Wednesday, December 8, 2021

Global Market Square

By on July 16, 2021

The U.S. and European stock markets ended the session mostly down except for the Dow Jones, which closed with a slight gain.  Most investors appear to be concerned that China’s economic recovery seems to be slowing, as well as the spread of the coronavirus’ Delta variant globally.

In China, there are calls for more policy intervention by the government. When China’s G.D.P. is compared quarterly, it grew 1.3% in June, higher than the 1% forecast. Another issue striking fear in investors is the Delta variant, whose epicenter is Asia, with Indonesia facing significant increases.

When you mix inflation, economic slowdown and COVID-19, the result is fear.

The corporate earnings parade continued Thursday with Morgan Stanley reporting 2Q21 results. Total revenue reached $14.8 billion, or 6% below 1Q21, and Net Income of $3.5 billion, or 15% lower than 1Q21, the stock closed at $92.63, up to $0.17, or 0.18%.

The results were better than projected and demonstrate how the big bank has been pivoting its business model toward a more fee-driven business, most notably M&A consulting. 

Key indicator reported:

  • U.S. Initial Claims for Unemployment Insurance fell to 360,000, down from 386,000 last week and down -6.74% from the previous week, similar to estimates.

Eurozone Summary for July 15:

  • Stoxx 600 closed at 456.10, down 4.46 points, or 0.97%.
  • FTSE 100 closed at 7,012.02, down 79.17 points, or 1.12%
  • Dax Index closed at 15,629.66, down 159.32 points, or 1.01%.

Wall Street Summary for July 15:

  • The Dow Jones Industrial Average closed at 34,987.02, up 53.79 points, or 0.15%.
  • The Standard & Poor’s 500 closed at 4,360.03, down 14.27 points, or 0.33%.
  • The Nasdaq Composite Index closed at 14,543.13, down 13.35 points, or 0.55%.
  • The Birling Capital Puerto Rico Stock Index closed at 2,423.34, down 13.35 points, or 0.55%.
  • The U.S. Treasury 10-year note closed at 1.31%.
  • The U.S. Treasury 2-year note closed at 0.23%.

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