6 Hours Ago
Business morale subdued in Japan as Reuters Tankan survey unchanged in October
Confidence among large Japanese manufacturers was subdued in October, according to the Reuters Tankan survey, which measures business sentiment among large Japanese companies.
The Reuters poll, which tracks the Bank of Japan’s closely watched tankan quarterly survey, saw manufacturers’ mood flat at +4 index points in October, although it was expected to inch up over the coming three months.
The services-sector mood edged up, as upbeat domestic demand helped partly offset the hit to the economy from global headwinds.
The service-sector index rose to +24 in October, slightly improving from +23 from the previous month.
— Shreyashi Sanyal
5 Hours Ago
Seoul stocks jump as Samsung leads gains
South Korean stocks jumped about 2%, hitting a two-week high on a boost from chip giant Samsung Electronics.
Samsung is expecting a 78% drop in operating profit in the quarter ended September, according to guidance released by the company. The operating profit forecast was slightly higher than analyst expectations. Shares of the company jumped 3.77%.
Counterpart SK Hynix rose about 3%.
— Shreyashi Sanyal
8 Hours Ago
Birkenstock expected to price IPO at $46 per share
German shoemaker Birkenstock is expected to price its initial public offering at $46 per share on Tuesday, CNBC reported, citing a person familiar with the matter.
The pricing would put Birkenstock near the midpoint of its $44 to $49 per share range, and give it a tentative valuation of roughly $8.64 billion.
The company plans to trade on the New York Stock Exchange under the ticker “BIRK.”
— Leslie Picker, Gabrielle Fonrouge
8 Hours Ago
Smallcaps scored 5th straight advance Tuesday, outperforming S&P 500
Small capitalization companies scored a fifth consecutive advance Tuesday, with the Russell 2000 index rising 1.14%, more than twice the 0.52% gain in the S&P 500.
The Russell 2000 is higher by 2.8% since Oct. 3 while the S&P 500 has risen 3.0%.
The smallcap benchmark is 11.5% below its 52-week high reached on Feb. 2 while the S&P 500 is 5.4% below its 52-week high dating from July 27. Over the first two trading days of this week, smallcaps are up 1.7% versus the S&P 500’s 1.2% gain.
—Scott Schnipper
9 Hours Ago
Stock futures open little changed
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Business morale in Japan remains subdued as Reuters Tankan survey shows no change in October
Confidence among large Japanese manufacturers has not seen any improvement in October, according to the latest Reuters Tankan survey. The survey measures business sentiment among major Japanese companies and indicates that overall business morale has remained subdued.
The Reuters poll, which tracks the Bank of Japan’s closely monitored tankan quarterly survey, revealed that the mood among manufacturers remained flat at +4 index points in October. However, analysts expect a slight improvement in the coming months. On the other hand, the services-sector mood showed a slight improvement due to upbeat domestic demand, helping to offset the negative impact of global headwinds. The service-sector index rose to +24 in October, up from +23 the previous month.
Meanwhile, in South Korea, the stock market experienced a significant surge, with the main driver being chip giant Samsung Electronics. South Korean stocks jumped by about 2%, reaching a two-week high. This positive momentum came despite Samsung’s expectation of a 78% drop in operating profit for the quarter ended September. The company’s operating profit forecast, however, exceeded analyst expectations, leading to a 3.77% increase in Samsung’s shares. Counterpart SK Hynix also saw a rise of approximately 3%.
In Germany, shoemaker Birkenstock is set to price its initial public offering (IPO) at $46 per share, according to CNBC. This pricing places Birkenstock in the middle of its expected range of $44 to $49 per share, giving the company a tentative valuation of around $8.64 billion. The IPO will lead to Birkenstock trading on the New York Stock Exchange under the ticker symbol “BIRK.”
Furthermore, small capitalization companies have been performing well, outperforming the S&P 500 for the fifth consecutive day. The Russell 2000 index rose by 1.14%, more than double the 0.52% gain in the S&P 500. Since October 3, the Russell 2000 has seen a 2.8% increase, while the S&P 500 has risen by 3.0%. Despite still being 11.5% below its 52-week high reached on February 2, the smallcap benchmark shows resilience. In comparison, the S&P 500 is 5.4% below its 52-week high from July 27. In the first two trading days of this week, smallcaps have gained 1.7% compared to the S&P 500’s 1.2% increase.
To conclude, while business morale in Japan remains subdued, the services sector shows slight improvements. In South Korea, the stock market gets a boost from Samsung’s better-than-expected operating profit forecast. Additionally, Birkenstock’s IPO pricing and the strong performance of smallcap stocks indicate positive developments in the global market.