Stocks slid Thursday on fears of an economic downturn, though cooling demand for havens like bonds hinted at slightly steadier sentiment. An Asia-Pacific equity index shed about 1.5%, led by losses in Japan and in Chinese technology firms. US and European futures wavered but came off session lows as traders evaluated whether a 4% plunge in the S&P 500 index -- the biggest daily drop in almost two years -- might give way to dip-buying.
Earnings reports Tuesday from US consumer titans stoked worries that high inflation is weighing on margins and consumer spending. Target Corp. sank the most since Black Monday in 1987, a day after Walmart Inc. also spiraled lower. Demand risks from China’s Covid lockdowns are also impacting markets, keeping oil near $110 a barrel after a fall this week. The challenge from inflation for bellwether retailers weakens the argument that corporate earnings can help stem this year’s rout in stocks. Instead, global equities are sliding toward a bear market as recession fears mount. Signs of stress are building in credit markets. Yield premiums on US investment-grade corporate dollar bonds jumped five basis points Wednesday, in one of their biggest moves this year, a Bloomberg indexshows. They are now at their highest since mid-2020. Tencent Holdings Ltd. dived after warning it will take time for Beijing to act on promises to prop up the Chinese tech sector. Cisco Systems Inc. slid in extended US trading on a disappointing revenue outlook. Janet Yellen confirmed it’s unlikely the US will allow Russia to continue making bond payments on its foreign-currency debt, as investors have had time to adjust to Moscow’s exclusion from the global financial system for the war in Ukraine. US After Hours CSCO -12.1% drops on earnings/guidance, taking down JNPR -6.2%, CIEN -6.2%, ANET -5.4%, AVGO -3.5%; SNPS +3.5% higher on earning
Nikkei -1.90% Hang Seng -2.25% CSI -0.25% Shanghai -0.08% Shenzen +0.0%
Eur$ 1.0498 CNH 6.7756 CNY 6.7594 JPY 128.86 GBP 1.2386 CHF 0.9859 RUB 63.9547 TRY 15.9678 WTI$ 110.51 +0.84% Gold 1,815.45 -0.06% BTC 29,081 -0.44% ETH 1947.48 -0.85%
S&P -0.05% Nasdaq -0.26% EuroStoxx -0.79% FTSE -0.62% Dax -0.86% SMI -0.77%
Macro :
- JPMorgan’s Kolanovic Says Stocks ‘Can Climb Out of This Hole’
Keep an eye on :
- AALB NA : Aalberts Organic Revenue Growth 9% in Jan.-April
- ACKB BB : Valneva: EMA Accepts Covid Vaccine Marketing Application Filing
- ALM SM : Evotec, Almirall Form Alliance in Medical Dermatology
- ALV GY : Allianz Sues Enel Wind Farm in Latest Fallout from Texas Freeze
- ANORA FH : Anora Group Oyj 1Q EPS Beats Estimates
- BBVA SM : BBVA Holds 86% of Turkish Lender Garanti After Offer
- BNP FP BNP Seen as Main Suitor for BBVA’s Depositary Unit: Cinco Dias
- BDT GY : Bertrandt 1H Ebit EU20.8M Vs. EU11.1M Y/y
- BWLPG NO : BW LPG 1Q Ebitda Meets Estimates
- LCAA US : Carousell, L Catterton SPAC Merger Talks Said to Have Ended
- CFEB BB : CFE 1Q Revenue EU889.5M Vs. EU742.1M Y/y
- CLN SW : Clariant 4Q Adjusted Ebitda CHF230M Vs. CHF179M Y/y
- CSCO US : *CISCO SEES 4Q REV -1% TO -5.5% Y/Y; EST. +5.7% --> -12% in after Hours
- DUFN SW : Dufry 1Q Revenue Beats Estimates
- EDF FP : EDF Cuts 2022 French Nuclear Output Estimate; 2023 Unchanged
- ENEL IM : Allianz Sues Enel Wind Farm in Latest Fallout from Texas Freeze
- ENGI FP : Engie Brasil Signs Partnership With Copel to Join Auction
- RF FP : Eurazeo SE Assets Under Management EU32.2B Vs. EU30.9B Q/Q
- EUCAR FP : Volkswagen to Get Unconditional EU Nod for Europcar Deal: Rtrs
- G IM : Generali 1Q Operating Profit Beats Estimates
- GIMB BB : Gimv FY Net Income EU174.3M Vs. EU205.7M Y/y
- HSV LN : Brookfield Agrees to Buy Homeserve for 1,200P Per Share in Cash
- IBAB BB : IBA Sees Modest Impact From Global Effects of Ukraine War
- BAER SW : Julius Baer Common Equity Tier 1 Ratio 15.7% Vs. 16.4% At Yr End
- BAER SW : Aalberts Organic Revenue Growth 9% in Jan.-April (1)
- PRS SM : *TELEFONICA READIES SALE OF 9% STAKE IN PRISA: EL CONFIDENCIAL
- SIM DC : Simcorp 1Q Ebit Misses Estimates
- SWON SW : SoftwareONE 1Q Gross Profit CHF212.9M
- GLE FP : SocGen's Russian Exit Shows the Way for ING, French Peers: React
- SON PL : Sonae 1Q Net Income EU42M Vs. EU1M Y/y
- SUN SW :Sulzer to Wind Down Polish Units After Sanctions Removal Denied
- UAA US : Under Armour CEO to Exit After 2 Years With Stock in Free Fall
- VK FP : Vallourec 1Q Ebitda Misses Estimates
- VK FP : Vallourec to Cut 2,950 Jobs in Streamlining Effort
- VLA FP : Valneva: EMA Accepts Covid Vaccine Marketing Application Filing
- VIE FP : *CMA: VEOLIA-SUEZ PROVISIONAL REVIEW FINDS COMPETITION CONCERNS
- VOW GY : Volkswagen to Get Unconditional EU Nod for Europcar Deal: Rtrs
- VOW GY : Mahindra, Volkswagen to Partner for Electric Components