International Market Overview 7 January 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 fell sharply Thursday as fears of more aggressive tapering by the U.S. Federal Reserve triggered a global market selloff. The pan-European Stoxx 600 index provisionally closed down 1.3%, with nearly all sectors and major bourses in negative territory. Tech stocks were among the worst performers in Europe on Thursday. Banks, which would benefit from a normalization of interest rates, were the standout gainers in Europe by sector, rising 0.9%.
  • In the U.S., prices headed lower Thursday after a massive sell-off in technology stocks in the previous session, ending a choppy trading day. Several tech stocks continued their slide as investors turned away from highly valued stocks. Tesla and Netflix fell more than 2% each. While investors digested the minutes Thursday, the yield on 10-year Treasury notes climbed above 1.75% after ending last year at 1.51%. Shares of Walgreens Boots Alliance reversed earlier gains after a strong earnings report to close 2.8% lower.
  • Asia-Pacific stocks rose this morning after some regional markets suffered sharp losses the previous day, as investors continue to weigh the impact of a potentially faster-than-expected tightening of monetary policy by the U.S. Federal Reserve. Hong Kong-listed shares of Chinese property companies fell after Reuters reported that developer Shimao Group defaulted on an escrow loan, renewing concerns about the sector. Shares in Shimao slumped 16.1% in Hong Kong.

 

In International news

 

Bed Bath & Beyond lost $100 million in revenue in Q3

Bed Bath & Beyond CEO Mark Tritton on Thursday expressed disappointment with the retailer’s supply chain issues in the third quarter, but also suggested there was a silver lining. “It shows that the brand is alive and well and that we have demand. The fact that we can not meet it absolutely kills me. This is a real opportunity for [2022],” Tritton said in an interview with CNBC. The company estimates it left about $100 million in revenue on the table in the third quarter, which explains why third-quarter revenue of $1.88 billion fell short of Wall Street’s forecast of $1.95 billion.

Samsung Electronics expects profit to jump in fourth quarter

Samsung Electronics said its fourth-quarter operating profit is expected to rise 52% to its highest quarterly profit in four years, driven by solid demand for server memory French fries and higher margins on contract chip manufacturing. The world’s largest memory chip and smartphone maker estimated October-December profit at 13.8 trillion won ($11.5 billion), which would be the tech giant’s highest operating profit since the fourth quarter of 2017. Samsung will release detailed results on Jan. 27.