Connect with us

Stock Markets

Stocks stage small rebound as investors weigh cenbanks’ next move

Published

on

2/2

© Reuters. FILE PHOTO: People pass by an electronic screen showing Japan’s Nikkei share price index inside a conference hall in Tokyo, Japan June 14, 2022. REUTERS/Issei Kato

2/2

By Tommy Wilkes

LONDON (Reuters) – Stock markets chalked up modest gains on Monday after last week’s hefty losses as investors braced for a host of U.S. Federal Reserve speakers this week, where they could underline a commitment to fight inflation whatever rate pain required.

Trading was thinned by a U.S. holiday and investors predicted another choppy session.

The euro was little moved after French President Emmanuel Macron lost control of the National Assembly in legislative elections on Sunday, a major setback that could throw the country into political paralysis.

However, French government bond yields widened, a sign of some investor nervousness.

By 0920 GMT, the Euro STOXX rose 0.3%. Germany’s DAX gained 0.4% while French shares eked out a similar gain despite Macron’s electoral setbacks.

Holger Schmieding, an economist at Berenberg, said Macron’s party would now have to learn the art of compromise to push ahead with its policies.

“As most Republicans and other mainstream forces in France are less interested in strengthening European integration than Macron, his ability to shape and promote the European agenda will be even more limited than before,” he said.

Nasdaq futures climbed 0.68%, building on Friday’s gains while S&P 500 futures rallied 0.5%.

The S&P 500 fell by almost 6% last week to trade 24% below its January high. Analysts at BofA noted this was the 20th bear market in the past 140 years and the average peak to trough bear decline was 37.3%.

Investors will be hoping it does not match the average duration of 289 days, given it would not end until October 2022.

In Asia, shares on Monday fell. MSCI’s broadest index of Asia-Pacific shares outside Japan lost 0.2% and Tokyo’s Nikkei 0.7%.

Chinese blue chips increased 0.5%, aided by news President Joe Biden was considering removing some tariffs on China.

The focus on the path for interest rates and inflation is likely to dominate markets this week too. A series of central bank hikes last week, including a surprise move by the Swiss National Bank, will be followed by more tightening as policymakers try to tame soaring price growth.

Relief seems unlikely this week with UK inflation figures expected to show another alarmingly high reading that could push the Bank of England into hiking at a faster pace.

A whole chorus line of central bankers are also on the speaking calendar this week, led by a likely hawkish testimony from Federal Reserve Chair Jerome Powell’s to the U.S. House of Representatives on Wednesday and Thursday.

“Markets are still digesting the higher re-pricing of Fed rate expectations, and global risk assets may struggle to show any sustainable rebound for now. All this should keep the dollar mostly in demand in a week where markets will focus on Powell’s testimony,” ING analysts said in a note.

UNCONDITIONAL

The Fed last week vowed its commitment to containing inflation was “unconditional”, while Fed Governor Christopher Waller said on Saturday he would support another hike of 75 basis points in July.

“With rapidly slowing growth momentum and a Fed committed to restoring price stability, we believe a mild recession starting in Q4 is now more likely than not,” warned analysts at Nomura.

“Financial conditions are likely to tighten further, consumers are experiencing a significant negative sentiment shock, energy and food supply disruptions have worsened and the outlook for foreign growth has deteriorated.”

The hawkish outlook is keeping the dollar index higher and it last traded at 104.42. That was down 0.3% on the day but not far from last week’s two-decade high of 105.790.

The euro rose 0.2% to $1.0516, still uncomfortably close to last week’s trough at $1.0357.

The yen remained under broad pressure as the Bank of Japan stuck doggedly to its super-easy policies. The dollar was last down slightly at 134.64 yen, having reached its highest since 1998 against the Japanese currency last week.

After massive moves last week, government bond yields were generally calmer.

Bitcoin slipped 1% to $20,438, having bounced sharply over the weekend amid talk of a single large buyer.

Oil prices edged lower again after a sharp retreat late last week amid concerns a global recession would curb demand. [O/R]

Brent 0.7% to $112.29, while U.S. crude lost 0.5% to $109.03 per barrel.

Stock Markets

Easing chip shortages to help Volkswagen in H2 – CEO

Published

on


© Reuters. FILE PHOTO: Volkswagen logo is pictured at the 2022 New York International Auto Show, in Manhattan, New York City, U.S., April 13, 2022. REUTERS/Brendan McDermid/File Photo

BERLIN (Reuters) – Volkswagen (ETR:VOWG_p) sees a strong second half of 2022 and expects progress in catching up with rival Tesla (NASDAQ:TSLA) as easing chip shortages start to offset supply chain bottlenecks and rising costs, the carmaker’s CEO said on Tuesday.

“We are earning more than ever,” Chief Executive Herbert Diess said at a works meeting, adding Volkswagen is ramping up electric vehicle volumes in its biggest markets in Germany and China thanks to easing semiconductor shortages.

This should allow the carmaker to narrow the Volkswagen-Tesla gap this year and meet its goal of becoming market leader by 2025 if it seizes the moment while the U.S. electric car maker burns cash on large investments, the CEO said.

