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Decline In U.S. Mortgage Applications Slows: MBA
(RTTNews) - The number of mortgage applications in the U.S. fell for the third week in a row, but at a slower pace in the week ended October 18, as higher interest rates continue to weigh on demand, results of a survey by the Mortgage Bankers Association showed Wednesday.
The Market Composite Index, a measure of mortgage loan application volume, fell 6.7 percent from the previous week when it slumped 17 percent.
The average contract interest rate for 30-year fixed-rate mortgages was steady at 6.52 percent.
The purchase index fell 5 percent to 131.4 from 138.4 from the previous week and the refinance index plunged 8 percent to 672.6 from 734.6, the MBA survey showed.
"Application activity decreased to its lowest level since July, as both purchase and refinance applications saw declines," Joel Kan, MBA's vice president and deputy chief economist, said.
"Purchase applications continued to run stronger than last year's pace for the fifth consecutive week."
Kan said some homebuyers are still in the market as rates, which are on a recent upswing, are over a full percentage point lower than a year ago.
"For-sale inventory has started to loosen, and home-price growth has eased in some markets, providing more options for buyers in combination with these lower rates," Kan added.
The weekly MBA survey covers U.S. closed-end residential mortgage applications originated through retail and consumer direct channels and respondents include mortgage bankers, commercial banks, thrifts, and credit unions.
Continued Consolidation Called For Malaysia Stock Market
(RTTNews) - The Malaysia stock market has moved lower in three straight sessions, slipping almost 5 points or 0.3 percent along the way. The Kuala Lumpur Composite Index now sits just above the 1,640-point plateau and it may take further damage again on Thursday.
The global forecast for the Asian markets is negative amid rising treasury yields and pessimism over the outlook for interest rates. The European and U.S. markets were down and the Asian bourses figure to follow that lead.
The KLCI finished slightly lower on Wednesday following losses from the telecoms, gains from the financials and a mixed picture from the plantation stocks and industrials.
For the day, the index dipped 1.01 points or 0.06 percent to finish at the daily low of 1,641.53 after moving as high as 1,645.90.
Among the actives, Axiata stumbled 1.23 percent, while Celcomdigi dropped 0.56 percent, CIMB Group and Genting both perked 0.25 percent, Genting Malaysia gained 0.43 percent, Hong Leong Bank collected 0.85 percent, IHH Healthcare and Tenaga Nasional both lost 0.28 percent, IOI Corporation sank 0.53 percent, Kuala Lumpur Kepong advanced 0.47 percent, Maxis declined 1.05 percent, MISC gathered 0.26 percent, MRDIY spiked 1.38 percent, PPB Group rose 0.42 percent, Press Metal tumbled 1.85 percent, QL Resources shed 0.42 percent, RHB Bank rallied 1.25 percent, Sime Darby slumped 0.83 percent, SD Guthrie retreated 1,24 percent, Sunway and YTL Corporation both added 0.45 percent, Telekom Malaysia skidded 0.61 percent, YTL Power climbed 1.18 percent and Maybank, Public Bank and Petronas Chemicals were unchanged.
The lead from Wall Street is weak as the major averages opened lower on Wednesday and remained in the red throughout the trading day, albeit bouncing off session lows.
The Dow plunged 409.94 points or 0.96 percent to finish at 42,514.95, while the NASDAQ plummeted 296.47 points or 1.60 percent to close at 18,276.47 and the SP 500 dropped 53.78 points or 0.92 percent to end at 5,797.42.
The weakness on Wall Street came amid a continued increase by treasury yields, which have moved sharply higher over the past few sessions.
The yield on the benchmark ten-year note has risen to its highest level in almost three months amid worries the Federal Reserve will lower interest rates slower than previously anticipated.
While the Fed is still widely expected to lower interest rates by a quarter-point next month, there is increasing skepticism about another rate cut in December.
Oil prices fell on Wednesday, weighed down by data showing a larger than expected increase in U.S. crude oil inventories last week, while a stronger dollar also weighed. West Texas Intermediate crude oil futures for December fell $0.97 or 1.35 percent at $70.77 a barrel.
Closer to home, Malaysia will provide September figures for consumer prices later today; in August, inflation was up 0.1 percent on month and 1.9 percent on year.
South Korea GDP Expands 0.1% On Quarter In Q3
(RTTNews) - South Korea's gross domestic product gained a seasonally adjusted 0.1 percent on quarter in the third quarter of 2024, the Bank of Korea said in Thursday's preliminary reading.
That missed forecasts for an increase of 0.5 percent following the 0.2 percent contraction in the second quarter.
Real gross domestic income (GDI) increased 0.5 percent compared to the previous quarter.
On the expenditure side, private consumption grew 0.5 percent, as expenditures on goods (e.g., motor vehicles, communication equipment) and services (e.g., health services, transport services) increased.
Government consumption rose by 0.6 percent, with increased social security benefits in kind (e.g., expenditures on health care benefits).
Construction investment shrank 2.8 percent, as building construction and civil engineering both decreased. Facilities investment increased by 6.9 percent, as machinery (e.g., semiconductor manufacturing equipment) and transportation equipment (e.g., aircraft) both increased.
Exports fell 0.4 percent, as exports of motor vehicles and chemical products decreased. Imports were up by 1.5 percent, as imports of machinery equipment increased.
On the production side, agriculture, forestry and fishing added 3.4 percent, due to an increase in livestock production.
Manufacturing expanded 0.2 percent, as transportation equipment and machinery and equipment increased. Electricity, gas and water supply increased by 5.1 percent, due to an increase in electricity.
Construction fell 0.7 percent, owing to a decrease in building construction. Services expanded 0.2 percent, centering on increases in human health and social work and transportation and storage, offsetting a decrease in wholesale and retail trade, accommodation and food services.
On an annualized basis, GDP rose 1.5 percent - again missing expectations for a gain of 2.0 percent following the 2.3 percent gain in the three months prior.
Rally May Stall For Hong Kong Stock Market
(RTTNews) - The Hong Kong stock market has moved higher in two straight sessions, collecting more than 280 points or 1.4 percent along the way. The Hang Seng Index now sits just above the 20,760-point plateau although it may spin its wheels on Thursday.
The global forecast for the Asian markets is negative amid rising treasury yields and pessimism over the outlook for interest rates. The European and U.S. markets were down and the Asian bourses figure to follow that lead.
The Hang Seng finished sharply higher on Wednesday following gains from the technology stocks, financials and oil companies, while the property sector was mixed.
For the day, the index jumped 261.20 points or 1.27 percent to finish at 20,760.15 after trading between 20,448.84 and 20,942.26.
