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Asian Markets Trade Mixed
(RTTNews) - Asian stock markets are trading mixed on Monday, following the mixed cues from Wall Street on Friday, pulled down by a tumbling South Korean market amid the ongoing political turmoil in the country as well as the ongoing tensions in the Middle East and the Russia - Ukraine war. Traders also remain optimistic over the outlook for interest rates in the wake of the most recent set of US economic data, including monthly jobs and consumer sentiment data. Asian markets closed mixed on Friday.
The Australian stock market is currently trading modestly lower on Monday, adding to the losses in the previous session, following the mixed cues from Wall Street on Friday. The benchmark SP/ASX 200 index is falling below the 8,400.00 level, with weakness across most sectors led by mining and energy stocks. Technology stocks were the only bright spot.
Traders now remain cautious ahead of the Reserve Bank of Australia's board meeting with a cash rate decision due on Tuesday, where the RBA is widely expected to hold rates.
The benchmark SP/ASX 200 Index is losing 17.90 points or 0.21 percent to 8,403.00, after hitting a low of 8,371.10 earlier. The broader All Ordinaries Index is down 19.20 points or 0.22 percent to 8,670.10. Australian stocks closed notably lower on Friday.
Among the major miners, BHP Group and Rio Tinto are losing more than 1 percent each, while Fortescue Metals is declining more than 3 percent and Mineral Resources is down almost 1 percent.
Oil stocks are mostly lower. Woodside Energy is losing more than 2 percent, Origin Energy is edging down 0.5 percent, Santos is declining almost 2 percent and Beach energy is slipping more than 6 percent.
Among tech stocks, Afterpay owner Block is gaining more than 2 percent, while Xero, WiseTech Global and Zip are edging up 0.2 to 0.5 percent each. Appen is losing more than 1 percent.
Gold miners are mostly lower. Evolution Mining is down more than 1 percent and Resolute Mining is declining almost 6 percent, while Northern Star Resources, Gold Road Resources and Newmont are edging down 0.2 to 0.3 percent each.
Among the big four banks, Westpac and National Australia Bank are losing almost 1 percent each, while ANZ Banking is declining almost 3 percent and Commonwealth Bank is edging down 0.1 percent.
In other news, shares in Platinum Asset Management are tumbling almost 17 percent after Regal Partners ended buyout talks with the fund manager, with no new deal reached.
In the currency market, the Aussie dollar is trading at $0.640 on Monday.
The Japanese stock market is trading modestly higher on Monday after briefly slipping into the red, reversing the losses in the previous session. The benchmark SP/ASX 200 is moving to near the 39,200 level, following the mixed cues from Wall Street on Friday, with gains in some index heavyweights and automakers partially offset by weakness in technology stocks.
The benchmark Nikkei 225 Index closed the morning session at 39,197.57, up 106.40 or 0.27 percent, after touching a high of 39,332.55 earlier. Japanese shares ended significantly lower on Friday.
Market heavyweight SoftBank Group is gaining more than 2 percent and Uniqlo operator Fast Retailing is adding more than 1 percent. Among automakers, Honda is gaining almost 1 percent and Toyota is edging up 0.3 percent.
In the tech space, Screen Holdings is losing 1.5 percent and Advantest is declining almost 5 percent, while Tokyo Electron is edging down 0.2 percent.
In the banking sector, Sumitomo Mitsui Financial is gaining almost 1 percent, while Mitsubishi UFJ Financial is edging down 0.2 percent. Mizuho Financial is flat.
The major exporters are mixed. Panasonic and Sony are gaining almost 2 percent each, while Canon is edging up 0.5 percent. Mitsubishi Electric is losing almost 1 percent.
Among other major gainers, Rakuten Group is surging more than 7 percent, while Yamato Holdings and Nomura Research Institute are gaining almost 5 percent each. BANDAI NAMCO, Recruit Holdings and NEXON are advancing almost 3 percent each.
Conversely, ZOZO is losing almost 3 percent.
In economic news, Japan's gross domestic product expanded a seasonally adjusted 0.3 percent on quarter in the third quarter of 2024, the Cabinet Office said on Monday - exceeding expectations for an increase of 0.2 percent following the upwardly revised 0.5 percent increase in the three months prior (originally 0.2 percent). On an annualized basis, GDP rose 1.2 percent - beating forecasts for a 0.9 percent gain, which would have been unchanged.
Capital expenditure was down 0.1 percent on quarter, but that also beat forecasts for a decline of 0.2 percent - which would have been unchanged from Q2. External demand was down 0.1 percent on quarter, while the GDP price index climbed an annual 2.4 percent and private consumption was up 0.7 percent on quarter.
In the currency market, the U.S. dollar is trading in the higher 149 yen-range on Monday.
Elsewhere in Asia, New Zealand, China, Hong Kong, Taiwan and Indonesia are higher by between 0.1 and 0.5 percent each. South Korea is down 1.8 percent, while Singapore and Malaysia are down 0.2 and 0.3 percent, respectively.
On Wall Street, stock indexes all moved to the upside early in the session on Friday but turned mixed over the course of the trading day. While the Nasdaq and the SP 500 managed to remain in positive territory and reach new record closing highs, the narrower Dow pulled back into negative territory.
The major averages turned in a mixed performance. The tech-heavy Nasdaq ended the session near its best levels of the day, climbing 159.05 points or 0.8 percent to 19,859.77. The SP 500 also rose 15.16 points or 0.3 percent to 6,090.27, but the Dow fell 123.19 points or 0.3 percent to 44,642.52
The major European markets also ended the day mixed. The French CAC 40 Index jumped by 1.3 percent and the German DAX Index inched up by 0.1 percent, but the U.K.'s FTSE 100 Index fell by 0.5 percent.
Crude oil prices fell on Friday, weighed down by prospects of excess supply in the market. West Texas Intermediate Crude oil futures for January shed $1.10 or 1.61 percent at $67.20 a barrel. WTI crude futures fell nearly 1 percent in the week.
