Global Stock Markets Ended Mixed After Wall Street Records

Highlights:

• USA
  The S&P 500 advanced by 0.15% or 6.70 points, to 4,486.23. The Nasdaq  exceeded 15,000 points for the first time, adding 0.52% or 77.15 points, to 15,019,80.
  Meanwhile,  the Dow Jones gained a slight 0.09% or 30.55 points, to 35,366.26.
• ASIA
  The Nikkei slipped by 0.03% or 7.30 points to 27,724.80.
  The Kospi climbed by 0.27% or 8.51 points to 3146.81.
  The Hang Seng Index fell by 0.13% or 33.97 points to 25,693.95. 
• EUROPE
  The EuroStoxx 50 Index traded with an advance of 0.19%. The Stoxx 600 was up by 0.15%. Also, the FTSEurofirst added 0.13%.

Wall Street set new records after the vaccine’s approval

Wall Street extended yesterday’s gains on Tuesday. The New York stock market registered records in two of its leading indicators, the S&P 500 and the Nasdaq. 

The S&P 500 advanced by 0.15% or 6.70 points, to 4,486.23. The Nasdaq exceeded 15,000 points for the first time, adding 0.52% or 77.15 points, to 15,019,80. Meanwhile, the Dow Jones gained a slight 0.09% or 30.55 points, to 35,366.26.

Wall Street got a boost due to the full approval of Pfizer and BioNTech vaccines in the US. According to Peter Cardillo, chief market economist at Spartan Capital Securities, full approval means there will be more mandates to get the vaccine to get back to the office. Even though it will not get everyone vaccinated, it will drive the rate of vaccination closer to 75%.

What to expect at the Fed meeting?

The market is still waiting for the central bankers meeting taking place in Jackson Hole on Friday, which will give clues on monetary policy. Jefferies managing director David Zervos stated that he does not expect a lot of fireworks at the meeting since it is not time to start talking about tapering. The US central bank has been buying about $120 billion a month of Treasury securities and mortgage bonds to help support the economy during the coronavirus pandemic.

By sectors, energy companies received the most significant gains, increasing by 1.61%. At the same time, non-essential goods added 0.76%, and basic materials climbed by 0.67%.

Essential goods firms were the most affected, dropping by 0.76%. The real estate sector followed it with a loss of 0.72%.

Among the 30 major companies listed on the Dow Jones, Dow Inc increased the most, climbing by 1.93%. Goldman Sachs followed it with a rise of 1.77%. Caterpillar’s increase was also noteworthy, growing by 1.65%.

As for the losses, Johnson & Johnson slipped the most and shed 1.25%. 

Walmart also lost a significant 1.03%.

Nikkei Fell Slightly after 3 Days of Gains

The Nikkei average fell slightly for the first time in 3 days. The main index of the Tokyo Stock Exchange slipped by 0.03% or 7.30 points to 27,724.80. 

The Topix added 0.08% or 1.46 points, to stand at 1,935.66.

The paper industry and the retail sector reaped the main losses. Meanwhile, the steel and transport equipment sector led the gains.

The Softbank group, the Japanese communications giant, accumulated the largest number of operations of the day and advanced by 0.55%.

The number of transactions by Nippon Yusen followed it, gaining 0.38%. Meanwhile, the car manufacturer Toyota Motor advanced by 2.35%.

The semiconductor manufacturer Lasertec climbed by 0.35%. At the same time, Shionogi, the local company that develops a vaccine against the coronavirus and treatments for the disease, registered a rise of 4.65%.

In the first section, 1,057 companies fell. In contrast, 997 firms advanced, and 131 closed unchanged. The trading volume amounted to 2.11 trillion yen. 

The Kospi Advanced after Wall Street Gains

The Kospi closed with solid advances due to net buying by foreigners and institutions. It started the day with force after the rises of the two previous sessions, spurred by optimism among investors about the maintenance of stimulus measures from the US Fed. The main index of the South Korean Stock exchange climbed by 0.27% or 8.51 points to 3146.81. 

Foreigners and institutions net bought 29.7 billion won and 21.9 billion won, respectively. On the other hand, individuals net sold 26.4 billion won.

By industry, the road and rail transport sector added 3.75%. Independent electricity generation and energy trading increased by 2.99%, building materials added 2.75%, health care companies and services gained 2.68%, and chemicals rose by 2.36%. 

In contrast, life science tools and services slipped by 1.02%, and household goods lost 0.66%. Also, cosmetics declined by 0.57%, and retail food and basic groceries fell by 0.56%. 

Among the top stocks by market capitalization, Samsung Electronics finished trading with an increase of 0.13% at 75,700. Kakao added 1.34%, Samsung Biologics climbed by 0.73%, LG Chem gained 1.52%, and Samsung SDI rose by 0.78%.

SK Hynix slipped by 1.43%, NAVER lost 1.60% and Kakao Bank shed 3.86%. 

Hang Seng Dropped by 0.13%

The Hang Seng Index fell by 0.13% or 33.97 points to 25,693.95. Meanwhile, the Hang Seng China Enterprises Index declined by 0.25% or 22.65 points to 9,076.03.

The technology index managed to rise by 3% but eventually ended with a gain of 0.20%. Internet platform stocks continued to advance. Bilibili rose by 5%. Also, NetEase rose 2%, and Tencent added 0.21%. On the other hand, Ali slipped by 1.8%.

All the sub-indices closed with slight losses. Real Estate slid by 0.06%, Services shed 0.08%, Commerce and Industry lost 0.11%, and Finance dropped by 0.19%.

China Telecom’s A-shares fell three consecutive times and continued to approach the issue price, dragging down the telecommunications stocks listed in Hong Kong. China Mobile slipped by 0.75%, China Unicom lost 1.14%. Meanwhile, China Telecom saw buying after a drop in early trading, adding 0.36%.

JD Health (6618 HK) had revenue of RMB 13.6 billion in the first half of the year, compared with RMB 8.78 billion in the same period last year. The company’s stock price rose 3.2%.

The outlook for the gaming industry Kingsoft was unstable, and its share price fell by 21.04%.

Shanghai signed a contract with China Shipbuilding Corporation to jointly expand and strengthen the ship and offshore equipment industry system and settlements. China Shipbuilding Industry Corporation surged. China Shipbuilding Defense posted an increase of 9.57%.

European Stocks Rise Pending the Fed meeting

 The main exchanges on the European stock market edged up slightly on Wednesday. Investors’ attention are already focused on the intervention of the annual Jackson Jole central bankers meeting. 

At the time of writing, the EuroStoxx 50 index was trading with an advance of 0.19%. The Stoxx 600 was up by 0.15%. Also, the FTSEurofirst added 0.13%.

Utilities on the Stoxx registered the largest decline in Europe, sliding by 0.18%. On the other hand, the transport and leisure sector progressed strongly, climbing by 0.76%.

 Adidas and Puma posted considerable gains. Adidas climbed by 1.33%, and Puma was trading with a rise of 1.22%.