Global stocks remain stable as investors wait for retail sales.
Global stocks were mixed on Friday, as investors waited for new US economic data and a handful of earnings. The markets were also closely monitoring developments around the rapidly spreading Delta variant of the coronavirus that causes Covid-19.
Nikkei Index 225
fell 0.9% after the
Bank of Japan
reduced its growth forecast for the year to 3.8% from 4%. The central bank has also pledged to provide zero-interest loans to commercial banks to help businesses finance climate change projects. Much of the Asian region was in the red as concerns over the spread of Covid-19 cases loomed large, along with China
CSI 300 Index
closing down 1.1%.
US President Joe Biden was due to join Pacific Rim leaders, including his Chinese counterpart Xi Jinping and Russian President Vladimir Putin, on Friday in a virtual meeting develop strategies to help economies bounce back from the resurgence of the Covid-19 pandemic.
The increase in cases in the United States has also forced officials in the country’s largest county, Los Angeles, to reinstate an interior mask mandate even for fully vaccinated, which will come into effect on Saturday.
European stock indices were slightly higher, with larger gains in the
as shares of major oil companies rose, with a handful of companies reporting and virus-looming concerns. It is then that Germany, the largest economy in the eurozone, struggles to cope with devastating floods in the west of the country that have left more than 80 dead and hundreds missing. The floods also affected the neighboring countries of Belgium and Luxembourg.
US equity futures were slightly higher before Wall Street opened. Thursday the
Dow Jones Industrial Average
increased by 0.15%, the
fell 0.3%, and heavy technology
fell 0.7% on a tough day for the industry. Chipmakers were particularly hard hit, with shares of
tumbling over 4%.
Investors are awaiting June retail sales data, which economists expect to drop 0.4%, after falling 1.3% in May. Excluding automobiles, economists expect an increase of 0.4% from the previous month. This will be followed by the University of Michigan’s preliminary consumer sentiment report for July, which should reflect a slight improvement. May business stocks are also available.
“As the United States is doing well on vaccine rollout plans and reopening the economy, with theme and vacation parks reopening as well, the increase in cases we are seeing now seems to be fueling a sentiment. overriding caution regarding consumer spending trends that appear to temper retail sales, ”said Michael Hewson, chief market analyst at CMC Markets UK, in a note to clients.
are expected before the market opens.
were booming in pre-commercialization, after news late Thursday that biotechnology, which produced a highly effective Covid-19 vaccine, will join the S&P 500 index, replacing
Among the other targeted actions, the actions of Intelligence could be active. The heavily weighted semiconductor group is said to be in talks to buy contract chipmaker GlobalFoundries for $ 30 billion, according to The Wall Street Journal.
fell 9% in Europe. The telecommunications equipment company announced $ 8.3 billion multi-year 5G deal with Verizon Communications and posted better-than-expected second-quarter net profit, better than expected, but reported weaker sales in China.
Ericsson had previously warned that Sweden’s ban on certain Chinese equipment could lead to retaliation, and said it was now “prudent to forecast significantly lower market share in mainland China for digital networks and services.”