A roundup of Tuesday’s stock market results from across the region
🗽 On Wall Street:
U.S. stock markets rebounded after Monday’s losses and with upward movements involving practically all sectors, amid the good mood that most companies’ quarterly reports are leaving.
The S&P 500 gained 1.61%, while the Nasdaq Composite (CCMPDL) rose 2.15%, and the Dow Jones Industrials advanced 1.45%.
Traders are moving between expectations of what will happen with the Federal Reserve’s monetary policy and the ongoing corporate reporting season, which has so far yielded good news.
Before the market closed, 79% of the companies that have reported had posted positive surprises, data compiled by Bloomberg show.
“As we navigate the early stages of the first-quarter earnings season, we continue to see the kind of resilience we often associate with stock markets, particularly U.S. stock markets,” said Craig Erlam, senior market analyst at Oanda.
However, there are storm clouds in the outlook after St. Louis Fed President James Bullard said interest rate hikes of up to 75 basis points should not be ruled out.
An increase of that magnitude has not been seen since 1994. Optimism regarding quarterly results was clouded by the performance of Netflix (NFLX), which announced a loss of 200,000 customers in the first quarter, the first time it has lost subscribers since 2011.
The company also projects it will lose another two million customers in second quarter, which would lead to its worst year since it has been a public company.
🔑 The Day’s Key Events:
Las reuniones de primavera boreal de los organismos internacionales que arrancaron esta semana están cargadas de pesimismo, a medida que el costo de vida se vuelve cada vez más alto y el mundo enfrenta el impacto humanitario y económico de la invasión rusa a Ucrania.
Los nuevos pronósticos de crecimiento están a tono con esa realidad: a los cálculos revelados ayer por el Banco Mundial -que recortó su estimación en 2022 al 3,2%- se sumaron los del Fondo Monetario Internacional (FMI), que estiman un crecimiento mucho menor en comparación con sus cifras de principios de año.
Las perspectivas reveladas hoy muestran que los riesgos económicos han aumentado, mientras la guerra en el este de Europa se convierte en un obstáculo para el crecimiento y un impulso para la inflación.América Latina y el Caribe tendrá un comportamiento por debajo del promedio global, a pesar de que su pronóstico para este año creció ligeramente 0,1 puntos porcentuales.
El organismo con sede en Washington considera que la región se expandirá un modesto 2,5% en 2022 y en 2023, por debajo de las economías avanzadas e incluso menos que el promedio que registró entre 2004 y 2013.
The meetings of international organizations that started this week are full of pessimism, as the cost of living rises and the world faces the humanitarian and economic impact of the Russian invasion of Ukraine.
New growth forecasts are in tune with that reality: estimates revealed Monday by the World Bank - which cut its 2022 estimate to 3.2% - were joined by those of the International Monetary Fund (IMF), which estimate much lower growth compared to its figures from earlier in the year.
The outlook revealed Tuesday shows that economic risks have increased, while the war in Eastern Europe becomes an obstacle for growth and is driving inflation. Latin America and the Caribbean will perform below the global average, even though its forecast for this year grew slightly, by 0.1 percentage points.
The Washington-based agency believes that the region will expand by a modest 2.5% in 2022 and 2023, below advanced economies and even less than the average it recorded between 2004 and 2013.
👑 The Leader:
The Mexican stock market reversed Monday’s losses and the S&P BMV/IPC (MEXBOL) ended the session up 0.91%, with the raw materials, industrial and real estate sectors performing the best.
During the day, it was reported that the country’s economic activity index increased by 0.83% in March.
For the first quarter of the year, the indicator estimates a cumulative growth of 1.46%, a figure that would represent the largest quarterly advance since the same period in 2001.
“March’s figures stand out for showing a sustained change in trend, as it is already five months of consecutive monthly growth and with variations higher than the average of 2021 (...). With the result for the third month of the year, the economy would leave behind the disappointment that prevailed during the second half of 2021″, highlighted an analysis by Monex.
📉 A Bad Day:
Peru’s stock market was the worst performer in Latin America, on a day in which only three indices in the region showed losses, following the falls of Brazil’s Ibovespa (IBOV) and Colombia’s Colcap.
The S&P BVL/Peru (SPBLPGPT) accumulated five consecutive sessions of declines. In Tuesday’s session, the materials sector dragged down the losses that occurred.
Panoro Minerals (PML) and Minas de Buenaventura (BVN) shares were among the worst performers of the day. The fall in mining companies occurred on the same day in which the stoppage in Peru’s mines increased the problems of world copper supply.
The Ibovespa closed with a fall of 0.55%, with the poor performance of Vale (VALE3) shares weighing on the market’s performance.
🍝 For the Dinner Table Debate:
The meeting of G-20 finance leaders this week will include Russian representatives and aims to send a clear message that Russia is fully responsible for the global economic consequences of the war against Ukraine, a German government official said, quoted by Bloomberg News.
After a lengthy discussion, agreement was reached that Russia shouldn’t be able to dictate the format of the G-20 or the agenda of the next meeting of finance ministers and central bank governors, the German official said, speaking on condition of anonymity.
This week, the United States further backed away from suggestions that its officials would boycott G-20 meetings if Russian counterparts attended. U.S. Treasury Secretary Janet Yellen will avoid some of the group’s meetings in Washington, but will attend others focused on the economic consequences of Russia’s invasion of Ukraine.
This week’s meeting is the first G-20 meeting since Russia’s invasion of Ukraine.
