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CPSC Recalls: Textron ROVs, Colsen Fire Pits, Anker Power Banks, Oliva Cigar Lighters
(RTTNews) - The U.S. Consumer Product safety Commission or CPSC has announced recalls including Textron Specialized Vehicles' Recreational Off Highway vehicles, Colsen Fire Pits LLC's Fire Pits, Anker Innovations Ltd.'s Anker Power Banks, and Oliva Cigars Co. Inc.'s Cigar Lighters, citing various reasons.
In most of the recalls, consumers are urged to immediately stop using the recalled product, and contact the respective firm for either a free repair or replacement, depending on each product.
Textron ROVs
Augusta, Georgia-based Textron has expanded its recall of Arctic Cat and Tracker Side by Side Recreational Off Highway vehicles or ROVs, citing risk of crash.
The recall involves all model years 2022, 2023 and 2024 Arctic Cat Prowler Pro and Pro Crew and all model year 2022, 2023 and 2024 Tracker Off Road 800SX and 800SX Crew Side by Side ROVs.
About 7,000 units have been called back in the U.S., and about 700 units in Canada. Some of these ROVs were previously recalled on November 2023.
The two-seat and four-seat vehicles were sold in various colors. The Arctic Cats have a "Prowler Pro" decal on the front hood and the Tracker Off Road vehicles have an "800SX" decal just outside the driver and passage doors.
The impacted vehicles were manufactured domestically, and The Arctic Cat Prowler Pro and Pro Crew was sold at Arctic Cat dealers nationwide from May 2022 through August 2023 for between $14,400 and $21,000. The Tracker Off Road 800SX and 800SX Crew was sold at Bass Pro Shops, Cabela's and Tracker dealers nationwide from March 2022 through August 2024 for between $14,400 and $21,000.
According to the agency, the vehicle can move when on an incline and "park" is displayed on the digital dash. This can allow the vehicle to roll away, posing a crash hazard.
The recall was initiated after the firm received 12 reports of vehicles moving while in the park position. However, no injuries have been reported so far related to the recalled vehicles.
Consumers are urged to immediately stop using the recalled vehicles and contact Textron Specialized Vehicles to schedule a free repair.
Colsen Fire Pits
Miami, Florida-based Colsen Fire Pits has called back about 89,500 units of Colsen-branded fire pits due to risk of serious burn injury from flame jetting and fire spreading hazards. The recall also includes Colsen-branded fire pits previously manufactured by another company.
Colsen-branded indoor/outdoor tabletop fire pits, which consist of a concrete, open reservoir intended to contain burning liquid alcohol, have been called back. There are seven models of Colsen-branded fire pits, sold with a flame extinguisher. They are in gray or black in color and are round, rectangular, hexagonal, square, or skull-shaped.
The products were made in Florida and sold online at the company site, Amazon.com, Wayfair, Walmart, Sharper Image, FlipShop, Grommet, Meta, TikTok from January 2020 to July 2024 for between $40 and $90.
The CPSC noted that alcohol flames can be invisible, and when refilling the fire pit reservoir, it could lead to flame jetting, a serious event as fire could flash back to the alcohol container and suddenly propels burning alcohol out of the container and onto people nearby.
The recall was initiated after CPSC received 31 reports of flame jetting and flames escaping from the concrete container, resulting in 19 burn injuries. Two incidents resulted in third degree burns to more than 40 percent of victims' bodies. Meanwhile, at least six incidents have involved surgery, prolonged medical treatment, admission to burn treatment facilities, short-term disability, loss of function, physical therapy, or permanent disfigurement.
Consumers are asked to immediately stop using the recalled fire pits and dispose of them. They are also asked not to resell or donate them as its a violation of federal law.
The firm stopped selling Colsen-branded fire pits less than one year after it acquired the product business and does not have the financial resources to offer a remedy to consumers.
Anker Power Banks
Hong Kong, China-based Anker Innovations has called back about 2,100 units of Anker Power Banks due to risk of fire and burn. The recall involves Anker Power Banks with model numbers A1642, A1647 and A1652.
They were manufactured in China, and sold at Best Buy, Target, NEXT TRADING SAS, C2 Wireless and K Spider Inc. stores nationwide, and online from January 2024 through July 2024 for between $40 and $60.
According to the agency, the lithium-ion battery in the power banks can overheat, posing fire and burn hazards.
The firm has received 28 reports of incidents of the batteries overheating, exploding, and the power bank catching on fire. Two injuries included first and second degree burns to the consumer's hands.
Consumers are asked to stop using the recalled power banks and contact Anker Innovations for instructions on receiving a free replacement power bank.
Oliva Cigar Slim Lighters
Miami Lakes, Florida-based Oliva Cigars is calling back around 60,000 units of Cigar Slim Lighters due to missing child safety feature, posing burn and fire hazards.
The recall involves Oliva Cigar Nub, Oliva, Serie V and Cain branded cigar lighters given away as a promotional item for free. They are white, brown or red in color.
The impacted products were made in China and given away as promotional items by wholesalers and retailers in their marketing campaigns and in cigar lounges from August 2022 through July 2024.
The CPSC noted that the recalled lighters do not have child-resistant mechanisms and were not tested to the federal regulatory requirements for child resistance. Young children under 5 years of age could ignite the lighters, posing fire and burn hazards.
However, no incidents or injuries have been reported so far related to the recalled products.
Consumers are asked to stop using and dispose of the recalled promotional cigar lighters.
Bay Street Likely To Open Higher
(RTTNews) - The Canadian market is seen opening on a positive note Friday morning, with materials shares set for some upside thanks to firm metal prices. With the economic calendar blank and no big earnings updates due for the day, trading is likely to remain somewhat lackluster.
The Canadian market climbed to a fresh record high on Thursday with stocks from materials and energy sectors moving higher on firm commodity prices. A rate cut by the European Central Bank and expectations of interest rate cuts by the Federal Reserve and the Bank of Canada aided sentiment.
Data showing an unexpected increase in U.S. retail sales, and a drop in U.S. jobless claims contributed as well to the positive mood in the market.
The benchmark SP/TSX Composite Index, which surged to 24,561.20, settled with a gain of 129.28 points or 0.53% at 24,690.48.
Asian stocks ended mixed on Friday with a slew of Chinese data backing calls for more stimulus. Japan's key inflation gauge slowed in September for the first time in five months, but an index excluding the effect of fuel held steady, keeping the Bank of Japan on track to raise interest rates further.
European stocks are broadly higher with investors continuing to digest the European Central Bank's interest rate move, and reacting to the latest batch of economic data and earnings updates.
In commodities, West Texas Intermediate Crude oil futures are down marginally at $70.65 a barrel.
Gold futures are gaining $18.20 or 0.67% at $2,725.70 an ounce, while Silver futures are up $0.521 or 1.63% at $32.295 an ounce.
Pound Rises Against Majors
(RTTNews) - The British pound strengthened against other major currencies in the European session on Friday.
The pound rose to a 2-1/2-year high of 0.8295 against the euro and nearly a 3-month high of 196.06 against the yen, from early lows of 0.8328 and 195.04, respectively.
Against the Swiss franc and the U.S. dollar, the pound advanced to nearly a 3-week high of 1.1320 and a 2-day high of 1.3072 from early lows of 1.1269 and 1.3011, respectively.
If the pound extends its uptrend, it is likely to find resistance around 0.81 against the euro, 200.00 against the yen, 1.15 against the franc and 1.35 against the greenback.