Canadian Market Remains Positive After Hitting New Record High
(RTTNews) - The Canadian market is up in positive territory in late morning trade on Friday with stocks from consumer discretionary and communications sectors contributing to the upmove. A few stocks from technology sector are also notably higher.
Data showing a much bigger than expected increase in Canadian jobs growth in the month of November is aiding sentiment.
Investors are also reacting to some quarterly earnings updates.
The benchmark SP/TSX Composite Index, which moved on to a new record high at 25,826.98 earlier in the session, is up 88.70 points or 0.35% at 25,768.74 nearly half an hour before noon.
Data from Statistics Canada said employment in Canada rose by 51,000 in November of 2024, the most in seven months, extending the slight change of 14,500 from the previous month and well above the market consensus of 25,000.
Meanwhile, the unemployment rate in Canada rose to 6.8% in November, from 6.5% in the previous month. The unemployment rate was expected to come in at 6.6%.
A separate report from Statistics Canada said average hourly earnings in Canada increased to C$ 36.73 in October over the previous month.
The Ivey Business School said that the Ivey Purchasing Managers Index in Canada rose to 52.3 in November, up from 52.0 in October. The Index was expected to rise to 53.1.
Laurentian Bank of Canada (LB.TO) is gaining about 5.2% after reporting an increase in quarterly earnings. For the fourth quarter of fiscal 2024, Laurentian Bank reported net income of $40.7 million and diluted earnings per share of $0.88, compared with net income of $30.6 million and diluted earnings per share of $0.67 for the fourth quarter of 2023.
Canadian Western Bank (CWB.TO), which was scheduled to report its earnings today, has announced that it will announce its earnings in mid-December. The stock is down more than 11%.
BRP Inc (DOO.TO) is rising more than 7% despite reporting lower earnings. The company reported a net income of $27.3 million for the third-quarter, a decrease of 69.7% compared to the year-ago quarter.
Newmont (NGT.TO) is gaining nearly 2%. The company has agreed to sell its Cripple Creek Victor operation in Colorado, USA, to SSR Mining Inc. for up to $275 million in cash.
German Industrial Production Declines Unexpectedly
(RTTNews) - Germany's industrial output decreased unexpectedly in October on weak energy and auto production, darkening economic outlook, official data revealed on Friday.
Industrial output registered a 1.0 percent decrease in October, data from Destatis showed. The decline confounded expectations for an increase of 1.0 percent. Production was down by revised 2.0 percent in September.
On a yearly basis, industrial production slid 4.5 percent after a 4.3 percent fall.
The monthly fall was largely driven by the sharp 8.9 percent decrease in energy production. The automotive industry also made a negative contribution with output falling 1.9 percent.
Industrial production excluding energy and construction fell only 0.3 percent from September, data showed. On a yearly basis, production fell 4.5 percent in October.
By sectors, the production of consumer goods declined 1.0 percent and output of capital goods dropped 0.4 percent. By contrast, intermediate goods production gained 0.4 percent.
Outside industry, construction output remained at the level of the previous month.
Data released on Thursday showed that manufacturing new orders shrunk 1.5 percent in October on weaker domestic demand.
ING economist Carsten Brzeski said there is still no end in sight to the industrial slump in Germany as industrial production dropped once again in October.
Data showed a very weak start to the fourth quarter, increasing the risk of a winter recession in Germany, the economist added.
The International Monetary Fund forecast the German economy to remain flat this year and to expand 0.8 percent in 2025.
European Shares Extend Gains On French Budget Optimism
(RTTNews) - European stocks traded higher for a seventh straight session on Friday amid optimism that a new French budget could be passed within a matter of weeks.
French President Emmanuel Macron said he will appoint a new prime minister in the coming days and will get the 2025 budget adopted by parliament.
Meanwhile, investors also awaited the release of U.S. payrolls data later in the day that could alter the odds of a Federal Reserve rate cut later this month.
Closer home, Germany's industrial output decreased unexpectedly in October on weak energy and auto production, official data revealed.
Industrial output registered a 1.0 percent decrease in October, data from Destatis showed - darkening economic outlook. The decline confounded expectations for an increase of 1.0 percent.
On a yearly basis, industrial production slid 4.5 percent after a 4.3 percent fall.
Elsewhere, Halifax reported that Britain's property sector gathered more pace in November, with house prices rising by a faster-than-expected 1.3 percent in November from October, the biggest increase this year.
On an annual basis property prices were up 4.8 percent, the highest rate of increase since November 2022.
The European Central Bank (ECB) meets next Thursday for the last time in 2024 and economists overwhelmingly expect another 25-basis-point rate cut - which would be the fourth such move this year.
The pan European STOXX 600 was up 0.2 percent at 520.60 after rising 0.4 percent on Thursday.
The German DAX gained 0.2 percent and France's CAC 40 rallied 1 percent while the U.K.'s FTSE 100 was marginally lower.
In corporate news, Direct Line Insurance shares jumped nearly 7 percent in London.
The Insurer said it will recommend a sweetened £3.61 billion takeover bid from Aviva, valuing the company at 275 pence per share. Aviva shares were down half a percent.
Housebuilder Berkeley Group fell 1.4 percent after reporting a fall in half-year profits.
China Inflation Sinks 0.6% In November
(RTTNews) - Consumer prices in China were down 0.6 percent on month in November, the National Bureau of Statistics said on Monday.
That missed expectations for a decline of 0.4 percent following the 0.3 percent drop in October.
On a yearly basis, inflation was up just 0.2 percent - again shy of forecasts for an increase of 0.5 percent and down from 0.3 percent in the previous month.
The bureau also said that producer prices dropped 2.5 percent on year versus expectations for a decline of 2.8 percent after sinking 2.9 percent a month earlier.
FTSE 100 Remains Directionless Ahead Of US Jobs Data
(RTTNews) - U.K. stocks were marginally lower on Friday ahead of the U.S. jobs report due later in the day that could alter expectations for Federal Reserve rate cuts.
