International Market Overview 11 May 2022

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International Market Update

  • European stocks advanced Tuesday as global markets recovered from a broad selloff in recent days, driven mainly by concerns about inflation and rising interest rates – and the potential for a global recession. The pan-European Stoxx 600 closed 0.8% higher, with the financial services sector leading the gains with a 1.6% gain, while most sectors and major bourses closed in positive territory. The German ZEW Institute’s May economic expectations were -34.3 for the month of May, a significant improvement on the April figure (-41.0) and well above forecasts of -44.5.
  • U.S. equity markets fluctuated on Tuesday, with the Dow down for a fourth day as the major indexes struggled to recover from heavy selling. Tuesday’s gains were led by beleaguered technology stocks. Microsoft and Apple rose more than 1% and Intel and Salesforce gained more than 2%. The sector has suffered some of the biggest losses in recent weeks as investors pulled out of growth areas and into safe havens like consumer staples and utilities on recession fears. Treasury yields eased from multi-year highs, with the 10-year government bond yield trading below 3% after hitting its highest level since late 2018 on Monday.
  • Asia-Pacific equities were mixed this morning as investors awaited the market’s reaction to the release of better-than-expected Chinese inflation data for April. China’s producer price index for April rose 8% year-on-year, according to data released by China’s National Bureau of Statistics. The increase was above the expectations of analysts polled by Reuters, who had expected a 7.7% rise.

 

In International News

 

Coinbase revenue falls 27% from a year earlier, shares slide
Coinbase reported first-quarter results after the market close Tuesday that missed analysts’ revenue estimates.
Tuesday. Shares fell more than 15% in after-hours trading after falling 12.6% in regular trading before the results were announced. The loss per share was $1.98, while revenue was $1.17 billion, according to Refinitiv, compared with $1.48 billion expected. Overall, Coinbase usage was down from the fourth quarter. The number of monthly transaction users (MTUs) fell to 9.2 million, down from 11.4 million in Q4, while total trading volume fell from $547 billion in Q4 to $309 billion. Revenue fell 27% year-over-year, and the company reported a net loss of $430 million for the first quarter.

Nintendo makes surprise announcement of 1-for-10 stock split
Nintendo announced a 1-for-10 stock split on Tuesday. In doing so, the Japanese gaming giant aims to make its shares more attractive to small investors. Shareholders have been calling for a stock split for some time to increase the liquidity of the gaming giant’s shares. The stock split will take effect on October 1 this year, when each share of common stock will be split into 10 shares. Nintendo’s surprise announcement of the stock split came as it announced its results for the fiscal year ended March 31. Revenue totaled 1.69 trillion Japanese yen, down 3.6% from the previous year. Net income fell 0.6% to 477.6 billion yen.