Daily Digest: Monday 22nd April
USA
The general theme of the day was an easing of tensions across the Middle East through the weekend. Markets experienced some relief coming into Monday’s session with all the major indexes rebounding following their performances last week. The Nasdaq 100 ($NDX) led gains rising 173.24 points (1.02%) to 17,210.89, followed by the S&P 500 ($SPX) which rose 43.37 points (0.87%) to 5,010.60, and the Dow which rose 253.58 points (0.67%) to 38,239.98.
The headline single stock movers of the day were Tesla and Nvidia. Following a >10% decline on Friday, shares in semiconductor manufacturer Nvidia ($NVDA) rose 4.35% to $795.18, with traders breaking the $800 per share level twice through the session. Tesla ($TSLA) on the other hand continued to trade downwards falling 3.4% to $142.05 per share, having broken 52-week lows earlier in the session. This move comes as the firm restructures its pricing model in the Chinese market, lowering vehicle costs. Tesla will likely remain a particular topic of contention into tomorrow as the firm reports their Q1 earnings.
Europe
The FTSE 100 (FTSE) continued to rally through Monday, extending gains for a fourth consecutive session, as the index closed at new record highs. Momentum was spurred by interest rate optimism and a quietening of tensions in the Middle East. The FTSE ended the day 128.02 points (1.62%) higher, marking its strongest single session performance in over a month, closing at 8,023.87. Ninety one of the indexes constituents closed the session up, with retailer Marks and Spencer’s (MKS.L) leading gains, closing 4.39% up, followed by Bill Ackmans Pershing Square Holdings (PSH.L) which rose 4.14%, and supermarket Sainsburys (SBRY.L) which rose 3.94%.
Wider European market sentiment turned through Monday as the major indexes moved to cover last weeks losses. The STOXX 600 (€SXXP) rose 3.02 points (0.6%) to 502.31, as traders managed to build a robust support at the 500 technical level. The French CAC (€FCHI) rose 17.95 points (0.22%) to 8,040.36, and the German DAX (€GDAXI) rose 123.44 points (0.7%) to 17,860.80. A trend reversal came as a welcome relief for DAX and STOXX investors following sharp losses and poor performances throughout last week.
Rest of the World
The Nikkei 225 (¥N225) benefited from an uptick in momentum as investor outlooks strengthen regarding geopolitics and global monetary policy approaches. The Japanese benchmark rose 370.26 points (1%) to 37,438.61, however, the index is still trading just over 641 points off Friday’s open. Traders managed to build a support level around 37,069 which was tested twice, forming the basis for a move above 37,400. The key level going into Tuesday will be at 37,500 as traders attempt to build off of today’s momentum to offset last weeks losses.
International Nikkei investors have continued to enjoy the benefits of a depreciating Yen with the currency trading toward the 155 level, as the Yen repeatedly hits 30-year lows. As of 09:35 GMT, the Yen was trading against a strengthening US Dollar at 154.706, a narrative supported by the US Dollar index which read 106.14 at the same time, indicating a continuation of the world reserve currencies appreciation.
The Shanghai Stock Exchange Composite Index (¥SSE) failed to share in a wider change of sentiment, falling a further 29.67 points (0.67%) to 3,044.60. The index traded higher into the session, however, traders experienced significant resistance at the 3,078 and later at the 3,059 technical levels pushing prices lower into the close.
The Indian Nifty 50 (₹NSEI) managed to rise 8.85 points (0.04%) breaking the 22,300 level for the first time since Thursday. Traders seemed to build support around 22,275, a level which was tested in four occasions, playing into a wider market rebound.
Commodities
WTI crude prices calmed through Monday as geopolitical tensions across the Middle East ease. This easing comes after last week’s retaliatory attacks from both Israeli and Iranian forces, which drove supply side uncertainty. As of 21:00 GMT traders had pushed crude prices down 0.14% to $83.02 per barrel.
Gold also experienced its largest single session decline of April, falling 2.93% to $2,343.10 per ounce. Once again, this comes as the situation in the Middle East improves beyond a point of uncertainty.
Sources:
https://uk.finance.yahoo.com/world-indices/
https://uk.finance.yahoo.com/commodities
https://www.londonstockexchange.com/indices/ftse-100
https://www.binance.com/en-GB/price/bitcoin
https://www.binance.com/en-GB/price/ethereum
https://qontigo.com/index/sxxp/
Stock Market Activity Today & Latest Stock Market Trends | Nasdaq
https://coinmarketcap.com/charts/#market-cap
https://www.forexfactory.com
Definitions:
YoY - Year on Year, or, Year over Year
MoM - Month on Month, or, Month over Month
QoQ - Quarter on Quarter, or, Quarter over Quarter
ECB - European Central Bank
BOJ - Bank of Japan
Fed - Federal Reserve
BOE - Bank of England
SNB - Swiss National Bank
DOJ - Department of Justice