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International Market Update
- European equity markets closed weaker on Friday as investors reacted to recent decisions by the European Central Bank and a higher-than-expected U.S. inflation rate. The pan-European Stoxx 600 ended the day down 2.7%, with banks leading the losses with a 4.9% drop, while all sectors and major bourses closed in negative territory. Meanwhile, Russia’s central bank cut its key interest rate by 150 basis points on Friday to 9.5%, the same level as before Russia’s invasion of Ukraine.
- U.S. stocks fell sharply Friday after a highly anticipated inflation report showed faster-than-expected price increases and consumer sentiment sank to a record low. The selloff was broad-based, with nearly all members of the 30-stock Dow down. On the New York Stock Exchange, falling stocks outpaced The Consumer Price Index report for May hit its highest level since 1981, putting pressure on the stock market.
- Stocks in Asia fell this morning as major markets in the region posted sharp losses of more than 2% amid a sell-off in the technology sector. The losses in Asia came as U.S. Treasury bond yields rose in the morning Asian trading session. The benchmark yield on the 10-year Treasury note climbed to 3.195% while the yield on the 2-year Treasury note rose to 3.181%. Markets in Australia are closed on Monday closed for a public holiday. Later this week, a series of Chinese economic data will be released on Wednesday, including industrial production and retail sales for May.
In International News
Tesla asks investors to approve 1-for-3 stock split
Electric carmaker Tesla on Friday proposed a 3:1 stock split to make its shares more affordable following recent sales by the most valuable automaker. The company also said
Oracle Corp. co-founder Larry Ellison, a friend of Tesla Chairman Elon Musk, will not stand for re-election to the Tesla board when his term ends at this year’s shareholder meeting.
Shares of Austin, Texas-based Tesla rose more than 1% in extended trading Friday. They have fallen nearly 40% since Musk announced his stake in Twitter in early April, due in part to a strict lockdown in Shanghai that has hurt Tesla’s production.
Bidding war for Indian cricket media rights spills over to Monday
The bidding war for the media rights to the Indian Premier League (IPL) continues this morning, with Disney, Sony and India’s Reliance vying for the rights, which could fetch the Indian Cricket Association as much as $6 billion. Bidding began Sunday for broadcast rights, digital rights, a bespoke package of rights for high-value matches and rights to broadcast the world’s richest T20 league overseas. The IPL, whose franchise owners include top Indian industrialists and Bollywood stars such as Shah Rukh Khan, is often seen as a surefire ticket to high ratings on TV and growth in India’s booming online streaming sector.