📰 Macro-News round-up
#MarketNews

💹 Bond yields continue to rise for both the United States and Germany, although possibly for different reasons respectively. The US Two-year rates increased somewhat to 4.9279%, up just 1.7 basis points from Tuesday. The 10Y yield increased by 4.1 basis points to 4.642%.

📈 US stocks concluded the day when they began after having a turbulent day on Wednesday. The S&P 500 and NASDAQ saw minimal movement during the day. The Chinese stock market had a better day. The CSI 300 gained 0.44% while the Hang Seng index increased by 2.21%.

💻 US Technology Sector: Meta’s stock price crashed over 17% in after-hours trading following the release of its Q1 earnings report. While Meta beat expectations on revenue and earnings, its revenue guidance for Q2 was weaker than expected, signalling slowing growth. Meta is investing heavily in AI and virtual reality as it shifts focus from the core Facebook platform, but this is weighing on profits in the near-term. Expenses are now forecast to be $96-99B vs the prior $94-99B estimate due to AI and infrastructure spending. Shares tumbled 17% after hours on the weaker-than-expected Q2 forecast and spending plans. Guidance from other tech giants reporting this week like Microsoft and Alphabet will also impact sector volatility. Keep a close eye on the NASDAQ100, as Meta’s weight could have a strong impact on it today after the market opens.

🏦 Tomorrow we will have the Bank of Japan’s interest rate decision, as well as its public statements. The Japanese currency is extremely weak, with an exchange rate not seen in over 30 years, USDJPY exceeding 155. Japan started the year with some improvement in the inflation rate. However, it quickly experienced a spike in inflation to 2.8% in February. March’s published inflation did not improve much, remaining at 2.7%. The problem is that this data necessarily pushes the Bank of Japan to continue with a repressive policy, eliminating negative interest rates.

🌍 Geopolitics: French socialist candidate Raphaël Glucksmann criticized President Emmanuel Macron’s approach to Russia as a “strategic failure”. Surprisingly, overcoming Macron’s warmongering tone, Glucksmann outlined his vision for the EU over the next 5 years at a rally, proposing a €200 billion sovereignty fund and €100 billion Ukraine war fund. He quotes Macron’s 2019 speech to ambassadors, in which he criticises Macron’s idea of a “united front” with Russia and the EU.

🇷🇺 Russia’s senior envoy to the US, speaking with Newsweek, issued a severe warning to Washington in response to President Joe Biden’s signing of a measure approving an additional $61 billion in combat aid for Ukraine. Russia’s ambassador to the US warned that by signing a $61 billion aid bill for Ukraine, America has “chosen the path of war” over Ukraine. Russia says the US military-industrial complex is profiting from new orders and arms are being used against civilians. The ambassador accused the US of an “all-out hybrid war” and trying to bring about Russia’s “inevitable collapse.”