Global stock markets marked time yesterday against a backdrop of recent massive gains, growing China-US tensions, fresh virus flare-ups and signs of a possible breakthrough in deadlocked US stimulus talks, dealers said.
London’s FTSE 100 closed 0.6% up at 6,111.98 points, Frankfurt’s DAX 30 ended 0.8% up at 12,977.33 points and Paris’ CAC 40 finished 0.8% up at 4,977.23 points, while the EURO STOXX 50 gained 0.7% at 3,311.70 points.
With the coronavirus having dealt repeated blows to the global economy over the past half year, it was the tech titans who led gainers on an upbeat Wall Street, suggesting they continue to be major beneficiaries from the health crisis that just will not go away.
Yesterday saw Apple became the first US company to reach $2tn in market value — it hit the $1tn mark in early 2018 and the iPhone maker was up 1.1% at $467.60 three hours into Wall Street trading to boast a 60% rise so far in 2020.
Fellow technology big-hitters also rose, Google parent Alphabet adding 0.5% and Microsoft 0.1%, although fellow $1tn market value traveller Amazon was off 0.4% even as more broadly the S&P 500 and the Nasdaq indices soared to record highs.
Oil was in focus ahead of US stockpiles data and a virtual meeting of Opec and its allies to discuss their recent output cuts after crude prices were shattered by a coronavirus-driven plunge in energy demand.
The dollar, which Tuesday hit the lowest level against the euro in more than two years on the prospect of more huge US stimulus, was little changed as the market waited on the Federal Reserve’s minutes from its latest policy meeting.
“As for the oil market, traders are a bit cautious today because of the US crude inventory data” amid a supply glut, noted Naeem Aslam, chief market analyst at Avatrade.
“Traders are also keeping an eye on the Opec+ gathering.”
Craig Erlam, senior market analyst with OANDA Europe, saw European indices producing a “decent return,” albeit “we don’t quite have the momentum that indices on the other side of the Atlantic are enjoying, with the S&P and Nasdaq back in record territory,” he said.
“The prospect of a relief deal between Republican’s and Democrats won’t be doing that any harm, with the Fed minutes of interest later in the day,” he added.
Democrats and Republicans meanwhile remain stalemated over what should go into another virus stimulus package.
But House Speaker Nancy Pelosi provided a ray of hope by saying her party could be willing to make cuts to its offer to seal a deal, then return to thrash out other issues after November’s elections.
The $3.5tn package agreed earlier this year, combined with a wall of cash and loose monetary policies from the Federal Reserve, have helped US stock markets soar from their March troughs.
Souring US-China relations remain a concern, with the latest salvo out of Washington coming in a warning to colleges and universities to sell any Chinese holdings in their endowments owing to proposed new rules that could see these firms de-listed.
The announcement comes with the two superpowers locked in several stand-offs ranging from Hong Kong, trade and the coronavirus, and US accusations of digital espionage.
from Gulf Times https://ift.tt/3kXQcFr
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