After the sharp declines seen yesterday, European markets have regained some of their balance today, with the travel and leisure sector looking to find some base after recent declines, while healthcare stocks have outperformed, due to a positive reading of the American medical sector. device company Intuitive Surgical, which propelled Smith & Nephew shares to two-month highs.
Airlines had big falls yesterday, with long-haul carriers the hardest hit, fearing that extended shutdowns in Asian markets could cause delays in the rapid resumption of long-haul travel. These concerns were confirmed after IATA announced it was revising its estimates of airline industry losses for 2021 to $ 48 billion, from $ 38 billion, likely due to delays in resuming international travel. . Perhaps this helps explain why British Airways owner IAG has found much harder to earn today compared to easyJet.
Rising infection rates in Asia, and India and Japan in particular, raise fears that any global economic recovery faces significant delays in a region where vaccination rates are well below those in Europe. and the United States. It also suggests that the Olympics may not happen, with infection rates in Tokyo and Osaka raising concerns over the need for authorities to put in place a state of emergency.
Heineken shares hit a 13-month high after first quarter beer shipments were better than expected. More encouragingly, market conditions are expected to improve in the second half of the year, with pubs and restaurants reopening for the summer season.
Shares of Kering, held by Gucci, are also posting decent gains after the company reported much better than expected first-quarter sales, driven by a rebound in Chinese demand. This has been a familiar trend over the past week or so, with LVMH posting similarly bullish numbers last week.
Hugo Boss shares are also higher in case of vague discussions about a possible takeover, while reports have revealed that Frasers Group has acquired a 15% stake in the company through derivatives, which seems to be Mike Ashley’s favorite way to gain exposure to a business.
Just Eat Takeaway shares are significantly weaker after Uber announced the launch of Eats in Germany, one of Just Eats’ most lucrative markets.
Bunzl shares also fell despite a 1.4% increase in first-quarter revenue, as strong sales of Covid-related products helped offset weaker revenue from other product lines. Management kept the guidance for the full year unchanged, while also saying that the second half should see a weaker performance, compared to the first half.
Juventus shares plunged more than 12% as the fallout from the European Super League collapse saw any gains of the past few days wipe out altogether, with stocks sitting just above this year’s lows, while in the US, Manchester United shares have stabilized. It’s hard not to underestimate the damage this has caused to football in general, and in particular to the owners who, according to John Henry of Fenway Sports Group, owners of Liverpool FC, have rather said laughable that they were acting in the best interests of the club. It comes across as the wandering nonsense that we all know it is.
These people have been in charge of their respective clubs long enough to know how fans in England perceive their allegiances, and to pretend otherwise is dishonest. Juventus President Andrea Agnelli even went so far as to say that the UK government and Boris Johnson forced the Super League to collapse over fears it would undermine Brexit, which is frankly an even more laughable claim. . It was all about the money outright, with the reference to “legacy fans” a telltale sign, and simply serving to underscore the ridiculous nature of the various excuses that are now being offered by everyone.
US markets started today’s session on a strong footing, but have since rebounded strongly from the losses of the past two days, with the main focus being on a series of earnings announcements, which have been better overall. provided that.
Medical device company Intuitive Surgical made decent gains after beating revenue and profits, as did Edwards Lifesciences.
Netflix shares hit a two-month high yesterday, but fell sharply after the company’s first-quarter subscriber count fell below expectations, while its second-quarter estimates were also slashed significantly. While disappointing, the revenue and profit numbers were pretty decent, both beating expectations, while the second quarter revenue forecast was estimated to be above what we saw in the first quarter of 7.16 billions of dollars.
Apple’s latest product event saw the launch of a new iPad Pro, iPad Mini, new iMac as well as AirTags, which are Bluetooth tracking devices that can be attached to other objects. then located using Find my App from another Apple device. . Markets do not appear to be impressed with equities slightly weaker, although investors may well have their eyes on the second quarter earnings announcement next week.
Manchester United shares appear to have stabilized following yesterday’s losses and the news of Ed Woodward’s departure.
United Airlines was one of the biggest drops yesterday after posting losses of $ 1.4 billion, but the day is slightly better today as investors focused on its domestic travel outlook, as well as the rest of the area. Verizon’s last quarter saw revenue rise 4% to $ 32.9 billion, while profits also beat expectations.
It was a fairly lackluster day for the pound, with the latest CPI data for March showing inflationary pressures to be subdued, with fuel and clothing prices offsetting declines elsewhere.
The Canadian dollar rose after the Bank of Canada left rates unchanged, but cut its bond purchase program from C $ 1 billion to C $ 3 billion per month. This slight tightening, if you can call it that, is fully justified by recent data which shows the job market is recovering, with the economy growing over 5% on the year. The US dollar is more or less flat over the day.
Crude oil prices have remained under pressure as the surge in coronavirus cases in India lowers expectations for future demand. This is especially important given that India is the third largest market for the use of oil and prolonged restrictions, alongside rising inventory levels, may well cap the rise in the near term.
The latest inventory data from the United States showed a surprise increase in inventories of 594,000, confusing expectations of a circulation of 3.7 million.
Gold prices continued to benefit from the relatively benign nature of US yields, hitting their highest levels since late February.
Copper prices also appear fairly resilient, and on track for its best close in nearly two months.