The evening market overview, compiled by Dow Jones Newswires:
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+++++ HOLIDAY NOTICE +++++
MONDAY: Stock markets in Australia were closed for the Australian New Zealand Army Corps Day holiday.
+++++ STOCK MARKETS (6:20 p.m.) +++++
INDEX reading +-% +-% YTD
EuroStoxx50 3,757.59 -2.15% -12.58%
Stoxx50 3,656.77 -1.69% -4.23%
DAX 13,924.17 -1.54% -12.34%
FTSE 7,380.54 -1.88% +1.86%
CAC 6,449.38 -2.01% -9.84%
DJIA 33,512.57 -0.88% -7.78%
S&P 500 4,224.19 -1.11% -11.37%
Nasdaq Comp. 12,803.43 -0.28% -18.16%
Nasdaq-100 13,323.58 -0.25% -18.36%
Nikkei-225 26,590.78 -1.90% -7.64%
EUREX Stand + ticks
Bund future 154.98 +172
+++++ COMMODITY MARKETS +++++
ROHOEL last VT-Settl. +/- % +/- USD % YTD
WTI/Nymex 96.76 102.07 -5.2% -5.31 +31.9%
Brent/ICE 100.09 106.65 -6.2% -6.56 +30.7%
METALS last day before +/- % +/- USD % YTD
Gold (Spot) 1,895.92 1,930.70 -1.8% -34.78 +3.6%
Silver (Spot) 23.63 24.25 -2.5% -0.62 +1.4%
Platinum (Spot) 919.93 933.65 -1.5% -13.72 -5.2%
Copper Future 4.43 4.59 -3.6% -0.16 -0.6%
Oil has fallen significantly again as oil market players fear a drop in Chinese demand as a result of the lockdowns. In addition, the firmer dollar is also likely to have a negative impact here. Gold, meanwhile, is not benefiting from the search for “safe havens”. On the contrary, the precious metal, which itself does not yield any interest, is losing its attractiveness in view of rising market interest rates. In addition, the stronger dollar makes gold more expensive for non-dollar buyers.
+++++ FINANCIAL MARKET USA +++++
Weak – Nothing has changed about the reasons for investors’ risk aversion, which had already pushed prices down on Friday: the upcoming interest rate hikes by the US Federal Reserve in large steps, the ongoing war in Ukraine and the lockdowns in China the resulting disruptions in the supply chain. The fact that the Chinese central bank has lowered the minimum reserve requirement for foreign currency loans does not help the US stock markets. At the beginning of the week, only the Chicago Fed National Activity Index was published as economic data. It declined in March compared to February. Among the individual values, Twitter trended 3.8 percent higher against the negative trend. After the short message service recently tried to prevent a takeover by Tesla founder and billionaire Elon Musk with a “poison pill”, there seems to have been a change of heart. Twitter is now ready to respond to Musk’s offer, reports Reuters, citing informed people. Coca-Cola shows little changed after the first quarter figures. The beverage manufacturer performed better than expected and gave a positive outlook. Activision Blizzard (-0.9%), on the other hand, missed expectations with sales and earnings in the first quarter.
Economic concerns are driving investors to the bond market. There, rising prices are massively depressing yields.
+++++ FINANCIAL MARKETS EUROPE +++++
Very weak – Expectations of a tighter monetary policy by the central banks remained the most important negative factor for the markets on Monday. At the same time, concerns about growth are increasing due to high inflation. There is no relief in sight, also because the supply chain problems due to the lockdown in Shanghai are likely to worsen for the time being. A better ifo index would not support. Emmanuel Macron’s election victory at best prevented larger taxes, as it was said. The Stoxx index of commodity-related Basic Resources fell by around 6 percent due to economic concerns, and the index of interest-sensitive technology stocks by 2.3 percent. The index of utility shares was able to escape the downward slide with a plus of 0.7 percent. The mining sector was also weighed down by Anglo American (-6.8%). A Chilean environmental agency has recommended that the company’s permit application for the Los Bronces mining project be rejected. According to the figures, Philips collapsed by 11.2 percent. Above all, the ever-increasing costs for the ventilator recall caused a negative mood. The list of potential buyers of Ubisoft (+9.5%) keeps growing. According to Bloomberg, private equity is now also interested. Roche’s first quarter sales were slightly above expectations. In addition, the pharmaceutical company confirmed the forecast for the year. In the negative environment, the share fell by 1.3 percent.
