Here are the most important news, trends and analyzes that investors need to start their trading day:
1. Stock futures down at the beginning of the week
People walk along Wall Street near the New York Stock Exchange on March 08, 2022 in New York City.
Spencer Platt | Getty Images
U.S. stock futures were slightly lower on Monday morning as Wall Street looks to recover from a losing week. Technology-focused Nasdaq Composite saw its biggest fall last week, down nearly 3.9% as investors prepared to tighten more aggressive policy from the Federal Reserve. The S&P 500 slipped 1.27%, ending a three-week winning streak, while the Dow Jones Industrial Average fell 0.28%. The 30-stock Dow has now fallen two weeks in a row.
In this short trading week of the holiday season, investors will be able to get two basic facts about inflation. The consumer price index for March is scheduled to be released on Tuesday, a day after the producer price index will be released. The latest earnings season is about to begin, led by the major banks JPMorgan is ready to post the results on Wednesday, followed by others including Goldman Sachs on Thursday.
2. Bond yields continue to rise; Oil slide
Traders on the floor of the NYSE, March 25, 2022.
Bond yields ticked higher on Monday morning, 10-year Treasury yields rose 4 basis points to 2.76%. The 5-year and 30-year rates are reversed, which occurred in late March for the first time since 2006 and added to the risk of a possible recession. Bond yields, which go against the price, have risen over the past month as investors prepare for a more hawkish Fed policy.
Oil prices fell more than 4% on Monday, sending the US benchmark West Texas Intermediate crude futures below $ 94 a barrel. International benchmark Brent fell about 4.1% to about $ 98.50 a barrel. Crude prices have plummeted over the past two weeks after the United States and other countries announced plans to release oil from their strategic reserves in an effort to offset lost Russian supplies. In China, the coveted lockdown, which could weaken demand, has also weighed on oil prices.
3. Elon Musk is no longer joining the Twitter board
Elon Musk gestures while speaking at a press conference on February 10, 2022 at SpaceX’s Starbase facility near the village of Boca Chika in South Texas.
Jim Watson | AFP | Getty Images
Twitter shares fell in premarket trading on Monday after CEO Parag Agarwal announced in a tweet on Sunday night that Elon Musk would no longer be joining the social network’s board of directors. According to a securities filing released last week, Musk, CEO of Tesla and privately owned rocket company SpaceX has become Twitter’s largest private shareholder. The plan to hire Musk on Twitter’s board was followed by speculation about how the world’s richest man and frequent tweeter would influence the company.
Agarwal did not say whether Musk offered specific reasons for his opposition to becoming Twitter director. While Agarwal warned of “impending confusion”, the CEO said that Twitter would “be open” to the input of the mask.
4. China tops inflation estimates; The Covid crackdown has reached Guangzhou
All 11 districts of Guangzhou city started another round of mass covid exams late last week, when primary and secondary schools shifted to online education from Monday.
CostFoto | Future Publications | Getty Images
Inflation in China was much higher than expected in March, as the world’s second-largest economy experienced the worst wave of covid infection since the coronavirus epidemic began in early 2020. Major Chinese stock indices fell with Shenzhen on Monday. Component and Shanghai Composite are down about 3.7% and 2.6%, respectively.
Strict health restrictions are being imposed in Guangzhou, the capital of the production-heavy Guangdong province. The city has been shifting primary and secondary school classes to online education for at least a week, and residents are not being allowed to leave Guangzhou without a “specific requirement,” the Associated Press reported; To do this they must show a negative covid test within 48 hours.
According to Reuters, cowardly lockdowns in Shanghai, however, could be easier in certain residential areas without new cases in the two-week window. China’s most populous city is seeing a record new covid infection, but strict, week-long restrictions have led some residents to struggle to get adequate food and medicine.
5. Zelensky seeks military assistance to South Korea, says ‘war is not over’
Zelensky told South Korean lawmakers that about 300 hospitals had been destroyed in Ukraine.
Chung Sung-jun | AFP | Getty Images