FTSE 100 Slips Into Red On Budget Fears
(RTTNews) - U.K. stocks were moving lower on Friday and the pound euro (GBP/EUR) exchange rate held near a two-and-a-half year high after data showed U.K. retail sales logged an unexpected growth in September on higher sales of technology products.
Retail sales grew 0.3 percent on month in September, confounding expectations for a 0.3 percent fall. This marked the third consecutive increase.
The benchmark FTSE 100 was down 25 points, or 0.3 percent, at 8,360 in the lead-up to Chancellor Rachel Reeves's first budget on October 30, where tax increases and spending cuts amounting to £40 billion are expected.
Luxury brand Burberry jumped 4 percent after the release of retail sales data.
British American Tobacco shares tumbled nearly 3 percent after the company said it aims to settle ongoing lawsuits in Canada through a court-mediated plan.
Miners Anglo American, Antofagasta and Glencore surged 2-3 percent after China's major commercial banks cut their deposit rates for a second time this year and the country's central bank officially launched a swap facility aimed at boosting the equity market.
China Economy Logs Weakest Growth Since Early 2023
(RTTNews) - China's economy grew at the slowest pace in more than a year in the third quarter despite an improvement in retail sales as the property market continued to be a major drag on growth.
Gross domestic product expanded 4.6 percent on a yearly basis in the third quarter, data from the National Bureau of Statistics showed on Friday. This was the weakest growth since the first quarter of 2023.
The rate matched expectations but came in slightly weaker than the 4.7 percent growth posted in the second quarter.
Quarter-on-quarter, GDP climbed 0.9 percent, which was slower than the expected growth of 1.0 percent.
In January to September period, the economy logged an annual growth of 4.8 percent compared to the government's full year target of around 5 percent.
In September, industrial production surged 5.4 percent after rising 4.5 percent a month ago. This was also better than economists' forecast of 4.6 percent.
Retail sales growth improved to 3.2 percent from 2.1 percent in the previous month. Sales were forecast to gain 2.5 percent.
In the three months to September, fixed asset investment growth came in at 3.4 percent, the same as in preceding period.
The property market continued to be the biggest drag on growth. Property investment contracted 10.1 percent from a year ago.
The unemployment rate fell to 5.1 percent in September, while it was forecast to remain unchanged at 5.3 percent.
Capital Economics' economist Zichun Huang said a boost from the fiscal stimulus should help narrowly meet the annual growth target this year and support activity in the coming quarter.
However, this won't stop growth from slowing again by the end of next year, the economist noted.
Earlier today, China's major state-owned commercial banks reduced its deposit interest rates by 25 basis points.
Recently, Beijing unveiled a slew of fiscal stimulus measures and loosened restrictions on home-buying. The People's Bank of China also reduced major interest rates and offered more funds to boost lending.
Markets are awaiting detailed plan of fiscal stimulus measures announced last Saturday. Although the government didn't provide specific figures regarding the size of stimulus, it suggested an expansion of the budget deficit next year.
European Shares Mixed As Investors Look To UK Budget
(RTTNews) - European shares were mixed on Friday, a day after the European Central Bank (ECB) cut its deposit rate by 25 basis points to 3.25 percent, citing sluggish economic growth and easing inflation.
According to its quarterly survey of professional forecasters, the ECB sees inflation falling to 1.9 percent in 2025 from a previous forecast of 2 percent. The projections for 2024 and 2026 were kept unchanged at 2.4 percent and 1.9 percent.
The pan-European STOXX 600 was up 0.2 percent at 524.98 after climbing 0.8 percent in the previous session.
The German DAX rose 0.2 percent and France's CAC 40 added 0.4 percent while the U.K.'s FTSE 100 was down 0.2 percent in the lead-up to Chancellor Rachel Reeves's first budget on October 30, where tax increases and spending cuts amounting to £40 billion are expected.
In corporate news, Swedish truck maker Volvo rose about 2 percent despite posting a bigger-than-expected drop in quarterly adjusted earnings and forecasting stagnant demand next year.
British luxury brand Burberry jumped 4 percent in London after official data showed U.K. retail sales logged an unexpected growth in September on higher sales of technology products.
Retail sales grew 0.3 percent on month in September, confounding expectations for a 0.3 percent fall. This marked the third consecutive increase.
British American Tobacco shares tumbled nearly 3 percent after the company said it aims to settle ongoing lawsuits in Canada through a court-mediated plan.
Miners Anglo American, Antofagasta and Glencore surged 2-3 percent after China's major commercial banks cut their deposit rates for a second time this year and the country's central bank officially launched a swap facility aimed at boosting the equity market.
Stratec SE shares fell more than 2 percent. The German maker of analyzer and automation systems for In-Vitro-Diagnostic reported that preliminary consolidated sales for the first nine months of 2024 declined to 176.3 million euros from 187.7 million euros last year.
Taiwan Stock Market May Extend Its Gains
(RTTNews) - The Taiwan stock market has climbed higher in two straight sessions, advancing more than 475 points or 2.1 percent along the way. The Taiwan Stock Exchange now rests just beneath the 23,490-point plateau and it's tipped to open in the green again on Monday.
The global forecast for the Asian market is upbeat on generally upbeat earnings news. The European markets were mixed and the U.S. bourses were up and the Asian markets figure to also move higher.
The TSE finished sharply higher on Friday following gains from the financial shares and mixed performances from the technology and plastics companies.
For the day, the index jumped 433.43 points or 1.88 percent to finish at 23,487.27 after trading between 23,378.36 and 23,713.70.
Among the actives, Cathay Financial gained 1.75 percent, while Mega Financial collected 0.89 percent, CTBC Financial climbed 1.10 percent, First Financial improved 1.66 percent, Fubon Financial strengthened 1.75 percent, E Sun Financial jumped 1.95 percent, Taiwan Semiconductor Manufacturing Company surged 4.83 percent, United Microelectronics Corporation stumbled 2.32 percent, Hon Hai Precision shed 0.48 percent, Largan Precision plummeted 8.64 percent, Catcher Technology rallied 1.66 percent, MediaTek accelerated 2.35 percent, Delta Electronics spiked 2.55 percent, Formosa Plastics fell 0.41 percent, Nan Ya Plastics added 0.82 percent, Asia Cement advanced 1.28 percent and Novatek Microelectronics was unchanged.
The lead from Wall Street is positive as the major averages opened mixed on Friday but moved steadily higher as the day progressed, ending near session highs.
The Dow added 36.86 points or 0.09 percent to finish at a fresh record of 43,275.91, while the NASDAQ climbed 115.94 points or 0.63 percent to end at 18,489.55 and the SP 500 rose 23.20 points or 0.40 percent to close at 5,864.67. For the week, the Dow added 1.0 percent, the SP gained 0.9 percent and the NASDAQ rose 0.8 percent.
The NASDAQ benefitted from a sharp increase by shares of Netflix (NFLX), as the streaming giant soared by 11.1 percent to a record closing high after the company reported Q3 results that beat estimates on both the top and bottom lines.
Meanwhile, a steep drop by shares of American Express (AXP) limited the upside for the Dow, with the credit card giant tumbling by 3.2 percent after the company reported Q3 earnings that beat expectations but weaker than expected revenues.
In U.S. economic news, the Commerce Department reported a modest pullback by housing starts and building permits in September.
Oil prices fell on Friday following downward revisions in oil demand forecast from OPEC and the International Energy Agency. West Texas Intermediate crude oil futures for November sank $1.45 or 2.05 percent at $69.22 a barrel. WTI crude futures fell more than 8 percent in the week.