Meanwhile, Halifax reported that Britain's property sector gathered more pace in November, with house prices rising by a faster-than-expected 1.3 percent in November from October, the biggest increase this year.
On an annual basis property prices were up 4.8 percent, the highest rate of increase since November 2022.
The benchmark FTSE 100 was down 10 points, or 0.1 percent, at 8,340 after edging up by 0.2 percent on Thursday.
Direct Line Insurance shares jumped nearly 7 percent. The Insurer said it will recommend a sweetened £3.61 billion takeover bid from Aviva, valuing the company at 275 pence per share. Aviva shares were down half a percent.
Housebuilder Berkeley Group fell 1.4 percent after reporting a fall in half-year profits.
Yen Falls Against Majors
(RTTNews) - The Japanese yen weakened against other major currencies in the European session on Friday.
The yen fell to 1-week lows of 159.44 against the euro, 192.29 against the pound and 171.58 against the Swiss franc, from early highs of 158.38, 190.93 and 170.37, respectively.
Against the U.S. and the Canadian dollars, the yen edged down to 150.70 and 107.32 from early highs of 149.77 and 106.73, respectively.
If the yen extends its downtrend, it is likely to find support around 164.00 against the euro, 197.00 against the pound, 175.00 against the franc, 156.00 against the greenback and 111.00 against the loonie.
UK Halifax House Price Growth Accelerates
(RTTNews) - UK house prices growth accelerated unexpectedly in November as easing mortgage rates boosted buyer confidence, mortgage lender Halifax said Friday.
House prices grew at a pace of 1.3 percent month-on-month, while the rate was forecast to slow to 0.3 percent from 0.4 percent in October. Moreover, prices increased for the fifth month in a row and marked the strongest growth so far this year.
Property prices climbed 4.8 percent on an annual basis compared to an increase of 4.0 percent in October. Typical property costs GBP 298,083, a new record.
Although demand for mortgages continued to improve, many potential buyers and movers still face significant affordability challenges and buyer confidence may be tested against a changeable economic backdrop, Halifax head of mortgages Amanda Bryden said.
"As we move towards the end of the year and into 2025, positive employment figures and anticipated decreases in interest rates are expected to continue supporting demand," said Bryden.
"This should underpin further house price growth, albeit at a modest pace as borrowing costs remain above the average of a few years ago," Bryden added.
Capital Economics' economist Paul Dales said the leap in house prices in November mirrors the jump in the Nationwide measure and suggests that some relief rally or release of pent-up demand after the Budget has more than offset the latest rise in mortgage rates.
However, the economist noted that it seems very unlikely that prices will continue to rise at this rate for long.
In November, the Bank of England had reduced its benchmark rate by 25 basis points to 4.75 percent. The bank is widely expected to maintain status quo at the December meeting.
In a Financial Times video interview on Wednesday, BoE Governor Andrew Bailey signaled that interest rates could be reduced four times over the next year provided inflation continues to ease.
Japanese Market Modestly Higher
(RTTNews) - The Japanese stock market is trading modestly higher on Monday after briefly slipping into the red, reversing the losses in the previous session. The benchmark SP/ASX 200 is moving to near the 39,200 level, following the mixed cues from Wall Street on Friday, with gains in some index heavyweights and automakers partially offset by weakness in technology stocks.
The benchmark Nikkei 225 Index is up 94.79 or 0.24 percent at 39,185.96, after touching a high of 39,332.55 earlier. Japanese shares ended significantly lower on Friday.
Market heavyweight SoftBank Group is gaining more than 2 percent and Uniqlo operator Fast Retailing is adding more than 1 percent. Among automakers, Honda is gaining almost 1 percent and Toyota is edging up 0.3 percent.
In the tech space, Screen Holdings is losing 1.5 percent and Advantest is declining almost 5 percent, while Tokyo Electron is edging down 0.2 percent.
In the banking sector, Sumitomo Mitsui Financial is gaining almost 1 percent, while Mitsubishi UFJ Financial is edging down 0.2 percent. Mizuho Financial is flat.
The major exporters are mixed. Panasonic and Sony are gaining almost 2 percent each, while Canon is edging up 0.5 percent. Mitsubishi Electric is losing almost 1 percent.
Among other major gainers, Rakuten Group is surging more than 7 percent, while Yamato Holdings and Nomura Research Institute are gaining almost 5 percent each. BANDAI NAMCO, Recruit Holdings and NEXON are advancing almost 3 percent each.
Conversely, ZOZO is losing almost 3 percent.
In economic news, Japan's gross domestic product expanded a seasonally adjusted 0.3 percent on quarter in the third quarter of 2024, the Cabinet Office said on Monday - exceeding expectations for an increase of 0.2 percent following the upwardly revised 0.5 percent increase in the three months prior (originally 0.2 percent). On an annualized basis, GDP rose 1.2 percent - beating forecasts for a 0.9 percent gain, which would have been unchanged.
Capital expenditure was down 0.1 percent on quarter, but that also beat forecasts for a decline of 0.2 percent - which would have been unchanged from Q2. External demand was down 0.1 percent on quarter, while the GDP price index climbed an annual 2.4 percent and private consumption was up 0.7 percent on quarter.
In the currency market, the U.S. dollar is trading in the higher 149 yen-range on Monday.
On Wall Street, stock indexes all moved to the upside early in the session on Friday but turned mixed over the course of the trading day. While the Nasdaq and the SP 500 managed to remain in positive territory and reach new record closing highs, the narrower Dow pulled back into negative territory.
The major averages turned in a mixed performance. The tech-heavy Nasdaq ended the session near its best levels of the day, climbing 159.05 points or 0.8 percent to 19,859.77. The SP 500 also rose 15.16 points or 0.3 percent to 6,090.27, but the Dow fell 123.19 points or 0.3 percent to 44,642.52
The major European markets also ended the day mixed. The French CAC 40 Index jumped by 1.3 percent and the German DAX Index inched up by 0.1 percent, but the U.K.'s FTSE 100 Index fell by 0.5 percent.
