dpa-AFX NEWSTICKER (product sample)

15.01.2021

Citigroup Q4 Profit Declines On Lower Revenues, Higher Expenses

WASHINGTON (dpa-AFX) - Citigroup Inc. (C) reported that its fourth quarter net income declined 7% from the prior-year period, driven by the lower revenues, an increase in expenses, and a higher effective tax rate, partially offset by the lower cost of credit. Revenues decreased 10%, primarily reflecting lower revenues in Global Consumer Banking, Institutional Clients Group, and Corporate/Other. Fourth quarter earnings per share was $2.08, compared to $2.15, a year ago. On average, 21 analysts polled by Thomson Reuters expected the company to report profit per share of $1.34, for the quarter. Analysts' estimates typically exclude special items. Net income was $4.6 billion compared to $5.0 billion, prior year. Effective taxrate was 20% compared to 12%.Fourth quarter revenues were $16.5 billion compared to $18.4 billion, a year ago. Analysts expected revenue of $16.71 billion, for the quarter. Operating expenses were $10.7 billion, increased 2% from previous year. 'Given the Federal Reserve decision regarding share repurchases as we have excess capital we can return to shareholders, we plan to resume buybacks during the current quarter,' Michael Corbat, Citi CEO, said.Copyright RTT News/dpa-AFX
15.01.2021

Wells Fargo Q4 Profit Tops View, But Revenues Miss

SAN FRANCISCO (dpa-AFX) - Wells Fargo & Co. (WFC) reported that its fourth-quarter net income rose to $2.99 billion or $0.64 per share from $2.87 billion or $0.60 per share in the prior year. Analysts polled by Thomson Reuters expected the company to report earnings of $0.60 per share for the fourth-quarter. Analysts' estimates typically exclude special items. Provision for credit losses decreased $823 million, predominantly due to a $757 million reserve release due to the announced sale of our student loan portfolio, as well as lower net charge-offs.Net interest income decreased 17% year-over-year to $9.28 billion, primarily due to the impact of lower interest rates, lower loan balances primarily due to weak demand and elevated prepayments, lower investment securities balances, and higher mortgage-backed securities premium amortization.Non-interest income slightly declined to $8.65 billion from $8.66 billion last year.Quarterly total revenues for the quarter decreased to $17.93 billion from $19.86 billion in the previous year. Analysts expected revenues of $18.13 billion for the quarter.The company's board approved an increase in the company's authority to repurchase common stock by an additional 500 million shares, bringing the total authorized amount to 667 million common shares.In Friday pre-market trading, WFC was trading at $33.50, down $1.26 or 3.62 percent.Copyright RTT News/dpa-AFX
15.01.2021

Wells Fargo & Co Bottom Line Rises In Q4

SAN FRANCISCO (dpa-AFX) - Wells Fargo & Co (WFC) announced a profit for its fourth quarter that climbed from the same period last year.The company's earnings came in at $2.99 billion, or $0.64 per share. This compares with $2.87 billion, or $0.60 per share, in last year's fourth quarter.Analysts had expected the company to earn $0.60 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.The company's revenue for the quarter fell 9.7% to $17.93 billion from $19.86 billion last year.Wells Fargo & Co earnings at a glance:-Earnings (Q4): $2.99 Bln. vs. $2.87 Bln. last year.-EPS (Q4): $0.64 vs. $0.60 last year.-Analysts Estimate: $0.60-Revenue (Q4): $17.93 Bln vs. $19.86 Bln last year.Copyright RTT News/dpa-AFX
15.01.2021

Citigroup Inc. Q4 Profit Declines

WASHINGTON (dpa-AFX) - Citigroup Inc. (C) released earnings for fourth quarter that declined from last year.The company's bottom line totaled $4.63 billion, or $2.08 per share. This compares with $4.98 billion, or $2.15 per share, in last year's fourth quarter.Analysts had expected the company to earn $1.34 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.The company's revenue for the quarter fell 10.2% to $16.50 billion from $18.38 billion last year.Citigroup Inc. earnings at a glance:-Earnings (Q4): $4.63 Bln. vs. $4.98 Bln. last year.-EPS (Q4): $2.08 vs. $2.15 last year.-Analysts Estimate: $1.34-Revenue (Q4): $16.50 Bln vs. $18.38 Bln last year.Copyright RTT News/dpa-AFX
15.01.2021

JPMorgan Chase & Co Q4 Profit Tops Estimates; Managed Net Revenue Up 3%

NEW YORK CITY (dpa-AFX) - JPMorgan Chase & Co (JPM) reported strong results in the fourth quarter of 2020, with net profit up 42% largely driven by credit reserve releases of $2.9 billion. The Group said it ended the year with a CET1 ratio of 13.1% and capital above $200 billion, providing with meaningful capacity to further invest in business and communities, while returning capital to shareholders.Fourth quarter earnings per share was $3.79 compared to $2.57, last year. The company noted that its fourth quarter results included $2.9 billion of credit reserve releases Firmwide which resulted in $0.72 increase in earnings per share. On average, 23 analysts polled by Thomson Reuters expected the company to report profit per share of $2.62, for the quarter. Analysts' estimates typically exclude special items. Net income was $12.14 billion compared to $8.52 billion, a year ago. Fourth quarter net revenue on a reported basis was $29.2 billion, compared to $28.3 billion, previous year. Net revenue - managed - was $30.16 billion compared to $29.17 billion. Analysts expected revenue of $28.7 billion, for the quarter. Fourth quarter noninterest revenue was $16.8 billion, up 13%. Net interest income was $13.4 billion, down 7%, predominantly driven by the impact of lower rates as well as balance sheet mix, largely offset by balance sheet growth and higher net interest income in CIB Markets. Noninterest expense was $16.0 billion, down 2%.The provision for credit losses was a net benefit of $1.9 billion, compared to an expense of $1.4 billion in the prior year driven by reserve releases in the current quarter.'While positive vaccine and stimulus developments contributed to these reservereleases this quarter, our credit reserves of over $30 billion continue to reflectsignificant near-term economic uncertainty and will allow us to withstand an economicenvironment far worse than the current base forecasts by most economists,' Jamie Dimon, Chairman and CEO, said.Copyright RTT News/dpa-AFX
15.01.2021

SAP Appoints Julia White, Scott Russell To Executive Board

WALLDORF (dpa-AFX) - German software major SAP SE (SAP) said Friday that its Supervisory Board has appointed Julia White and Scott Russell to the Executive Board. White will take a new Executive Board role as chief marketing and solutions officer, while Russell will head SAP's Customer Success organization. Russell will succeed Adaire Fox-Martin, who has informed the Supervisory Board that she will depart the company at the end of this month.White joins SAP after nearly 20 years at Microsoft Corp. (MSFT), where she led product marketing for Microsoft Azure over the past five years. Previously, she was responsible for product marketing for Microsoft Office 365 during the transition to the cloud.SAP noted that White will strengthen the company's go-to-market approach with a focus on product, industry and digital marketing, as well as focus on bridging customer and ecosystem needs with product development.Russell brings over 20 years of experience in sales, management, consulting and technology to his new role. As president of SAP Asia Pacific Japan or APJ, Russell was responsible for SAP's extensive business growth and presence expansion in the APJ region for the past three years. He has held several senior leadership positions across SAP and joined SAP from IBM Corp. (IBM) in 2010.Copyright RTT News/dpa-AFX
15.01.2021

FLSmidth Says In Talks To Acquire ThyrssenKrupp's Mining Business

DUISBURG (dpa-AFX) - FLSmidth (FLIDF.PK), a Denmark-based engineering company, said Friday it is in talks with German industrial and technology group ThyssenKrupp AG (TYEKF.PK) regarding an acquisition of ThyssenKrupp's mining business.FLSmidth noted that the negotiations are at a non-binding stage and there can be no assurances as to whether and when a transaction will transpire.Copyright RTT News/dpa-AFX
15.01.2021

