Trading Review: Current Reports, Trends, Indices, Stocks, Bonds, Forex and Commodities and Analyst Recommendations
The FDA has fully approved the corona vaccine Pfizer . So far, the vaccine has been on the U.S. market under an emergency permit, obtained in December.
Pfizer’s vaccine is the first to receive full approval from the FDA – which caused the company’s stock to strengthen by 2.6%.
Trading on Wall Street opened up. The Dow Jones industrial average is up 0.6%, and the Nasdaq and S&P 500 are both up 0.5%.
Anvidia Increases by 2.7%, Intel Adds 1.3% andMicrosoft Decreases by 0.6%.
European stock markets continue to climb. The DAX is up 0.1%, Potsey is up 0.3% and Kak is up 0.8%.
Adidas shares are up 1.7%, Sanofi is down 1.1% and Sainsbury’s is up 15.4%.
Slight gains in US stock market indices. Early trading shows significant gains in equities Tesla , Robin Hood, rescued andModern .
After declines in recent weeks, oil contracts are now jumping more than 3%. In a weekly oil review by Dr. Gil Michael Befman, Leumi’s chief economist, and Benyahu Bolotin, an economist in the economics division, they write that “oil prices continued to fall in the past week, after falling in the first half of August. The price of BRENT oil fell to $ 64.77 a barrel at the end of the trading day and the price of a WTI barrel fell to $ 62.32. “This drop in price occurred against the backdrop of the spread of the Corona virus delta variant, along with an increase in OPEC +’s oil output in July and possibly with the market expecting the Fed to begin the process of reducing asset purchases which is expected to strengthen the dollar and hurt commodity prices.”
Looking ahead, Leumi estimates that “falling oil prices along with the spread of the corona virus delta variant, which raises fears of hurting demand, could cause the OPEC + group to postpone further easing of production quotas. This is in order to keep oil prices as stable as possible. “Oil prices are likely to rise by the end of the year, probably due to the expectation that developed countries, especially in countries where a significant part of the population is at risk, will not tighten restrictions, which is expected to keep market demand high.”
Trading on European stock exchanges opened in a positive trend. Trading in contracts on US stock market indices shows slight increases.
Against the background of the rise of Bitcoin, Shai Datika, founder and CEO of the crypto company INX, notes that “we are witnessing the transformation of bitcoin and digital assets into a legitimate asset in the investment basket of individuals, public companies and savings funds of all kinds. All this at the same time, to the world’s regulatory recognition of the field on the one hand, and outlawing activities in the field that are not under licensing and regulation on the other hand. “The turnover and profits of public companies in the field increase by tens and hundreds of percent a year, and on the other hand we see the regulator imposing fines on those who do not operate under licensing.”
Avi Selma, CEO of the Israeli representative office of Hyposwiss, says that “as long as the market receives an understanding of the leading players in it – including institutions and giant companies. This is how bitcoin will advance to become the new gold. “This is despite the fact that over time and consistently many forces have been working against it, from regulators around the world to the Chinese government – it still shows strength and should not be moved by the volatility that has characterized it since its inception.”
Asian stock markets are trading in a positive trend today, with leading stock indices climbing 1% -2%. Trading in contracts on US stock market indices shows slight increases.
Bitcoin jumped more than 3% and is now trading above the $ 50,000 threshold. Brent crude is up 1.7%.
Alex Zabrzynski, the chief economist of Meitav Dash, notes in his weekly review that recent events in China make it clear that the change in regulation in relation to technology companies will not be temporary or spot-on and reflects a broad change in the authorities’ approach to economic management. This was also evidenced by a series of new initiatives last week which dropped the China Golden Dragon index in the US by 8.3% and in total by 51% from the peak.
In addition, “China’s economic data was also negative. Retail sales, industrial production and investment were lower than forecast (a rather rare event in China) while declining growth rates to much lower levels than the pre-crisis average in 2019, especially in retail sales. Bottom line: Despite declines The sharpness in Chinese stocks is difficult to see as an opportunity in light of the circumstances. ”
As for the US, he notes that the US Federal Reserve’s impact on supply-side costs is quite limited. Therefore, inflation may remain high even if it takes monetary austerity measures, unless the Fed acts more aggressively to suppress demand. The monetary contraction on the financial markets is quite noticeable. “Since the 2008 crisis, the S&P 500 has averaged a return of 0.38% in those weeks when the Fed balance sheet increased, compared to an average return of 0.04% in the weeks when the FED balance sheet fell or remained unchanged.”