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UK Pay Growth Stalled In September, Likely To Slow Next Year: Survey
(RTTNews) - Growth in the employee earnings in the U.K. stalled in the September quarter and the rate of increase is expected to fall next year as employers weigh the cost, the performance of their companies and possibly lower inflationary pressures.
Median pay award forecast for the next 12 months was 3 percent, nearly two percentage points lower than the median pay award of 4.7 percent for the 12 months ending August 2024, results of a survey by the HR data and insights provider Brightmine, formerly XpertHR, showed Wednesday. The forecast was also 50 percent lower than in the same period in 2023.
"With economic pressures mounting, we're seeing organizations re-evaluate their pay strategies, and many are shifting their focus toward enhancing employee benefits as a way to balance employee expectations with the needs of the business," Sheila Atwood, senior content manager at Brightmine, said.
"While pay awards are expected to decline in 2025, businesses are continuing to find creative ways to support their workforce, particularly by addressing skills shortages and retaining key talent."
Latest official data showed that UK wage growth softened to the lowest in more than two years in the three months to August, adding support to expectations that the Bank of England will cut interest rates further at the November policy session over concerns about a slowing economy and a cooling labor market.
The survey showed that businesses reported affordability, organization performance and inflation/cost of living as the three factors that are most likely to negatively influence pay award decisions in the next 12 months.
Meanwhile, skills shortages and matching pay levels with their industry were the two factors most likely to boost pay awards next year for half of businesses.
The monthly Brightmine Pay Trends report, based on a survey of 64 pay settlements between July 1 and September 30 covering 433,000 employees, showed that September saw pay rises remained flat at 4 percent for the third consecutive rolling quarter. That compared to the 4.8 percent pay award in the June quarter.
Pay settlements in the public sector over the 12 months to the end of September was a median 5.5 percent, unchanged from the previous rolling year to the end of August. This follows a full 12 months when pay awards in the sector were in excess of 6 percent, the report said.
However, employers plan to raise the pay for most employees next year, while about 4 percent of businesses are planning wage freezes.
Deutsche Bank Q3 Profit Climbs, Confirms Outlook; Stock Dips
(RTTNews) - German banking major Deutsche Bank AG reported Wednesday higher profit in its third quarter, driven by partial release of Postbank litigation provisions, lower expenses, as well as improved revenues. The company also said it is on track to achieve its annual revenue target, as well as 2025 goals.
Meanwhile, Deutsche Bank shares were losing around 3 percent in the morning trading in Germany as well as in the pre-market activity on the NYSE.
James von Moltke, CFO, said, "... we will meet our 30 billion euros revenue guidance for the year 2024 and that our continued revenue momentum, cost efficiencies, capital strength and moderating credit provisions all put us on track to deliver on our 2025 goals."
Deutsche Bank further said it recently sought ECB authorization for further share repurchases.
In its third quarter, the company reported net income attributable to shareholders of 1.46 billion euros, 42 percent higher than 1.03 billion euros last year.
The latest earnings were benefited by around 440 million euros partial release of litigation provisions relating to the bank's takeover of Postbank AG, combined with operating momentum.
Excluding Postbank-related litigation release, net profit moved up by 8 percent to 1.3 billion euros from last year's 1.2 billion euros.
Profit before tax rose 31 percent to 2.26 billion euros from prior year's 1.72 billion euros. Adjusted pre-tax income was 1.8 billion euros, up 6 percent from the prior year.
In the quarter, non-interest expenses dropped 8 percent to 4.744 billion euros, while it was flat ex-Postbank litigation release. Provision for credit losses, however, surged to 494 million euros from last year's 245 million euros.
Total net revenues for the quarter were 7.501 billion euros, up 5 percent from previous year's 7.132 billion euros.
The company recorded 5 percent growth in commissions and fee income to 2.5 billion euros, reflecting strong performance of fee and commissions-based businesses.
Net interest income in the key segments of the banking book was broadly stable year on year.
Corporate Bank net revenues were 1.8 billion euros, down 3 percent, and net interest income was 1.2 billion euros, down slightly year on year, reflecting normalizing deposit margins.
Investment Bank net revenues were 2.5 billion euros, up 11 percent over last year, with growth across both Fixed Income and Currencies and Origination Advisory. Emerging Markets revenues were also significantly higher, reflecting growth across regions.
