US stocks gain, Treasury yields hit multi-year highs ahead of expected Fed rate hike: Reuters

Update US stocks gain, Treasury yields hit multi-year highs ahead of expected Fed rate hike: Reuters
About 20 minutes into trading, the Dow Jones Industrial Average was flat (Shutterstock)
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Updated 02 May 2022

US stocks gain, Treasury yields hit multi-year highs ahead of expected Fed rate hike: Reuters

US stocks gain, Treasury yields hit multi-year highs ahead of expected Fed rate hike: Reuters

NEW YORK: Wall Street recovered some lost ground on Monday and benchmark US Treasury yields hit a 3-1/2-year high at the start of an eventful week of corporate earnings, economic data, and an expected interest rate hike from the US Federal Reserve, according to Reuters.

All three major US stock indexes were last modestly green as the 10-year Treasury yield crept closer to the 3 percent mark and touched its highest level since December 2018.

US stocks’ modest rebound comes in the wake of the S&P 500’s fourth straight weekly decline which capped its worst January-April percentage drop since 1932, as market participants girded their loins for an expected 50-basis-point interest rate rise at the conclusion of the Fed’s two-day monetary policy meeting on Wednesday.

“There are several crosswinds right now,” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York. “The first is the Fed, the second is the war (in Ukraine) and the third is inflation.”

“Most economies are headed for a hard landing – a recession — and that’s what the market is discounting now,” Cardillo added.

A report from the Institute for Supply Management showed US factory activity losing steam, its purchasing managers’ index coming in well below consensus.

This followed a PMI report from China which showed factory activity contracting for the second straight month as widespread COVID-19 shutdowns disrupted production and supply chains.

The Dow Jones Industrial Average rose 188.63 points, or 0.57 percent, to 33,165.84, the S&P 500 gained 31.09 points, or 0.75 percent, to 4,163.02 and the Nasdaq Composite added 153.37 points, or 1.24 percent, to 12,488.01.

The glum China factory data dragged European stocks sharply lower, although the STOXX 600 had partly recovered from a sudden 3 percent plunge earlier in the session, what some brokers called a “flash crash” caused by an erroneous trade.

The pan-European STOXX 600 index lost 1.05 percent and MSCI’s gauge of stocks across the globe gained 0.18 percent.

Emerging market stocks lost 0.40 percent. MSCI’s broadest index of Asia-Pacific shares outside Japan closed 0.46 percent lower, while Japan’s Nikkei lost 0.11 percent.

US Treasury yields gained ground, with long-dated debt hitting multi-year highs.

Benchmark 10-year notes last fell 24/32 in price to yield 2.9768 percent, from 2.885 percent late on Friday.

The 30-year bond last fell 52/32 in price to yield 3.038 percent, from 2.946 percent late on Friday.

Crude prices plunged over demand worries driven by the bleak factory data from China, the world’s largest oil importer.

US crude fell 2.73 percent to $101.83 per barrel and Brent was last at $104.35, down 2.6 percent on the day.

The dollar hovered just below a 20-year high against a basket of currencies ahead of the Fed’s expected rate hike as investors focused on the possibility that the FOMC could adopt an even more hawkish stance than expected.

The dollar index rose 0.48 percent, with the euro down 0.05 percent to $1.0536.

The Japanese yen weakened 0.19 percent to 130.10 per dollar, while Sterling was last trading at $1.2531, down 0.32 percent on the day.

Gold prices slipped, edging closer to 2-1/2-month lows as investors anticipated a hefty interest rate hike from the Fed aimed at cooling inflation.

Spot gold dropped 1.8 percent to $1,863.24 an ounce.

— Reuters


Saudi miner Ma’aden’s half-year profit more than triples to $1.7bn

Saudi miner Ma’aden’s half-year profit more than triples to $1.7bn
Updated 13 sec ago

Saudi miner Ma’aden’s half-year profit more than triples to $1.7bn

Saudi miner Ma’aden’s half-year profit more than triples to $1.7bn

RIYADH: Saudi Arabian Mining Co., better known as Ma’aden, saw its profit soar 232 percent to SR6.2 billion ($1.7 billion) during the first half of 2022, according to a bourse filing.


Here’s what you need to know before Tadawul trading on Thursday 

Here’s what you need to know before Tadawul trading on Thursday 
Updated 10 min 37 sec ago

Here’s what you need to know before Tadawul trading on Thursday 

Here’s what you need to know before Tadawul trading on Thursday 

RIYADH: Saudi stocks ended higher for a third straight day on Wednesday, thanks to strong earnings results from most listed companies.

TASI, the main index, gained 0.8 percent to close at 12,431 and the parallel Nomu market edged 0.13 percent higher to 22,227.