Crude oil prices fell on Friday, weighed down by prospects of excess supply in the market. West Texas Intermediate Crude oil futures for January shed $1.10 or 1.61 percent at $67.20 a barrel. WTI crude futures fell nearly 1 percent in the week.
DAX Edges Higher On China Stimulus Optimism
(RTTNews) - German stocks traded slightly higher on Monday after a measure of China's consumer inflation unexpectedly decelerated in November and factory deflation eased, raising hopes for more proactive fiscal and monetary policies next year to boost domestic consumption.
The Politburo, a top decision-making body led by President Xi Jinping, said today it will stabilize property and stock markets while strengthening the "unconventional counter-cyclical" adjustment.
The benchmark DAX was up 24 points, or 0.1 percent, at 20,409 after closing up 0.1 percent on Friday.
Meal-kit company HelloFresh plunged more than 7 percent after reports of a U.S. probe over allegations of child labor.
Laboratory and pharmaceutical supplier Sartorius gained 1.1 percent after naming a new CEO.
Stabilus jumped 3 percent despite the machinery industry company reporting a fall in profit for fiscal 2024.
CompuGroup Medical soared 31 percent. The provider of healthcare software said it is in advanced talks to be acquired by CVC Capital Partners.
Sensex, Nifty Edge Lower As FMCG Stocks Drag
(RTTNews) - Indian shares edged lower in cautious trade on Monday as weak inflation data from China suggested Beijing's recent efforts to shore up faltering economic demand are having only limited impact.
The benchmark SP/BSE Sensex was down 145 points, or 0.2 percent, at 81,52 in early trade while the broader NSE Nifty index was down 56 points, or 0.2 percent, at 24,621.
Among the prominent decliners, Trent, Nestle India, Britannia Industries, Hindustan Unilever and Tata Consumer Products fell 2-4 percent.
Godrej Consumer Products plunged more than 9 percent after it warned of a challenging demand environment and external pressures affecting its key business segments.
Tata Power rose about 1 percent after reports it will incur a capex of Rs 1.25 lakh crore between 2026 and 2030.
Welspun Corp rallied 2.1 percent on securing two large orders-one each for the supply of HSAW-coated pipes and HSAW-coated pipes for Natural Gas Pipeline Projects in the U.S.
Delta Corp advanced 1.3 percent as it announced a revised plan for demerging its hospitality and real estate businesses.
Easy Trip Planners jumped nearly 2 percent after confirming new core strategic acquisitions.
Paytm gained 1 percent on news the company is selling its stake in Japan's PayPay Corporation to SoftBank in a Rs 2,364 crore deal.
Japan GDP Gains 0.3% In Q3
(RTTNews) - Japan's gross domestic product expanded a seasonally adjusted 0.3 percent on quarter in the third quarter of 2024, the Cabinet Office said on Monday - exceeding expectations for an increase of 0.2 percent following the upwardly revised 0.5 percent increase in the three months prior (originally 0.2 percent).
On an annualized basis, GDP rose 1.2 percent - beating forecasts for a 0.9 percent gain, which would have been unchanged.
Capital expenditure was down 0.1 percent on quarter, but that also beat forecasts for a decline of 0.2 percent - which would have been unchanged from Q2.
External demand was down 0.1 percent on quarter, while the GDP price index climbed an annual 2.4 percent and private consumption was up 0.7 percent on quarter.
China Inflation Eases Unexpectedly To 5-Month Low; PPI Falls
(RTTNews) - China's consumer price inflation eased unexpectedly to a five-month low in November and producer prices continued to fall suggesting that the sequence of stimulus measures initiated by Beijing had limited impact on reviving domestic demand.
The consumer price index posted an annual increase of 0.2 percent, the National Bureau of Statistics reported Monday. Inflation was expected to rise to 0.5 percent from 0.3 percent in October.
The slight rise in November inflation was driven by food prices, which climbed 1 percent. Pork prices surged 13.7 percent and fresh vegetable prices moved up 10.0 percent.
Core inflation that excludes food and energy rose slightly to 0.3 percent in November from 0.2 percent in October.
On a monthly basis, the decline in consumer prices doubled to 0.6 percent from 0.3 percent in October. Economists had forecast a 0.4 percent drop for November.
Data showed that producer prices decreased for the 26th consecutive month. Producer prices fell 2.5 percent on a yearly basis but slower than the 2.9 percent decrease posted in the previous month. Prices were expected to fall 2.8 percent.
With the boost from stimulus likely to be short-lived and the fundamental causes behind the imbalance between supply and demand not being adequately addressed, much upside to inflation is unlikely going forward, Capital Economics' economist Gabriel Ng said. The economist expects inflation to average just 0.5 percent in 2025 and 2026.
Little Movement Expected For Thai Stock Market
(RTTNews) - The Thai stock market bounced higher again on Friday, one session after ending the two-day winning streak in which it had advanced almost 30 points or 2 percent. The Stock Exchange of Thailand now sits just above the 1,450-point plateau and it's likely to hold steady in that neighborhood again on Monday.
The global forecast for the Asian markets is flat to higher on optimism over the outlook for interest rates. The European and U.S. markets were mixed and fairly flat on Friday and the Asian bourses are expected to follow that lead.
The SET finished slightly higher on Friday following gains from the food, finance, consumer and resource sectors.
For the day, the index rose 1.14 points or 0.08 percent to finish at 1,451.96 after trading between 1,448.21 and 1,454.97. Volume was 8.716 billion shares worth 43.733 billion baht. There were 245 decliners and 221 gainers, with 199 stocks finishing unchanged.