Among the actives, Alibaba Group perked 0.05 percent, while Alibaba Health Info climbed 2.29 percent, ANTA Sports rose 0.17 percent, China Life Insurance accelerated 3.66 percent, China Mengniu Dairy strengthened 2.33 percent, China Resources Land fell 0.19 percent, CITIC improved 0.97 percent, CNOOC added 0.43 percent, CSPC Pharmaceutical retreated 1.24 percent, Galaxy Entertainment advanced 1.03 percent, Haier Smart Home plunged 3.17 percent, Hang Lung Properties increased 0.76 percent, Hong Kong China Gas sank 0.33 percent, Industrial and Commercial Bank of China collected 1.06 percent, JD.com rallied 2.98 percent, Lenovo tumbled 1.25 percent, Li Auto surged 6.34 percent, Li Ning plummeted 4.86 percent, Meituan soared 5.47 percent, New World Development gained 0.25 percent, Nongfu Spring tanked 1.63 percent, Xiaomi Corporation spiked 4.50 percent, WuXi Biologics jumped 2.55 percent and Henderson Land and Techtronic Industries were unchanged.
The lead from Wall Street is weak as the major averages opened lower on Wednesday and remained in the red throughout the trading day, albeit bouncing off session lows.
The Dow plunged 409.94 points or 0.96 percent to finish at 42,514.95, while the NASDAQ plummeted 296.47 points or 1.60 percent to close at 18,276.47 and the SP 500 dropped 53.78 points or 0.92 percent to end at 5,797.42.
The weakness on Wall Street came amid a continued increase by treasury yields, which have moved sharply higher over the past few sessions.
The yield on the benchmark ten-year note has risen to its highest level in almost three months amid worries the Federal Reserve will lower interest rates slower than previously anticipated.
While the Fed is still widely expected to lower interest rates by a quarter-point next month, there is increasing skepticism about another rate cut in December.
Oil prices fell on Wednesday, weighed down by data showing a larger than expected increase in U.S. crude oil inventories last week, while a stronger dollar also weighed. West Texas Intermediate crude oil futures for December fell $0.97 or 1.35 percent at $70.77 a barrel.
TSX Ends Lower Despite BoC's Sharp Rate Cut
(RTTNews) - The Canadian market ended weak on Wednesday, hurt by losses in technology, energy and materials stocks. Despite the Bank of Canada's decision to cut interest rates by 50 basis points, the mood in the market remained bearish amid concerns about the outlook for economic growth and due to persisting Middle East tensions.
The benchmark SP/TSX Composite Index ended down 143.08 points or 0.58% at 24,573.62, about 20 points off the day's low of 24,453.40. The index remained in negative territory right through the day's session.
The Canadian central bank cut rates by a half point today, as widely expected, reducing its target for the overnight rate by 50 basis points to 3.75%, with the Bank Rate at 4% and the deposit rate at 3.75%.
The Canadian central bank's decision to continue lowering rates came as consumer price inflation has declined significantly from 2.7% in June to 1.6% in September.
"With inflation now back around the 2% target, Governing Council decided to reduce the policy rate by 50 basis points to support economic growth and keep inflation close to the middle of the 1% to 3% range," the bank said its statement.
The central bank also said it expects to further reduce rates if the economy evolves broadly in line with its forecast but noted the timing and pace of future rate cuts will be guided by incoming information and its implications for the inflation outlook.
"We will take decisions one meeting at a time," Bank of Canada said, stressing that it is committed to maintaining price stability for Canadians by keeping inflation close to the 2% target.
Seabridge Gold (SEA.TO) lost nearly 6.5%. Cameco Corporation (CCO.TO), Trisura Group (TSU.TO), Premium Brands Holdings Corporation (PBH.TO), TFI International (TFII.TO) and Shopify Inc (SHOP.TO) ended down by 2.3 to 4.5%.
Imperial Oil (IMO.TO), Constellation Software (CSU.TO), BlackBerry (BB.TO), Coveo Solutions (CVO.TO), Docebo Inc (DCBO.TO), MEG Energy (MEG.TO), Cenovus Energy (CVE.TO), Iamgold (IMG.TO), Eldorado Gold (ELD.TO) and Hudbay Minerals (HBM.TO) were among the other major losers in the session.
Celestica Inc (CLS.TO) climbed 2.6%. Restaurant Brands International (QSR.TO) gained nearly 2%, while Cogeco Inc. (CGO.TO), Cogeco Communications (CCA.TO), EQB Inc (EQB.TO), Boyd Group Services (BYD.TO) and goeasy (GSY.TO) closed higher by 1 to 1.5%.
Gold futures settled lower on Wednesday, as the dollar and bond yields moved up. Profit taking after six successive days of gains contributed as well to the drop in yellow metal prices.
Gold futures for October ended down $29.80 or about 1.1% at $2,714.40 an ounce. Silver futures for October settled lower by $1.1910 or about 3.4% at $33.640 an ounce, while Copper futures for November dropped to $4.2960 per pound, down $0.0590 or about 1.35% from the previous close.
Oil prices fell on Wednesday, weighed down by data showing a larger than expected increase in crude oil inventories in the U.S. in the week ended October 18th. West Texas Intermediate crude oil futures for December ended down $0.97 or about 1.35% at $70.77 a barrel.
South Korea GDP Data Due On Thursday
(RTTNews) - South Korea will on Thursday release preliminary Q3 data for gross domestic product, highlighting a modest day for Asia-Pacific economic activity.
GDP is expected to rise 0.5 percent on quarter and 2.0 percent on year after slipping 0.2 percent on quarter and expanding 2.3 percent on year in the previous three months.
Australia will see preliminary October results for the manufacturing and services PMIs from Judo Bank; in September, their scores were 46.7 and 50.5, respectively.
Japan will see preliminary October results for the manufacturing and services PMIs from Jibun Bank; in September, their scores were 49.7 and 53.1, respectively.
Malaysia will provide September figures for consumer prices; in August, inflation was up 0.1 percent on month and 1.9 percent on year.
Taiwan will release September unemployment numbers; in August, the jobless rate was 3.36 percent.
South Korea Shares Likely To Remain Rangebound On Thursday
(RTTNews) - The South Korea stock market has finished higher in two of three trading days since the end of the three-day slide in which it had slumped almost 40 points or 1.6 percent. The KOSPI now sits just beneath the 2,600-point plateau although it's likely to head south again on Thursday.
The global forecast for the Asian markets is negative amid rising treasury yields and pessimism over the outlook for interest rates. The European and U.S. markets were down and the Asian bourses figure to follow that lead.
The KOSPI finished sharply higher on Wednesday following gains from the financial shares, technology stocks and steel companies.
For the day, the index rallied 28.92 points or 1.12 percent to finish at 2,599.62. Volume was 345.96 million shares worth 9.25 trillion won. There were 448 gainers and 408 decliners.
