Stocks on Both Sides of the Atlantic Rebound as Tensions Ease

February 16, 2022 09:40

On Monday, global stocks slid whilst oil prices rose as tensions appeared to escalate between Russia and Ukraine. Yesterday, we saw the exact opposite scenario.

Russia announced on Tuesday that it had withdrawn some of its troops from the Ukraine border region and, although both the US and NATO said they were yet to see evidence of this withdrawal, it appeared to be enough to reassure the markets.

Brent crude, which seemed to be charging towards $100 a barrel, slipped from its seven-year high to close yesterday down by 2.4%, although has recovered some of these losses this morning.

On the other hand, stock indices on both sides of the Atlantic had positive sessions, rebounding after the previous day’s losses.

The FTSE 100, IBEX 35 and DAX 40 gained 1.03%, 1.68% and 1.98% respectively, and have continued to rise this morning.

On Wall Street, tech stocks drove all three major indices higher, with the Dow Jones, S&P 500 and Nasdaq gaining 1.22%, 1.58% and 2.53% respectively.

Meanwhile, earnings season is beginning to wind down, with 370 of the S&P 500’s companies having already published results.

Yesterday evening, at the close of the market, Airbnb reported fourth quarter results which exceeded expectations and forecasted another strong performance in the first quarter.

The company reported revenue of $1.53 billion and Earnings per Share (EPS) of 8 cents, compared to the $1.46 billion and 4 cents which had been forecast by Wall Street analysts.

Whilst Airbnb was initially hit badly by the pandemic, it has benefitted from a shift in demand by consumers who are no longer constrained to working in an office. As the number of people working from home has shot up since the onset of the pandemic, Airbnb has noted a rise in customers booking accommodation closer to home where they stay for longer periods to work remotely.

Airbnb finds itself uniquely positioned to benefit from this new category of travel. Moreover, as international travel restrictions are eased and the tourism sector begins to recover, Airbnb may also find itself benefitting from tourists who are not yet comfortable mingling with other guests in hotels, preferring their own space due to health concerns.

Airbnb further announced that bookings for the current quarter are expected to significantly exceed pre-pandemic levels for the first time since the pandemic began, and have forecasted revenue of between $1.41 billion and $1.48 billion, significantly higher than the market’s consensus of $1.24 billion.

In response to these positive results - Airbnb shares, which had already gained 6.14% during yesterday’s session – have risen a further 3.10% in pre-market trading.

Depicted: Admirals MetaTrader 5Airbnb Daily Chart. Date Range: 10 December 2020 – 15 February 2022. Date Captured: 16 February 2022. Past performance is not a reliable indicator of future results.


Invest with Admirals

With an Invest.MT5 account from Admirals, you can invest in Airbnb and over 4,300 other listed companies from 15 of the world’s largest stock exchanges! Click the banner below to learn more and register for an account today:

Invest in the world’s top instruments

Thousands of stocks and ETFs at your fingertips


The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admirals investment firms operating under the Admirals trademark (hereinafter “Admirals”) Before making any investment decisions please pay close attention to the following:  

  1. This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
  2. Any investment decision is made by each client alone whereas Admirals shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content.
  3. With view to protecting the interests of our clients and the objectivity of the Analysis, Admirals has established relevant internal procedures for prevention and management of conflicts of interest.
  4. The Analysis is prepared by an independent analyst Roberto Rivero, Freelance Contributor (hereinafter "Author") based on personal estimations.
  5. Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admirals does not guarantee the accuracy or completeness of any information contained within the Analysis.
  6. Any kind of past or modelled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admirals for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.
  7. Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the risks involved.
Roberto Rivero
Roberto Rivero Financial Writer, Admirals, London

Roberto spent 11 years designing trading and decision-making systems for traders and fund managers and a further 13 years at S&P, working with professional investors. He has a BSc in Economics and an MBA and has been an active investor since the mid-1990s