Alphabet falls as Justice Department considers Google breakup
Alphabet shares fell more than 1% after the U.S. Justice Department indicated it was considering breaking up the tech giant in the wake of the monopoly ruling.
The department said in its filing that the changes are “necessary to prevent and constrain monopoly maintenance and may include contractual requirements and prohibitions, non-discriminatory product requirements, data and interoperability requirements, and structural requirements.” said.
— Fred Imbert
European market remains strong after lackluster trading start
European markets got off to a lackluster start on Wednesday, but rose slightly as defensive sectors such as utilities, food and beverages, and healthcare remained in positive territory.
Defensive sectors tend to perform better during times of economic uncertainty, as market participants assess risks such as volatility in the Chinese market, conflict in the Middle East, central bank interest rate cuts and the trajectory of inflation.
In the morning, the Stoxx 600 index was trading 1% higher, with all sectors gaining except for banks, which fell 0.3%.
Looking at individual European stocks, the biggest decliners in the pan-European Stoxx index were pharmaceutical and biotech company Bayer, which fell 6.4%, and Dutch financial company ING, which also fell 3%.
The index’s best performer was Continental, the German auto parts maker said in a pre-earnings conference call on Tuesday that sales were down but the profitability of its auto business improved in the third quarter, according to Reuters. The index rose 6.5% after the company said it expects the economy to improve in the next few years.
— Holly Ellyatt
China’s CSI 300 index plunges 7%, ending 10-day winning streak amid mixed trading in Asia
Chinese stocks sold off in choppy trading as Asia-Pacific markets were mixed on Wednesday.
The mainland’s CSI 300 index fell 7.05%, ending a 10-day winning streak to close at 3,955.98, while Hong Kong’s Hang Seng Index was down 1.7% in the last hour of volatile trading.
On Tuesday, HSI had its worst day in 16 years, closing 9.41% lower.
Other Asian markets rose on Wednesday, with Japan’s Nikkei stock average gaining 0.87% to $39,277.96 and Australia’s S&P/ASX 200 index gaining 0.13% to close at $8,187.4.
— Lim Huijie
Rio Tinto stock dropped from acquisition plan
Rio Tinto’s UK-listed shares fell 0.6% after the Australian miner announced it would buy US lithium producer Arcadium Lithium for $6.7 billion.
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Rio Tinto and Arcadium Lithium stock price trends over the past 6 months
Oil and gas stocks rise as crude oil prices rise
The sun sets behind a crude oil pumpjack on a drilling pad in the Permian Basin, Loving County, Texas, USA, November 24, 2019.
Angus Mordaunt | Reuters
Oil and gas stocks in the Stoxx 600 index rebounded to trade 0.15% higher after opening 0.2% lower.
Oil prices stabilized on Wednesday as traders weighed developments in the hydrocarbon-rich Middle East and a possible Israeli attack on Iran’s oil infrastructure against a backdrop of weak global demand and plentiful supplies.
U.S. crude oil inventories rose by nearly 11 million barrels last week, according to data reported by Reuters, far more than analysts expected in a poll compiled by the news agency, and market participants said Tuesday that the American Petroleum Institute This was made clear by citing statistics.
Brent crude oil futures rose 53 cents, or 0.67%, to $77.70 a barrel by 9 a.m. London time. U.S. West Texas Intermediate futures rose 42 cents to $73.98 a barrel.
— Holly Ellyatt
European markets start flat
The pan-European Stoxx 600 index opened flat with a modest gain of 0.06%.
Sentiment brightened in early trading with banks, household goods, insurance, technology and travel and leisure as the only sectors in negative territory.
The FTSE 100 was the only major European index trading in positive territory, up 0.5%, while France’s CAC40, Germany’s Zetra DAX and Italy’s FTSEMIB were all in the red.
— Holly Ellyatt
Boston Fed’s Collins expects further rate cuts
Boston Fed President Susan Collins said Tuesday that more rate cuts are expected as inflation eases and the labor market cools.
“While there is growing confidence in the disinflationary trajectory, there is also a growing risk that the economy will slow further than necessary to restore price stability,” Collins said in a speech to bankers in Boston. “Further policy adjustments are likely to be necessary.”
Central bank officials noted that the Fed’s “dot plot” after its September meeting suggested an additional 50 basis points (0.5 percentage point) rate cut by year-end, but it was unclear whether it would agree with the consensus. I didn’t.
—Jeff Cox
The trade deficit in August fell more than expected.
The US trade deficit fell by more than 10% in August as exports soared, imports fell and the trade deficit with China narrowed.
The goods and services imbalance for the month totaled $70.4 billion, down 10.8% from July’s upwardly revised deficit of $78.9, the Commerce Department said Tuesday. Economists surveyed by Dow Jones had expected $70.8 billion.
This was because exports increased by $5.3 billion (2%) and imports decreased by $3.2 billion (0.9%). However, the year-to-date trade deficit still increased by 8.9% year-on-year.
—Jeff Cox
Crude oil is sold due to concerns about war in the Middle East
On October 2, 2024, a smoke cloud occurred during an Israeli airstrike in Qiam, southern Lebanon, near the Israeli border.
– | AFP | Getty Images
Oil futures fell nearly 3% in morning trading as fears of imminent Israeli retaliation against Iran eased somewhat.
U.S. crude oil fell $2.25 (2.92%) to $74.89 per barrel at around 9:17 a.m. ET. Brent crude oil, the global benchmark, fell $2.26, or 2.79%, to $78.67 per barrel.
Oil prices rose 13% by Monday’s close since Iran fired about 180 ballistic missiles toward Israel last week. The Iranian attack had heightened fears that Israel would retaliate by attacking the country’s oil industry. However, President Joe Biden publicly discouraged Israel from taking this course.
Markets were also disappointed that Chinese officials did not announce any new stimulus at a press conference on Tuesday. Prior to the tensions in the Middle East, the oil market was in a bearish mood due to weak demand from China and concerns that crude oil supplies would exceed global demand next year.
— Spencer Kimball
European Market: Click here for opening call
European markets are expected to open mixed on Wednesday.
According to IG data, the UK’s FTSE 100 index is expected to open six points higher at 8,199, Germany’s DAX rises seven points to 19,066, France’s CAC unchanged at 7,521 and Italy’s FTSE MIB at 61. It is expected to drop by 33,585 points.
Notable data releases in Europe today include the German government’s latest economic forecasts. There are no major financial results announcements.
— Holly Ellyatt