Among the actives, Shinhan Financial collected 0.54 percent, while KB Financial perked 0.21 percent, Hana Financial fell 0.31 percent, Samsung Electronics spiked 2.43 percent, Samsung SDI accelerated 2.16 percent, LG Electronics soared 3.32 percent, SK Hynix surged 4.37 percent, Naver improved 0.76 percent, LG Chem jumped 2.04 percent, Lotte Chemical strengthened 1.53 percent, SK Innovation rallied 3.38 percent, POSCO climbed 3.17 percent, SK Telecom slumped 1.39 percent, KEPCO added 0.69 percent, Hyundai Mobis fell 0.40 percent, Hyundai Motor gained 2.77 percent and Kia Motors rose 0.54 percent.
The lead from Wall Street is weak as the major averages opened lower on Wednesday and remained in the red throughout the trading day, albeit bouncing off session lows.
The Dow plunged 409.94 points or 0.96 percent to finish at 42,514.95, while the NASDAQ plummeted 296.47 points or 1.60 percent to close at 18,276.47 and the SP 500 dropped 53.78 points or 0.92 percent to end at 5,797.42.
The weakness on Wall Street came amid a continued increase by treasury yields, which have moved sharply higher over the past few sessions.
The yield on the benchmark ten-year note has risen to its highest level in almost three months amid worries the Federal Reserve will lower interest rates slower than previously anticipated.
While the Fed is still widely expected to lower interest rates by a quarter-point next month, there is increasing skepticism about another rate cut in December.
Oil prices fell on Wednesday, weighed down by data showing a larger than expected increase in U.S. crude oil inventories last week, while a stronger dollar also weighed. West Texas Intermediate crude oil futures for December fell $0.97 or 1.35 percent at $70.77 a barrel.
Closer to home, South Korea will release preliminary Q3 data for gross domestic product later this morning. GDP is expected to rise 0.5 percent on quarter and 2.0 percent on year after slipping 0.2 percent on quarter and expanding 2.3 percent on year in the previous three months.
Australia Manufacturing PMI Sinks To 46.6 In October - Judo Bank
(RTTNews) - The manufacturing sector in Australia continued to contract in October, and at a slightly faster pace, the latest survey from Judo Bank revealed on Thursday with a manufacturing PMI score of 46.6.
That's down from 46.7 in September, and it moves further beneath the boom-or-bust line of 50 that separates expansion from contraction.
Subdued market conditions and weak underlying demand for goods kept new orders for Australian manufactured goods contracting at a sharp pace at the start of the fourth quarter. This led to another steep decline in production, the fastest in 53 months.
The survey also showed that the services PMI rose to 50.6 in October from 50.5 in September.
Incoming new business expanded at a quicker pace in October, driving higher services activity. Improvements in domestic demand underpinned new business growth, whereas export business contracted at a more pronounced pace in October.
The composite index improved to 49.8 in October from 49.6 in September.
The near-stabilization of private sector output again masked sector divergences, as a faster manufacturing output contraction more than offset a quicker rise in services activity.
Singapore Shares May Head South Again On Thursday
(RTTNews) - The Singapore stock market on Wednesday snapped the two-day slide in which it had dropped more than 50 points or 1.4 percent. The Straits Times Index now sits just above the 3,600-point plateau although it may see renewed selling pressure on Thursday.
The global forecast for the Asian markets is negative amid rising treasury yields and pessimism over the outlook for interest rates. The European and U.S. markets were down and the Asian bourses figure to follow that lead.
The STI finished modestly higher on Wednesday following gains from the properties and mixed performances from the financial shares and industrial issues.
For the day, the index gained 13.37 points or 0.37 percent to finish at 3,600.78 after trading between 3,587.89 and 3,616.84.
Among the actives, CapitaLand Integrated Commercial Trust slid 0.48 percent, while CapitaLand Investment skidded 1.01 percent, City Developments eased 0.19 percent, Comfort DelGro shed 0.68 percent, DBS Group collected 0.51 percent, Emperador tumbled 1.16 percent, Genting Singapore lost 0.60 percent, Hongkong Land rallied 2.28 percent, Keppel DC REIT jumped 1.30 percent, Mapletree Logistics Trust sank 0.71 percent, Oversea-Chinese Banking Corporation climbed 1.25 percent, SATS added 0.27 percent, Seatrium Limited stumbled 1.02 percent, SembCorp Industries dropped 0.74 percent, Singapore Technologies Engineering gained 0.21 percent, SingTel fell 0.62 percent, Thai Beverage slumped 0.93 percent, Yangzijiang Shipbuilding advanced 0.78 percent and Keppel Ltd, Mapletree Pan Asia Commercial Trust, Mapletree Industrial Trust, Wilmar International, Yangzijiang Financial and Frasers Logistics Commercial Trust were unchanged.
The lead from Wall Street is weak as the major averages opened lower on Wednesday and remained in the red throughout the trading day, albeit bouncing off session lows.
The Dow plunged 409.94 points or 0.96 percent to finish at 42,514.95, while the NASDAQ plummeted 296.47 points or 1.60 percent to close at 18,276.47 and the SP 500 dropped 53.78 points or 0.92 percent to end at 5,797.42.
The weakness on Wall Street came amid a continued increase by treasury yields, which have moved sharply higher over the past few sessions.
The yield on the benchmark ten-year note has risen to its highest level in almost three months amid worries the Federal Reserve will lower interest rates slower than previously anticipated.
While the Fed is still widely expected to lower interest rates by a quarter-point next month, there is increasing skepticism about another rate cut in December.
Oil prices fell on Wednesday, weighed down by data showing a larger than expected increase in U.S. crude oil inventories last week, while a stronger dollar also weighed. West Texas Intermediate crude oil futures for December fell $0.97 or 1.35 percent at $70.77 a barrel.
South Korea GDP Rises 0.1% In Q3
(RTTNews) - South Korea's gross domestic product expanded a seasonally adjusted 0.1 percent on quarter in the third quarter of 2024, the Bank of Korea said in Thursday's preliminary reading.
That missed forecasts for an increase of 0.5 percent following the 0.2 percent contraction in the second quarter.
On an annualized basis, GDP rose 1.5 percent - again missing expectations for a gain of 2.0 percent following the 2.3 percent gain in the three months prior.
Real gross domestic income (GDI) increased 0.5 percent compared to the previous quarter.
Taiwan Stock Market May Extend Losing Streak
(RTTNews) - The Taiwan stock market has moved lower in back-to-back sessions, shedding more than 200 points or 0.9 percent along the way. The Taiwan Stock Exchange now rests just above the 23,330-point plateau and it may take further damage again on Thursday.