PNC Financial Services Group Inc. Reveals Rise In Q4 Bottom Line

WASHINGTON (dpa-AFX) - PNC Financial Services Group Inc. (PNC) released earnings for its fourth quarter that climbed from last year.The company's profit came in at $1.39 billion, or $3.26 per share. This compares with $1.31 billion, or $2.97 per share, in last year's fourth quarter.Analysts had expected the company to earn $2.61 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.The company's revenue for the quarter fell 2.5% to $4.21 billion from $4.32 billion last year.PNC Financial Services Group Inc. earnings at a glance:-Earnings (Q4): $1.39 Bln. vs. $1.31 Bln. last year.-EPS (Q4): $3.26 vs. $2.97 last year.-Analysts Estimate: $2.61 -Revenue (Q4): $4.21 Bln vs. $4.32 Bln last year.Copyright RTT News/dpa-AFX
15.01.2021

U.K. Supreme Court Rules In Favour Of Small Businesses In COVID-19 Insurance Claims

LONDON (dpa-AFX) - The U.K Supreme Court has ruled in favour of policyholders on the Financial Conduct Authority's or FCA business interruption insurance test case. This means that many thousands of policyholders will now have their claims for coronavirus-related business interruption losses paid.Sheldon Mills, Executive Director, Consumers and Competition at the FCA, said, 'Coronavirus is causing substantial loss and distress to businesses and many are under immense financial strain to stay afloat..'Mills said the judgment decisively removes many of the roadblocks to claims by policyholders.In mid-September 2020, the U.K. High Court has ruled in favour of small businesses in business interruption insurance case. The Court hadruled that some insurers should have paid out to small businesses for losses caused by lockdown.The U.K. Financial Conduct Authority brought business interruption insurance test case after small businesses struggled to get compensation from insurers for losses suffered during the lockdown. The test case had the potential to affect 370,000 small businesses.The watchdog brought the case against eight insurers, including RSA Insurance, Hiscox, QBE and Zurich.Responding to the Supreme Court judgment in insurance industry test case, Hiscox Ltd (HSX.L) said Friday that it has welcomed the clarity that the judgment provides and the processing of claims has begun.Hiscox stated that the outcome of the Supreme Court's Judgment confirms that fewer than one third of the company's 34,000 UK Business Interruption policies may respond.The total Hiscox Group 2020 COVID-19 estimate for business interruption increased by $48 million net of reinsurance, as a result of the Judgment as well as further government restrictions announced during 2020.In addition the previously disclosed additional loss estimate of up to $40 million for event cancellation if government restrictions continued into 2021, will now be recognized in our 2020 financial result due to the expectation that covered events will be canceled.Following the Judgment, the Group estimates exposure to restrictions already announced in 2021 at less than $20 million if restrictions extend to the end of March.Copyright RTT News/dpa-AFX
15.01.2021

Thermo Fisher Acquires Novasep's Viral Vector Manufacturing Business For 725 Mln Euros

BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - Thermo Fisher Scientific Inc. (TMO) has completed the acquisition of Henogen S.A., Groupe Novasep SAS's viral vector manufacturing business in Belgium for about 725 million euros in cash, the two companies said Friday.Novasep's viral vector manufacturing business provides contract manufacturing services for vaccines and therapies to biotechnology companies as well as large biopharma customers. The business will be part of Thermo Fisher's Pharma Services business within the Laboratory Products and Services Segment.Novasep's viral vector business has two locations in Seneffe and Gosselies, Belgium. It offers more than 7,000 square meters of clinical and commercial manufacturing capacity. Founded more than 20 years ago, the business has about 400 employees with substantial operational and technical expertise in a broad range of viral vector classes, and estimated 2020 revenue of 80 million euros, or about $95 million.'Novasep's viral vector business is an excellent strategic fit as Thermo Fisher continues to expand its capabilities for cell and gene vaccines and therapies globally. The addition of their manufacturing capabilities in Europe complements our four development and manufacturing sites in North America,' said Michel Lagarde, executive vice president of Thermo Fisher.Copyright RTT News/dpa-AFX
15.01.2021

U.S. Stocks Regain Ground After Early Sell-Off But Close Firmly Negative

WASHINGTON (dpa-AFX) - After moving sharply lower early in the session, stocks regained some ground over the course of the trading day on Friday but remained firmly in negative territory. With the drop, the Dow and the Nasdaq pulled back further off the record intraday highs set in early trading on Thursday.The Dow ended the day down 117.26 points or 0.6 percent at 30,814.26 after tumbling by nearly 380 points in early trading. The Nasdaq slumped 114.14 points or 0.9 percent to 12,998.50 and the S&P 500 slid 27.29 points or 0.7 percent to 3,768.25.The major averages also moved to the downside for the week, with the Dow falling by 0.9 percent, while the Nasdaq and the S&P 500 both dropped by 1.5 percent.The early sell-off on Wall Street partly reflected a negative reaction to earnings news from financial giants Wells Fargo (WFC), Citigroup (C) and JPMorgan Chase (JPM).Wells Fargo and Citigroup posted steep losses after both reported better than expected fourth quarter earnings but on revenues that missed estimates.Shares of JPMorgan also moved notably lower even though the company reported fourth quarter results that beat expectations on both the top and bottom lines.JPMorgan benefited from the release of money previously set aside for expected loan defaults, although its earnings would have still beat estimates with the boost.Negative sentiment was also generated in reaction to a report from the Commerce Department showing a continued decline in U.S. retail sales in the month of December.The Commerce Department said retail sales fell by 0.7 percent in December after tumbling by a revised 1.4 percent in November. Economists had expected retail sales to come in unchanged compared to the 1.1 percent slump originally reported for the previous month.Excluding sales by motor vehicle and parts dealers, retail sales plunged by 1.4 percent in December after sliding by 1.3 percent in November.Ex-auto sales were expected to edge down by 0.1 percent compared to the 0.9 percent decrease originally reported for the previous month.'The further slump in retail sales in December confirms that the continued surge in coronavirus infections is now weighing heavily on the economy,' said Andrew Hunter, Senior U.S. Economist at Capital Economics. 'Despite the building optimism over fiscal stimulus, the next few months are still likely to be difficult.'Meanwhile, the Federal Reserve released a separate report showing U.S. industrial production jumped by much more than expected in the month of December.The Fed said industrial production surged up by 1.6 percent in December after climbing by an upwardly revised 0.5 percent in November. Economists had expected production to rise by 0.4 percent, matching the increase originally reported for the previous month.'The December production data underline that while new restrictions are holding back parts of the service sector again, the recovery in manufacturing continues largely unaffected,' said Michael Pearce, Senior U.S. Economist at Capital Economics.The weakness on Wall Street may also have reflected the old adage of 'sell the news' after President-elect Joe Biden announced a $1.9 trillion coronavirus relief package on Thursday.The proposed stimulus package includes an increase in direct payments to individuals, increased federal unemployment benefits and aid to state and local governments.Sector NewsSteel stocks showed a substantial move to the downside on the day, resulting in a 4.8 percent nosedive by the NYSE Arca Steel Index. Considerable weakness was also visible among energy stocks, which pulled back along with the price of crude oil. Crude for February delivery tumbled $1.21 to $52.36 a barrel after reaching an eleven-month high on Thursday.Reflecting the weakness in the energy sector, the Philadelphia Oil Service Index and the NYSE Arca Oil Index plunged by 4.3 percent and 4.2 percent, respectively.Airline stocks also moved sharply lower following the rally seen in the previous session, with the NYSE Arca Airline Index slumping by 4.2 percent after ending Thursday's trading at its best closing level in a month.Gold, banking and semiconductor stocks also showed notable moves to the downside, while some strength emerged among interest rate-sensitive utilities and commercial real estate stocks.Other MarketsIn overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Friday. Japan's Nikkei 225 Index slid by 0.6 percent, while Hong Kong's Hang Seng Index rose by 0.3 percent.Meanwhile, the major European markets all showed significant moves to the downside on the day. While the U.K.'s FTSE 100 Index slumped by 1 percent, the French CAC 40 Index and the German DAX Index tumbled by 1.2 percent and 1.4 percent, respectively.In the bond market, treasuries moved higher in reaction to the disappointing retail sales data. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 3.2 basis points to 1.097 percent.Looking AheadFollowing the long weekend, earnings season will start to pick up steam next week, with Bank of America (BAC), Goldman Sachs (GS), Netflix (NFLX), Procter & Gamble (PG), IBM (IBM), Intel and (INTC) among the companies scheduled to release their quarterly results.Traders are also likely to keep an eye on the latest economic data, including reports on homebuilder confidence, housing starts, and existing home sales.Copyright RTT News/dpa-AFX
15.01.2021

