Shipping shares went for the ride as stock markets moved sharply higher in New York on Thursday as signs emerged that inflation is easing faster than expected.
Cruise ship and container shipping, the sectors most exposed to consumer spending, led maritime shares in the rally that saw the Dow Jones Industrial Average gain more than 1,200 points, or 3.7%, during the day.
The big jump in broader US stock markets was widely attributed to new data that showed the Consumer Price Index increased a slower-than-expected 0.3% in October compared to the prior month.
As the US Federal Reserve has pushed interest rates higher to combat inflation, swings in stock and bond markets have been driven by any data that could make the central bank take more or less aggressive steps.
After the latest price index reading, data from CME Group shows bond traders believe there is an 80% likelihood of a 0.5 percentage point interest rate hike next month, rather than 0.75 percentage point increases of prior meetings, according to the Wall Street Journal.
The Dow Jones US Marine Transportation Index, a basket of New York-listed shipping shares, added 4.2% during the day to top more than 225 points.
Carnival Corp was the biggest beneficiary, with the Miami cruise giant’s New York-listed shares surging 14.4% to close the session at $9.78, the highest price for the struggling stock since late September.
Its biggest rivals were close behind it, with Royal Caribbean Group’s stock price rising 9.9% to $57.72 and Norwegian Cruise Line Holdings shares soaring 8.3% to $17.09.
Excluding microcap shares, the next biggest shipping gainers were in the container sector. Hawaii liner operator Matson, whose shares leapt 9% in afternoon trading to reach $71.53, while New York-listed shares of Israel’s Zim jumped 7.1% to $24.81.
The leading stock in dry bulk was Genco Shipping & Trading, whose shares surged 7.1% to $15.21 even though the New York-headquartered shipowner reported lower-than-expected quarterly earnings.
Despite the profit miss, the company’s results drew positive reactions from analysts as it hiked its dividend payment and strong spot market bookings in the ongoing fourth quarter.