Private Bank net revenues of 2.3 billion euros were essentially flat year on year, while net interest income declined 6 percent in an environment of stabilizing interest rates.
Asset Management net revenues were up 11 percent from last year to 660 million euros.
On XETRA, Deutsche Bank shares were trading at 15.88 euros, down 2.65 percent.
In pre-market activity on the NYSE, the shares are at $17.10, down 2.68 percent.
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Asian Shares Mixed; Nikkei Underperforms
(RTTNews) - Asian stocks ended mixed on Wednesday and the U.S. dollar index surpassed 104 mark, tracking elevated U.S. treasury yields amid easing expectations of aggressive Federal Reserve rate cuts and fears the U.S. may be heading toward fiscal collapse.
Gold reached a new record high while oil prices fell after industry data showed U.S. crude inventories swelled more than expected.
Chinese shares eked out modest gains after reports emerged that the government may deploy as much as 2 trillion yuan (US$280 billion) to establish a stock market stabilization fund.
The benchmark Shanghai Composite index rose 0.52 percent to 3,302.80 while Hong Kong's Hang Seng index rallied 1.27 percent to 20,760.15.
Japanese markets lost ground as investors were reluctant to place major bets ahead of the country's upcoming lower house election.
Sentiment was also dented by rising Treasury yields due to shifting expectations around how fast and deep the Federal Reserve will cut rates.
The Nikkei average fell 0.80 percent to 38,104.86 after media polls suggested that the ruling Liberal Democratic Party (LDP) and its coalition partner Komeito may lose their majority in the election. The broader Topix index settled 0.55 percent lower at 2,636.96.
Staffing agency Recruit Holdings slumped 4.9 percent and Uniqlo-owner Fast Retailing dropped 1.7 percent while automakers Honda Motor and Toyota surged 2-3 percent on the back of a weaker yen.
Tokyo Metro shares jumped 45 percent on the first day of trading for the company.
Seoul stocks rose sharply, with automakers and technology stocks leading the rally. The Kospi average jumped 1.12 percent to 2,599.62.
Market bellwether Samsung Electronics jumped 2.4 percent while No. 2 chipmaker SK Hynix surged 4.4 percent. Top carmaker Hyundai Motor gained 2.8 percent.
Australian markets finished marginally higher, led by consumer staple stocks. The benchmark SP/ASX 200 edged up 0.13 percent to 8,216 while the broader All Ordinaries index ended marginally up at 8,476.30.
Supermarket operator Woolworths advanced 1.6 percent and Coles Group added 1.4 percent as their lawyers began defending allegations of dodgy discount behaviour in the Federal Court.
Across the Tasman, New Zealand's benchmark SP/NZX-50 index dropped 0.20 percent to 12,787.60.
U.S. stocks ended narrowly mixed overnight as Treasury yields continued to climb on prospects for a slower pace of Federal Reserve rate cuts and amid concerns about the possible fiscal impact of U.S. presidential election results.
The Dow and the SP 500 finished marginally lower while the tech-heavy Nasdaq Composite edged up 0.2 percent.
FTSE 100 Declines As Investors Look Ahead To Budget
(RTTNews) - U.K. stocks drifted lower on Wednesday as investors braced for the upcoming autumn budget and the U.S. Presidential election scheduled for November 5.
The benchmark FTSE 100 was down 17 points, or 0.2 percent, at 8,289 after falling 0.1 percent on Tuesday.
Lender Lloyds rose about 1 percent after Q3 profit beat expectations.
Reckitt Benckiser rallied nearly 3 percent as the consumer goods company reported a smaller than expected fall in third-quarter underlying sales.
Barratt Redrow jumped 3 percent. The homebuilder said it is encouraged by solid trading in recent weeks amid more stable market conditions.
Precious metals miner Fresnillo rose 1.2 percent after a sold third-quarter output performance.
Advertising group WPP gained 3.3 percent as it reported a better-than-expected 0.5 percent rise in like-for-like organic revenue in the third quarter.
U.S. Existing Home Sales Unexpectedly Slump By 1.0% In September
(RTTNews) - A report released by the National Association of Realtors on Wednesday unexpectedly showed a continued decrease by existing home sales in the U.S. in the month of September.
NAR said existing home sales slid by 1.0 percent to an annual rate of 3.84 million in September after tumbling by 2.0 percent to a revised rate of 3.88 million in August.
