Selloffs in US stocks and government bonds, stock market news and geopolitics

Latest stock market news

• Yesterday there was a wave of selling off American assets - stocks, government bonds and the US dollar fell by 1-2%.
After the morning growth, oil prices returned (dropped) to their starting point.
Bitcoin during volatile trading in the morning updated its historical maximum and is trading just below $111 thousand.
Everything is calm in the morning. In Japan, the sell-off of government bonds has stopped. For how long.

• Markets have seen a sharp sell-off in Treasuries on concerns about the US budget, while in Europe the next test will be how companies cope with an uncertain trade environment. Manufacturing and services sector surveys for May will be in focus on Thursday, with forecasts suggesting that business activity in the eurozone and Germany was broadly stable compared with the previous month.

• European earnings so far show corporate health is better than initially expected, with stocks rising on a temporary suspension of U.S. tariffs and signs that China, a key customer for European companies, is seeking to revive consumption. That has helped the pan-European STOXX 600 outperform the S&P 500 and Nasdaq this year. Germany’s export-focused benchmark closed at a record high on Wednesday and is the world’s best-performing major stock market. But the path ahead will depend on whether European Union leaders can agree on trade deals with the U.S. and the impact of Germany’s long-awaited fiscal stimulus package.

• European futures started the day subdued as risk appetite was clouded by lingering concerns over how the US will be able to finance its ballooning fiscal debt as investors flee US assets.

• President Donald Trump's massive tax and spending bill cleared a major procedural hurdle in the Republican-controlled House of Representatives, setting it up for a vote that could come within hours. Investors were also unsettled by a lackluster Treasury auction that reinforced the "sell America" ​​message, weighing not only on the dollar but also on Wall Street, with traders already jittery after Moody's downgraded the U.S. credit rating to AAA last week.

• The yield on 30-year Treasury notes remained above 5% after hitting an 18-month high earlier in Asian trading. However, not all assets stood the test. Bitcoin prices hit a new record high as sentiment around digital assets improved. The world's most valuable cryptocurrency has surged nearly 50% since the early April sell-off, breaking the $100,000 mark.

• Gold prices are also recovering from recent declines, with investors viewing the precious metal as a safe haven asset during times of uncertainty.

• "Forget the Fed - the real driver of this bullrun may be the US Treasury," - Hayes/

• The US has been demanding that BYD disclose its ownership structure, data storage policies and government contracts since 2018 due to concerns about the presence of BYD electric buses in US transit systems, - Bloomberg/

• The Guardian has exposed a scheme in which UnitedHealth (UNH, -6%) paid nursing homes bonuses to minimise hospitalisations.
Residents could be denied urgent treatment, and one case resulted in brain damage. Leaked documents show staff were financially incentivised to keep the rate of “hospitalisations per thousand” low.

• Options traders are the most bullish on Tesla (TSLA, -3%) since November 2023 /
The Put/Call Ratio has dropped to a level that last coincided with TSLA shares rising 44% and hitting a new all-time high in 4 weeks.

• Palantir (PLTR, -4%) and Divergent team up to accelerate manufacturing.
Palantir will integrate Divergent Technologies' DAPS manufacturing platform to quickly manufacture critical parts using AI, helping close supply gaps.

• Apple (AAPL, -2%) will officially unveil iOS 19 on June 9. Amid Google I/O, Apple announced the date for the presentation of iOS 19 and iPadOS 19 — they will debut during WWDC 2025, which will take place from June 9 to 13. The main presentation will take place on June 9 at 20:00 Kyiv time.
The biggest changes in recent years are expected, including a redesign in the style of visionOS. An updated Siri may also be mentioned, but there are no guarantees.

• Tether printed another $2 billion in liquidity - Arkham.

• If Bitcoin BTC sets a new all-time high, $2.75 billion in shorts will be liquidated - analysts.

• Hong Kong Approves Stablecoin Bill
- The Hong Kong Parliament has formally passed a law that introduces licensing for stablecoin issuers.
- The new system will regulate the issuance of stablecoins pegged to fiat currencies (including HKD and USD).

• BlackRock is now the second largest owner of BTC. The first is “Satoshi”.

• Marks & Spencer has warned of $403 million in losses due to a sophisticated cyber attack
that has disrupted online sales across its fashion, home and beauty segments,
with problems expected to last until at least July.

• SoftBank (SFTBF) is raising $15 billion in loans from Mizuho, ​​SMBC and JPMorgan to invest in U.S. artificial intelligence infrastructure,
part of an ambitious $500 billion plan.

• Target (TGT, -5%) reported weak quarterly results. Adjusted EPS was $1.30, down $0.35 from the forecast, on revenue of $23.8 billion, down $550 million.
Sales fell except for digital, which rose 4.7% thanks to delivery services.

• Palo Alto Networks (PANW, -7%) aims to reach $15 billion in annual revenue by 2030 with its AI-powered cybersecurity platform.

• ARR from new generation products increased by 34% y/y.

• Rio Tinto (RIO, -0.4%) has received approval for its $2.5 billion Rincon lithium project in Argentina,
bolstering the country's strategy as a global player in lithium mining.

