Before the bell: SoftBank Group shares jump 12%

A wave of US banks reports earnings today, while software and broader technology stocks are back in demand.

Wall Street started the new trading week on a strong footing. The S&P 500 gained 1%, while the Nasdaq closed 1.2% higher. Goldman Sachs (-1.9%) lost ground despite better-than-expected results, even dropping as much as 4.7% during the morning session. Shares of SanDisk (+11.8%) stood out. Its upcoming inclusion in the Nasdaq 100 is unlikely to be the sole driver behind the rally. Microsoft (+3.6%) also attracted buyers again. Since its low on 27 March, the software giant has risen 7.8%, yet it still trades 30.6% below its peak on 28 October. Other names in the sector also moved sharply higher, including Oracle (+12.7%) and Adobe (+6.6%). In Europe, the standout performance came from the Budapest stock exchange (+5%). OTP Bank gained 8.4%, reflecting high expectations for a political shift in Hungary. Other European markets still have ground to make up, as a typical European stock declined 0.2% yesterday. Dividend payments cushioned the impact. Wereldhave Belgium went ex-dividend for 4.15 euro, offering shareholders a gross dividend yield of 7.3%. The share price dropped 0.6 euro less than the dividend amount, effectively resulting in a one-day gain of 1.1%.

In Asia, Tokyo is leading gains. The Topix rises 0.8%, while the Nikkei climbs 2.3%. Technology holding SoftBank Group delivers a strong performance, jumping 11.5%. Other Japanese tech stocks are also trading higher. In Hong Kong, gains are limited to 0.4%. Toy manufacturer Pop Mart (+6%) leads the Hang Seng Index, while Baidu (+3.9%) also performs well. Carmakers Li Auto (-2.7%) and BYD (-1.6%) lose ground. Earnings season kicks off today, with US banks in focus: JPMorgan Chase, Citigroup and Wells Fargo report results. BlackRock and Johnson & Johnson also publish figures.

The landlord should behave a bit better

Xior Student Housing publishes its annual report today. Behind the polished images of student residences, the company will attempt to attract investors. However, viewers of the Dutch consumer program Radar on NPO 2 may feel less inclined to join. Each year, hundreds of Dutch student tenants reportedly initiate legal proceedings against Xior over unexplained service charges. Even after rulings by the Rent Tribunal ordering reimbursements, some tenants have yet to receive their money. Dick Schotman made a weak impression during the broadcast. Positively, the program noted that many students were eventually repaid once Xior became aware of the media attention. That suggests no liquidity issues—but the company would do well to treat its customers more fairly.

No luxury, but it could be worse

LVMH released its first-quarter revenue update after market close yesterday. Sales grew by 1%. The US market performed well, while Asia declined—except for China, which surprised on the upside. In the Middle East, a strong start to the year was offset by a slowdown due to the Iran conflict. Since the figures were published after the Paris close, European investors have yet to react. However, LVMH shares, also traded in the US, fell 2.7% there. Bernard Arnault, who has already lost 45.6 billion dollar this year due to the stock’s decline, will likely see his wealth shrink further today—though he still has substantial reserves (around 162 billion dollar).

Did you know…

that a share of SoftBank Group traded at 6,828 yen on 29 October? The same share could be bought yesterday morning for 3,671 yen.

This article was translated from Dutch and was originally published on Spaarvarkens.be.