Daily Markets: Rebound in Oil Prices Weighs on Stocks

The big picture today

Asia-Pacific equity indices ended today’s session slightly positive with the exception of India Sensex which slipped 0.72%. Korea’s KOSPI was essentially flat at 0.05%, while Australia’s ASX All Ordinaries and Japan’s Nikkei rose 0.18% and 0.19%, respectively. The Shanghai stock exchange was closed again for the Qingming Festival, joined by stock markets in Taiwan, and markets in Hong Kong were closed to mark the country’s National Day. By midday, major European equity indices are down across the board, and US futures are pointing to a weak market open later this morning.

The combination of rising Treasury yields and rebounding oil prices is weighing on stocks this morning as investors continue to monitor the yield curve. As investors await the latest edition of the Federal Reserve meeting minutes scheduled for tomorrow afternoon, they will be digging through March data on the services economy for more notes on inflation and what what this could mean for the Fed’s next monetary policy meeting. Later today, the United Nations Security Council will meet to discuss Russia’s alleged war crimes in Bucha and President Volodymyr Zelensky will address the Council. At least for now, there seems little doubt that the duration of the Russian-Ukrainian war and related sanctions is set to shift from a near to medium-term headwind to the global economy as we enter the second quarter. .

Data download

International economy

Following the release of European Manufacturing PMI figures last Thursday, today saw the release of a number of final March Services PMI figures for the region. The March Services PMI for Germany (56.1) was adjusted up 1.1 points from the preliminary release, France (57.4) was flat while Italy ( 52.1) and Spain (53.4) were revised down slightly. Again, upward or downward revisions are indications of growth strength, but what to watch with the PMI numbers is if they break below 50, which indicates a contraction.

The final Eurozone services PMI for March was revised slightly higher to 55.6 and with this release the final composite PMI for March was calculated at 54.9 also revised slightly higher from the figure preliminary. The final UK services PMI for March was also released and printed at 62.6 revised up from the preliminary figure of 61. French MoM industrial production surprised on the downside posting a contraction of 0 .90% against estimates of 0.25% and the 1.80% previously announced.

Last night saw the release of Japan’s February growth in real household consumption (1.10%) and income (-0.10%), both of which were lower than previous readings. March’s services PMI was higher than February’s at 49.4, but still recorded a slight contraction.

Domestical economy

Shortly after U.S.-listed stocks begin trading, we’ll get a double-take on how the services economy fared in March thanks to the now-renamed S&P Global Services PMI and the Non-manufacturing ISM. The S&P Global services PMI in March is expected to remain unchanged at 58.9 while the ISM services index is expected to rise to 58.5 in March from 56.5 the previous month.


The S&P 500 rose 0.8% yesterday as money flowed back into growth stocks, fueling the day’s outperformance by the Nasdaq Composite which closed up 1.9%. The Dow Jones Industrial Average rose 0.3% in comparison, while the small-cap-laden Russell 2000 rose 0.2%. Including yesterday’s moves, here’s how the major market indicators stack up year-to-date:

  • Dow Jones Industrial Average: -3.9%
  • S&P 500: -3.9%
  • Nasdaq Composite: -7.1%
  • Russell 2000: -6.7%
  • Bitcoin (USD-BTC): -2.4%
  • Ether (ETH-USD): -6.7%

Stocks to Watch

Prior to the start of trading for stocks listed in the United States, Brands Acuity (AYI), Cognyte Software (CGNT), and Lindsay Corp. (NLN) should publish their latest quarterly results. Investors should also be on the lookout for those who pre-announced their March quarter results.

Consumer authentication company PopID and Visa (V) will launch facial verification payment acceptance in the Middle East region.

Thryv (THRY) Chairman and CEO Joe Walsh is expected to unveil his vision for the decade of small business automation and the future trajectory of SaaS revenue later today at the company’s Investor Day. The company is targeting SaaS revenue of $1 billion by 2027 and $4 billion by 2032 from $206-208 million in 2022.

Electric Lion (LEV) announced the receipt of an order for 50 all-electric LionC school buses from Autobus Campeau in Quebec, with deliveries to begin in Q1 2023.

Charging station (CHPT) shared Antara Capital will invest $300 million in the company through the purchase of convertible senior notes to support its growth initiatives.

Farfetch (FTCH) and Neiman Marcus Group announced a global strategic partnership and investment, including the expansion of Bergdorf Goodman’s e-commerce capabilities and reach.

Equinix (EQIX) acquired West African data center and connectivity solutions provider MainOne for an enterprise value of $320 million. This deal came after Alphabet (GOOGL) the Google subsidiary recently landed the first high-speed data cable in Togo, bringing high-speed internet access to that country and much of West Africa.

Changing Healthcare (CHNG) and healthcare services company Optum have agreed to extend their merger agreement through December 31, 2022.

Citi (C)SPAC’s largest underwriter last year, reportedly temporarily suspended underwriting initial public offerings for SPACs until companies can determine legal liabilities with new proposed SEC rules announced this week last.


Cloud software company Allvue Systems (ALVU) and cloud-based communications company Intermedia Cloud Communications (INTM) are expected to price their IPO offerings this week.

Infinite Group (IMCI) has applied to list its shares on Nasdaq alongside a $15 million initial public offering in part to fund its planned acquisition of cybersecurity company Pratum.

biotechnology company QSAM Biosciences (QSAM) plans to put its shares up for sale on the Nasdaq and hold a $12 million IPO offering to help fund the development of its bone cancer therapy CycloSam.

Readers who want to dig deeper into the schedule of upcoming IPOs should visit Nasdaq’s Latest and Upcoming IPOs page.

After today’s market close

Network technology (ARRY) and SMART Global (GHS) will release their quarterly results, but we will also be watching those who pre-announce their March quarter results. Those interested in learning more about which companies release their reports when head to the Nasdaq earnings calendar.

on the horizon

Wednesday 6 April

  • China: Markit/Caixin Services PMI – March
  • Germany: manufacturing orders and sales – February
  • United Kingdom: CIPS Construction PMI – March
  • Euro zone: Retail sales – February
  • US: Weekly MBA Mortgage Applications
  • United States: EIA Weekly Crude Oil Inventories
  • US: Federal Reserve FOMC Minutes

Thursday, April 7

  • Japan: leading index (preliminary) – February
  • Germany: Industrial production – February
  • United States: Initial and Continuing Weekly Unemployment Claims
  • United States: EIA Weekly Natural Gas Inventories
  • United States: consumer credit – February

friday april 8

  • China: new yuan loans and loan growth – March
  • United States: Wholesale inventories – February

Thought of the day

“Worrying is like paying a debt you don’t owe.” ~Mark Twain


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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