Closer to home, Taiwan will provide September figures for export orders later today; in August, orders were up 9.1 percent on year.
Wall Street Likely To See Mixed Open; Earnings In Focus
(RTTNews) - Futures point to a mixed start for stocks on Wall Street Friday morning. With the economic calendar rather light, investors are likely to focus on earnings.
The Dow futures are down 0.14 percent, while the SP futures and the Nasdaq futures are up 0.21 percent, and 0.52 percent, respectively.
American Express said that its bottomline came in at $2.507 billion, or $3.49 per share, in the third quarter, compared with $2.451 billion, or $3.30 per share in the corresponding quarter last year. The company has increased its full-year EPS guidance to $13.75-$14.01, up from $13.30-$13.80 previously.
Procter Gamble reported first-quarter earnings of $3.959 billion, or $1.61 per share, compared with $4.521 billion, or $1.83 per share in the year-ago quarter.
For fiscal 2025, PG expects earnings per share to grow 10 to 12 percent from the base fiscal 2024 earnings of $6.02 per share, implying earnings in the range of $6.62 to $6.74 per share.
Netflix Inc. (NFLX) announced after trading hours on Thursday that its net income for the third quarter rose to $2.36 billion or $5.40 per share from $1.68 billion or $3.73 per share in the prior year. Analysts polled by Thomson Reuters expected the company to report earnings of $5.12 per share for the third quarter.
On the economic front, data on U.S. housing starts and building permits for the month of September are due at 8:30 AM ET.
Stocks closed higher on Wall Street yesterday. The Dow ended the day up 161.35 points or 0.4 percent at 43,239.05, while the Nasdaq crept up 6.53 points or less than a tenth of a percent to 18,373.61 and the SP 500 edged down 1.00 point or less than a tenth of a percent to 5,841.47.
Strength among semiconductor stocks supported the markets for much of the session before a late-day pullback, although the Philadelphia Semiconductor Index still ended the day up by 1.0 percent.
Largely upbeat U.S. economic data, including a Commerce Department report showing retail sales increased by slightly more than expected in the month of September, aided sentiment.
In overseas trading, Asian stocks turned in a mixed performance on Friday as a slew of Chinese data backed calls for more stimulus. Japan's key inflation gauge slowed in September for the first time in five months, but an index excluding the effect of fuel held steady, keeping the Bank of Japan on track to raise interest rates further.
European stocks are broadly higher with investors continuing to digest the European Central Bank's interest rate move, and reacting to the latest batch of economic data and earnings updates.
In commodities, West Texas Intermediate Crude oil futures are down $0.25 or 0.35 percent at $70.42 a barrel. Gold futures are gaining $17.90 or 0.68 percent at $2,725.40 an ounce.
In currencies, the dollar index is down 0.19 percent at 103.63. The dollar is trading at $1.0848 against the Euro. Against the Japanese currency, the dollar is down, fetching 150.01 yen a unit, compared with 150.21 yen on Thursday.
Rebound Anticipated For Thai Stock Market
(RTTNews) - The Thai stock market on Friday snapped the two-day winning streak in which it had gained almost 30 points or 2.1 percent. The Stock Exchange of Thailand now rests just beneath the 1,490-point plateau although it's expected to bounce higher again on Monday.
The global forecast for the Asian market is upbeat on generally upbeat earnings news. The European markets were mixed and the U.S. bourses were up and the Asian markets figure to also move higher.
The SET finished modestly lower on Friday following losses from the finance, industry, resource and technology sectors.
For the day, the index lost 5.20 points or 0.35 percent to finish at 1,489.82 after trading between 1,488.61 and 1,506.82. Volume was 27.006 billion shares worth 64.683 billion baht. There were 349 decliners and 127 gainers, with 183 stocks finishing unchanged.
Among the actives, Advanced Info plummeted 5.05 percent, while Thailand Airport improved 0.79 percent, Asset World lost 0.53 percent, Banpu sank 0.78 percent, Bangkok Bank retreated 1.28 percent, Bangkok Dusit Medical fell 0.85 percent, Bangkok Expressway dropped 1.20 percent, B. Grimm tanked 2.06 percent, BTS Group skidded 1.31 percent, CP All Public rallied 2.66 percent, Charoen Pokphand Foods advanced 0.98 percent, Energy Absolute declined 2.33 percent, Gulf lost 1.80 percent, Kasikornbank stumbled 1.62 percent, Krung Thai Bank collected 0.47 percent, Krung Thai Card shed 0.51 percent, PTT Oil Retail skidded 1.19 percent, PTT Global Chemical tumbled 1.92 percent, SCG Packaging surrendered 1.85 percent, Siam Commercial Bank dropped 0.90 percent, Siam Concrete climbed 0.95 percent, Thai Oil gained 0.53 percent, True Corporation declined 1.65 percent, TTB Bank plunged 3.17 percent and PTT and PTT Exploration and Production were unchanged.
The lead from Wall Street is positive as the major averages opened mixed on Friday but moved steadily higher as the day progressed, ending near session highs.
The Dow added 36.86 points or 0.09 percent to finish at a fresh record of 43,275.91, while the NASDAQ climbed 115.94 points or 0.63 percent to end at 18,489.55 and the SP 500 rose 23.20 points or 0.40 percent to close at 5,864.67. For the week, the Dow added 1.0 percent, the SP gained 0.9 percent and the NASDAQ rose 0.8 percent.
The NASDAQ benefitted from a sharp increase by shares of Netflix (NFLX), as the streaming giant soared by 11.1 percent to a record closing high after the company reported Q3 results that beat estimates on both the top and bottom lines.
Meanwhile, a steep drop by shares of American Express (AXP) limited the upside for the Dow, with the credit card giant tumbling by 3.2 percent after the company reported Q3 earnings that beat expectations but weaker than expected revenues.
In U.S. economic news, the Commerce Department reported a modest pullback by housing starts and building permits in September.
Oil prices fell on Friday following downward revisions in oil demand forecast from OPEC and the International Energy Agency. West Texas Intermediate crude oil futures for November sank $1.45 or 2.05 percent at $69.22 a barrel. WTI crude futures fell more than 8 percent in the week.
U.S. Housing Starts Pull Back Modestly As Multi-Family Starts Extend Plunge
(RTTNews) - After reporting a sharp increase in new residential construction in the U.S. in the previous month, the Commerce Department released a report on Friday showing a modest pullback by housing starts in the month of September.
The Commerce Department said housing starts fell by 0.5 percent to an annual rate of 1.354 million in September after spiking by 7.8 percent to a revised rate of 1.361 million in August.
Economists had expected housing starts to dip by 0.4 percent to an annual rate of 1.350 million from the 1.356 million originally reported for the previous month.
The modest pullback by housing starts came as another steep drop by multi-family starts more than offset a jump by single-family starts.
Multi-family starts plunged by 9.4 percent to a rate of 327,000 in September after plummeting by 10.0 percent to a rate of 361,000 in August.
Meanwhile, single-family starts shot up by 2.7 percent to a rate of 1.027 million in September after soaring by 16.1 percent to a rate of 1.000 million in August.
The report also showed a sharp pullback by building permits, which tumbled by 2.9 percent to an annual rate of 1.428 million in September after surging by 4.6 percent to a revised rate of 1.470 million in August.
Building permits, an indicator of future housing demand, were expected to slump by 1.0 percent to an annual rate of 1.460 million from the 1.475 million originally reported for the previous month.
Multi-family permits dove by 9.0 percent to a rate of 458,000, more than offsetting a 0.3 percent uptick by single-family permits to a rate of 970,000.
