By Geoffrey Smith and Ana Beatriz Bartolo
Investing.com – The index hit a 20-year high as global risk aversion rose after Friday’s employment report. China’s export growth slows in April, when the port of Shanghai was closed by Covid-19. Still, things could be worse. You could be Vladimir Putin, holding a Victory Parade while his armed forces are still fighting to subdue Ukraine after 10 weeks of fighting.
Here’s what you need to know about the financial markets on Monday, May 9th.
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1. Dollar hits 20-year high after jobs report fails to allay rate fears
The dollar continued to rally after the April jobs report, released on Friday, did nothing to assuage concerns over US highers or fears of what they will do to the world economy.
The , which tracks the dollar against a basket of six developed market currencies, hit a high of 104.205 before cutting its gains to trade at 103.860 at 8:09 am, a 0.16% gain on the day.
The dollar also gained 0.8% against offshore after China’s trade data for March showed annual export growth slowed to just 3.9% from more than 14% in February, hampered by the lockdown caused by the Covid at the country’s largest port in Shanghai. The dollar also hit a record high against the Indian rupee.
Digital currencies also suffered, with the 3.3% falling to test its year low, while the 4.2% tumbled.
2. Possible rise in fuel in Brazil
The expectation for Petrobras (SA:) to readjust the price of diesel at refineries is increasing. On Friday, 06, the lag of the values practiced by the state-owned company in relation to quotations on the international market was almost 20%.
The readjustment would reduce the chances of shortages in the country and would facilitate the purchase of goods abroad by private and smaller companies.
The rise in prices would come amid a delicate situation, with the company trying to face criticism from President Jair Bolsonaro. Last Thursday, 05, when Petrobras announced a R$ 44.56 billion in 1Q22, the president harshly criticized the result and on Saturday, 07, said that “nobody can take it anymore” fuel readjustments.
Premarket, the EWZ (NYSE:) ETF was down 1.72% to $30.80.
3. American stock market
The US stock market is poised for another round of heavy selling at the opening, with news of the Rivian bloc’s sales an uneasy reminder of how radically investors are reassessing growth prospects, interest rates and, consequently, valuation. of the actions.
At 8:13 am, 100 futures were down 2.37%, while the A and A futures were down 1.92% and 1.57%, respectively.
The swing season is starting to end, but a number of important updates are still to come. Coty (NYSE:) (SA:) raised its outlook after a strong first quarter. THE Tyson Foods (NYSE:) will have something to say about the outlook for beef prices, while Duke Energy (SA:) (SA:) and Exelon Corporation (NASDAQ:) (SA:) may offer more information on the rising risk of electricity this summer. Mall owner Simon Property and International Flavors & Fragrances Inc (NYSE:) (SA:) report their post-closing results.
CHECK: US stock quotes
4. Victory Day without victory
Russian President Vladimir Putin held his usual Victory Day parade to commemorate the end of World War II, but without being able to proclaim further victories in Ukraine.
Putin’s eagerly awaited speech was most notable for what it lacked rather than what it contained – there was no mention of the full mobilization that defense chiefs would have pushed, neither for any new strategic goals nor for the nuclear threats against the West, which now are a daily news on Russian state television.
Over the weekend, Ukrainian forces reportedly hit another Russian warship, the frigate Admiral Makarov, with anti-ship missiles. Meanwhile, hundreds of Ukrainian soldiers continue to defend the Azovstal steelworks, their last stronghold in the besieged city of Mariupol.
Elsewhere, top EU diplomat Josep Borrell has suggested confiscating Russia’s frozen foreign exchange reserves to help pay for Ukraine’s reconstruction.
SEE: Quotes of the main commodities
5. Oil drops on Chinese trade data as Hungary locks in EU embargo
Efforts to tie a European embargo on Russian imports continue to be hampered by Hungary, which is still pushing for a five-year grace period. This is encouraging others, like Slovakia and Bulgaria, to push for their own exclusions.
Russian Oil Minister Alexander Novak was quoted by Russian news agencies earlier as saying he expects the country’s oil production to increase this month after sanctions severely disrupted shipments in April.
U.S. crude futures were down 2.24% at 8:18 a.m. to $107.31 a barrel amid a broad risk move across global markets, driven by Chinese trade data. Oil futures fell 2.13% at $110.00 a barrel.