Swiss Market Ends Slightly Higher

BRUSSELS (dpa-AFX) - The Switzerland stock market ended modestly higher on Friday, bucking the weak trend seen across Europe, even as the mood remained cautious and the broad market struggled to find significant support.The benchmark SMI, which kept moving along the flat line during much of the day's session, ended with a gain of 26.25 points or 0.24% at 10,877.06. The index, which edged down to 10,825.23 at the start, touched a high of 10,901.20 in late afternoon trades.ABB ended 3.35% down. Givaudan and Sika lost 2.8% and 2.4%, respectively. Richemont, Swatch Group, LafargeHolcim and Geberit ended lower by 1 to 1.25%. Credit Suisse and UBS Group both ended nearly 0.5% down.Among the gainers, Novartis surged up 2.2%. The drugmaker has secured a breakthrough therapy designation from the US Food and Drug Administration (FDA) for its ligelizumab drug to treat chronic spontaneous urticarial.Roche Holding gained nearly 1.5% after announcing that the European Commission has approved its influenza treatment Xofluza.Swisscom and Partners Group both moved up nearly 1%, while Alcon and Nestle posted modest gains.In the Swiss Mid Price Index, OC Oerlikon Corp shed more than 4%. Temenos Group shed about 3.45% and Kuehne Nagel lost 2.65%, while EMS Chemie Holding, Georg Fischer, Adecco, Schindler, Cembra Money Bank and Clariant lost 1.6 to 2%.Switzerland reported 2,396 new coronavirus cases on Friday, lower than Thursday's figure of 2,474 new cases. On Wednesday, the country saw more than 3,000 new cases.Copyright RTT News/dpa-AFX
15.01.2021

European Stocks Close Notably Lower As Growth Worries, Virus Fears Weigh

BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European markets ended notably lower on Friday as rising worries about outlook for economic recovery due to spikes in coronavirus infections and stricter lockdown restrictions in several cities across the world outweighed a massive stimulus announcement made by U.S. President-elect Joe Biden.Several countries across the world, including China, Germany and France have tightened lockdown measures. Rising tensions between the U.S. and China added to the woes.The pan European Stoxx 600 ended lower by 1.01%. The U.K.'s FTSE 100 ended nearly 1% down, Germany's DAX slid 1.44% and France's CAC 40 lost 1.22%, while Switzerland's SMI bucked the trend and ended 0.24%. The FTSE 100 shed about 2% this week, while the DAX and CAC 40 lost 1.9% and 1.7%, respectively.Among other markets in Europe, Austria, Belgium, Denmark, Finland, Greece, Ireland, Netherlands, Norway, Poland, Portugal, Russia, Spain, Sweden and Turkey ended with sharp to moderate losses, while Czech Republic and Iceland declined marginally.In the UK market, Anglo American Plc shares ended lower by 5.3%. Just Eat Takeaway and Smith DS lost nearly 5% and 4.7%, respectively. Antofagasta, Kingfisher, BHP Group and Rio Tinto lost 3 to 3.7%.Barclays Group, BP, Hikma Pharmaceuticals, Smiths Group and Polymetal International also ended sharply lower.Babcock International shares plunged more than 16% after the defense firm said profits had suffered a 'negative impact' from civil nuclear insourcingOn the other hand, Aveva Group surged up nearly 7% after giving a confident outlook for the full year. GlaxoSmithKline and Pennon Group gained 1.5% and 1.3%, respectively, while Unilever gained nearly 1%.In Germany, Deutsche Bank ended lower by nearly 4%. Adidas, RWE, Daimler, Thyssenkrupp and Infineon Technologies lost 1 to 3%.Siemens declined sharply after General Electric Co accused a subsidiary of the power distribution company of stealing trade secrets to rig bids for gas turbine contracts.In the French market, Peugeot, Renault, WorldLine, Carrefour, LVMH, ArcelorMittal, Societe Generale, Credit Agricole and Bouygues ended lower by 2 to 4%, while Publicis Groupe, Danone and Valeo posted strong gains.In economic news, official data showed that Britain's economy contracted at a slower than expected pace in November. Gross domestic product shrank 2.6% month on month in November but slower than the 5.7% fall economists' had forecast.French consumer prices remained stable on a yearly basis in December, as initially estimated, after rising 0.2% in November, final data released by the statistical office Insee revealed.Eurozone exports increased for the seventh straight month in November, first estimate from Eurostat showed. Exports grew 2% on month and imports climbed 2.4% from October. However, compared to the month before restrictions were imposed in February, both flows were still down by 4.4% and 4.8%, respectively.Copyright RTT News/dpa-AFX
15.01.2021

U.S. Stocks Climb Well Off Worst Levels But Remain Firmly Negative

WASHINGTON (dpa-AFX) - After moving sharply lower early in the session, stocks have regained some ground over the course of the trading day on Friday. The major averages have climbed well off their worst levels of the day but remain firmly in negative territory.Currently, the major averages appear stuck in the red. The Dow is down 157.73 points or 0.5 percent at 30,833.79, the Nasdaq is down 80.97 points or 0.6 percent at 13,031.67 and the S&P 500 is down 23.84 points or 0.6 percent at 3,771.70.The early sell-off on Wall Street partly reflected a negative reaction to earnings news from financial giants Wells Fargo (WFC), Citigroup (C) and JPMorgan Chase (JPM).Wells Fargo and Citigroup are posting steep losses after both reported better than expected fourth quarter earnings but on revenues that missed estimates.Shares of JPMorgan have also moved notably lower even though the company reported fourth quarter results that beat expectations on both the top and bottom lines.JPMorgan benefited from the release of money previously set aside for expected loan defaults, although its earnings would have still beat estimates with the boost.Negative sentiment was also generated in reaction to a report from the Commerce Department showing a continued decline in U.S. retail sales in the month of December.The Commerce Department said retail sales fell by 0.7 percent in December after tumbling by a revised 1.4 percent in November. Economists had expected retail sales to come in unchanged compared to the 1.1 percent slump originally reported for the previous month.Excluding sales by motor vehicle and parts dealers, retail sales plunged by 1.4 percent in December after sliding by 1.3 percent in November.Ex-auto sales were expected to edge down by 0.1 percent compared to the 0.9 percent decrease originally reported for the previous month.Meanwhile, the Federal Reserve released a separate report showing U.S. industrial production jumped by much more than expected in the month of December.The Fed said industrial production surged up by 1.6 percent in December after climbing by an upwardly revised 0.5 percent in November. Economists had expected production to rise by 0.4 percent, matching the increase originally reported for the previous month.'The December production data underline that while new restrictions are holding back parts of the service sector again, the recovery in manufacturing continues largely unaffected,' said Michael Pearce, Senior U.S. Economist at Capital Economics.The weakness on Wall Street may also reflect the old adage of 'sell the news' after President-elect Joe Biden announced a $1.9 trillion coronavirus relief package on Thursday.The proposed stimulus package includes an increase in direct payments to individuals, increased federal unemployment benefits and aid to state and local governments.Sector NewsSteel stocks continue to see substantial weakness in mid-day trading, resulting in a 4.3 percent nosedive by the NYSE Arca Steel Index. Considerable weakness also remains visible among energy stocks, which are pulling back along with the price of crude oil. Crude for February delivery is slumping $1.11 to $52.46 a barrel after reaching an eleven-month high on Thursday.Reflecting the weakness in the energy sector, the Philadelphia Oil Service Index is down by 3.9 percent and the NYSE Arca Oil Index is down by 3.3 percent.Banking stocks are also seeing significant weakness on the day, with the KBW Bank Index tumbling by 3.1 percent after ending the previous session its best closing level in a year.Transportation, chemical and gold stocks are also showing notable moves to the downside, while some strength has emerged among interest rate-sensitive utilities and commercial real estate stocks.Other MarketsIn overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Friday. Japan's Nikkei 225 Index slid by 0.6 percent, while Hong Kong's Hang Seng Index rose by 0.3 percent.Meanwhile, the major European markets all shoed significant moves to the downside on the day. While the U.K.'s FTSE 100 Index slumped by 1 percent, the French CAC 40 Index and the German DAX Index tumbled by 1.2 percent and 1.4 percent, respectively.In the bond market, treasuries have moved higher over the course of the trading session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 4 basis points at 1.089 percent.Copyright RTT News/dpa-AFX
15.01.2021

