Global Courant
Cocoa futures hit highest level in nearly 7 years
Cocoa Futures (SEP) reached a high of $3,096 per ton. The commodity traded at its highest level since August 19, 2016 during Tuesday’s trading session, when cocoa traded as high as $3,120.
Many experts say climate change is partly responsible. Some forecasts show that the temperature in Ivory Coast will rise by 3.8 degrees by 2050, drying out soil and plants. Almost 90% of cocoa land in Ivory Coast and Ghana could be unsuitable for cultivation, according to estimates.
Hershey announced it was raising the prices of all its products in February 2022 due to rising ingredient costs.
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Cocoa future
Cathie Wood adds more than $20 million in Coinbase shares to her ARK Innovation ETF
Cathie Wood from Ark Invest added her Coin base held Tuesday, unfazed by the Securities and Exchange Commission’s charges against the crypto exchange.
Wood picked up 329,773 shares of Coinbase for her flagship ARK Innovation ETF in the previous session when the stock plummeted more than 12%. She also added 53,885 shares Next generation ARK Internet ETF as well as another 35,666 shares for Ark Fintech Innovation ETF. Combined, these purchases were worth more than $21.6 million based on Coinbase’s closing price of $51.61.
Coinbase shares gained more than 3% during premarket trading on Wednesday.
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Jeffrey Gundlach sees greater chance of recession
Jeffrey Gundlach, CEO of DoubleLine Capital, said on Tuesday that the US is increasingly likely to slide into a recession.
The well-known fixed income investor pointed out that the US tops the Conference Board’s index of 10 economic indicators, saying it looks “absolutely full of recession”.
“It’s pretty clear that we look like we’re on the verge of a recession soon,” Gundlach said during a webcast for DoubleLine investors.
— Yun Li
According to the trader, signs are emerging that market leadership is broadening
Tom Essaye of The Sevens Report said Tuesday’s session showed signs of broader market leadership as the small-cap Russell 2000 index rose more than 2%.
“The ‘baton’ is being passed from mega-cap ‘AI’ names to cyclical sectors,” Essaye said in a note to clients. will outperform: RSP (equal-weight S&P 500), IWM (Russell 2000 ETF), industrials (XLI), materials (XLB) and, if you like volatility and like risk/reward, financials (XLF) and energy ( XLE).
The large-cap S&P 500 closed Tuesday at its highest level since August and is up more than 10% year to date. However, many on Wall Street are concerned that just a few tech-related names are turning that on its head.
— Fred Imbert
Treasury yields are falling slightly as investors weigh expectations for the economy and Fed policy
US Treasury yields fell slightly on Wednesday as investors considered the outlook for the economy and Federal Reserve interest rates ahead of the central bank’s next policy meeting on June 13-14.
Mixed messages from central bank officials and strong economic data have left investors wondering whether the Fed will pause or continue its rate hike campaign.
At 4:38 a.m. ET, the proceeds on the 10 year treasury traded more than a basis point lower at 3.6832%. The 2 years treasury the return fell by more than one basis point to 4.5103%.
Japanese stocks plummet, reversing gains from previous sessions
Share prices in Japan plummeted Wednesday afternoon as investors traded ahead of special reference prices to be set at the end of the week.
The Nikkei fell sharply by more than 1.8% and the Topix fell by 1.34% – with the latter seeing declines led by health care, industrials and technology stocks.
Shares of Sony led gains and fell 1.95%, followed by Tokyo Electron, Keyence Corp and Daikin Industries.
The reverse in gains after Japanese stocks hit a new three-decade high in earlier sessions. The Japanese yen strengthened 0.2% to 139.36 against the US dollar.
– Jihy Lee
China’s exports plunge more than expected
Chinese exports fell more than expected in May, government data shows.
Exports fell 7.5% year-on-year in US dollar terms, beating forecasts of 0.4% in a Reuters poll. Meanwhile, imports fell 4.5% year-on-year, slightly above the expected 8% decline.
The trade surplus exceeded expectations at $65.81 billion.
The onshore Chinese yuan weakened and last traded at 7.1190 against the US dollar.
– Jihy Lee
The Australian economy grew by 2.3% in the first quarter, the lowest growth in 18 months.
Australia’s gross domestic product in the first quarter grew at 2.3% year-on-year, slightly below analysts’ expectations.
This was the lowest growth rate in 18 months since the country emerged from a Covid-19 lockdown in September 2021.
Economists polled by Reuters forecast growth of 2.4%, compared to growth of 2.7% in the fourth quarter of 2022.
On a quarterly basis, GDP grew by 0.2%, compared to the 0.3% expected in the Reuters poll.
— Lim Hui Jie
European equity markets open mixed
European equities opened mixed on Wednesday, but sentiment remains generally subdued and markets lack direction.
The pan-European Stoxx index rose 0.1% at market open before rapidly sinking into negative territory, with sectors experiencing a mix of small gains and losses. Banking stocks saw marginal gains of 0.5%, followed by retail sales, which rose 0.4%. Healthcare stocks, chemicals and telecoms each fell 0.4%.
—Hannah Ward Glenton
Stitch Fix profits at smaller than expected loss
stitch fixThe stock added more than 4% in extended trading after reporting better-than-expected results for the past quarter, including a smaller-than-expected loss.
The online clothing and styling company with a total market cap of approximately $414 million posted a loss of 19 cents per share on $395 million in revenue. Analysts polled by Refinitiv had expected a loss of 30 cents per share on revenue totaling $389 million.
Stitch Fix said it will look into exiting the UK market in fiscal year 2024.
— Samantha Subin
Dave & Buster’s rises on profit
Dave & Busters the stock rose nearly 4% in extended trading after the entertainment company posted first-quarter revenue that beat Wall Street expectations.
The company reported earnings of $1.45 per share. That came in at 21 cents above the $1.24 analysts had expected, according to Refinitiv. Dave & Buster’s reported $597 million in revenue for the period, slightly short of the $602 million expected.
— Samantha Subin
