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 14 June 2024. BDN financial editor Roger Willis reports.

News that US consumer price inflation fell to 3.3% in May buoyed markets and had investors  rattling their cages to price in at least two quarter-point rate cuts from the Federal Reserve this year — even though central bankers had clearly stated anticipation of cutting rates just once if the inflation trajectory remained stable. This rumour-driven rubbish inevitably faded as the week progressed and indices became decidedly mixed.

Blue-chip S&P 500 stocks clung onto a 1.6% gain, though, and techie gamblers pushed NASDAQ’s Composite a dizzy 3.2% up. Sensible moves were reserved for the S&P MidCap 400 and Dow Jones Industrial Average, with respective 0.9% and 0.5% losses at the weekly conclusion. Among MidCap biker stocks, Harley-Davidson’s ongoing decline stood out, its share price sinking remorselessly towards 30-buck shame.

European market indices fell sharply, as the prospect of a far-right French government un-nerved investors throughout the eurozone. Germany’s Xetra Dax in Frankfurt slumped by 3%, the Wiener Börse in Austria finished 3.4% down and Milan’s Borsa Italiana FTSE MIB dived by a painful 5.8%.

Secondary suffering came from the likelihood that punitive EU tariffs on cheap Chinese EV imports could approach 50% and harsh retaliation against European automotives trading in China will become inevitable. All four motorcycle-related listings lost value.

The Bank of Japan said it would start trimming its huge bond purchases and announce a detailed plan next month on reducing its nearly $5 trillion balance sheet, taking another step toward unwinding massive BoJ monetary stimulus. This was taken as good news by Japanese investors and the Nikkei 225 stock index spanning Tokyo and Osaka exchanges remained positive for a second consecutive week, this time rising by 0.3%. Among biker stocks, only Suzuki failed to prosper.

Calm after India’s General Election storm saw Mumbai market indices positive but steady. S&P’s BSE Sensex 30 rose by 0.4% and the NSE Nifty 50 put on 0.8%. All five motorcycle manufacturing majors enjoyed profitable progress for stock values on a weekly basis. And four of the have bragging rights for double-digit percentage monthly gains. Royal Enfield parent Eicher is still playing catch-up.

China’s imminent tit-for-tat EV tariff war, following announcement of obstructive EU taxation on Chinese exports, had a visible impact on shares in China’s leading EV manufacturers, which spread to overall gloom for market indices. Shanghai’s all-share SSE Composite and the blue-chip CSI 300 respectively retreated by 0.6% and 0.9%. Half of China’s listed motorcycle producers hung onto positivity, though, noticeably including battery-electric bike makers, presumably because ePTW brands aren’t included in the EU targets.