European markets opened on a choppy note on Thursday, reversing the negative trend seen throughout the week. The pan-European Stoxx 600 index opened 0.1% higher, with sectors showing mixed performance. Travel and leisure stocks were down 0.8%, while oil and gas witnessed the biggest gains, up 0.8%.
In Australia, retail sales for the month of August grew slower than expected. Seasonally adjusted retail sales climbed 0.2% compared to the prior month, falling short of the 0.3% expected by economists. The Australian Bureau of Statistics reported retail sales at A$35.4 billion ($22.56 billion), marking a 1.5% increase from the same period last year. Ben Dorber, head of retail statistics at ABS, noted that consumers continued to restrain their retail spending due to cost-of-living pressures.
Shares of Sea Limited, the parent company of e-commerce marketplace Shopee, surged 4.86% after Indonesia’s ministry of trade banned e-commerce transactions on social media platforms. This move dealt a blow to popular short video app TikTok, which competes with Shopee in Indonesia. TikTok has been given a week to become a standalone app or face closure in Indonesia. The trade minister emphasized that the regulation aims to ensure fair competition among businesses and protect user data.
Japanese automaker Toyota saw its shares slide 0.27% despite reports of its plan to build a third car plant in India. According to sources, the new plant would have an initial capacity of 80,000 to 120,000 vehicles per year and could increase the company’s existing manufacturing capacity in India by as much as 30%. Toyota is also developing a new sport utility vehicle (SUV) specifically for the Indian market.
Wells Fargo strategist, Scott Wren, warned investors to exercise caution when adding exposure to high-yield bonds due to the current economic cycle and the expectation of high interest rates. While the high-yield sector is generally not recommended for overexposure, Wren highlighted that discerning investors have opportunities in top-rated issuers.
As the trading week, month, and quarter draw to a close, stocks are facing losses across the three major indexes. The Dow is down 1.2% for the week, 3.4% for the month, and 2.5% for the quarter. The S&P 500 is down 1.1%, 5.2%, and 4% respectively, while the Nasdaq Composite is down 0.9%, 6.7%, and 5% respectively. Despite these losses, all three indexes remain up for the year, reflecting the strength of the first half of the year.
The energy sector emerged as the top winner for the third quarter, with a 13.5% increase driven by rising oil prices. West Texas Intermediate crude futures saw a 32% increase during the quarter, the best performance since the first quarter of 2022. Marathon Petroleum, Halliburton, and Phillips 66 were among the leaders in the energy sector.
After-hours trading witnessed some notable stock movements. Micron Technology saw a 4% drop after providing weaker-than-expected earnings guidance for the current quarter. Peloton Interactive, on the other hand, rose 16% after announcing a five-year partnership to develop content for Lululemon. Luxury wine producer Duckhorn Portfolio experienced a 2.8% decline after providing full-year guidance that fell short of analysts’ expectations.
In the futures market, stock futures traded slightly higher, with futures tied to the Dow, S&P 500, and Nasdaq 100 all up about 0.2%.
Overall, the markets continue to react to various economic and regulatory developments, with industry sectors experiencing mixed performance. Investors are advised to exercise caution and consider the potential risks and opportunities in their investment decisions.