Darren Sinden from educational provider Trade Uni discusses the latest market moves.
Equity markets poked their heads above the parapet yesterday. The Nasdaq 100 and S&P 500 were up 0.8% and 0.2% respectively, driven by Tesla which rallied by almost 22% on the day, following earnings released after hours on Thursday. However, the Dow Jones fell by 0.3%. In the US, the consumer discretionary sector has been the best performer over the last week but has only added 0.89%, gains that can also be attributed to Tesla’s performance yesterday. The materials sector is the big loser in the US over the last week, falling by 2.94%. The fallers in the sector include Newmont Mining, down 12.8% on the week, Nucor which fell by 10.6% and Sherwin-Williams which lost 7%.
In Europe, the Dutch AEX rebounded by 0.7%, the Euro Stoxx 50 was up by 0.3% and the DAX Midcap added 0.4% and is now flat on the year to date. Among the Euro Stoxx 50 members, Danone (up 2.8%), LVMH (up 2.5%) and Deutsche Post (better by 2.1%) were the principal gainers, while Linde (down 1.3%), Vivendi (down 1.1%) and Santander (down 1%) were the main fallers. At a sector level in Europe this week, travel and leisure stocks have performed well, adding 2.6%, while the insurance sector has been moving in the opposite direction, falling 3% over the past five trading days, led lower by a 5.9% fall in the value of Munich Re and falls of more than 3% at SCOR and Sampo.
Turning to other markets, crude oil continues to rebound and is trading higher once more in Europe this morning. WTI is better by 0.41%, and Brent by 0.44%. Both flavours are now up by more than 2% on the week and between 4% and 5% over the last month. UK Natural Gas is also increasing in price and has opened up by almost 10% this morning, part of a 33% gain over the years to date. Gas is the UK’s marginal source of power generation so these price changes feed into electricity costs. Gold and silver are lower this morning, with silver falling by 0.5%. US 10-year treasury bond yields have fallen back below 4.2%, the dollar index is broadly unchanged, and the Aussie and New Zealand dollars have lost ground against the greenback this morning, while USD/JPY is testing back towards ¥152.
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