Global Markets Face The Jitters
A fresh wave of the pandemic and tense high-level US-China talks were among the factors that continued to keep the global markets in a state of volatility
The global equity markets remained volatile amid fears of rising US bond yields, but compared to the previous fortnight the recent 15 days saw the US bond yields calming down comparatively. While equity markets continued to digest and anticipate what is going on in the bond market, beaten technology stocks in the US markets were seen rebounding from their recent pullback. With investors being extremely bullish during the recent fortnight, technology-heavy NASDAQ index surged 6.09 per cent. Other indices such as S & P 500 and DJIA jumped 3.12 per cent and 2.92 per cent, respectively.
Investors remained quite optimistic, placing bets on the assumption that stimulus and vaccine rollouts would lead to a strong rebound in the US economy. In Europe, benchmark indices remained subdued during the fortnight, managing to barely brush off declines. Investors remained cautious as Europe was baffled with many concerns. Turkey’s decision to remove its central bank chief sent the Turkish Lira – which is considered to be one the best performing emerging market currencies – into a downward spiral, also triggering fears that investors would further pull out of the country’s other assets.
For some while, increasing number of corona virus cases in France affected with the new strain and news about the reduced efficacy of AstraZenca vaccine with the new strain spooked investors. French index CAC 40 gained by 1.11 per cent and German index DAX was up by 1.92 per cent during the fortnight. For the same period of time, FTSE 100 was up by a mere 0.10 per cent. Stricter new travel curbs in the UK seem to have rattled investors with concerns over possible lockdowns. Gains in technology, software and computer services and oil and gas stocks boosted Denmark stocks to settle higher. OMX Copenhagen 20 jumped by 4.80 per cent during the fortnight.
For some while, increasing number of corona virus cases in France affected with the new strain and news about the reduced efficacy of AstraZenca vaccine with the new strain spooked investors. French index CAC 40 gained by 1.11 per cent and German index DAX was up by 1.92 per cent during the fortnight. For the same period of time, FTSE 100 was up by a mere 0.10 per cent. Stricter new travel curbs in the UK seem to have rattled investors with concerns over possible lockdowns. Gains in technology, software and computer services and oil and gas stocks boosted Denmark stocks to settle higher. OMX Copenhagen 20 jumped by 4.80 per cent during the fortnight.
like a continuation of an atmosphere of suspicion between the two countries under the Joe Biden government as well. Cautiousness was seen in the Asian markets after the EU, UK, US and Canada announced sanctions against four Chinese officials accused of abusing ethnic minorities. Hong Kong’s Hang Seng index gained 1.21 per cent during the fortnight. Japan’s benchmark index Nikkei bounced back during the fortnight, rising by 1.50 per cent.
Meanwhile, high US bond yield jitters and declines in automotive and technology stocks pressured South Korea’s benchmark index KOSPI to decline by 0.36 per cent during the fortnight. The Straits Times Index (STI), that comprises stocks of 30 representative companies listed on the Singapore Exchange, rose by 1.84 per cent in the last few weeks. Other well known indices in the global markets such as S & P/TSX Composite index which is the benchmark Canadian index rose by 1.94 per cent during the fortnight whereas Brazil’s BOVESPA index surged by 4.01 per cent. The S & P/ASX 200, which is considered the benchmark for Australian equity performance, managed to end the fortnight in the positive territory, gaining by 0.19 per cent.