A snapshot of motorcycle and ATV industry share performance across key manufacturers and major global markets at the trading week closure on Friday 20 September 2024. BDN financial editor Roger Willis reports.
USA — RATE REDUCTION CELEBRATED
The US Federal Reserve finally launched an interest easing policy midweek, slashing half a percentage point off its benchmark rate — twice the anticipated cut. Fed chairman Jay Powell intimated that there would be more to come this year, having effectively tackled inflation and now in a position to focus on America’s weakening economy instead.
This news inevitably stoked a massive stocks rally, which went global, although equities in New York eased back as the weekend approached. Nevertheless, Wall Street market indices all closed with comfortable positivity. The blue-chip S&P 500 and Dow Jones Industrial Average boasted respective 1.4% and 1.6% gains, S&P’s MidCap 400 topped the pile on a 2.3% advance and the NASDAQ Composite added 1.5%.
Leaders of the conventional powersports pack Harley-Davidson and Polaris were notable beneficiaries. But some electric options didn’t join the ride. The woes of Energica parent Ideanomics were unabated and Harley’s LiveWire spin-off took a dive.
| Currency: dollar | Price | Week | Month |
| Harley-Davidson | 38.58 | +2.2% | +1.2% |
| Polaris Industries | 84.33 | +3.3% | -2.5% |
| Textron | 87.91 | +0.2% | -2.2% |
| Ideanomics (Energica) | 0.12 | -40% | -62.5% |
| Niu Technologies | 1.88 | +5% | 2.2% |
| LiveWire | 6.20 | -8.3% | -5.6% |
EUROPE — CHINA SYNDROME
The eurozone’s quarter percentage point interest rate cut in the previous week disappeared from view and the US boost was ignored, as a spate of profit warnings from German automotives accelerated — Mercedes Benz joining cautions from Volkswagen and BMW. This surge of negativity was based on deterioration in trade with China, the world largest auto market. However, its spread was wider, noticeably infecting quoted European PTW manufacturers too.
The impact on market indices left them struggling for traction. Frankfurt’s Xetra Dax barely got off the floor, finishing just 0.1% ahead. The Wiener Börse ATX in Austria wasn’t much better, only 0.4% up, and Milan’s FTSE MIB put on 0.6%.
| Currency: euro | Price | Week | Month |
| BMW | 73.70 | +0.5% | -12.7% |
| Volkswagen | 95.75 | -3.1% | -9.4% |
| Pierer Mobility | 26.00 | -4.4% | -9.7% |
| Piaggio Group | 2.63 | -1.2% | +0.4% |
JAPAN — KEEN ON THE MOOD SWING
Bank of Japan Governor Kazuo Ueda tried to temper enthusiasm for the US interest rate cut by suggesting that Japanese rates would remain stationary. But investors didn’t take much notice, so Tokyo and Osaka’s Nikkei 225 stock market index enjoyed a 3.1% rise. Leading exporters, including all four indigenous motorcycle-related megabrands, rose too.
| Currency: yen | Price | Week | Month |
| Honda | 1556.5 | +5.7% | -1.4% |
| Yamaha | 1268 | +1.6% | -1.3% |
| Suzuki | 1591.5 | +1.2% | -5.4% |
| Kawasaki | 5411 | +10.1% | +7.9% |
INDIA — CASHING IN ON GROWTH
Indian market indices were lively for different reasons, as Mumbai’s S&P’s BSE Sensex 30 and National Stock Exchange Nifty 50 respectively racked further weekly gains, this time climbing by 2% and 1.7% as consumer activity blossomed. Major Indian motorcycle manufacturer share prices grew in parallel, with only a slight inexplicable aberration from Norton parent TVS.
| Currency: rupee | Price | Week | Month |
| Hero MotoCorp | 6013.25 | +3.8% | +11.7% |
| Bajaj Auto | 11941.70 | +1.7% | +14.8% |
| TVS Motor | 2815.60 | -0.5% | +1.8% |
| Eicher Motors | 4963.15 | +2.2% | +1.3% |
| Mahindra | 2950.85 | +7.7% | +6.9% |
CHINA — PARTY PROMISES
Yet another raft of economic stimulus intervention by the Chinese Communist Party encouraged weary investors to risk some of their capital once more. Shanghai’s SSE Composite all-share index and the CSI 300 blue-chip yardstick therefore turned tentatively positive with respective 1.2% and 1.3% gains.
Eight of China’s ten listed bike producers accrued various portions of value. It should be noted, though, that the most successful among them — Jialing holding company CETC — is an almost wholly-owned State enterprise, so its investment growth was probably a commie stooge operation.
| Currency: yuan | Price | Week | Month |
| Qianjiang | 16.95 | +3.4% | +19.1% |
| Zongshen | 11.92 | +4.3% | +5.3% |
| Sundiro | 3.01 | -5% | +5.6% |
| CETC (Jialing) | 11.34 | +11.8% | +11.9% |
| Lifan | 3.94 | -0.5% | +0.8% |
| Loncin | 6.99 | +1.6% | +12.6% |
| Linhai | 7.60 | +2% | +15.5% |
| Guangzhou Auto | 7.34 | +2.7% | -0.3% |
| CFMoto | 149.29 | +3.8% | +18.5% |
| Xinri E-Vehicle | 9.91 | +2.3% | +13.9% |