Closing Report 21.07.2021

Europe surges despite delta variant worries

AMERICAN MARKETS MID DAY

After the recent drop, Wall Street erases some losses as US indexes are in the green at Mid-Day and remains near all-time highs. Dow Jones advances by 0.72%. Coca-Cola posts revenue of $101.1 billion in Q2 (YoY), up by 42%. Moreover, J&J revenue in Q2 rises to $23.3 billion (YoY), up by 27%. Q2 revenue of Verizon jumps by 10.9% YoY, to $33.8 billion. SalesForce acquires Slack. Meanwhile S&P 500 is 0.62% up. Gains for Tech shares is slightly lower as NASDAQ 100 grows by 0.30%. US 10Y yield is higher and reaches 1.29% after dipping below 1.14% yesterday. Moody’s says the Infrastructure Bill could strengthen long-term economy growth. The Bill hasn’t been voted and applied yet.

EUROPEAN MARKETS CLOSING

European shares close mostly higher and extends gains from yesterday. In the United Kingdom, travel and leisure stocks lift the market. FTSE 350 Travel & Leisure soars by 4.38% today. FTSE 100 closes slightly below 7,000 points and takes 1.70%. International Consolidated Airlines surges by 5.58% for example. Commodities stocks also lift the index. Today, a few German companies released their EPS. Most of them beat forecast. Daimler and SAP both post EPS above estimates. In France, CAC 40 advances by 1.85%. Regarding its components, the only stock to decline is Sanofi (-0.07%). Several stocks grow over 4% today. Overall, Stoxx Europe 600 takes 1.65%.

ASIAN PACIFIC MARKETS CLOSING

Asia-Pacific markets mostly closed higher. KOSPI and VN Index respectively lost 0.52% and 0.20% today. Vietnamese shares tumbles on Monday but erases some losses the following day. VN Index has been falling since early July. On Chinese markets, SSE Composite and CSI 300 climbed by 0.73% and 0.69% on Wednesday. Foreigners were net buyer on Stock Connect for the third time in a row. On STAR, the Chinese tech-focused market, SSE STAR 50 jumped by 2.82%. In Hong Kong, shares were mostly down. Nikkei 225 puts an end to a 5-day losing streak and gains 0.58%. Japanese markets will be closed until Monday due to national holidays. Olympic Games will start this weekend, without foreign tourists.

COMMODITIES & FOREX MARKETS

• After a sharp drop, crude oil prices surge, and Brent and WTI barrels go back above $70
• Oil inventories in the US are up by 2.1 million barrels
• Over the last weeks, Lumber prices have plummeted
• BTC and other cryptocurrencies surge as global markets go up
• EUR slips against major currencies

Focus on Semiconductors

The world faces a chip and semiconductor shortage. The economic recovery and demand put pressure on supply and manufacturing. The overall semiconductor market stays diversified and shows different poles.