Negative Reaction To Earnings News, Retail Sales Data Weighing On Wall Street

WASHINGTON (dpa-AFX) - Stocks have moved sharply lower over the course of morning trading on Friday, extending the pullback seen late in the previous session. With the drop, the Dow and the Nasdaq are pulling back further off the record intraday highs set in early trading on Thursday.The major averages have climbed off their worst levels in recent trading but remain firmly negative. The Dow is down 257.13 points or 0.8 percent at 30,734.39, the Nasdaq is down 95.66 points or 0.7 percent at 13,016.98 and the S&P 500 is down 31.79 points or 0.8 percent at 3,763.75.The sell-off on Wall Street partly reflects a negative reaction to earnings news from financial giants Wells Fargo (WFC), Citigroup (C) and JPMorgan Chase (JPM).Wells Fargo and Citigroup are posting steep losses after both reported better than expected fourth quarter earnings but on revenues that missed estimates.Shares of JPMorgan have also moved notably lower even though the company reported fourth quarter results that beat expectations on both the top and bottom lines.JPMorgan benefited from the release of money previously set aside for expected loan defaults, although its earnings would have still beat estimates with the boost.Negative sentiment was also generated in reaction to a report from the Commerce Department showing a continued decline in U.S. retail sales in the month of December.The Commerce Department said retail sales fell by 0.7 percent in December after tumbling by a revised 1.4 percent in November. Economists had expected retail sales to come in unchanged compared to the 1.1 percent slump originally reported for the previous month.Excluding sales by motor vehicle and parts dealers, retail sales plunged by 1.4 percent in December after sliding by 1.3 percent in November.Ex-auto sales were expected to edge down by 0.1 percent compared to the 0.9 percent decrease originally reported for the previous month.Meanwhile, the Federal Reserve released a separate report showing U.S. industrial production jumped by much more than expected in the month of December.The Fed said industrial production surged up by 1.6 percent in December after climbing by an upwardly revised 0.5 percent in November. Economists had expected production to rise by 0.4 percent, matching the increase originally reported for the previous month.'The December production data underline that while new restrictions are holding back parts of the service sector again, the recovery in manufacturing continues largely unaffected,' said Michael Pearce, Senior U.S. Economist at Capital Economics.The weakness on Wall Street may also reflect the old age of 'sell the news' after President-elect Joe Biden announced a $1.9 trillion coronavirus relief package on Thursday.The proposed stimulus package includes an increase in direct payments to individuals, increased federal unemployment benefits and aid to state and local governments.Energy stocks are turning in some of the market's worst performances in morning trading amid a sharp pullback by the price of crude oil. Crude for February delivery is tumbling $1.61 to $51.96 a barrel after reaching an eleven-month high on Thursday.Reflecting the weakness in the energy sector, the Philadelphia Oil Service Index is down by 5.2 percent and the NYSE Arca Oil Index is down by 3.2 percent.Substantial weakness has also emerged among steel stocks, as reflected by the 4.5 percent nosedive by the NYSE Arca Steel Index. Airline stocks are also seeing considerable weakness after moving sharply higher in the previous session, with the NYSE Arca Airline Index tumbling by 2.9 percent.Financial, chemical and transportation stocks have also moved significantly lower amid a broad based sell-off on Wall Street.In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Friday. Japan's Nikkei 225 Index slid by 0.6 percent, while Hong Kong's Hang Seng Index rose by 0.3 percent.Meanwhile, the major European markets have shown substantial moves to the downside on the day. While the German DAX Index has plunged by 2.1 percent, the French CAC 40 Index is down by 1.9 percent and the U.K.'s FTSE 100 Index is down by 1.7 percent.In the bond market, treasuries have seen some volatility in recent trading but are currently higher. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 2.7 basis points at 1.102 percent.Copyright RTT News/dpa-AFX
15.01.2021

U.S. Stocks May See Initial Weakness Amid Negative Reaction To Earnings

WASHINGTON (dpa-AFX) - After turning lower over the course of the previous session, stocks may see further downside in early trading on Friday. The major index futures are currently pointing to a lower open for the markets, with the Dow futures down by 160 points.A negative reaction to earnings news from financial giants JPMorgan Chase (JPM), Citigroup (C) and Wells Fargo (WFC) may lead to initial weakness on Wall Street.Shares of JPMorgan are seeing pre-market weakness even though the company reported fourth quarter results that beat expectations on both the top and bottom lines.JPMorgan benefited from the release of money previously set aside for expected loan defaults, although its earnings would have still beat estimates with the boost.Citigroup and Wells Fargo may also move the downside after both reported better than expected fourth quarter earnings but on revenues that missed estimates.Negative sentiment may also be generated in reaction to a report from the Commerce Department showing a continued decline in U.S. retail sales in the month of December.The Commerce Department said retail sales fell by 0.7 percent in December after tumbling by a revised 1.4 percent in November. Economists had expected retail sales to come in unchanged compared to the 1.1 percent slump originally reported for the previous month.Excluding sales by motor vehicle and parts dealers, retail sales plunged by 1.4 percent in December after sliding by 1.3 percent in November.Ex-auto sales were expected to edge down by 0.1 percent compared to the 0.9 percent decrease originally reported for the previous month.Meanwhile, a separate report released by the Labor Department showed U.S. producer prices increased by slightly less than expected in the month of December.The Labor Department said its producer price index for final demand rose by 0.3 percent in December after inching up by 0.1 percent in November. Economists had expected producer prices to rise by 0.4 percent.Excluding food and energy prices, core producer prices crept up by 0.1 percent in December, matching the uptick seen in the previous month. Core prices were expected to edge up by 0.2 percent.Just before the start of trading, the Federal Reserve is scheduled to release its report on industrial production in the month of December. Industrial production is expected to rise by 0.4 percent in December, matching the increase seen in November.The University of Michigan is due to release its preliminary reading on consumer sentiment in the month of January shortly after the start of trading. The consumer sentiment index is expected to edge down to 80.0 in January from 80.7 in December.Additionally, the Commerce Department is scheduled to release its report on business inventories in the month of November. Business inventories are expected to climb by 0.5 percent.Stocks saw modest strength for much of the trading session on Thursday before giving back ground going into the close. The major averages all slid into negative territory, with the Dow and the Nasdaq pulling back off the record intraday highs set in early trading.The major averages finished the day modestly below the unchanged line. The Dow slipped 68.95 points or 0.2 percent to 30,991.52, the Nasdaq edged down 16.31 points or 0.1 percent to 13,112.64 and the S&P 500 fell 14.30 points or 0.4 percent to 3,795.54.In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Friday. Japan's Nikkei 225 Index slid by 0.6 percent, while Hong Kong's Hang Seng Index rose by 0.3 percent.Meanwhile, the major European markets have all moved to the downside on the day. While the French CAC 40 Index has tumbled by 1.2 percent, the German DAX Index is down by 1 percent and the U.K.'s FTSE 100 Index is down by 0.9 percent.In commodities trading, crude oil futures are sliding $0.60 to $52.97 a barrel after climbing $0.66 to $53.57 a barrel on Thursday. Meanwhile, after slipping $3.50 to $1,851.40 an ounce in the previous session, gold futures are falling $5.50 to $1,845.90 an ounce.On the currency front, the U.S. dollar is trading at 103.72 yen versus the 103.80 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.2118 compared to yesterday's $1.2155.Copyright RTT News/dpa-AFX
15.01.2021

