International Market Overview 3 March 2022

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International Market Update

  • European stocks closed higher Wednesday as the geopolitical crisis between Russia and Ukraine continues. The pan-European Stoxx 600 closed about 1.1% higher after falling 0.9% at the opening. Oil and gas stocks led the gains, rising more than 4% as crude oil prices surged. In Europe, Atos and Signify earnings were released, along with February eurozone inflation and the latest unemployment figures for Germany in February.
  • U.S. stocks shot up as investors watched testimony on the Federal Reserve’s plans to raise interest rates and awaited news from Ukraine. Fed Chairman Powell testified that it would be appropriate for the central bank to raise its benchmark interest rate, which currently ranges between 0% and 0.25%, at its meeting in two weeks. Powell said he favours a 25 basis point increase rather than a larger 50 basis point hike and will propose such a move when the Fed meets for its two-day meeting in mid-March.
  • Stocks in the Asia-Pacific region were mostly higher this morning as U.S. stocks rebounded overnight. The Caixin/Markit purchasing managers’ index for the services sector was 50.2 in February, down from 51.4 in January. The 50-point mark in PMI readings separates growth from contraction. PMI readings are sequential and indicate expansion or contraction from the previous month.


In International news

Snowflake plunges nearly 30% on slowing sales growth

Shares of Snowflake fell as much as 30% in extended trading Wednesday after the data analytics software company reported its slowest revenue growth since at least 2019. Earnings came in at an adjusted loss of 43 cents. Revenue was $383.8 million, according to Refinitiv, versus $372.6 million expected by analysts. Snowflake’s revenue grew 101% year over year in the fourth quarter ended Jan. 31, it said in a statement. In the previous quarter, growth was 110%. The company reported a net loss of $132 million, narrowing from nearly $199 million in the year-ago quarter. The company said it had nearly 6,000 customers at the end of the fourth quarter.


Airbus, ExxonMobil and Boeing take action over Russia ties 

Airbus has joined rival aircraft maker Boeing and oil giant ExxonMobil on a growing list of corporate giants cutting ties with Russia. The European manufacturer said it had stopped supporting and supplying spare parts to the Russian aviation industry. Earlier, Boeing suspended operations and ExxonMobil said it would end a multibillion-dollar joint venture with Russian state-owned Rosneft. The companies are pulling out of Russia after the West imposed sanctions over Ukraine. Airbus said Wednesday, “In line with international sanctions, Airbus has stopped providing support services to Russian airlines and supplying spare parts to the country. “Airbus Engineering Centre in Russia (ECAR) services have also been suspended until further notice.”