Major US indices ended slightly lower Tuesday, as a renewed focus on the future path of interest rates and the broader economy hurt tech shares even as attention shifted away from the travails of the banking sector.  The Dow slid 0.1%, while the S&P 500 and Nasdaq 100 lost nearly 0.2% and 0.4%, respectively.  Meantime, European equity markets closed little changed after a volatile session.  Banks were under the spotlight again after reports that French authorities had searched offices of several large banks, including Societe Generale, BNP Paribas and HSBC on suspicion of money laundering and fiscal fraud. 

Summary as at 29.03.2023 

  • Most Asian shares rose on Wednesday as regulators further downplayed fears of a banking crisis, while the Hang Seng index rose sharply as investors cheered a major restructuring in e-commerce giant Alibaba. Shares in Australia and Japan also gained, while mainland China and South Korean shares fluctuated. 
  • European shares are poised to edge higher in line with US equity futures as investors remain focused on central-bank policy and the health of the financial sector. 
  • Oil prices rose this morning, extending gains into a third straight session as disruptions in Kurdish crude shipments and a potentially large draw in US inventories pointed to tighter supply in the near term.  Data from the American Petroleum Insitute showed that US oil inventories unexpectedly fell by nearly 6.1 million last week – their sharpest drop since mid-2022. 
  • The monthly Consumer Price Index (CPI) indicator in Australia rose 6.8% in the year to February, easing from a 7.4% gain in the year to January and below the market consensus of a 7.1% rise.  This was the second straight month of lower annual inflation and the softest pace since last June.   The monthly CPI indicator, excluding volatile items, dropped to 6.9% in February from 7.5 in January. 
  • Alibaba Group Holding announced yesterday it will restructure into six units that will be able to pursue independent fundraising and initial public offerings.  The company said it will reorganise into business groups focused on cloud intelligence, local services, logistics, digital media and entertainment, and commerce, each with its own chief executives and boards.  In executing the biggest overhaul in its history, Alibaba manages to address two objectives – appeasing both a government distrustful of Big Tech and investors traumatised by a years-long regulatory crackdown. 
  • Citigroup warned early this week that share prices of European real estate companies could fall 50% as the sector faces higher debt-servicing costs and a slump in property valuation.   
  • Micron late Tuesday missed Wall Street’s low expectations for its fiscal second quarter as it struggles through a cyclical industry downturn in demand.  However, its shares rose in extended trading on comments that the worst might be over. 
  • Lululemon shares were up 13.1% in extended hours after reporting a 30% year-over-year increase in Q4 revenue and beating estimates.  The company reported adjusted earnings per share of $4.40 in Q4, beating a Street estimate of $4.26.  Lululemon is guiding for Q1 revenue to be in a range of $1.89 billion to $1.93 billion, compared to a Street estimate of $1.85 billion.