Weekly Market Overview:
May 5-9
May 5-9
The US stock market closed Monday's trading lower. At closing time on the New York Stock Exchange, the Dow Jones index fell 0.24%, the S&P 500 index fell 0.64%, and the NASDAQ Composite index fell 0.74%. Treasury 10-year yields increased 2 basis points to 4.34%. Gold futures rose 2.44% to $3322. Crude oil Brent futures fell 1.73% to $60.23. Of the 11 S&P sectors 10 ended in the red. Energy was the weakest, while Consumer Defensive topped the gainers.
Ford pulls guidance, warns it will take $1.5 billion hit from Trump's tariffs. Ford Motor suspended its annual guidance on Monday because of uncertainty around U.S. President Donald Trump's tariffs, saying the levies would cost the company about $1.5 billion in adjusted earnings before interest and taxes.
Wall Street Banks Said to Steer Clear of Chery’s $1.5 Billion Hong Kong IPO. Chery Automobile Co.’s planned Hong Kong initial public offering, which people familiar say could raise about $1.5 billion, is being led by an all-Chinese bank roster after others decided not to participate. JPMorgan Chase & Co. is no longer on the deal after being chosen by Chery in late 2024 to work on the offering.
Cboe Clear Europe adds crypto ETPs to its clearing service. The company says that ETPs that are eligible for clearing must meet specific criteria based on market capitalisation, as well as underlying asset availability. This includes product types such as Bitcoin, Ethereum, and Tether.
The Supreme Court has protected the rights of investors in the conversion of depositary receipts. The highest court sided with a holder of depositary receipts who was refused an exchange of securities by Raiffeisenbank. Russian depositories must inform applicants about deficiencies in documents for forced conversion of depositary receipts. Such a decision was made by the Supreme Court of the Russian Federation when considering another complaint by an investor who was refused an exchange of securities.
Kazakhstani ice cream mogul to build hospital in the Almaty region. The project, dubbed SLG-Hyundae, was officially established as SLG Hyundae Medical LLP, with South Korea’s Hyundae Hospital General Director Kim Boo-seop holding 51% of the shares and Shin’s sister, Veronika, owning 49%. Kim is the founder of the Hyundae clinic chain, which operates several hospitals with more than 1,000 beds in South Korea, as well as a clinic in Mongolia.
The US stock market closed Wednesday's trading higher. At closing time on the New York Stock Exchange, the Dow Jones index rose 0.70%, the S&P 500 index rose 0.43%, and the NASDAQ Composite index rose 0.27%. Treasury 10-year yields decreased 3 basis points to 4.28%. Gold futures fell 0.90% to $3392. Crude oil Brent futures fell 1.66% to $61.12. Of the 11 S&P sectors 2 ended in the red. Communication Services was the weakest, while Technology topped the gainers.
Morning Bid: Armed conflicts rage, but hopes emerge for a trade war thaw. The BoE is expected to continue its gradual pace of rate cuts that have come more slowly than those by the U.S. Federal Reserve, which stood pat yesterday in the face of inflation and recession fears. And equity futures in European and U.S. markets turned higher after Trump posted that he will hold a press conference today about a trade deal with a "BIG, AND HIGHLY RESPECTED, COUNTRY. THE FIRST OF MANY!!!."
Korea’s Forex Reserves Hit Five-Year Low on Pension Fund Swaps. South Korea’s foreign exchange reserves reached a five-year low to $404.67 billion at the end of April, partly attributable to the National Pension Service’s expanded swap agreements with the Bank of Korea. The reasons for the decline “include foreign exchange swap transactions with the National Pension Service and financial institutions’ loss of deposits due to the disappearance of the end-of-quarter effect,” according to a BOK statement issued Thursday.
Scandinavian countries are launching an offline payment system in case of cyber attacks. The technology involves the use of terminals that encrypt and store transaction data until the connection is restored. Finland, Sweden, Norway, Denmark and Estonia are developing an offline payment system for bank cards that will ensure critical payments in the event of loss of internet connection, including possible cyber attacks or acts of sabotage. The initiative is also related to the vulnerability of the existing payment infrastructure. In 2023, the largest bank in the region, Nordea, fell victim to an unprecedented cyber attack that restricted customers' access to online accounts for several weeks.
ITS breaks trade volume growth streak but still outperforms AIX. The volume of securities traded on the International Trading System (ITS) in Astana fell by 27% in April to $955 million month-on-month (MoM), down from the previous month’s record of $1.31 billion, the platform said in a statement. Meanwhile, the AIX reported a 74% MoM increase to $86 million — still nearly 11 times lower than the ITS figure.
Conclusion
The US stock market had a mixed performance last week. On Monday, major indices closed lower, with the Dow Jones falling 0.24%, the S&P 500 down 0.64%, and the NASDAQ down 0.74%, while Wednesday saw a recovery, with the Dow rising 0.70% and the S&P 500 gaining 0.43%. Treasury yields increased slightly, and while gold futures rose on Monday, crude oil saw declines on both days.