Financial Wire - Financial News

Oil, Ceasefire Views Damp Wall Street Pre-Bell; Asia, Europe Off

Wall Street futures pointed moderately lower pre-bell Thursday, as traders weighed rising oil prices and sought clarity on Persian Gulf war outlooks.The Strait of Hormuz apparently remained closed to the vast majority of oil tanker traffic early Thursday.In the futures, the S&P 500 fell 0.4%, the Nasdaq declined 0.4% and the Dow Jones was off 0.4%.West Texas Intermediate crude oil traded higher at $99.35, up 5.2% in morning trades.Investors also await the personal consumption expenditures-core (PCE-core) price index for February, slated for release in Washington at 8:30 am ET. The Federal Reserve's preferred inflation metric may provide clues to price pressures, but before the Middle East turmoils of March.Asian exchanges traded mostly lower overnight, while European bourses tracked moderately south midday on the continent.On the economic calendar, in addition to the PCE-core report, is the revised Q4 GDP bulletin, the weekly jobless claims bulletin, the February personal income and outlays report, and the Q4 corporate profit release, all at 8:30 am ET.In premarket action, Bitcoin traded at $71,431 and 10-year US Treasuries offered 4.28%. Spot gold commanded $4,740 an ounce.

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Germany's Manufacturing Production Contracts in February on Lower Pharmaceuticals, Electronics Output

Production in Germany's manufacturing sector unexpectedly declined month over month in February, even before the war in the Middle East began, as output from the pharmaceuticals and electronics industries weakened, provisional data from the Federal Statistical Office showed Thursday.Real, price-adjusted manufacturing output dropped 0.3% in February, after seasonal and calendar changes, compared with the upwardly revised stagnation in January. The consensus estimate for February was a 0.9% rise.On a monthly basis, production of pharmaceuticals and computer, electronic, and optical products contracted 4.4% and 3.9%, respectively. Amid the cold winter weather, construction output slipped 1.2%, while automotive production improved 1.7%. Destatis data paints a picture of a "very reluctant, hesitant consumer," while the manufacturing sector struggles to gain positive momentum, said Carsten Brzeski, the global head of macro at ING.Annually, German manufacturing output after calendar adjustment was stable, against the revised 0.9% decrease in January. Excluding energy and construction, industrial production in February slipped 0.1% on the month and 0.6% on the year.In energy-intensive industries, which account for 17% of industrial gross value, production expanded 1.9% month over month and 0.1% on a yearly basis. Consumer goods production fell 1.5% sequentially, while the output of intermediate goods and capital goods rose by 0.4% and 0.1%, respectively. Germany, one of Europe's largest net importers of energy, clocked a 0.3% monthly gain in energy production in February."All in all, February's macro data shows that even without the war in the Middle East, the German economy was unfortunately on track for yet another quarter of contraction. To make things worse, the war in the Middle East, no matter how sustainable yesterday's announced ceasefire will prove to be, will leave clear marks on the German economy over the next few months. As much as we were hoping to finally comment on some good economic news from Germany, it is a bit like waiting for a German train these days: definitely delayed and uncertain whether it will ever arrive," Brzeski concluded.

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US Markets8d ago

Constellation Issues Weak Full-Year Earnings Outlook as Fiscal Fourth-Quarter Results Decline

Constellation Brands (STZ) shares inched lower early Thursday after the beer and wine company provided a full-year earnings outlook below Wall Street's estimates and recorded year-over-year declines in its fiscal fourth-quarter results.The maker of Modelo and Corona anticipates comparable earnings to come in between $11.20 and $11.90 per share for fiscal 2027, it said late Wednesday, while the current consensus on FactSet is for $12.38. In the previous fiscal year, comparable EPS dropped 14% to $11.82 on an annual basis.In April 2025, the company projected EPS to grow by mid-single-digits to low-double-digits for fiscal 2027. Constellation also withdrew its previously issued fiscal 2028 outlook to reflect the current environment, it said.Enterprise organic sales, beer sales and organic sales in the wine and spirits division are all expected to range from a 1% decline to a 1% rise for the ongoing fiscal year, according to Constellation. Company-wide organic sales slid 10% in fiscal 2026."Looking ahead to fiscal 2027, while we are encouraged by the momentum displayed during the fourth quarter across our beer and wine and spirits businesses, we expect the operating environment to remain dynamic given the evolving socioeconomic backdrop and limited near-term visibility," the company said.The stock declined 0.8% in the most recent premarket activity.The company posted adjusted EPS of $1.90 for the three-month period ended Feb. 28, down from $2.63 the year before, but ahead of the Street's view of $1.71. Net sales fell 11% to $1.92 billion, beating the average analyst estimate of $1.88 billion."Despite the dynamic operating environment in fiscal 2026, we remained focused on the factors within our control and executed with discipline," Chief Executive Bill Newlands said in the earnings release. "We expect consumers will continue to navigate a shifting macroeconomic environment, but we remain encouraged by the momentum we saw in the fourth quarter."Beer revenue ticked up 1% to $1.73 billion, buoyed by shipment growth of 1.1% and favorable pricing. The division's depletion rate, or the pace at which units are sold to end consumers, edged up 0.6%, as gains in the Pacifico, Victoria and the Modelo Chelada brands more than offset declines in Modelo Especial and Corona Extra.Sales of wine and spirits tumbled 58% to $194.2 million, amid a 73% plunge in shipment volume. This reflected the impacts of the divestiture of certain wine and spirits brands, strategic pricing actions on certain brands and changes in distributor contract obligations, the company said. The division's depletion rate inclined 8.3%.