Wall Street Might Open Lower

BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - U.S. economic data reports on Retail Sales, Industrial Production and Consumer Sentiment reports might get special attention on Friday. The U.S.-China tensions are raising concern, at the same time investors are optimistic over U.S. President-elect Joe Biden's $1.9 trillion stimulus package.As of 7.35 am ET, the Dow futures were losing 124.00 points, the S&P 500 futures were down 11.00 points and the Nasdaq 100 futures were sliding 7.75 points.Asian shares finished ended mixed, while European shares are trading mostly lower. Initial signs from the U.S. Futures Index point to a lower open for Wall Street. The U.S. major averages finished Thursday modestly below the unchanged line. The Dow slipped 68.95 points or 0.2 percent to 30,991.52, the Nasdaq edged down 16.31 points or 0.1 percent to 13,112.64 and the S&P 500 fell 14.30 points or 0.4 percent to 3,795.54.On the economic front, the Labor Department's Producer Price Index or PPI for December will be issued at 8.30 am ET. The consensus is for an increase of 0.4 percent, while it was up 0.1 percent in the previous month. The Commerce Department's Retail Sales for December is scheduled at 8.30 am ET. The consensus is for a decline of 0.1 percent, compared to a decline of 1.1 percent in the previous month. The New York Fed Empire State Manufacturing Index for January will be released at 8.30 am ET. The Index is expected to be up 6.0, while it was up 4.9 in December. The Fed Reserve's Industrial Production for December will be revealed at 9.15 am ET. The consensus is for an increase of 0.5 percent, slightly up from 0.4 percent last month. The Business Inventories for November will be released at 10.00 am ET. The consensus is for growth of 0.4 percent, while it was up 0.7 percent in the prior month. The University of Michigan's Consumer Survey Center's Consumer Sentiment for January will be published at 10.00 am ET. The consensus is for 80, while it was 80.7 in the previous month. Minneapolis Federal Reserve Bank President Neel Kashkari will discuss the economy, unemployment, the current impact of COVID and federal stimulus funding in virtual Minnesota Hospital Association 2021 Winter Trustee Conference Town Hall on the Economy at 11.30 am ET. Asian stocks ended mixed on Friday. Chinese shares ended a choppy session on a flat note. Hong Kong stocks ended modestly higher. The Hang Seng index edged up 89.72 points, or 0.31 percent, to 28,586.58.Japanese shares fell from a 30-year high. The Nikkei average ended down 179.08 points, or 0.62 percent, at 28,519.18, snapping a five-day winning streak. The broader Topix index closed 0.89 percent lower at 1,856.61.Australian markets ended little changed with a positive bias. European shares are trading mostly lower. Among the major indexes in the region, the German DAX is losing 141.71 points or 1.01 percent, the U.K. FTSE 100 Index is down 61.68 points or 0.92 percent. The Swiss Market Index is adding 6.74 points or 0.06 percent.The Euro Stoxx 50 Index, which is a compilation of 50 blue chip stocks across the euro area, is down 0.85 percent.Copyright RTT News/dpa-AFX
15.01.2021

Pound Drops Amid Falling European Shares

BRUSSELS (dpa-AFX) - The pound fell against its major counterparts in the European session on Friday, as worries about rising U.S.-China tensions and tighter Covid-19 restrictions coming into force around Europe dampened risk sentiment.German Chancellor Angela Merkel wants a 'mega-lockdown' after the country suffered its deadliest-ever day of the coronavirus pandemic on Thursday.The French government will tighten its border control with non-EU countries including the UK from Monday and moved forward the night curfew by two hours to 6 p.m. for at least a fortnight. Optimism over Biden's coronavirus rescue plan receded, as it could be opposed by many Republicans.In economic releases, official data showed that Britain's economy contracted at a slower than expected pace in November.Gross domestic product shrank 2.6 percent month on month in November but slower than the 5.7 percent fall economists' had forecast.The pound weakened to 1.2163 against the franc and 1.3637 against the greenback, after rising to 1.2101 and 1.3698, respectively in early deals. The pound may locate support around 1.18 against the franc and 1.34 against the greenback.The pound reached 0.8901 against the euro, falling from more than a 2-month high of 0.8866 seen at 3:00 am ET. Should the pound slides further, 0.92 is likely seen as its next support level.The pound slipped to a 3-day low of 141.38 against the yen, after a rise to 142.12 at 6:30 pm ET. Further decline in the pound may find support near the 138.00 mark. Looking ahead, U.S. PPI, retail sales and industrial production for December, business inventories data for November and University of Michigan's preliminary consumer sentiment index for January will be featured in the New York session.Copyright RTT News/dpa-AFX
15.01.2021

European Shares Slide Amid Covid Worries

BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks fell slightly on Friday as worries about rising U.S.-China tensions and tighter Covid-19 restrictions coming into force around Europe offset optimism over U.S. President-elect Joe Biden announcing a $1.9 trillion stimulus package to boost the world's largest economy.The pan European Stoxx 600 dropped 0.4 percent to 410.44 after climbing 0.7 percent in the previous session. The German DAX, France's CAC 40 index and the U.K.'s FTSE 100 were down between 0.4 percent and 0.6 percent.Babcock International shares plunged as much as 18 percent after the defense firm said profits had suffered a 'negative impact' from civil nuclear insourcing.Investment manager Ashmore Group rose 0.9 percent after its assets under management (AUM) rose by $7.5bn in the second quarter.Information technology company AVEVA surged 6.3 percent after saying it remains confident in the full year outlook.Pharmaceutical company Indivior jumped 9 percent after raising its annual revenue forecast.Bouygues edged up slightly after its telecommunications arm unveiled a strategic plan for the next five years aiming to become the second biggest telecoms operator in mobile in France.German business software group SAP advanced 1.4 percent. The company reported fourth-quarter profit after tax on IFRS basis of 1.93 billion euros, up 18 percent from 1.64 billion euros last year.Siemens Energy fell nearly 5 percent after General Electric Co accused a subsidiary of the power distribution company of stealing trade secrets to rig bids for gas turbine contracts.In economic releases, official data showed that Britain's economy contracted at a slower than expected pace in November.Gross domestic product shrank 2.6 percent month on month in November but slower than the 5.7 percent fall economists' had forecast.French consumer prices remained stable on a yearly basis in December, as initially estimated, after rising 0.2 percent in November, final data released by the statistical office Insee revealed.Copyright RTT News/dpa-AFX
15.01.2021

FTSE 100 Edges Lower As GDP Falls

BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - U.K. stocks fell modestly on Friday as the pound edged up against the euro on optimism over a faster rollout of vaccines and official data showed that Britain's economy contracted at a slower than expected pace in November. Gross domestic product shrank 2.6 percent month on month in November but slower than the 5.7 percent fall economists' had forecast. The decline reversed a 0.6 percent rise posted in October. The economy contracted in November after rising for six straight months.The benchmark FTSE 100 dropped 30 points, or half a percent, to 6,772 after rising 0.8 percent in the previous session.Babcock International shares plunged as much as 18 percent after the defense firm said profits had suffered a 'negative impact' from civil nuclear insourcing.Investment manager Ashmore Group rose 0.9 percent after its assets under management (AUM) rose by $7.5bn in the second quarter.Information technology company AVEVA surged 6.3 percent after saying it remains confident in the full year outlook. Pharmaceutical company Indivior jumped 9 percent after raising its annual revenue forecast.Copyright RTT News/dpa-AFX
15.01.2021

U.S. Business Inventories Increase In Line With Estimates In November

WASHINGTON (dpa-AFX) - Business inventories in the U.S. increased in line with economist estimates in the month of November, according to a report released by the Commerce Department on Friday.The report said business inventories rose by 0.5 percent in November after climbing by an upwardly revised 0.8 percent in October.Economists had expected inventories to rise by 0.5 percent compared to the 0.7 percent increase originally reported for the previous month.Manufacturing and retail inventories both increased by 0.7 percent during the month, while wholesale inventories came in unchanged.Meanwhile, the Commerce Department said business sales edged down by 0.1 percent in November after climbing by 0.9 percent in October.The modest drop came as retail sales tumbled by 1.1 percent, more than offsetting a 0.7 percent increase in manufacturing sales and a 0.2 percent uptick in wholesale sales.The report said the total business inventories/sales ratio came in at 1.32 in November, unchanged from the previous month.Copyright RTT News/dpa-AFX
15.01.2021