• CFSB Bancorp (CFSB) rose 67% on news it will merge with Hometown Financial Group.
The deal is valued at $44 million and will give the new bank $3.3 billion in assets.

• Ford (F, -2%) will give part of its EV plant in Kentucky to Nissan,
allowing the Japanese automaker to bypass some tariffs on imported components.

• Medtronic (MDT, -2%) plans to spin off its diabetes business into a separate company with 8,000 employees in California
to focus on more profitable areas.

• Uber (UBER, -3%) is launching an AI network to automate logistics. Colgate-Palmolive (CL) is already using it to optimize supply chains.

• Viasat (VSAT, -5%) reported a loss of $0.02 per share but beat revenue estimates of $1.15 billion. Moderate growth is expected in FY2026.

• Baidu (BIDU, -4%) had a strong quarter. $2.55 EPS, $4.47 billion in revenue, AI Cloud revenue up 40%.

• Micron (MU, -2%) announced a $350 million convertible note issue to increase funding flexibility.

• FinVolution (FINV, -0.5%) is growing in the Chinese fintech market.
Increased revenue to $479.7 million (+9.4% y/y), EPS $0.39.

• Wix.com (WIX, -16%) had a strong quarter
with EPS of $1.69, revenue of $437.7 million, and creative tool subscriptions up 11%.

• Weibo (WB, +4%) beat expectations with EPS of $0.45 and revenue of $396.9 million
. The number of active users is 591 million.

• WeRide (WRD, +21%) announced a $100 million buyback and expanded partnership with Uber in the robotaxi sector.

• Volvo Cars (VOLAF) and Google (GOOG) expand Android Automotive partnership
- Volvo will be the lead partner in introducing new features.

• Apple (AAPL) has brought Fortnite back to the App Store after a five-year absence due to a dispute with Epic Games.
This could change the economics of the App Store.

• Johnson & Johnson (JNJ, -0.3%) and Genmab (GMAB, +1%) received FDA approval for Darzalex Faspro,
raising its chances of expanding its use in multiple myeloma.

• OpenAI buys iPhone developer Jony Ive's startup for $6.5 billion.
The ChatGPT maker is buying io to build physical AI products beyond screen apps and sees opportunities beyond traditional hardware. "Computers now see, think, and understand," Ive and Altman wrote.
AAPL shares fell 2.3% on the news.

• Walmart to lay off 1,500 people to cut costs. / It's a drop in the bucket - the company employs 2.1 million people.
But the first one left. Will this trickle become a river of large-scale layoffs in the US economy? - If so, it increases the chances of a recession. We're watching.

• SNOW shares are up 7% this morning after the report.
The software company, which provides data storage solutions to businesses, beat expectations with its results and guidance on Wednesday.

• URBN shares are up 17% this morning after the report.
The clothing retailer beat estimates, helped by higher sales at its struggling namesake stores and, for now, no concerns about tariffs.

Key events likely to impact markets on Thursday:
- Business activity surveys from the eurozone, UK and US, plus weekly jobless claims in the US.
- Remarks from European Central Bank policymakers including Philip Lane and Luis de Guindos are expected.
- Bank of England Deputy Governor Sarah Breeden and Chief Economist Hugh Pill are due to speak later in the day.
- Comments from the US Federal Reserve's Thomas Barkin are expected.

Current Fundamental Reviews

• EU prepares trade proposal for US to give talks impetus - BBG.

• Merz wants to offer duty-free shopping again.

• Simion, who lost in Romania, accused France of interfering in the elections, Durov said he was ready to confirm this.
The founder of Telegram said he was ready to come to Romania and testify, but the French authorities are not letting him go.

• The presidents of the United States and South Africa met in the White House.
A television was brought into the Oval Office and a video was played in front of the South African president, in which Ramaphosa's government calls for genocide of white farmers.
Ramaphosa responded: We can solve these "public problems" if you give us more money through trade agreements and investment.

• China is seriously concerned about the American “Golden Dome” missile defense project and calls on Washington to abandon its development, says Foreign Ministry spokesman Mao Ning.
“This project increases the risks of the militarization of outer space and an arms race.

• The IMF called on the United States to reduce its budget deficit and public debt.

• MEPs have called for Hungary to be stripped of all EU funds.
"Anyone who completely ignores EU values ​​does not deserve a single euro from the EU budget."

• Taliban's status as a terrorist organization in the US is under review amid the release of American detainees - Rubio
Japan's exports slowed to their worst level in 7 months in April.

• As U.S. tariffs rise, Japan's economy threatens recession - Bloomberg.
Japanese Prime Minister Ishiba:
"One way to reduce the trade surplus with the U.S. is to sell Japanese cars made in the United States."

• G7 countries are discussing the possibility of introducing joint tariffs on low-cost Chinese goods
amid the continued growth of exports of goods through online platforms such as Temu and Shein.

• China threatens companies that oppose Huawei chips with sanctions.
However, the Chinese government has not specified a specific punishment for violation.

• Fresh UK inflation data.
Core CPI y/y = 3.8% (exp/ 3.6%/ forecast/ 3.4%).
CPI y/y = 3.5% (exp/ 3.3%/ forecast/ 2.6%).