Sharing our Daily Market Overview with you, ensuring that you do not miss out on any important market changes!
International Market Update
- European stocks fell to a two-month low Monday as investors fled risk assets en masse on fears of inflation. The pan-European Stoxx 600 provisionally ended down 2.8%, its lowest level since March 8. Travel and tech stocks led the losses, down 5.8% and 4.8%, respectively. All sectors and major exchanges traded in negative territory. U.K. ad agency S4 Capital plunged 11% after it was forced to lower its profit forecast after an audit problem forced a delay in the release of its full-year results.
- U.S. stocks fell sharply Monday, pushing the S&P 500 below 4,000 for the first time in more than a year as the selloff continued. Rising interest rates continued to weigh on technology stocks such as Meta Platforms and Alphabet, which lost 3.7% and 2.8%, respectively. Amazon, Apple and Netflix fell more than 5%, 3% and 4%, respectively, while Tesla and Nvidia plunged more than 9% each. The combination of high interest rates and a potential recession as inflation rises also weighed on other areas of the market.
- Stocks in the Asia-Pacific region fell this morning following steep losses on Wall Street that sent the tech-heavy Nasdaq Composite down more than 4%. Hong Kong-listed shares of Chinese tech companies fell, with Tencent down 3.55%, Alibaba down 6% and NetEase down 3.54%. The Hang Seng Tech Index traded lower by 5.11%. Technology stocks in the Asia-Pacific region also slipped today, largely mirroring the losses suffered by the Nasdaq Composite overnight (- 4.29%).
In International News
Tesla halts production at Shanghai plant due to supply issues – sources.
Tesla halted production at its Shanghai plant on Monday because of problems sourcing parts for its electric vehicles, according to two people familiar with the matter. Shanghai is in the sixth week of a tightening COVID -19 lockdown that has tested manufacturers’ ability to operate amid tough restrictions on the movement of people and materials. Tesla had planned as recently as last week to increase production to pre-lockdown levels by next week.
Renault sells Korea stake to Chinese company Geely to turnaround
Renault has announced it will sell just over a third of its Korea unit to China’s Geely Automobile Holdings for about $200 million. This will free up funds for the French automaker to invest in its declining core markets and its electric business. Renault, whose 2021 sales fell for the third straight year, is in the midst of a turnaround plan aimed at boosting profit margins and restructuring its electric vehicles
(EV) and internal combustion engine businesses to compete with rivals such as Tesla and Volkswagen in the race for clean driving. The sale of a 34.02% stake in Renault Korea Motors for 264 billion won ($207 million) follows weeks after media reports that Renault, Nissan Motor’s main shareholder, may reduce its stake in the Japanese company.