International Market Overview 30 May 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 higher Friday, ending a positive week as fears of monetary tightening eased slightly. The pan-European Stoxx 600 provisionally closed 1.5% higher, with technology stocks leading the gains with a 3.2% gain, while most sectors and major bourses were in positive territory. Markets also remain attuned to the conflict in Ukraine, with a U.S. official saying Russia is making “gradual progress” in the Donbas region. Russia’s Defense Ministry said it would allow foreign ships to leave ports in the Black Sea and Sea of Azov, according to the state-run Interfax news agency, amid growing concerns about rising global food prices.
  • Investors recovered from a painful sell-off as the Dow Jones Industrial Average and the S&P 500 rallied, closing out their best weeks since November 2020. Meanwhile, a report showing a slight slowdown in inflation boosted stocks Friday. The core personal consumption expenditures index rose 4.9% in April, down from 5.2% the previous month. This report will be closely watched by the Federal Reserve as it sets policy. On Friday, investors continued to analyze retail sales results.
  • Stocks in the Asia-Pacific region rose this morning as investors await the release of key economic data later this week. China will release its official manufacturing purchasing managers’ index for May on Tuesday, with investors looking for clues on the economic impact of Covid-related closures on the mainland.

 

In International News

 

Twitter must pay $150 million fine in U.S. for selling user data

Twitter must pay a $150 million (£119 million) fine in the U.S. after law enforcement agencies accused the company of illegally using its users’ data to sell targeted advertising. The Federal Trade Commission (FTC) and the Federal Trade Commission (FTC) and the Justice Department accuse Twitter of violating an agreement with regulators, according to court documents. Twitter had vowed not to share personal information such as phone numbers and email addresses with advertisers. Federal investigators say the social media company violated those rules. Twitter was fined £400,000 in December 2020 for breaching European data protection rules GDPR.

Shell says ‘windfall tax’ creates ‘uncertainty’ for investment in North Sea oil and gas development
Shell has said that the chancellor’s “windfall tax” creates “uncertainty” over investments in North Sea oil and gas. The tax was announced by Rishi Sunak as part of a £21 billion aid package to help people cope with the rising cost of living. Under the measure, oil and gas companies will have to pay a 25% levy on their profits, but in return will receive tax breaks worth 91 pence for every pound invested, according to the
Treasury. A Shell spokesman said the company understands the “concerns of millions of people whose household budgets are being squeezed by high energy costs” and the need for support “to make ends meet.” The tax is expected to raise £5 billion for the Treasury, and Mr. Sunak said it will be phased out when energy prices return to normal levels.