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International Market Update
- European stock markets closed lower Thursday amid a volatile week as investors watched the war in Ukraine and fluctuations in commodity prices. The pan-European Stoxx 600 fell 1.8% by the close, with auto stocks leading the losses with a 4.8% drop, while nearly all sectors and major bourses slid into negative territory. The European Central Bank on Thursday opted to keep interest rates on hold, cautious about the economic impact of Russia’s incursion into Ukraine. However, it announced it would scale back asset purchases sooner than planned.
- U.S. stocks fell Thursday after failed peace talks between Ukraine and Russia rattled investors about the impact of the geopolitical conflict on global growth. Goldman Sachs fell 1.1% after announcing it would close its Russia business, becoming one of the first major global investment banks to do so. The consumer price index, a key indicator of inflation, showed a broad basket of goods and services rose 7.9% in February, a new 40-year high. Month-on-month, CPI rose 0.8%, compared with the estimate of 0.7% for the month.
- Asian stocks continued their global slide today after the fastest U.S. inflation in four decades and a more aggressive stance by the European Central Bank (ECB) added to expectations of more aggressive rate hikes, further weighing on sentiment already battered by the Ukraine war. Hong Kong’s Hang Seng Index slumped 3.5%, with shares of Yum China and four other companies taking a hit after the companies were embroiled in an audit dispute between Beijing and Washington.
In International news
Rivian shares sink after electric carmaker plans to deliver just 25,000 vehicles this year
Shares of Rivian Automotive fell in after-hours trading Thursday after the company missed Wall Street’s fourth-quarter earnings expectations and forecast a modest increase in vehicle production for 2022. Shares of the electric carmaker fell more than 13% after hitting a new 52-week low earlier Thursday. Rivian expects to produce 25,000 electric trucks and SUVs this year as the startup struggles with supply chain bottlenecks and internal production issues. That would be just half the vehicle production the company promised investors last year during its IPO roadshow. Rivian said reservations for its vehicles have reached about 83,000 through March 8, up from 71,000 in December.
Oracle misses earnings as investments hurt quarterly profit
Oracle on Thursday reported third-quarter results that fell short of analysts’ expectations. Oracle’s revenue rose 4% in the quarter ended Feb. 28 compared with the same period a year earlier, according to the company. Net income fell 54% to $2.32 billion. The decline in net income was due to two investments. The company said profit was hurt by the falling share price of gene sequencing company Oxford Nanopore and an operating loss at private arm server chipmaker Ampere Computing. The company’s short-term deferred revenue of $7.87 billion was below the StreetAccount consensus of $8.01 billion.