Overseas Headlines – May 9, 2022

United States:

U.S. Futures Signal Equity Plunge; Dollar Jumps: Markets Wrap

“Investors rushed to the safety of the U.S. dollar, while global stocks slid ever closer to a bear market, as the Federal Reserve’s aggressive tightening path and China’s Covid lockdowns worsened the outlook for economic growth. The greenback extended a two-year high, rising on Monday against all of its major peers. Futures on the S&P 500 and Nasdaq 100 gauge each tumbled by at least 2%, as the MSCI gauge of world stocks extended its retreat from a November peak to 16%. Oil declined more than 2.5% as concern over slowing demand in Asia outweighed a Group-of-Seven pledge to ban Russian oil.”



Europe Aims to Revive Trade Deals to Secure Allies

“The European Union aims to secure at least three stalled trade accords this year as the bloc looks to reinforce strategic alliances amid the turmoil caused by Russia’s invasion of Ukraine. The European Commission expects to conclude negotiations with Chile, New Zealand and Australia by the end of 2022 after progress had been stalled for months, according to an EU official familiar with the plans.”



Yuan Sinks 1% Against Dollar as Covid-Slowdown Concerns Worsen

“The yuan plunged more than 1% against the dollar in China on Monday, outpacing declines in most emerging-market currencies as concerns over the nation’s economic slowdown mount. The currency fell to a low of 6.7321, its weakest since Nov. 2020, after data showed export growth in April slowing to just 3.9% as Covid outbreaks bite. A lack of notable dollar selling from state-owned banks also weighed on sentiment, according to traders who asked not to be identified as they aren’t authorized to comment on the foreign-exchange market publicly.”




Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer(s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation(s) or view(s) expressed by that research analyst in this research report.

Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.