Markets Update Tuesday 09/02/2021 – Respire

Frankfurt – 09/02/2021

Respire

After a record-hunt Monday with new all-time highs almost everywhere we looked, today’s trading sentiment was rather calm, and most markets went into consolidation.

Still, nothing has changed, and investors and traders alike focus their attention on further aid packages, combined with vaccine hopes to combat the lockdown situations in many countries. 

The digital asset space also got a little quieter today but continues with its overall bullish sentiment.

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US Markets at a glance

The world’s leading stock exchange in New York posted a new record day, but the upswing lost momentum. The leading US indices only added a few points to their recent highs, and in the end, the picture was mixed.

The Dow Jones started the day 0.08 per cent lower at 31,359.88 points and hovered around the zero line. In the end, the US leading index went into the evening with a slight discount of 0.03 per cent at 31,375.04 points. Meanwhile, the NASDAQ Composite posted moderate gains, ending the day up 0.14 per cent at 14,007.70 points, crossing the 14,000 mark for the first time. The market-wide S&P 500 index closed 0.11 per cent lower at 3911 points – but still marked a new record high at 3918 points, albeit only three points above the old one.

Investors on the US stock market took it a little easier after the previous day’s record hunt. There was no economic data on the agenda on Tuesday, but there were some quarterly reports. Cisco, Twitter and Lyft will present their figures for the past quarter after the market closes. DuPont and Canopy Growth, on the other hand, already published their quarterly figures in the pre-market.

Far East Markets at a glance

The Asian markets continued to rise slightly today. Japan’s benchmark Nikkei index ultimately gained 0.4 per cent to 29,505.93 points. Meanwhile, in mainland China, the Shanghai Composite climbed 2.01 per cent to 3,603.49 points, while Hong Kong’s leading index, the Hang Seng, rose 0.53 per cent to 29,476.19 points.

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On Tuesday, the Asian stock markets were able to build on the positive sentiment from the US on the previous day, even if it was not enough for new records. Investors continued to focus on hopes for a new massive US stimulus package.

European Markets at a glance

Similar to the USA, the European stock markets also took a breather today. The EuroSTOXX 50 ultimately ended the day down 0.21 per cent at 3,661.13 index units. 

After the record chase of the previous day up to 14,169 points, the leading German index also consolidated today, but just held the 14,000 point mark. The DAX closed at 14,011 points, a daily loss of 0.3 per cent while the TecDAX was little changed at the start of trading, but then also fell. At the end of the session, it was down 0.79 per cent at 3,497.91 points.

Investors continued to focus on the hope of a US economic stimulus package worth billions. Even though it is not yet clear to what extent the stimulus will actually be implemented, another aid package’s expectation has already led to a rise in yields on the US bond market. Moreover, it is rumoured that rising market interest rates could lead to more takeovers.

Forex, gold, oil and crypto

On the foreign exchange market, the euro continued to move upwards. The common currency gained around 0.6 per cent to 1.2119 dollars in late trading. This means that the recent short-term correction of the euro’s longer-term upward movement already seems to be over. 

Due to the somewhat more restrained mood on the financial markets, oil prices no longer trended too strongly. North Sea Brent’s barrel price rose by 15 cents to 60.70 US dollars, while WTI light oil fell by 8 cents to 57.88 US dollars. 

Gold prices trended higher again today, but couldn’t move past the resistance level at $1,848, closing at $1,838 US dollars per troy ounce.

Finally, cryptocurrencies continue to enjoy the spotlight, and many of the top coins per market capitalisation continued their upward movement. Bitcoin held its high level at around $47,000 per coin, while Ethereum gained a further 1.5 per cent to $1,765. Meanwhile, the smart contracts project Cardano firmly claims the number 4 spot in the cryptoverse, growing yet another 5 per cent to $0.72. XRP and Stellar also continue to rise, even though at a slower pace than some other coins and tokens. XRP is currently trading at $0.4730, a daily plus of 3.5 per cent and Stellar crossed the $0.40 mark with a daily gain of 2.3 per cent to $0.4030. 

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Corporate and world economic news

Economic data

The German economy slightly increased its exports in December despite the corona crisis. Exporters sold 0.1 per cent more abroad than in the previous month, adjusted for calendar and seasonal effects, as reported by the Federal Statistical Office (Destatis). Economists surveyed by Dow Jones Newswires, however, had expected a decline of 0.5 per cent. Compared to the same month last year, exports were 2.7 per cent higher.

Imports fell by 0.1 per cent in December compared to the previous month. Over the year, an increase of 3.5 per cent was recorded. Compared to February 2020, the month before the start of the corona pandemic in Germany, exports were 4.6 per cent lower and imports 0.1 per cent lower, adjusted for calendar and seasonal effects.

In 2020 as a whole, exports fell by 9.3 per cent and imports by 7.1 per cent. On the export and import side, these are the highest year-on-year declines since the financial and economic crisis in 2009.

Reddit receives multi-million dollar cash injection

The online platform Reddit, which has come into focus as a gathering place for hobby-investors due to the recent stock market turmoil, has raised fresh money. More than 250 million dollars (207 million euros) have been raised from investors, the company announced in San Francisco on Tuesday night.

According to US media, Reddit was valued at six billion dollars, doubling its last funding round in February 2019. The company is considered the most extensive online discussion platform and has seen strong growth. Reddit recently counted more than 52 million daily active users.

A significant reason for the recent rush is the forum “Wallstreetbets” – a stomping ground for small investors who organise themselves on the internet. The amateur speculators recently had a spectacular showdown with some large hedge funds in betting on shares such as the video game retailer GameStop.

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