5 minutes ago
Credit Suisse shares fell
ATR shares of Swiss lender Credit Suisse fell 21% in pre-market trade.
Saudi National Bank said it could not provide more funds, Reuters reported. “We can’t because we go above 10%. It’s a regulatory issue,” Saudi National Bank President Ammar Al Qudhairy told Reuters on Wednesday.
The troubled Swiss bank said earlier this week it had identified “material weaknesses” in its financial statements for 2022 and 2021.
– John Mellay
11 minutes ago
Several European bank stocks were off after a brisk sell-off
Several European banking names were off on Wednesday as a sharp fall in Credit Suisse shares dragged down the sector – along with the broader market.
Societe Generale’s holdings are suspended along with Italy’s Monte dei Paschi and UniCredit. Credit Suisse, meanwhile, fell 20% after its biggest investor said it would not provide more aid to the troubled bank.
The moves come as traders around the world grapple with the fallout from the Silicon Valley bank failure.
“Silicon Valley bank failure spills over into European stock markets,” wrote Citi strategist Beata Manthe. “Even as U.S. authorities step in to contain contagion risks, broader spillovers may still play out as bank stocks continue to fluctuate.”
Manthe noted that conditions are already ripe for profit-making in European markets. “However, investors are net long in European banks, despite maxing out their positions only a month ago. This means stabilization can still be relaxed.”
– Fred Imbert, Michael Bloom
3 hours before
European stock markets opened lower
European stock markets opened lower as banking stocks remained in negative territory following the global Silicon Valley banking meltdown.
The pan-European Stoxx 600 index fell 0.4% in early trade, with most sectors and major stock markets trading in the red. Retail stocks were the losers, falling 1.9%, followed by oil and gas stocks, which fell 1.4%. Bank stocks fell 0.5%.
– Hannah Ward-Glenton
3 hours before
BMW raises margin forecast, expecting higher deliveries as it ramps up electric output
German carmaker BMW expects an EBIT (earnings before interest and taxes) range of 8-10% for its vehicle range in 2023, with deliveries set. A slight increase from 2022 onwards. Selling prices are targeted to remain at a “stable” level.
The company reaffirmed full-year 2022 results reported last weekIncluding EBIT for its auto division of 10.6 billion euros ($11.4 billion), it had a margin of 8.6% last year.
BMW is pursuing an extensive rollout of battery-electric vehicles, and it expects to reach a 50% BEV share by 2030. The company’s BEV share will be 15% by 2023.
— Ruxandra Iordache
9 hours ago
China’s industrial production, retail sales rise in January-February period
China’s industrial production rose 2.4% in the January-February period, according to official data.
Retail sales in the same period rose by 3.55% in line with expectations.
China’s fixed-asset investment rose 5.5% in the first two months of the year, beating the expectations of economists polled by Reuters who had forecast growth of 4.4%.
China’s offshore yuan weakened and traded at 6.8822 against the US dollar after the data was released.
The People’s Bank of China kept the rate on 481 billion yuan of one-year medium-term credit facility loans at 2.75%.
10 hours ago
Japanese banks rise as Wall Street banks recover
Japanese stocks rose in morning trade on Wednesday, reversing the direction seen earlier in the week and following a recovery in Wall Street banks.
Shares in Tokyo-listed Mitsubishi UFJ Financial Group rose 3.25%, Sumitomo Mitsui Financial Group rose 2.73% and Mizuho Financial Group rose 2.04%. Nomura Holdings rose 1.7%.
Meanwhile, technology major SoftBank Group saw a lower loss of 0.62%.
7 hours ago
Health-care, technology stocks lead the Hong Kong rally
Hong Kong’s Hang Seng Index rose 2.35% in the Asia-Pacific region on Wednesday, driven by health care and technology stocks.
Some of the top gainers on the index were search engine giant Baidu, which rose 6.28%, Alibaba Health Information Technology 5.59% and Internet company Netease, whose shares rose 4.02%.
However, the top gainer on the HSI was Orient Overseas (International), which rose 9.49%. The company is the parent company of container shipping company Orient Overseas Container Line.
– Lim Hui Jee
12 hours ago
Indicators confirm US bearishness and BofA beat stocks to cash
Quantitative market indicators seen by a team led by Cross-Asset and Quant Strategist Alex Macton and Equity and Quant Strategist Savita Subramanian at Bank of America confirm that the US economy has slipped into a “deep” recession (from a late economic cycle phase). February was the second month in a row, a report said on Tuesday.
Until 1990, similar conditions prevailed seven times, with recessions lasting an average of 12 months (but six months in 1995-1996 and up to 19 months during the global financial crisis), according to BofA.
What’s more, “cash is now the alternative,” BofA said, adding that “we find cash more attractive than equities, which are expected to return only 2% to 3% of the S&P 500 total this year,” compared with cash’s 5% yield on short-term Treasury bills. And the bank’s economists “expect a terminal rate of 5.25%-5.5% even after recent developments.”
The best equity investment strategies are based on companies’ cash flow, the team wrote. Those strategies, which emphasize free cash flow to enterprise value or price to free cash flow ratios, “have outperformed the index in previous downturns, particularly outside the zero interest rate policy (ZIRP) era, when the value of money was low. These factors are underlying. Active managers and cheap vs. . History.”
The BofA idea is that stocks that offer free cash flow and dividends represent a “bird in the arm,” while high-P/E, growth stocks are “dream buy” ideas. Unfortunately for those counting on a revival of past leaders, BofA said, “Long equity duration stocks (‘dream buy’ growth stocks that are more sensitive to financing costs) may have more room to stumble.”
– Scott Snapper
12 hours ago
Lennar was the first republic in stocks to move after hours
Lennar – Homebuilding stocks rose about 3% in extended trading. Lennar beat analysts’ revenue and earnings expectations for the latest quarter, according to Refinitiv. The company posted earnings of $2.06 on revenue of $6.49 billion.
First Republic – Shares of regional bank stocks rebounded by 8.9% after the bell. Other bank names Western Alliance and KeyCorp gained around 5% and 3% respectively.
Read the full list of stocks moving after hours here.
– Samantha Subin
12 hours ago
3M — 10-year low — 15 new S&P 500 52-week low on Tuesday
Among 15 stocks in the S&P 500, 3M hit a 52-week low on Tuesday, falling to its lowest level since February 2013. 3M is the only one of the 15 stocks that was once known as Minnesota Mining and Manufacturing. Dow Jones Industrial Average.
- Dish Network (DISH), lowest since 2009
- Hasbro (HAS), lowest since March 2020
- VF Corporation (VFC), lowest since 2011
- Hormel (HRL), lowest since 2019
- Devon Energy (TVN), Jan. Very little after 2022
- Centene (CNC), very low after October 2021
- CVS Health ( CVS ), the lowest since April 2021
- Southwest (LUV), lowest since May 2020
- 3M ( MMM ), lowest since 2013
- General Digital (GEN), the lowest since March 2020
- CF Industries (CF), very low after February 2022
- WestRock (WRK), lowest since August 2020
- Advance Auto Parts (AAP), very low after May 2020
- Organon (OGN), lowest since spin-off from Merck in June, 2021
- Boston Properties (BXP), lowest since 2009
Three stocks in the S&P 500 hit new 52-week highs on Tuesday:
- Arista Networks (ANET), hit all-time high until 2014 IPO
- Cadence Design Systems (CDNS) reached an all-time high when ECAD went public in 1987.
- GE Healthcare Technologies (GEHC), Dec. All-time high for GE spinoff in 2022
– Scott Schnipper, Christopher Hayes
13 hours ago