This report is from today’s TNC’s Daily Open, our international markets update. TNC Daily Open keeps investors informed on everything they need to know, no matter where they are.
Numerous studies monitoring sentiment in March indicate that the likelihood of a U.S. recession is deepening and bleakening the future for both consumers and CFOs. However, during the last three days, Wall Street has climbed, possibly reflecting investors’ cautious optimism that President Donald Trump will budge on his position on reciprocal tariffs.
Across the pond, the German software company SAP has increased about 10% this year and is now the most valuable corporation in Europe thanks to a surge in stock gains. In the meantime, BYD, an electric vehicle manufacturer in China, has surpassed Tesla in yearly revenue.
Nevertheless, the United States is so important to the global financial and economic system that a recession would have far-reaching effects. Despite a strong start to the year, businesses like SAP and BYD might be unable to avoid the unrest over the water.
What To Note Today
U.S. Stocks Barely Make Any Progress
The Dow Jones Industrial Average increased by 0.01%, the S&P 500 gained 0.16%, and the Nasdaq Composite increased by 0.46% on Tuesday. All three indexes had their third consecutive positive session. Markets in Asia-Pacific rose on Wednesday. Australia’s S&P/ASX 200 was up 0.71% on data showing that the country’s inflation rate decreased to 2.4% year over year in February from 2.5% in January, which was lower than economists’ predictions in a Reuters poll.
 Customers Become Less Confident
For the fourth consecutive month, the Conference Board’s measure of U.S. consumer confidence fell 7.2 points to 92.9. Additionally, it falls short of the 93.5 score anticipated in a Dow Jones survey of economists. The future expectations indicator fell 9.6 points to 65.2, the lowest level in 12 years and much below the recession-signaling 80 level.
Concerns About A Potential Slump
Other surveys also note increased concerns about the recession. According to the most recent CNBC CFO Council quarterly survey, around 60% of CFOs anticipate a U.S. recession in the year’s second half. A separate study conducted by Deutsche Bank indicated that, based on the average opinion of 400 respondents between March 17 and 20, there is a roughly 43% chance of a decline in growth over the next 12 months.
Additions To The “Entity List” Of The United States
On Tuesday, the Bureau of Industry and Security of the U.S. Department of Commerce added 80 organisations to its “entity list,” including over 50 from China. American businesses must obtain government permissions to offer goods to firms on the list. According to the government, Chinese companies were singled out for allegedly creating high-performance AI chips, supercomputers, and advanced artificial intelligence for military applications.
Revenue From BYD Soars Over That Of Tesla
In a statement released Monday, Chinese automaker BYD stated that its 2024 sales will total 777 billion yuan ($107 billion). Supported by sales of hybrid cars, the amount is a 29% rise in revenue over the prior year and surpasses the $97.7 billion in yearly revenue that Elon Musk’s Tesla company announced. The submission was made shortly after BYD revealed a new battery technology that says it can charge EVs in five minutes.
SAP Outperforms Novo Nordisk
Software manufacturer SAP rose to the top of Europe’s value rankings this week. LSEG data shows that the German company’s market capitalisation by Tuesday’s closing was approximately $343.3 billion, with shares up 1.33% on the day and more than 40% over the previous year. The Danish pharmaceutical behemoth Novo Nordisk, known for its weight-loss medications Ozempic and Wegovy, loses ground to SAP as the most valuable corporation in Europe.
True Cause Of Tesla’s Decline?
Although it has recovered some of its losses in the last two days, Tesla’s stock has declined recently. Many people blame the decline on CEO Elon Musk’s activities in Washington, D.C. However, the investment bank Piper Sandler has an optimistic perspective of the EV company since it believes that the true reason driving down Tesla shares may be elsewhere.
Other Reports
According to a Google quantum executive, technology is “five years out from a real breakout.”
The director of hardware for Google Quantum AI, Julian Kelly, told reporters that a quantum computer might be on the horizon. It can do advanced physics and possibly produce new data types.
In an interview on Tuesday, Kelly stated, “We think we’re about five years out from a real breakout, kind of practical application that you can only solve on a quantum computer.”
Although experts predict that a minimum of one million qubits will be required for practical applications, Google’s most sophisticated quantum computer contains 105 qubits, the fundamental building unit of a quantum computer.
Kelly said, “Quantum computers can access the most basic workings of the universe because they speak quantum mechanics.”
