September 29, 2022

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By Jeffrey Smith and Anna Beatrice Bartolo

Investing.com – U.S. bond yields rose to their highest in three years ahead of potentially dramatic U.S. inflation numbers due out on Tuesday. Elon Musk changes his mind about joining Twitter’s board of directors and continues to criticize the social media company on his own platform.

French President Emmanuel Macron is preparing for a run-off against right-wing leader Marine Le Pen in the French presidential election, and Russia is easing capital controls, as Western sanctions prove more bark than bite.

Here’s what you need to know about the financial markets on Monday, April 11th.

Check it out: Investing.com’s Economic Calendar

1. US bond yields have reached high levels

US bond yields hit 2.75% for the first time since March 2019, at the start of a week likely to be dominated by data from, which is set to post another peak in 40 years.

At 8:07 am, US 10-year bonds rose 1.69% to 2.761%, while the more sensitive US bond yields rose 2.37% to 2.5797%.

Ahead of Tuesday’s data, there will be another round of Fed speeches: Regional heads of state and {{ecl-37||) are expected to speak Charles Evans}} throughout the day, as well as the governor of the capital.

The phenomenon of global inflation appeared overnight: and from China, although it did not reach its peak. Both China and China also grew stronger than expected in March. However, the central bank has yet to announce monetary policy easing all this week.

2. US stocks are preparing to open lower

US stock markets are expected to open lower later on amid continued concerns about Increase bond yields And its ability to cause some nasty surprises in the upcoming first quarter earnings season.

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At 8:11 AM ET, 100 futures contracts were down 0.63%, while A and A were down 0.27% and 0.01%, respectively.

The market has come under renewed pressure over the past week as the need to factor in high discount rates in stock valuations has once again disproportionately affected technology stocks that have not yet generated positive cash flow for a few years.

The focus will likely be on stocks later, including the ADRs of Chinese electric car maker Nio (NYSE:), which said over the weekend it was suspending production due to disruptions related to… Covid-19 lockdowns. They are also raising the prices of their three SUV models. The focus will also be on JetBlue (NASDAQ :), which has scaled back its summer schedule over the weekend in an effort to reduce the risk of disruptions.

Elon Musk will not be joining the Twitter board. CEO Parag Agrawal said Saturday that Musk rejected his offer for a board seat, suggesting there is a lot of conflict between the board’s goals and those of Tesla (NASDAQ::) (SA:) CEO. Twitter (NYSE::) (SA 🙂 shares are down more than 4% in pre-market trading, after rising 25% last week in response to news that Musk has built a 9.2% stake.

It’s unclear how Musk intends to proceed now. He described his involvement as “negative” but has spent most of the past week and weekend tweeting about how the company can improve its services and finances. An “active” investor is usually required to disclose more about their intentions through the usual regulatory channels. Musk – whose activity on the site has pissed him off the SEC more than once – has yet to do so.

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Check: US stock prices in real time on Wall Street Premarket

3. Rising oil revenues

The National Petroleum Agency (ANP) expects oil revenues to rise by 58.9% in 2022, to reach R$118.7 billion, due to the high price of a barrel on the international market. In January of this year alone, the forecast is about R$77 billion. In 2021, states, municipalities, and union revenues increased by 65% ​​on oil.

The states and municipalities of Rio de Janeiro, São Paulo, and Espírito Santo tend to benefit the most from the growth of oil revenues. However, professionals consulted by O Globo point out that this amount should be invested in long-term public health, education and environmental policies, as required by law, because of elections, when mayors and governors tend to spend more on the public machine to boost parties’ election campaigns.

As of 8:14 am, US crude futures are down 3.91% to $94.42, while futures are down 3.43% to $99.25.

Check: Quote from major global commodities

4. Macron is ready for the second round against Le Pen

President Emmanuel Macron led the first round of the French presidential election by four points over the right-wing populist leader Marine Le Pen.

The two will now face off in a second round of voting in two weeks’ time. Macron won a similar showdown 66% to 34% in 2017, but faces an even fiercer race this time around after Le Pen scored big goals in a campaign focused on the cost-of-living crisis and Macron’s unpopular plans to raise the bar. age.

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Bond markets in the eurozone and the euro itself saw a slight recovery, realizing that Le Pen had the biggest boost. Polls show it has narrowed the gap with Macron from more than 30% a month ago to less than 4% now.

Elsewhere in Europe, Germany was noted for taking fiscal support measures for its energy companies, while data showed the British economy slowed to a crawl in February.

5. Russia is relaxing its capital controls

Russia’s central bank has eased some of its tougher capital controls in another sign that its economy is adjusting to sanctions imposed by the United States, the European Union, the United Kingdom, Japan and Australia.

The central bank will raise the 12% surcharge on foreign exchange transactions that it had imposed at the end of February to prevent people from buying dollars and euros.

The official rate of the ruble fell by about 2.6% in response, but its indicative value was disrupted by sanctions, which still restrict free buying and selling of the currency. Elsewhere, the French bank Société Générale (PA 🙂 effectively returned its Russian unit Rosbank to its original owner, the oligarch Vladimir Potanin.