Bank Of Italy Sees 3.5% GDP Growth This Year

ROME (dpa-AFX) - The Italian economy is set to expand this year and next, but will return to pre-pandemic levels only in 2023, the Bank of Italy projections showed Friday. Gross domestic product is set to grow 3.5 percent this year, after a massive 9.2 percent contraction in 2020, due to the disruption caused by the coronavirus, or Covid-19, pandemic. Growth is seen at 3.8 percent in 2022 and then slow to 2.3 percent in 2023. GDP is set to rise significantly in the spring on the back of the expected improvement in the coronavirus situation as countries have started vaccinating public. 'Starting in the second half of 2021 and continuing over the next two years, the economic support and recovery measures financed through the national budget and using EU funds should provide a further boost,' the bank said in its latest economic bulletin.Copyright RTT News/dpa-AFX
15.01.2021

UK Economy To Log Negative Growth In Q1: NIESR

LONDON (dpa-AFX) - The UK economy is set to log negative growth in the first three months of this year, the National Institute of Social and Economic research said Friday, as the country went into a third and a tighter lockdown at the start of the year to battle the new and fast-spreading strain of coronavirus and due to the post-Brexit adjustment.The think thank forecast negative growth of 3.4 percent for the first quarter of 2021. Growth slowed to 0.9 percent in the fourth quarter of 2020, suggesting a 9.8 percent contraction for the whole year, the NIESR said. The second lockdown had a far smaller impact on economic economic activity than the first one, the think tank noted. The NIESR expects the tighter Covid-19 restrictions to linger beyond January. 'Temporary and permanent adjustments post-Brexit transition period are likely to also weigh on growth in the early part of 2021, but the vaccine roll-out provides some encouragement for consumption and investment in the second half of 2021 and beyond,' NIESR Principal Economist Rory Macqueen said. 'The economic impact of the lockdowns is clearly negative in the short-term but will be significantly positive in the medium term if successful in controlling the virus and restoring confidence.'Copyright RTT News/dpa-AFX
15.01.2021

U.S. Consumer Sentiment Dips More Than Expected In January

WASHINGTON (dpa-AFX) - Preliminary data released by the University of Michigan on Friday showed a modest deterioration in U.S. consumer sentiment in the month of January.The report said the consumer sentiment index dipped to 79.2 in January after jumping to 80.7 in December. Economists had expected the index to edge down to 80.0.'Consumer sentiment posted trivial declines in early January despite the horrendous rise in covid-19 deaths, the insurrection, and the impeachment of Trump,' said Surveys of Consumers chief economist Richard Curtin.He added, 'Two offsetting shifts helped narrow the January loss in sentiment: the covid-19 vaccines and a partisan shift in expectations due to the anticipated impact of Biden's economic policies.'The report said the current economic conditions index fell to 87.7 in January from 90.0 in December, while the index of consumer expectations slipped to 73.8 from 74.6.On the inflation front, one-year inflation expectations jumped to 3.0 percent in January from 2.5 percent in December and five-year inflation expectations rose to 2.7 percent from 2.5 percent.Copyright RTT News/dpa-AFX
15.01.2021

US NOV RETAIL INVENTORIES +0.7%

Copyright RTT News/dpa-AFX
15.01.2021

U.S. Industrial Production Jumps Much More Than Expected In December

WASHINGTON (dpa-AFX) - The Federal Reserve released a report on Friday showing U.S. industrial production jumped by much more than expected in the month of December.The Fed said industrial production surged up by 1.6 percent in December after climbing by an upwardly revised 0.5 percent in November. Economists had expected production to rise by 0.4 percent, matching the increase originally reported for the previous month.The spike in production came as utilities output soared by 6.2 percent in December after plunging by 4.5 percent in November, with demand for heating rebounding after an unseasonably warm month.The report said manufacturing output also climbed by 0.9 percent in December following a 0.8 percent increase in November. Mining output also showed another notable increase, jumping by 1.6 percent in December after surging up by 2.8 percent in November.'The December production data underline that while new restrictions are holding back parts of the service sector again, the recovery in manufacturing continues largely unaffected,' said Michael Pearce, Senior U.S. Economist at Capital Economics.He added, 'With domestic goods demand still elevated, inventory levels still looking very lean and the dollar weakening, the immediate outlook for the sector remains upbeat.'The Fed also said capacity utilization for the industrial sector rose 74.5 percent in December from 73.4 in November. Economists had expected capacity utilization to inch up to 73.6 percent.Capacity utilization in the utilities sector jumped to 74.5 percent, while capacity utilization in the mining and manufacturing sectors edged up to 80.5 percent and 73.4 percent, respectively.Copyright RTT News/dpa-AFX
15.01.2021

New York Manufacturing Index Unexpectedly Indicates Slower Growth In January

WASHINGTON (dpa-AFX) - Activity in the New York manufacturing sector unexpectedly grew at a slower pace in the month of January, the Federal Reserve Bank of New York revealed in a report released on Friday.The New York Fed said its general business conditions index slipped to 3.5 in January from 4.9 in December, although a positive reading still indicates growth in regional manufacturing activity. Economist had expected the index to inch up to 6.0.The unexpected drop by the headline index came as the shipments index slid to 7.3 in January from 12.1 in December and the number of employees index fell to 11.2 from 14.2.On the other hand, the new orders index rose to 6.6 in January from 3.4 in December, indicating modestly faster growth.The report said the prices paid index also climbed to 45.5 in January from 37.1 in December, while the prices received index increased to 15.2 from 10.0.Looking ahead, the New York Fed said firms remained optimistic that conditions would improve over the next six months, although the index for future business conditions dropped to 31.9 in January from 36.3 in December.'Manufacturing is slated to stay solid in 2021, but growth will likely moderate in the coming months as vaccines quell goods demand and consumer spending tilts back more towards services,' said Oren Klachkin, Lead U.S. Economist at Oxford Economics.Next Thursday, the Philadelphia Federal Reserve is scheduled to release its report on regional manufacturing activity. The Philly Fed Index is expected to inch up to 12.6 in January from 11.1 in December.Copyright RTT News/dpa-AFX
15.01.2021

U.S. Producer Prices Rise Slightly Less Than Expected In December

WASHINGTON (dpa-AFX) - A report released by the Labor Department on Friday showed U.S. producer prices increased by slightly less than expected in the month of December.The Labor Department said its producer price index for final demand rose by 0.3 percent in December after inching up by 0.1 percent in November. Economists had expected producer prices to rise by 0.4 percent.The increase in producer prices largely reflected a spike in energy prices, which surged up by 5.5 percent in December after jumping by 1.2 percent in November.Meanwhile, the report said food prices edged down by 0.1 percent in December after climbing by 0.5 percent in the previous month.Excluding food and energy prices, core producer prices crept up by 0.1 percent in December, matching the uptick seen in the previous month. Core prices were expected to rise by 0.2 percent.The modest increase in core prices came as prices for goods excluding food and energy rose by 0.5 percent, more than offsetting a 0.1 percent dip in prices for services.Prices for trade services slid by 0.8 percent, while prices for transportation and warehousing services edged down by 0.1 percent and prices for other services crept up by 0.2 percent.Compare to the same month a year ago, producer prices in December were up by 0.8 percent, unchanged from November. The annual rate of growth in core prices slowed to 1.2 percent from 1.4 percent.'While some sectors have seen prices start to heat up, broader inflation measures continue to fall short of the Fed's 2% goalpost as the economy entered the new year in a slump,' said Mahir Rasheed, Associate Economist at Oxford Economics.The Labor Department released a separate report on Wednesday showing consumer prices increased in line with economist estimates in the month of December.The report said the consumer price index rose by 0.4 percent in December after edging up by 0.2 percent in November. The price growth matched expectations.The Labor Department said the advance by the consumer price index was driven by an 8.4 percent jump in gasoline prices, which accounted for more than 60 percent of the overall increase.Excluding food and energy prices, the core consumer price index inched up by 0.1 percent in December after rising by 0.2 percent in November. The uptick in core prices also matched economist estimates.The report said consumer prices in December were up by 1.4 percent compared to the same month a year ago, reflecting an acceleration from the 1.2 percent growth seen in November.The annual rate of growth by core consumer prices in December was unchanged from the previous month at 1.6 percent.Copyright RTT News/dpa-AFX
15.01.2021

