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European shares end the session with declines

  
Analysis, Global Indices
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UK FTSE outperforms

The European shares are ending the session with declines.  The UK FTSE 100 the better than others on the GBPs weakness.
The provisional closes are showing:
  • German DAX, -1.06%
  • France’s CAC, -1.25%
  • UK’s FTSE 100, -0.10%
  • Spain’s Ibex, -1.02%
  • Italy’s FTSE MIB, -0.7%
In the European debt debt market, the benchmark 10 year yields are ending lower across the board. Declines range from -2.7 basis points to -3.6 basis points:
UK FTSE outperforms_

In other markets as European traders look to exit:

  • spot gold is trading up $6.05 or 0.34% at $1808.82. The low extended to $1790.79. The high for the day is near current levels at $1809.74
  • WTI crude oil futures are trading up $0.31 or 0.77% at $40.41 for the August contract. The September contract is also higher by $0.33 or 0.82% at $40.65
In the US stock market the Dow industrial average outperforms while the NASDAQ index get whipped around and volatile trading. The current snapshot shows
  • S&P index up 12.8 points or 0.41% at 3168.16
  • NASDAQ index down 2.6 points or -0.02% at 10391.16
  • Dow industrial average up 288 points or 1.11% at 26374
The NASDAQ index has whipped around in with the low falling -2.01%. The high extended up 0.42%.  The point range is around 250 points from low to high.

Nikkei 225 closes lower by 0.87% at 22,587.01

  
Analysis, Global Indices

Asian equities follow the declines from Wall Street overnight

Nikkei 14-07
It is a bit of a soggy mood in Asian trading with stocks ending on a weaker note, as we see the Hang Seng down by 1.7% and the Shanghai Composite also down by 2.0%.
This follows the late drop in US equities overnight, where the Nasdaq fell by a little over 2%. So far today, US futures are keeping little changed and that is more reflective of the current risk mood in the market.
Major currencies are keeping in narrow ranges as such, with EUR/USD seen at 1.1340 within a 15 pips range and AUD/USD at 0.6942 within a 23 pips range.

Nikkei 225 closes higher by 2.22% at 22,784.74

  
Analysis, Global Indices
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Asian equities buoyed to kick start the new week

Nikkei 13-07

It has been a solid session for Asian equities, with the Nikkei closing at a one-month high while we are also seeing the Hang Seng post 1.1% gains and the Shanghai Composite also seen higher by 1.9% currently.

The positive spillovers from US trading at the end of last week is helping, but also the fact that US futures are keeping more optimistic so far today.
Some market participants are pointing to this Pfizer, BioNTech vaccine story as a factor, following the more positive results that were reported two weeks ago here.
In any case, risk is on and the market is looking to keep the more positive mood going into European trading today. As such, the dollar is weaker across the board alongside the yen, with AUD/USD hovering around 0.6980 currently.

European stocks are close higher for the day

  
Analysis, Global Indices

Major indices are mixed for the week

The European stocks are closing higher for the day. All the major indices are closing in the black. For the week however, the results are mixed.

The provisional closes for the day are showing:
  • German DAX, +1.09%
  • France’s CAC, +0.88%
  • UK’s FTSE 100, +0.76%
  • Spain’s Ibex, +1.17%
  • Italy’s FTSE MIB, +1.2%
For the week, the German DAX led the way with a modest 0.78% gain. The results for the week show:
  • German DAX, +0.78%
  • France’s CAC -0.8%
  • UK’s FTSE 100, -0.89%
  • Spain’s Ibex, -1.18%
  • Italy’s FTSE MIB, +0.1%

US stocks overvalued, China’s shares more reasonably priced?

  
Analysis, Education, Global Indices

Via Bloomberg

I came across an interesting piece on Bloomberg’s market live blog yesterday making a case for Chinese shares offering better value compared to US stocks This was based on the valuations based on a price to earnings ratio. The price to earnings ratio is a widely used metric for investors to decide on a stock prices valuation. It is calculated by measuring it share price vs its earnings per share. A high p/e ration can mean that a companies stock is over valued.

