Global Indices holding steady as recovery concerns downplayed
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Global Indices holding steady as recovery concerns downplayed

It’s no surprise that the global corporate environment continues to improve as the only real concern, being the pandemic, is no longer as serious as before. With the Delta and other variants out in the world, early studies have shown that vaccinated individuals have a strong chance against the more adverse variants. This created a surge towards riskier assets as traders believe that the situation can only get better and, in the worst of cases, stay relatively flat.

 

Price action and flow have been positive for most global indices with the top US ones performing well over the past few sessions. For the past month, and more specifically, since the beginning of July, the Dow Jones is up around 1% while the S&P us currently up by around 2.2% and the Nasdaq is approaching 3% in terms of current gains. (Figure 1)

 

*Figure 1

 

On the other hand, European equities were holding steady but with no serious gains despite talks of a potential tourism recovery going into late summer and fall, as well as winter season, for those interested in winter sports. The Dax is currently flat while the FTSE 100 is up around 0.6% since the beginning of July while the Euro Stoxx 50 is trading with gains above 1%. (Figure 2)