"The paces of both permits and starts (particularly single-family starts) are strong relative to the somewhat subdued builder sentiment readings, but they align well with the movement in mortgage rates," said Nationwide Economist Daniel Vielhaber.
"As such, the pace home construction should remain solid through the end of the year," he added. "At worst, it is not expected to fall back to the recent lows seen over the summer."
On Thursday, the National Association of Home Builders released a separate report showing homebuilder confidence in the U.S. improved by slightly more than expected in the month of October.
The report said the NAHB/Wells Fargo Housing Market Index climbed to 43 in October after rising to 41 in September. Economists had expected the index to inch up to 42.
Australian Market Notably Higher
(RTTNews) - The Australian stock market is currently trading notably higher on Monday, reversing the losses in the previous session, following the broadly positive cues from Wall Street on Friday. The benchmark SP/ASX 200 index is moving above the 8,300.00 level, with gains across most sectors led by gold miner stock and technology stocks.
The benchmark SP/ASX 200 Index is gaining 52.20 points or 0.63 percent to 8,335.40, after touching of 8,349.70 earlier. The broader All Ordinaries Index is up 47.00 points or 0.55 percent to 8,598.20. Australian stocks closed significantly lower on Friday.
Among the major miners, BHP Group, Fortescue Metals and Rio Tinto are gaining more than 1 percent, Mineral dived almost 11 percent as the board said it had "full confidence" in managing director Chris Ellison following an investigation by The Australian Financial Review that uncovered how he allegedly evaded tax for years.
Oil stocks are mostly higher. Origin Energy is edging up 0.1 percent, Beach energy is gaining more than 2 percent and Santos is adding more than 1 percent. Woodside Energy is up almost 1 percent.
Among tech stocks, Afterpay owner Block is gaining more than 2 percent, Xero is adding more than 1 percent and Zip is edging up 0.4 percent, while Appen is declining almost 4 percent and WiseTech Global is tumbling more than 11 percent after its board initiated a review of allegations against founder and chief executive Richard White by a sexual partner, which ended up in him paying her millions of dollars to settle the matter.
Gold miners are mostly higher. Evolution Mining is gaining 3.5 percent, Resolute Mining is advancing almost 4 percent and Gold Road Resources rising more than 3 percent, while Northern Star Resources and Newmont are adding almost 2 percent each.
Among the big four banks, Commonwealth Bank is gaining almost 1 percent, while National Australia Bank, ANZ Banking and Westpac are edging up 0.1 to 0.5 percent each.
In the currency market, the Aussie dollar is trading at $0.671 on Monday.
On Wall Street, stocks moved mostly higher during trading on Friday after ending the previous session little changed. The tech-heavy Nasdaq led the charge, while the Dow ended the day modestly higher at a new record closing high.
The Nasdaq climbed 115.94 points or 0.6 percent to 18,489.55 and the SP 500 rose 23.20 points or 0.4 percent to a new record closing high of 5,864.67. The narrower Dow recovered from an initial pullback to end the day up by 36.86 points or 0.1 percent at 43,275.91.
Meanwhile, the major European markets turned in a mixed performance on the day. While the U.K.'s FTSE 100 Index fell by 0.3 percent, the French CAC 40 Index and German DAX Index both climbed by 0.4 percent.
Crude oil prices fell on Friday following downward revisions in oil demand forecast from OPEC and the International Energy Agency. West Texas Intermediate crude oil futures for November sank $1.45 or 2.05 percent at $69.22 a barrel. WTI crude futures fell more than 8 percent in the week.
Major European Markets Close Higher
(RTTNews) - European stocks closed higher on Friday and the major markets in the region posted second straight week of gains, as investors continued to cheer the European Central Bank's rate cut decision, and remained optimistic about more rate cuts by several other central banks.
Markets also reacted to positive economic data from China, and digested the latest batch of earnings updates and other corporate news.
On Thursday, the European Central Bank (ECB) cut its deposit rate by 25 basis points to 3.25%, citing sluggish economic growth and easing inflation.
According to its quarterly survey of professional forecasters, the ECB sees inflation falling to 1.9% in 2025 from a previous forecast of 2%. The projections for 2024 and 2026 were kept unchanged at 2.4% and 1.9%, respectively.
The pan European Stoxx 600 gained 0.21%. Germany's DAX and France's CAC 40 climbed 0.38% and 0.39%, respectively. The U.K.'s FTSE 100 closed down 0.32%, while Switzerland's SMI gained 0.18%.
Other markets in Europe closed on a mixed note. Austria, Finland, Greece, Ireland, Netherlands, Poland, Spain and Sweden ended higher.
Belgium, Denmark, Iceland, Norway, Portugal, Russia and Turkiye closed weak.
In the UK market, shares of mining companies moved higher after China's major commercial banks cut their deposit rates for a second time this year and the country's central bank officially launched a swap facility aimed at boosting the equity market.
Prudential gained about 3.25% and Fresnillo climbed nearly 3%. Anglo American Plc, Antofagasta, Glencore, Endeavour Mining, Whitbread, Centrica and Rio Tinto gained 1 to 2.1%.
British luxury brand Burberry jumped 3.5% after official data showed U.K. retail sales logged an unexpected growth in September on higher sales of technology products.
Smith (DS) ended down 3.4%. British American Tobacco closed lower by about 3.2% after the company said it aims to settle ongoing lawsuits in Canada through a court-mediated plan.
Vistry Group, Next, Taylor Wimpey, LondonMetric Property, Persimmon, Melrose Industries, Segro, British Land, SSE, GSK, BT Group, Marks Spencer, Relx, Associated British Foods, Barratt Developments and Barclays Group lost 1 to 2.3%.
In the German market, Daimler Truck Holding rallied more than 7%. Continental gained nearly 3.5%. BASF, Fresenius Medical Care, Adidas, Porsche, Siemens Healthineers and Volkswagen climbed 1 to 1.6%.
Zalando, Commerzbank, MTU Aero ENgines, E.ON and Merck lost 0.6 to 1.7%.
In the French market, Kering climbed nearly 3.5%. LVMH, Societe Generale, Stellantis, Teleperformance, ArcelorMittal, Dassault Systemes, Pernod Ricard, Hermes International, Michelin and STMicroElectronics gained 1 to 2.3%.
Data from the Office for National Statistics Showed UK retail sales logged an unexpected growth in September on higher sales of technology products. The data said retail sales grew 0.3% on month in September, confounding expectations for a 0.3% fall. This marked the third consecutive increase. Sales had increased 1% in August and 0.8% in July.
The euro area current account surplus declined to a five-month low in August, to EUR 31 billion from EUR 41 billion in the previous month, the European Central Bank said. This was the lowest surplus since March. The expected level was EUR 42 billion.
Eurozone construction output grew marginally by 0.1% in August, reversing July's 0.5% decrease, data from Eurostat showed.
Eurozone inflation is expected to ease slightly more than previously estimated in 2025, according to the Survey of Professional Forecasters, released by the European Central Bank.
Headline inflation for 2024 was expected at 2.4%, unchanged from the previous outlook. The projection for next year was lowered to 1.9% from 2%. At the same time, inflation expectation for 2026 was retained at 1.9%. Longer-term HICP inflation expectations were also unchanged at 2%.
Real economic outlook for this year was maintained at 0.7%. Meanwhile, the outlook for 2025 was trimmed to 1.2% from 1.3%, which mainly reflected a carry-over from weaker than previously expected economic activity in the second half of 2024.
GDP growth is seen at 1.4% in 2026, the same as in the prior survey report. Longer-term GDP growth expectations were unchanged at 1.3%.
