European equity close: Strong finish with Italy and Germany lagging on the week

Closing changes for the main European equity bourses:

  • UK FTSE 100 +0.3%
  • German DAX +0.8%
  • French CAC 40 +1.0%
  • Italy MIB +1.1%
  • Spain IBEX +1.3%
On the week:
  • UK FTSE 100 +0.8%
  • German DAX -0.4%
  • French CAC 40 +1.4%
  • Italy MIB -1.0%
  • Spain IBEX +1.4%

When you factor in currency, the FTSE 100 was the strongest on the week. The market itself is fighting against GBP strength, but there is a lot to like in this chart, particularly for foreign investors:

Closing changes for the main European equity bourses:

Nikkei 225 closes lower by 0.72% at 30,017.92

The equities rally takes more of a breather towards the end of the week

Nikkei 19-02
Japanese stocks see the momentum in getting above 30,000 ease a little as risk sentiment in general looks to be more weary ahead of the weekend. That said, the Nikkei still posted 1.7% gains on the week so that’s more indicative of the bigger picture.
Chinese equities are still looking rather mixed and playing catchup after the long break, with the Hang Seng down 0.2% but the Shanghai Composite is up 0.5%. However, both are trading at the highs right now as we look towards the latter stages of the session.

Elsewhere, US futures are down but off earlier lows at least with S&P 500 futuress seen down ~0.15% as we look towards European morning trade today.

That is keeping the risk mood more tepid in general with the market still weighing up the moves in the bond market earlier in the week, among other things.

US Treas Sec Yellen speaking on stocks now – valuation very high, need to be careful

US Treasury Secretary Yellen says in the current low-interest rate environment valuations are very high

  • Need to be careful in some sectors
  • increased prevalence of zero commission trading has spurred retail investors to get more involved in the market
  • SEC will prepare a report on trading volatility, need to see if trading practices are consistent with investor protection
  • Biden admin in process of evaluating approach toward China
  • we have an opportunity to work with allies and address China’s unfair practices
  • is looking at if tariffs work
  • expects China to adhere to commitments made on trade
  • US tariffs in place on China’s goods will remain for now, evaluating what is appropriate going forward

US Treas Sec Yellen says hoping to see progress on stimulus bill in the next 2 weeks

US Treasury Secretary Yellen speaking on a CNBC interview

  • if the unemployment rate is measured properly its close to 10%
  • important to have a big rescue package
  • benefits of a big package will far outweigh the costs in the long run
  • the Federal Reserve has the tools to deal with inflation
  • inflation is a risk but the bigger risk is having the pandemic take a permanent toll on people’s lives
  • details of Biden’s infrastructure plan not finailised
  • tax increase would likely be used to pay for part of Biden’s infrastructure package to be proposed later this year

S&P & NASDAQ post 3 day losing streak. Dow breaks 2-today record close streak

Dow closes lower for the 1st time in 4 days

The major US indices close lower across the board. The S&P and NASDAQ extended the losing streak to 3 days. The Dow meanwhile joined those indices after 2 consecutive days of record closes. The indices tried to rally in the last hour but reversed lower into the close.  The S&P and NASDAQ 3 days streak lower is the longest in 2021

A snapshot of the final numbers shows:
  • S&P index -17.34 points or -0.44% at 3913.98
  • NASDAQ index -100.14 points or -0.72% at 13865.35
  • Dow industrial average -119.68 points or -0.38% at 31493.34.
Below are the percentage changes and ranges for each of the major indices and North America and Europe. There were no major indices that closed in the black today.
Dow closes lower for the 1st time in 4 days_
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