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International Market Update
- European stocks closed higher Tuesday after another round of Ukraine-Russia talks began. The pan-European Stoxx 600 closed up 1.7%, with auto stocks leading the gains with a 5.9% increase. All sectors traded in positive territory except basic materials and oil and gas, which fell 2.2% and 1.9%, respectively. Russia’s deputy defense minister said after the talks that Russia had decided to drastically reduce its military activities focused on Kiev and Chernihiv, according to Reuters, while Ukrainian negotiators proposed to accept neutral status in exchange for security guarantees. .
- U.S. stocks rose Tuesday, continuing Wall Street’s winning streak, as traders watched cease-fire negotiations in Europe and key bond market stocks. Auto stocks were among the biggest gainers, with Ford up 6.5% and GM up more than 4%. Travel stocks also performed well, while in the technology sector Netflix was up more than 3% and Snap was up 4.5%. Traders closely watched the bond market, where the yield on the 5-year Treasury note was above the 30-year yield at times Tuesday, a reversal that stoked some recession fears.
- Stocks in the Asia-Pacific region were mixed this morning as investors monitor developments related to the war in Ukraine. Hong Kong-listed shares of the electric vehicle division of troubled construction company Evergrande fell more than 10% after trading resumed Wednesday. Meanwhile, Hong Kong-listed shares of China Evergrande Group are “suspended until further notice,” the company said Tuesday.
In International news
Nintendo shares slump 6% over ‘Legend of Zelda’ delay
Nintendo shares slumped 6% in Tokyo trading after the Kyoto-based game company announced it will delay the release of the highly anticipated sequel to “Legend of Zelda: Breath of the Wild” from its planned debut this year to spring 2023. The drop in share price came after Nintendo’s stock had gained 25% year-to-date by the close of trading Tuesday. The move eased concerns that the successful Switch console may have peaked after a hardware refresh in October and the release of a critically acclaimed Pokemon title in January.
Lululemon predicts strong 2022, plans selective price increases
Lululemon Athletica on Tuesday gave a full-year profit and revenue forecast that beat estimates as demand for sportswear remains steady even as people return to the office, and said it plans selective price increases for some of its products. Shares of the yoga apparel maker rose about 8% in extended trading as the company reported better-than-expected adjusted profit for the fourth quarter despite reduced store hours due to an increase in Omicron infections. Since the pandemic began, many consumers have shifted their preference to comfortable and casual clothing, supporting brands such as Lululemon, whose athleisure and sportswear has become a staple of everyday fashion.