Swiss Market Closes Modestly Higher
(RTTNews) - The Switzerland market ended modestly higher on Friday after a choppy ride as investors looked ahead to more interest rate cuts from central banks after the European Central Bank cut rates for the third time this year.
The benchmark SMI ended with a gain of 22.49 points or 0.18% at 12,326.76 after moving between 12,280.52 and 12,348.16.
Swatch Group climbed 2.2%. Straumann Holding, Adecco, Geberit and VAT Group ended up 1.4 to 1.6%. Logitech International, UBS Group and Julius Baer gained 1 to 1.1%.
Lindt Spruengli, Richemont, Roche Holding, SIG Group, Partners Group, Kuehne + Nagel and Givaudan posted moderate gains.
Comet gained about 4.3%, riding on a 45.6% year-over-year surge in third-quarter net sales to 113.2 million francs. The company expects full-year 2024 net sales to be at the lower end of its 440 million francs to 480 million francs guidance range.
ABB drifted down 1.59%. SGS closed down 0.68%, while Sonova and Swiss Life Holding recorded modest losses.
Hong Kong Stock Market Tipped To Open In The Green
(RTTNews) - The Hong Kong stock market on Friday halted the four-day losing streak in which it had stumbled almost 1,100 points or 5.2 percent. The Hang Seng Index now sits just above the 20,800-point plateau and it may see additional support on Monday.
The global forecast for the Asian market is upbeat on generally upbeat earnings news. The European markets were mixed and the U.S. bourses were up and the Asian markets figure to also move higher.
The Hang Seng finished sharply higher on Friday with gains across the board, especially among the technology companies and property stocks.
For the day, the index surged 725.01 points or 3.61 percent to finish at 20,804.11 after trading between 20,058.67 and 20,952.99.
Among the actives, Alibaba Group added 2.03 percent, while Alibaba Health Info skyrocketed 9.16 percent, ANTA Sports strengthened 3.75 percent, China Life Insurance soared 6.52 percent, China Mengniu Dairy and CITIC both accelerated 4.51 percent, China Resources Land rallied 3.97 percent, CNOOC dipped 0.11 percent, CSPC Pharmaceutical surged 8.06 percent, Galaxy Entertainment improved 3.09 percent, Haier Smart Home advanced 3.13 percent, Hang Lung Properties climbed 3.72 percent, Henderson Land gained 1.93 percent, Hong Kong China Gas rose 1.47 percent, Industrial and Commercial Bank of China collected 1.91 percent, JD.com increased 2.65 percent, Lenovo accelerated 6.24 percent, Li Auto jumped 4.73 percent, Li Ning climbed 3.58 percent, Meituan surged 8.93 percent, New World Development advanced 3.28 percent, Nongfu Spring rallied 5.29 percent, Techtronic Industries strengthened 4.39 percent, Xiaomi Corporation spiked 6.28 percent and WuXi Biologics soared 8.70 percent.
The lead from Wall Street is positive as the major averages opened mixed on Friday but moved steadily higher as the day progressed, ending near session highs.
The Dow added 36.86 points or 0.09 percent to finish at a fresh record of 43,275.91, while the NASDAQ climbed 115.94 points or 0.63 percent to end at 18,489.55 and the SP 500 rose 23.20 points or 0.40 percent to close at 5,864.67. For the week, the Dow added 1.0 percent, the SP gained 0.9 percent and the NASDAQ rose 0.8 percent.
The NASDAQ benefitted from a sharp increase by shares of Netflix (NFLX), as the streaming giant soared by 11.1 percent to a record closing high after the company reported Q3 results that beat estimates on both the top and bottom lines.
Meanwhile, a steep drop by shares of American Express (AXP) limited the upside for the Dow, with the credit card giant tumbling by 3.2 percent after the company reported Q3 earnings that beat expectations but weaker than expected revenues.
In U.S. economic news, the Commerce Department reported a modest pullback by housing starts and building permits in September.
Oil prices fell on Friday following downward revisions in oil demand forecast from OPEC and the International Energy Agency. West Texas Intermediate crude oil futures for November sank $1.45 or 2.05 percent at $69.22 a barrel. WTI crude futures fell more than 8 percent in the week.
Canadian Dollar Weakens As Oil Prices Fall
(RTTNews) - The Canadian dollar declined against its most major counterparts in the New York session on Friday, as oil prices dropped on concerns about slowing demand from China.
Official data showed that China's economy grew 4.6 percent in Q3, slowing from 4.7 percent annual growth in the previous quarter and falling below the official 5 percent target for 2024.
While industrial production and retail sales grew more than expected in September, new home prices fell at the fastest pace since May 2015, underscoring weakness in the housing sector.
Meanwhile, China's major commercial banks have cut their deposit rates for a second time this year after officials lowered mortgage and lending rates as part of efforts to boost the economy.
On the geopolitical front, tensions persist after Hamas leader Yahya Sinwar was killed during an operation by Israeli soldiers in the Palestinian enclave on Wednesday.
Lebanon's Hezbollah militant group said today it was moving to a new and escalating phase in its war against Israel while Iran said "the spirit of resistance will be strengthened".
The loonie fell to a 3-day low of 1.3810 against the greenback and 2-day lows of 1.4995 against the euro and 108.27 against the yen, off its early highs of 1.3785, 1.4937 and 108.93, respectively. The currency is likely to locate support around 1.41 against the greenback, 1.51 against the euro and 106.00 against the yen.
Meanwhile, the loonie recovered to 0.9246 against the aussie, from an early 3-day low of 0.9267. The currency is poised to challenge resistance around the 0.90 level.
U.S. Housing Starts Show Modest Pullback In September
(RTTNews) - After reporting a sharp increase in new residential construction in the U.S. in the previous month, the Commerce Department released a report on Friday showing a modest pullback by housing starts in the month of September.
The Commerce Department said housing starts fell by 0.5 percent to an annual rate of 1.354 million in September after spiking by 7.8 percent to a revised rate of 1.361 million in August.
Economists had expected housing starts to dip by 0.4 percent to an annual rate of 1.350 million from the 1.356 million originally reported for the previous month.
The report also showed a sharp pullback by building permits, which tumbled by 2.9 percent to an annual rate of 1.428 million in September after surging by 4.6 percent to a revised rate of 1.470 million in August.
Building permits, an indicator of future housing demand, were expected to slump by 1.0 percent to an annual rate of 1.460 million from the 1.475 million originally reported for the previous month.
Overbought Jakarta Market Nonetheless Called Higher Again On Monday
(RTTNews) - The Indonesia stock market has tracked higher in six straight sessions, climbing more than 275 points or 3.7 percent along the way. The Jakarta Composite Index now rests just above the 7,760-point plateau and it's got a firm lead again for Monday's trade.
The global forecast for the Asian market is upbeat on generally upbeat earnings news. The European markets were mixed and the U.S. bourses were up and the Asian markets figure to also move higher.
The JCI finished modestly higher on Friday following gains from the food sector and mixed performances from the financial shares and resource stocks.
For the day, the index added 25.02 points or 0.32 percent to finish at 7,760.06 after trading between 7,718.68 and 7,790.71.
