Wall Street plunged before the session, triggered by markets in Asia and Europe. Nevertheless, futures are reducing losses as the open approaches. However, the US stock market, which recorded the worst session since October 2020 (Dow Jones) on Friday, should still be suffering on Monday in an environment that has little advantage for risky assets. In addition to the ongoing war in Ukraine, concerns have renewed that China’s growth will slow sharply as COVID-19 pandemic-related regulations increase domestically. Encourage optimism.
The last offensive remarks by Federal Reserve Chairman Jerome Powell seem to have particularly highlighted the spirit of investors. Leaders showed that a 0.5-point increase in key rates was “on the table” at the May meeting, suggesting that other increases of the same size could soon follow to curb inflation. .. The futures market is currently likely to see the federal funds rate rise 97.6% in May, a significant three-quarter point tightening of 85% in June and another 0.5 points in July. I have. According to CME Group’s FedWatch tool, it will be between 2.00% and 2.25% by the end of July.
This week, more than 180 S & P 500 companies will announce their first-quarter results until Friday, so the number of cross-Atlantic company publications will skyrocket. Among them, after Netflix’s disappointment, tech giants Microsoft, Alphabet, Meta, Apple and Amazon will be especially followed. So far, one-fifth of S & P 500 companies have released accounts for the first three months of the year, with 79% better than expected, so overall, according to FactSet’s latest data. Good results have been obtained. However, the size of the upside surprise is lower than the five-year average, 8.1% compared to 8.9%.
Commodity prices on Monday are heavily concerned about slowing activity in China. Therefore, the barrel of crude oil is strongly integrated with WTI, which abandons more than 4.5% in electronic trading on the Nymex. As part of that, gold fell 1.6% in London to $ 1,900 an ounce, falling in three consecutive sessions.
In foreign exchange, the euro fell another 0.45% against the dollar to the lowest level since April 2020 at $ 1.074. More generally, the dollar index rose 0.35% to 101.6 points against a basket of benchmark currencies. 2020. Still in the forex market, the People’s Bank of China has just announced relaxation of its forex reserve requirements with the aim of delaying the depreciation of the yuan. From May 15th, the percentage of foreign currency reserves that banks must hold in central banks will be reduced by 100 basis points from 9% to 8% to improve the ability of financial institutions to use foreign currency. Funds “.
Finally, VIX, the well-known “fear index” that measures market volatility, rose nearly 4.5 points to 29.5.
* Will Twitter win the bet? After the initial announcement of Elon Musk wanting to buy a social network and remove it from the list, the market could believe in the Tesla and SpaceX boss attacks. As the American press revealed, the wealthiest guys in the world are a few on Sunday after seducing many shareholders of the Blue Bird by revealing the financial details of his $ 43 billion offer. I met a Twitter executive. Twitter will generally be more open to discussing deals than before, a person familiar with the discussion told Bloomberg.
South African-born American billionaire, which owns a 9.1% stake in Twitter, announced a takeover plan on April 14, explaining that social networks need to be delisted to revive their growth. Expression. The proposed price is $ 54.2 per share, or a total of over $ 43 billion. According to The Wall Street Journal, the deal could be completed as early as this week. Some sources of “Reuters” even indicate that a deal may be closed today.
* ExxonMobil. Crude oil prices have fallen due to concerns about global demand due to prolonged health regulations in China and the outlook for rising interest rates in the United States.
* Boeing.Germany orders 60 CH-47F transport helicopters
Citing government sources, “Bild am Sonntag” reported Chinook for about 5 billion euros on Sunday.
* Apple. JPMorgan expects iPhone’s total annual and full-year revenue to be “slightly” below consensus. In addition, Foxconn, one of the group’s major subcontractors, has ceased operations at one of its production bases in China due to health constraints.
* Coca-Cola announced results that exceeded market expectations in the first quarter. During the period, the American soft drink giant recorded an EPS of 64 cents against a consensus of 58 cents for revenue of $ 10.5 billion, up 16%. Organic growth will be 18% on an adjusted basis against a market consensus of 9.5%. The operating margin reached 32.5%, compared with 30.2% in the previous year. The company predicts that the outage in Russia will have a 1-2% impact on revenue and operating profit in 2022 and a $ 0.04 impact on adjusted EPS. Adjusted organic growth is expected to increase by 7-8% annually and by 8-10% for non-GAAP EPS.
* KKR. The private equity group has raised $ 19 billion from investors for its largest new fund dedicated to the North American market in history.