The global forecast for the Asian markets is negative amid rising treasury yields and pessimism over the outlook for interest rates. The European and U.S. markets were down and the Asian bourses figure to follow that lead.
The TSE finished modestly lower again on Wednesday following losses from the financial shares, technology stocks and plastics companies.
For the day, the index stumbled 200.67 points or 0.85 percent to finish at 23,334.76 after trading between 23,318.84 and 23,486.45.
Among the actives, Cathay Financial dipped 0.14 percent, while Mega Financial and First Financial both shed 1.27 percent, CTBC Financial lost 1.23 percent, Fubon Financial surrendered 1.29 percent, E Sun Financial weakened 1.06 percent, Taiwan Semiconductor Manufacturing Company slumped 1.40 percent, United Microelectronics Corporation dropped 0.99 percent, Hon Hai Precision rose 0.23 percent, Largan Precision perked 0.21 percent, Catcher Technology tanked 2,39 percent, MediaTek sank 0.76 percent, Delta Electronics declined 1.48 percent, Novatek Microelectronics retreated 1.33 percent, Formosa Plastics skidded 1.07 percent, Nan Ya Plastics was down 0.97 percent and Asia Cement tumbled 1.38 percent.
The lead from Wall Street is weak as the major averages opened lower on Wednesday and remained in the red throughout the trading day, albeit bouncing off session lows.
The Dow plunged 409.94 points or 0.96 percent to finish at 42,514.95, while the NASDAQ plummeted 296.47 points or 1.60 percent to close at 18,276.47 and the SP 500 dropped 53.78 points or 0.92 percent to end at 5,797.42.
The weakness on Wall Street came amid a continued increase by treasury yields, which have moved sharply higher over the past few sessions.
The yield on the benchmark ten-year note has risen to its highest level in almost three months amid worries the Federal Reserve will lower interest rates slower than previously anticipated.
While the Fed is still widely expected to lower interest rates by a quarter-point next month, there is increasing skepticism about another rate cut in December.
Oil prices fell on Wednesday, weighed down by data showing a larger than expected increase in U.S. crude oil inventories last week, while a stronger dollar also weighed. West Texas Intermediate crude oil futures for December fell $0.97 or 1.35 percent at $70.77 a barrel.
Closer to home, Taiwan will release September unemployment numbers later today; in August, the jobless rate was 3.36 percent.
China Stock Market Tipped To Open In The Red On Thursday
(RTTNews) - The China stock market has finished higher in four straight sessions, gathering more than 135 points or 4 percent along the way. The Shanghai Composite now sits just above the 3,300-point plateau although the rally may stall on Thursday.
The global forecast for the Asian markets is negative amid rising treasury yields and pessimism over the outlook for interest rates. The European and U.S. markets were down and the Asian bourses figure to follow that lead.
The JCI finished modestly higher on Wednesday following gains from the properties and mixed performances from the financial shares and resource stocks.
For the day, the index improved 16,94 points or 0.52 percent to finish at 3,302.80 after trading between 3,277.07 and 3,331.08. The Shenzhen Composite Index rose 2.92 points or 0.15 percent to end at 1,956.56.
Among the actives, Bank of China collected 0.40 percent, while China Merchants Bank improved 1.25 percent, Agricultural Bank of China fell 0.21 percent, China Life Insurance spiked 2.97 percent, Jiangxi Copper shed 0.35 percent, Aluminum Corp of China (Chalco) retreated 1.36 percent, Yankuang Energy lost 0.43 percent, PetroChina rose 0.24 percent, China Petroleum and Chemical (Sinopec) eased 0.15 percent, Huaneng Power dipped 0.14 percent, China Shenhua Energy dropped 0.94 percent, Gemdale jumped 1.43 percent, Poly Developments was down 0.18 percent, China Vanke advanced 0.97 percent and Industrial and Commercial Bank of China
China Construction Bank
The lead from Wall Street is weak as the major averages opened lower on Wednesday and remained in the red throughout the trading day, albeit bouncing off session lows.
The Dow plunged 409.94 points or 0.96 percent to finish at 42,514.95, while the NASDAQ plummeted 296.47 points or 1.60 percent to close at 18,276.47 and the SP 500 dropped 53.78 points or 0.92 percent to end at 5,797.42.
The weakness on Wall Street came amid a continued increase by treasury yields, which have moved sharply higher over the past few sessions.
The yield on the benchmark ten-year note has risen to its highest level in almost three months amid worries the Federal Reserve will lower interest rates slower than previously anticipated.
While the Fed is still widely expected to lower interest rates by a quarter-point next month, there is increasing skepticism about another rate cut in December.
Oil prices fell on Wednesday, weighed down by data showing a larger than expected increase in U.S. crude oil inventories last week, while a stronger dollar also weighed. West Texas Intermediate crude oil futures for December fell $0.97 or 1.35 percent at $70.77 a barrel.
Asian Shares Mostly Lower On US Election Uncertainty
(RTTNews) - Asian stocks ended mostly lower on Thursday as rising yields on uncertainty over the U.S. election outcome weighed on the tech sector. Tesla's forecast-beating earnings provided some comfort for investors, helping limit regional losses.
The dollar held near three-month highs on increased expectations of a possible return of Donald Trump to the White House and growing bets the Federal Reserve may be more restrained in their easing pace.
Gold drifted higher amid safe-haven demand as Middle East tensions persisted. Oil prices were up more than 1 percent in Asian trading after retreating on Wednesday on data showing a larger than expected increase in crude oil inventories in the U.S.
China's Shanghai Composite index dropped 0.68 percent to 3,280.26 on concerns the U.S.-China tech war ma heat up - no matter whether Donald Trump or Kamala Harris wins the November 5 presidential election. Hong Kong's Hang Seng index fell 1.30 percent to 20,489.62.
Japanese markets reversed early losses to end modestly higher and the yen weakened across the board after Bank of Japan governor Kazuo Ueda said it is becoming difficult to judge how large future rises in borrowing costs will be.
Earlier in the day, a private survey showed Japan's factory activity contracted for the fourth straight month in October on subdued demand and weak orders.
The Nikkei average edged up 0.10 percent to 38,143.29 while the broader Topix index settled marginally lower at 2,635.57.
Seoul stocks fell notably as data revealed South Korea narrowly avoided a technical recession in Q3. The Kospi average dipped 0.72 percent to 2,581.03.
Korea Zinc shares jumped nearly 30 percent on the heels of the company's tender offer for its own shares, which concluded the previous day.
Australian markets ended slightly lower after the PMI manufacturing index hit a 53-moth low in October.
The benchmark SP/ASX 200 slipped 0.12 percent to 8,206.30 while the broader All Ordinaries index closed 0.26 percent lower at 8,453.90. Tech shares led losses, with WiseTech Global falling 6.3 percent.
