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International Market Update
- European stock markets closed higher Thursday as investors appeared to push aside worries about runaway inflation. The pan-European Stoxx 600 ended the day up 0.4%, ending a choppy trading day. Travel and leisure stocks gained 2.7%, while auto stocks fell 0.9%. U.K. food delivery service Deliveroo rose 1.4% after reporting a 70% increase in the total value of orders in 2021. Meanwhile, shares of Dutch tech investment firm Prosus climbed 6.5% after Goldman Sachs resumed coverage of the stock with a “buy” rating.
- U.S. indexes gave back their strong gains from the previous day on Thursday as Wall Street continues to grapple with a rising interest rate environment this year. Technology stocks such as Zoom Video and Tesla led the markets higher for most of the day Thursday. However, many lost steam toward the end of the session. Netflix closed down 1.5% ahead of quarterly results, which were to be released after the bell.
- Asia-Pacific markets slipped this morning, following Wall Street’s declines overnight. Japanese inflation data released today showed core consumer prices rose 0.5% in December from a year earlier as the cost of fuel and raw materials increased, Reuters reported. The increase was the fastest in nearly two years for the second month in a row, Reuters said.
In International news
Netflix shares fall 20% on slowing subscriber growth
Netflix released its fourth-quarter results after the stock market bell on Thursday. The streaming provider posted gains in both profit and loss, but shares fell more than 20% in after-hours trading to their lowest level since June 2020 as subscriber growth slowed. Netflix added 8.28 million net paying subscribers worldwide in the fourth quarter. Analysts had expected an increase of 8.19 million, according to StreetAccount estimates. However, that’s less than the 8.5 million subscribers Netflix added in Q4 2020, the same number the company had forecast for Q4 2021, and the outlook was worse. Netflix said it expects to add 2.5 million subscribers in Q1 2022, well below the 3.98 million it added in Q1 2021. Analysts had expected 6.93 million in the first quarter, according to StreetAccount estimates.
Airbus says it revokes Qatar order for 50 A321 jets, escalating dispute
Airbus on Thursday escalated a dispute with one of its largest customers, Qatar Airways, over undelivered A350 jets. The company announced it has revoked a separate contract for 50 smaller A321 jets the airline needs to open new routes. The move is expected to deepen a dispute that moved toward a rare court encounter Thursday. A procedural hearing on Qatar’s demand for $600 million in compensation for A350 defects is scheduled for the week of April 26 in London. People familiar with the matter said Airbus declared its intention to withdraw from the contract for the A321neos in a scheduling session Thursday before a division of the U.K. High Court.