Markets, Let's take the Week's Chart around the Globe.
We look at select global market performance and discuss more into China's tech crackdown. Also, Didi is loading up for a lawsuit.
The delta variant of the coronavirus has extended a hit across financial markets globally, pining the world down from the various market highs to new lows. The effects of the pandemic, which began in late 2019 in Wuhan, China, have been felt in every corner of the globe. Here’s how markets paced :
Global Markets - Starting from the global front, markets have generally been in a good mood for a better part of the calendar year. Well, this was until China brought into effect the much discomfort in the cryptocurrency space and also the much-dreaded China Cyberspace Administration.
You see, the CCA is this organization that sounds like it came from outer space has been on the back of companies that are tech-related, hitting hard on some of the world’s most anticipated investor opportunities. The first one was all about stopping ANT Group on what would have been the world’s largest IPO! Then just when the world thought it was over, China’s CA came in, hitting hard on Didi Inc, after listing. Didi had just raised $4.4 Billion in an upsised IPO on the NYSE, becoming the second most successful Chinese owned company to list in the U.S Markets after Alibaba.
Didi Global Inc, one-month technical performance chart [tradingview] The actions of the Chinese administration have sent investors off on investing in Asian markets, underperforming their global market counterparts; the Shanghai Composite Index rose 0.3% and outpaced the large-cap CSI 300 Index, which declined 0.1%. In Japan, however, just before the Olympic games began, the Nikkei 225 Index dropped 1.63%, and the broader TOPIX index fell 1.44%.
In the west, however, markets were more stable as most companies in the S&P 500 released their second-quarter results. Banks kicked it off with blockbuster results and with the tech rally, pushing the S&P 500 index and the Nasdaq to new highs. Much of the gains, however, were concentrated in technology and internet-related giants—the so-called FANG+ [Facebook, Amazon, Apple, Netflix, Google, and Microsoft] stocks.
In Europe, the European Comercial Bank [ECB] on Thursday kept its monetary policy accommodative, maintaining the benchmark interest rate at 0% as well as its 1.85 trillion euro asset-purchase scheme, while also trying its new forward guidance on interest rates more closely to inflation, suggesting they aren't likely to rise anytime soon.
The ECB Bonds rate graphical chart Enough on global markets…Let’s bring it back home.
During the week, African markets were mainly mixed with investors watching on various economic data from the south. South African stocks advanced for a fourth consecutive session, the longest winning streak since June 2, joining gains in global peers. Telkom SA SOC Ltd. dragged on the market on the news its chief executive officer will step down after 8 years of service in the company.
The Nigerian Stock Exchange was mixed but ended on a positive edge during the short trading week. The All-share index, which is the benchmark index in measuring the performance of the market, gained 1.9% to close at N38,667.9 points, lowering the year-to-date performance to -3.98%.
In East African Markets, the economic outlook turned to Rwanda as Fitch Global Ratings revised the country’s outlook Long-Term Foreign-Currency Issuer Default Rating (IDR) to Negative from Stable and affirmed the IDR at 'B+'. This was backed by the growing public debt for Rwanda and the weakening public finance sector.
In Kenya, markets were positive with the benchmark all share index of the Nairobi Securities Exchange (NASI), adding 0.33 or 0.18% week on week to close the week at 178.98 points. This NASI now stands at 17.66% in the year to date performance.
The NSE 20 and the NSE 25 share indices were similarly on the positive edge, with the 20 share index gaining 9.58 points or 0.49% and the 25 share index gaining 6.54 points or 0.17% to close the week at 1,981.91.points and 3,895.50 basis points, respectively. The NSE 20 and the NSE25 share indices have gained up to 6.08% and 19.92%, respectively, in the year to date performance.
Coffee Break:
Markets have been kind to investors, with a few global indices like the S&P 500, the Nasdaq touching and setting new record highs. These records have largely been supported by the mass COVID-19 vaccination exercise in some of the world’s largest economies.
Backed by the financial results of companies that have surpassed analysts estimates, the markets are definitely headed for their best days.
What Cowries are we collecting this week?
Chinese Tech Crackdown - Started from a bitcoin threat into a full-scale war against tech giants in the communist nation, we will be out looking at China’s level of involvement in tech control.
The icing on the cake now turns once again to Didi, with investors in the U.S planning for a class action suit against the company and also with the Chinese government set to fine Didi Global Inc this week.
Tesla Inc - Elon seems to be the only billionaire who doesn’t want to go to space, despite sending many rockets to space via SpaceX. Anyway, sister company Tesla has offered to share some charges! Well, Tesla will soon be able to open its EV charging stations with other EV mobility providers. Our week will be watching what investors will say and what Elon and the Team at Tesla will propose as the perfect combo to other EVs.
Twitter Inc - Apart from the beards, Jack Dorsey seem to have given investors quite some good financials. The birdy platform beat revenue targets for its second quarter. With changes set to take effect, including “Killing” the fleets, we are definitely going birdwatching this week.
How about you? What are your cowries for the week?
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