Week from April 25th to 30th, 2022.
The last week of April was once again a challenging week for US stockholders. The key indexes that fluctuated between rebounds and relapses before sinking on Friday were down due to poor quarterly results from Amazon, one of the largest capitals across the Atlantic. The e-commerce giant actually recorded a loss of $ 3.8 billion in the first quarter, envisioning a rather dark future.
In this uncertain economic situation, the S & P 500 fell for the fourth straight week (-3.27%), ending the worst month since March 2020 (-8.80%, or loss from the beginning of the year-13.31%). .. The Dow Jones Industrial Average fell -2.47% (-9.25% in 4 months), while the Nasdaq plunged -3.93%.
, Decreased by -21.16% from 31st December 2021. After announcing the stratospheric results for the last two years, large growth stocks appear to be overvalued in an environment where interest rates continue to rise.
The European market closed in various orders and FTSE gained + 0.30% (+ 2.17% annually). In Germany, DAX eroded -0.31% (-11.25% annually). In France, CAC 40 lost -0.72% (-8.66% annually). The market was not supported when Emmanuel Macron was elected President of the Republic last Sunday. In Asia, the Shanghai Composite Index continued to be in the red in the fourth week (-1.29%, -16.28% annually) and was squeezed by an increase in the number of people positive for Covid-19. In Japan, the Nikkei Stock Average was green for two weeks and fell -0.95% (-6.75% annually). Meanwhile, emerging markets have resisted with a slight increase in MSCIEM of + 0.05 %% (-12.65% annually).
All S & P sectors in the negative territory, plunge at consumer discretion
Amazon.com (-13.90% weekly fluctuations) and Tesla (-13.36%) plunged consumer discretionary departments (-7.89%). This is the worst sector performance in the S & P 500 in the past week. Still, Elon Musk has revealed that he has no plans to sell any more Tesla shares to fund the takeover bid on Twitter, but Tesla’s fellow shareholders are afraid of the deal and he The new conglomerate “X Holdings” will distract him from the everyday life of the automaker. Financial stocks (-4.59%) also contributed to a wide range of index declines, following recent rather disappointing quarterly publications from banks. With the recovery in the number of users, the share of FB Meta has recovered significantly (+ 8.89% in the week, -40.40% in the year), but the revenue has decreased, but the communication service has loosened again (-4.09%). .. Like Google-Alphabet, it fell by -3.89% after missing a consensus on the latest numbers.
Unlike the previous week, the more defensive sector was unable to mitigate the decline in the market. Real estate recorded a sharp decline of -5.66%, while current consumer goods fell -2.08%. Even the energy sector did not hold up (-1.29%), and most producers fell, even though oil and gas prices were clearly on the rise. Therefore, WTI crude ended at $ 104.69 (+ 2.57%) a barrel and natural gas rose to $ 7.25 (+ 11.03%).
The US 10-year T-Note also saw a rise in yields of + 2.93% this week. Of the last eight weeks, seven have seen a significant increase against the backdrop of sharp inflation. In the euro area, the EU’s Statistics Bureau (Eurostat) reports that the annual inflation rate in April is estimated to be 7.5%.
Under these circumstances, it is not surprising to see the bond index continue to decline. This week, bonds with an “investment” rating recorded losses of -0.32% in Europe and -1.02% in the United States for the fourth straight week. High-yield securities did not improve with a correction of -1.48% in the Old World and -0.69% across the Atlantic Ocean.
Emerging debt denominated in local currencies fell again by -2.24%, but the dollar index reached a nearly 20-year high of over 103 points. To be on the safe side, the Fed may raise the Fed’s rate hike by 0.50% in May.
For precious metals, gold fell -1.79% (price) and the trend fell.
$ 1,896.93) and -5.76% silver per ounce.
In the crypto arena, Bitcoin is currently pointing at $ 38,000 (down -3% per week), followed by Ethereum (-3.3%), with two assets in relation to tech stocks. It is evolving.Notice that BlackRock has started an ETF
Ishares Blockchain and Tech
[IBLC]A week after Fidelity and its ETFs
Cryptographic industry and digital payments
[FMET].. This new investment vehicle is listed on NYSE Arca.
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