WELCOME TO GODSTARTER

  • Asian Stocks Rise On Vaccine Hope; Havens Steady: Markets Wrap
  •  


    (Bloomberg) -- Stocks dropped on speculation that this month’s rally has outpaced prospects for an economic rebound amid a surge in coronavirus cases around the globe. Treasuries fell.

    CONSTELLATION BRANDS, INC.

    The S&P 500 fell as a slide in technology shares outweighed gains in industrial and energy companies. The Nasdaq 100 slumped as much as 2.7% on Tuesday. Amazon.Com Inc. Sank as the online-retail giant faced an antitrust complaint from the European Union, while American depositary receipts of Alibaba Group Holding Ltd. Tumbled after China tightened the scrutiny over internet behemoths. Beyond Meat Inc. Plummeted after the plant-based burger maker reported sales that trailed Wall Street estimates. The Dow Jones Industrial Average outperformed as Boeing Co. Surged on news that regulators could lift the 737 Max grounding as soon as next week.

    After all the enthusiasm that lifted global stocks Monday and sent havens into a tailspin, some analysts said the moves may have gone too far as tough questions remain unanswered. The coronavirus shot still has several hurdles to clear, and there’s concern over U.S. Fiscal stimulus, the transition of power to President-elect Joe Biden and surging virus cases. Despite the uncertainties, this month’s equity rally put the S&P 500’s valuations near the highest levels since the dot-com era. © Bloomberg Nasdaq pattern could signal further dips for tech-heavy index

    “You still have a tremendous amount of uncertainty out there, and while equities may continue to climb a wall of worry, the stock market is still subject to the rules of gravity,” said Jonathan Boyar, managing director at Boyar Value Group.

    With the Nasdaq Composite Index down for a second straight session, an ominous double-top pattern has formed. That should put all eyes on the 50- and 100-day moving averages as the first and second line of support for the tech-heavy stock gauge. Megacaps extended the slide that accompanied Monday’s rotation out of pandemic favorites and into value stocks, and potentially setting up a test of the 11,000 level around the 100-day line.

    Meanwhile, China unveiled regulations to root out monopolistic practices in the internet industry, seeking to curtail the growing influence of corporations like Alibaba and Tencent Holdings Ltd. The rules, which sent both stocks tumbling and sparked a wider selloff in the Asian nation’s equities, landed about a week after new restrictions on the finance sector that triggered the shock suspension of Ant Group Co.’s $35 billion initial public offering.

    Traders also monitored an array of Federal Reserve speakers Tuesday for clues on policy after optimistic news about a coronavirus vaccine on Monday sparked a rebound in wagers for central-bank rate hikes starting in late 2023. Fed Bank of Dallas President Robert Kaplan said “the jury is out on the fourth quarter because of the resurgence of the virus.”

    These are some key events coming up:

    Alibaba holds its annual Singles’ Day on Wednesday, an online global shopping phenomenon that had $38 billion of sales last year.European Central Bank President Christine Lagarde, Bank of England Governor Andrew Bailey and Federal Reserve Chairman Jerome Powell are among the speakers Thursday at an online ECB Forum entitled “Central Banks in a Shifting World.”U.S. CPI data for October is due on Thursday.Finance ministers and central bankers from the Group of 20 hold an extraordinary meeting Friday to discuss bolder action to help poor nations struggling to repay their debts.

    These are some of the main moves in markets:

    Stocks The S&P 500 fell 0.3% at 1:22 p.M. New York time.The Stoxx Europe 600 Index increased 0.9%.The MSCI Asia Pacific Index climbed 0.1%. Currencies The Bloomberg Dollar Spot Index dipped 0.1%.The euro rose 0.1% to $1.182.The Japanese yen strengthened 0.1% to 105.29 per dollar. Bonds The yield on 10-year Treasuries rose two basis points to 0.94%.Germany’s 10-year yield climbed two basis points to -0.49%.Britain’s 10-year yield increased three basis points to 0.401%. Commodities The Bloomberg Commodity Index gained 1.7%.West Texas Intermediate crude increased 2% to $41.08 a barrel.Gold strengthened 1% to $1,881.99 an ounce.

    For more articles like this, please visit us at bloomberg.Com

    ©2020 Bloomberg L.P.

    No comments:

    Post a Comment