International Market Overview 12 April 2022

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

 

International Market Update

  • European markets closed lower Monday at the start of a week of key central bank meetings and U.S. inflation data. The pan-European Stoxx 600 closed down 0.7%, with technology stocks leading the losses, down 2%, while most sectors and major bourses closed in negative territory. French President Emmanuel Macron and far-right challenger Marine Le Pen survived the first round of the French presidential election and will head into a hard-fought runoff on April 24. European Central Bank policymakers will meet in Frankfurt on Thursday to discuss their next monetary policy move.

     

  • U.S. stocks fell Monday as investors grew concerned that the three-year peak in the U.S. federal funds rate could lead to a slowdown in the economy. The yield on 10-year U.S. Treasury bonds rose above 2.79% on Monday, a level not seen since January 2019, as the Federal Reserve prepares investors for tighter monetary policy. Concerns about higher interest rates prompted investors to drop riskier assets, such as tech stocks, which led losses on Monday. Microsoft slipped 3.9%. Semiconductor stocks such as Nvidia and Advanced Micro Devices fell 5.2% and 3.6%, respectively.

     

  • Stocks in the Asia-Pacific region slipped most of this morning as investors continue to monitor developments around the Covid situation in mainland China. In Hong Kong, the Hang Seng Index rose 0.6%. Shares of Tencent and NetEase rose 4.47% and 4.42%, respectively, in the city after Chinese regulators approved new games for monetization following a month-long freeze.

 

In International News

 

TikTok’s ad revenue to surpass Twitter and Snapchat combined in 2022 – report

Video-sharing app TikTok’s ad revenue is likely to triple to more than $11 billion by 2022, surpassing that of rivals Twitter and Snap combined, according to market research firm Insider Intelligence. TikTok, owned by Chinese company ByteDance, is one of the most popular social media apps in the world, with more than 1 billion active users. Twitter and Snapchat are expected to generate $5.58 billion and $4.86 billion in advertising revenue, respectively, in 2022, with the total still below the $11 billion projected for TikTok. Nearly $6 billion, or more than half of this year’s ad revenue, is expected to come from the United States, despite regulators’ concerns that user data from the U.S. could be shared with China.

Honda to spend $64 billion on research and development to boost its electric mobility ambitions

Japan’s Honda Motor Co announced this morning that it plans to spend $64 billion on research and development over the next decade, with an ambitious goal of launching 30 electric vehicle models worldwide by 2030. The goals include producing about 2 million electric vehicles a year by 2030, and the strategy marks a push to gain a foothold in the fast-growing electric vehicle market, where Tesla leads and Japanese automakers risk falling behind traditional European and U.S. rivals. The bulk of the 8 trillion yen ($64 billion) investment is to go toward electrification and software technologies. This includes some 43 billion yen for a solid-state battery production demonstration line, which is due to come on stream in spring 2024.