Recent weeks have observed a sharp decline in indexes showing consumer sentiment on both sides of the Atlantic. It appears that the war, inflation and interest hikes or their announcements are effectively holding back consumer demand, which could possibly be reflected in expected stagflation or recession.
Data on consumer attitudes toward spending their money was confirmed yesterday by US retail giant Walmart. Walmart has a lot more than 10000 stores and numerous eCommerce sites, with some 230 million customers from 24 countries visiting every week. With the fiscal year 2022 revenues of $573 billion, Walmart employs about 2.3 million workers worldwide.
Yesterday, following the session, the business noted that individuals are reducing their spending because of rising prices. The business reported that customers are concentrating on necessities, including food while spending less on clothing or electronics. Thus, Walmart slashed its quarterly and annual earnings estimate expectations. Consequently, the business’s share price fell about 10% in after-session trading, dragging other retail-oriented companies down with it. Target fell by a lot more than 5%, Macy’s by a lot more than 4%, and Amazon by a lot more than 3%. Soon the firms will publish results: Alphabet, Microsoft, Visa, Coca-Cola and McDonald’s.
WTI crude oil futures rose above $98 per barrel on Tuesday in the commodities market. Tensions between your West and Russia remain elevated as G7 countries prepare to impose a cost cap on Russian oil, but Moscow has rejected such plans and said it could not supply oil to countries that impose such restrictions. Russia’s Gazprom in addition has announced that supplies through the Nord Stream 1 pipeline to Germany will drop to just 20% of capacity, that could fuel a shift from gas to oil being an power source, possibly driving up prices. Meanwhile, recent data from the U.S. and Europe already indicate an economic slowdown, with China chafing at an economic contraction in the next quarter.
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