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International Market Update
- European markets closed mostly higher Tuesday, trying to recoup Monday’s sharp losses as investors watched corporate earnings and key monetary policy decisions around the world. The pan-European Stoxx 600 closed up 0.5%, with oil and gas stocks leading the gains, up more than 4%, while most sectors and major bourses closed in positive territory. Corporate earnings continued to be the main factor driving European stock prices. The yield on 10-year Bunds in Germany rose above 1% on Tuesday morning for the first time since 2015, just two months below zero. Yields move inversely to prices.
- U.S. stocks rose slightly Tuesday as investors looked ahead to a key Federal Reserve decision later in the day. Wall Street widely expects the central bank to raise interest rates by 50 basis points this week, while some investors believe expectations of aggressive monetary tightening by the central bank are already priced into markets. Tuesday’s gains were broad-based in the S&P 500, but led by the energy sector.
- Stocks in the Asia-Pacific region were mixed today as investors looked ahead to the U.S. Federal Reserve’s interest rate decision
Reserve, which is expected later in the United States. Hong Kong’s Hang Seng Index slipped 0.68% as shares of Tencent and Alibaba each fell about 2%. Markets in Japan and mainland China are closed today for the holiday.
In International News
Airbnb beats estimates with 70% revenue growth
Airbnb performed better than expected Tuesday, issuing an optimistic forecast for the second quarter as the company sees a rebound in travel after the pandemic. First-quarter revenue rose 70% from a year earlier, despite pandemic concerns, “macroeconomic headwinds” and the war in Ukraine, the company said. Airbnb’s net loss narrowed to $19 million from $1.2 billion in the year-ago quarter. Growth is expected to remain strong in the current quarter. Airbnb said revenue will be between $2.03 billion and $2.13 billion, beating analysts’ average estimate of $1.96 billion.
The average estimate of $1.96 billion. The low end of the range would represent 52% growth. For the first quarter, Airbnb reported 102.1 million booked nights and experiences, surpassing previous years’ levels. Analysts had expected 100.87 million.
BP profits rise, calls for windfall tax grow louder
BP’s profits more than doubled in the first three months of this year after oil and gas prices soared. The energy giant reported adjusted profits of $6.2 billion (£4.9 billion), up from $2.6 billion in the same period last year, and ahead of expectations. Rising profits have prompted calls for a one-off special tax on energy companies to help UK households struggling with rising bills. BP The company’s profits were driven by a sharp rise in oil prices, initially due to increased demand as the economy picked up after the Covid shutdown. Last November, the chief executive of BP, Bernard Looney, described the energy market as a “money machine.” BP expects to pay a billion pounds in taxes on its North Sea profits in 2022, on top of the roughly 250 million pounds it has paid annually in other taxes in the U.K. in recent years.