Via Bloomberg If you take a look at the chart below you can see that the Nasdaq has a high blended forward P/E ratio just around the 10 mark compared to the other major indices listed. The forward P/E ratio uses future earnings guidance rather than trailing figures. For a run down on the different types of P/E check out this article here.
Nasdaq
Now the reason for the Nasdaq’s high p/e ratio is that technological stocks have raced higher on the hopes of increased tech spending, Working from home, spending on software and hardware, and increased moves towards digitalisation are all expected to boost profit hopes of the Nasdaq.

The question going forward as we come into earnings season is whether or not the Nasdaq’s increased stock valuation can withstand an overall shrinkage in the US stock market as a whole. On a bargain p/e basis this means Chinese shares may offer a more stable path to ongoing gains given their low valuations.
Shanghai Comp

Nikkei 225 closes higher by 0.40% at 22,529.29

  
Analysis, Global Indices

Asian equities see another positive day

Nikkei 09-07

Japanese stocks close higher, following sentiment from Wall Street yesterday, but gains have been tempered with after Tokyo reported a daily record of coronavirus infections – just before the government will relax further restrictions starting from tomorrow.

The Japanese government is expected to announce the easing of restrictions on large indoor events such as concerts and sports, allowing for between 1,000 to 5,000 persons to attend such gatherings or venues to fill up to 50% of capacity (whichever is smaller).
Elsewhere, the Hang Seng is up by 0.1% with Chinese equities pushing more solid gains once again with the Shanghai Composite trading up by 0.9%.
In the currencies space, the dollar is keeping a tad weaker but ranges for the most part remain tight with US futures not hinting at much ahead of European trading.
EUR/USD is looking to keep above recent swing highs of 1.1345-50 though, as the pair trades around 1.1360 levels to kick start the session.

European shares end mostly lower on the day

  
Analysis, Global Indices

The fall in US stocks stabilizes.

With the press conference from VP Pence more up beat on states like Arizona and Florida has helped to push stocks back in the black. The S&P index is currently up 0.15%.  The dow is up 0.03%. The NASDAQ remained a positive although the low percentage got down to +0.07%. The index is currently up 0.75%.
In Europe today, the major indices closed mostly lower with the exception being Portugal with a gain of 0.54%. The declines were led by Spain which fell -1.62%. The final numbers are showing:
  • German DAX, -0.97%
  • France’s CAC, -1.24%
  • UK’s FTSE 100, -0.55%
  • Spain’s Ibex, -1.62%
  • Italy’s FTSE MIB, -0.57%
  • Portugal’s PSI 20, +0.54%
The fall in US stocks stabilizes.

European shares end the session mostly lower

  
Analysis, Global Indices

UK FTSE 100 the weakest. Portugal’s PSI 20 strongest

The major European indices are ending the session mostly lower. The UK FTSE 100 was the weakest of the major indices. The Portuguese PSI 120 was the strongest.  Italy’s FTSE MIB was unchanged.

The final numbers are showing:
  • German DAX, -0.92%
  • France’s CAC, -0.66%
  • UK’s FTSE 100, -1.46%
  • Spain’s Ibex, -1.27%
  • Italy’s FTSE MIB unchanged
  • Portugal’s PSI 120+0.89%
Below are the percentage changes including the percentage high and percentage low ranges for the trading day today.
UK FTSE 100 the weakest. Portugal's PSI 20 strongest_In the US market, the NASDAQ index remains higher. The S&P index did move into the black briefly, but the Dow industrial average remains negative on the day at -0.69%. The S&P index and NASDAQ index are on a 5 day winning streak.
In the European debt market, the benchmark 10 year yields are mixed/mostly lower. German yields rose 0.4 basis points. France 10 year yields are unchanged. The rest of the major countries saw yields decline with Italy down -3.6 basis points on the day.
European benchmark yields
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