Wed. Dec 8th, 2021

Currency contracts

Global stocks declined despite concerns about Covid-19

The highlight:

    • USA
      The Dow Jones was up 0.65% or 225.96 at 35,120.08. The S&P 500 added 0.81% or 35.87 to 4,441.67. Meanwhile, the Nasdaq gained 1.19% or 172.88 to 14,714.66.
    • ASIA
      The Nikkei added 1.78% or 480.99 to 27,494.24.
      The Kospi rose 0.97% or 2.70 points to 3090.21.
      The Hang Seng index rose 1.05% or 259.87 points to 25,109.59.
    • EUROPE
      The EuroStoxx 50 index rose 0.38% and the Stoxx 600 added 0.29%.

Wall Street closed the worst week of June

Wall Street ended its worst week since June due to concerns about the delta variant and the possible withdrawal of stimulus by the U.S. Fed.

The Dow Jones has accumulated a 1.1% loss in the last five sessions. The selective S&P 500 fell 0.6% and the Nasdaq Composite Index lost 0.7%.

This week the market will focus on Covid-19

herd immunityLast week has been erratic. However, Friday’s rebound, driven by tech companies, has allowed the market to regain some ground.

Analysts believe the good round of quarterly results generated records. Still, they will be left behind and the pandemic situation will refocus.

 

The rise in covid-19 infections continues to be the most important factor of the week worldwide, for fear that the delta variant will continue to hamper economic recovery.

Goldman Sachs drastically cut growth forecasts in the U.S. for the third quarter from 9% to 5.5%. It generated pessimism.

The energy sector has been particularly affected. Meanwhile, the technology sector has once again maintained record highs thanks to companies like Apple, the world’s largest company.

US and Chinese macroeconomic data pointing to a slowdown and geopolitical tensions in Afghanistan have also played an important role.

August is usually a quieter shopping month due to the Wall Street summer vacation. However, it also results in volatile movements.

On Thursday, the market reacted to the minutes of the last Fed meeting released the day before. Rising inflation remains in the forefront as unemployment falls. Claims for unemployment benefits have been at their lowest level since the pandemic erupted.

However, experts have mentioned that the Fed could change its view on monetary policy if the delta variant had a substantial impact on US economic growth.

Traders will be waiting for the central bankers meeting in Jackson Hole this week, awaiting further guidance.

After nearly two weeks of profits and several record highs, the delta, inflation and geopolitical concerns have ended up putting investors on hold.

 

The Nikkei bounced back after three days of losses

The Nikkei average rebounded sharply for the first time in 3 days. In fact, the Nikkei average fell about 960 yen last week, but the Wall Street rebound helped it. In addition, the recent rebound in Hong Kong and Shanghai stocks also supported the Japanese stock market.

The Nikkei added 1.78% or 480.99 to 27,494.24. The trading volume of the first section of the Tokyo Stock Exchange was 944.16 million shares and the trading value was 2,310.3 million yen.

The Topix rose 1.83% or 34.46 points to 1,915.14.

By industry, the shipping industry, transport equipment and electrical equipment have the highest percentage increase. Only the mining industry fell slightly. The number of stocks on the rise was 89%, while the number of stocks on the decline was 9%.

The Japanese square increased gains, especially in the second section of the session. It increased by almost 2% after the defeat of the candidate backed by the ruling party in the local elections. It fueled expectations that the Government would adopt additional economic stimulus.

The shipping industry received the biggest losses of the day, along with transportation equipment and the electronics sectors.

Denso, a manufacturer of automotive components, rose 6.6% among companies listed on Nikkei. It was followed by K Line transport companies which rose 6.31% and Mitsui OSK gained 5.41%.

Transport company Nippon Yusen accumulated the largest volume of operations and advanced 4.52%.

Vehicle manufacturer Toyota rose 3.44% and the Softbank group lost 1.07%.

 

Seoul is expanding thanks to good export data from South Korea

The Kospi index rebounded 1% after three days of losses. It increased 0.97% or 2.70 points to 3090.21.

The index increase was driven by institutions that bought 609.8 billion won. Among the institutions, the financial investment accounted for the largest net purchase, with 456.6 billion won. The pension fund also bought a net 31.1 billion won. On the other hand, individuals and foreigners sold 572.3 billion won and 31.1 billion won, respectively. In addition, South Korea’s exports recorded good data.

The successful rebound of the US stock market seems to have had a positive effect on the South Korean market as well.

Semiconductor giant Samsung Electronics rose 0.83% and SK Hynix gained 0.49%. NAVER added 1.66% and Samsung Biologics increased 2.33%.

Hyundai Motor, the largest South Korean manufacturer, closed up 1.24% more. Meanwhile, its subsidiary Kia Motors advanced 0.46%.

Samsung Biologics expanded 2.33% and its competitor Celltrion rose a significant 6.77%.

 

The Hang Seng begins the week with a hike

Asian stock exchangesThe Hang Seng index rose more than 2% in the morning and gains in the afternoon stopped. In addition, the Hang Seng index rose 1.05% or 259.87 points to 25,109.59. The Hang Seng China Enterprises index rose 0.84% ​​or 73.12 points to 8,815.56. All shares of the Hang Seng index rose and utility companies led the 1.39% rise.

Commodities outperformed, Dongyue Group added 16.74%, Minmetals Resources rose 6.19% and Sinofert added 10.34%. CITIC resources grew 3.75%, Shanghai Petrochemical advanced 2.53% and Zijin Mining gained 4.18%.

Among the technology stocks, Tencent bounced, but Alibaba was hit by the investigation of Hangzhou Municipal Party Committee Secretary Zhou Jiangyong. Shares of the company fell 3.67%.

The highlight was the session of the pharmaceutical services company Wuxi Biologics, which increased by 7.31%.

Chinese state-owned enterprises closed in the mixed territory. Oil company Petrochina advanced 3.02%. Cnooc, its partner in the sector, fell 1.39%. Among telephone operators, China Mobile added 0.89% and China Unicom fell 0.23%.

 

European stocks recovered

The main European stock markets traded on Monday with an increase at the beginning of the session.

The EuroStoxx 50 index rose 0.38% and the Stoxx 600 added 0.29%.

Last week she was moved by the spread of the Delta variant of the Covid-19 and concerns about US downsizing.

In Europe, the first results of the IHS Markit PMI surveys show a slowdown in business growth in recent weeks. However, continued recovery has not been questioned.

In London, the British supermarket group Sainsbury’s gained 9.13%.

 

The post Global stocks rebounded despite concerns about Covid-19 first appearing on FinanceBrokerage.

Sometimes we include links to online retail stores. If you click on one and make a purchase we may receive a small commission.

Source link

Leave a Reply