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International Market Update
- European stocks advanced Friday as global markets regained some ground after a rough week, with investors assessing the outlook for inflation and interest rates. The pan-European Stoxx 600 rose 2%, with travel and leisure stocks leading the gains with a 4.7% rise, while all sectors and major bourses closed in positive territory. Industrial production in the eurozone contracted 1.8% in March from the previous month, more than the 1% expected in a Dow Jones survey. Jones survey was expected as the war in Ukraine began to take its toll.
- U.S. stocks rallied Friday, cutting losses from another poor week and preventing the S&P 500 from slipping into bear market territory. All sectors of the S&P 500 closed higher Friday, led by consumer cyclical and information technology stocks, which gained 4.1% and 3.4%, respectively. Shares of Twitter, meanwhile, plunged 9.7% after Elon Musk announced a hold on the acquisition as he awaits more details on the platform’s fake accounts. In other news, shares of Robinhood surged 24.9% after crypto CEO Sam Bankman-Fried bought a stake in the company.
- Asia-Pacific stocks gave back their early gains this morning after China reported disappointing economic numbers as a result of Covid restrictions. Tech stocks in Hong Kong initially rose sharply before giving back their gains following the poor economic news from China.
In International News
Emirates Airline makes $1.1 billion loss on rising fuel prices
Dubai-based Emirates Airline narrowed its losses to $1.1 billion in the fiscal year through March, even as rising fuel costs threaten to overshadow a recovery in travel demand. The world’s largest long-haul carrier reported a 91% jump in revenue to $16.1 billion as travel stoppages eased and the airline increased capacity. The previous year, Emirates posted a $5.5 billion loss. Emirates said fuel accounted for 23% of operating costs during the year, compared with just 14% in 2020-21. Dubai airports, Emirates’ home base, attracted 13.6 million passengers in the first quarter, according to new data released Thursday.
Oil giant Aramco reports record quarter thanks to rising oil prices
Oil giant Aramco on Sunday reported a more than 80% rise in net profit, beating analysts’ expectations and setting a new record for quarterly profit since its initial public offering. The Saudi Arabian giant announced that net profit rose 82% to $39.5 billion in the first three months of the year from $21.7 billion in the same period last year. Analysts polled by Reuters had expected net profit of $38.5 billion. Aramco’s results reflect continued momentum in the oil and gas industry, which has benefited from a price increase of more than 45% year-to-date.
Aramco is rewarding its investors with this. The company said it will use $4 billion in retained earnings to distribute bonus shares to shareholders – equivalent to one share for every 10 shares held.