International Market Overview 11 February 2022

Sharing our Daily Market Overview with you, ensuring that you do not miss out on any important market changes!

 

International Market Update

  • European stocks slipped Thursday after inflation data from the U.S. underscored the likelihood of a significant interest rate hike this year. The pan-European Stoxx 600 closed down 0.2%, with most sectors and major bourses sliding into negative territory. Technology stocks, which are typically sensitive to concerns about higher interest rates, were among the worst performers, down 1.1%. In Europe, gains Thursday included Credit Suisse, Unilever and Siemens.
  • U.S. stocks slipped Thursday after a key inflation report showed a faster-than-expected rise in prices, pushing the yield on 10-year Treasury bonds above an important level. The consumer price index report released Thursday showed a 7.5% year-over-year increase, which was stronger than expected and the biggest rise since 1982. The yield on 10-year Treasuries rose above 2%, up from 1.51% at the start of the year. Major technology stocks slipped, with Microsoft falling 2.8%.
  • Asia-Pacific stocks fell early today, following losses seen overnight on Wall Street. An index tracking Hong Kong-listed mainland property companies rose 2%, and an index tracking Chinese land-based real estate gained 1% after a media report that China will give property companies easier access to pre-sale proceeds from housing projects, easing liquidity pressures on the sector. Japanese markets are closed for a holiday.

 

In International news

 

Siemens reports strong order increase and beats profit forecast

Siemens on Thursday reported a better-than-expected profit in its industrial business. The German technology group said it received “exceptional” orders from its customers. Orders rose 52% to 24.21 billion euros ($27.66 billion), well above expectations, the maker of trains and factory software said, as companies stocked up on equipment and demand rose following the pandemic slowdown. Siemens now has an order backlog of 93 billion euros, the highest ever. Industrial profit rose 12% to 2.46 billion euros in the three months to the end of December, beating analysts’ forecasts of 2.27 billion euros. Sales in the first quarter of fiscal 2022 rose 17% to €16.50 billion, beating forecasts of € 15.95 billion. The company’s net income increased by 20% to €1.8 billion.

 

Zillow rises thanks to positive outlook and faster-than-expected sell-off of properties in its portfolio

Shares of Zillow rose as much as 20% in extended trading Thursday after the digital real estate company said it will exit its property sales business faster and more cheaply than expected. The company lost $261 million in the fourth quarter and $528 million for thefull year, with the entire deficit coming from its real estate business. However, Zillow said it sold 8,353 homes during the period, exceeding its forecast of about 5,000 sales, and ended the quarter with about 10,000 homes in inventory. Because of the faster pace of home sales, sales of $3.88 billion for the fourth quarter exceeded the average analyst estimate of $2.98 billion, Refinitiv said.