Weekly Global Markets Digest #10 Sep 28 — Oct 04, 2020
- The US court banned the TikTok blocking.
- Google is again under the scrutiny of antitrust officials. This time, China intervened.
- The US Congress avoided a shutdown by striking a deal to fund the government.
You will find out what happened on the financial markets last week and how stock prices changed in today’s digest.
Best week for the stock market since September
Last week ended on a positive note: shares of the largest technology companies grew significantly in price.
Apple (AAPL) gained 7.92% to $116.79, Facebook (FB) gained 6.85% to $266.63, Amazon (AMZN) added 6.67% to $3,221.26, Google (GOOGL) gained 4.57% to $1,487.90, and Microsoft (MSFT) gained 4.56% to $212.46. Investors are preparing for the pre-election rally and expect positive news about additional incentives for the economic recovery.
Meanwhile, China has announced preparations for an antitrust investigation against Google. The initiator of the investigation was the Chinese company Huawei, against which US President Donald Trump imposed new sanctions and banned the supply of equipment to the company.
Tesla (TSLA) shares again top the list of most traded stocks. They added 15.57% over the past week and grew to $448.16. The stock is again close to September resistance level and is close to updating the ATH. Tesla managed to increase the number of deliveries of new cars and solve problems with delivery. NVIDIA (NVDA) follows by a small margin, with shares up 10.26% to $544.58.
USA
Last week was also very good for indexes, which updated a two-week high on the back of positive economic data that exceeded analysts ‘ expectations. The following indicators have increased:
- Consumer confidence index;
- House price index;
- Chicago PMI.
The tech rally has resumed, indicating a shift in focus from the US industrial market. Meanwhile, Congress managed to agree on funding the government until December 11 to avoid the shutdown.
S&P500 (SPX): +4.13% to 3,380.80
NASDAQ (IXIC): +6.13% to 11,326.51
DOW JONES (DJI): +3.73% to 27,816.90
Shares of Norwegian Cruise Line Holdings Ltd. (NCLH) gained 18.52%. This indicates a renewed consumer interest, which is only 2% — 3% lower than normal compared to April’s -20%.
Paycom Software, Inc. (PAYC) is up 17.20%, and DXC Technology Company (DXC) is up 16.25%. Analysts forecast revenue growth for the DXC Technology Company, which has fallen more than 17% over the past month as the P/E ratio has been zero over the past 12 months.
Share prices of companies in the energy sector are falling on the background of cheaper oil. National Oilwell Varco, Inc. (NOV) lost 14.68%, and Apache Corporation (APA) lost 14.59%.
Asia
US sanctions continue to put a lot of pressure on the Chinese stock market, as a result of which the indices are falling again. But last week, the quotes changed only slightly. However, the PMI beat expectations and contained the fall after shares rose on Thursday. Investors are still waiting for the US presidential election, the outcome of which may mark a new trend for Chinese stocks.
It became known that the US court sided with the Chinese company ByteDance, prohibiting the blocking of TikTok on the territory of their country. This opens up access for a deal with the us company Oracle to transfer part of the business to it.
Nikkei 225: +0.42% to 23,184.93
S&P/ASX 200: -0.05% to 5,872.90
Shanghai Composite: -0.16% to 3,218.05
KOSPI: +2.43% to 2,327.89
Shares of Ambow Education Holding Ltd. (AMBO) showed a stunning increase — 127.01% on the background of news about the expansion of the strategic partnership with Amazon (AMZN).
CBAK Energy Technology Inc. (CBAT) rose 88.15% and updated a 3-year high after a boom in demand for Chinese electric cars.
Mizuho Financial Group Inc. (MFG) lost 90.38%, while the NCTY fell 66.21%, hitting a 52-week low on Thursday. Shares of SPI Energy Co., Ltd. (SPI) slumped 56.41% after a phenomenal 3,100% gain in September, along with rising CBAK shares.
Eurozone
European indices also show positive results, although they rose only slightly. This happened against the background of positive economic statistics for many EU countries. In addition, the head of the ECB, Christine Lagarde, said that in its monetary policy will focus on the fed.
According to press releases released in the previous week, progress on the ambiguous points of the Brexit deal could be made.
CAC 40: +1.29% to 4,824.04
FTSE 100: +0.23% to 5,879.45
DAX: +0.99% to 12,730.77
Aptorum Group Limited (APM) shares soared 131.20% after news that the company has opened a new division, which focuses on liquid biopsy of infectious diseases.
Iterum Therapeutics Plc (ITRM) is up 88.09% after new drugs to treat uUTI found a response among regulators. Despite this, the stock is trading 73% lower than last year’s price.
UK-based biotech company Myovant Sciences Ltd. (MYOV) 28.31%. Earlier, the company announced that the results of tests of its drug Relugolix were ineffective.
Shares in Ireland’s Mallinckrodt Plc (MNK) fell 15.80% last week, and more than 38% in a month. Investors expect poor quarterly results, which the company will report on November 3.
Oil is getting cheaper again
Despite the fact that demand for petroleum products has increased compared to the April and May figures, it is still in limbo due to the raging COVID-19 and negative expectations about the increase in the disease rate. Oil giants produce more oil than they can sell.
The weekly EIA report does not match analysts’ forecasts. The price of WTI crude oil again fell below $40 and fell 4.45% to $38.31 compared to last week. Brent fell not so much — by 2.84% to $40.52.
The price of gold has again exceeded the $1,900 mark and is now trading at $1,907.10 per ounce. Silver rose slightly stronger, up 3.16% to $23.79.
The price of natural gas rose the most — by 10.59% after a sharp jump at the beginning of the week. In the West, the price declined after it became known about the increase in natural gas reserves more than expected.
Major currencies are consolidating
AUD/USD: +1.96% to 0.7168
NZD/USD: +1.47% to 0.6641
USD/JPY: -0.07% to 105.54
GBP/USD: +1.00% to 1.2873
EUR/USD: +0.89% to 1.1736
The dollar weakened last week against almost all currencies, even the JPY, AUD and NZD. The new Zealand dollar rose to a one-week high and settled above 0.6600. The fresh dollar sell-off comes amid uncertainty over the ongoing COVID-19 aid package, Trump’s signals of delayed election results, and disappointing statistics on the ISM index, which fell to 55.4.
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If you missed our Weekly Crypto Markets Digest #10:
https://medium.com/@excelsior_one/weekly-crypto-markets-digest-10-sep-28-oct-04-2020-c4fbf869fe4b