Dollar Rebounds On Safe-haven Appeal

WASHINGTON (dpa-AFX) - The U.S. dollar was quite firm against its rivals on Friday thanks to its safe-haven appeal amid worries about rising coronavirus cases and stricter lockdown restrictions in several countries.The Commerce Department said retail sales fell by 0.7% in December after tumbling by a revised 1.4% in November. Economists had expected retail sales to come in unchanged compared to the 1.1% slump originally reported for the previous month.The Federal Reserve released a report showing U.S. industrial production surged up by 1.6% in December after climbing by an upwardly revised 0.5% in November. Economists had expected production to rise by 0.4%, matching the increase originally reported for the previous month. The dollar index rose to 90.79, gaining over 0.6% Against the Euro, the dollar was stronger by nearly 0.7% at $1.2076. Eurozone exports increased for the seventh straight month in November, first estimate from Eurostat showed. Exports grew 2% on month and imports climbed 2.4% from October. However, compared to the month before restrictions were imposed in February, both flows were still down by 4.4% and 4.8%, respectively.The Pound Sterling weakened against the dollar, fetching $1.3585, about 0.75% less than Thursday's close of $1.3688 a unit. Official data showed Britain's economy contracted at a slower than expected pace in November. Gross domestic product shrank 2.6% month on month in November but slower than the 5.7% fall economists' had forecast.The Yen was slightly weaker at 103.87 a dollar. Japan's tertiary activity dropped for the sixth month in a row in November, data from the Ministry of Economy, Trade and Industry showed. The tertiary activity index declined 0.7% month-on-month in November, after a 1.6% increase in October. On a yearly basis, the tertiary activity index declined 3.7% in November, following a 1.4% fall in the previous month.The Aussie was down nearly 1% at $0.7707. The Swiss franc weakened to 0.8916 a dollar, losing about 0.4%, while the Loonie was at C$1.2736 a dollar, down 0.75% from previous close, as crude oil prices declined sharply.Copyright RTT News/dpa-AFX
15.01.2021

Dollar Mixed After U.S. Retail Sales Data

BRUSSELS (dpa-AFX) - The U.S. dollar showed mixed trading against its major counterparts in the European session on Friday, after a data showed that the nation's retail sales continued to decline in December.Data from the Commerce Department showed that retail sales fell by 0.7 percent in December after tumbling by a revised 1.4 percent in November.Economists had expected retail sales to come in unchanged compared to the 1.1 percent slump originally reported for the previous month.Excluding sales by motor vehicle and parts dealers, retail sales plunged by 1.4 percent in December after sliding by 1.3 percent in November.Ex-auto sales were expected to edge down by 0.1 percent compared to the 0.9 percent decrease originally reported for the previous month. Data from the Labor Department showed that U.S. producer prices increased slightly less than expected in the month of December.The Labor Department said its producer price index for final demand rose by 0.3 percent in December after inching up by 0.1 percent in November. Economists had expected producer prices to rise by 0.4 percent.Excluding food and energy prices, core producer prices crept up by 0.1 percent in December, matching the uptick seen in the previous month. Core prices were expected to edge up by 0.2 percent. Data from the Federal Reserve Bank of New York showed that activity in the New York manufacturing sector unexpectedly grew at a slower pace in the month of January.The New York Fed said its general business conditions index slipped to 3.5 in January from 4.9 in December, although a positive reading still indicates growth in regional manufacturing activity. Economist had expected the index to inch up to 6.0.On stimulus front, U.S. President-elect Joe Biden has unveiled a $1.9 trillion aid package to combat the economic crisis triggered by the Covid-19 pandemic.The plan includes $1 trillion in aid to families, $350 billion for state and local governments and $160 billion to expand vaccination and testing efforts, and other health programs.Biden proposed $1,400 in direct payments, which, along with the $600 provided in the most recent COVID-19 bill would take the aid to $2,000 per person.Supplemental unemployment benefits would be raised to $400 a week from $300 a week and will run through September.The greenback climbed during the Asian session, as worries about rising U.S.-China tensions offset investor optimism over Biden's coronavirus rescue plan to boost the world's largest economy.The greenback advanced to a 3-day high of 1.3594 against the pound from Thursday's close of 1.3685. If the greenback strengthens further, it is likely to test resistance around the 1.34 level.Data from the Office for National Statistics showed that the UK economy contracted less than expected in November despite a second nationwide lockdown.The gross domestic product shrank 2.6 percent on month in November but slower than the 5.7 percent fall economists' had forecast. The decline reversed a 0.6 percent rise posted in October.The greenback approached 1.2106 against the euro, its strongest level since December 11. The greenback is poised to challenge resistance around the 1.18 mark.Data from Eurostat showed that Eurozone exports increased for the seventh straight month in November.Exports grew 2 percent on month and imports climbed 2.4 percent from October. However, compared to the month before restrictions were imposed in February, both flows were still down by 4.4 percent and 4.8 percent, respectively.The greenback was steady against the franc, after easing off to 0.8869 at 5:15 am ET. At yesterday's trading close, the pair was valued at 0.8879. The greenback rebounded slightly to 103.80 against the yen, from a low of 103.62 seen at 5:30 am ET. The greenback is seen finding resistance around the 106.00 mark.The U.S. business inventories data for November and University of Michigan's preliminary consumer sentiment index for January will be released at 10:00 am ET.Copyright RTT News/dpa-AFX
15.01.2021

Dollar Little Changed After U.S. Retail Sales Data

BRUSSELS (dpa-AFX) - After the release of U.S. retail sales and producer price index for December at 8:30 am ET Friday, the greenback changed little against its major rivals.The greenback was trading at 1.2124 against the euro, 103.69 against the yen, 0.8880 against the franc and 1.3625 against the pound around 8:32 am ET.Copyright RTT News/dpa-AFX
15.01.2021

Dollar Rises Ahead Of U.S. Retail Sales Data

BRUSSELS (dpa-AFX) - The U.S. retail sales and producer price index for December are due at 8:30 am ET Friday. Ahead of the data, the greenback rose against its major rivals. The greenback was worth 1.2124 against the euro, 103.72 against the yen, 0.8884 against the franc and 1.3622 against the pound as of 8:25 am ET.Copyright RTT News/dpa-AFX
14.01.2021

Dollar Turns Weak Against Other Major Currencies

WASHINGTON (dpa-AFX) - After exhibiting some weakness in the Asian session, the U.S. dollar rebounded smartly Thursday morning, but fell again and stayed weak thereafter as Fed Chair Jerome Powell said the bank will not hike interest rates anytime soon.Rising Treasury yields amid hopes of a big fiscal stimulus from Joe Biden's administration had lifted dollar earlier in the day.The fresh U.S. stimulus package is expected to include $2,000 in stimulus checks, funding to state and local governments and other emergency spending measures. CNN reported that Biden is mulling a huge spending package worth about $2 trillion.First-time claims for U.S. unemployment benefits climbed by much more than expected in the week ended January 9th, according to a report released by the Labor Department on Thursday.The report said initial jobless claims rose to 965,000, an increase of 181,000 from the previous week's revised level of 784,000. Economists had expected jobless claims to inch up to 795,000 from the 787,000 originally reported for the previous week.A separate report released by the Labor Department on Thursday showed U.S. import and export prices both increased by more than expected in the month of December.The dollar index, which climbed to 90.58, slid to a low of 90.08 about an hour past noon. It was last seen hovering around 90.20, down 0.17% from previous close.Against the Euro, the dollar was flat at $1.2160, after staying firm around $1.2112 earlier in the day. The euro fell against its major opponents in the European session after minutes from the European Central Bank's December meeting showed that policymakers expressed concerns over the recent appreciation of the domestic currency that could have an adverse impact on the inflation outlook.The Pound Sterling was stronger by nearly 0.4% against the dollar, fetching $1.3689 a unit.The Yen was marginally stronger at 103.79 a dollar. The value of core machine orders in Japan was up 1.5 percent on month in November, the Cabinet Office said on Thursday - coming in at 854.8 billion yen. That beat forecasts for a decline of 6.2 percent following the 17.1 percent spike in October.Against the Aussie, the dollar was weak at $0.7783, about 0.65% down from Wednesday's close of $0.7733.The Swiss franc was little changed at CHF0.8878 a dollar, while the Loonie gained nearly 0.5% at C$1.2640 a dollar thanks to higher crude oil prices.Copyright RTT News/dpa-AFX
14.01.2021