Most Gulf peers advanced in line with Saudi Arabia, led by a 0.8 percent gain for Abu Dhabi’s bourse.

Dubai, Oman, and Qatar added 0.3, 0.1, and 0.4 percent, respectively, while Bahrain and Kuwait were down 1 percent and 0.2 percent, respectively.

Elsewhere in the Middle East, Egypt’s EGX30 exited the session almost flat.

In energy trading, Brent crude was priced at $97.31 a barrel by 9:16 a.m. Saudi time on Thursday, while US West Texas Intermediate traded at $91.79 a barrel.

Stock news

ACWA Power Co. said that operations at Umm Al Quwain IWP were launched, with a production capacity of 682,000 cubic meters per day of desalinated potable water

ACWA Power recorded a 21 percent jump in profits to SR542 million ($144 million) for the first half of 2022

Savola Group entered an SR459 million agreement to sell its shares in Knowledge Economic City Co. and Knowledge Economic City Developers Co. Limited to Taiba Investment Co.

Astra Industrial Group reported a 202 percent profit surge to SR318 million for the first half of 2022

Saudi Co. for Hardware turned into losses of SR19 million during the first half of 2022. The company also appointed Sameer Alhamidi as vice chairman of the board effective Aug. 11

Saudi Vitrified Clay Pipes Co.'s net losses widened by 661 percent to SR9 million during the first half of 2022

Eastern Province Cement Co. posted a 41 percent profit drop to SR72 million

Walaa Cooperative Insurance Co. got the Capital Market Authority’s approval to increase its capital to SR850 million for the merger with SABB Takaful

Saudi Arabian Mining Co. announced that Mansourah & Massarah gold mine plant is near completion, adding that pre-commissioning activities started

Saudi Industrial Services Co.’s profit dropped 93 percent during the first half of 2022 to SR3.9 million

Calendar

August 14, 2022

Saudi Aramco will announce its financial results for the second quarter of 2022

Close of Naba Alsaha Medical Services Co.’s IPO subscription

August 15, 2022

Naqi Water Co. will start trading its shares on the Saudi Exchange’s main market

 


PIF-owned ACWA Power’s H1 profit jumps 21% to $144m

PIF-owned ACWA Power’s H1 profit jumps 21% to $144m
Updated 5 min 39 sec ago

PIF-owned ACWA Power’s H1 profit jumps 21% to $144m

PIF-owned ACWA Power’s H1 profit jumps 21% to $144m

RIYADH: ACWA Power Co., which is part-owned by Saudi Arabia’s Public Investment Fund, has posted a 21 percent jump in profits to SR542 million ($144 million) for the first half of 2022, a bourse filing revealed.

Profits of the energy giant grew mainly in response to new projects beginning operations, which boosted income from equity-accounted investors, it said.

Most recently, ACWA Power announced the start of operations at a $797 million desalination plant in the UAE, namely Umm Al Quwain IWP.

With an SR251-billion portfolio, ACWA Power was the second largest utility company on the Saudi bourse after Saudi Electricity Co.


Naqi Water to debut on TASI market early next week following strong IPO

Naqi Water to debut on TASI market early next week following strong IPO
Updated 40 min 46 sec ago

Naqi Water to debut on TASI market early next week following strong IPO

Naqi Water to debut on TASI market early next week following strong IPO

RIYADH: Naqi Water Co. will start trading its shares on Saudi Arabia’s stock market on Aug. 15, after attracting huge demand during the initial public offering, according to a bourse filing.

The Saudi-based water producer generated SR560 million ($150 million) worth of subscriptions as it offered 600,000 shares to retail subscribers.

Prior to that, the final offer price was set at the top end of an indicated range of SR69, following a strong bidding period.

Naqi Water will float a 30 percent stake, representing six million shares, on the Kingdom’s main stock index TASI.


Savola Group to sell all shares in Knowledge Economic City for $122m

Savola Group to sell all shares in Knowledge Economic City for $122m
Updated 55 min 30 sec ago

Savola Group to sell all shares in Knowledge Economic City for $122m

Savola Group to sell all shares in Knowledge Economic City for $122m

RIYADH: Savola Group has entered into an SR459-million ($122 million) agreement to sell its stake in Knowledge Economic City Co. and Knowledge Economic City Developers Co. Limited.

This move came in light of Salove’s strategy of focusing on investing in its main operations in the food and retail sectors, while ending investments in non-core businesses, the group said in a bourse filing.

Knowledge Economic City is owned by Savola Group directly and indirectly at an approximate share of 11.47 percent.

Knowledge Economic City’s shares ended Wednesday’s trading session 6.12 percent higher at SR14.56.