Global stock markets trading almost flat

The main stock exchanges in Europe, led by the EuroStoxx 50, seem determined to emphasize the process in which they have been immersed for several weeks. They are waiting to learn more about the state of the global economic recovery from the pandemic and the pressures that it may generate on prices. It would endanger an accommodative monetary policy like the current one. Meanwhile, the most important indicators of the continent are they proceed with hardly any changes that alter their trend. 

The selective benchmark in Europe yesterday managed to score rises lower than half a percentage point, allowing it to remain above the old resistance of 4,040 points. Analysts warn it is the support level not to lose to keep moving towards 4,300 points. There would be correction or consolidation that could seek support at 3,785-3,800 points in case of losing these supports. It is the range that analysts suggest to wait before making new purchases oriented to the medium term with an initial objective of 4,575 points.

The evolution of the dollar has been at the center of attention. After the sharp drop in its price since April, the US currency has been trying to reverse the situation with some glimpses of economic recovery that would check the Fed’s current accommodative monetary policy.

Recent hours upward movement of the greenback has slowed the advance of the euro against the dollar. The pair has plunged below the area of ​​1.2270 dollars per euro.

European stocks open higher pending Germany’s market survey

The European stock markets have started the session this Tuesday on the rise. The markets have their expectations set in the publication of the ZEW survey in June in Germany.

The leading European markets started the day with slight increases. Madrid increased by 0.35%; Paris and Milan added 0.15% both, and London advanced by 0.09%.

The Euro Stoxx50, which groups together the main European companies, also expanded by 0.08%.

In the debt market, the interest on the German bond, considered the safest, sank to 0.207%.

Hang Seng slid despite the rise of the real estate companies

The Hang Seng, the Hong Kong Stock Exchange benchmark index, fell by 0.02% today. It happened despite the good day that real estate companies starred, one of the engines of the local economy.

The selective dropped 5.9 points to 28,781.38. Meanwhile, the Hang Seng China Enterprises lost 0.17%.

Commerce and Industry were the only ones to close the session in the red. The sector dropped by 0.37%. In contrast, Finance ended the day with an increase of 0.18%. The services sector gained 0.74%, and Real Estate increased by 0.96%.

In Real Estate, only three companies recorded losses. Henderson Land decreased by 0.66%, CG Services yielded 0.32%, and Hang Lung Properties reduced by 1.12%. The earnings of the remaining nine companies experienced increases between the 0.45% increase of Wharf Reic and 2.4% of China Overseas.

As for the most pronounced losses, Sunny Optical, the maker of digital lenses, slumped by 3.8%. It was followed by the restaurant chain Haidilao, with losses of 2.84%. On the other hand, there have been juicy gains. The automaker BYD posted an increase of 6.27%.

Among the state oil companies, Petrochina slipped by 0.3%, Sinopec sank by 1.04%, and CNOOC expanded by 0.46%.

China Life was the only insurance company to close in green with a rise of 0.25%.

The business volume of the day was 122,640 million Hong Kong dollars (15,805 million US dollars).

Tokyo Stock Exchange closed mixed

The Tokyo Stock Exchange closed today due to investors’ caution on inflation in the United States and the lack of incentives.

The Nikkei benchmark index decreased by 55.68 points, or 0.19%, to 28,963.56. Meanwhile, the broader Topix indicator, grouping the securities with the highest capitalization, closed with an advance of 1.80 points or 0.9% to 1,962.65.

Wall Street opened the week almost flat

Wall Street opened this Monday almost flat. The Dow Jones gained 0.05%, while the selective S&P 500 touched a new record amid optimism about economic recovery.

Several minutes after the beginning of operations on the NYSE, the Dow Jones added 18.48 points to 34,774.87. At the same time, the S&P 500 rose by 0.03% or 1.07 to 4,230.96.

The composite index of the Nasdaq market, listing the leading technology companies, lost a slight 0.03% or 4.05 units, to 13,810.44.

The market opened the week almost unchanged compared to Friday when Wall Street ended with moderate progress in the face of a slower-than-expected recovery in the United States and uncertainty regarding the Federal Reserve’s policy.

Overall, however, investor sentiment remains optimistic regarding the economic recovery after the COVID-19 crisis.

Today, the real estate, energy, and health sectors led the advances. The real estate sector added 0.41%, increased by 0.36%, while the health sector gained 0.18%. On the other hand, non-essential consumer goods companies lost 0.18%). Commodities decreased by 0.14%, and technology yielded 0.10%, posting the highest losses.

Among the thirty Dow Jones stocks, the advance of Visa, IBM, and American Express stood out. Visa added 1.84%, IMB gained 0.69%, and American Express increased by 1.84%. As for losses, Intel dropped by 0.51%, MSD yielded 0.47%, and Apple lost 0.44%.

AMC grew by more than 14% on Monday. Meanwhile, the software group BlackBerry and the retailer GameStop climbed by about 13%.

This year will be difficult for investors to manage

Gergely Majoros, a member of the investment committee at Carmignac, believes this year will be transitory for monetary policy. After adjusting to the central banks’ support, the transition will be difficult for investors to manage. 

Janet Yellen, US treasury secretary, stated that it would be a plus if the US president’s multi trillion-dollar fiscal stimulus led to slightly higher rates.