“Elon (Musk) has to ramp up two highly complex factories in Austin and Gruenheide at the same time – as well as expand production in Shanghai. That’s going to take strength out of him,” Diess said.

Continue Reading

Stock Markets

Reliance Chairman Mukesh Ambani steps down as director of telecom arm

Published

on


© Reuters. FILE PHOTO: Mukesh Ambani, Chairman and Managing Director of Reliance Industries, arrives to address the company’s annual general meeting in Mumbai, India July 5, 2018. REUTERS/Francis Mascarenhas

BENGALURU (Reuters) – Reliance Industries Chairman Mukesh Ambani has stepped down as director of Reliance Jio Infocomm Ltd, the conglomerate’s telecom arm said on Tuesday.

Reliance Jio said https://refini.tv/3Nrs773 it has appointed Mukesh’s son and non-executive director Akash Ambani as the chairman of its board. Akash has been involved with the telecom unit since its launch in late 2016, where he started as a director.

India’s telecoms sector had been upended after the entry of Jio, which triggered a price war that forced some rivals out of the market and turned profits into losses.

Jio, which started out offering mobile teleservices, has been aggressively investing in services like internet broadband and forging ties with handset makers to launch low-cost smartphones and providing 5G services.

Continue Reading

Stock Markets

UBS Downgrades Ebay, Farfetch to Neutral on Guidance Risks

Published

on


© Reuters. UBS Downgrades Ebay (EBAY), Farfetch (FTCH) to Neutral on Guidance Risks

By Senad Karaahmetovic

UBS analyst Kunal Madhukar downgraded shares of Farfetch (NYSE:FTCH) and eBay (NASDAQ:EBAY) to Neutral from Buy.

EBAY shares are cut alongside the price target (to $48.00 from $60.00 per share) despite low expectations. Still, the analyst expects 2022 GMV to fall by 17%, which is worse than the guidance of 16%-14% and the Street’s consensus of 15%.

“We think the buy side may already be lower than the Street. YTD, the stock has been one of the better performers within the eCommerce space, benefiting from both a ~2% dividend yield and aggressive share repurchases. However, when the market rebounds, we think EBAY shares could lag smaller cap peers (which are likely to grow much faster in a recovery) until investors have better visibility into organic growth at eBay. Consequently, we think the shares likely will remain range-bound until visibility improves,” Madhukar told clients in a note.

The price target on Farfetch shares goes to $10.00 from the prior $13.00 as Madhukar sees too optimistic assumptions for growth from the side of the company’s management.

“In addition to slower growth, we think upside is limited by lack of visibility into key drivers of value, including FPS volumes and economics, as well as on China. Granted, the YNAP deal could be a positive catalyst (link), but if the disclosure is limited (like with the recent deal with Neiman Marcus Group or NMG), it may be challenging for investors to understand if it creates shareholder value or not. Last, FTCH remains a profitless-tech company in an environment where investors are acutely focused on profits, and thus, there is limited valuation support,” the analyst added.

Similar to eBay, Madhukar sees shares remaining “range-bound until we have better visibility into growth and/or the path to profitability.”

Shares of eBay and Farfetch are down 2.4% and 2.2%, respectively, in pre-market Tuesday.

Continue Reading

News

Cryptocurrency23 hours ago

Dogecoin price could rally 20% in July with this bullish reversal pattern

Dogecoin price could rally 20% in July with this bullish reversal pattern Dogecoin (DOGE) looks ready to extend its rebound...

Stock Markets23 hours ago

Easing chip shortages to help Volkswagen in H2 – CEO

© Reuters. FILE PHOTO: Volkswagen logo is pictured at the 2022 New York International Auto Show, in Manhattan, New York...

Economy23 hours ago

Futures rise as easing China COVID curbs lift travel, leisure stocks

© Reuters. A trader works on the floor of the New York Stock Exchange (NYSE) in New York City, U.S.,...

Economy23 hours ago

Euro below $1.06 as Lagarde keeps July policy options open

© Reuters. A shopper pays with a ten Euro bank note at a local market in Nice, France, June 7,...

Economy23 hours ago

China’s economy recovering but foundation not solid, premier says

© Reuters. FILE PHOTO: Chinese Premier Li Keqiang is seen on a screen as he attends a news conference via...

Cryptocurrency23 hours ago

3 charts showing this Bitcoin price drop is unlike summer 2021

3 charts showing this Bitcoin price drop is unlike summer 2021 Bitcoin (BTC) bear markets come in many shapes and...

Stock Markets23 hours ago

Reliance Chairman Mukesh Ambani steps down as director of telecom arm

© Reuters. FILE PHOTO: Mukesh Ambani, Chairman and Managing Director of Reliance Industries, arrives to address the company’s annual general...

Stock Markets23 hours ago

UBS Downgrades Ebay, Farfetch to Neutral on Guidance Risks

© Reuters. UBS Downgrades Ebay (EBAY), Farfetch (FTCH) to Neutral on Guidance Risks By Senad Karaahmetovic UBS analyst Kunal Madhukar...

