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Raindrops hang from a Wall Street sign outside the New York Stock Exchange in Manhattan in New York City, New York, U.S., October 26, 2020. REUTERS/Mike Segar/Photo By archive

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A look at the next day in the markets of Julien Ponthus.

It’s the last trading day of April and it seems that, despite the fireworks on Wall Street last night, this month brings gloomy omens for things to come, particularly with Asian equities on the verge of their worst month since COVID-19. March 2020 shock.

It’s even worse for the Nasdaq (.NDX), which is on track for its biggest one-month loss since the 2008 financial crisis.

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Despite all the hype around Meta Platforms (FB.O) earnings, Amazon.com (AMZN.O) delivered a disappointing quarter, while Apple (AAPL.O) had bad news to share with the market after of the bell, despite record profits. and sales read more

COVID-19 lockdowns hamper production and demand in China and the iPhone maker warned that the war in Ukraine, which prompted Apple to halt sales in Russia, would cut sales deeper in the fiscal third quarter.

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

And it’s hard to ignore the whiff of dot-com bubble-flavored “irrational exuberance” surrounding Elon Musk’s $44 billion cash deal for Twitter, particularly as social media reported revenue and ad sales that fell short of expectations. . read more

There have also been a lot of disconcerting movements in the market lately. The dollar enjoyed its best month in a decade and hit its highest level in 20 years, but data showed the US economy unexpectedly contracted in the first quarter. read more

Of course, with investors betting on a 50 basis point interest rate hike at the Federal Reserve meeting next week, aggressive US monetary tightening remains the driving force in financial markets in the foreseeable future.

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

Perhaps also unsurprising that the euro, weakened by the Russian gas standoff, also felt the power of the dollar and fell to a five-year low of $1.04 even as German 10-year bond yields rose 10 basis points with German inflation reaching its highest level. level in more than 40 years.

Key developments that should provide more direction to the markets on Friday:

-French economic growth stagnates in the first quarter, forecasts are not met read more

-BASF confirms earnings guidance but points to risks

-Danske Bank’s first quarter net profit below expectations read more

-Annual general meeting of shareholders of the Swiss National Bank

-China will intensify political support for a stable economy Read more

GDP
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Information from Julien Ponthus

Our standards: the Thomson Reuters Trust Principles.

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