Among the actives, Advanced Info rallied 2.08 percent, while Thailand Airport sank 0.81 percent, Asset World shed 0.54 percent, Banpu retreated 1.69 percent, Bangkok Bank rose 0.33 percent, Bangkok Dusit Medical dropped 0.97 percent, B. Grimm advanced 0.93 percent, BTS Group slumped 0.86 percent, CP All Public declined 1.56 percent, Energy Absolute plunged 3.74 percent, Gulf soared 2.77 percent, Kasikornbank collected 0.65 percent, Krung Thai Bank added 0.49 percent, Krung Thai Card gained 0.52 percent, SCG Packaging plummeted 4.69 percent, Siam Concrete perked 0.27 percent, True Corporation stumbled 2.48 percent, TTB Bank spiked 2.81 percent and Charoen Pokphand Foods, Siam Commercial Bank, PTT Global Chemical, PTT Oil Retail, PTT, PTT Exploration and Production, Thai Oil and Bangkok Expressway were unchanged.
The lead from Wall Street is inconsistent as the major averages opened higher on Friday, although the Dow was unable to hold its gains and the markets ended mixed.
The Dow slumped 123.18 points or 0.28 percent to finish at 44,642.52, while the NASDAQ rallied 159.07 points or 0.81 percent to close at 19,859.77 and the SP 500 slipped 15.16 points or 0.25 percent to end at 6,090.27.
The Dow continued to clump amid a continued decline by shares of UnitedHealth (UNH) after that company's CEO Brian Thompson was gunned down last week.
But the NASDAQ and the SP continued to benefit from a positive reaction to Friday's closely watched Labor Department report showing employment in the U.S. surged more than expected in November.
However, the report said the unemployment rate crept up to 4.2 percent in November from 4.1 percent in October, increasing confidence the Federal Reserve will lower interest rates by another 25 basis points later this month.
Oil prices fell on Friday, weighed down by prospects of excess supply in the market. West Texas Intermediate Crude oil futures for January shed $1.10 or 1.61 percent at $67.20 a barrel. WTI crude futures fell nearly 1 percent in the week.
Google Sues Consumer Finance Regulator Over Supervision Of Payment Arm
(RTTNews) - Google has filed a lawsuit against the U.S. consumer finance regulator, which placed the tech major's payment unit under federal supervision, reports said.
Earlier on Friday, the Consumer Financial Protection Bureau or CFPB announced its order to supervise Google Payment Corp., which could result in routine inspections and monitoring like those imposed on banks.
CFPB said the decision was taken after it had determined, following consumer complaints, that Google Payment services had posed a risk to consumers.
The Congress has given CFPB the authority to supervise certain nonbank financial companies to ensure that all consumers have access to markets for consumer financial products and services and that they are fair, transparent, and competitive.
In its latest statement, the agency said there are multiple indicia that Google Payment meets the standard for supervision under the Consumer Financial Protection Act or CFPA.
For making the decision, the CFPB cited consumer complaints about Google Pay Balance and Google's peer-to-peer or P2P payment platform, which were accessible through the Google Pay App, a mobile app available on both Android and iOS devices.
It was indicated that Google Payment had failed to investigate complaints about erroneous transfers, among other potential violations. The consumer complaints alleged that Google has not taken adequate steps to monitor, prevent, and detect fraud or to alert consumers to the risk of fraud.
The agency added that the law allowed for supervision even if the company has discontinued these services. Both Google Pay and the P2P platform have been discontinued, and are no longer provided in the U.S.
In making the order, the agency checked around 300 consumer complaints, mainly about reports of fraud, scams and unauthorized transactions, and found that the company had engaged in wrongdoing.
Meanwhile, the agency noted that the purpose of supervision is not to impose sanctions for legal violations, and that a determination that supervision is warranted is not a finding that an entity is guilty of wrongdoing.
Following the CFPB order, Google Payment said it was challenging the order in court to block it, stating that the regulator had relied on a small number of unsubstantiated complaints concerning a product, which it no longer offers.
The company's complaint said, "As a matter of common sense, a product that no longer exists is incapable of posing such risk."
In late November, CFPB had finalized a rule to supervise technology firms such as Google, Apple Inc. and others that offer digital funds transfer and payment wallet apps, and treat them more like banks. The US consumer watchdog then said the rule on federal oversight of popular digital payment apps by the largest non-bank companies was aimed to protect personal data, reduce fraud, and stop illegal 'debanking.'
The rule, following a proposal from last year, is expected to supervise Big Tech and other widely used digital payment apps handling over 50 million transactions annually, in U.S. dollars.
Japan Has Y2.456 Trillion Current Account Surplus
(RTTNews) - Japan posted a current account surplus of 2.456 trillion yen in October, the Ministry of Finance said on Monday - down 13 percent from a year earlier.
That beat forecasts for a surplus of 2.318 trillion yen and was up from 1.717 trillion yen in September.
Exports were up 2.9 percent on year at 9.365 trillion yen and imports fell 0.7 percent to 9,521 trillion yen for a trade deficit of 155.7 billion yen.
The capital account showed a surplus of 3.4 billion yen, while the financial account saw a surplus of 1.896 trillion yen.
European Shares Likely To Drift Lower Ahead Of Busy Week For Central Banks
(RTTNews) - European stocks are likely to open lower on Monday as investors ponder over how the prospect of government drift and upheaval will affect consumers and businesses in Germany and France.
The European Central Bank (ECB) is expected to cut interest rates again this week amid worries about how fiscal policy will develop in both countries.
The Bank of Canada and Swiss National Bank are also expected to ease policy, while the Brazilian central bank may hike rates to arrest inflation pressures.
Australia's central bank is likely to keep its key interest rate on hold as a resilient labor market keeps inflation elevated.
Asian markets traded lower, with Seoul stocks leading regional losses as investors braced for a period of heightened volatility.
Investors faced the risk of a prolonged stalemate after Saturday's impeachment motion against Yoon failed and the main opposition party said it will push quickly for another vote.
Elsewhere, Chinese inflation data disappointed and signaled continued demand weakness. Japan's Q3 GDP was revised higher, testing bets on a December Bank of Japan rate hike.
China's consumer price growth slowed in November and factory-gate prices extended declines, adding to pressure on officials to do more to revive consumer sentiment at a key policy meeting this month.
