International Market Overview 23 June 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 lower Wednesday, erasing gains from previous sessions, as global volatility continued. The pan-European Stoxx 600 closed down about 0.7%, with basic materials leading the losses with a 5% drop, while most sectors and major bourses closed in negative territory. On the data front in Europe, UK inflation hit a new 40-year high of 9.1% y/y in May.
    UK inflation hit a new 40-year high of 9.1% y/y in May.
  • U.S. stocks fell slightly in choppy trading Wednesday as markets struggled to sustain the previous day’s rally. Growing concerns about a recession on Wall Street have weighed on stocks recently. Fed Chairman Powell told Congress on Wednesday that the central bank is determined to curb inflation, which has reached a 40-year high. On Wall Street, expectations of an impending recession continued to rise this week. Citigroup raised the probability of a global recession to 50%, citing data suggesting consumers are beginning to curb spending.
  • Stocks in the Asia-Pacific region were mostly higher this morning as investors continued to keep an eye on recession concerns. Hong Kong’s Hang Seng Index rose 0.63%, and the Hang Seng Tech Index gained about 1%. As for economic data, Singapore will release its inflation figures today. Meanwhile, the death toll from an earthquake in Afghanistan rose to 1,000 on Wednesday, according to the disaster management agency. More than 600 people were injured, and the number is expected to rise as information arrives from remote mountain villages.

 

In International News

 

Latest meme shares Revlon rise more than 50% in heavy trading

Nail polish maker Revlon continued to soar as the latest so-called meme stock to ride a wave of interest from small investors, surging more than 50% in heavy trading Wednesday. Shares of the $330 million market cap company, which filed for bankruptcy last Wednesday, have risen more than 400% since hitting a low on June 14 as retail investors appear to be pouncing on the company. The rally was reminiscent of the more than 500% rise in shares of car rental company Hertz Corp after it filed for bankruptcy in May 2020 due to economic constraints in the early stages of the coronavirus pandemic.

 

Berkshire Hathaway buys 9.6 million more Occidental shares, raising its stake to more than 16%

Warren Buffett’s Berkshire Hathaway has bought another 9.6 million shares of Occidental Petroleum, raising its stake to 16.3% as the oil company’s shares lost their high for the year. The purchases were made last week and cost about $529 million, Berkshire said Wednesday in a report to regulators. They come on top of $336 million in stock purchases last month and $7 billion in purchases earlier this year. After those purchases, Berkshire now owns about 152.7 million Occidental shares worth about $8.52 billion, based on Occidental’s closing share price Wednesday, which is down more than 21% since its high for the year in May.