Global Market Update
The trading day witnessed a mixed performance across major U.S. stock indexes, with slight gains seen amidst a backdrop of cautious anticipation ahead of the forthcoming March inflation report, scheduled for release tomorrow. This critical economic indicator holds significant weight for investors, shaping expectations around potential shifts in monetary policy and overall market sentiment.
Simultaneously, the U.S. dollar experienced a modest decline, reflecting the cautious stance of investors as they awaited the inflation data. A weaker dollar can sometimes be indicative of market uncertainty or a wait-and-see approach among traders.
In Europe, stock markets faced downward pressure as investors braced for the European Central Bank’s monetary policy decision later in the week. Uncertainty surrounding potential policy adjustments or commentary from ECB officials contributed to the subdued market sentiment.
On the other side of the globe, Japan’s Nikkei index saw gains, buoyed by a positive performance in chip-related stocks. The market sentiment was further lifted by a weaker yen, which tends to benefit Japanese exporters and support overall equity market performance.
In Canada, the main stock index remained relatively flat as investors awaited the Bank of Canada’s rate decision, scheduled for Wednesday. Anticipation surrounded the central bank’s stance on interest rates and any potential signals regarding the economic outlook.
Meanwhile, oil prices trended higher, driven by concerns over supply disruptions emanating from geopolitical tensions in the Middle East and production issues in Mexico. These factors contributed to upward pressure on crude oil prices, adding to the complexity of the global economic landscape.
In the precious metals market, gold extended its rally for the eighth consecutive session, reflecting ongoing investor interest in safe-haven assets amidst lingering economic uncertainties and inflationary pressures. The sustained uptrend in gold prices underscored market participants’ continued focus on hedging against potential risks and volatility in other asset classes.
Corporate News
- UBS: In discussions to acquire full ownership of its China platform by exchanging its stake in Credit Suisse’s onshore securities venture with a Beijing government investment fund.
- Shell: Considering various options, including moving its listing from London to New York, as stated by the company’s CEO in a Bloomberg Opinion article.
- Criteria (Spanish holding vehicle): Increased its stake in Telefonica to 5.007% from the previous 2.69%. Criteria is the main shareholder in Caixabank.
- Tesla: Settled a lawsuit related to a 2018 fatal car crash involving its Autopilot feature, where a Model X veered off a highway near San Francisco.
- U.S. Small-Business Sentiment: Declined to its lowest level in over 11 years in March due to rising concerns about inflation, according to a survey.
- Airlines: Facing challenges due to a surge in travel demand expected to exceed pre-pandemic levels, coupled with a significant drop in aircraft deliveries due to production issues at Boeing and Airbus.
- Microsoft: Planning to invest approximately $2.9 billion over the next two years to enhance its artificial intelligence business in Japan, including setting up a new research and development lab in Tokyo.
- Pfizer: Announced positive results from a trial of its respiratory syncytial virus (RSV) vaccine, Abrysvo, in high-risk adults under 60, aiming for expanded approval in this age group.
- Aviva: Completed the acquisition of AIG’s UK life insurance business for £453 million, marking the largest takeover under CEO Amanda Blanc’s leadership.
- Applied Materials Inc: Considering delaying or canceling plans for a $4 billion research and development facility in Silicon Valley due to a lack of government funding.
- B Riley Financial Inc: Disclosed that Targus International, an indirect subsidiary, experienced an unauthorized access incident, temporarily disrupting its business operations.
- Blackstone Inc: Reportedly nearing a deal to take L’Occitane International SA private, a Hong Kong-listed skincare company, in partnership with its billionaire owner, Reinold Geiger.
- Bloom Energy Corp: Set to receive up to $75 million in federal tax credits to expand its manufacturing plant in Fremont, California, as part of the Biden administration’s clean energy initiatives.
- Boeing Co: Confronting a challenging scenario where surging travel demand is expected to outstrip available aircraft due to production problems at Boeing and Airbus.
- BP Plc: Expects first-quarter production to surpass the previous three months, with strong results anticipated in oil and gas trading, despite potential adverse impacts from lower realized prices.
- Chevron Corp: Ceased operations at the Yadana natural gas field in Myanmar, redirecting its stake to remaining shareholders amid ongoing humanitarian concerns following the 2021 coup.
- General Motors Co: Preparing to resume testing of its self-driving car unit, Cruise, with safety drivers in Phoenix, Arizona, as it aims for a limited return to city streets later this year.
- HSBC Holdings Plc: Selling its business in Argentina to Grupo Financiero Galicia for $550 million, in line with its strategy to streamline operations and focus on Asia.
- Norwegian Cruise Line Holdings Ltd: Placed its largest ship order to date, involving eight new vessels scheduled for delivery between 2026 and 2036, reflecting optimism about future growth in the cruise industry.
- Southwest Gas Holdings Inc: Announced plans for an initial public offering (IPO) by its Centuri Holdings unit, seeking a valuation of up to $1.8 billion in the U.S. market.
- Tesla Inc: Settled a lawsuit related to a fatal 2018 car crash involving its Autopilot feature, on the eve of the trial, without disclosing the terms of the settlement.
