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Tesla hits $1000 mark for the first time while global markets tumble

Global markets tumble

Major indices in the US pulled back yesterday, as markets battled against ongoing pressure from protests over racism and police brutality, a gloomy outlook from the US Federal Reserve and fresh reports of rising coronavirus cases. Markets in Europe and Asia also plummeted. Meanwhile, Citi’s strategists suggest day traders have helped push the bank’s panic/euphoria model to its highest reading since 2002, raising the probability of a downturn in the next year to 70%, Markets Insider reports

  • FTSE 100
    6,076.70 (-3.99%)
  • Dow Jones
    25,641.16 (-5.00%)
  • S&P 500
    3,058.89 (-4.11%)
    9,799.29 (-2.92%)
  • Stoxx 600
    354.21 (-3.79%)
  • SSE Index
    2,920.90 (-0.78%)
  • Tesla hits $1,000 mark for first time

    The vaunted electric car manufacturer saw its stock peak at $1,027.48 during intraday trading on Wednesday for the first time ever. Tesla’s strong performance, alongside the FAANGs, has helped the tech-heavy Nasdaq index reach new highs, due to what market commentator Jim Cramer has called “the power of FAANG and friends”.

    Let there be light

    GE recently announced that it is to sell its lighting division — one of the original building blocks for what would become the GE empire — to Savant Systems. The sale aims to help the company transform “into a more focused industrial company”. This move has got the attention of analysts, many of whom are excited by the prospect of the company’s turnaround.

    Grubhub shuns Uber

    Merger talks between the two companies took a surprise turn after Grubhub said it would instead combine with Just Eat to create a trans-Atlantic food-delivery company. A planned all-stock deal would see shareholders receive 0.6710 Just Eat shares for each Grubhub share, The Wall Street Journal reports, valuing Grubhub at $7.3bn, based on Tuesday’s closing price.

    Trade tensions

    The relationship between the world’s two biggest economies, China and the US, have begun to deteriorate again, as geopolitical issues old and new give cause for concern. The impact on the S&P 500, the Shanghai Stock Exchange Composite and the Hang Seng index is uncertain and any dramatic moves, such as Chinese firms exiting the US, would likely hurt investors.

    Investors buy up Shopify

    The Canadian e-commerce company has done spectacularly well this year, almost doubling in price since the start of January (from $407.81 to $743.64 through 10 June). As a consequence, its market cap has soared to $88bn — more than the likes of Target, GE and Uber — to contest with Royal Bank of Canada to be the country’s largest publicly listed company, Bloomberg reports.

    NetEase’s spectacular secondary listing

    The Chinese technology group saw its share price climb by as much as 10% in early trading, after raising $2.7bn on its secondary listing in Hong Kong, according to the Financial Times. NetEase, which until recently traded exclusively in New York, is among others to turn to Hong Kong after the US government increased pressure on Chinese companies trading in the country.

    Hertz is hurting

    The embattled car rental company’s share price has plummeted as investors flee in fear of a potential delisting from the New York Stock Exchange, according to The Wall Street Journal. The crash came after an unexpected rally from small traders piling into the stock — Bloomberg reported 96,000 new positions opened on Robinhood last week — in spite of the company’s recent bankruptcy filing.

    TripAdvisor – Top Movers this week

    Liberty TripAdvisor Holdings, which owns TripAdvisor, has seen its share price performance benefit recently from a broader surge in airline and travel sectors amid easing lockdown measures in many countries.

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