Sharing our Daily Market Overview with you, ensuring that you do not miss out on any important market changes!
International Market Update
- European equities fell further on Tuesday amid fears that central banks will be forced to tighten monetary policy aggressively in the face of persistently high inflation. The pan-European Stoxx 600 fell 1.2% by the close of trading after rising 1% earlier in the session. Retail stocks fell 2% to lead the losses, while banks gained 1.3%. On the data front, German inflation accelerated to a five-decade high of 7.9% year-on-year in May, official figures confirmed Tuesday. The unemployment rate in the United Kingdom rose slightly to 3.8% in the three months to April, the Office for National Statistics announced Tuesday. At the same time, the number of job openings rose to a record 1.3 million.
- In the U.S., prices fell Tuesday as the S&P 500 dipped further into a bear market and interest rates soared as investors anticipate more rate hikes from the Federal Reserve. Tech companies posted a brief rally during the trading session, led by shares of Tesla, Microsoft and Nvidia. Tuesday’s moves came ahead of the Federal Reserve meeting, which concludes today. Investors on
Tuesday, investors digested another key inflation reading, the Producer Price Index for May, which showed a 10.8% increase in wholesale prices, close to a record high.
- Stocks in the Asia-Pacific region were mixed in early morning trading after Wall Street suffered losses overnight and the S&P 500 fell deeper into bear market territory. China’s industrial production climbed 0.7 percent in May China’s industrial output rose 0.7% in May from a year earlier, official data showed, following a 2.9% decline in April. The May results were above the expectations of analysts polled by Reuters, who’d expected a 0.7% decline.
In International News
Coinbase lays off 18% of workforce as it prepares for recession and ‘crypto winter’
Coinbase is laying off nearly a fifth of its workforce amid a slump in its stock and crypto prices. The cryptocurrency exchange will cut 18% of its full-time positions, according to an email sent to employees Tuesday morning. Coinbase has about 5,000 full-time employees, a reduction of about 1,100 people. CEO Brian Armstrong referred to a potential recession and the need to get a handle on Coinbase’s burn rate and increase efficiency. He also said the company grew “too fast” during a bull market. Coinbase had initially announced a hiring freeze. Two weeks later, the crypto giant announced it would extend the hiring freeze for the “foreseeable future.” Earlier this year, Coinbase had announced plans to add 2,000 new positions in product, engineering and design.
Toyota, slow to move to e-vehicles, says it offers choices that meet customers’ needs
Toyota, which has faced criticism from investors over its commitment to battery-powered electric vehicles, said Wednesday it needs to offer a variety of choices to meet different environments and customer needs. The world’s largest automaker by revenue opened its annual shareholder meeting Wednesday under fire from environmentally conscious investors for not phasing out gasoline cars and lobbying on climate policy. Toyota, which became the darling of environmentalists more than two decades ago with its Prius hybrid model, argues that hybrid vehicles still make sense in markets where the infrastructure isn’t yet ready for a faster shift to battery-powered electric vehicles