Asian shares declined on Friday, as optimism over China’s rescue measures faded and investors parsed weak results from Intel Corp. Shares in mainland China and Hong Kong dropped after the biggest three-day rally since 2022. Morgan Stanley cut its targets for major Chinese stock indexes, saying the country’s challenges with debt, demographics and deflation are among hurdles to further equity gains. Japan’s Nikkei index fell about 1.5% while Korea’s benchmark gauge gained. US equity futures retreated Friday after Intel delivered a disappointing forecast, while Europe’s advanced. Inflation in Tokyo cooled below 2% for the first time in more than a year and a half, a sharper-than-forecast deceleration. The latest Bank of Japan’s minutes released on Friday showed board members are mulling the strength of price growth and the timing of a widely-expected interest hike. The inflation data “is likely to make the Bank of Japan think twice about ending negative rates sooner than later,” according to Taro Kimura, an economist at Bloomberg Intelligence, in a report. Markets in Australia and India are closed for holidays. Wall Street traders pushed stocks to another all-time high in a sixth straight day of gains as the economy remains resilient. The latest US gross domestic product data defied forecasts for a recession, bolstering the outlook for Corporate America. A closely watched measure of underlying inflation was in line with the Federal Reserve’s 2% target, seen by many as an encouraging signal. The S&P 500 closed near 4,900 and US 10-year yields slid 6 basis points to 4.12%. Swap contracts continued to fully price in a Fed interest-rate cut in May, while boosting bets on total cuts this year to around 140 basis points. The dizzying equity rally has been fueled by falling inflation and the possibility that the Fed will cut rates in 2024. It has already blown past the Wall Street consensus over where the index will finish the year. On Wednesday, the gauge surpassed 4,867, the average level where forecasters in a Bloomberg survey pegged it 11 months from now. With the US stock market at a record, the question for many investors right now is how much firepower is left in the rally that began last year. Whenever the S&P 500 has climbed from a bear market to new heights, returns in the subsequent six and 12 months have been handily above average, Bloomberg Intelligence data going back to 1950 showed. BI’s analysis of market performance after the US stock benchmark hit a fresh high found the median forward six-month return was roughly 9.2%, above the median 6.3% return for all half-year periods going back more than 70 years. The same pattern is seen in forward 12-month performance, with median returns at 15% after a new all-time high versus just 13% in overlapping yearlong time frames. Elsewhere, oil rose to the highest in about two months as US inventories, Chinese stimulus and an attack on a Russian refinery ignited a rush of trend-following algorithmic buying. US After Hours INTC -9.1%, KLAC -5.6%, FICO -5%, WDC -4.1%, TMUS -3.1%, V -3%, LHX -2.5% lower on earnings; APPF +6.7%, FHI +6.4% higher on earnings; PTCT -11.3% falls on Translarna news.
Nikkei -1.34% Hang Seng -1.57% CSI -0.31% Shanghai -0.05% Shenzen -0.68%
Eur$ 1.0840 CNH 7.1858 CNY 7.1778 JPY 147.76 GBP 1.2699 CHF 0.8671 RUB 89.1553 TRY 30.3108 WTI$ 76.99 -0.48% Gold 2,022 +0.06% BTC 40,122 +0.54% ETH 2,221 +0.14%
S&P -0.40% Nasdaq -0.74% EuroStoxx -0.04% FTSE +0.35% Dax -0.30% SMI +0.35%
Macro :
- US Investigation Into AI Has the Potential to Reverse the Rally
- Deutsche Numis Survey Flags More UK M&A in 2024, Bigger Deals
- UK M&A to Take Off in 2024 as Survey Sees Transformational Deals
Keep an eye on :
Keep an eye on :
- MT NA : ArcelorMittal May Get €1B-€1.2B Subsidy in Germany: Handelsblatt
- AV/ LN : Unusual UK Mortality Spike Could Hit Legal & General, Aviva
- BHP LN : Vale and BHP Ordered to Pay $9.7 Billion for 2015 Dam Disaster
- BT/A LN : BT Network Challenger CityFibre Plans to Expand Through Deals
- CRBN NA : Corbion to Sell Emulsifiers Business to Kingswood for $362m Cash
- DLG IM : De' Longhi 4Q Revenue EU1.08B
- DTE GY : T-Mobile Phone Net Additions Show Its Lead in 5G Industry: React
- EDP PL : EDP Power Generation Falls 8%; Output From Coal, Gas Units Drops
- ELISA FH : Elisa FY Dividend per Share Beats Estimates
- EQNR NO : Equinor & BP in Swap Transaction for Empire, Beacon Projects
- SFER IM : Ferragamo Confirms Delay in Turnaround, Results In Line: React
- GFT GY : GFT Buys Sophos Solutions From Advent INTL
- HAL NA : HAL Holding Suggests FY Dividend €2.85/Share VS. €2.50/Share Y/Y
- IFX GY : Infineon Seeks to Ramp up Hiring in India, Vietnam: Nikkei
- PST IM : Italy to Sell Poste Italiane Minority Stake, Maintain Control
- DEC FP : JCDecaux 4Q Adjusted Revenue Beats Estimates
- KNEBV FH : Kone 4Q Orders Beats Estimates
- LONN SW : Lonza FY Core Ebitda Beats Estimates, Lonza Taps Heineken’s Huët to Succeed Baehny as Chairman
- MC FP : LVMH 4Q Organic Revenue Beats Estimates
- MC FP : LVMH 4Q Organic Revenue Beats Estimates
- MC FP : LVMH to Name Alexandre Arnault, Frederic Arnault to Board
- MC FP : *LVMH'S Arnault says definitely not considering asset spin-off
- ORSTED DC : Orsted Withdraws From Maryland Orders for Two Wind Projects
- PNL NA : PostNL Prelim 4Q Normalized Ebit Misses Estimates
- RCO FP : Remy Cointreau 3Q Revenue Meets Estimates
- ROG SW : Roche Presents 72-Week Data From Two Phase III Vabysmo Trials
- SAN FP : Regeneron & Sanofi Get FDA Ok for Dupixent for Kids With EoE
- SGSN SW : SGS FY Adjusted Operating Income Misses Estimates
- DIM FP : Sartorius Stedim Biotech FY Underlying Ebitda Beats Estimates
- SRT GY : Sartorius FY Sales Meets Estimates
- LIGHT NA : Signify 4Q Comparable Sales Misses Estimates, Signify Profit Slumps; Sees Challenging Conditions in Year Ahead
- TELIA SS : Telia 4Q Adjusted Ebitda Meets Estimates
- UBSG SW : UBS AM China Client Coverage Head Min Huang to Leave Bank: Rtrs
- VIS SM ; Viscofan to Buy Back Shares up to EU76m
- VOLVB SS :
- WDP BB : WDP Boosts 2024 Dividend per Share Forecast, Beats Estimates