In geopolitical news, the anti-government rebels on Sunday announced full control of Homs, the third main city in the nation, and the capital Damascus after Syrian President Bashar al-Assad fled the country, ending a fifty-year regime.
Russian media reported that the ousted President had been granted asylum in Moscow on humanitarian grounds.
Oil prices traded higher as tensions in Syria outweighed news of Saudi Arabia cutting prices by more than expected for buyers in Asia.
Gold edged up slightly after China's central bank expanded its gold reserves in November, ending a six-month pause to a purchasing spree.
U.S. stocks ended mixed on Friday after the release of better-than-expected jobs and consumer sentiment data.
Data showed non-farm payroll employment shot up by 227,000 jobs in November after rising by an upwardly revised 36,000 jobs in October.
The unemployment rate crept up to 4.2 percent from 4.1 percent in October, helping increase investors' confidence that the Federal Reserve will lower interest rates by another 25 basis points later this month.
The tech-heavy Nasdaq Composite climbed 0.8 percent and the SP 500 edged up by 0.3 percent to reach new record closing highs, while the Dow dipped 0.3 percent.
European stocks closed broadly higher on Friday amid optimism about the French government passing a new budget within a matter of weeks.
The pan European STOXX 600 gained 0.2 percent. The German DAX inched up by 0.1 percent and France's CAC 40 surged 1.3 percent while the U.K.'s FTSE 100 shed half a percent.
Sensex, Nifty Set For Positive Opening
(RTTNews) - Indian shares are likely to open on a firm note Monday as investors react to mixed global cues and await IIP and CPI data this week for directional cues.
Global cues, oil price movements, FII flows and any new developments on the geopolitical front may influence sentiment as the week progresses.
The tensions between Israel and Iran remain a "source of concern" and India's diplomatic efforts are focused on addressing this issue, External Affairs Minister S Jaishankar said on Sunday.
Asian markets were mostly lower this morning as traders grappled with continued political upheaval in South Korea and awaited the outcome of a key meeting of Chinese officials.
China's consumer price growth slowed in November and factory-gate prices extended declines, suggesting persistent weak domestic demand.
The dollar was marginally higher after new data suggested the U.S. job market remains solid enough to keep the economy going, but not so strong that it raises immediate worries about inflation. A U.S. CPI print due this week could affect the outlook for further easing.
Oil prices were little changed after the Syrian government was toppled and Saudi Arabia cut prices for buyers in Asia by more than expected.
Gold edged higher after China's central bank expanded its gold reserves in November, ending a six-month pause to a purchasing spree.
Investors also sought direction from a slew of central bank meetings due this week.
U.S. stocks ended mixed on Friday after the release of better-than-expected jobs and consumer sentiment data.
Data showed non-farm payroll employment shot up by 227,000 jobs in November after rising by an upwardly revised 36,000 jobs in October.
The unemployment rate crept up to 4.2 percent from 4.1 percent in October, helping increase investors' confidence that the Federal Reserve will lower interest rates by another 25 basis points later this month.
The tech-heavy Nasdaq Composite climbed 0.8 percent and the SP 500 edged up by 0.3 percent to reach new record closing highs, while the Dow dipped 0.3 percent.
European stocks closed broadly higher on Friday amid optimism about the French government passing a new budget within a matter of weeks.
The pan European STOXX 600 gained 0.2 percent. The German DAX inched up by 0.1 percent and France's CAC 40 surged 1.3 percent while the U.K.'s FTSE 100 shed half a percent.
Asian Shares Decline As China Deflation Persists
(RTTNews) - Asian stocks retreated on Monday, as Chinese inflation data signaled continued demand weakness and political turmoil continued in South Korea after President Yoon survived impeachment.
Japanese markets outperformed to end slightly higher after Q3 GDP was revised higher, testing bets on a December Bank of Japan rate hike.
The U.S. started the week on a firm note as Syrian rebels seized the capital Damascus unopposed on Sunday in historic turn of events, bringing an abrupt end to President Bashar al-Assad's 13-year rule and the six-decade-long dominance of the Assad family.
Oil and gold prices edged higher in Asian trading due to rising tensions in the Middle East.
China's Shanghai Composite index finished marginally lower at 3,402.53 as weak inflation readings underscored the need for more drastic stimulus measures. Hong Kong's Hang Seng index closed up 2.76 percent at 20,414.09 after a late surge.
China's consumer price inflation eased unexpectedly to a five-month low in November and producer prices decreased for the 26th consecutive month, suggesting that the sequence of stimulus measures initiated by Beijing had limited impact on reviving domestic demand.
Japanese markets rose slightly as data revealed GDP grew in July-September at a faster pace than initially reported due to upward revisions in capital investment and exports.
The Nikkei average closed up 0.18 percent at 39,160.50 after a choppy session. The broader Topix index settled 0.27 percent higher at 2,734.56.
AI-focused startup investor SoftBank Group and Uniqlo parent firm Fast Retailing both gained around 2 percent.
Rakuten Group surged 6.7 percent after the e-commerce company announced a shareholder benefits program. Chip-related shares declined, with Advantest falling 4.7 percent.
Seoul stocks led regional losses after Yoon survived an impeachment vote in parliament and a defense ministry spokesman said he still is commander in chief, deepening a leadership crisis.
The Kospi average tumbled 2.78 percent to 2,360.58 despite the country's financial authorities pledging to support the won and the country's financial markets.
Automakers Hyundai Motor and Kia Corp fell 1.2 percent and 3 percent, respectively.
Australian markets ended on a flat note as investors awaited the Reserve Bank of Australia's rate decision. Miners and banks led losses, with Fortescue Metals Group losing 1.2 percent and ANZ tumbling 3.6 percent.
Woolworths rose 1.1 percent after the top grocer agreed to increase wages to resolve a strike action by industrial union workers.
Across the Tasman, New Zealand's benchmark SP/NZX-50 index finished marginally lower at 12,801.80.