Among the actives, Bank Mandiri shed 0.69 percent, while Bank Danamon Indonesia sank 0.76 percent, Bank Negara Indonesia spiked 2.73 percent, Bank Central Asia collected 0.23 percent, Bank Rakyat Indonesia dipped 0.20 percent, Bank Maybank Indonesia tumbled 1.72 percent, Indosat Ooredoo Hutchison strengthened 1.66 percent, Indocement dropped 0.95 percent, Semen Indonesia skidded 1.09 percent, Indofood Sukses Makmur rallied 3.48 percent, Astra International lost 0.61 percent, Energi Mega Persada tanked 2.52 percent, Astra Agro Lestari improved 0.74 percent, Aneka Tambang rose 0.31 percent, Timah surrendered 2.20 percent, Bumi Resources plunged 4.79 percent and Bank CIMB Niaga, United Tractors, Jasa Marga and Vale Indonesia were unchanged.
The lead from Wall Street is positive as the major averages opened mixed on Friday but moved steadily higher as the day progressed, ending near session highs.
The Dow added 36.86 points or 0.09 percent to finish at a fresh record of 43,275.91, while the NASDAQ climbed 115.94 points or 0.63 percent to end at 18,489.55 and the SP 500 rose 23.20 points or 0.40 percent to close at 5,864.67. For the week, the Dow added 1.0 percent, the SP gained 0.9 percent and the NASDAQ rose 0.8 percent.
The NASDAQ benefitted from a sharp increase by shares of Netflix (NFLX), as the streaming giant soared by 11.1 percent to a record closing high after the company reported Q3 results that beat estimates on both the top and bottom lines.
Meanwhile, a steep drop by shares of American Express (AXP) limited the upside for the Dow, with the credit card giant tumbling by 3.2 percent after the company reported Q3 earnings that beat expectations but weaker than expected revenues.
In U.S. economic news, the Commerce Department reported a modest pullback by housing starts and building permits in September.
Oil prices fell on Friday following downward revisions in oil demand forecast from OPEC and the International Energy Agency. West Texas Intermediate crude oil futures for November sank $1.45 or 2.05 percent at $69.22 a barrel. WTI crude futures fell more than 8 percent in the week.
Japanese Market Slightly Higher
(RTTNews) - The Japanese stock market is trading slightly higher on Monday, adding to the gains in the previous session. The benchmark SP/ASX 200 is moving a tad above the 39,000 mark, following the broadly positive cues from Wall Street on Friday, with gains is index heavyweights and technology stocks partially offset by weakness in financial stocks.
The benchmark Nikkei 225 Index is up 27.11 or 0.07 percent at 39,008.86, after touching a high of 39,048.44 earlier. Japanese shares ended modestly higher on Friday.
Market heavyweight SoftBank Group is edging up 0.3 percent, while Uniqlo operator Fast Retailing is losing almost 1 percent. Among automakers, Honda is gaining almost 1 percent and Toyota is edging up 0.4 percent.
In the tech space, Screen Holdings and Tokyo Electron are edging up 0.3 to 0.4 percent each, while Advantest is adding more than 1 percent.
In the banking sector, Sumitomo Mitsui Financial is losing almost 2 percent, Mitsubishi UFJ Financial is down more than 1 percent and Mizuho Financial is edging down 0.5 percent.
The major exporters are mostly higher. Sony and Mitsubishi Electric are edging up 0.5 percent each, while Panasonic is gaining almost 1 percent. Canon is edging down 0.5 percent.
Among other major gainers, Rakuten Group is gaining almost 4 percent and M3 is adding more than 3 percent, while Kawasaki Kisen Kaisha and LY are advancing almost 3 percent each.
Conversely, Sumitomo Pharma is losing more than 4 percent, while Tokyo Electric Power and NEC are down almost 3 percent each.
In the currency market, the U.S. dollar is trading in the lower 149 yen-range on Monday.
On Wall Street, stocks moved mostly higher during trading on Friday after ending the previous session little changed. The tech-heavy Nasdaq led the charge, while the Dow ended the day modestly higher at a new record closing high.
The Nasdaq climbed 115.94 points or 0.6 percent to 18,489.55 and the SP 500 rose 23.20 points or 0.4 percent to a new record closing high of 5,864.67. The narrower Dow recovered from an initial pullback to end the day up by 36.86 points or 0.1 percent at 43,275.91.
Meanwhile, the major European markets turned in a mixed performance on the day. While the U.K.'s FTSE 100 Index fell by 0.3 percent, the French CAC 40 Index and German DAX Index both climbed by 0.4 percent.
Crude oil prices fell on Friday following downward revisions in oil demand forecast from OPEC and the International Energy Agency. West Texas Intermediate crude oil futures for November sank $1.45 or 2.05 percent at $69.22 a barrel. WTI crude futures fell more than 8 percent in the week.
Sensex, Nifty Seen Higher At Open
(RTTNews) - Indian shares look set to open a tad higher on Monday as investors react to earnings from HDFC Bank, Kotak Mahindra Bank and Tech Mahindra Bank released over the weekend.
Over 400 companies are scheduled to report their quarterly earnings results this week, including HUL, Coal India and Godrej Consumer Products.
The release of minutes from the RBI's October policy meeting and private surveys on domestic manufacturing and services may influence trading sentiment as the week progresses.
Meanwhile, according to an official announcement, NSE and BSE will hold their annual Diwali Muhurat trading session on Friday, November 1, 2024, from 6:00 PM to 7:00 PM.
Asian markets were moving in a tight range this morning despite China lowering its key benchmark lending rates by 25 basis points in the monthly fixing to boost economic growth.
While rising odds of former President Donald Trump winning the Nov. 5 election boosted the dollar, oil prices steadied after tumbling nearly 8 percent last week on worries about demand in China, the world's top oil importer.
Gold traded near record levels due to geopolitical tensions and U.S. election uncertainties.
U.S. stocks advanced on Friday as economic optimism prevailed, and markets gunned for a Donald Trump victory in the upcoming presidential elections.
The Nasdaq gained 0.6 percent after streaming giant Netflix topped Wall Street estimates for subscriber additions.
The Dow finished marginally higher and the SP 500 added 0.4 percent to reach new record closing highs and seal six straight week of gains despite weak housing data.
European stocks ended broadly higher on Friday to post second straight week of gains as an ECB survey showed inflation could return to the central bank's target sooner than earlier thought.
The pan-European STOXX 600 inched up 0.2 percent. The German DAX and France's CAC 40 both rose about 0.4 percent while the U.K.'s FTSE 100 slipped 0.3 percent.
European Shares Poised For Mixed Open
(RTTNews) - European stocks are likely to open on a mixed note Monday as investors ponder over the health of the U.S. and Chinese economies and await a slew of corporate results for directional cues.
Global finance ministers and central bank chiefs face a major uncertainty as they gather in Washington this week for the annual meeting of the International Monetary Fund and World Bank.
Trade policies and tariffs will be a focal point at the meetings due to uncertainty over the outcome of the U.S. presidential election.
Asian markets traded higher after China's loan prime rate announcement and ahead of Japan's general election at the end of this week, with the ruling Liberal Democratic Party facing the risk of losing its majority.
China's yuan held steady as China's central bank cut two key interest rates to historic lows in the latest move by Beijing to boost sluggish spending and kickstart the world's second-largest economy.
As the week progresses, the focus will be mostly on earnings and economic data releases.
Earnings from high profile U.S. companies such as Tesla, Boeing, Verizon, GE Aerospace, Honeywell and General Motors are due this week.
On the economic front, flash PMI numbers on the U.S. manufacturing and the services sectors, durable goods orders, housing market data, the Federal Reserve's Beige Book on regional economic activity and speeches by several Fed officials may influence investor sentiment.
While higher yields and rising odds of former President Donald Trump winning the Nov. 5 election boosted the dollar, oil prices steadied after tumbling nearly 8 percent last week on worries about demand in China, the world's top oil importer.
