International News and Market Update: Peloton insiders sold nearly $500 million worth of stock before big price plunge, and more

 International News and Market Update: Peloton insiders sold nearly $500 million worth of stock before big price plunge, and more

International News and Market Update.

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European stock markets closed slightly higher Wednesday, appearing to shrug off concerns about rising bond yields and historically high inflation in the United Kingdom. The pan-European Stoxx 600 closed up 0.2% after starting the session in the red. Mining stocks led the gains, rising 2.7%. Inflation in the U.K. rose to a 30-year high in December, the Office for National Statistics said Wednesday, as higher energy costs, resurgent demand and supply chain problems continued to push up consumer prices. Inflation reached 5.4%, the highest since March 1992, up from 5.1% in November, a decade high. Economists polled by Reuters had expected an increase of 5.2%.

U.S. stocks closed lower on Wednesday, while Treasury yields continued their recent rise as the Federal Reserve bets it will accelerate the pace of short-term interest rate increases as inflationary pressures continue to mount in the world’s largest economy. The Nasdaq Composite is now down 10% from its record close on Nov. 19.

Markets in the Asia-Pacific region were mixed this morning after China cut its benchmark interest rates. China cut its one-year policy rate by 10 basis points on Thursday, while its five-year policy rate, which affects mortgage pricing, was cut by 5 basis points for the first time since April 2020. Chinese property stocks, which have been suffering from the country’s debt crisis, reacted positively.

Bank of America beats earnings estimates

Bank of America beat analysts’ earnings estimates Wednesday on record results in asset management and investment banking, as well as an $851 million release of loan loss provisions. The bank said fourth-quarter profit rose 28% to $7.01 billion, or 82 cents a share, beating the average estimate of 76 cents a share from analysts polled by Refinitiv. Revenue rose 10% to $22.17 billion, just below the $22.2 billion estimate. Bank of America, led by CEO Brian Moynihan, has had a tailwind in recent months as rising interest rates and a rebound in loan growth promised to boost the industry’s profitability. But that narrative went off the rails last week after banks began disclosing the impact of wage inflation on earnings.

Peloton insiders sold nearly $500 million worth of stock before big price plunge

Peloton executives and insiders sold nearly $500 million worth of stock before the stock fell sharply. That’s according to documents filed with the Securities and Exchange Commission. Peloton shares have fallen more than 80% since their highs last year, hitting a 52-week low of $29.11 on Tuesday. John Foley, the company’s CEO and co-founder, has sold $119 million worth of shares as of November 2020, according to SmartInsider. Most of his sales were for $110 a share or more. Many top executives also sold some of their shares at the right time. William Lynch, the company’s president, sold more than $105 million worth of shares last year, including $72 million in February at an average price of $144.95.

Mandy Nunes

https://gvmarkets.com/

Mandy Nunes is the Chief Marketing Officer for GV Markets. With 15 years of experience in the Financial Services Industry within the South African market, she has held various responsibilities within the business development, marketing, operations and regulatory space – leading to a very fitting position within the Trading and Investment environment. Mandy has notably been the editor of 'The Ordinary Millionaire', along with having written numerous pieces within the industry at large. Holding both legal and wealth management qualifications, her goal is to bring about massive success for, and within, GV Markets. GV Markets is a South African forex and CFD broker that offers comprehensive trading solutions to both retail and professional traders. GV Markets prides itself in being a well-regulated and reputable STP brokerage that works according to a No-Dealing Desk trading model, offering traders access to some of the best liquidity providers in the country.

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