Economists had expected existing home sales to increase by 1.0 percent to a rate of 3.90 million from the 3.86 million originally reported for the previous month.
"Home sales have been essentially stuck at around a four-million-unit pace for the past 12 months, but factors usually associated with higher home sales are developing," said NAR Chief Economist Lawrence Yun.
"There are more inventory choices for consumers, lower mortgage rates than a year ago and continued job additions to the economy," he added. "Perhaps, some consumers are hesitating about moving forward with a major expenditure like purchasing a home before the upcoming election."
The report also said housing inventory at the end of September totaled 1.39 million units, up 1.5 percent from 1.37 million units in August and up 23.0 percent from 1.13 million units a year ago.
The unsold inventory represents 4.3 months of supply at the current sales pace, up from 4.2 months in August and 3.4 months in September 2023.
"More inventory is certainly good news for home buyers as it gives consumers more properties to view before making a decision," Yun said. "However, the inventory of distressed properties is minimal because the mortgage delinquency rate remains very low."
NAR also said the median existing home price was $404,500 in September, down 2.3 percent from $414,200 in August but up 3.0 percent from $392,700 a year ago.
On Thursday, the Commerce Department is scheduled to release its report on new home sales in the month of September.
Economists currently expect new home sales to rise to an annual rate of 720,000 in September after plunging to a rate of 716,000 in August.
Bank Of Canada Slashes Interest Rates By 50 Basis Points
(RTTNews) - Following three straight quarter point interest rate cuts, the Bank of Canada on Wednesday announced its widely expected decision to slash rates by a half point.
The Bank of Canada said it decided to reduce its target for the overnight rate by 50 basis points to 3.75 percent, with the Bank Rate at 4 percent and the deposit rate at 3.75 percent.
The Canadian central bank's decision to continue lowering rates came as consumer price inflation has declined significantly from 2.7 percent in June to 1.6 percent in September.
"With inflation now back around the 2% target, Governing Council decided to reduce the policy rate by 50 basis points to support economic growth and keep inflation close to the middle of the 1% to 3% range," the bank said its statement.
The Bank of Canada also said it expects to further reduce rates if the economy evolves broadly in line with its forecast but noted the timing and pace of future rate cuts will be guided by incoming information and its implications for the inflation outlook
"We will take decisions one meeting at a time," Bank of Canada said, stressing that it is committed to maintaining price stability for Canadians by keeping inflation close to the 2 percent target.
Bay Street Seen Opening Weak; BoC Rate Decision In Focus
(RTTNews) - Lower stock futures and commodity prices point to a weak start for the Canadian market on Wednesday. The focus will be on the Canadian central bank's interest rate decision due after the opening bell.
The Bank of Canada is scheduled to announce its monetary policy at 9:45 AM ET. The central bank is widely expected to reduce interest rates by 50 basis points.
In earnings news, Whitecap Resources (WCP.TO) reported third-quarter net profit of $274.2 million, or $0.46 per share, compared with $152.7 million, or $0.25 per share in the year-ago quarter.
The Canadian market recovered from an early setback and ended flat on Tuesday. The mood was cautious with investors awaiting the Canadian central bank's interest rate decision on Wednesday.
The benchmark SP/TSX Composite Index ended down 6.63 points or 0.03% at 24,716.70. The index, which dropped to 24,565.21 in early trades, briefly moved into positive territory, rising to 24,724.53 in the closing minutes.
Asian stocks ended mixed on Wednesday and the U.S. dollar index surpassed 104 mark, tracking elevated U.S. treasury yields amid easing expectations of aggressive Federal Reserve rate cuts and fears the U.S. may be heading toward fiscal collapse.
Gold reached a new record high while oil prices fell after industry data showed U.S. crude inventories swelled more than expected.
Chinese shares eked out modest gains after reports emerged that the government may deploy as much as 2 trillion yuan (US$280 billion) to establish a stock market stabilization fund.
European stocks are down in negative territory with investors digesting and awaiting the upcoming U.K. autumn budget. The dollar is on the rise again and U.S. Treasury yields hover near three-month highs as traders ponder the prospect of a Donald Trump presidency.
It is feared that Trump policies including tariffs and restrictions on undocumented immigration could increase inflation and keep interest rates relatively high for a longer-than-anticipated period.
In commodities, West Texas Intermediate Crude oil futures are down $1.19 or 1.66% at $70.55 a barrel.
