SHARE PRICES AND MARKET ANALYSIS

A snapshot of bike and ATV industry share performance across key manufacturers and major global markets at the trading week closure on Friday 3 June 2022. BDN financial editor Roger Willis reports.

USA — QUESTIONS UNANSWERED

Wild swings in market sentiment returned as the debate raged about inflation and the US Federal Reserve’s likely degree of aggressive monetary tightening in response. After a previous upbeat week, indices headed in the opposite direction, without any serious reality check. Trading was limited to four sessions, with Monday a public holiday to honour America’s war dead. Wall Street’s blue-chip S&P 500 and the Dow Jones Industrial Average finished respectively 1.2% and 0.9% down. S&P’s MidCap 400 lost 0.7%.

HOGOMETER

Harley-Davidson’s path through market mayhem was more volatile than most. When traders returned to the fray on Tuesday, its shares sank by 3.2%. A 3.4% loss followed on Wednesday. Then Thursday’s classic dip-buying lunge suddenly pushed the price 6.8% up. That didn’t last, as another 3.4% fall concluded Friday’s business.

EUROPE — ON THE BACK FOOT

May’s preliminary exit data for mounting inflation in both Germany — Europe’s largest economy — and the eurozone as a whole ramped up pressure on the European Central Bank to raise interest rates sooner rather than later. Vociferous criticism from analysts, attacking ECB inaction, grew.

Frankfurt’s Xetra Dax benchmark index flatlined. But Teutonic automotives with biker connections mysteriously avoided negativity. However, the Borsa Italian’s MIB in Milan retreated by 1.9% and Piaggio was a loser too.

JAPAN — BRIGHTER MOOD

Japanese stocks led spreading economic optimism across Asia-Pacific countries, as an easing of Covid infection rates was reported among many of them. Tokyo’s Nikkei 225 index soared by 3.7% and all four indigenous motorcycling majors beat the average. Kawasaki Heavy Industries stood out, with its bike operations forecast to race ahead of Q1 estimates.

INDIA — SWINGS AND ROUNDABOUTS

Although currently afflicted by a range of negative factors putting stress on India’s economy, its services sector — which includes a number of globally-rated infotech giants — posted an 11-year growth spike midweek. Mumbai’s BSE Sensex 30 stock index approved mightily, adding 1.6%.

However, automotive shares were mixed. Indigenous motorcycle market leaders Hero and Bajaj incurred notable losses. Royal Enfield parent Eicher was in the red ink too. Mahindra, which majors on being the world’s biggest agricultural tractor manufacturer, dwarfing its biker side-lines such as Peugeot scooters and BSA, blithely bucked this trend.

CHINA — CHANGING ITS TUNE

Beijing government sources claimed the impact of recent Covid lockdowns had been less severe than earlier predictions and the Chinese economy performed better than expected in May.

Whether this was true or not, investors chose to believe what they were told and reacted accordingly. Shanghai’s SSE Composite all-share index and the blue-chip CSI 300 respectively rose by 2.1% and 2.2%. Only one of the country’s eleven listed motorcycle producers failed to benefit. Honda JV affiliate Sundiro was that token dunce.