2024-11-12 21:49
Nov 13 (Reuters) - A look at the day ahead in Asian markets. Investors sobered up from post-election euphoria over Republican Donald Trump's victory and took some profits ahead of Wednesday's October U.S. CPI report, which kicks off a calendar thick with U.S. news events markets will be watching the rest of the week. While CPI will not be a trading factor for Asia until Thursday, it has ramifications for global markets already nervous about how Trump's hardline trade policies might impact U.S. growth, inflation, interest rates and thereby the Federal Reserve's easing trajectory. U.S. stocks eased and bitcoin faltered after flirting with $90,000 on Tuesday while Treasury yields , jumped on reopening from a long weekend as the ramifications of tax cuts, trade tariffs and wider budget deficits under the new administration were priced in. Wall Street's stumble was similar to downward moves in Asia, in what looks like a negative feedback loop. Trump's agenda should be easily pushed through Congress, now that Republicans appear to have won a majority of U.S. House seats, marking a government sweep. The S&P 500 (.SPX) , opens new tab and other indexes spent the day in the red. Bitcoin pulled back during the session before making another run that barely cleared the early high at $89,982. Crypto stocks like Coinbase (COIN.O) , opens new tab and Riot Platforms (RIOT.O) , opens new tab slumped, as did Tesla (TSLA.O) , opens new tab, another stock expected to perform well during Trump's presidency, given the close ties between the president-elect and Elon Musk, its billionaire CEO and another outspoken bitcoin promoter. The ten-year yield posted its biggest basis point rise since June and the yield on the two-year note looked set for its biggest jump in more than a month -- excellent support for the dollar. Dollar/yen hit its highest since July 30, trading at 154.73 in late U.S. trade and China's yuan was at 7.2423 per dollar after hitting its lowest since Aug 1. Chinese shares slid on concerns that Trump's administration would be loaded with China hawks. The Shanghai Composite (.SSEC) , opens new tab closed 1.4% lower. MSCI's all world index (.MIWD00000PUS) , opens new tab fell 0.7%, after its index of Asian shares ex-Japan (.MIAPJ0000PUS) , opens new tab ended down 2% along with the Nikkei's (.N225) , opens new tab 0.4% drop. Datawise, U.S. October producer prices on Thursday and retail sales on Friday fill out the week. Fed Chair Jerome Powell speaks on the economic outlook on Thursday, another reason to keep the powder dry. Here are key developments that could provide more direction to markets on Wednesday: - Australia employment (October) - US CPI (October) Sign up here. https://www.reuters.com/markets/asia/global-markets-view-asia-2024-11-12/
2024-11-12 21:31
TSX ends up 0.5%, at 24,923.01 Eclipses Thursday's record closing high Shopify jumps 21.5% on upbeat sales growth forecast Materials sector falls 1.5% Nov 12 (Reuters) - Canada's main stock index rose to a record high on Tuesday as gains for technology shares, led by e-commerce company Shopify Inc (SHOP.TO) , opens new tab, offset pressure on resource shares due to a stronger U.S. dollar. The S&P/TSX composite index (.GSPTSE) , opens new tab ended up 133.73 points, or 0.5%, at 24,923.01, eclipsing the record closing high it notched last Thursday. "Shopify has been a great performer. Expensive as can be, but yet the market doesn't seem to care based on valuation," said Allan Small, senior investment advisor of the Allan Small Financial Group with iA Private Wealth. Shares of Shopify jumped 21.4% after the company forecast fourth-quarter sales growth above estimates as a focus on employing AI-powered tools in its e-commerce services pulled in more merchants ahead of the crucial holiday season. The firm also topped market expectations for third-quarter revenue. The technology sector was up 6.4%, one of only two major sectors to notch gains. The other was consumer staples, which added 0.9%. "A strong dollar in the U.S., interest rates higher in the U.S., these are things that don't usually bode well for the Canadian markets based on commodities and oil," Small said. The U.S. dollar (.DXY) , opens new tab climbed to a six-month high against a basket of major currencies, while the U.S. 10-year yield was up 12 basis points at about 4.43%. The materials sector fell 1.5% as gold and copper prices fell. Energy was also down, losing 1.1%. The price of oil settled 0.1% higher after two days of sharp declines. Sign up here. https://www.reuters.com/markets/tsx-futures-slip-metal-prices-drag-2024-11-12/