Gold traded near record levels due to geopolitical tensions and U.S. election uncertainties.
U.S. stocks advanced on Friday as economic optimism prevailed, and markets gunned for a Donald Trump victory in the upcoming presidential elections.
The Nasdaq gained 0.6 percent after streaming giant Netflix topped Wall Street estimates for subscriber additions.
The Dow finished marginally higher and the SP 500 added 0.4 percent to reach new record closing highs and seal six straight week of gains despite weak housing data.
European stocks ended broadly higher on Friday to post second straight week of gains as an ECB survey showed inflation could return to the central bank's target sooner than earlier thought.
The pan-European STOXX 600 inched up 0.2 percent. The German DAX and France's CAC 40 both rose about 0.4 percent while the U.K.'s FTSE 100 slipped 0.3 percent.
Asian Markets Trade Mixed
(RTTNews) - Asian stock markets are trading mixed on Monday, following the broadly positive cues from Wall Street on Friday, as traders trimmed their bets on US Fed interest rate cuts this year amid following the largely upbeat batch of US economic data last week. A slew of Chinese data last week backed calls for more stimulus to boost the economy. Persisting worries about geopolitical tensions weighed on the markets. Asian markets closed mixed on Friday.
Last week, U.S. retail sales increased slightly more than expected in September and jobless claims unexpectedly fell, while industrial production decreased in September, reversing output growth in August, separate reports showed.
The Australian stock market is currently trading notably higher on Monday, reversing the losses in the previous session, following the broadly positive cues from Wall Street on Friday. The benchmark SP/ASX 200 index is moving above the 8,300.00 level, with gains across most sectors led by gold miner stock and technology stocks.
The benchmark SP/ASX 200 Index is gaining 53.20 points or 0.64 percent to 8,336.40, after touching of 8,349.70 earlier. The broader All Ordinaries Index is up 50.40 points or 0.59 percent to 8,601.60. Australian stocks closed significantly lower on Friday.
Among the major miners, BHP Group, Fortescue Metals and Rio Tinto are gaining more than 1 percent, Mineral dived almost 11 percent as the board said it had "full confidence" in managing director Chris Ellison following an investigation by The Australian Financial Review that uncovered how he allegedly evaded tax for years.
Oil stocks are mostly higher. Origin Energy is edging up 0.1 percent, Beach energy is gaining more than 2 percent and Santos is adding more than 1 percent. Woodside Energy is up almost 1 percent.
Among tech stocks, Afterpay owner Block is gaining more than 2 percent, Xero is adding more than 1 percent and Zip is edging up 0.4 percent, while Appen is declining almost 4 percent and WiseTech Global is tumbling more than 11 percent after its board initiated a review of allegations against founder and chief executive Richard White by a sexual partner, which ended up in him paying her millions of dollars to settle the matter.
Gold miners are mostly higher. Evolution Mining is gaining 3.5 percent, Resolute Mining is advancing almost 4 percent and Gold Road Resources rising more than 3 percent, while Northern Star Resources and Newmont are adding almost 2 percent each.
Among the big four banks, Commonwealth Bank is gaining almost 1 percent, while National Australia Bank, ANZ Banking and Westpac are edging up 0.1 to 0.5 percent each.
In the currency market, the Aussie dollar is trading at $0.672 on Monday.
The Japanese stock market is trading modestly higher on Monday, adding to the gains in the previous session. The benchmark SP/ASX 200 is moving above the 39,000 mark, following the broadly positive cues from Wall Street on Friday, with gains is index heavyweights and technology stocks partially offset by weakness in financial stocks.
The benchmark Nikkei 225 Index closed the morning session at 39,110.95, up 129.20 or 0.33 percent, after touching a high of 39,048.44 earlier. Japanese shares ended modestly higher on Friday.
Market heavyweight SoftBank Group is edging up 0.3 percent, while Uniqlo operator Fast Retailing is losing almost 1 percent. Among automakers, Honda is gaining almost 1 percent and Toyota is edging up 0.4 percent.
In the tech space, Screen Holdings and Tokyo Electron are edging up 0.3 to 0.4 percent each, while Advantest is adding more than 1 percent.
In the banking sector, Sumitomo Mitsui Financial is losing almost 2 percent, Mitsubishi UFJ Financial is down more than 1 percent and Mizuho Financial is edging down 0.5 percent.
The major exporters are mostly higher. Sony and Mitsubishi Electric are edging up 0.5 percent each, while Panasonic is gaining almost 1 percent. Canon is edging down 0.5 percent.
Among other major gainers, Rakuten Group is gaining almost 4 percent and M3 is adding more than 3 percent, while Kawasaki Kisen Kaisha and LY are advancing almost 3 percent each.
Conversely, Sumitomo Pharma is losing more than 4 percent, while Tokyo Electric Power and NEC are down almost 3 percent each.
In the currency market, the U.S. dollar is trading in the lower 149 yen-range on Monday.
Elsewhere in Asia, New Zealand, Indonesia, Hong Kong and Singapore are lower by between 0.1 and 0.7 percent each, while China, South Korea and Taiwan are higher by between 0.1 and 0.8 percent each. Malaysia is respectively flat.
On Wall Street, stocks moved mostly higher during trading on Friday after ending the previous session little changed. The tech-heavy Nasdaq led the charge, while the Dow ended the day modestly higher at a new record closing high.
The Nasdaq climbed 115.94 points or 0.6 percent to 18,489.55 and the SP 500 rose 23.20 points or 0.4 percent to a new record closing high of 5,864.67. The narrower Dow recovered from an initial pullback to end the day up by 36.86 points or 0.1 percent at 43,275.91.
Meanwhile, the major European markets turned in a mixed performance on the day. While the U.K.'s FTSE 100 Index fell by 0.3 percent, the French CAC 40 Index and German DAX Index both climbed by 0.4 percent.
Crude oil prices fell on Friday following downward revisions in oil demand forecast from OPEC and the International Energy Agency. West Texas Intermediate crude oil futures for November sank $1.45 or 2.05 percent at $69.22 a barrel. WTI crude futures fell more than 8 percent in the week.
ECB's Simkus Says Rates To Go Lower If Inflation Slows Further
(RTTNews) - The European Central Bank could cut interest rates further if inflation continues to slow and the economy remains sluggish, Governing Council member Gediminas Simkus said on Monday, but he refrained from predicting the December move.
Citing the projection that the Eurozone inflation will hit 2 percent next year, Simkus, who is the Lithuanian central bank chief, told reporters in Vilnius, "The direction [of monetary policy] is clear."
That said, the policymaker stressed on the need to remain flexible as new ECB staff projections will be made available in December.
"I don't know what will be the decision in December," Simkus added.
Elsewhere, Bank of Latvia President Martins Kazaks also said ECB rates will continue to decrease as inflation is on a sustainable path of return to the 2 percent target.
"…falling inflation and a weak economy - allow for further gradual lowering of interest rates," Kazaks said in a blog.
In June, the ECB cut interest rates for the first time since 2019, citing an improvement in the inflation outlook.
The ECB cut interest rates by 25 basis points last week, as expected, following a similar reduction in September. The policy statement as well as the post-decision comments from ECB President Christine Lagarde suggested that the bank is increasingly concerned over the weak economic performance in the euro area.
The central bank is widely expected to lower rates again in December.
Asian Shares Mixed After China Rate Cut
(RTTNews) - Asian stocks turned in a mixed performance on Monday as China's central bank once again cut interest rates and the country's banks slashed borrowing costs to combat the country's stubborn economic slump.
