Sunday, April 18, 2021

Investors bullish over vaccine hopes, IPO mania and stimulus talks

Must read


Hello, Bull Sheeters. It’s a risky day as stimulus talks and vaccine progress raise investor sentiment from Tokyo to New York.

We also have another big start on the stock market today. DoorDash will start trading in a few hours, and the auctions have so far been fierce. The IPO share price is above $ 100, the the Wall Street newspaper reports, citing sources in the know.

Let’s see where investors are putting their money.

Market update

Asia

  • The mainAsia Indexare especially higher in afternoon trade with JapanNikkeihigh1.2%, continuing its impressive run. Investors applaud a $ 708 billion Recovery plan to revive the Japanese economy hit by COVID.
  • SoftBank was in place 5.6% on the news, the tech conglomerate / investment group is considering a plan to quietly buy shares and privatize them, Bloomberg Reports, citing sources.
  • Here is good news for automakers. Car sales in China, the largest market in the world, climbed again in November, further evidence the two-year recession is over.

Europe

  • theEuropean scholarshipsbounce back this morning with theStoxx Europe 600high 0.4% outdoors.
  • Dinner in Brussels. Boris Johnson heading to Belgium in a few hours for a dinner with Ursula von der Leyen to see if both can save mailBrexit trade negotiations.
  • Meanwhile, Britain resumes its COVID vaccination program, a deployment that went well yesterday. The Americans could be next.
  • the Wirecard scandal claimed another scalp as the chief accounting officer of Deutsche Bank moved away as prosecutors in Munich step up their investigation into the insolvent payment company.

WE

  • American Futuresare a little higher after the S&P 500 and Nasdaq finished again Tuesday in record territory despite little progress by concluding an agreement on a $ 908 billion (or larger) stimulus program. But the fact that the two sides are still trading is a good sign, the markets say.
  • You’re here closed actions 1.3% higher yesterday after the release of the EV maker would exploit financial markets for the third time this year, hoping to lift nearly $ 5 billion in a sale of shares.
  • Apple stocks are stable in pre-market trading, which suggests that investors aren’t blown away by his news Helmet at $ 550. Why so expensive? They go over your ears, so you’re less likely to keep losing them, like AirPods.

Somewhere else

  • Goldis falling, trades below$ 1,870 / ounce.
  • thedollar the slide continues today.
  • Grossis in place, withBrentfutures trading around$ 49 / barrel.
  • Hold on to your hats, Bitcoinbulls. Virtual currency is on the decline 6.3%, trading below $ 18,000.

***

A view of the C-suite

When will the economy as a whole catch up with the stock markets? It’s a question that has bothered us since equities began their impressive comeback in April, even as the global economy grumbled and whistled.

We have seen GDP rebound, but the recovery has been incredibly uneven and economic output is still well below pre-pandemic levels.

It is therefore particularly appropriate to do a check-in with the CFOs of the largest companies in the world. Deloitte Quarterly CFO Signals survey—Which we’ve already touched on in this space – shows an improving outlook as we approach 2021. Even declines in Europe see better times in 2021.

The most optimistic subset of CFOs are found in China where nearly half (47%) say the economy is “good now” and 60% say it will be even better in a year. CFOs in North America have an equally optimistic outlook, as the chart above shows. But those same CFOs are concerned about the first half of 2021, as stimulus negotiations continue to bog down, and they maintain cautious optimism about the speed of vaccine deployment.

The survey was conducted in mid-November as the S&P traded around 3,500. (It closed at 3,702 yesterday). At this mid-November level, nearly 60% of survey respondents expected the benchmark to rise further by the end of the year. But here’s the problem: “80% also say it’s overrated.”

80%!

Given the timing of mid-November, when Joe Biden was named president-elect, CFOs have been reflecting on policy issues as well. They have a big wish list for Washington. “As a new administration takes over, CFOs overwhelmingly support a new stimulus package, infrastructure investments, a de-escalation of US-China trade tensions, less protectionist trade and the federal government leading a response to COVID-19, ”the report read.

“Although there are differences between sectors, the hopes of CFOs for Washington are largely based on improving bipartisanship and cooperation to accomplish important tasks, and on unifying the country with more ‘ moderation ‘,’ transparency ‘and’ decency ‘.

Hope Washington is listening.

***

Have a very good day everyone. I’ll see you here tomorrow.

Bernhard Warner
@BernhardWarner
Bernhard.Warner@Fortune.com

As always, you can write tobullsheet@fortune.comor reply to this email with suggestions and comments.



- Advertisement -spot_img

More articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisement -spot_img

Latest article