European stock markets open lower
European stock markets opened lower and bank stocks continued within the red after the worldwide collapse of Silicon Valley Bank.
The pan-European Stoxx 600 index fell 0.4% early in trading, with most sectors and major exchanges trading within the red. Retail shares fell 1.9%, followed by oil and gas shares which fell 1.4%. Bank shares fell by 0.5%.
— Hannah Ward Glenton
BMW raises its margin forecast, expecting higher deliveries as electric sales increase
German automaker BMW said on Wednesday it expects an EBIT (earnings before interest and taxes) margin of 8-10% for its automotive range in 2023, with deliveries at barely increase from 2022. Selling prices are to stay at a “stable” level.
The corporate confirmed the outcomes for the whole yr 2022 reported last weekincluding EBIT of €10.6 billion (US$11.4 billion) within the automotive segment, which had a margin of 8.6% last yr.
BMW has extensive production of battery electric vehicles and expects to succeed in over 50% BEV share well before 2030. The corporate’s BEV share is predicted to succeed in 15% in 2023.
— Ruxandra Iordache
Industrial production in China, retail sales increase in January-February
China’s industrial production rose 2.4% from January to February, based on official data.
Retail sales increased by 3.55% over the identical period, according to expectations.
China’s fixed asset investment in the primary two months of the yr rose 5.5%, beating the expectations of economists polled by Reuters who predicted a rise of 4.4%.
Chinese land yuan it weakened after the information release and traded at 6.8822 against the US dollar.
The People’s Bank of China kept the rate of interest of 481 billion yuan on medium-term one-year loans at 2.75%.
Japanese banks rise after rebounding from Wall Street banks
Japanese finance rose in Wednesday morning trading, reversing the direction seen earlier within the week and after Wall Street banks rebounded.
Tokyo-listed Mitsubishi UFJ Financial Group shares rose 3.25%, Sumitomo Mitsui Financial Group gained 2.73% and Mizuho Financial Group also gained 2.04%. Nomura Holdings also gained 1.7%.
Meanwhile, tech giant SoftBank Group continued to post marginal losses of 0.62%.
Healthcare and tech stocks lead in Hong Kong
The Hong Kong Hang Seng Index led the gains within the Asia-Pacific region because it rose 2.35% on Wednesday, driven by healthcare and tech stocks.
A number of the biggest gainers within the index are search engine corporations Baiduwhich gained 6.28%, Alibaba health information technology grew by 5.59%, and the Web company Neteaseduring which shares rose by 4.02%.
Nevertheless, the largest gain in HSI was Overseas Orient (international), which jumped by 9.49%. The corporate is the parent company of container shipping company Orient Overseas Container Line.
– Lim Hui Jie
Indicators confirm to BofA that the US is in crisis and money outperforms stocks
Quantitative market metrics observed at Bank of America by a team led by Asset and Quantity Strategist Alex Makedon and Capital and Quantity Strategist Savita Subramanian confirm that the US economy has “deeper” into recession (late-cycle ) for greater than the second month in a row in February, based on Tuesday’s report.
Going back to 1990, similar conditions prevailed seven times, with the downturn lasting a median of 12 months (but various from six months in 1995-1996 to 19 months in the course of the global financial crisis), BofA said.
Furthermore, “Money IS now another,” said BofA, adding that “We view money as more attractive than stocks given our expectations of a complete S&P 500 return of just 2% to three% this yr” vs. with a money yield of 5% on short-term T-bills, and the bank’s economists “still expect a terminal rate of interest of 5.25%-5.5%, even after recent developments.”
The most effective equity investment strategies focus on those who depend on corporations’ money flow, the team wrote. These strategies, emphasizing free money flow to company value or price to free money flow ratio, “have outperformed the index in previous declines, especially outside the zero rate of interest policy (ZIRP) era when money was of little value. lively managers and cheap vs. history”.
BofA’s idea is that free money flow and dividend stocks represent a bird in hand, while high P/E and growth stocks are dream buy ideas. Unfortunately for those hoping for a resurgence of past leaders, “Long duration stocks (buy dream stocks, that are most sensitive to funding costs) could have more room for volatility,” the BofA said.
— Scott Schnipper
Lennar, the First Republic among the many after-hours motion
Lennar – Housing shares gained about 3% in prolonged trading. In response to Refinitiv, Lennar beat analysts’ expectations for earnings and revenue for the last quarter. The corporate reported earnings of $2.06 per share on revenue of $6.49 billion.
First Republic — Regional bank shares were on the move again after the bell, holding at 8.9%. Other bank names, Western Alliance and KeyCorp, also rose, gaining around 5% and three% respectively.
Read the complete list of stocks moving after hours here.
— Samantha Subin
3M – 10-year low – amongst 15 recent S&P 500 52-week lows on Tuesday
Among the many 15 S&P 500 corporations that hit recent 52-week lows on Tuesday was 3M, which fell to its lowest level since February 2013. Formerly often known as Minnesota Mining and Manufacturing, 3M is the one company of the 15 to can also be within the Dow Jones industrial average.
- antenna network (DISH), the bottom since 2009
- Hasbro (MA), the bottom since March 2020
- V.F. Company (VFC), the bottom since 2011
- Hormel (HRL), the bottom since 2019
- Devon energy (DVN), the bottom since January 2022
- centen (CNC), the bottom since October 2021
- CVS Health (CVS), the bottom since April 2021
- SW (LUV), the bottom since May 2020
- 3M (mmm), the bottom since 2013
- Digital generation (gene), the bottom since March 2020
- CF industry (CF), the bottom since February 2022
- WestRock (WRK), the bottom since August 2020
- Advanced Auto Parts (AAP), the bottom since May 2020
- Organon (OGN), the bottom for the reason that spin-off from Merck in June 2021
- Boston properties (BXP), the bottom since 2009
Three S&P 500 stocks hit recent 52-week highs on Tuesday:
- Arista networks (NETWORK), the very best ever since IPO in 2014
- Cadence Design Systems (CDNS), the very best ever since ECAD went public in 1987
- GE Healthcare Technologies (GEHC), the very best ever return to a GE spin-off in December 2022
— Scott Schnipper, Christopher Hayes