Morning try: Something is off 2022-04-29 01:50:00


Raindrops hang on a Wall Street banner outside the New York Stock Exchange in Manhattan in New York City, New York, United States, October 26, 2020. REUTERS/Mike Segar/File Photo

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A look at the upcoming day in the markets from Julien Ponthus.

It’s the last day of trading in April, and it looks like despite the fireworks on Wall Street last night, this month holds bleak omens for what’s to come, particularly as Asian stocks head into their worst month since the COVID-19 March 2020 crash.

It’s worse for the NASDAQ index (.NDX) It is on track to post its biggest loss in a month since the 2008 financial crisis.

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To all the enthusiasm surrounding Meta Platforms earnings (FB.O) (AMZN.O) Disappointing quarter delivery while Apple (AAPL.O) There was tragic news to share with the market after the bell, despite record profits and sales. Read more

COVID-19 shutdowns are hampering production and demand in China, and the iPhone maker has warned that the war in Ukraine, which has halted Apple sales in Russia, will cut sales even deeper in the third quarter of the fiscal year.

Overall, the S&P 500 has had a terrible run so far in 2022, losing nearly 10% of its value, wiping out $4 trillion from market value.

And it’s hard to ignore the flavored whiff of “irrational exuberance” in the dotcom bubble surrounding Elon Musk’s $44 billion cash deal for Twitter, especially when social media reports that revenue and ad sales haven’t lived up to expectations. Read more

There have also been a lot of baffling moves in the market lately. The dollar enjoyed its best month in a decade and hit a 20-year high but data showed that the US economy unexpectedly contracted in the first quarter. Read more

Of course, with investors betting on a 50 basis point rate hike at next week’s Federal Reserve meeting, US monetary policy tightening remains the driving force across financial markets for the foreseeable future.

In light of this, it is not surprising that a warning from Japan’s Ministry of Finance failed to deter the dollar from rising above 130 yen for the first time since 2002.

Perhaps not surprisingly, the euro, weakened by the Russian gas crisis, also felt the strength of the dollar and fell to a five-year low of $1.04 even as German 10-year bond yields rose 10 basis points as German inflation hit an all-time high. level in more than 40 years.

Key developments that should provide further guidance to the markets on Friday:

French economic growth stalled in the first quarter, below expectations Read more

– BASF confirms earnings guidance but notes risks

Danske Bank Q1 net profit is less than expected Read more

The annual general meeting of shareholders of the Swiss National Bank

China intensifies its policy support for a stable economy Read more

Gross domestic product
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(Julian Ponthos reports)

Our criteria: Thomson Reuters Trust Principles.