Across the Tasman, New Zealand's benchmark SP/NZX-50 index inched up 0.21 percent to close at 12,814.07.
U.S. stocks fell overnight as rising bond yields and uncertainty about the outcome of the Nov. 5 presidential election triggered a sell-off in the world's largest technology companies.
The 10-year yield rose to its highest level in almost three months amid bets the Federal Reserve will take a more measured approach on rate cuts.
The Dow dropped 1 percent and the SP 500 declined 0.9 percent to extend losses into a third straight day, while the tech-heavy Nasdaq Composite tumbled 1.6 percent.
Pound Falls Against Majors
(RTTNews) - The British pound weakened against other major currencies in the Asian session on Thursday.
The pound fell to a 1-week low of 0.8350 against the euro, from yesterday's closing value of 0.8343.
Against the U.S. dollar, the yen and the Swiss franc, the pound edged down to 1.2920, 196.00 and 1.1991 from Wednesday's closing quotes of 1.2920, 197.35 and 1.1193, respectively.
If the pound extends its downtrend, it is likely to find support around 0.84 against the euro, 1.27 against the greenback, 193.00 against the yen and 1.10 against the franc.
CAC 40 Climbs On Earnings
(RTTNews) - French stocks climbed on Thursday as upbeat earnings results outweighed signs of weakness in the economy.
France's private sector shrank again in October as both manufacturers and service providers reported lower output, survey data from SP Global showed.
The flash composite output index unexpectedly fell to a nine-month low of 47.3 in October from 48.6 in the previous month. This was the lowest score since the start of this year.
Separately, France's manufacturing confidence weakened sharply in October, survey data from the statistical office INSEE showed.
The business climate index fell to 92 in October from 99 in September. The score deviated sharply from its long-term average of 100.
Moreover, excluding the COVID-19 pandemic period, this was the biggest monthly fall since November 2008.
The benchmark CAC 40 was up 55 points, or 0.7 percent, at 7,552 after losing half a percent in the previous session.
Birkin bag maker Hermes International rallied 2.4 percent after it reported an 11.3 percent rise in third-quarter sales.
Peer Kering climbed 2.1 percent after reporting higher third-quarter sales.
Orange added 1.9 percent. The telecommunications and digital service provider reported revenue of 9.995 billion euros for the third quarter, up 1.6 percent from the corresponding period a year ago, mainly helped by growth retail services.
Renault soared 7.3 percent as the carmaker reported an unexpected rise in quarterly revenues.
Caterer Sodexo advanced 5.5 percent after reporting higher than expected sales growth for the year through Aug. 3.
Consumer goods group Danone added 2.8 percent after Q3 organic revenue growth exceeded market expectations.
Tyre maker Michelin plunged 6.6 percent after cutting its annual sales volume forecast.
French Manufacturing Sentiment Deteriorates In October
(RTTNews) - France's manufacturing confidence weakened sharply in October, survey data from the statistical office INSEE showed on Thursday.
The business climate index fell to 92 in October from 99 in September. The score deviated sharply from its long-term average of 100.
Moreover, excluding the COVID-19 pandemic period, this was the biggest monthly fall since November 2008.
The balance of opinion on personal production expectations decreased sharply to -3 from +6 in the previous month. However, the one relative to general production prospects in the industry dropped only slightly to -12 from -11.
The balances of opinion associated with the level of order books, both overall and foreign, deteriorated and fell below their respective averages. They have reached their lowest level since the beginning of 2021.The overall order book balance registered -26 and foreign order books slid to -23.
The decline in the past production index doubled to -12 from -6. At the same time, the finished-goods inventory surged to 17 from 7.
Regarding the workforce size, the balance of opinion on its past change was stable at -3, while the one on its future change diminished to -2.
The balance of opinion relating to the expected trend in selling prices over the next three months increased anew to 6 from 2 and has returned above its average.
The economic uncertainty felt by business leaders clearly rebounded and has moved closer to its average. The corresponding index improved to 26 from 20.
Confidence among business managers from the main sectors, namely manufacturing, construction, services, retail and wholesale trade, weakened slightly in October. The overall business confidence index registered 97 compared to 98 in the previous month.
European Shares Seen Broadly Lower; FTSE 100 May See Firm Start
(RTTNews) - European stocks are seen opening broadly lower on Thursday even as U.K. markets may open on a firm note following declines for four straight sessions.
The U.K.'s new government will announce the Autumn Budget on 30 October. The Chancellor will be balancing spending cuts and tax increases with measures to stimulate growth.
Trading later in the day may be impacted by reaction to the latest U.S. economic data, including reports on weekly jobless claims, manufacturing and services PMI for October and new home sales for September.
Flash Purchasing Managers' survey data from the euro area and the U.K. are also awaited later in the day.
On the earnings front, EV maker Tesla reported robust third quarter profits and surprised analysts with a prediction for a 20-30 percent growth in sales next year.
Tech giant IBM's Q3 earnings beat expectations but revenue missed views. Likewise, Mattel, the manufacturer of Barbie and other popular toys, topped Wall Street estimates for quarterly profit but trimmed its annual sales forecast.
Asian stocks traded mixed, with Chinese and Hong Kong markets underperforming as tech shares fell on concerns the U.S.-China trade tensions may worsen.
Gold edged up slightly in Asian trading and was on track for a weekly gain due to investor anxiety over the impending U.S. election and heightened tensions in the Middle East.
A new national poll has indicated that former President Donald Trump was gaining an edge over Vice President Kamala Harris in the race to succeed President Biden in the White House. However, markets still expect a hotly contested race.
Oil prices rose more than 1 percent and were on track for a 3 percent weekly gain.
U.S. stocks fell overnight as rising bond yields and uncertainty about the outcome of the Nov. 5 presidential election triggered a sell-off in the world's largest technology companies.
The 10-year yield rose to its highest level in almost three months amid bets the Federal Reserve will take a more measured approach on rate cuts.
The Dow dropped 1 percent and the SP 500 declined 0.9 percent to extend losses into a third straight day, while the tech-heavy Nasdaq Composite tumbled 1.6 percent.
European stocks fell for a third straight session on Wednesday as investors reacted to mixed corporate earnings and looked ahead to the U.K. autumn budget.
The pan-European STOXX 600 dipped 0.3 percent. The German DAX slipped 0.2 percent, France's CAC 40 gave up half a percent and the U.K.'s FTSE 100 dipped 0.6 percent.
German Private Sector Downturn Eases In October
(RTTNews) - Germany's private sector downturn slowed marginally in October as output dropped at a slightly slower pace and business expectations picked up, the latest HCOB Purchasing Managers' survey compiled by SP Global showed Thursday.
