices decreased 2.3 percent on a yearly basis, following a revised 1.0 percent fall in August. Monthly input prices were down 1.0 percent after a 0.3 percent drop in August. Input prices were expected to drop only by 0.5 percent.
European shares traded lower with weak earnings and caution ahead of a European Central Bank (ECB) policy meeting on Thursday denting investor sentiment.
The ECB is likely to deliver another interest rate cut after recent data signaled continued weakness in the euro zone economy.
In the European trading now, the pound fell to nearly a 2-month low of 1.2982 against the U.S. dollar and a 6-day low of 193.70 against the yen, from early highs of 1.3078 and 195.30, respectively. If the pound extends its downtrend, it is likely to find support around 1.28 against the greenback and 191.00 against the yen.
Against the euro and the Swiss franc, the pound dropped to a 5-day low of 0.8380 and a 2-day low of 1.1193 from early highs of 0.8327 and 1.1280, respectively. The pound may test support near 0.84 against the euro and 1.11 against the franc.
Looking ahead, U.S. MBA mortgage approvals data, Canada housing starts for September, manufacturing sales data for August, U.S. import and export prices for September, are slated for release in the New York session.
European Stocks Closed Broadly Lower
(RTTNews) - European markets closed broadly lower on Wednesday after a cautious session, even as the U.K. market settled at multi-week high thanks to data showing a sharp drop in inflation in September. Investors looked ahead to the European Central Bank's policy announcement on Thursday for directional cues.
UK inflation fell below the 2% target and also hit the lowest in more than three years in September, piling pressure on the Bank of England to ease policy at the November meeting. Consumer price inflation weakened more-than-expected to 1.7% in September from 2.2% in August, the Office for National Statistics said.
The pan European Stoxx 600 ended down 0.19%. Germany's DAX and France's CAC 40 closed lower by 0.27% and 0.4%, respectively. The U.K.'s FTSE 100 climbed 0.97% to a six-week high. Switzerland's SMI ended lower by 0.21%.
Among other markets in Europe, Belgium, Denmark, Finland, Ireland, Netherlands and Russia ended weak.
Austria, Greece, Norway, Poland, Portugal, Spain, Sweden and Turkiye closed higher, while Iceland ended flat.
In the UK market, Whitbread climbed more than 6%. Barratt Developments, Entain, Severn Trent, Endeavour Mining, Rolls-Royce Holdings, Persimmon, Taylor Wimpey, Melrose Industries, United Utilities and Ashtead Group gained 3 to 5%.
Land Securities, Legal General, JD Sports Fashion, LondonMetric Property, British Land, IAG, Vodafone Group, Howden Joinery and DCC also moved up sharply. Antofagasta gained about 1.3% after reporting a 15% rise in third-quarter copper output.
Rentokil Initial, Admiral Group and Informa lost 2 to 2.6%. Beazley, Sainsbury (J) and Mondi also closed weak.
In the German market, Adidas closed more than 6% down, despite raising its full-year sales and profit guidance.
Sartorius ended down 4%. Qiagen, Hannover Rueck, Merck, Symrise, Brenntag, Porsche and Siemens lost 1 to 2%.
Puma rallied more than 3.5%. MTU Aero Engines closed up 1.6%. Vonovia, Deutsche Bank, Siemens Energy, Henkel, BASF, E.ON, Deutsche Telekom and SAP gained 0.4 to 1.2%.
In the French market, LVMH tumbled 3.7% after sales of fashion and leather goods unexpectedly fell at its biggest unit for the first time since 2020.
L'Oreal ended down 2.1%, while Hermes International and Carrefour closed lower by 1.3% and 1.2%, respectively.
Teleperformance soared more than 11%. Renault and Accor both gained nearly 2%. Orange, Thales, BNP Paribas and Bouygues also closed notably higher.
ASML Holding slumped more than 5% after the semiconductor equipment maker announced deep cuts to its 2025 sales forecast.
