Black Monday, Putin’s speech, dollars

© Reuters

by Jeffrey Smith – The Fed’s rate hike cycle is doing well for the dollar, now the highest in 20 years, and lower for other sectors. Putin celebrated in Moscow a “Victory Day” parade in World War II. Meanwhile, stock exchanges continued a May marked by sell orders, with eurozone investor sentiment at multi-year lows. On Wall Street, one of the biggest IPOs of the past year has turned into one of the biggest “breakouts” in recent years. Here are the top stories for Monday:

1. Highest in 20 years

The dollar reached a 20-year high after Friday’s NFP data failed to allay concerns about interest rates and their impact on the global economy.

Which measures the greenback against a basket of six major currencies, recorded as high as 104.205 before correcting some gains. The dollar also rose 0.8% against the offshore yuan, after Chinese trade data for March showed annual export growth slowed to 3.9% from more than 14% in February, weighed down by the shutdown of the country’s largest port in Shanghai.

Cryptocurrencies are also suffering, with annual lows approaching -50% from last November’s record, while .

2. “Victory Day” without victory

Russian President Vladimir Putin celebrated “Victory Day” to commemorate the end of World War II in 1945, without declaring new victories in Ukraine and an all-out assault on the country as some observers had predicted.

Putin’s long-awaited speech was notable for what it said more than its substance: neither full military mobilization, nor new strategic goals, nor nuclear threats against the West that had become an essential component of the Russian state were mentioned. the television.

Meanwhile, Brussels is still unable to find a box on the ban on Russia, as countries in the European Economic Community oppose the EU Commission’s proposal to ban crude oil despite changes made last weekend that provide for an exemption. From ban until 2024 for Hungary, Slovakia and the Czech Republic.

3. Away from Rivian (NASDAQ:)

Two of the first investors in Rivian Cars They are shrinking their stake in the electric car company through massive selling. CNBC reported Sunday that Ford (NYSE:) will sell 8 million shares (of a total of 102 million held) in the product through an accelerated record-building process managed by Goldman Sachs (NYSE: NYSE:).

Meanwhile, JPMorgan (NYSE:) will proceed to sell 12/13 million shares in Rivian on behalf of another major shareholder, possibly Amazon (NASDAQ:), although the identity of the shareholder has not yet been revealed.

The stock will sell for $26.90 per share, a discount of approximately 6.5% from Friday’s close. Both investment banks were lead managers of Rivian’s initial public offering last year, when they put the same stock at $78, a massive devaluation that hit the first quarter hard for Ford and Amazon.

4. The bags are still in trouble

Awaiting US inflation data on Wednesday, futures point to another session in the red for Wall Street listings, with {{8874 | Future 100}} at -320 points, down 540 points, and {{8839| 500 future }} down 80 points . +7% is now at a level of over 33 points.

Black Monday is also in Europe, losing 1.9%, Marks -1.7%, Cac losing 2.1%, while losing 2.2%.

5. The collapse of investor confidence in the European Union

The eurozone investor confidence index fell to -22.6 in May from -18.0 in April, the lowest since June 2020 and down for the third consecutive month. Instead, the future expectations index fell to -34.0 from -29.8 in April, the third consecutive month of decline and the lowest since December 2008.

“The global economy is in the throes of a perfect storm,” Manfred Hubner, managing director of Syntex, said in a statement. “The effects of the conflict in Ukraine are becoming increasingly visible on the economy as well,” he said, adding that the recession in the eurozone “is becoming more visible.”

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