Stocks rose Monday amid a rally in Hong Kong spurred by China’s move to ease a dispute with the U.S. over audits. Treasuries fell on the prospect of sharp Federal Reserve interest-rate hikes to fight inflation. Chinese tech shares in Hong Kong rose 3% after Beijing sought to modify a rule that restricts offshore-listed firms from sharing sensitive financial data with foreign regulators. That may allow the U.S. to gain full access to audits, reducing the risk of Chinese firms losing their Wall Street listings. S&P 500, Nasdaq 100 and European futures were steady, while the dollar was firm. Traders weighed the prospect of stiffer sanctions on Russia over the war in Ukraine. Some European governments are pushing for new penalties due to reports that Russian troops executed unarmed civilians in Ukrainian towns.
Oil paused a retreat sparked by the U.S. announcement of an unprecedented release of strategic reserves to fight elevated energy costs. The Treasury yield curve is flashing more warnings that economic growth will slow as the Fed raises rates to tame stoked in part by commodities. The two-year U.S. yield has exceeded the 30-year for the first time since 2007, joining inversions on other parts of the curve. The Fed minutes later this week will shape views on the odds of a half percentage-point rate increase in May and provide key details on how the central bank will shrink its balance sheet. A strong jobs report Friday bolstered the case for the Fed to push up borrowing costs. The U.S. added 431,000 jobs in March while the unemployment rate fell to 3.6%, near its pre-pandemic low. In China, where markets are closed for a holiday, most of Shanghai’s 25 million residents are under some form of Covid lockdown. State media also reported a new subtype of the omicron variant.
Key events to watch this week:
- Reserve Bank of Australia rate decision, Tuesday
- Fed Governor Lael Brainard speaks, Tuesday
- Federal Reserve minutes, Wednesday
- China Caixin composite and services PMI, Wednesday
- EIA crude oil inventory report, Wednesday
- Philadelphia Fed President Patrick Harker speaks, Wednesday
- St. Louis Fed’s James Bullard, Atlanta Fed’s Raphael Bostic, Chicago Fed’s Charles Evans speak at separate events, Thursday
- Reserve Bank of India rate decision, Friday
Nikkei +0,01% HangSeng +1,67% CSI +1,27% Shanghai +0,94% Shenzen +0,47%
Eur$ 1;1048 CNH 6,3698 CNY 6,3629 122,66 GBP 1,3123 CHF 0,9263 RUB 85,5480 TRY 14,6879 WTI$ 99,72 GOLD 1,919,85 BTC 46,230 -3% ETH 3500 +0,03%
S&P +0,19% Nasdaq +0,17% EuroStoxx +0,44% FTSE +0,43% Dax +0,59% SMI +0,68%
Macro :
- U.S. Recession Seen Most Likely to Start Next Year: MLIV Survey
- Morgan Stanley’s Wilson Says ‘Bear Market Rally’ in Stocks Over
- Coatue Ends Quarter Down 10% After Side-Pocketing Investor Cash
- Tiger Global’s Hedge Fund Sinks 34% This Year as Key Stocks Fall
- U.S. Navy Sends $4 Billion Wish List to Congress
- A Hundred Firms Pull $45 Billion of Deals Since War in Ukraine
Keep an eye on :
- AED BB Aedifica Invests EU126M in Two Care Home Portfolios
- AGS BB : Ageas Sees RPN(I) Effect Boosting 1Q Net by EU61.6m
- AIR FP : U.S. Team Has Arrived in China to Help Fatal Jet Crash Probe
- BABA US : Watch Didi, Alibaba After China’s Plan To Give Access to Audits
- BARC LN : Barclays’s $600 Million Blunder Follows Years of U.S. Run-Ins
- BBVA SM : BBVA Agrees to Pay Merlin EU1.99b to Rebuy 662 of Its Branches
- BAYN GY : Bayer Thrombosis Drug Asundexian Shows Positive Results in Study
- CSGN SW : Credit Suisse: Can’t Estimate Virtuoso, High Income Fund Losses
- DHER GY : Delivery Hero Updates FY Outlook After 2-Month GMV, TSR Growth
- DIE BB : Belgian March Car Registrations Sink 18%; D’Ieteren Has 21.2%
- GAZP RM : U.K. May Nationalize Gazprom Local Retail Arm Within Days: Sky
- GPH LN : Global Ports Holding Says It’s Not Violating Sanctions on Russia
- HMB SS : Shein’s $100 Billion Valuation Would Top H&M and Zara Combined
- IBE SM : Iberdrola Gets U.K. Green Light for England-Scotland Power Cable
- ITX SM : Fashion Startup Shein Said to Raise Funds at $100 Billion Value
- ITX SM : Shein’s $100 Billion Valuation Would Top H&M and Zara Combined
- KPNA NA : KPN Hits 5-Year High as Regulator Likes Plan to Cut Fiber Price
- LUN DC : Lundbeck Drug Linked to Improvement for Some Migraine Sufferers
- DRLCO DC : Maersk Drilling Gets $107.5 Million Drillship Order From Shell
- MRL SM : BBVA Agrees to Pay Merlin EU1.99b to Rebuy 662 of Its Branches
- AERO SW : Montana Aerospace FY Adjusted Ebitda EU56.1M Vs. EU45M Y/y
- NESTE FH : Neste Closes EU88m Grant for Clean Hydrogen Project in Finland
- NKLA US : Nikola Slips After $1.2b Mixed Securities Shelf Registration
- NDX1 GY : Nordex Detected a Cyber Security Incident March 31
- NOVN SW : Novartis Sees at Least $1B SG&A Savings by ‘24 Amid Overhaul (1)
- PSH NA : Pershing Square Holdings March Net Performance +10.6%
- RNO FP : Renault’s Finance Company Mulls Options for Its Russian Venture
- ROG SW : Roche Covid-19 Therapy Gets FDA Priority Review
- SFOR LN : Permian Investment Raised S4 Capital Stake to 4.1%, FT Says
- SAN FP : FDA Accepts Sanofi Dupixent for Priority Review for 12 Year Olds
- SHEL LN : Shell Can’t Use Gazprom’s Ruble-Payment Method Due to Sanctions
- STLA US : FCA 1Q U.S. Total Sales Decline 14%; Retail Sales Down 13%
- TIT IM : KKR May Step Back From Bid for All Telecom Italia: Messaggero
- TIT IM : KKR Plans to Abandon Telecom Italia Deal Without Due Diligence
- TIT IM : Telecom Italia, CDP to Start Talks on Integrating Networks
- TEF SM : Telefonica Tech to Grow Through M&A, CEO Tells Expansion
- TSLA US : Tesla Notches Record, Delivering 310,048 Cars in First Quarter
- URW NA : Unibail-Rodamco-Westfield to Sell Gera Arcaden for EU116M