Meat alternative producer Beyond Meat climbed as much as 9% in pre-market trading yesterday after announcing late on Tuesday that it is to partner with Alibaba. The deal will mean a retail store debut in China for Beyond Meat and help it expand its footprint there following previous deals with Starbucks and Yum Brands, MarketWatch reports. Beyond Meat closed yesterday up 4.70%.
Virus concerns unsettle markets
The news that the S&P 500 recorded its largest quarterly percentage gain since 1998, up 20%, did little to help assuage the fears of investors and traders over rising COVID-19 cases and weak economic data. US indices were relatively flat yesterday, following weak performances across European markets. Meanwhile, indices across Asia remained muted, although generally positive.
- FTSE 100 – 6,157.96 (-0.19%)
- Dow Jones – 25,826.00 (+0.05%)
- S&P 500 – 3,118.57 (+0.59%)
- NASDAQ – 10,270.98 (+1.12%)
- Stoxx 600 – 361.01 (+0.19%)
- SSE Index – 3,025.98 (+1.38%)
Gap stock gets a lift
Shares in clothing store Gap have soared after announcing a 10-year partnership deal with Kanye West and his fashion brand Yeezy. After the announcement on Friday, $1bn was added to Gap’s market cap.
Deals drop to decade low
Just $485bn worth of deals were made globally in Q2 2020, the lowest in more than a decade, according to the Financial Times. The value of deals dropped 50% from the $1trn worth of deals made in the same quarter last year. The US was hit hardest as deal value for the period dropped almost 90% from a year ago to just $75bn.
Will tech’s mammoth valuations remain?
According to Goldman Sachs, if Treasury yields rise, then tech stocks will likely maintain high valuations even as other consumer stocks are hit harder. According to Bloomberg, the firm’s forecast that Treasury yields will rise 45 basis points by the end of the year will boost cyclical shares and insulate long-duration, high-growth equities but drag on defensive stocks.
Top stocks for Q2 and H1
On Tuesday, a decade since its $17 debut, Tesla hit yet another all-time high of $1,079.81 after rallying 106% in Q2 2020. Another successful stock, Apple, grew 43.8% to end the quarter at $364.80. However, they are not alone. MarketWatch highlights MercadoLibre, DocuSign and Zoom as “real” winners not only outperforming since March dips but for the first half of the year too.
European exchanges say no to shorter hours
The Federation of European Securities Exchanges, which represents European bourses, has come out against shortening trading days, the Financial Times reports. It stands in opposition to fund managers and banks that have pushed to reduce trading hours in Europe, which at 8.5 hours a day are some of the longest globally.
