- The general index MSCI world recorded a 1.54% increase on Friday as US employment data eased fears of a possible recession, despite leading to another rate hike or keeping them higher for longer. In the US banking sector, equities rebounded tremendously after the doubts that surfaced in several entities throughout the week. Overall, the S&P 500 index rose 1.85%, the Nasdaq Composite 2.25% and the Dow Jones 1.65%.
- Equity markets in the Asia-Pacific region are trading positively. The leaders of South Korea and Japan have announced their intention to discuss cooperation on global affairs and security issues raised by North Korea at the start of their first formal summit in Seoul in 12 years. Today, the Hong Kong Hang Seng is up 1.3%, the Shanghai Composite is up 1.7% and the South Korean KOSPI is up 0.5%
- In Europe, futures are expecting a session of mild upside, while caution is advised in a scenario where potential interest rate hikes could again impact equity market valuations. Klaas Knot, president of the Dutch central bank, has confirmed that the ECB should continue to raise interest rates in the face of overly high core inflation. On the other hand, Russia is intensifying evacuations in the occupied territories. Finally, the Investor Confidence Index (Sentix) is released today, which measures investor confidence in economic activity in the Eurozone. For now, DAX futures are up 0.3% and IBEX 35 futures are up 0.2%.
- In the fixed income market, government bond yields saw significant increases on Friday, largely driven by US employment data. Following the 25 basis point hike by the Fed and ECB, investors are debating whether the economy’s resilience will translate into further rate hikes. In this sense, today the return of the German 10-year benchmark starts the session with a decline of 1 bps to 2.29%, similarly to the IRR of the Spanish benchmark with 1 bps to 3.36%. On the other hand, the profitability of Treasure Chests maturities fell 1 bps to 3.43%.
- The price of gold is up 0.26%, away from $2,000 an ounce (2020). Brent oil, for its part, is up 0.72% today to $75.80 a barrel, rebounding from most other declines during the week on Friday, which continued the downtrend that has started since April 12 amid concerns about the economy , and the political situation in the US, where politicians discuss how to avoid a default. On the other hand, US crude shipments to China have reached their highest level since May 2020.
- In the foreign exchange market, the euro/dollar cross remains around $1.10 per euro (+0.3%).
- The VIX volatility index of the S&P 500 fell as much as 17.19 points (-14.4%) on Friday.
Relevant news since the markets close
The parent company of HBO and CNN got disappointing results at group level. This is the third consecutive quarter in which Warner has disappointed against expectations, despite sales being in line with expectations. The new media company formed from the union of WarnerMedia and Discovery has posted an accusation of $1.81 billion as a result of mergerin addition to $95 million in restructuring costs. Warner, which will relaunch its Max streaming service on May 23, made $50 million from its TV business in the first quarter. online, while traditional cable networks continue to lose publicity and viewership. You have the confidence that you can achieve profitability stream a year earlier, and that is sustainable.
The American insurer has obtained a few revenue in the quarter of 46,500 million of dollars, of which 36,200 come from millions Express Scripts, your pharmacy benefits managerwho bought it in 2018. For example, it secured $1,300 million in benefits in the first quarter and has increased his EPS prognosis adjusted for the full year to a minimum of $24.7 from “at least $24.60.”
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