Stock Markets

European stocks make tentative gains amid global growth worries

Published

7 days ago

May 10, 2022

European stocks make tentative gains amid global growth worries

(Reuters) -European stocks rose from two-month lows on Tuesday, as bargain hunters returned to buy beaten-down shares following a bruising selloff on worries about a sharp slowdown in the global economic growth.

The pan-European STOXX 600 index rose 1.2%, with most sectors barring defensive healthcare stocks gaining.

Global stocks have been hammered in May, with high-growth stocks bearing the brunt on worries that major central banks will aggressively raise interest rates to curb inflation. On Wall Street, the tech-heavy Nasdaq dropped more than 4% on Monday.

The STOXX 600 has shed nearly 6% in May as China’s COVID lockdowns, the Ukraine war and worries about quicker interest rate hikes overshadowed an upbeat quarterly earnings season.

“We’re in this process where liquidity is being withdrawn and hope is confronted with reality, and that makes it a bit difficult,” said Sebastien Galy, senior macro strategist at Nordea Asset Management.

“Tactically, people might buy on the dip but it doesn’t mean that it’s attractive.”

The European Central Bank policymakers are also becoming more vocal about normalising monetary policy more quickly with inflation running at a record high in the euro zone.

Investors are awaiting data on German investor sentiment at 0900 GMT, expected to slip further in May.

Among individual stocks, Swedish Match AB jumped 23.7% after U.S. tobacco company Philip Morris International Inc (NYSE:PM) said it is in talks to buy the smaller rival.

French carmaker Renault (EPA:RENA) Group rose 1.1% as China’s Geely Automobile Holdings (OTC:GELYF) agreed to acquire around 34% of Renault Korea Motors for 264 billion won ($206.79 million).

Agriculture and pharmaceuticals company Bayer (OTC:BAYRY) inched up 0.1% after better-than-expected quarterly adjusted earnings on strong gains at its seeds and pesticides business.

Norwegian aerospace and defence company Kongsberg Gruppen slid 12% after reporting a fall in earnings before interest, tax, depreciation and amortization due to logistics challenges and component shortages.

($1 = 1,276.6800 won)

Stock Markets

Tencent Music Reports Q1 Miss, Revenues Down 15.1%

Published

8 mins ago

May 16, 2022

letizo News

Tencent Music Reports Q1 Miss, Revenues Down 15.1%

Tencent Music Entertainment Group (NYSE:TME) reported its Q1 results, with EPS of $0.06 coming in worse than the consensus estimate of $0.07. Total revenues declined 15.1% year-over-year to $1.05 billion, missing the consensus estimate of $1.23 billion, due to the headwinds in an evolving market landscape.

Revenues from online music services in Q1 were down 4.8% to $413 million. Revenues from music subscriptions grew 17.8% year-over-year to $314 million, with online music paying users reaching 80.2 million (up 31.7% year-over-year) and paying ratio increasing to 13.3% from 12.4% and 9.9% in Q4 and Q1/21, respectively.

Revenues from social entertainment services and others in Q1 were down 20.6% to $635 million.

Shares of Tencent Music were down 40% year-to-date into the results.

By Davit Kirakosyan

Stock Markets

Rivian Automotive CEO Purchases $1 Million Worth of Stock

Published

8 mins ago

May 16, 2022

letizo News

Rivian Automotive CEO Purchases $1 Million Worth of Stock

According to SEC Form 4, on May 16, Robert Scaringe, the CEO of Rivian Automotive Inc (NASDAQ:RIVN), purchased 41,000 shares of the company’s Class A common stock at an average price of $25.7772. The total amount of purchased shares is approximately $1.05 million.

Following the purchase, Scaringe owns 169,175 shares directly, 4,337,997 through a trust and 4,595 by LLC.

Shares of Rivian are down 76% year-to-date given the correction in high-multiple stocks and supply chain issues faced by the EV maker.

By Davit Kirakosyan

Stock Markets

Buffett-backed Nubank swings to profit on strong client base, loan volumes

Published

9 mins ago

May 16, 2022

letizo News

Buffett-backed Nubank swings to profit on strong client base, loan volumes

© Reuters. FILE PHOTO: A banner for Nubank, the Brazilian FinTech startup, hangs on the facade at the New York Stock Exchange (NYSE) to celebrate the company’s IPO in New York, U.S., December 9, 2021. REUTERS/Brendan McDermid

(Reuters) – Nubank swung to a profit for the first quarter and reported record-high revenue as Latin America’s most valuable fintech benefited from strong growth in its loan book and clients.

The Brazilian digital bank backed by Warren Buffett’s Berkshire Hathaway (NYSE:BRKa) said on Monday its revenue more than tripled to $877.2 million, driven by a record-high activity rate.

This is Nubank’s second set of results since listing in December.

According to analysts, the digital bank is well-positioned to weather an ongoing deterioration in credit quality in Brazil as its portfolio skews heavily toward low-risk, low-yielding credit card receivables.

The company added 5.7 million new clients and said its average revenue per active client grew to $6.7, up 63% from the previous quarter.

It posted an adjusted net income of $10 million for the quarter, compared with an adjusted loss of $11.9 million a year earlier.