UK Inflation Falls Below 2% Target
(RTTNews) - UK inflation fell below the 2 percent target and also hit the lowest in more than three years in September, piling pressure on the Bank of England to ease policy at the November meeting.
Consumer price inflation weakened more-than-expected to 1.7 percent in September from 2.2 percent in August, the Office for National Statistics reported Wednesday.
This was the lowest since April 2021. Prices were forecast to climb 1.9 percent.
The fall was underpinned by lower air fares and petrol prices. Meanwhile, food and non-alcoholic beverages prices provided the largest upward contribution.
On a monthly basis, the consumer price index remained flat after rising 0.3 percent in the prior month. Economists had expected a 0.2 percent increase.
Core inflation that excludes prices of energy, food, alcohol and tobacco, softened to 3.2 percent from 3.6 percent in the previous month. The core rate also remained below forecast of 3.4 percent.
Data showed that services inflation eased notably to 4.9 percent from 5.6 percent. At the same time, goods prices slid 1.4 percent.
ING economists said the data is unequivocally dovish for the BoE and paves the way for rate cuts at the two remaining meetings this year.
The BoE had maintained its benchmark rate at 5.00 percent at the September meeting after lowering it by a quarter-point in August, which was the first reduction since 2020. The next policy announcement is due on November 7.
Another report from the ONS showed that output prices declined for the first time in eight months in September. Output prices dropped 0.7 percent annually, reversing a 0.3 percent rise in August. Economists had forecast prices to fall 0.6 percent.
On a monthly basis, the decline in output prices deepened to 0.5 percent from 0.3 percent in the prior month. Prices were expected to fall again by 0.3 percent.
Input prices decreased 2.3 percent on a yearly basis, following a revised 1.0 percent fall in August. Monthly input prices were down 1.0 percent after a 0.3 percent drop in August. Input prices were expected to drop only by 0.5 percent.
European Shares Mostly Lower As Earnings Disappoint
(RTTNews) - European stocks were broadly lower on Wednesday as investors digested a slew of disappointing earnings updates and awaited a European Central Bank policy meeting on Thursday for directional cues.
Markets currently eye two more rate cuts from the euro area's central bank this year amid a weak growth outlook and lower inflation.
The pan-European STOXX 600 was down 0.3 percent at 518.95 after falling 0.8 percent on Tuesday.
The German DAX slipped 0.3 percent and France's CAC 40 dipped half a percent while the U.K.'s FTSE 100 was up 0.7 percent.
The British pound slumped below $1.30 mark after official data showed U.K. inflation fell below the 2 percent target and also hit the lowest in more than three years in September, piling pressure on the Bank of England to ease policy at the November meeting.
LVMH plunged 4 percent in Paris after sales of fashion and leather goods unexpectedly fell at its biggest unit for the first time since 2020.
Peers Kering, Hermes International and Richemont were down 1-2 percent.
Rexel SA lost 4 percent. The distributor of electrical supplies cut its 2024 outlook due to negative trading environment in Europe.
Stellantis NV fell about 1 percent after the automaker reported a 20 percent fall in third-quarter consolidated shipments.
ASML Holding slumped 4.3 percent after the semiconductor equipment maker announced deep cuts to its 2025 sales forecast.
Food delivery firm Just Eat Takeaway.com tumbled 3 percent as it reported a decline in orders for the third quarter.
Primary Health Properties rose over 2 percent. The British healthcare facilities investor reported an additional £2.7m in rental income in a third quarter update.
Antofagasta jumped more than 3 percent. The Chilean miner reported a 15 percent rise in third-quarter copper output.
Property developer Hammerson rallied 2.3 percent after launching a £140m share buyback program.
German sportswear giant Adidas tumbled 3.3 percent despite raising its full-year sales and profit guidance.