+++++ CURRENCIES +++++
FOREX last +/- % Mon 8:11am Fri 5:30pm % YTD
EUR/USD 1.0715 -0.9% 1.0768 1.0786 -5.8%
EUR/JPY 136.80 -1.5% 138.35 138.83 +4.5%
EUR/CHF 1.0267 -0.7% 1.0320 1.0333 -1.0%
EUR/GBP 0.8421 +0.0% 0.8418 0.8392 +0.2%
USD/JPY 127.68 -0.7% 128.47 128.72 +10.9%
GBP/USD 1.2724 -0.9% 1.2792 1.2849 -6.0%
USD/CNH (Offshore) 6.5774 +0.8% 6.5881 6.5279 +3.5%
Bitcoin
BTC/USD 39,401.01 -0.6% 38,993.01 39,797.12 -14.8%
Expectations of rising US interest rates continue to give the dollar a boost. In addition, the US currency is also sought after as a safe haven in times of crisis, as market participants say. The dollar index rose 0.6 percent.
+++++ EAST ASIA FINANCIAL MARKETS +++++
Stock markets in East Asia fell sharply on Monday. The indices thus followed the very weak trend on Wall Street at the end of the previous week, where the expectation of a series of further US interest rate hikes in large individual steps had had a negative impact. Market observers also referred to the ongoing war in Ukraine and the lockdowns in China. In Shanghai, commodity stocks like Ganfeng Lithium lost 9.1 percent and Zijin Mining lost 6.3 percent. China Merchants Bank fell 8.6 percent as the company’s former boss is being investigated for corruption. Jiangsu Hengrui Medicine slipped 10 percent. The company had disappointed with the net profit for 2021. In Tokyo, Nissan Motor was down 5.0 percent, weighed down by reports that partner Renault plans to sell part of its stake in the Japanese company. Shimizu fell by 7.5 percent after the presentation of quarterly figures. The construction company had lowered its net profit outlook. According to the business figures, the course of the airline ANA fell by more than 3 percent. Japan Airlines fell 1.7 percent in this wake. Astellas Pharma fell 1 percent after announcing an impairment.
+++++ COMPANY REPORTS SINCE 1.30 PM +++++
CELLNEX / DEUTSCHE TELEKOM
The head of the Spanish mobile infrastructure group Cellnex has confirmed his interest in Deutsche Funkturm, which belongs to Deutsche Telekom. “We would be more than happy if we could come to an agreement,” CEO Martnez Gimeno told Handelsblatt. Germany is a “super attractive” market.
COKE
earned more in the first quarter and exceeded expectations despite the negative impact of the withdrawal from Russia. The Atlanta-based company also confirmed its confident forecast for the year as a whole. Net income increased to $2.78 billion for the three months from $2.25 billion in the same period last year.
GRIFOLS
After the conclusion of the takeover bid for Biotest AG, currently holds 96.2 percent of the ordinary shares and 43.2 percent of the preference shares.
MONDELEZ
has agreed to buy Mexican confectionery manufacturer Ricolino from Grupo Bimbo for $1.3 billion. The acquisition will be financed with debt and cash, said Mondelez International Inc. Mexico is a “high priority market”.
NISSAN
Less than ten years after the resurrection, the Japanese carmaker Nissan is finally burying the Datsun brand. Production of the Datsun redi-GO at the Chennai plant in India will end, Nissan announced on Monday. Datsun production in Indonesia and Russia had already been stopped in 2020.
TWEET
Negotiations with Elon Musk could lead to a deal this Monday. Both sides worked through the night with the goal of reaching a deal to acquire the short message service for $54.20 a share, according to several people familiar with the matter.
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(END) Dow Jones Newswires
April 25, 2022 12:23 PM ET (16:23 GMT)