Closing Report 04.08.2021

European markets pushed by positive business activity 

AMERICAN MARKETS MID DAY

Us major indexes fell on Wednesday as the number of jobs in the US private sector rose by 330 000 in July, falling below expectations. In earnings-related moves, General Motors plummeted 8.5% even after publishing profits for the Q2. Meanwhile, energy stocks sank 2.2% on the back of lower oil prices and the banking stocks also slipped by 0.8% due to concerns around slowing economic growth and fresh corronavirus concerns. The US 10-Year Bond is up 1.11% to settle at 1.187%.

EUROPEAN MARKETS CLOSING

European stock markets traded higher thanks to positive business activity. Thales rose 1.9% after the French aerospace company announced today that it was in advanced talks to sell its railway signaling business to Japan’s Hitachi for around $2 billion. Rolls-Royce stock rose 1.8% after the British engine maker agreed to sell its Norwegian ship engine business Bergen to UK-based Langley Holdings, for around $130 million. Commerzbank stock fell 4.5% after the German lender recorded a second-quarter loss as it continues with its major restructuring, involving hundreds of branch closures and 10,000 job cuts. On the data front, Germany and the United Kingdom signaled services sector has continued expansion at a great pace during July despite landing below market estimates.

ASIAN PACIFIC MARKETS CLOSING

Asia-Pacific region traded mostly higher today after both China and Japan released data where the seasonally adjusted Caixin China General Services Business Activity Index stood at 54,9 in July, topping estimates and the seasonally adjusted figure showed Jibun Bank Japan Services Business Activity Index down to 47,4, below the neutral 50. Meanwhile, Toyota Motor Corporation publish an increase of 72% in revenue to $72,8 billion in Q1.

COMMODITIES & FOREX MARKETS

The US Energy Information Administration reported that commercial crude oil stockpiles in the United States increased by 3.63 million barrels to 439.2 million barrels in the week ending July 30
The London upgrade on Ethereum is working as planned, pushing the crypto-currency by more than 8%

Robinhood trading session stoped due to volatility 

Robinhood (HOOD) was temporarily halted for volatility this morning as the stock spiked 65% in the first minutes of trading. The upward spike comes a day after the investing platform’s stock spiked 24%. Robinhood is one of the most mentioned stocks on Reddit’s WallStreetBets, according to SwaggyStocks. The stock’s comment volume has spiked over the last two days. Last week Cathie Wood’s Ark Innovation ETF scooped up about 4.9 million shares of Robinhood, according to Bloomberg data.

Investors are keeping a close eye on the stock following Robinhood’s public debut last Thursday. Some questioned wether its lackluster performance had anything to do with Robinhood’s hybrid auction-style debut, a lack of lock-up period for 15% of shares held by employees and others, or concerns over regulatory headwinds. Robinhood has been a key player in the retail trading boom involving GameStop and other stocks over the past year-and-a-half.