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 15 September 2023. BDN financial editor Roger Willis reports.

USA — TECH TICKS AGAINST THE GRAIN

Wall Street sentiment began to retreat again, dragged down by technology stocks after Taiwan’s TSMC — the world’s largest microchip manufacturer — delayed shipments of high-end chipmaking equipment from US suppliers.

That pushed most New York market indices into negative territory, with only the Dow Jones Industrial Average hanging onto a gestural 0.1% weekly gain. S&P 500 blue-chips finished 0.2% lower and S&P’s MidCap 400 fell by 0.3%. Inevitably, the tech-heavy NASDAQ Composite took most punishment, closing 0.8% down.

Biker confidence continued to weaken as the end of Q3 approaches without clear signs of domestic market sales recovery. Harley-Davidson shares remained stuck near the bottom of a 30-buck range and its LiveWire electric spin-off sank by a greater degree. Polaris was another weakling. However, Energica parent Ideanomics drew succour from a recent stock listing consolidation.

EUROPE — TWO CHEERS

In general terms, European investors celebrated signs that ECB eurozone interest rates may have finally peaked, after central bank supremo Christine Lagarde hiked rates by a quarter of a percentage point to an all-time high of 4%. That sufficed as a major contributor to stock indices rebounding mightily. Frankfurt’s Dax Xetra rose by 1%, the Wiener Börse in Austria added 1.2% and the FTSE MIB in Milan stacked on a plumptious 2.3% by close of play.

Another beneficial influence affecting share prices across the crucial automotive sector in all these markets was an EU move to rein in potentially unfair competition from Chinese electric vehicle imports and, most pertinently, the near-monopoly of EV batteries sourced from China. This prospect certainly helped to boost the value of related players on two and four wheels — but may subsequently backfire if Chinese retaliation emerges.

JAPAN — A MORE COMPETITIVE FUTURE BECKONS

New Japanese economics minister Yoshitaka Shindo went public on indicators that an escape from persistent deflationary output price pressures, which have intermittently stunted the country’s growth for years, is finally on the cards.

Tokyo’s Nikkei 225 stock index surged in response, with a muscular 2.9% advance. Three of Japan’s four motorcycling brands jumped on the associated bandwagon, flaunting significant share-price hikes. Inexplicably, Kawasaki failed to bring a bottle to the party.

INDIA — SUMMIT SPECIAL

Mercurial Indian prime minister Narendra Modi orchestrated the latest G20 summit of leading nations, naturally hailed as a triumph by his ruling militant Hindu nationalist Bharatiya Janata Party and notable for a complete absence of any mention of India’s two-faced stance on the war in Ukraine.

Suspiciously convenient third-quarter data also revealed that Indian GDP had abruptly rebounded to grow by an annualised rate of 7.8%, making it the world’s liveliest big economy. So shrugging off several weeks of market decline, Mumbai’s S&P BSE Sensex 30 stock index suddenly recovered by 1.9% and all five indigenous major motorcycle manufacturers enjoyed rising share prices.

Of course, an early build-up to the Xmas-style Diwali Festival of Lights in November — India’s annual big-ticket consumer frenzy — may have been involved too. But why spoil a good story?

CHINA — A RARE BREATH OF FRESH AIR

Some unusually upbeat Chinese economic data served to ameliorate doom and despondency pervading prospects for the world’s second-largest economy, and the investment mood therein. Official statistics showed retail sales and industrial production in China had risen by considerably more than analyst expectations during August.

Rather than falling further, Shanghai’s all-share SSE Composite index flatlined — now seen as a positive in such straitened times. And the blue-chip CSI 300 “only” declined by 0.9%. News wasn’t particularly hot for bikers stocks, though. Seven of China’s eleven listed motorcycle producers lost value.