International Market Overview 19 April 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 closed cautiously higher Thursday after the European Central Bank confirmed that its bond-buying program (APP) will end in the third quarter. The pan-European Stoxx 600 provisionally closed 0.68% higher, with travel and leisure stocks up 3.19%, while technology stocks fell 0.46%. The ECB left its monetary policy unchanged, but confirmed that it will end its bond purchases in the third quarter. Once the bond-buying program ends, ECB is expected to raise interest rates, following the same path as the Bank of England and the U.S. Federal Reserve.
  • U.S. stocks fell slightly at the start of a big earnings week, while traders kept an eye on rising interest rates and commodities. The yield on 10-year Treasuries hit its highest level since late 2018, trading at 2.884% at one point. In early March, the yield was still at 1.71%, but has skyrocketed as the Federal Reserve’s tightening policy has become more aggressive. Mega-cap technology stocks such as.
    Meta Platforms, Amazon, Microsoft and Alphabet ended the day higher after fluctuating back and forth above the apartment line throughout the trading session.
  • Asian stocks traded cautiously this morning as investors weighed China’s measures to mitigate an economic slowdown and the prospect of aggressive monetary tightening by the Federal Reserve. Hong Kong’s Hang Seng Index opened down 2.4%, weighed down by a slump in the city’s listed tech giants in the wake of China’s latest regulatory action against the sector

 

In International News

 

Bank of America beats analyst estimates thanks to better-than-expected loan growth

Bank of America on Monday reported first-quarter profit that beat analysts’ estimates, thanks to better-than-expected credit quality from borrowers. The bank said profit fell 12% to $7.07 billion, or 80 cents a share, beating the 75-cent estimate of analysts surveyed by Refinitiv. Revenue climbed 1.8% to $23.33 billion, roughly in line with expectations. Bank of America said strong lending continued in the first quarter for the second-largest U.S. lender by assets. Net loan charge-offs, an industry term for what happens when borrowers default on their payments, fell 52% from a year earlier to $392 million. That was less than half the StreetAccount estimate of $848.7 million.

Morgan Stanley beats estimates thanks to higher trading revenue

Morgan Stanley reported first-quarter profit Thursday that beat Wall Street expectations as the bank posted solid trading revenue. Equity and fixed-income trading revenue came in higher than expected amid volatile markets and higher completed M&A transactions. While Morgan Stanley’s numbers exceeded expectations, the bank saw a year-on-year slowdown in some businesses.
Net income of $3.7 billion, or $2.02 per share, was down nearly 8% from the $4.1 billion, or $2.19 per share, reported a year ago.