Stock Markets23 hours ago

Bank of America Clients are Selling This Rally

© Reuters. Bank of America Clients are Selling This Rally By Senad Karaahmetovic Bank of America strategist Jill Carey Hall...

Stock Markets23 hours ago

Michelin to hand over Russian operations to local management

© Reuters. FILE PHOTO: The logo of French tyre maker Michelin is seen on tyre of a Formula E racing...

World23 hours ago

U.S. Capitol riot panel promises new evidence at surprise Tuesday hearing

2/2 © Reuters. FILE PHOTO: A video of former U.S President Donald Trump speaking is shown on a screen during...

Economy23 hours ago

Stocks, oil higher as China relaxes quarantine rules

2/2 © Reuters. FILE PHOTO: A man wearing a protective mask, amid the coronavirus disease (COVID-19) outbreak, walks past an...

Cryptocurrency23 hours ago

FTM Begins to Retest Previous Highs As Correction May Be Over

FTM Begins to Retest Previous Highs As Correction May Be Over Fantom (FTM) seems to be retesting previous highs. FTM...

Stock Markets23 hours ago

White House says companies investing $700 million to boost EV charger production

2/2 © Reuters. FILE PHOTO: A electric vehicle charger is seen as a vehicle charges in Manhattan, New York, U.S.,...

Cryptocurrency23 hours ago

SEC Chief Gary Gensler Labels Bitcoin a Commodity, but Other Cryptos Securities

The U.S. regulator has determined: bitcoin is a commodity. Other cryptocurrencies can be securities SEC Chair Gary Gensler reiterated that...

Stock Markets23 hours ago

Explainer-Why the survival of Scandinavian airline SAS hinges on Denmark

© Reuters. FILE PHOTO: A Scandinavian Airlines (SAS) plane is refuelled at Oslo Gardermoen airport, Norway, November 7, 2019. REUTERS/Lefteris...

Forex24 hours ago

Lira Weakens as Corporates Keep Buying Dollars Despite New Rule

© Bloomberg. An electronic board displays exchange rates information at a currency exchange bureau in Istanbul, Turkey, on Friday, June...

Stock Markets24 hours ago

Russia fines foreign firms for alleged data storage violations

© Reuters. FILE PHOTO: Attendees walk past a Twitch logo painted on stairs during opening day of E3, the annual...

Stock Markets24 hours ago

Siemens to invest in Volkswagen’s N.American charging network

© Reuters. A electric vehicle charger is seen as a vehicle charges in Manhattan, New York, U.S., December 7, 2021....

Commodities24 hours ago

Why Russian oil and gas price cap is easier said than done

© Reuters. FILE PHOTO: Model of petrol pump is seen in front of EU and Russian flag colors in this...

Stock Markets24 hours ago

FTX-Robinhood Rumors: Piper Sandler Sees ‘Win-win’ Situation, Others Less Optimistic

© Reuters FTX-Robinhood Rumors: Piper Sandler Sees a ‘Win-win’ Situation, Others Less Optimistic By Senad Karaahmetovic   Robinhood (NASDAQ:HOOD) shares...

Stock Markets24 hours ago

Lufthansa CEO apologises for summer travel chaos

© Reuters. FILE PHOTO: CEO of German air carrier Lufthansa Carsten Spohr delivers a speech at the ILA Berlin Air...

Commodities24 hours ago

G7 agrees to explore cap on Russian oil price – communique

2/2 © Reuters. FILE PHOTO: Yang Mei Hu oil products tanker owned by COSCO Shipping gets moored at the crude...

Cryptocurrency24 hours ago

Uzbekistan warms up to Bitcoin mining, but there’s a catch

Uzbekistan releases requirements for miners Uzbekistan’s National Advanced Projects Agency (NAPP) has required miners to register and use solar power...

Cryptocurrency24 hours ago

Ethereum’s Price Action Suggests Better Upside Potential

Ethereum’s Price Action Suggests Better Upside Potential At the moment, ETH’s price is closer to a bottom than a new...

Stock Markets24 hours ago

From Peru to Uganda, activists call on Deutsche Bank to drop fossil finance

4/4 © Reuters. Ankuash Mitiap Kapuchak and Shapiom Noningo Sesen, indigenous leaders from Peru and Ricardo Perez of the environmental...

Politics1 day ago

Factbox-Four key races in Illinois, Colorado midterm primaries

© Reuters. FILE PHOTO: An American flag flies outside of the U.S. Capitol dome in Washington, U.S., January 15, 2020....

World1 day ago

Rescuers dig for survivors after Russian missiles demolish Ukrainian shopping mall

6/6 © Reuters. Rescuers work at a site of a shopping mall hit by a Russian missile strike, as Russia’s...

Stock Markets1 day ago

Renault teams up with Atos on data gathering

© Reuters. FILE PHOTO: The Renault logo on the Renault Scenic Vision concept-car is seen at its exhibition space, at...

Cryptocurrency1 day ago

Cardano Has Highest Development Activities in 30 Days: Report

Cardano Has Highest Development Activities in 30 Days: Report Sanbase reports a list of the top 10 coins with the...

Trending