Connect with us

Hi, what are you looking for?

Stock

Nasdaq deja vu

Economy16 minutes ago (Jun 30, 2021 03:55AM ET)

(C) Reuters. FILE PHOTO: The Nasdaq logo is displayed at the Nasdaq Market site in New York September 2, 2015. REUTERS/Brendan McDermid/File Photo

A look at the day ahead from Danilo Masoni.

The tech-heavy Nasdaq has emerged as the stand-out mover as June draws to an end, up 5.6% so far and set for its best monthly run since November last year.

Yet another record high close overnight is no coincidence given reassurances from the U.S. Federal Reserve after its mid-month hawkish shift, while the Delta variant has recreated that deja vu feeling of pandemic-related economic uncertainty.

So while travel and cyclical stocks have felt the heat, the combined market cap of the five biggest U.S. tech plays (Google (NASDAQ:GOOGL), Amazon (NASDAQ:AMZN), Facebook (NASDAQ:FB), Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT)) has climbed closer to a gigantic $9 trillion, which is about 35% of nominal GDP.

But the reopening trade is far from dead and once end-month window dressing by investment managers trying to look smarter about their choices is over, some pundits expect confidence in the economic recovery to regain momentum.

A taste of that came from top Wall Street banks raising dividends after passing the Fed’s stress test. Morgan Stanley (NYSE:MS) delivered a big surprise that boosted its shares. Confidence in strong corporate earnings growth is intact.

The day ahead however sees cyclical-tilted European equities heading south with futures down around 0.2% amid rising COVID-19 infections in the UK and elsewhere. U.S. stock futures point to a steady start for Wall Street.

Japan’s Nikkei erased its gains as domestic infections surged ahead of the Olympics next month. In Australia, officials extended lockdown and social distancing measures to contain the Delta variant, putting the Aussie under pressure.

Focus will turn to the June eurozone flash inflation data and the U.S. ADP employment report, which could set the tone for Friday’s non-farm payrolls data. Ahead of that, the dollar steadied near recent peaks.

Finally, it’s worth keeping an eye on market warning signals. The SKEW index, which tracks demand for crash protection, hit a record high on Friday, indicating concern among institutional investors of a black-swan shock. The index was last just below that peak.

Key developments that should provide more direction to markets Wednesday: * China manufacturing slows as supply shortages roil Asiaindustry * Japan’s May factory output records biggest drop in a year * UK final Q1 GDP -1.6% Q/Q * Eurozone, France, Italy June flash CPI * U.S. ADP * Canada PPI * SNB releases Q1 FX purchases data

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Stock

Stock Markets25 minutes ago (Jul 16, 2021 05:46PM ET) (C) Reuters. FILE PHOTO: Johnson & Johnson’s Neutrogena Cool Dry Sport sunscreen, which is part...

Tech

Builders, creators and developers, this one’s for you! TechCrunch has always been about discovering fresh solutions and shining the light on exciting, new products...

Disclaimer: Wisegazette.com it's managers and its employees (collectively "The Company") do not make any guarantee or warranty about what is advertised or above. Information provided by this website is for research purposes only and should not be considered as personalized financial or health advice. Copyright © 2021 Wise Gazette. All Rights Reserved