Stock Markets

Stocks gain, Treasury yields jump as US retail data reassures

Published

5 months ago

August 16, 2024

By Koh Gui Qing and Naomi Rovnick

NEW YORK/LONDON (Reuters) -World stocks rose on Thursday and Treasury yields spiked after surprisingly strong U.S. retail sales data soothed fears about slowing economic growth, and tempered investor bets of imminent aggressive interest rate cuts.

Retail sales increased 1.0% last month, well above market forecasts for a 0.3% gain, the Commerce Department’s Census Bureau said on Thursday, suggesting that consumers have maintained spending by bargain hunting.

Some investors said the robust data did not alter bets that the Federal Reserve could begin lowering rates in September, but dimmed the chance that the central bank will start easing policy with a hefty 50 basis-point rate cut.

“This diminishes fears of a recession any time soon and it is good news in terms of stocks, but may not be good news for the bond market,” said Peter Cardillo, chief economist at Spartan Capital Securities in New York.

“With this report, we’re back to square one, with the Fed probably cutting rates by 25 basis points in September. Chances are diminishing for a more robust 50 basis-point cut.”

Equity markets welcomed the latest sign of economic resilience. By 1535 GMT, the jumped 1.5%, the added 1.3%, and the leapt 2.2%. [.N]

MSCI’s world share index, which has moved in excess of 1% on more than half of the trading days in August so far, rose 1.1%.

Pressured by speculation that the Fed is likely to reduce rates at a more moderate pace, the benchmark jumped to 3.9321%, while the two-year Treasury yield climbed to 4.1097%. [US/]

The jump in Treasury yields offered some respite to the dollar, which gained 0.4% against other major currencies, halting a stretch of losses that took it to its lowest per euro on Wednesday since late 2023. The dollar is also down almost 15% against Japan’s yen since early July.

A firmer dollar weighed on the euro on Thursday, with the common currency down 0.3% at $1.09748. The dollar also strengthened against the yen to 149.1 yen. [USD/]

RISK APPETITE

In Europe, the pan-European index was up 1.2%, although some analysts cautioned investors against complacency.

Nordea chief market analyst Jan von Gerich said the speed of the Wall Street bounce-back was a reason to be wary of further volatility ahead.

“The tentative rebound in risk appetite has happened surprisingly fast, so I would be cautious,” he said.

Wall Street’s fear barometer, the volatility gauge, eased to its lowest point of the month, having soared to a four-year high on Aug. 5.

The Federal Reserve has held its main funds rate at 5.25%-5.5% for more than a year, helping to quell consumer price rises, but also exacerbating some market imbalances that erupted into chaos this summer.

A sustained period of high U.S. rates driving the dollar higher against Japan’s yen screeched to a halt in July, creating a wrecking-ball effect on a popular speculative trade that involved borrowing the Japanese currency to buy U.S. stocks.

A vicious unwinding of this so-called carry trade sparked a market rout last week, although many investors believe the currency-related disruption is almost over.

“I don’t this (has been) a long-term wider market correction,” said James Henderson, equity fund manager at Janus Henderson.

Elsewhere in markets, sterling rose 0.2% to $1.2853 after data showed Britain’s economy grew 0.6% in the second quarter of 2024, which was in line with economists’ expectations.

price rose 0.3% to $2,454.21 per ounce, close to its July 17 record high, as market speculation that U.S. rates might soon be lowered lifted the non-yielding metal. [GOL/]

Oil markets were also strong on Thursday, with , the international benchmark, 1.8% higher at $81.19 a barrel as the U.S. retail report brightened the outlook for global demand. [O/R]

Stock Markets

Treasury yields rise, stock falls pressured by stronger-than-expected US. jobs data

Published

2 hours ago

January 11, 2025

By Chibuike Oguh and Amanda Cooper

NEW YORK/LONDON (Reuters) -Global stocks were lower while U.S. Treasury yields rose on Friday after a stronger-than-expected jobs data reinforced expectations that the Federal Reserve will likely keep interest rates elevated for longer than traders were betting on.

Wall Street’s main indexes were trading lower, with technology, financials, real estate and consumer discretionary stocks driving losses. Energy stocks were trading higher.

The Labor Department data on Friday showed that the U.S. economy created 256,000 jobs in December, beating analyst expectations of 160,000, according to a Reuters poll of economists.

“This one of those classic good-news-is-bad-news types of data point,” said James St. Aubin, chief investment officer at Ocean Park Asset Management in Santa Monica, California. “When I think about the economic data that’s good for growth, but it certainly weighs on the yield picture and kind of puts a bit of a bind when it comes to lowering rates. And I think the market is trying to sort that out.”

Markets are now pricing in a single Fed rate cut no sooner than June. Prior to the jobs report, traders were expecting the Fed to cut rates as early as May with a 50% probability of another rate cut before year end, according to CME’s FedWatch tool.

The yield on benchmark U.S. 10-year notes rose 6.6 basis points to 4.747%. It had reached as high as 4.79%, its highest level since November 2023.

The fell 1.69% to 41,916.63, the fell 1.79% to 5,812.30 and the fell 2.13% to 19,064.05.

