Monday, July 26, 2021

Global Market Square

By on July 15, 2021

The U.S. and European stock markets ended the session with asymmetrical results as the U.S. grappled with the continued rise in inflation and the Federal Reserve’s dovish stance. As for Europe, the situation is quite different as booking, entertainment, airline, cruise and hotel (Beach) stocks, especially the travel sector, dropped amid concerns of the Delta variant. 

Federal Reserve Chairman Jay Powell said he is sticking with his view that the rise of inflation, which has impacted most sectors’ reopening, will be proven to be temporary, stressing it during his biannual monetary policy report to Congress.

Corporate earnings continue with BofA and Citi:

  • Bank of America (B.A.C.) delivered 2Q21 revenues of $21.5 billion, down 6%, and Net income of $9.2 billion, up 15%; the stock closed at $38.81, down $1.05 or 2.63%.
  • Citi (C) delivered 2Q21 revenues of $17.4 billion, down 10%, and net income of $6.19 billion, down 22%; the stock closed at $68.15, down $0.22, or 0.32%.

Key economic reports:

  • U.S. Producer Price Index rose to 7.31%, compared to 6.56% last month, higher than the long-term average of 1.71%.
  • U.S. Producer Price Index rose to 0.96%, compared to 0.81% last month, higher than the long-term average of 0.17%.
  • European Union Industrial Production Index rose to 104.50, up from 102.80 last month, a change of 1.65% from the previous month.

Eurozone Summary for July 14:

  • Stoxx 600 closed at 460.58, down 0.38 points, or 0.008%.
  • FTSE 100 closed at 7,091.19, down 33.53 points, or 0.47%
  • Dax index closed at 15,788.98, down 0.66 points, or 0.0004%.

Wall Street Summary for July 14:

  • The Dow Jones Industrial Average closed at 34,933.23, up 44.44 points, or 0.13%.
  • The Standard & Poor’s 500 closed at 4,374.30, up 5.09 points, or 0.12%.
  • The Nasdaq Composite Index closed at 14,644.95, down 37.70 points, or 0.22%.
  • The Birling Capital Puerto Rico Stock Index closed at 2,436.69, down 42.44 points, or 1.71%.
  • The U.S. Treasury 10-year note closed at 1.37%.
  • The U.S. Treasury 2-year note closed at 0.23%.