U.S. stocks ended mixed on Friday after the release of better-than-expected jobs and consumer sentiment data.
Data showed non-farm payroll employment shot up by 227,000 jobs in November after rising by an upwardly revised 36,000 jobs in October.
The unemployment rate crept up to 4.2 percent from 4.1 percent in October, helping increase investors' confidence that the Federal Reserve will lower interest rates by another 25 basis points later this month.
The tech-heavy Nasdaq Composite climbed 0.8 percent and the SP 500 edged up by 0.3 percent to reach new record closing highs, while the Dow dipped 0.3 percent.
Swiss Market Ends Marginally Down
(RTTNews) - The Switzerland market ended marginally down on Friday after spending almost the entire duration of the day's session in negative territory.
The benchmark SMI closed down 10.14 points or 0.09% at 11,780.65, after moving in a very narrow range between 11,747.88 and 11,808.87.
Holcim ended nearly 1.5% down. The company announced that it plans to split with its North American business and list the spinoff on the New York Stock Exchange and SIX Swiss Exchange.
Swiss Re, Schindler Ps, Zurich Insurance Group and Alcon closed lower by 0.8 to 1%.
Novartis, Kuehne + Nagel, UBS Group and Lindt Spruengli drifted down 0.4 to 0.7%. Swiss Life Holding and Nestle closed modestly lower.
Richemont rallied nearly 3% and Swatch Group closed up 2.61%. Adecco gained 1.87% and Straumann Holding ended with a gain of 1.4%.
Sandoz Group, Givaudan, Julius Baer, SIG Group, Logitech International, VAT Group, Lonza Group and Sonova closed higher by 0.4 to 1%.
TSX Hits New Record High, Ends Slightly Up
(RTTNews) - The Canadian market closed slightly up on Friday with technology stocks contributing to the positive close. Data showing a much bigger than expected increase in Canadian jobs growth in the month of November aided sentiment.
The benchmark SP/TSX Composite Index, which hit a new record high at 25,826.98, closed up 11.76 points or 0.05% at 25,691.80. The index gained 0.17% in the week.
Data from Statistics Canada said employment in Canada rose by 51,000 in November of 2024, the most in seven months, extending the slight change of 14,500 from the previous month and well above the market consensus of 25,000.
Meanwhile, the unemployment rate in Canada rose to 6.8% in November, from 6.5% in the previous month. The unemployment rate was expected to come in at 6.6%.
A separate report from Statistics Canada said average hourly earnings in Canada increased to C$ 36.73 in October over the previous month.
The Ivey Business School said that the Ivey Purchasing Managers Index in Canada rose to 52.3 in November, up from 52.0 in October. The Index was expected to rise to 53.1.
Laurentian Bank of Canada (LB.TO) climbed 5.4% after reporting an increase in quarterly earnings. For the fourth quarter of fiscal 2024, Laurentian Bank reported net income of $40.7 million and diluted earnings per share of $0.88, compared with net income of $30.6 million and diluted earnings per share of $0.67 for the fourth quarter of 2023.
Canadian Western Bank (CWB.TO), which was scheduled to report its earnings today, has announced that it will announce its earnings in mid-December. The stock closed down 5.4%.
BRP Inc (DOO.TO) surged 7% despite reporting lower earnings. The company reported a net income of $27.3 million for the third-quarter, a decrease of 69.7% compared to the year-ago quarter.
Technology stock Bitfarms (BITF.TO) soared nearly 10%. Shopify Inc (SHOP.TO), Sangoma Technologies (STC.TO), Enghouse Systems (ENGH.TO), Celestica Inc (CLS.TO), Coveo Solutions (CVO.TO), Descartes Systems Group (DSG.TO) and Lightspeed Commerce (LSPD.TO) gained 2 to 5%.
European Stocks Close Broadly Higher
(RTTNews) - European stocks closed broadly higher on Friday despite political uncertainty in France, as data showing stronger than expected growth in U.S. non-farm payroll employment aided sentiment.
Although the strong jobs data has dimmed the prospects of aggressive rate cuts by the U.S. central bank, the modest uptick in unemployment in the world's largest economy has raised hopes that the Fed will lower interest rates by another 25 basis points later this month.
Optimism about the French government passing a new budget within a matter of weeks helped underpin sentiment. French President Emmanuel Macron said he will appoint a new prime minister in the coming days and will get the 2025 budget adopted by parliament.
The European Central Bank (ECB) meets next Thursday for the last time in 2024 and economists overwhelmingly expect another 25-basis-point rate cut - which would be the fourth such move this year.
The pan European Stoxx 600 gained 0.18%. Germany's DAX edged up 0.13% and France's CAC 40 closed higher by 1.31%. The U.K.'s FTSE 100 closed down 0.49% and Switzerland's SMI edged down 0.09%.
Among other markets in Europe, Austria, Belgium, Denmark, Finland, Russia, Sweden and Turkiye closed higher.
Iceland, Ireland, Netherlands, Norway, Portugal and Spain ended weak, while Greece and Poland closed flat.
In the UK market, BM European Value Retail gained about 2.7%. JD Sports Fashion climbed 2.2%. Rentokil Initial, ICG, RightMove, Convatec Group, Schrodders, Croda International, Barratt Redrow, Halma and IMI advanced 1 to 2%.
Frasers Group lost 4%. United Utilities and Severn Trent both declined sharply following a rating downgrade.
Spirax Group, Endeavour Mining, Next and Tesco lost 2 to 3%. DCC, National Grid, Pershing Square Holdings, Melrose Industries, Marks Spencer, BAE Systems, Reckitt Benckiser, Hiscox, Associated British Foods, Fresnillo and Compas Group closed lower by 1 to 1.7%.
In the German market, Bayer, BMW, Henkel, Zalando, Puma, Beiersdorf, Volkswagen, Vonovia, Adidas, E.ON, Infineon, Continental, Mercede-Benz, Brenntag and BASF closed with sharp to moderate gains.
