International Market Overview 12 May 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 closed higher Wednesday, with investors largely ignoring better-than-expected inflation data from the United States. The pan-European Stoxx 600 closed up 1.6%, with auto stocks leading the gains with a 3.6% rise, while all sectors were higher except health care, which slipped 1.2%. Shares of German drugmaker Bayer fell 6% after U.S. President Joe Biden’s administration asked the U.S. Supreme Court to disregard the company’s appeal of the dismissal of lawsuits by customers claiming the weedkiller Roundup causes cancer.
  • U.S. stock markets closed sharply lower Wednesday, with the Nasdaq falling more than 3% and the Dow falling for a fifth straight day after U.S. inflation data failed to ease investor concerns about the outlook for interest rates and the economy. The Labor Department’s monthly Consumer Price Index report (CPI) suggests inflation may have peaked in April but likely remains strong enough to keep the Federal Reserve’s foot on the brake to cool demand. The CPI rose 0.3% last month, the smallest increase since last August. Economists polled by Reuters had forecast a 0.2% rise in consumer prices in April.
  • Stocks in the Asia-Pacific region slipped this morning after the U.S. consumer price index remained at its highest level in more than 40 years in April. Japan’s Nikkei 225 fell 1.57%, while Fast Retailing shares fell nearly 4%. At
    South Korea, the Kospi traded 0.86% lower. Australian shares also slipped, with the S&P/ASX 200 down 0.22%.


In International News


Apple is no longer the world’s most valuable company
Oil giant Saudi Aramco replaced Apple as the world’s most valuable company on Wednesday. Aramco’s market valuation was just under $2.43 trillion on Wednesday, according to FactSet, which converted the market capitalization into dollars. Apple, which fell more than 5% in U.S. trading Wednesday, is fell, is now worth $2.37 trillion. Energy stocks and prices have risen as investors sell stocks in a variety of industries, including technology, on fears of a worsening economic environment. Apple is down nearly 20% since peaking at $182.94 on Jan. 4.

Disney shares slide after earnings report
Disney reported higher-than-expected growth in streaming subscribers Wednesday, but cautioned that it is still feeling the effects of Covid on its theme parks in Asia. Disney reported that the total number of Disney+ subscriptions rose to 137.7 million in the second quarter, above the 135 million that analysts had forecast, according to StreetAccount. In addition, average revenue per user increased (ARPU) for domestic Disney+ subscribers rose 5% to $6.32. Earnings per share were an adjusted $1.08, while revenue was reported at $19.25 billion. This includes a $1 billion decrease due to the early termination of some licensing agreements.