International Market Overview 17 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 trended choppily Monday as global markets struggled to find direction after last week’s volatility. The pan-European Stoxx 600 closed just above the zero line, having earlier recouped losses of up to 0.8%. Commodity stocks rose 1.6% to lead gains, while technology stocks fell 1.4%. Irish airline Ryanair on Monday reported a net loss of 355 million euros ($369.06 million) for the 12 months to the end of March hit by the pandemic. Ryanair hopes to return to “reasonable profitability” this year. The company’s shares fell slightly at the close.
  • The S&P 500 fell in choppy trading Monday as the broader market index failed to recover from last week’s losses and traders weighed the potential for a U.S. recession. Tech stocks weighed on prices. Several cloud companies slipped, including Datadog, Cloudflare and Atlassian, which fell 10.7%, 13.6% and 6.3%, respectively. Meanwhile, shares of electric vehicle maker Tesla fell 5.9%.
  • Asia-Pacific stocks were mostly higher in morning trading today, with Hong Kong shares leading the region’s gains. The Hang Seng Index gained 1.72% in morning trading as Chinese technology stocks advanced. Tencent was up 3.26%, while Alibaba rose 4.79%. Meanwhile, the Reserve Bank of Australia to raise interest rates further to ensure inflation in the country “returns to target over time,” according to minutes of the central bank’s May meeting on Tuesday.

 

In International News

 

Buffett-backed Nubank beats revenue estimates thanks to strong customer growth

Nubank posted a jump in revenue Monday that exceeded expectations. The Warren Buffett-backed digital bank benefited from a healthy loan book and strong customer growth, sending shares up nearly 8% in extended trading. Nubank added 5.7 million new customers in the quarter, while average monthly revenue per active customer rose to $6.7, up $3.2 from a year earlier. Average cost per customer fell to 70 cents per month from 80 cents a year ago. Net loss shrank to $45.1 million from $49.4 million a year ago. Revenue more than tripled from a year earlier to $877.2 million, well above analysts’ estimates of $624.15 million, according to data from Refinitiv.

 

Russia nationalises Renault plant in Moscow

Renault has announced it will sell its majority stake in Russian automaker Avtovaz after coming under pressure over its continued presence in Russia. The French automaker said it will sell its 68% stake to a Russian scientific institute, while its shares in Renault Russia will go to the city of Moscow. Moscow said Renault’s Russian assets are now state property. It is the first Russian nationalisation of a major foreign company since the invasion of Ukraine. “Agreements have been signed on the transfer of Renault Group’s Russian assets to the Russian Federation and the government of Moscow,” the Russian Industry and Trade Ministry said.