Siemens Energy, Rheinmetall, HeidelbergCement, Munich RE, Fresenius, Allianz, Commerzbank, MTU Aero Engines, Deutsche Bank and Siemens Healthineers closed lower by 0.6 to 1.7%.
In the French market, Kering surged more than 6%. LVMH rallied nearly 3.5%. Hermes International gained nearly 3.5%. Stellantis, Renault, Publicis Groupe, L'Oreal, Dassault Systemes, Edenred and Saint Gobain advanced 2 to 3.1%.
Vivendi, Capgemini, Eurofins Scientific, Michelin, Societe Generale, Schneider Electric, Airbus Group, Pernod Ricard, AXA and BNP Paribas gained 1 to 2%.
In economic news, the euro area economy expanded as initially estimated in the third quarter on household and government spending and investment, revised data published by Eurostat showed. Gross domestic product climbed 0.4% sequentially, which was double the 0.2% growth posted in the second quarter. The rates matched the preliminary estimate.
Germany's industrial output decreased unexpectedly in October on weak energy and auto production, data from Destatis showed,
Industrial output registered a 1% decrease in October, the data showed. The decline confounded expectations for an increase of 1%. On a yearly basis, industrial production slid 4.5% after a 4.3% fall.
France's foreign trade deficit decreased in October as exports grew amid a fall in imports. The trade deficit dropped to EUR 7.67 billion in October from EUR 8.42 billion in the previous month. The expected shortfall was EUR 8.0 billion. Exports posted a monthly increase of 0.9% in October, while imports showed a decline of 0.5%.
Elsewhere, Halifax reported that Britain's property sector gathered more pace in November, with house prices rising by a faster-than-expected 1.3 percent in November from October, the biggest increase this year.
On an annual basis property prices were up 4.8%, the highest rate of increase since November 2022.
CAC 40 Rises As China Vows More Proactive Stimulus
(RTTNews) - French stocks rose on Monday as investors cheered signs of fresh stimulus measures in China.
The Politburo, a top decision-making body led by President Xi Jinping, said today it will stabilize property and stock markets while strengthening the "unconventional counter-cyclical" adjustment.
Investors also monitored the flare-up of tensions in Syria and awaited a European Central Bank policy meeting and the U.S. inflation figures this week for direction.
The ECB is expected to cut interest rates again this week amid worries about how fiscal policy will develop in Germany and France.
The benchmark CAC 40 was up 40 points, or half a percent, at 7,467 after rallying 1.3 percent on Friday.
China-related LVMH, Hermes and Kering were up 1-3 percent.
Dollar Rises On Strong Economic Data
(RTTNews) - The U.S. dollar climbed higher on Friday thanks to data showing a bigger than expected addition in non-farm payroll employment in the month of November, and on a report showing an improvement in consumer sentiment.
The Labor Department data said non-farm payroll employment shot up by 227,000 jobs in November after rising by an upwardly revised 36,000 jobs in October.
Economists had expected employment to jump by 200,000 jobs compared to the uptick of 12,000 jobs originally reported for the previous month.
Meanwhile, the report said the unemployment rate crept up to 4.2% in November from 4.1% in October. The modest increase matched economist estimates.
The uptick by the unemployment rate increased confidence the Federal Reserve will lower interest rates by another 25 basis points later this month.
A report released by the University of Michigan on Friday showed consumer sentiment in the U.S. improved by slightly more than anticipated in the month of December.
The University of Michigan said its consumer sentiment index climbed to 74.0 in December from 71.8 in November. Economists had expected the index to rise to 73.0.
The consumer sentiment index reached its highest level since April, as the current economic conditions index spiked to 77.7 in December from 63.9 in November.
The dollar index climbed to 106.12 this afternoon, and despite easing to 105.98, remained well placed above the flat line, gaining about 0.25%.
Against the Euro, the dollar firmed to 1.0567 after having weakened to 1.0630 a unit of the European currency earlier in the day. The dollar gained against Pound Sterling to 1.2743.
Against the Japanese currency, the dollar eased to 149.98 yen. The dollar strengthened to 0.6392 against the Aussie, gaining nearly 1%.
The Swiss franc traded flat against the greenback at CHF 0.8786, while the Loonie weakened to 1.4158 a unit of the U.S. currency from 1.4026.
U.S. Dollar Higher After Solid Jobs Data
(RTTNews) - The U.S. dollar firmed against its most major counterparts in the New York session on Friday, as stronger-than-expected jobs data for November reinforced the odds of a Federal Reserve rate cut later this month.
Data from the Labor Department showed that non-farm payroll employment shot up by 227,000 jobs in November after rising by an upwardly revised 36,000 jobs in October.
Economists had expected employment to jump by 200,000 jobs compared to the uptick of 12,000 jobs originally reported for the previous month.
Meanwhile, the report said the unemployment rate crept up to 4.2 percent in November from 4.1 percent in October. The modest increase matched economist estimates.
Market participants currently expect the Fed to lower rates by another 25 basis points at the December meeting, but there remains considerable uncertainty about the likelihood of continued rate cuts at future meetings.
The greenback edged up to 1.2725 against the pound and 1.0543 against the euro, from its early more than 3-week lows of 1.2811 and 1.0629, respectively. The next possible resistance for the currency is seen around 1.24 against the pound and 1.04 against the euro.
The greenback recovered to 0.8783 against the franc, from an early 4-week low of 0.8733. The currency is likely to locate resistance around the 0.89 level.
The greenback climbed to a fresh 4-month high of 0.6383 against the aussie and a 10-day high of 0.5826 against the kiwi, from an early 2-day low of 0.6455 and a 3-day low of 0.5889, respectively. The currency is poised to challenge resistance around 0.62 against the aussie and 0.56 against the kiwi.
The greenback touched 1.4156 against the loonie, setting a 10-day high. If the greenback rises further, it is likely to test resistance around the 1.43 region.
In contrast, the greenback weakened to a 3-day low of 149.35 against the yen. The currency is seen finding support around the 146.00 level.