The flash composite output index rose to 48.4 in October from September's seven-month low of 47.5. The score was also above forecast of 47.6.
Nevertheless, the reading remained below the 50.0 threshold separating growth from contraction, as has been the case in each month since July.
The services Purchasing Managers' Index hit a three-month high of 51.4, while the score was seen at 50.6, unchanged from September.
The manufacturing PMI climbed to a three-month high of 42.6 from 40.6 in the previous month. Economists had forecast the index to rise marginally to 40.7.
Data again highlighted weakness in underlying demand, with inflows of new business falling steeply and for the fifth straight month in October.
There was further a sharp decrease in outstanding business. As a result, firms reduced staffing. Employment decreased for the fifth consecutive month.
However, firms expecting a rise in activity over the coming year outnumbered those predicting a decline. Still business expectations remained well below the long-run series average.
On the price front, average prices charged were broadly unchanged in October. Meanwhile, average input costs increased at a moderate rate that was little-changed for September's 14-month low.
"GDP may stay flat for the whole year as forecasted by the International Monetary Fund in its latest projection, after a 0.3% decline in 2023," Hamburg Commercial Bank Chief Economist Cyrus de la Rubia said.
"Manufacturing will most probably continue to be in a recession in the fourth quarter, but it may start the next year on a better footing, although this assessment based on a one-month improvement should be taken with caution," de la Rubia added.
Australian Market Slightly Higher
(RTTNews) - The Australian market is trading slightly higher on Thursday after opening in the red, adding to the slight gains in the previous session, despite the broadly negative cues from Wall Street overnight. The benchmark SP/ASX 200 is moving up to stay above the 8,200 level, with gains in some energy and technology stocks partially offset by weakness in mining stocks.
The benchmark SP/ASX 200 Index is gaining 14.10 points or 0.17 percent to 8,230.10, after hitting a low of 8,183.80 and a high of 8,228.70 earlier. The broader All Ordinaries Index is up 5.00 points or 0.06 percent to 8,481.30. Australian stocks ended slightly higher on Wednesday.
Among major miners, Rio Tinto is edging down 0.3 percent, Fortescue Metals is declining almost 4 percent and BHP Group is losing almost 1 percent, while Mineral Resources is gaining more than 1 percent.
Oil stocks are mixed. Woodside Energy is edging down 0.5 percent, while Origin Energy is gaining almost 1 percent. Beach energy and Santos are flat.
In the tech space, Afterpay owner Block is losing more than 1 percent and WiseTech Global is declining almost 4 percent, while Xero and Zip are slipping almost 1 percent each. Appen is gaining almost 1 percent.
Among the big four banks, Commonwealth Bank and ANZ Banking are edging up 0.4 percent each, while Westpac and National Australia Bank are edging down 0.1 to 0.3 percent each.
Among gold miners, Evolution Mining, Gold Road Resources and Northern Star Resources are losing almost 2 percent each, while Resolute Mining is down 1.5 percent. Newmont is tumbling more than 8 percent.
In economic news, the manufacturing sector in Australia continued to contract in October, and at a slightly faster pace, the latest survey from Judo Bank revealed on Thursday with a manufacturing PMI score of 46.6. That's down from 46.7 in September, and it moves further beneath the boom-or-bust line of 50 that separates expansion from contraction. The survey also showed that the services PMI rose to 50.6 in October from 50.5 in September.
In the currency market, the Aussie dollar is trading at $0.664 on Thursday.
On Wall Street, stocks came under pressure early in the session on Wednesday and saw further downside over the course of the trading day. The major averages all moved notably lower, with the Dow and the SP 500 extending their losing streaks to three days.
The major averages climbed off their worst levels late in the session but remained firmly negative. The Dow slumped 409.94 points or 1.0 percent to 42,514.95, the Nasdaq tumbled 296.47 points or 1.6 percent to 18,276.65 and the SP 500 slid 53.78 points or 0.9 percent to 5,797.42.
The major European markets also ended the day lower. While the German DAX Index dipped by 0.2 percent, the French CAC 40 Index and the U.K.'s FTSE 100 Index fell by 0.5 percent and 0.6 percent, respectively.
Crude oil prices fell on Wednesday, weighed down by data showing a larger than expected increase in U.S. crude oil inventories last week, while a stronger dollar also weighed. West Texas Intermediate crude oil futures for December fell $0.97 or 1.35 percent at $70.77 a barrel.
DAX Gains On Economic Optimism
(RTTNews) - German stocks traded higher on Thursday after a business survey showed German business activity contracted less steeply than the previous month in October.
The HCOB Preliminary German Composite Output Index came in at 48.4 in October versus 47.5 in September.
The benchmark DAX was up 155 points, or 0.8 percent, at 19,532 after ending 0.2 percent lower the previous day.
In corporate news, Nivea maker Beiersdorf jumped 4.2 percent after reporting an increase in group sales for the first nine months of 2024.
Engine manufacturer MTU Aero Engines rose 1.3 percent after third-quarter earnings came in above expectations.
Symrise fell 2.6 percent after the fragrance, flavor and nutrition group posted Q3 sales in the reporting currency slightly below estimates.
Indonesia Bourse May Extend Wednesday's Losses
(RTTNews) - The Indonesia stock market on Wednesday ended the eight-day winning streak in which it had surged more than 300 points or 4.1 percent. The Jakarta Composite Index now rests just beneath the 7,790-point plateau and the losses may accelerate on Thursday.
The global forecast for the Asian markets is negative amid rising treasury yields and pessimism over the outlook for interest rates. The European and U.S. markets were down and the Asian bourses figure to follow that lead.
The JCI finished slightly lower on Wednesday following losses from the cement and resource stocks, while the financials were mixed and the energy producers were up.
For the day, the index eased 1.42 points or 0.1 percent to finish at 7,787.56.
Among the actives, Bank CIMB Niaga fell 0.26 percent, while Bank Danamon Indonesia climbed 1.15 percent, Bank Negara Indonesia collected 0.44 percent, Bank Central Asia improved 1.43 percent, Bank Rakyat Indonesia dropped 0.82 percent, Bank Maybank Indonesia slumped 0.86 percent, Indosat Ooredoo Hutchison rallied 2.07 percent, Indocement shed 0.32 percent, Semen Indonesia sank 0.70 percent, Indofood Sukses Makmur advanced 1.01 percent, United Tractors eased 0.18 percent, Astra International added 0.47 percent, Energi Mega Persada skyrocketed 18.75 percent, Astra Agro Lestari skidded 1.09 percent, Aneka Tambang retreated 1.20 percent, Jasa Marga dipped 0.21 percent, Vale Indonesia declined 1.41 percent, Timah plunged 3.60 percent, Bumi Resources surged 4.26 percent and Bank Mandiri was unchanged.