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Treasury8d ago

Commerzbank on Overnight News

Commerzbank in its "European Sunrise" note of Thursday highlighted:Markets: United States Treasuries weaken in late New York session, turn sideways in Asia. E-minis little changed, Asian equities mixed. The US dollar (USD) trades stronger. The euro (EUR) at US$1.167. Brent recovers to $97/barrel.Fed: Minutes show that the vast majority thought inflation progress could be slower, while it viewed employment risks as skewed to the downside. "Many" said higher-for-longer inflation could call for hikes, while "most" judged protracted Iran war could hit job market and warrant cuts and "some" saw "strong case" for two-sided language on rate path.Fed: San Francisco Federal Reserve Bank President Mary Daly calls the economy "remarkably resilient," says it's too early to know the economic consequences of the Iran war.Fed economist Chris Phelan is said to be the front-runner for President Donald Trump's economic adviser role (Politico sources).Iran plans to restrict traffic through the Strait of Hormuz and to charge tolls (WSJ). White House reiterates it wants no limitations at Hormuz, including tolls, says Lebanon isn't part of the ceasefire. Vice President JD Vance says there won't be any sanctions relief if Iran develops nuclear weapons, sees signs that Hormuz is starting to reopen, Israel offered to restrain strikes during talks.Iran: Parliament speaker Mohammad Bagher Ghalibaf says ceasefire deal with the U.S. was violated, the Islamic Revolutionary Guard Corps (IRGC) says it's preparing "heavy" response to attack on Lebanon (Mehr). Iran designates routes for safe passage through the Strait of Hormuz (Nour).Iran/Israel: Prime Minister Benjamin Netanyahu says this isn't the war's end. He insisted that the ceasefire wouldn't include Hezbollah.NATO: President Trump says NATO "won't be there if we need them again." Trump weighs punishing certain countries over Iran support, including moving troops out of some states and potential closure of at least one base (WSJ sources). NATO Secretary-General Mark Rutte says his meeting with Trump was a discussion among "good friends."Venezuela: The U.S. weighs lifting central bank sanctions to unlock oil.==EUROPE:EU: European Commission Executive Vice President Valdis Dombrovskis says the European Union will be hit by "stagflationary shock" (FT).France: Budget Minister David Amiel says the government is sticking to the 2026 deficit target of 5%, could beat it depending on the economy.

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Financial News

Oil, Ceasefire Views Damp Wall Street Pre-Bell; Asia, Europe Off

Germany's Manufacturing Production Contracts in February on Lower Pharmaceuticals, Electronics Output

Oil, Ceasefire Views Damp Wall Street Pre-Bell; Asia, Europe Off

Germany's Manufacturing Production Contracts in February on Lower Pharmaceuticals, Electronics Output

Indian Equities Slip on Thursday Amid Rising Middle East Tensions

Canada's Provincial Bond Valuations "Hint" at An Oil Exposure Premium, Says National Bank

Middle East War Dents Japan Consumer Confidence

Japan Machine Tool Orders Jump 28% in March

Market Chatter: QatarEnergy Initiates LNG Production Restart at Ras Laffan Complex

Middle East War Uncertainty Caps Asian Stock Markets

Convatec Launches New Strategy to Hit Upgraded Revenue Targets

Constellation Issues Weak Full-Year Earnings Outlook as Fiscal Fourth-Quarter Results Decline

Canada's Vulnerability Stands Out Among Trade Partners Amid U.S. Tariffs, Says RBC

Commerzbank on Overnight News

Malaysian Shares Ended Lower, Mirroring Regional Losses; M N C Wireless' Shares Plunge 23%

US 10-Year Treasury Yield Falls to 4.29% Pre-Bell; 2-Year Rate Leans Lower to 3.79%

US Treasury Yields Mixed Ahead of Fed's Preferred Inflation Data as Lebanon Pounding Risks Iran Truce

European Council Calls for Swift Progress to Lasting US-Iran Peace, Protect Civilians, Restore Energy Normalcy

Singapore Shares Retreat, Track Regional Losses as Markets Asses Fragile US-Iran Ceasefire

Strait of Hormuz Flow to Remain Constrained for Weeks Despite Ceasefire, Says Sparta

Hong Kong Stocks Fall As US-Iran Ceasefire On Thin Ice; Two Firms File For IPO

Malaysian Industrial Production Mixed in March