Global Market Overview

Fixed Income Market Overview

U.S. Treasury yields experienced a decline as investors analyzed Federal Reserve policy prospects in light of recent economic indicators and central bank statements. The 10-year Treasury yield decreased by nearly 6 basis points to 4.433%, while the 2-year yield rose by almost 2 basis points to 4.805%. Amid investor uncertainty about potential Fed rate cuts, Richmond Federal Reserve  President Tom Barkin suggested a cautious approach, aligning with the Fed’s recent guidance emphasizing patience regarding inflation. Barkin’s remarks followed a disappointing April jobs report, which showed weaker-than-expected payroll growth and an uptick in unemployment. Market attention remains focused on upcoming statements from Fed officials for further insights into  policy direction, alongside the release of consumer sentiment data later in the week.

Amazon’s AWS to double down on Singapore with additional $9 billion cloud investment.

Private equity firms circle Peloton for potential buyout.

Self-driving startup Wayve just raised $1 billion from Nvidia, SoftBank, Microsoft and more.

Oil falls as course of Gaza war remains uncertain, while cease-fire talks hang in the balance.

Disney says streaming is nearly break even, but shares sink 10% on soft guidance.

Major Indicies

Bonds

Futures & Commodities

Equity Market Overview

BP

BP reported a decline in first-quarter profit below analyst forecasts, attributing it to weaker fuel margins and lower oil and gas prices, resulting in an underlying replacement cost profit of $2.7  billion, compared to $3 billion the previous quarter and expectations of $2.9 billion. CEO Murray Auchincloss emphasized ongoing business simplification efforts aiming for $2 billion in cash cost savings by 2026. Despite lower profits compared to 2023, BP maintains its focus on shareholder returns, reaffirming a $3.5 billion share buyback for the first half of 2024. Analysts note the  market’s comparison with Shell’s recent earnings beat, yet view BP’s results as steady, with confidence in future earnings amidst commodity market fluctuations.

Saudi Aramco

Saudi Aramco reported a 14% year-on-year decrease in first-quarter net profit due to reduced oil prices and production, with net income at $27.3 billion compared to $31.9 billion a year earlier,  aligning with analyst projections. The company disclosed a decline in free cash flow to $22.8 billion and operating cash flow to $33.6 billion, attributing a $31 billion dividend payout to shareholders, including a $20.3 billion base dividend and a $10.8 billion performance linked dividend scheduled for the second quarter. Despite challenges, Aramco anticipates declaring total  dividends of $124.3 billion in 2024, emphasizing investments in downstream operations and gas exploration to bolster its global market position. Aramco’s President and CEO, Amin Nasser,  emphasized strategic advancements in expanding the gas business and downstream value chain, emphasizing sustained shareholder value delivery.

UBS

UBS rebounded to profitability in the first quarter, surpassing expectations with higher wealth management revenues, driving a 9% surge in shares amidst a more subdued performance in 2024 compared to the previous year’s remarkable growth. Lower expenses and synergies from the Credit Suisse acquisition contributed to a net profit of $1.8 billion, exceeding consensus forecasts. The ongoing integration with Credit Suisse aims for completion of mergers in the U.S. and Switzerland by the second and third quarters, respectively. Strong first-quarter  revenue of $12.74 billion, notably in Global Wealth Management, reflects a 28% increase, pleasing investors and suggesting ample capital reserves to address potential regulatory requirements.