Euro Slides As ECB Minutes Show Members Cautioned About Currency Exchange Rate

CANBERA (dpa-AFX) - The euro fell against its major opponents in the European session on Thursday, after minutes from the European Central Bank's December meeting showed that policymakers expressed concerns over the recent appreciation of the domestic currency that could have an adverse impact on the inflation outlook.The incoming data indicated a more pronounced near-term impact of the pandemic on economic activity and inflation than previously envisaged, the minutes from the bank's December 9 and 10 showed.Members broadly agreed that additional monetary policy measures were necessary to preserve favorable financing conditions over the pandemic period.There was broad agreement with regard to the monetary policy package, which expands and extends the PEPP purchases and recalibrates the TLTRO III conditions so as to underpin economic activity and safeguard medium-term price stability, it showed.Policymakers argued that the focus on preserving favourable financing conditions implied a move away from a constant monthly pace of purchases towards adjusting the pace according to market conditions, with a view to preventing a tightening of financing conditions inconsistent with countering the downward impact of the pandemic on the projected path of inflation.Members believed that the expected shape of the recovery now looked very different from the V- and U-shapes expected earlier in the year.'It was felt that a protracted curtailment of activity might inflict more lasting damage on a number of sectors, with heightened risks of rising insolvencies and unemployment affecting the medium-term outlook and more protracted scarring effects owing to the delay in the recovery,' the minutes showed.The currency was further weighed by a stronger dollar, as the U.S. treasury yields jumped on expectations of a large U.S. stimulus package from the Democratic-led U.S. government.President-elect Joe Biden is due to outline his proposals for massive fiscal stimulus at 7:15 pm ET.Data from Destatis showed that the German economy contracted the most since the 2008-2009 global financial crisis in 2020, but most likely avoided a double-dip in the fourth quarter of the year, underpinned by the better performance of the manufacturing sector.Gross domestic product fell 5 percent in 2020, in contrast to the 0.6 percent rise seen in 2019. This was the first contraction in ten years.The currency traded mixed against its major counterparts in the Asian session. While it fell against the greenback and the franc, it held steady against the pound. Versus the yen, it climbed.The euro shed 0.4 percent to hit near a 5-week low of 1.2111 against the greenback. The pair was worth 1.2157 when it closed deals on Wednesday. Should the euro falls further, it is likely to test support around the 1.20 region. The euro touched its lowest level since November 23 against the pound, at 0.8874. The EUR/GBP pair had ended yesterday's trading session at 0.8911. The euro is seen finding support around the 0.86 mark. The single currency fell 0.2 percent against the yen, touching a 9-day low of 126.07. The pair had closed Wednesday's deals at 126.27. Next near term support for the euro is likely seen around the 123 level. The Bank of Japan upgraded its economic assessment of three out of nine regions and downgraded one, according to the latest Regional Economic Report.Many regions, while noting that their economy had been in a severe situation due to the impact of the novel coronavirus, there were signs of picking up.The euro was down against the loonie and the kiwi, reaching over a 2-month low of 1.5358 and a 6-day low of 1.6847, respectively. The currency had closed Wednesday's trading at 1.5435 versus the loonie and 1.6931 versus the kiwi. Immediate support for the euro is likely seen around 1.52 against the loonie and 1.66 versus the kiwi. The European currency dipped to 1.5631 against the aussie, a level not seen since December 2018. The euro-aussie pair had finished deals at 1.5718 on Wednesday. Further fall in the currency may challenge support around the 1.54 level. Data from the Australian Bureau of Statistics showed that Australia building approvals advanced a seasonally adjusted 2.6 percent on month in November - coming in at 17,205.That was in line with expectations following the 3.8 percent increase in October.The euro eased off to 1.0781 against the franc, not far from a fresh 4-week low of 1.0779 seen at 2:45 am ET. At Wednesday's close, the pair was worth 1.0788. The euro is likely to test support around the 1.06 region, if it falls again.Copyright RTT News/dpa-AFX
14.01.2021

Euro Falls Vs Most Majors After ECB Minutes

BRUSSELS (dpa-AFX) - The European Central Bank has published the account of the monetary policy meeting of the Governing Council held on December 9 and 10 at 7.30 am ET Thursday. After the release, the euro changed little against the franc, but fell against the rest of major rivals.The euro was trading at 126.31 against the yen, 1.0812 against the franc, 1.2144 against the greenback and 0.8893 against the pound around 7.35 am ET.Copyright RTT News/dpa-AFX
14.01.2021

Euro Mixed Ahead Of ECB Minutes

BRUSSELS (dpa-AFX) - At 7.30 am ET Thursday, the European Central Bank is slated to release the account of the monetary policy meeting of the Governing Council held on December 9 and 10. Ahead of the release, the euro showed mixed trading against its major counterparts. While it rose against the franc, it retreated against the pound and the yen. Against the greenback, it was steady.The euro was worth 126.35 against the yen, 1.0808 against the franc, 1.2151 against the greenback and 0.8897 against the pound at 7.25 am ET.Copyright RTT News/dpa-AFX
14.01.2021

Indian Rupee Hits 10-day High Against U.S. Dollar

NEW DELHI (dpa-AFX) - The Indian rupee strengthened against the U.S. dollar in the evening session on Thursday, as regional shares rose, tracking positive global cues, on expectations of a large U.S. stimulus package from the the Democratic-led U.S. government.President-elect Joe Biden is due to outline his proposals for massive fiscal stimulus later in the day.The Indian rupee advanced to a 10-day high of 72.95 against the greenback from a 2-day low of 73.29 seen in the morning session. The rupee is seen facing resistance around the 70.00 level.Copyright RTT News/dpa-AFX
14.01.2021

Dollar Higher As Yields Surge On Stimulus Prospects

CANBERA (dpa-AFX) - The U.S. dollar was higher against its major counterparts in the Asian session on Thursday, tracking an uptick in the U.S. Treasury yields, as investors await the details of the stimulus plan to be unveiled by President-elect Joe Biden to boost the economy.The yield on 10-year U.S. Treasuries rose to 1.11 percent, while the 2-year equivalent was up at 0.15 percent.The package is expected to include $2,000 in stimulus checks, funding to state and local governments and other emergency spending measures.Safe-haven bonds fell after CNN reported that Biden is mulling huge spending package worth about $2 trillion.Biden is set to announce the details of his plan later in the day.Fed Chairman Jerome Powell will speak at 12:30 pm ET, with investors awaiting any clues on tapering its asset purchase program.The dollar rose to 1.3616 against the pound and held steady thereafter. The pair had ended Wednesday's deals at 1.3631.The greenback appreciated to a 2-day high of 0.8892 against the franc, from Wednesday's close of 0.8874. The greenback is seen finding resistance around the 0.90 level. The greenback hit a 2-day high of 104.20 against the yen, compared to Wednesday's closing quote of 103.87. The greenback is likely to find resistance around the 106.00 level. The U.S. currency reached as high as 1.2135 against the euro, setting a 3-day peak. If the greenback continues its rise, 1.20 is possibly seen as its next resistance level. On the other hand, the greenback dropped against commodity currencies. It edged down to 1.2679 versus the loonie, 0.7207 versus the kiwi and 0.7765 versus the aussie, from its early highs of 1.2708, 0.7171 and 0.7729, respectively. The next possible support for the greenback is seen around 1.25 versus the loonie, 0.74 versus the kiwi and 0.80 versus the aussie.Looking ahead, the European Central Bank publishes the account of the monetary policy meeting of the governing council held on December 9 and 10 at 7.30 am ET.In the New York session, U.S. weekly jobless claims for the week ended January 9 and import and export prices for December are scheduled for release.Copyright RTT News/dpa-AFX

Sie haben Fragen zu unseren News?
Gerne beraten wir Sie, kontaktieren Sie uns:

+49 (0)69/92022-480

vertrieb@dpa-AFX.de

dpa-AFX auf Twitter

Folgen Sie uns auf Twitter www.twitter.com/dpaAFX