After a shaky start to the week, markets globally look to have recovered for the most part, as vaccine hopes bolster investor confidence. Major Asian Indices closed up yesterday, apart from the Shanghai Composite, which dipped. European markets looked strong yesterday and indices in the region climbed high. Wall Street was less confident however, as most of the major US indices, aside from the Nasdaq, made mild gains.
- FTSE 100 – 6,292.65 (+1.83%)
- Dow Jones – 26,812.71 (+0.64%)
- S&P 500 – 3,219.07 (+0.67%)
- NASDAQ – 10,650.19 (-0.37%)
- Stoxx 600 – 373.87 (+1.76%)
- SSE Index – 3,361.30 (-1.56%)
Is tech overcrowded
According to almost three-quarters of fund managers, it is. A recent survey from Bank of America found that the opinion of investors — who manage a total of $570bn — was that the US tech sector is the “most crowded trade”, the Financial Times reports. This survey further reinforces concerns that such companies may have become overvalued.
Record $2.6bn China stocks exodus
Funds based outside of China sold a record net RMB17.4bn of Chinese stocks on Tuesday, according to Bloomberg data and the Financial Times, through trading link-ups between the Hong Kong, Shanghai and Shenzhen exchanges. The recent rally in China helped the CSI 300 index achieve its best run in five years, before it pulled back to close down 1% on Tuesday.
Earnings preview: Netflix
The streaming giant has been a major beneficiary of the recent pandemic-induced lockdowns and has garnered support from investors. This, and recent price target upgrades, helped push its share price to a new high of $555 last Friday. Will its upcoming earnings report, due later today, provide investors with more good news?
Russian retail investors cause market surge
Retail traders accounted for 42% of trading volumes on the Moscow Exchange in June, a 34% jump from the same month in 2019, according to the Financial Times. The number of individuals with brokerage accounts has risen from 1.5 million in January to 5.3 million. The MOEX Russia index, much like other benchmark indices, has grown 29.9% since its March low.
Moderna’s share price injection
The company’s share price climbed around 15% in pre-market trading yesterday, following positive news in its vaccine trials. On Tuesday afternoon, the company announced the publication of The New England Journal Of Medicine’s interim analysis of Moderna’s phase 1 study of its mRNA vaccine against COVID-19. Moderna stated that “the results reaffirm and expand upon positive interim data” from May. Moderna closed up 6.04% yesterday.
Asos back in fashion
The online retailer reported profit that reached the top end of market expectations, Bloomberg reports, and a 10% increase in revenue to £1bn. It said it expects to continue to deliver strong profit growth as cost-cutting measures helped offset coronavirus related issues. Asos’ share price climbed 3.44% yesterday.