A roundup of Monday’s stock market results from across the region
🗽 On Wall Street:
U.S. stock markets reversed the losses they had suffered during most of Monday’s session and the three main indices closed higher, on a day in which the markets were affected by the possibility that Covid-19 will continue to hit the Chinese economy.
Despite these concerns, the advance in technology stocks led the recovery in the stock markets as investors are attentive to the quarterly reports to be given by companies in the sector during the week.
The S&P 500 rose 0.57%, while the Nasdaq Composite (CCMPDL) advanced 1.29% and the Dow Jones Industrials also closed higher, advancing 0.70%.
At the end of the day, Twitter (TWTR) shares also rose after it was confirmed that the company will be purchased by billionaire Elon Musk. The transaction will be sealed at around $44 billion, or $54.20 per share, and once the purchase is completed, the company will be delisted from the stock exchange.
🔑 The Day’s Key Events:
Major commodities slumped on Monday with declines that sent oil trading below $100 as fears intensified that China’s strict policy to control Covid-19 will hurt demand for crude oil.
Uncertainty grew after Shanghai reported a record number of daily deaths over the weekend and rising cases in Beijing raised questions about whether quarantines could be implemented in the capital of the world’s biggest oil importer.
“Through an appropriately tough set of measures, we are confident and capable of controlling the outbreak,” municipal government spokesman Xu Hejian told a news briefing Monday night that the number of tests will be expanded to most of Beijing.
Analysts polled by Bloomberg News said last week they expect China’s fuel consumption to fall 20% in April from a year earlier.
That equates to a decline of 1.2 million barrels per day, the biggest hit to demand since the Wuhan shutdown more than two years ago.
📉 A Bad Day:
Although Monday ended in the red for the main Latin American stock markets, the Peruvian market showed the worst performance and had its largest percentage drop since July of last year.
The S&P BVL Peru fell by 4.36% on a day in which, on the one hand, the region’s stock markets were unable to feel the recovery of their peers in the United States and, on the other, were affected by the performance of raw materials.
In the Peruvian case, the news that the executive power sent to Congress a constitutional reform bill that seeks to promote a new Constitution for Peru through citizen consultation also weighed heavily.
The government’s premise is that this constitutional reform will be approved so that President Pedro Castillo can call a referendum on October 2, 2022, the day on which regional and municipal elections will be held at the national level.
“It has been quite a strong impact, because it is quite risky to predict possible changes. In theory, a perpetuity in power or change in the economic chapter would be at stake. It is difficult that it could be done because of the conformation of the Congress, but it is not yet known how it would be carried out,” César Romero, analyst at Renta4, told Bloomberg Línea.
He added that the uncertainty is also compounded by the possibility that a withdrawal of pension savings may be definitively approved, which, if it happens, would force private funds to liquidate some positions in the stock market.
In line with the rest of the region, Brazil’s Ibovespa (IBOV) also closed with losses.
In a bearish session for commodities such as oil and iron ore, the shares of companies linked to these sectors fell during the session. Mexico’s S&P/BMV IPC (MEXBOL) also closed lower.
🍝 For the Dinner Table Debate:
On Monday, Bloomberg Línea published its 50 Latin American Women of Impact list, which recognizes those leaders who are not only making an impact in the region, but also influencing the diverse areas in which they excel.
This list is not intended to be a ranking, but rather a way to recognize just a sample of the countless women who are changing the rules of the game in Latin America, especially on the road to recovery from the worst health, economic and social crisis in many decades.
For the selection, Bloomberg Línea’s editorial team emphasized three points: leadership; financial impact; and social influence of the 50 women chosen. All of these characteristics highlight the growing magnitude of women’s impact in fields such as finance, politics, business and the arts.
The women chosen are those who not only excel in their fields, but also go beyond them, generating impact on a social level; that is, creating jobs, fostering innovation and, above all, demonstrating that female leadership has gained more space year after year.