Market Outlook 🚀 - Tesla down nearly 10%

Canada to pay Volkswagen over $13B in subsidies for new Gigafactory

Inside.com Part of   Network April 21, 2023

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The Numbers: The price of sugar rose to an 11-year high this week, and analysts forecast more increases. Source: Sugar comes from two sources: sugarcane and beets. Last year cane sugar accounted for 80% of all sugar production. Producers: Sugar production is concentrated in a few regions. In 2022, ~70% of all sugar was produced in Brazil, India, the EU, China, the U.S., Thailand, Russia, Mexico, Pakistan, and Australia.

US Markets Stocks fell yesterday, following the negative sentiment caused by Tesla's disappointing earnings on Wednesday evening.  All three major indexes are expected to close in the red this week. The Dow Jones and the S&P 500 are on track for their worst week this month.  Tesla shares dropped ~10% on Thursday, after the company reported a 24% slump in net income for Q1. Tech shares also struggled, with Apple, Microsoft, Meta, and Nvidia all down on the day.  The current 10 Year U.S. Treasury yield is set at 3.53750%.  Dow Jones  33,786.62 -0.33% S&P 500  4,129.79 -0.60% Nasdaq  12,059.56 -0.80% Russell 2000 1,789.70 -0.54% *Stock Market data as of the last closing bell. Data received directly from the reference indexes through ICE Data Services. Do you not understand any of these figures? Check out our explainer.

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Canadian Markets The Canadian government signed a deal to secure Volkswagen's first gigafactory outside of Europe.  Canada has agreed to give the German carmaker up to $13B in subsidies over the next decade.  The agreement illustrates how countries might be forced to make big concessions to compete with the U.S., where President Joe Biden last year unveiled generous subsidies for cleantech companies. The contract is conditional on the Inflation Reduction Act remaining in force in the U.S. If a new president were to cut the incentive schemes introduced by the legislation, Canada's subsidies would decline proportionately.  TSX  20,630.69 -0.24% *Canadian stock prices are as of the last close. Data received directly from the references indexes through ICE Data Services

European Markets Stocks in Europe fell slightly on Thursday, impacted by the negative momentum overnight in the U.S.  The Stoxx 600 lost 0.2%, led by a 3.7% decline in automotive stocks.  Renault and Volvo fell 8% and 6%, respectively.  Telecoms stocks were also down, with Nokia falling almost 8%.  Euro STOXX 50  4,383.40 -0.23% UK (FTSE 100)  7,902.61 0.05% Germany (DAX)  15,795.97 -0.62% France (CAC 40) 7,538.71 -0.14% *European stock prices are as of 7 am ET. Data received directly from the reference indexes through ICE Data Services.

Asian Markets Asian stocks were mixed on Thursday as investors reacted to earnings in the U.S.  Taiwan Semiconductor Manufacturing Company reported a 2.1% increase in year-over-year net profit.  Chinese regulators reportedly plan to reform the country's bonds market to limit volatility.  Oppenheimer's research shows that Apple is making significant investments in India to reduce its reliance on China.  S&P Asia 50 4,665.90 -1.30% Japan (Nikkei 225) 28,657.57 0.18% South Korea (KOSPI) 2,563.11 -0.46% China (Hang Seng) 20,396.97 0.14% India (SENSEX) 59,632.35 0.11% *Asian stock prices are as of 7 am ET. Data received directly from the reference indexes through ICE Data Services.

Commodities Oil prices fell Friday morning as investors are increasingly concerned about the possibility of a recession.  Brent and U.S. West Texas Intermediate crude lost 2.4% on Thursday.  Last week, implied gasoline demand in the U.S. fell 3.9% year over year.  U.S. gasoline inventories rose by 1.3 million barrels last week.  Oil (NYSEARCA:OIL) 29.49 -0.74% Gold (NYSEARCA:GLD) 186.09 0.39% Silver (NYSEARCA:SLV) 23.17 -0.26% Corn (NYSEARCA:CORN) 24.87 -1.15% Lumber (NASDAQ:WOOD) 71.67 -0.99% *Commodity prices are as of 7 am ET. Data from MarketWatch. To understand why investors track the prices of these commodities, click here.

Currency Exchange Rates The U.S. Dollar fell on Thursday as new economic data suggested that the country could be headed toward a recession.  Last month, home sales in the U.S. fell 2.4% year over year.  Jobless claims in the U.S. rose by 5,000 to 245,000 last week, but are still low compared to previous years.  Investors are pricing in a 90% chance of a 25-basis-point interest rate hike in May.  Investors are also pricing in a 69% chance that the Fed will leave rates unchanged in June.  UK(GBP) £0.80 -0.13% Europe (EURO) €0.91 0.06% Canada (Canadian Dollar) $1.35 0.66% Japan (Yen) ¥134.25 0.16% *Exchange rates as of 7 am ET. Data from Morningstar Financial Research. To understand why we track these currencies and the differences between them, click here.

Liam Gill is a lawyer who raised $250k with just an idea and turned it into a $35M tech startup.  He now teaches entrepreneurs how to Pitch, Negotiate and Strategize so they can do the same.  Let's Connect Editor Eduardo Garcia is a writer and editor based in New York. He is the author of "Things You Can Do," an illustrated book about climate action. Bylines in The New York Times, The Guardian, Slate, Scientific American, and others. In one of his previous lives, Eduardo worked as a Reuters correspondent in Latin America for nearly a decade.

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