SHARE PRICES AND MARKET ANALYSIS

A snapshot of motorcycle and ATV industry share performance across key manufacturers and major global markets at the trading week closure on Friday 9 June 2023. BDN financial editor Roger Willis reports.

USA — RELAXED TRADING

Wall Street calmed down as fresh unemployment data pointed towards a cooling economy, applying pressure on the US Federal Reserve to end its fiscal tightening policy sooner. So market indices reflected returning confidence with modest positivity by close of play.

The blue-chip S&P 500 and Dow Jones Industrial Average respectively finished 0.4% and 0.3% up. NASDAQ’s Composite managed only a 0.1% improvement. But that concealed a surge for Tesla stock, after the electric car maker revealed a tie-up with General Motors over BEV charging systems access. S&P’s MidCap 400 did best with a 1.5% gain.

Most biker-related stocks lurk in MidCap listings and they were consistently positive. Among them, LiveWire got a lift from the arrival of a new chief executive ending the managerial tenure of Harley supremo Jochen Zeitz at the brand.

EUROPE — EUROZONE IN RECESSION

The European Central Bank revised its economic data for the past pair of consecutive quarters and announced that the eurozone had fallen into a recession. ECB president Christine Lagarde also opined that underlying eurozone price pressures remain strong, indicating that she will continue to raise interest rates.

However, investor response was decidedly mixed and market indices behaved accordingly. In Germany, Frankfurt’s Dax Performance sank by 0.6%. But the two large Teutonic automotives with motorcycling sideshows proved immune to negative sentiment. In Austria, the Wiener Börse ATX rose by 0.7% and KTM parent Pierer added value. Similarly, the Borsa Italiana’s FTSE MIB was 0.3% up and so was Piaggio’s share price.

JAPAN — BETTER PROSPECTS

Tokyo followed the US mood improvement and its Nikkei 225 index stacked on a healthy 2.4%. All four indigenous motorcycle manufacturers benefited from assertive investment decisions.

INDIA — CASHING IN THEIR CHIPS

Central bankers at the Reserve Bank of India signalled that tighter monetary conditions in  the country are likely to persist, provoking a bout of profit-taking that dragged share prices downwards. Mumbai’s BSE Sensex stayed shiny side up on a weekly basis by a mere 0.1% after two sessions of rampant sell-offs. Royal Enfield parent Eicher was the stand-out victim among biker stocks.

CHINA — GLOOM IN THE ROOM

Data showing that Chinese exports contracted far more than expected in May knocked another dent in hopes of a strong economic rebound. Shanghai’s all-share SSE Composite index flatlined in a knee-jerk reaction to this depressing news and the blue-chip CSI 300 copped a 0.7% loss. Eight of China’s eleven biker listings declined in value.