Sharing our Daily Market Overview with you, ensuring that you do not miss out on any important market changes!
International Market Update
- European markets closed higher Friday, tracking global gains as another volatile trading week comes to an end. The pan-European Stoxx 600 was up 0.5% by the close of trading, with travel and leisure stocks leading the gains with a 2% gain, while almost all sectors and major bourses closed in positive territory. On the data front, German producer prices rose 33.5% year-on-year in April, hitting a new record high as the war in Ukraine drives up energy costs in Europe’s largest economy. Retail sales in the United Kingdom unexpectedly rose 1.4% in April from the previous month, the Office for National Statistics Office announced Friday. However, economists believe this is just a blip in an otherwise downward trend.
- Rising recession fears briefly pushed U.S. stock markets into a bear market Friday, with the S&P 500’s decline from its all-time high in January reaching 20% at one point. A dramatic reversal late in the evening left the benchmark index slightly in the green at the close. On Wall Street, semiconductor stocks continued to fall Friday on recession fears and Applied Materials’ guidance cut.
- Stocks in the Asia-Pacific region trended mixed this morning amid ongoing global concerns. Chinese electric vehicle maker Xpeng will report its first quarter results later today. In Japan, the Nikkei 225 was up 0.44%, while Australia’s S&P/ASX 200 was up 0.12%. Markets in Greater China bucked the trend, with Hong Kong’s Hang Seng Index down 1.31% in early trading.
In International News
SpaceX to raise $1.7 billion in new funding
CNBC has learned that SpaceX is seeking a large new round of funding that will boost the privately held company’s valuation to about $127 billion. The space company is looking to raise up to $1.725 billion in new capital at a price of $70 per share, according to a company-wide email Friday obtained by CNBC. SpaceX had conducted a 1-for-10 stock split in February, bringing its common stock down to $56 per share – the new valuation represents a 25% increase. SpaceX is also conducting secondary sales of common stock worth up to $750 million to insiders and existing shareholders. The company regularly conducts these secondary offerings to give longtime shareholders the opportunity to sell shares, as SpaceX remains privately held more than 20 years after its founding.
Apple to boost production outside China, Wall Street Journal reports
Apple has told some of its contract manufacturers that it wants to increase production outside China. China wants to increase, the Wall Street Journal reports, citing people familiar with the matter. India and Vietnam, which are already Apple manufacturing locations, are among the countries the company has shortlisted as alternatives, according to the report. Apple had predicted major supply problems last month as COVID -19 closures slowed production and demand in China. The report said Apple cited China’s strict anti-covid policies and other reasons for its decision. Apple declined to comment to WSJ and couldn’t be reached by Reuters on Saturday.