SimpleFX Market News
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Deutsche Bank Drops 10%

Mystery seller dumped $2 billion worth of stocks of Germany’s leading financial institutions: Deutsche Bank and Commerzbank. DB fell from $11.86 to $10.61, but since then has recovered to $10.9.

Who did sell? Most probably it's the American financial services company Capital Group as it’s the only shareholder capable of such a move.

This is a bad sign for the German economy, which has to deal with the inflation crisis and reliance on Russian natural gas. The pressure to sanction Russia grows every day as new war crimes in Ukraine come to light.

Trade DB
https://app.simplefx.com/instruments/DBK.DE/chart
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Airbnb Jumps 6%!

Travel stocks are having a great day on Wednesday. Airbnb opened at $160 but quickly skyrocketed to $170 with tech stocks in green and Nasdaq +1.2%.

Airbnb is up over 140% since the IPO in December 2020. Companies revenue grew 78% to $1.53 bn in Q4 2021. The biggest problem with buying Airbnb stocks now is the already high price. Still, the current $170 is well below the all-time highs of $220 in February 2021.

Make your move, trade ABNB now.

https://app.simplefx.com/instruments/ABNB.US/chart
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Musk Offers $43bn for Twitter

As many expected, Elon Musk goes for a hostile takeover of the social media company. He offered $54.2 per share in cash to buy 100% of Twitter. The price is 54% higher than on January 28, when the billionaire started investing in Twitter.

If the offer is not accepted, Musks suggests he could sell his 9.2% stake in the company.

Twitter is up 13% already in premarket trading. Make sure you are trading when NYSE opens today at 15:30 UTC.

https://app.simplefx.com/instruments/TWTR.US/chart
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Natural Gas Dives -8.16%

Investors cashed in their profits after gas hit the highest level since 2008 at $8.05 per MMBtu yesterday. The surge was caused by the start of the Russian offensive in Donbas and an unexpected blast of cold weather in the US.

On Tuesday, we witnessed the most significant single-day drop since early February.

There are no signs of Russia-Ukraine war de-escalation, and the western countries impose stricter sanctions on oil and gas every week. Once they are in place, the embargo will be challenging to lift, especially with an ongoing international investigation of the war crimes committed in Ukraine.

Trade Natural Gas Now
https://app.simplefx.com/instruments/NATURALGAS/chart
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Netflix crashes 27% in pre-market as investors sell on disappointing Q1 results

Analysts across the board have reduced their price targets and growth estimates for the global streaming company. The revenue in the first three months of the year was $7.87 billion, a little lower than the expected $7.95, and the earnings per share came at $3.53 vs. the expected $2.91.

What shocked investors, however, was a drop of 200k subscribers worldwide, while the market expected an increase of 2.51 million.

Netflix went up 3.12% yesterday, so make sure you are ready when the trading starts at 15:30 UTC.

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Twitter Continues to Rise

The social media company is up 4.26% today and 7.89% over the last two days on SimpleFX. The current price of $49 per share is still lower than the $54.2 offered by Elon Musk a week ago.

Recently the world’s richest man tweeted about his plans to verify “all real humans” on Twitter, a crackdown on spam and disinformation by bots if his $47 billion bid is accepted by the board.

Yesterday Musk filed documents to the SEC showing the funding of the possible takeover. He’s willing to pay $21 billion in equity and $25.5 from Morgan Stanley. Additionally, the Tesla stocks that would work as collateral have been going up recently.

We’re still waiting for the reply from the Twitter board, which makes trading the stocks extremely exciting.

https://app.simplefx.com/instruments/TWTR.US/chart
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European stocks dive despite Macron’s victory. French CAC40 (-1.66), German DAX40 (-1.06%), British FTSE100 (-1.8%), and STOXX50 (-1.54%) all loose on Monday as investors prepare for interest rates rise by ECB. Last week, stock markets already discounted the high possibility of Emmanuel Macron winning the French presidential race.

However, this volatility in European equities is an excellent possibility for margin traders.

French oil giant TotalEnergies is down 3.1% today and 7.23% in the last three trading days. Do you BUY or SELL?

https://app.simplefx.com/instruments/FP.FR/chart
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Elon Buys Twitter, What’s Next?

He’s made it! Elon Musk officially bought 100% of Twitter paying $44 billion, and $54.20 per share. Probably the most influential social media network has become a private company as yesterday the board unanimously approved Elon’s offer recommending stockholders to do the same.

The world’s richest man promises to bring free speech to Twitter, and its founder Jack Dorsey trusts him.

“In principle, I don’t believe anyone should own or run Twitter. It wants to be a public good at a protocol level, not a company. Solving for the problem of it being a company however, Elon is the singular solution I trust. I trust his mission to extend the light of consciousness.”, said Dorsey in a Tweet.

Here are the steps that might follow yesterday’s decision:

- The buyer will take a closer look at the books of Twitter, but it shouldn’t be a problem, since Elon Musk is already overpaying for the company;
- The buyout will be reviewed by regulators (probably the US Federal Trade Commission and/or European Commission), they will check if it doesn’t violate antitrust laws, but Musk doesn’t own any major media companies yet;
- The shareholders need to vote. Twitter's annual meeting is scheduled for May, so this would be the latest date this happens, it’s possible it would happen earlier;

During this process, the stocks are still going to be traded on the New York Stock Exchange, so it’s going to be interesting to see how far will the price go from the $54.20 offered by Elon Musk.


Twitter closed at $51.64 yesterday. Make sure you trade the stock today when the market opens at 15:30 UTC.

https://app.simplefx.com/instruments/TWTR.US/chart
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Microsoft Jumps 6%

The stock gained on great earnings reports that beat the expectations. Microsoft opened high and hit $286 per share today after closing at $270 on Tuesday.

The company reported Q1 earnings that went above anticipations. The revenue went up 18% year to year.

However, the price went down to $279 shortly after the opening and is hovering above $282 right now.

Do you buy or sell Microsoft?

https://app.simplefx.com/instruments/MSFT.US/chart
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Meta Rockets 20%

The company published promising first-quarter results. Facebook’s active daily users rose by 30 million, and revenue by 7% year to year. Meta reported $2.72 earnings per share, higher than the expected $2.56.

On Thursday, the stock opened at $203.76 and rallied to $207.9, up 20% compared to yesterday’s close. Since then, many investors have cashed out, and Meta is trading at $194 on SimpleFX.

The current price is 44% lower than at the beginning of 2022, making Meta an exciting target for stock bulls. The price may collapse anytime as well.

Trade Meta

https://app.simplefx.com/instruments/FB.US/chart
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Alibaba Up 12%

Chinese tech companies soar as top leaders hit to boost stimulus, and investors hope for an easing of the tech crackdown.

Alibaba Group Holding soared 11.8% on the NYSE trading at $101.8, while Baidu is up 9% at $131 per share. The steep appreciation is unexpected since both companies had to slash their earnings estimates due to recent Covid Lockdowns.

These stocks have huge growth potential but are very susceptible to the geopolitical tensions between the west as well as local Chinese regulations.

Trade Alibaba

https://app.simplefx.com/instruments/BABA.US/chart