Global stock markets rise on optimism
Wall Street resumed its gains for the third day, with the Dow Jones adding 0.07%, the S&P 500 rising by 0.20%, and the Nasdaq adding 0.36%.
The Kospi hiked by 0.13% due to the market optimism.
Hang Seng sank by 1.45% or 401.86 points to 27,321.98.
Indian markets closed in the green, Sensex adding 0.26% and Nifty rising by 0.20%.
The STOXX 600 Index was trading with an increase of 0.4%.
Wall Street is on the third consecutive day of gains
Wall Street continued its rebound on Thursday. The Dow Jones closed with a rise of 0.07 or 25.35 points to 34,823.35. The gains were driven by the technology sector but weighed down by unemployment figures that came up worse than expected.
The selective S&P 500 rose by 0.20%, or 8.79 points, to 4,367.48.
Meanwhile, the Nasdaq gained 0.36% or 52.64 points and ended at 14,684.60.
The New York stock market experienced renewed optimism in the face of the business results to be presented next week, including Microsoft, Apple, Facebook and Alphabet.
Microsoft shares increased more than 1% throughout the day after Citi raised its share-price estimate. It proved that the technology giant has the potential to exceed Wall Street expectations on Tuesday.
Despite Monday’s poor session, in which the Dow fell more than 2%, markets have extended the rise this week. The Wall Street benchmark is now less than 1% from its latest record.
Ron Temple, Lazard Asset Management representative, stated that the economy is still on a robust rebound, corporate earnings and profits plummet.
However, the New York stock market was influenced by poor unemployment figures. They increased to 419,000, which is above the expected 350,000.
The technology sector was on the rise, while financial stocks had an unfavourable session
Financial sector stocks, which traditionally move in line with the economy, had a bad session. Bank of America, JP Morgan and Wells Fargo lost more than 1%.
By sector, technology was the one that registered the highest gains rising 0.71%. It was followed by a health sector which added 0.66%. At the same time, non-essential consumer goods increased by 0.58%, and telecommunications gained 0.41 %. Meanwhile, energy slipped by 1.13%, the financial sector lost 1.04%, and real estate shed 0.69%.
Among the thirty Dow Jones stocks, Salesforce led the earnings to increase by 2.55%. Microsoft followed it with a rise of 1.68%. Nike advanced by 1.61%, and Dow profited by 1.26%. As for the losers, Travelers Table recorded the biggest drop yielding 2.69%. JP Morgan Chase followed it with a loss of 1.26%. Meanwhile, Chevron shed 1%, and Walt Disney slid by 0.99%.
Optimism drives Seoul up
The Seoul stock exchange advanced today thanks to the optimism generated by Thursday’s meeting of the European Central Bank in the face of more durable flexible monetary policies.
The Kospi hiked by 0.13% or 4.21 points at 3,254.42. Meanwhile, the Kosdaq technological index advanced by 5.25 points or 0.5% to 1,055.5.
On Thursday, the ECB announced that it would maintain its accommodative policy until it meets its inflationary objective of 2%. It aroused investor appetite today. So did the expectations of good financial results that several leading South Korean firms will present next week.
However, the persistence of COVID-19 infections in South Korea, where the most challenging level of restrictions lasted another two weeks in Seoul today, limited further increases. In turn, it led to mixed closures.
Samsung Electronics, the most valued asset on the Kospi, lost 0.5% today. Meanwhile, SK Hynix, the second-largest chipmaker in the country, plunged by 0.84%.
In contrast, the operator of the main national internet search engine, Naver, advanced by 2.73%. Kakao, owner of the largest South Korean messaging application, rose by 1.36%.
In the biopharmaceutical sector, Samsung Biologics added 1.02%. However, its competitor Celltrion decreased by 0.37%.
Hyundai Motor, the largest South Korean automaker, slipped by 1.31%.
The technology sector weighed down the Hang Seng
Hang Seng suffered a slip of 1.45% or 401.86 points to 27,321.98 due to the falls of the large Chinese technology companies.
Meanwhile, the Hang Seng China Enterprises, the index that measures the behaviour of mainland Chinese companies, dropped by 1.67%.
All sub-indices closed in the negative territory. Commerce and Industry slipped by 1.77%, Services lost 0.43%, Real Estate shed 0.74%, and Finance yielded 1.22%.
The large digital firms in the index closed in the red. Meituan plummeted by 2.36%, and Alibaba lost 1.06%. Also, Tencent slid by 2.39%, and Xiaomi posted a fall of 2.95%.
Haidilao restaurant chain suffered the biggest drop of the day, registering a decrease of 5.45%.
On the other hand, the pharmaceutical company CSPC Pharma advanced by 1.89%. It is among the six companies that closed in the green.
The Chinese state oil companies Sinopec and Petrochina finished the session in the red, yielding 0.82% and 1.50%, respectively.
The trading volume for the day was 139,580 million Hong Kong dollars.
Sensex ends at new closing high
Indian markets closed in the green on Friday. BSE Sensex added 0.26% or 138 points to end at 52,976. Meanwhile, the Nifty 50 index increased by 0.20% or 32 points at 15,856.
Bank Nifty finished 1.03% higher, passing the 35,000.
ICICI Bank was the biggest winner on Sensex, surging by 3.18%. It was followed by ITC, SBI, HCL Technologies, and Axis Bank.
As for the worst players of the session, Larsen & Toubro, Hul, Reliance Industries, and NTPC declined the most.
The debut rally helped Zomato shares reach a market capitalization of more than Rs 1 lakh crore. It left behind companies such as Tata Motors, Vedanta, Indian Oil and Mahindra & Mahindra. The Indian multinational restaurant aggregator’s share price soared to reach Rs 138 shortly after listing on Friday. It is more than 82% of the IPO price, helping investors make significant trading gains.
European stocks are on track to close the week positively
European stocks rose on Friday. They are heading to end the week higher due to the European Central Bank’s promise to maintain monetary support, which outweighed the risks of a resurgence in COVID-19 cases. Besides, the market is driven by optimism about the earnings season.
The pan-European STOXX 600 Index increased by 0.4%, hitting one-week highs.
The values of the automakers advanced the most in the first operations.
French auto parts maker Valeo soared by 8.1% after posting a rise in sales and profits in the first half of 2021. The company stated it expected the semiconductor shortage to narrow. As for its rivals Faurecia and Continental AG, they scored 5.6% and 3%, respectively.
Aircraft maker Rafale, Dassault Aviation, increased by 7.1% after reporting a rise in sales and profits in the first half of the year. At the same time, British mobile operator Vodafone added 2.6%. The gains followed the firm’s reports about a 3.3% increase in first-quarter service revenue, which was better than expected.
Later in the day, IHS Markit will release July manufacturing and services activity readings for the eurozone and the UK. The numbers are forecast to decline compared to robust June data.