Dragerwerk gave up 4 percent. The breathing equipment maker for industries and hospitals registered a decline in preliminary earnings before interest and taxes for the third quarter, reflecting a drop in sales.
Swiss Market Ends Marginally Down
(RTTNews) - After a weak start and a subsequent long spell in negative territory, the Switzerland market briefly edged up into positive territory in the final hour of the session on Wednesday, but slipped and ended the day marginally down.
The benchmark SMI ended with a loss of 25.78 points or 0.21% at 12,193.07, after moving in a tight range between 12,161.05 and 12,223.11.
VAT Group dropped 4.28%, and Swatch Group closed down 2.75%. Alcon and Givaudan ended lower by 1.67% and 1.52%, respectively. Logitech International ended down 1.16%.
Lindt Spruengli, Richemont, ABB, Schindler Ps and Roche Holding closed lower by 0.6 to 1%.
Holcim ended moderately lower. The Swiss building materials company is weighing a potential dual listing of its North American subsidiary in the US and Switzerland, according to Bloomberg News.
Tecan Group plunged 14.5% following a profit warning. The laboratory instruments company announced an anticipated 12% to 14% drop in full-year 2024 sales in local currencies, compared with its previous forecast of a flat to mid-single-digit percentage decline.
Adecco gained nearly 2%. Julius Baer and SGS climbed 1.78% and 1.46%, respectively. Straumann Holding gained 1.13% and UBS Group ended up 1.05%.
Swiss Life Holding gained nearly 1%. Swisscom ended with a gain of 0.62%, while Kuehne Nagel gained 0.45%.
Japan Has Y294.3 Billion Trade Shortfall
(RTTNews) - Japan posted a merchandise trade deficit of 294.3 billion yen in September, the Ministry of Finance said on Thursday.
That missed forecasts for a shortfall of 237.6 billion yen following the downwardly revised 703.2 billion yen deficit in August (originally -695.3 billion yen).
Exports fell 1.7 percent on year to 9.038 trillion yen - shy of expectations for an increase of 0.5 percent following the downwardly revised 5.5 percent increase in the previous month (originally 5.6 percent).
Imports rose an annual 2.1 percent to 9.332 trillion yen versus expectations for a gain of 3.2 percent following the 2.3 percent increase a month earlier.
Australia Unemployment Data Due On Thursday
(RTTNews) - Australia will on Thursday release September figures for unemployment, highlighting a light day for Asia-Pacific economic activity.
The Australian economy is expected to have added 25,200 jobs last month following the addition of 47,500 jobs in August. The jobless rate (4.2 percent) and the participation rate (67.1 percent) are both seen steady.
Japan will provide September numbers for imports, exports and trade balance. Imports are expected to rose 3.2 percent on year after adding 2.3 percent in August. Exports are called higher by an annual 0.5 percent, slowing from 5.6 percent in the previous month. The trade deficit is pegged at 237.6 billion yen following the 695.3 billion yen shortfall a month earlier.
Singapore will see September figures for non-oil domestic exports; in August, NODX was down 4.7 percent on month and up 10.7 percent on year, with a trade surplus of SGD5.90 billion.
Singapore Stock Market May Reclaim 3,600-Point Level
(RTTNews) - The Singapore stock market has ticked lower in consecutive trading days, although it has given up just over 5 points or 0.15 percent in that span. The Straits Times Index now sits just above the 3,590-point plateau although it figures to stop the bleeding on Thursday.
The global forecast for the Asian markets suggests mild upside on optimism ahead of key U.S. economic data later this week. The European markets were mixed and the U.S. bourses were up and the Asian markets figure to split the difference.
The STI finished slightly lower on Wednesday as losses from the financial shares were tempered by support from the industrials and properties.
For the day, the index dipped 4.85 points or 0.13 percent to finish at the daily low of 3,590.62 after trading between 3,614.57.