2024-11-12 21:28
Second-quarter profit drops by 12% North American operations sees 5% drop in net sales Nov 13 (Reuters) - Fibre cement maker James Hardie Industries (JHX.AX) , opens new tab on Wednesday raised the lower end of its fiscal year 2025 profit forecast, boosted by hopes of improved consumer sentiment and homeowner affordability, and approved a new share buyback plan of $300 million. The company expects adjusted net income for fiscal 2025 to be at least $635 million, compared to its prior forecast range of $630 million to $700 million. James Hardie, however, posted a 12% fall in second-quarter profit due to lower sales in its North American operations, the company's top profit generator. The North American fibre cement division - which contributed over 70% in James Hardie's total sales for fiscal 2024 - brought in net sales of $695.8 million during the quarter, lower than the $734.4 million posted last year. Uncertainty over mortgage rate direction, especially in North America, has discouraged home owners to shift houses or undertake repair and remodel activities, which has hurt the demand for the company's products. The 5% drop in the net sales from the division was primarily due to market weakness, partially offset by a higher average net sales price from the company's January 2024 price increase. The Dublin-based firm posted an adjusted net income of $157 million in the quarter ended September, compared with $178.9 million reported last year and a Visible Alpha consensus of $145.9 million. James Hardie is expected to generate at least 2.95 billion standard feet from its North America volumes, compared to its prior estimated range of 2.95 to 3.15 billion standard feet. Sign up here. https://www.reuters.com/markets/commodities/fibre-cement-maker-james-hardies-q2-profit-falls-by-12-2024-11-12/
2024-11-12 21:27
New order backlog record at 123 billion euros Now expects profit margin of 10-12% in 2028 Frankfurt-listed shares up 6.1% MUNICH/DUESSELDORF, Nov 12 (Reuters) - Siemens Energy raised its midterm outlook on Tuesday as it reported a new record for its order book and a narrower fourth-quarter loss, boosted by rising demand for power equipment and an ongoing turnaround at its wind turbine unit. Like key rival GE Vernova (GEV.N) , opens new tab, the group is benefiting from a strong expansion of wind power, the need to upgrade dated energy grids, and a push to keep gas-fired power plants running until enough renewable capacity is available globally. While those fundamentals have been fairly stable in recent years, quality issues at some of its wind turbines threw Siemens Energy into its biggest-ever crisis last year, causing it to rely on the state for vital project guarantees. Since then, the company has sold assets, narrowed losses at its wind division Siemens Gamesa, and grown its order book substantially, causing shares to more than triple year-to-date and making it the best performer among German blue chips so far in 2024. "In a pivotal fiscal year 2024, we achieved all our goals, driven by strong orders and project execution across all our businesses. Our focus remains on profitable growth, supported by highly favourable market conditions," CEO Christian Bruch said. Frankfurt-listed shares in Siemens Energy (ENR1n.DE) , opens new tab turned sharply higher following the news, which included a 123 billion-euro ($131 billion) order backlog, and were up 6.1% at 2110 GMT. GAMESA OVERHAUL Due to the favourable demand for wind turbines, transmission network equipment and gas turbines, the group upgraded its 2028 targets, forecasting a profit margin of 10% to 12%, up from at least 8% previously. Siemens Gamesa is forecast to narrow its loss before special items to 1.3 billion euros in 2025, compared with a loss of 1.78 billion this year. The division's fourth-quarter sales rose 19.7% as offshore wind capacity ramped up. The business, which has been a burden on Siemens Energy's finances for years, is aiming to break even in 2026, with hopes partly resting on the successful relaunch of onshore turbine models