From Nasdaq, Inc.:

– Stock prices are now an effective conveyor of information topping actively managed assets, according to the latest Nasdaq roundup. Flows into exchange-traded funds and out of mutual funds continue to increase since September 2020, indicating passive investing rules Wall Street. Eyes are on geopolitical tensions and their impact on the recent market volatility. The Red Sea conflict is scrambling shipping, Europe is bearing the brunt. Low credit rating companies are rushing to reduce borrowing costs, slicing costs before the Federal Reserve makes an interest-rate change.
– The markets show mixed equities yet increasing financial ease. Tech outperforms, and Russell 2K small caps underperform the broader market, as prices for gold, oil, and treasury yields continue to climb. Also, ratings for some companies are improving, with companies focusing on quality rather than value or cheap stocks. Small companies have continued their underperformance in the markets, despite their potential for growth.
– In global macro news, IMF chief Kristalina Georgieva urged countries to shift fossil fuel subsidies to better fight climate change. The deadly Red Sea conflict has been causing serious shipping delays and mounting costs for Chinese exporters. Meanwhile, Japan’s core inflation has slowed for a second month, releasing some pressure off the Bank of Japan.
– A myriad of corporate news also dominated, including TSMC’s outlook driving a chip rally, private lenders opting to go public after valuations jumped, and large Chinese brokerages curbing short sales after a stock rout. There are interesting headlines in mergers and acquisition news, with reports on JG Summit expanding its solar business beyond the Gokongwei group, and predictions on the fate of the Zee-Sony merger. Oil falls as China’s economic recovery disappoints and the dollar strengthens. Red Sea dangers have delayed Saudi and Iraqi oil exports as ships divert, and there’s word that the IEA signals a substantial surplus of oil this year as demand growth slows.



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