STOCK MARKET SNAPSHOT FOR 26/4/2022
A look at the day ahead in markets from Sujata Rao.
Okay, a collective sigh of relief that France re-elected the pro-business Emmanuel Macron rather than vote in far-right opponent Marine Le Pen. But markets are far from jubilant.
That’s because the French election is so last week. Instead it’s been superceded by fears for the world economy. After the recent IMF meetings, where central bankers vied to deliver hawkish messages, concerns are that policy screws will be tightened to an extent that growth judders to a halt.
It’s all sparking a dash for safety, with 10-year Treasury yields down more than 8 basis points .
European shares, including in France, are opening 1% or so lower, while futures point to similar weakness on Wall Street. World stocks are in fact headed for their worst month since March 2020.
ECB sources meanwhile told Reuters interest rates could rise as early as July .
And the losses are rippling out across emerging markets and commodities — oil is below $100 a barrel while copper, that popular growth barometer, has hit one-month lows.
Key developments that should provide more direction to markets on Monday:
-Philips Q1 core profit plunges a third on supply chain problems
-Spain’s BBVA ups offer for Turkish Garanti by 23%
-UK CBI business optimism Q2
-Kazakhstan and Kyrgyzstan Central Banks
-U.S. earnings: Coca Cola, Pepsico, Whirlpool,
-European earnings: Roche, Philips, Evolution Gaming, Vivendi, JD Sports, Taylor Wimpey, Santander, Orange, Associated British Foods, Novartis, Alfa Laval
Source: Reuters (Reporting by Sujata Rao; editing by Dhara Ranasinghe)