Among the actives, CapitaLand Integrated Commercial Trust gained 0.48 percent, while CapitaLand Investment skidded 1.00 percent, City Developments rallied 0.97 percent, Comfort DelGro advanced 0.69 percent, DBS Group slumped 1.02 percent, DFI Retail Group surged 3.81 percent, Emperador stumbled 1.16 percent, Hongkong Land jumped 1.27 percent, Keppel DC REIT tumbled 1.32 percent, Keppel Ltd sank 0.31 percent, Mapletree Industrial Trust rose 0.41 percent, Mapletree Logistics Trust climbed 0.71 percent, Oversea-Chinese Banking Corporation lost 0.26 percent, SATS perked 0.27 percent, Seatrium Limited spiked 1.52 percent, SembCorp Industries added 0.55 percent, Singapore Technologies Engineering fell 0.22 percent, Wilmar International retreated 1.21 percent, Yangzijiang Financial declined 1.20 percent, Yangzijiang Shipbuilding soared 2.34 percent and SingTel, Thai Beverage, Frasers Logistics Commercial Trust, Frasers Centrepoint Trust, Genting Singapore and Mapletree Pan Asia Commercial Trust were unchanged.
The lead from Wall Street is upbeat as the major averages opened mixed on Wednesday but quickly headed higher and finished well in positive territory.
The Dow rallied 337.28 points or 0.79 percent to finish at 43,077.70, while the NASDAQ gained 51.49 points or 0.28 percent to close at 18,367.08 and the SP 500 added 27.21 points or 0.47 percent to end at 5,842.47.
The strength that emerged on Wall Street came on continued optimism about the strength of the U.S. economy ahead of the release of several key reports later this week including weekly jobless claims, retail sales and industrial production.
In economic news, the Labor Department released a report showing a continued decrease by prices for U.S. imports and exports in September.
Oil futures settled lower on Wednesday, weighed down by concerns about weak demand from China and easing geopolitical worries. West Texas Intermediate Crude oil futures for November ended down $0.19 at $70.39 a barrel.
Closer to home, Singapore will see September figures for non-oil domestic exports this morning; in August, NODX was down 4.7 percent on month and up 10.7 percent on year, with a trade surplus of SGD5.90 billion.
Dollar Rises Against Major Counterparts
(RTTNews) - The U.S. dollar climbed higher on Wednesday on speculation the Federal Reserve will not deliver a big interest rate cut at the next policy meeting.
Soft U.K. inflation data that resulted in a drop in Pound Sterling's value, and a weak euro ahead of the monetary policy meeting of the European Central Bank supported the greenback.
The dollar rose on rising bets for a second Donald Trump presidency and expectations the Federal Reserve will proceed with modest interest rate cuts.
Markets currently see a 95% chance of a 25 basis point rate cut from the Fed next month after an aggressive 50 basis point cut in September.
In economic news, data from the Labor Department said import prices fell by 0.4% in September after slipping by a revised 0.2% in August. The decline matched economist estimates.
Compared to the same month a year ago, import prices edged down by 0.1%, marking the first year-over-year decrease since February.
The report also said export prices slid by 0.7% in September after slumping by a revised 0.9% in August. Economists had expected export prices to fall by 0.4%.
The dollar index, which climbed to 103.61, was last seen at 103.55, up 0.28% from the previous close.
Against the Euro, the dollar firmed to 1.0861 from 1.0892.
The dollar strengthened to 1.2987 against Pound Sterling, gaining from 1.3074, after U.K. inflation fell below the 2% target and also hit the lowest in more than three years in September, piling pressure on the Bank of England to ease policy at the November meeting.
Against the Japanese currency, the dollar advanced to 149.65 yen from 149.22 yen. The dollar firmed to 0.6665 against the Aussie, from the previous close of 0.6704 a unit of the Australian currency.
The Swiss franc weakened to 0.8655 a dollar from 0.8621, while the Loonie gained against the dollar, firming to C$1.3755.
