International Market Overview 13 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 fell Thursday as investors remained concerned about slowing growth, interest rate hikes and inflation data from the United States. The pan-European Stoxx 600 index closed 0.6% lower, erasing sharp losses at the open. Basic materials fell 3%, while almost all sectors and major bourses closed in negative territory. The U.K. economy contracted 0.1% in March but grew 0.8% overall in the first quarter of 2022, official figures showed Thursday. That missed consensus forecasts, suggesting the worst is yet to come as the country’s escalating cost-of-living crisis takes hold.
  • The Dow Jones Industrial Average fell for a sixth straight day Thursday as traders once again failed to navigate an increasingly volatile market. The S&P 500 hit a new low for 2022, closing more than 18% below its 52-week high and moving toward a bear market.
    Apple lost 2.7%, pushing the stock into a bear market and sending it down 22% from its 52-week high. Shares of Disney fell to a two-year low but closed down 0.9%. The media giant reported higher-than-expected growth in streaming subscribers, but warned of the impact of Covid on parks in Asia.
  • Asia-Pacific stocks edged higher this morning, continuing a roller coaster ride as investors assess inflation and the global economic outlook. Japan’s Nikkei 225 was trading 2.34% higher, with shares of Japanese conglomerate SoftBank Group up more than 9%
    despite Japanese conglomerate SoftBank Group reporting a record loss at its Vision Fund investment unit on Thursday.

 

In International News

 

Cryptocurrency Luna now almost worthless

Luna, the sister cryptocurrency to the controversial stablecoin TerraUSD, has slumped to nearly $0.
TerraUSD, or UST, has been dragged into the spotlight in recent days after the so-called stablecoin, which is supposed to be pegged one-to-one to the U.S. dollar, fell well below the
$1 mark. Unlike rival stablecoins Tether and USD Coin, UST is not backed by real assets such as bonds. Instead, it is held by the Luna Foundation Guard, a nonprofit entity founded by Terra founder Do
Kwon-founded nonprofit Luna Foundation Guard, holds about $3.5 billion worth of Bitcoin in reserve.

 

Shell agrees to sell Russian retail business to Lukoil

Energy giant Shell has agreed to sell more than 400 of its gas stations in Russia to the country’s second-largest oil producer, Lukoil. Shell Neft, the company’s subsidiary in Russia, will be sold for an undisclosed sum. Many Western oil and gas companies have been looking to divest their Russian operations following the country’s invasion of Ukraine. Shell said the sale, which includes 411 service stations, will safeguard 350 jobs. The sale also includes a lubricants blending plant about 200 km northwest of Moscow. Lukoil is Russia’s largest oil producer after state-backed Rosneft. Shell announced in February that it would sell its Russian assets due to the invasion of the
Ukraine.