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International Market Update
- European stock markets closed higher Monday as investors continued to monitor developments in the war between Ukraine and Russia. The pan-European Stoxx 600 closed 0.3% higher, with auto stocks leading the gains with a 1.2% gain, while most sectors and major bourses were in positive territory. Ukrainian President Volodymyr Zelenskyy reiterated that his country is ready to discuss adopting neutral status as part of a peace deal with Russia. Meanwhile, U.S. Secretary of State Antony Blinken has sought to clarify U.S. President Joe Biden’s comments that Russian President Vladimir Putin “cannot remain in power.”
- The S&P 500 rose Monday, extending two weeks of gains as investors shrugged off recession worries and pushed technology stocks higher. Tesla led technology stocks after the electric vehicle maker said it plans a stock split to pay a stock dividend. Tesla climbed 8%. Other tech stocks that have been among the worst performers so far this year also rose, with Microsoft and Amazon gaining. The major indexes struggled early Monday after part of the U.S. Treasury yield curve briefly inverted overnight, sparking recession fears.
- Japanese stocks led gains in Asian equities this morning as the Bank of Japan defended its ultra-loose stance, while oil slipped on fears of lower demand from China as Shanghai adopted a “zero- COVID” strategy by closing the market despite a relatively modest drop. Meanwhile, the Australian stock market is sharply higher on Tuesday, extending the gains of the last five sessions
In International news
Apple reportedly cuts production of its new iPhone SE by 20%
Apple is cutting production of its new low-cost iPhone SE due to weaker-than-expected demand, Nikkei Asia reported Monday. The company has reportedly asked its suppliers to cut production of the iPhone SE, its new low-cost 5G phone valued at $429, by about 2 million to 3 million units, or about 20% of initial orders, the publication said. According to the report, Apple has also reduced orders for AirPods by about 10 million units for the full year 2022. This drop in production is a sign of the Ukraine war and the negative impact of inflation on electronics demand, Nikkei said.
Huawei reports first sales decline in current year
Huawei reported its first revenue decline in a year in 2021 as U.S. sanctions continue to hurt the company. Last year, however, the Chinese tech giant’s revenue had surged as it focused on boosting profitability. In 2021, Huawei generated revenue of 636.8 billion Chinese yuan ($99.9 billion), down 28.5% from the previous year. This is the first annual revenue decline based on publicly available reports since 2002. Net profit increased 75.9% year-on-year to 113.7 billion yuan last year. Meanwhile, the U.S. has labelled Huawei a national security threat and urged other nations not to use the company’s telecom equipment for the next-generation 5G mobile network.