Tesla Shares Boost U.S. Markets; Mexico Posts LatAm’s Only Gains

Oil prices recede but both references remain above $100 as China faces further lockdowns

Concesionario Tesla
March 28, 2022 | 07:55 PM

A roundup of Monday’s stock market results from across the region

🗽 On Wall Street:

A rebound in technology and large-capitalization-company stocks allowed the main U.S. indices to close the session with gains on Monday, despite the fact that they were in the red in the morning.

The S&P 500 closed with a 0.71% increase, while the Dow Jones Industrials gained 0.27% to complete three consecutive sessions higher, and the Nasdaq Composite (CCMPDL) gained 1.31%.

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“I think at the end of the day, the U.S. economy remains strong. Consumer demand remains strong. We’re seeing continued improvement in the labor market. All of those indicators seem to imply that there is a solid foundation in terms of the U.S. economy,” Marc LoPresti, managing director of The Strategic Funds, told Bloomberg News.

Tesla’s (TSLA) shares were among the biggest climbers, after the electric car manufacturer announced that it plans to seek shareholder approval for a move that would allow another stock split.

With the news, the company added about $84 billion to its market value, more than the entire market capitalization of Ford Motor Company (F).

🔑 The Day’s Key Movements:

Oil prices retreated, although both benchmarks remain above $100 per barrel, as China faces further lockdowns amid a new wave of Covid-19.

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Shanghai authorities said they will block off half the city in shifts to conduct mass testing for the virus. Prices remained low even after OPEC+ signaled it is likely to maintain plans for a modest supply increase when it meets next Thursday.

The China shut-ins cast doubt on oil’s prospects, as the Asian giant demands 15 million barrels a day. “The magnitude of the selloff reflects fears that the Covid lockdowns in China could spread, significantly impacting demand at a time when the oil market is trying to find alternatives to Russian crude supplies,” Andy Lipow, president of Lipow Oil Associates, told Bloomberg News.

In the crypto world, Bitcoin (XBT) had a positive day and at 16:52, New York time, it was trading above $47,869.9 after rising 4.5%. With this performance, it managed to erase the losses it recorded during 2022 and touched its highest level of this year.

🥇 The Leader:

The Mexican stock market was the only one among its Latin American peers to register gains, in line with the recovery shown by U.S. stocks.

The S&P BMV/IPC (MEXBOL) closed up 0.45%, driven by the healthcare, real estate and consumer staples sectors.

Specifically, shares of Genomma Lab (LABB), Controladora Vuela Cia (VOLARA) and Becle SAB (CUERVO*) were among the best performers.

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“Despite the complicated start to the year, it is worth noting that the S&P/BMV IPC has been resilient relative to other markets, but for the moment we reiterate our level of 58,000 points. We would expect that with a better scenario after two years of pandemic, various industries will maintain a year of recovery and greater growth,” according to a Monex analysis published during the day.

📉 A Bad Day:

Argentina’s Merval index (MERVAL) had the worst performance in Latin America on Monday.

The stock market index closed with a drop of 1.45%, with the shares of Grupo Financiero Galicia (GGAL), Transportadora Gas del Sur (TGSU2) and Banco Bbva Argentina (BBAR) among the worst performers.

Shares of the majority state-owned YPF (YPFD) fell by 1.67%, also among the worst performers of the day, at a time when a gasoline shortage is emerging in the country, and managers of service stations assure that national production is insufficient, pointing the finger at oil companies for not importing enough to supply the domestic market.

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Brazil’s Ibovespa (IBOV) closed with a loss of 0.29%.

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The move follows what was seen abroad, with U.S. stock markets retreating earlier in the day amid falling oil prices and concerns that inflation could dampen growth in economic activity.

🍝 For the Dinner Table Debate:

Russian oligarch and former owner of England’s Chelsea FC, Roman Abramovich and two Ukrainian peace negotiators reportedly experienced symptoms of poisoning after a meeting in Kyiv, capital of Ukraine.

The alleged attack reportedly occurred in early March. All of the men have since recovered, and people familiar with the matter reportedly blame the attack on Russian hardliners.

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The fact came to light in an article published in the Wall Street Journal by Yaroslav Trofimov and Max Colchester. “After the meeting in the Ukrainian capital, Abramovich, who has traveled between Moscow, Lviv and other negotiating locations, as well as at least two senior members of the Ukrainian team, developed symptoms that included temporary blindness, and peeling skin on their faces and hands,” the report stated.

Western experts investigating the incident say it is difficult to determine whether the symptoms were caused by a chemical or biological agent, or by some kind of electromagnetic radiation attack.