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)
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)
Asian indices have not performed very well with the Nikkei down in excess of 3% since the beginning of July while the Hang Seng lost nearly 10% over the same period of time.
Looking ahead, this week is heavy with economic releases including BOE monetary policy report and MPC votes, Canadian employment data and US non-farm payrolls.
With CFI, you can trade thousands of CFDs on Stocks, Forex, Commodities, Indices, and ETFs from one single platform. If you are new to the financial markets, you can start with a risk-free demo account and for the more seasoned traders, opening a real account is a straightforward process that requires very little time. CFI offers its clients many services and features including free daily webinars, dedicated account managers, daily technical reports, and highly competitive conditions that include fast execution and spreads from zero pips.
Click here to find out more.
The content present in this article reflects the opinions and views of the author and does not necessarily reflect the position of CFI. The material published on this blog is provided for informational purposes only and should not be considered as investment advice. The Company is not responsible for the decisions and choices of the investor who has full and free will to make decisions that they see appropriate upon the investor’s sole discretion.