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International Market Update
- European stocks rose Thursday as investors in the region digested monetary policy decisions from several major central banks. The pan-European Stoxx 600 ended the day up 1.2%, Oil and gas stocks rose 2.8% to lead gains, while all sectors and major bourses traded in positive territory. The Bank of England raised interest rates on Thursday for the first time since the pandemic broke out, despite concerns about the rapid spread of the Omicron variant in the United Kingdom. The bank raised its benchmark interest rate to 0.25% from its historic low of 0.1% as inflationary pressures mount.
- U.S. stock markets slid Thursday as weakness in major technology stocks dragged down the major market averages. Apple fell 3.9% and major semiconductor stocks such as AMD and Nvidia fell nearly 5.4% and 6.8%, respectively. Adobe shares fell more than 10% after the company’s forecasts fell short of analysts’ expectations. Banking stocks helped the Dow hold up better than its counterparts. Thursday’s moves erased much of the previous session’s rally, which was boosted by the Federal Reserve’s announcement that it will be more aggressive in its securities purchases and raise interest rates in 2022.
- Asia-Pacific markets traded mostly weaker this morning after overnight losses on Wall Street as investors assessed monetary policy decisions by the two main central banks. Hong Kong-listed shares of Chinese technology companies fell sharply. The United States said on Thursday it would impose trade restrictions on more than 30 Chinese research institutes and facilities over human rights violations.
In International news
Rivian shares slide after company lowers expectations for electric car production in 2021
Shares of Rivian Automotive fell 10% in after-hours trading Thursday after CEO RJ Scaringe and other executives reported an increase in customer reservations but lowered expectations for vehicle production this year. Rivian said it expects to fall short of its 2021 production target of 1,200 vehicles “by a few hundred vehicles.” The company said it has struggled with supply chain issues and has had difficulty ramping up production of the complex batteries that power the vehicles. For the third quarter, Rivian reported an operating loss of $776 million and a net loss of $1.23 billion. The company had previously forecast an operating loss between $745 million and $795 million and a net loss between $1.21 billion and $1.28 billion.
Adobe CEO blames timing, exchange rates for low forecast after stock plunges
Adobe Chairman and CEO Shantanu Narayen expressed confidence about the company’s future on Thursday, telling CNBC’s Jim Cramer that the software maker’s weaker-than-expected forecasts do not spell trouble for the company. Adobe expects revenue of $4.23 billion for the first quarter of its fiscal year, which runs through February 2022. Wall Street analysts had expected first-quarter revenue of $4.34 billion, according to Refinitiv. Adobe forecast full-year revenue of $17.9 billion, less than the $18.16 billion analysts expected. Narayen also said Adobe investors should keep in mind that the company’s first quarter is 13 weeks this year, down from 14 weeks in fiscal 2021. Overall, Adobe is returning to a 52-week fiscal year after the 2021 calendar included an extra week.