Gold futures are down $1.90 or 0.07% at $2,757.90 an ounce, while Silver futures are lower by $0.371 or 1.06% at $34.670 an ounce.
Sensex, Nifty Give Up Early Gains
(RTTNews) - Indian shares gave up early gains to end marginally lower on Wednesday.
The benchmark 30-share BSE Sensex ended the session down 138.74 points, or 0.17 percent, at 80,081.98 due to concerns over stretched valuations and continued selling by foreign institutional investors amid rising global uncertainties.
The broader NSE Nifty index dropped 36.60 points, or 0.15 percent, to close at 24,435.50.
Power Grid Corp, Shriram Finance, Eicher Motor, Sun Pharma and Mahindra Mahindra fell 2-3 percent in the Nifty pack, while Bajaj Finance jumped 4.9 percent after Q2 net profit surged 80 percent.
HDFC Bank, Bajaj Auto, Tata Consumer Products and Tech Mahindra rose 1-2 percent.
Global cues were mixed, while the dollar and bonds remained elevated amid easing expectations of aggressive Federal Reserve rate cuts and fears the U.S. may be heading toward fiscal collapse.
U.S. Treasury yields hovered near three-month highs as traders pondered the prospect of a Donald Trump presidency.
It is feared that Trump policies including tariffs and restrictions on undocumented immigration could increase inflation and keep interest rates relatively high for a longer-than-anticipated period.
Gold extended its uptrend to reach new record highs, while oil prices were down around 1 percent in European trade as industry data signaled a rise in U.S. oil inventories and the Biden administration renewed efforts to secure a cease-fire in the Middle East.
CAC 40 Declines On China Concerns
(RTTNews) - French stocks traded lower on Wednesday due to concerns about slowing Chinese growth and the widening U.S. fiscal deficit.
The benchmark CAC 40 dropped 34 points, or half a percent, to 7,501 after ending little changed the previous day.
L'Oreal tumbled 4 percent after the cosmetics giant reported a rise in third quarter sales that missed expectations due to low consumer confidence in China.
Thales gave up 2 percent despite reporting higher sales and orders in the first nine months of the year.
Air Liquide dropped 1 percent. The industrial gases supplier delivered third-quarter revenue in line with market expectations.
Ipsen fell 1.3 percent. The global specialty-care biopharmaceutical company reported strong sales momentum in the first nine months of 2024.
European Shares Subdued On Inflation Woes
(RTTNews) - European stocks were slightly lower on Wednesday as investors digested mixed earnings results and braced for the upcoming U.K. autumn budget.
The dollar was on the rise again and U.S. Treasury yields hovered near three-month highs as traders pondered the prospect of a Donald Trump presidency.
It is feared that Trump policies including tariffs and restrictions on undocumented immigration could increase inflation and keep interest rates relatively high for a longer-than-anticipated period.
The pan-European STOXX 600 was down 0.1 percent at 519.68 after falling 0.2 percent on Tuesday.
The German DAX was marginally lower, France's CAC 40 slipped 0.3 percent and the U.K.'s FTSE 100 was down 0.2 percent.
British lender Lloyds rose about 1 percent after Q3 profit beat expectations.
Reckitt Benckiser rallied nearly 3 percent as the consumer goods company reported a smaller than expected fall in third-quarter underlying sales.
Barratt Redrow jumped 3 percent. The homebuilder said it is encouraged by solid trading in recent weeks amid more stable market conditions.
Precious metals miner Fresnillo rose 1.2 percent after a solid third-quarter output performance.
Advertising group WPP gained 3.3 percent as it reported a better-than-expected 0.5 percent rise in like-for-like organic revenue in the third quarter.
L'Oreal tumbled 3.4 percent after the French cosmetics giant reported a rise in third quarter sales that missed expectations due to low consumer confidence in China.
Thales gave up 1.7 percent despite reporting higher sales and orders in the first nine months of the year.
Air Liquide dropped 1.4 percent. The industrial gases supplier delivered third-quarter revenue in line with market expectations.
Ipsen declined 1 percent. The global specialty-care biopharmaceutical company reported strong sales momentum in the first nine months of 2024.
Deutsche Bank fell 3.2 percent after the German lender returned to profit in the third quarter but flagged credit risks.
Atoss Software rose 1.2 percent after reporting higher Q3 profit and lifting its FY24 margin view.
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.