The lead from Wall Street is weak as the major averages opened lower on Wednesday and remained in the red throughout the trading day, albeit bouncing off session lows.
The Dow plunged 409.94 points or 0.96 percent to finish at 42,514.95, while the NASDAQ plummeted 296.47 points or 1.60 percent to close at 18,276.47 and the SP 500 dropped 53.78 points or 0.92 percent to end at 5,797.42.
The weakness on Wall Street came amid a continued increase by treasury yields, which have moved sharply higher over the past few sessions.
The yield on the benchmark ten-year note has risen to its highest level in almost three months amid worries the Federal Reserve will lower interest rates slower than previously anticipated.
While the Fed is still widely expected to lower interest rates by a quarter-point next month, there is increasing skepticism about another rate cut in December.
Oil prices fell on Wednesday, weighed down by data showing a larger than expected increase in U.S. crude oil inventories last week, while a stronger dollar also weighed. West Texas Intermediate crude oil futures for December fell $0.97 or 1.35 percent at $70.77 a barrel.
Major European Markets Close Slightly Higher
(RTTNews) - The major European markets closed slightly higher on Thursday with investors reacting positively to some quarterly earnings updates from a few major European and U.S. companies, and dovish comments from Bank of England Governor Andrew Bailey.
Data showing weak private sector activity in the Eurozone and the U.K. weighed a bit and limited markets' upside. Eurozone private sector activity shrank moderately in October on continuing contraction in manufacturing, flash survey data from SP Global showed.
The BoE Governor said that U.K. inflation is fading more rapidly than central bankers expected, boosting bets on another rate cut on Nov. 7.
"Disinflation is happening I think faster than we expected it to, but we have still genuine question marks about whether there have been some structural changes in the economy," he was quoted as saying at an event organized by the Institute of International Finance in Washington DC.
Separately, Reuters reported citing sources that ECB policymakers are debating whether rates have to go below neutral to stimulate the economy.
The pan European Stoxx 600 edged up 0.03%. The U.K.'s FTSE 100 and France's CAC 40 crept up 0.13% and 0.08%, respectively. Germany's DAX climbed 0.34%, while Switzerland's SMI closed higher by 0.21%.
Among other markets in Europe, Iceland, Netherlands, Norway and Turkiye closed higher.
Austria, Belgium, Denmark, Finland, Greece, Poland, Portugal, Russia, Spain and Sweden ended weak, while Ireland settled flat.
In the UK market, Barclays rallied about 4.2% after third-quarter profit beat expectations. Barclays reported a net profit of £1.6 billion for the third quarter, surpassing the £1.17 billion forecast and up 23% year-on-year. Its revenue of £6.5 billion also exceeded expectations,
Anglo American Plc shares gained nearly 3% after the company raised platinum and nickel production guidance.
Unilever closed up 3% as it reported slightly better-than-expected underlying quarterly sales.
London Stock Exchange Group, Standard Chartered, Natwest Group, ICG, Entain, RightMove, Scottish Mortgage, Melrose Industries, WPP, Auto Trader Group, BT Group and Fresnillo gained 1 to 3%.
Schrodders, SSE and Endeavour Mining lost 2.1 to 2.7%. United Utilities, Severn Trent, Reckitt Benckiser, BM European Value Retail, Croda International, IHG, BAE Systems, Bunzl, Berkeley Group Holdings, Persimmon, Hikma Pharmaceuticals, Rolls-Royce Holdings, Next and AstraZeneca Pharma closed down 1 to 2%.
In the German market, Puma, Porsche, Rheinmetall, Volkswagen, Siemens Energy and Deutsche Post gained 2 to 3.4%. Beiersdorf gained about 3% after reporting an increase in group sales for the first nine months of 2024.
Vonovia, Mercedes-Benz, MTU Aero Engines, Deutsche Telekom, Deutsche Boerse, Fresenius Medical Care, BMW, Daimler Truck Holding, Continental, Fresenius and Infineon gained 1 to 2%.
Symrise ended down 3%, after the fragrance, flavor and nutrition group posted Q3 sales in the reporting currency slightly below estimates.
Deutsche Bank closed lower by 2.4%. Merck and Sartorius also declined sharply.
In the French market, Renault rallied nearly 5% as the carmaker reported an unexpected rise in quarterly revenues. Danone gained about 2.75% after Q3 organic revenue growth exceeded market expectations.
LVMH gained about 2.5%. Hermes International moved higher after it reported an 11.3% rise in third-quarter sales. Kering gained in strength after reporting higher third-quarter sales.
Stellantis, Orange, Publicis Groupe, Thales and Bouygues also closed notably higher.
Edenred plunged more than 14%. Michelin lost about 8% after cutting its annual sales volume forecast.
Dassault Systemes, Carrefour and Veolia closed lower by 1.7 to 2.4%. Sanofi ended down by about 1%.
On the economic front, Eurozone private sector activity shrank moderately in October on continuing contraction in manufacturing, flash survey data from SP Global showed. The HCOB flash composite output index rose slightly to 49.7 in October from 49.6 a month ago. The reading was seen at 49.8. Business activity in the currency bloc dropped marginally for the second straight month.
The UK private sector activity expanded at the weakest pace in almost a year in October due to weak demand conditions amid heightened economic uncertainty. The flash composite output index dropped to 51.7 in October from 52.6 in September. Nonetheless, a reading above 50.0 suggests expansion in the private sector. The score was expected to remain stable at 52.6.
France's manufacturing confidence weakened sharply in October, survey data from the statistical office INSEE showed. The business climate index fell to 92 in October from 99 in September. The score deviated sharply from its long-term average of 100. Moreover, excluding the COVID-19 pandemic period, this was the biggest monthly fall since November 2008.
France's private sector shrank again in October as both manufacturers and service providers reported lower output, survey data from SP Global showed on Thursday. The flash composite output index unexpectedly fell to a nine-month low of 47.3 in October from 48.6 in the previous month. This was the lowest score since the start of this year. The expected level was 49.0.
Germany's private sector downturn slowed marginally in October as output dropped at a slightly slower pace and business expectations picked up, the latest HCOB Purchasing Managers' survey compiled by SP Global showed Thursday. The flash composite output index rose to 48.4 in October from September's seven-month low of 47.5. The score was also above forecast of 47.6.
European Shares Rise On Earnings Boost, Rate Cut Hopes
(RTTNews) - European stocks climbed on Thursday as strong earnings from a slew of companies and dovish comments from Bank of England (BoE) Governor Andrew Bailey offset disappointing business activity readings from the region.
The BoE Governor said that U.K. inflation is fading more rapidly than central bankers expected, boosting bets on another rate cut on Nov. 7.