Shares in small cap companies, which can be more vulnerable to fluctuations in interest rates, came under the most intense pressure, leaving the down 2.5% on the session.

MSCI’s gauge of stocks across the globe fell 1.59% to 832.14. The pan-European finished down 0.84%, dragged down by utilities, consumer non-cyclical, and real estate stocks.

“Bond yields are climbing today because the ability to cut further is going to be diminished after today’s report even though I always advise to look at January numbers with a grain of salt given seasonality issues that work itself out in the next couple of months,” St. Aubin added.

Government bond yields have jumped higher this week amid a broad market selloff that pushed long-dated borrowing costs to multi-year highs.

The turmoil in the fixed income market has hit UK government bonds particularly hard, pushing 30-year gilt yields to their highest since 1998, as investors grow increasingly worried about Britain’s finances.

The , which measures the greenback against a basket of currencies including the yen and the euro,rose 0.45% to 109.69. It reached as high as 109.97, its highest level since November 2022.

The euro was down 0.59% at $1.0237, dropping to its lowest level since November 2022 on the session. The pound fell for a fourth day, dropping by as much as 0.91% to $1.2189, its lowest since November 2023. It last traded down 0.76% at $1.221.

Oil prices rallied nearly 3% to their highest in three months, as traders braced for supply disruptions from the broad U.S. sanctions package targeting Russian oil and gas revenue.[O/R]

futures were up 3.4% to $79.55 a barrel, after its highest since October. U.S. West Texas Intermediate crude futures advanced 3.29% to $76.35, also a three-month high.

Gold prices rose and were on track for the fourth straight day of gains. rose 0.98% to $2,696.33 an ounce. U.S. rose 0.98% to $2,710.00 an ounce.

Stock Markets

RBG Holdings enters exclusive sale talks with founder

Published

2 hours ago

January 11, 2025

LONDON – RBG Holdings plc (AIM: RBGP), a prominent legal services group, has entered into an exclusive negotiation period with its founder, Mr. Ian Rosenblatt, and associated parties for the potential sale of its ‘Rosenblatt’ branded business and certain assets. The talks, initiated on Tuesday, are set to advance a sale to Rosenblatt Law Limited (formerly AWH Acquisition Corp Corporate Limited).

The exclusive period, effective from today until January 24, 2025, aims to facilitate a swift and cooperative discussion regarding the disposal of the business. During this time, both parties have agreed to operate in good faith, abstain from legal actions against one another, and withdraw any ongoing or pending disputes. This includes a winding-up petition issued by Mr. Rosenblatt on January 7 and a general meeting requisition notice dated December 23, 2024.

Mr. Rosenblatt, a significant shareholder in RBG Holdings, has provided evidence of his ownership of Rosenblatt Law Limited since December 19, 2024. Any terms of the potential disposal will be subject to the AIM Rule 13, which pertains to transactions with related parties.

RBG Holdings plans to provide further updates after the discussions have progressed. The company, which includes subsidiaries RBG Legal Services Limited and RBL Law Limited, has been a fixture in the legal services market, with Rosenblatt established in 1989 and Memery Crystal in 1979.

The information about this exclusive negotiation period is based on a press release statement from RBG Holdings plc.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Stock Markets

Radcom stock soars to 52-week high, hits $12.94

Published

2 hours ago

January 11, 2025

Radcom Ltd . (NASDAQ:) shares have surged to a 52-week high, reaching a price level of $12.94, as investors rally behind the company’s strong performance. According to InvestingPro data, the company maintains an impressive “GREAT” financial health score of 3.38, with a robust current ratio of 4.18 indicating strong liquidity. This peak represents a significant milestone for the network software provider, reflecting a robust year-over-year growth of 17.8% in revenue. Over the past year, Radcom’s stock has witnessed an impressive 65.37% increase, underscoring the company’s expanding market presence and investor confidence in its strategic direction. The 52-week high serves as a testament to Radcom’s potential in the competitive tech landscape, as the company continues to innovate and capture market share. InvestingPro subscribers have access to 12 additional key insights about RDCM, including detailed valuation metrics and growth forecasts, essential for making informed investment decisions.

In other recent news, RADCOM Ltd. reported a record revenue of $15.8 million in its third quarter of 2024, a notable 20% increase from the same period last year. The company also announced the appointment of Benny Eppstein as the new CEO, effective December 1st. This growth in revenue is attributed to the strong demand for RADCOM’s cloud-based assurance solutions, particularly in North America and Europe. The company has also raised its full-year 2024 revenue guidance to between $59 million and $62 million, along with a significant increase in profitability, reporting a non-GAAP net income of $3.7 million.

In addition to these financial highlights, RADCOM secured a multi-year contract with a North American operator and anticipates growth in Voice over New Radio (VoNR) technologies by 2025. The company is optimistic about maintaining growth and profitability, with a significant portion of revenue coming from multi-year contracts. RADCOM’s strategy for growth includes investments in AI and analytics to strengthen its market position in cloud assurance. The company is also expecting to capitalize on 5G advancements and VoNR deployments anticipated in 2025.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.