Fixed Income Market Overview
The U.S. Treasury note yield experienced a marginal increase amid investor scrutiny of Federal Reserve comments, aiming to decipher future interest rate trajectories. While the 10-year Treasury yield rose slightly to 4.481%, the 2-year Treasury yield saw a minor decline to 4.826%. Investors analyzed Fed officials’ remarks, aligning with the central bank’s recent monetary policy stance, notably regarding the possibility of rate cuts. Minneapolis Fed President Neel Kashkari advocated for a cautious approach, foreseeing a prolonged period of rate stability until clarity emerges on disinflation trends, while Richmond Fed President Tom Barkin emphasized the importance of confidence in inflation returning to its 2% target before any rate adjustments. Market focus remains on forthcoming Fed communications and key economic indicators throughout the week, including jobless claims and consumer sentiment data.
AstraZeneca to withdraw Covid vaccine worldwide, citing a drop in demand.
Monzo Nabs a $5.2 Billion Valuation After Raising More Money.
German commercial property prices drop 9.6% in Q1, data shows.
Oil prices fall more than 1% as market softens on rising inventories.
U.S. revokes some export licenses to sell chips to Huawei in a bid to curb China’s tech power.
Major Indicies
| Symbol | Price | Change | %Change |
|---|---|---|---|
| DJIA | 38,884.26 | 172.13 | 0.44%↑ |
| NASDAQ | 18,085.01 | -6.44 | -0.04%↓ |
| SNP 500 | 5,187.67 | -0.03 | 0.00%↓ |
| NIKKEI | 38,202.37 | -632.73 | -1.63%↓ |
| VIX | 13.00 | -0.23 | -1.74%↓ |
| HIS | 18,313.86 | -165.51 | -0.90%↓ |
Bonds
| Name | Yeild | CHG |
|---|---|---|
| US 10-YR | 4.50% | 0.04 |
| US 30-YR | 4.64% | 0.04 |
| US 5-YR | 4.51% | 0.03 |
| JPN 10-YR | 0.88% | 0.01 |
| UK 10-YR | 4.14% | 0.01 |
Futures & Commodities
| Name | Last | Change | %Change |
|---|---|---|---|
| WTI CRUDE | 78.99 | 0.61 | 0.78%↑ |
| NAT GAS | 2.187 | -0.020 | -0.91%↓ |
| GOLD | 2,322.30 | -1.90 | -0.08%↓ |
| SILVER | 27.60 | 0.06 | 0.21%↑ |
| COPPER | 4.543 | -0.063 | -1.37%↓ |
Equity Market Overview
Shopify
Shopify exceeded Wall Street’s expectations for Q1 earnings and sales but provided a pessimistic outlook for the current quarter, causing a 19% drop in its shares. Q1 adjusted earnings per share were 20 cents compared to the expected 17 cents, with revenue reaching $1.86 billion versus an anticipated $1.85 billion. The company anticipates a decrease in gross margins for Q2 due to the sale of its logistics business last May. Shopify expects second-quarter revenue to grow in the highteens percentage range, a slowdown from previous periods, projecting “low-to-mid-twenties” growth year-over-year, adjusting for the divestiture. Despite reporting a net loss of $273 million, gross merchandise volume surged 23% to $60.9 billion, surpassing consensus estimates.
Siemens Energy AG
Siemens Energy’s shares surged up to 13% after raising its yearly forecast and announcing a CEO change at its wind turbine unit, Siemens Gamesa. Jochen Eickholt will step down, succeeded by Vinod Philip, amid restructuring efforts. Siemens Energy CEO Christian Bruch praised Eickholt’s groundwork for reorganization. Siemens Gamesa initiated restructuring and strategic development steps to improve operating margins. Strong demand for power grid equipment and wind business stabilization prompted Siemens to revise its full-year forecast, expecting revenue growth of 10- 12% and a profit margin of -1% to +1%. Siemens Energy reported a net income of 108 million euros for the last quarter and cited “stronger growth and positive cash development.”
Toyota Motor Corp
Toyota Motor forecasts a 20% profit decline for the current financial year despite impressive fourth-quarter earnings, reaching 5.35 trillion yen, marking the first time a Japanese company surpassed 5 trillion yen. The automaker credits its success to a weaker yen and increased demand for petrolelectric hybrids over electric vehicles, reflecting its “multi-pathway” strategy. Toyota plans to invest 1.7 trillion yen in growth areas like artificial intelligence and software while prioritizing investments to protect the supply chain. Challenges persist, notably in China, where local manufacturers are outpacing Toyota in EV production. Despite this, Toyota remains committed to its EV strategy, recently unveiling two battery EVs for the Chinese market in partnership with Tencent.