"Disinflation is happening I think faster than we expected it to, but we have still genuine question marks about whether there have been some structural changes in the economy," he was quoted as saying at an event organized by the Institute of International Finance in Washington DC.
Separately, Reuters reported citing sources that ECB policymakers are debating whether rates have to go below neutral to stimulate the economy.
In economic releases, Eurozone private sector activity shrank moderately in October on continuing contraction in manufacturing, flash survey data from SP Global showed.
The HCOB flash composite output index rose slightly to 49.7 in October from 49.6 a month ago.
Elsewhere, the U.K. private sector activity expanded at the weakest pace in almost a year in October due to weak demand conditions amid heightened economic uncertainty, flash survey results published by SP Global revealed.
The flash composite output index dropped to 51.7 in October from 52.6 in September.
The pan-European STOXX 600 rose 0.6 percent to 521.86 after falling 0.3 percent on Wednesday. The German DAX jumped 0.7 percent, France's CAC 40 added 0.7 percent and the U.K.'s FTSE 100 surged 0.8 percent.
In corporate news, Indivior jumped 9 percent after the British addiction treatment specialist reported a strong third-quarter performance.
Fund manager Abrdn plunged 8 percent as it reported deeper than expected outflows of client funds in the third quarter.
Essentra gained about 1 percent. The essential components manufacturer said that FY24 adjusted operating profits would be in line with market expectations.
GSK was also up 1 percent after announcing new positive data for RSV vaccine, Arexvy in younger adults.
Distribution and outsourcing firm Bunzl fell 2.4 percent despite reiterating its full-year guidance.
Lender Barclays soared nearly 4 percent after third-quarter profit beat expectations.
Global miner Anglo American surged 4.1 percent after raising platinum and nickel production guidance.
Consumer goods giant Unilever gained 3.9 percent as it reported slightly better-than-expected underlying quarterly sales.
Birkin bag maker Hermes International rallied 1.8 percent in Paris after it reported an 11.3 percent rise in third-quarter sales.
Peer Kering climbed 1.1 percent after reporting higher third-quarter sales.
Orange added 1.7 percent. The telecommunications and digital service provider reported revenue of 9.995 billion euros for the third quarter, up 1.6 percent from the corresponding period a year ago, mainly helped by growth retail services.
Renault soared 6.5 percent as the carmaker reported an unexpected rise in quarterly revenues.
Caterer Sodexo advanced 5.2 percent after reporting higher than expected sales growth for the year through Aug. 3.
Consumer goods group Danone added 2.3 percent after Q3 organic revenue growth exceeded market expectations.
Tyre maker Michelin plunged 7 percent after cutting its annual sales volume forecast.
Nivea maker Beiersdorf jumped 3.4 percent after reporting an increase in group sales for the first nine months of 2024.
Symrise fell 2.2 percent after the fragrance, flavor and nutrition group posted Q3 sales in the reporting currency slightly below estimates.
FTSE 100 Rallies On Rate Cut Hopes
(RTTNews) - U.K. stocks rose notably on Thursday after Bank of England (BoE) Governor Andrew Bailey said that U.K. inflation is fading more rapidly than central bankers expected, boosting bets on another rate cut on Nov. 7.
"Disinflation is happening I think faster than we expected it to, but we have still genuine question marks about whether there have been some structural changes in the economy," he was quoted as saying at an event organized by the Institute of International Finance in Washington DC.
Meanwhile, investors shrugged of the results of a survey that showed U.K. business growth hit a 11-month low in October.
The benchmark FTSE 100 was up 63 points, or 0.8 percent, at 8,321 after falling 0.6 percent the previous day.
Indivior jumped 9 percent after the addiction treatment specialist reported a strong third-quarter performance.
Fund manager Abrdn plunged 8 percent as it reported deeper than expected outflows of client funds in the third quarter.
Essentra gained about 1 percent. The essential components manufacturer said that FY24 adjusted operating profits would be in line with market expectations.
GSK was also up 1 percent after announcing new positive data for RSV vaccine, Arexvy in younger adults.
Distribution and outsourcing firm Bunzl fell 2.4 percent despite reiterating its full-year guidance.
Lender Barclays soared nearly 4 percent after third-quarter profit beat expectations.
Global miner Anglo American surged 4.1 percent after raising platinum and nickel production guidance.
Consumer goods giant Unilever gained 3.9 percent as it reported slightly better-than-expected underlying quarterly sales.
Eurozone Private Sector Activity Shrinks
(RTTNews) - Eurozone private sector activity shrank moderately in October on continuing contraction in manufacturing, flash survey data from SP Global showed on Thursday.
The HCOB flash composite output index rose slightly to 49.7 in October from 49.6 a month ago. The reading was seen at 49.8.
Business activity in the currency bloc dropped marginally for the second straight month.
The marginal reduction in overall business activity masked a continued divergence between the manufacturing and services sectors.
The flash services Purchasing Managers' Index unexpectedly fell to 51.2 from 51.4 a month ago. The score was seen at 51.5.
The manufacturing PMI improved to a five-month high of 45.9 from 45.0 in the prior month. The score was seen at 45.1.
Output was scaled back in response to a weakening demand environment, with new orders down for the fifth straight month.
Companies responded to lower workloads by lowering employment to the largest degree in almost four years, while business confidence dropped to an 11- month low.
On the price front, input costs increased at the slowest pace since November 2020 and output charge inflation similarly eased to a 44-month low.
"The eurozone is stuck in a bit of a rut, with the economy contracting marginally for the second month running," said Hamburg Commercial Bank Chief Economist Cyrus de la Rubia said.
The European Central Bank is likely to cut key interest rates by just 25 basis points in December, rather than the 50 basis points some have been talking about, the economist added.
At country level, the deterioration of the situation in France was met by a slight moderation in the decline in Germany. The rest of the eurozone actually saw output increase at the fastest pace in four months.
France's private sector continued to shrink in October as both manufacturers and service providers reported lower output.
The flash composite output index unexpectedly fell to a nine-month low of 47.3 from 48.6 in the previous month. This was the lowest score since the start of this year. The expected level was 49.0.
The manufacturing PMI posted 44.5 compared to 44.6 in the previous month. The score was seen at 44.9.
The flash services PMI hit a seven-month low of 48.3, down from 49.6 in the prior month and also remained below economists' forecast of 49.8.
Germany's private sector downturn slowed marginally in October as output dropped at a slightly slower pace and business expectations picked up. The flash composite output index rose to 48.4 in October from September's seven-month low of 47.5. The score was also above forecast of 47.6.
The services PMI hit a three-month high of 51.4, while the score was seen at 50.6, unchanged from September.
The manufacturing PMI climbed to a three-month high of 42.6 from 40.6 in the previous month. Economists had forecast the index to rise marginally to 40.7.