at the heart of the quality crisis. For 2025, the group as a whole expects sales to grow 8% to 10%, compared with 10.8% in 2024 and higher than the 6.4% analysts expected in an LSEG poll. The group's profit margin before special items is expected to improve to a range of 3% to 5%, up from 1% this year. The improved outlook reflected Siemens Energy's "leading role in the energy transition," Bruch said, along with a 1.3 billion-euro net profit for 2024, the first annual profit the group has turned since it was spun off from former parent Siemens (SIEGn.DE) , opens new tab in 2020. The group's fourth-quarter loss before special items narrowed to 83 million euros, compared with 487 million in the year-ago period. ($1 = 0.9420 euros) Sign up here. https://www.reuters.com/business/energy/siemens-energy-narrows-q4-operating-loss-expects-margins-rise-2025-2024-11-12/
2024-11-12 21:24
Nov 12 (Reuters) - U.S. warships shot down drones and missiles fired by Yemen's Houthis while they were transiting the Bab al-Mandab Strait, the Pentagon said on Tuesday. Earlier on Tuesday, the Houthis said they conducted two military operations against U.S. naval vessels in the Red and Arabian seas which the group's military spokesperson said lasted for eight hours. Pentagon spokesperson Air Force Major General Patrick Ryder said that on Monday two U.S. warships were attacked by at least eight drones, five anti-ship ballistic missiles and three anti-ship cruise missiles. The warships brought down the projectiles and there was no damage to the vessels. Ryder said he was not aware of any attacks against the aircraft carrier Abraham Lincoln. Houthi spokesperson Yahya Sarea had earlier said the first operation targeted a U.S. aircraft carrier in the Arabian sea with a number of missiles and drones, while the second operation launched missiles and drones at two U.S. destroyers in the Red Sea. The Iran-backed Houthi movement, which controls northern Yemen, has been launching attacks on international shipping lanes near Yemen since Oct. 7 which they say are against ships they perceive as Israeli-linked in solidarity with Palestinians during Israel's war in Gaza. The attacks have drawn U.S. and British retaliatory strikes. The Houthis previously said they targeted U.S. destroyers and drones. Sign up here. https://www.reuters.com/world/middle-east/yemens-houthis-say-they-launch-attacks-against-us-naval-vessels-2024-11-12/
2024-11-12 21:21
HOUSTON, Nov 12 (Reuters) - U.S. oil and gas firm Occidental Petroleum (OXY.N) , opens new tab beat Wall Street estimates for third-quarter profit on Tuesday, but overall earnings fell 14% on losses from asset sales and a drop in chemical results. Oil companies have reported lower year-on-year third-quarter results on weaker oil and gas prices. Occidental's quarterly profit included one-time asset sales losses and gains on share sales and derivatives. Occidental said its operating profit from pumping oil and gas fell 25% to $1.2 billion on losses from asset sales. It took a $572 million loss on the sales. It sold properties in July to Permian Resources (PR.N) , opens new tab and an unidentified buyer for combined $970 million. Proceeds from the sales helped reduce a heavy debt load from the $12 billion acquisition of closely held shale oil and gas producer CrownRock. Long-term debt at the end of the quarter was $25.46 billion, down $4 billion through cash and asset sales. The company's operating profit from chemicals fell to $304 million, from $373 million a year ago. Its midstream business benefited from derivatives and a $490 million gain from selling shares in pipeline operator Western Midstream Partners (WES.N) , opens new tab. Occidental's oil production rose 15.7% to 1.4 million barrels of oil and gas per day on its CrownRock purchase. Full-year production from expanded Permian properties should reach 661,000 barrels of oil and gas per day, up from 588,000 bpd a year ago, the company said. The company reported an adjusted profit of $977 million, or $1 per share, for the quarter ended Sept. 30, down from $1.13 billion, or $1.18 a share, a year ago. Analysts had forecast a per share profit of 74 cents, according to data compiled by financial firm LSEG. Sign up here. https://www.reuters.com/markets/commodities/occidental-petroleum-beats-third-quarter-profit-estimates-2024-11-12/
