Before the bell: Volatility at its peak

Greenyard receives a takeover offer, Argenx gets FDA approval, and American companies are postponing orders from China.

All stocks in the Euro Stoxx 50 (+4.2%) closed in the green yesterday. Belgium’s benchmark index, the Bel20, also rose by 3.2%. On the other side of the Atlantic, investors were less upbeat. The tariffs imposed by Donald Trump on China continue to worry the markets. The White House announced that the import tax on various Chinese goods has already reached a staggering 145%. As a result, the S&P 500 and Nasdaq dropped by 3.5% and 4.3%, respectively. There was some good news out of the U.S. though: March inflation unexpectedly fell to 2.4%, down from 2.8% in February and below the 2.5% forecasted by economists. American consumers have lower gasoline prices to thank for that.

This morning in Asia, markets seem uncertain. Japan’s Topix dropped 3.9%, while Hong Kong’s Hang Seng Index gained 1.6%. Argenx announced that the U.S. FDA has granted approval for its Vyvgart treatment in pre-filled syringes. Greenyard CEO Hein Deprez intends to delist the company. That explains why trading in the stock has been suspended since April 1. Meanwhile, earnings season officially kicks off today. Major U.S. banks like JPMorgan Chase, Morgan Stanley, Wells Fargo, and asset manager BlackRock are opening their books. Investors will be watching closely for guidance from company executives in light of the recent tariff chaos.

Is the used car market the answer to import tariffs?

CarMax reported a 6.7% increase in quarterly revenue to 6 billion dollar. However, its earnings per share came in at 64 cents, just shy of Wall Street’s estimate of 65 cents. That one cent shortfall was enough to send the stock tumbling 17%. That said, the outlook isn’t entirely bleak. CarMax is the number one seller of used cars in the U.S. Since the pandemic, consumers have preferred newer vehicles with modern features. But the trade war might turn things around. As new cars become more expensive due to tariffs, budget-conscious consumers are likely to shift back to the more affordable used car market.

Containers left onshore

Amazon is among the companies that have hit pause on purchases from China. Discounters like Five Below, which source many of their low-cost items from Asian low-wage countries, are also delaying orders. Danish shipping giant Moller-Maersk even issued a memo on behalf of Five Below to Chinese suppliers, stating the company is temporarily suspending shipments of containers from China. According to Vizion Inc., a supply chain data analytics firm, the number of global container bookings dropped 49% between April 1 and 8. While many consequences of the trade war are still unfolding, it’s becoming increasingly clear how much economic damage Donald Trump has inflicted on global trade.

Did you know…

that the recent drop in oil prices is putting immense pressure on shale oil producers in Texas? Oil prices fell below 60 dollar per barrel last week—the minimum price many Texan producers need just to break even.

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