U.S. Stocks Mixed as China Relaxes Covid Restrictions

Barry Adams
28 Jun, 2022
New York City

Major market averages attempted to advance but the market sentiment was dented after the release of weak consumer confidence index was weaker than expected. 

The consumer confidence index declined to 98.7 in June from 103.2 in May, the Conference Board reported today.  

Stocks wavered in yesterday's trading as investors weighed future rate hike path and the prospects of the nature of economic slowdown. 

The S&P 500 index added 1.01% to 3,939.45 and the Nasdaq Composite index increased 0.8% to 11,618.86. 

The 10-year U.S. Treasury notes yield increased to 3.23%. 

Futures of crude oil increased $1.12 to $110.69 a barrel and natural gas added 9 cents to $6.59 a thermal unit. 

Energy stocks advanced following the rise in energy prices. 

Exxon Mobil, Chevron, Marathon Oil, and Schlumberger gained between 3% and 4%. 

Occidental Petroleum increased 4.7% to $61.65 after Warren Buffett controlled Berkshire Hathaway increased its stake to 16.4% according to a regulatory filing. 

Spirit Airlines increased 3.04% to $23.24 after JetBlue Airways revised its offer for carrier higher responding to Frontier's bid revision. 

JetBlue increased its breakup fee by $50 million to $400 million and a $2.50 a share cash payment upon the closing of the deal and monthly 10 cents a share pre-payment from January 2023 till the date of deal closure.  

Transportation and entertainment stocks gained after China eased inbound travel restrictions. 

Las Vegas Sands soared 7.8% to $35.81 and Wynn Resorts increased 7.8% to $62.21. 

Walt Disney & Company increased 3.2% to $99.71 after the company announced its Disneyland will reopen in Shanghai this week. 

 

European Markets Advanced on China Optimism and Lagarde Comments

European market indexes advanced after China loosened travel restrictions for international travelers.

The DAX index increased 0.97% to 13,314.60, the CAC-40 index gained 1.3% to 6,128.01, and the FTSE 100 index advanced 1.4% to 7,355.09. 

Crude oil advanced 1.8% and traded $117.10 a barrel as economic activities picked up in China after Shanghai and other regions in the country eased coronavirus mobility and social gathering restrictions. 

BP Plc and Shell Plc gained more than 3% after crude oil prices rebounded. 

Consumer confidence in Germany dropped to a new low and in France declined for the sixth month in a row. 

Consumer confidence forecast for July declined to 27.4 from the revised 26.2 in June and dropped to a record low since record keeping began in 1991, private market research group GfK said on Tuesday. 

Consumer sentiment in France declined for the sixth month in a row and dropped to a nine-month low. 

The index declined to 82 in June from 85 in May, the statistical office Insee reported on Tuesday in Paris. 

Volkswagen increased 1.7% to 141.06 euros after the company is nearing an agreement to sell its electric vehicle charging business to a unit of Siemens. The news was first reported by the Wall Street Journal. 

Petrofac Limited gained 3.0% to 122.70 pence after the energy services provider said revenues at its Asset Solutions division are running ahead of expectations on higher levels of new orders.  

Valeo SE gained 2.7% to 19.83 euros after the auto parts maker won a contract from BMW to provide an advanced driving assistance system for its electric vehicle scheduled to be released in 2025. 

Akzo Nobel declined 3.4% to 63.30 euros and the Dutch chemical company named Gregoire Poux-Guillaume as its new chief executive.

 

Asian Markets Close Higher After Volatile Trading 

Asian markets closed higher after searching for direction but managed to close higher. 

Market sentiment was positive following the advance in stocks in New York in overnight trading. 

Sentiment was also bolstered after China eased its mandatory quarantine period for international travelers from 3 weeks to 10 days. 

Moreover Beijing and Shanghai reported zero coronavirus cases for the first time since February.  

The Nikkei index closed up 0.7% to 27,049.47, the Hang Seng index advanced 0.85% to 22,418.97, and the Sensex index gained 0.03% to 53,177.45. 

Tokyo Electric Power jumped 7.2% to 552 yen after the government warned of tight power supply amid a heatwave  

Australian indexes closed at a two-week high after energy and mining companies led the gainers following a 1% rise in crude oil prices. 

The benchmark ASX 200 rose 0.86% to 6,763.60 while the broader All Ordinaries index added 0.87% to close at 6,953.40.

BHP Group, Rio Tinto, and Fortescue Metals advanced between 2% and 3%. 

UAE energy minister said that the country is producing at maximum capacity of 3.17 million barrels a day agreed with OPEC+ nations till the end of the year.