The dollar fell as global finance chiefs gather in Washington this week amid intense uncertainty over wars in the Middle East and Europe, and uncertainty around the U.S. presidential election.
Gold reached another record high while oil prices recovered some ground, after having fallen nearly 8 percent last week on China demand concerns.
Israel opened up a fresh military assault on Hezbollah's strongholds in Lebanon, a day after a drone exploded next to Prime Minister Benjamin Netanyahu's private home.
Israel has already vowed to retaliate against Iran for a missile attack at the start of October.
China's Shanghai Composite index ended 0.20 percent higher at 3,268.11 after a volatile session as the People's Bank of China cut the one- and five-year LPRs by 25 basis points to 3.1 percent and 3.6 percent, respectively.
Hong Kong's Hang Seng index fell 1.57 percent to 20,478.46 as tech stocks declined and investors awaited earnings from prominent companies, including Ping An and HKEX.
Japanese markets ended little changed on fading BoJ rate hike bets and ahead of the general election at the end of this week. The Nikkei average finished marginally lower at 38,954.60 while the broader Topix index settled 0.34 percent lower at 2,679.91.
Seoul stocks eked out modest gains to snap a three-day losing streak. The Kospi average inched up 0.43 percent to 2,604.92, with Hyundai Motor, Korean Air and Jeju Air climbing 1-3 percent.
Australian markets rose notably as higher commodity prices boosted mining and energy stocks. The benchmark SP/ASX 200 jumped 0.74 percent to 8,344.40 while the broader All Ordinaries index closed 0.62 percent higher at 8,604.10.
Across the Tasman, New Zealand's benchmark SP/NZX-50 index rose 0.77 percent to 12,923.22, nearing the 13,000 points mark for the first time since 2021.
U.S. stocks advanced on Friday as economic optimism prevailed, and markets gunned for a Donald Trump victory in the upcoming presidential elections.
The Nasdaq gained 0.6 percent after streaming giant Netflix topped Wall Street estimates for subscriber additions.
The Dow finished marginally higher and the SP 500 added 0.4 percent to reach new record closing highs and seal six straight week of gains despite weak housing data.
Dollar Firms Up With Rising Trump Bets
(RTTNews) - The U.S. Dollar extended gains against major currencies during the week ended October 18 amidst growing expectations of a Trump presidency, widely perceived as boosting the U.S. dollar.
The greenback has gained amidst perception that Trump's tariff and tax policies would keep U.S. interest rates high. The greenback strengthened against the euro, the British pound, the Japanese yen, the Australian dollar, the Canadian Dollar, the Swedish Krona and the Swiss franc over the course of the week.
The Dollar Index, which measures the U.S. Dollar's strength against a basket of 6 currencies gained 0.58 percent during the week ended October 18, recording the third week of gains. The Index had added 0.36 percent during the week ended October 11 and 2.13 percent during the week ended October 4.
Data released by the U.S. Census Bureau on Thursday showed month-on-month Retail Sales in the U.S. rising 0.4 percent in September versus market expectation of a rise of 0.3 percent. Retail sales had grown only 0.1 percent in August.
Also, data released on Thursday showed the number of people claiming unemployment benefits in the U.S. unexpectedly decreasing to 241 thousand in the week ended October 18 whereas markets had expected it to be at 260 thousand, the previous week's level.
Amidst the strong economic data, the DXY touched a weekly low of 102.93 on Monday and climbed to a weekly high of 103.87 on Thursday, before slipping and eventually closing at 103.49 on Friday. The Index was at 102.89 a week before.
The euro slipped against the U.S. Dollar during the week ended October 18 amidst the ECB's widely expected 25-basis points cut in interest rates on Thursday. The EUR/USD pair declined to 1.0866 on October 18, from 1.0937 a week earlier, recording a decrease of 0.65 percent as markets priced in increased likelihood of back-to-back rate cuts at the ECB's upcoming meetings. The pair ranged between the high of 1.0936 recorded on Monday and the low of 1.0810 touched on Thursday.
The U.S. Dollar surged against the British pound also during the week ended October 18 amidst a higher-than-expected softening in inflation in the U.K. that triggered hopes of aggressive rate cuts by the Bank of England. The GBP/USD pair which had closed at 1.3066 on October 11, dropped to 1.3048 by October 18. The pair ranged between Tuesday's high of 1.3102 and Thursday's low of 1.2971. Data released on Wednesday showed annual inflation in the U.K. declining to 1.7 percent in September from 2.2 percent in the previous month and pleasantly surprising markets that had expected a level of 1.9 percent.
The Australian Dollar too plunged 0.65 percent against the U.S. Dollar during the week ended October 18, amidst diminishing expectations regarding stimulus measures from China, the toning down of aggressive rate cut prospects from the Federal Reserve as well as weakness in global commodity prices. The AUD/USD pair which had closed at 0.6750 on October 11 climbed to a high of 0.6746 on Monday before dropping to 0.6656 on Wednesday. The pair finally closed at 0.6706 on Friday.
The past week also saw the Japanese yen extending losses against the U.S. Dollar. The USD/JPY pair which was at 149.13 on October 11 climbed to 149.52 in a week's time. The pair had touched a low of 148.84 on Tuesday and a more than 2-month high of 150.32 on Thursday. The yen's weakness came amidst inflation in Japan declining to 2.5 percent in September from 3 percent in the previous month. The lowest reading since April cast doubts on the headroom available to Bank of Japan to hike rates aggressively.
With the U.S. presidential elections only two weeks away, political dimensions have again assumed preeminence and currency markets appear to be positioning for a Trump victory. Coupled with the lingering tensions in the Middle East that continues unabated, the six-currency Dollar Index has risen to 103.63 from 103.49 on Friday.
The EUR/USD pair has decreased to 1.0852 amidst weak PPI readings from Germany. Rate cut expectations have driven the GBP/USD pair to 1.3022. The AUD/USD pair has slipped to 0.6687. Ahead of Sunday's general election in Japan, the USD/JPY pair has firmed up all the way to 149.95.
China Cuts Benchmark Lending Rates To Revive Growth
(RTTNews) - China reduced its benchmark lending rates by 25 basis points on Monday as the economic growth slowed further amid persistent deflationary pressures.
The People's Bank of China cut its one-year loan prime rate to 3.10 percent from 3.35 percent. Likewise, the five-year LPR, the benchmark for mortgage rates, was lowered to 3.60 percent from 3.85 percent.
The bank had previously lowered the rates by 10 basis points in July.
The announcement was widely expected as PBoC Governor Pan Gongsheng last week said the bank will cut the LPR by 0.2-0.25 percentage points today.
The governor also said that the bank could further cut the reserve requirement ratio by 0.2-0.5 percentage points at appropriate time depending on the market liquidity before the year-end.
The PBoC fixes the LPR monthly based on the submission of 18 designated banks. However, Beijing has influence over the fixing. The LPR replaced the traditional benchmark lending rate in August 2019.
The reduction in the LPR will lower interest payments of existing loans, taking some pressure off indebted firms, Capital Economics' economist Zichun Huang said.
Although additional easing is likely to follow in the coming quarter, this is unlikely to boost loan demand much, the economist added. A meaningful turnaround in economic growth would require a larger fiscal response.
Data released last week showed that the second-largest economy expanded at the slowest pace in more than a year with property market continuing to be the biggest drag on growth. GDP growth eased to 4.6 percent in the third quarter from 4.7 percent in the preceding period. Beijing aims to achieve around 5 percent growth this year.
