In Europe, stocks have been positive since opening; S&P and Dow futures struggle to stay positive, but Nasdaq contracts surrender to Netflix crash
North American markets, whose tone had deteriorated since yesterday’s close, are struggling to position themselves in the positive field. But the results of Netflix, whose shares fell as much as 27% before the stock market opened, cooled the mood of investors in the early hours of the day. In Europe, however, the movement of purchases exceeds that of sales since the opening of the exchanges.
The contracts linked to the S&P and the Dow Jones were discreetly rising. On the other hand, Nasdaq futures remained in the red, pressured, above all, by Netflix, which lost subscribers for the first time since 2011. Bank of America and Nomura Asset Management that fears of inflation have gone too far. The US bank estimates that inflation will peak this quarter and will decline steadily in 2023.
The European indicator Stoxx 600 rose as investors kept an eye on corporate earnings and the second round of France’s presidential elections on Sunday. Today Danone SA and Heineken NV reported a seven-year increase in sales.
The real yield on 10-year US Treasuries turned positive for the first time since March 2020. This not only points to tighter funding conditions, but could also overshadow the attractiveness of investing in assets such as equities. Bond premiums remain one of the main drivers of investor sentiment.
On the microeconomic front, China maintained interest rates on its loans this morning for the third time in a row. The prime rate for one-year leases was maintained at 3.7%. Nine of 16 economists surveyed by Bloomberg expected a cut. The five-year rate, a benchmark for long-term loans including mortgages, was unchanged at 4.6%. The country has prioritized economic expansion, especially now that it has had to restrict mobility due to new Covid.
Among the macro data that came out this morning, a highlight for March industrial prices in Germany, which rose by no less than 30.9%. The figure exceeds the analysts’ estimate, which was +28.2% for the period, and the February reading (+25.9%). European Union car sales in March also disappointed: there was a 20.5% drop in 12 months and a 12.3% year-to-date drop.
US stocks bounced back from Monday’s losses, with the appreciation spanning virtually all sectors. Corporate balance sheets supported the good mood. As of yesterday’s closing, 79% of companies had surprised positively with their financial statements, according to a Bloomberg survey.