- The general index MSCI world yesterday it registered a 0.61% decline as interest rate hikes negatively impact the stock market. Doubts about regional entities have returned to the US banking sector and yesterday PacWest Bancorp (talking to potential investors and partners), Western Alliance Bancorp (exploring strategic options, including a possible sale) and First Horizon Corp (agreed) to Toronto-Dominion Bank to end the merger) led to another plunge in stocks. On the other hand, US government agencies are investigating Goldman Sachs’ failed attempt with Silicon Valley Bank to raise funds in March. In addition, the country’s official employment data is being released today. All in all, the indices have taken this news and messages from the central banks as negative and yesterday the S&P 500 index fell again by 0.72%, the Nasdaq Composite by 0.49% and the Dow Jones by 0.86%.
- In the Asia-Pacific region, equity markets are trading with mixed behaviour. China’s economic recovery showed further signs of imbalance, with the Caixin Purchasing Managers’ Industrial Index falling from 50 in March to 49.5 last month, pointing to a contraction in industrial production for the first time since January. Today, the Hong Kong Hang Seng is up 0.50% and the Shanghai Composite is down 0.60%.
- In Europe, futures are expecting a session of mild upside, while caution is advised in a scenario where potential rate hikes begin to diminish the appetite for risky assets. For now, DAX futures are up 0.35% and IBEX 35 futures are up 0.38%.
- In the fixed income market, government bond yields fell slightly yesterday After yesterday’s 25bp increase, investors are debating whether June’s 25bp increase will be the last or if there will be another in July. For example, today the return of the 10-year German benchmark starts the session up 5 bps to 2.24%, in the same way as the IRR of the Spanish benchmark increased 4 bps to 3.32%. On the other hand, the profitability of Treasure Chests with the same maturity increased by 1 bps to 3.39%.
- The price of gold is down 0.18% and is approaching $2,000 an ounce (2.0). Brent oil, for its part, is up 1.28% to $73.40 a barrel today after maintaining a downward trend since April 12 amid concerns about the economy and given the political situation in the US, where politicians are discussing how a default could can be prevented. On the other hand, US crude shipments to China have reached their highest level since May 2020 (when the ban imposed in late 2015 was lifted), after the country nearly tripled its purchases in March and became the largest buyer. Saudi Arabia for its part
- In the foreign exchange market, the euro/dollar cross remains around $1.10 per euro (+0.20%).
- The S&P 500 VIX volatility index rose to 20.1 points (+9.5%) yesterday.
Relevant news since the markets close
The Italian luxury fashion company has reported a few revenue in the first quarter of 726 millionagainst the estimate of 691 million, 5% above, thanks to beating 7% in Asia, 3% in EMEA and 2% in the Americas. This confirms the positive luxury trend, especially in European brands. Moncler has stated it is poised for further growth, particularly thanks to a resurgence in demand in China following the lifting of pandemic restrictions. The brand Stone Island, recently acquired, registered one turnover increase of 5% at constant exchange rates.
The American technology company has obtained a few of them revenue in the quarter of $94.840 million, -2.5% on an annual basis, although above the estimate of 92,600. Revenues for the 4 types of products (iPhone, Mac, iPad and wearables, home and accessories) were 73,930 million, -4.6% year-over-year. Services were up 5.5%, a historic record in China and with very good new buyer numbers.
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