US Markets on Tuesday closed higher on hopes of a possible stimulus package in the month of July despite the rising number of Covid-19 cases across the world. All three major indices closed the quarter on a record with the Dow Jones rising the highest since 1987, while the Nasdaq 100 and the S&P 500 hit the highest numbers since 2001 and 1998, respectively.
Shares of Tesla on Tuesday hit a new all-time high of over $1,083 per share, pushing the company’s market capitalization to more than $200 billion for the first time. In June, the company announced confirmed plans to set up a new manufacturing plant in US which would cost over $1 Billion. At the same time, new car registrations in China for the month of May jumped 150% compared to the previous month.
India Bans 59 Chines Apps
China has slammed India’s move to ban 59 Chinese owned mobile apps saying the decision violates the World Trade Organisation rules thereby “damaging international trade and e-commerce”, according to a statement from the Embassy of China in India. This is after India announced the ban on TikTok, and 59 other Chinese apps accusing the platforms of engaging in “activities which [are] prejudicial to sovereignty and integrity of India, defence of India, the security of the state and public order.”
ZTE & Huawei Troubles
The United States’ Federal Communications Commission (FCC) has labelled ZTE Corp. and Huawei Technologies as a national security threat. In a statement on its website, the FCC noted that the “designation is the latest step that the FCC has taken to secure America’s communications networks from the threats posed by Communist China and bad actors that might do its bidding.”
FedEx Q4 2020 revenue fell 2% YoY to stand at $17.4 billion while operating income fell 64% $475 million. Net loss fell 83% to $334 million. For the full 2020, revenue fell 1% to $69.2 billion. Operating income declined 46% to $2.42 billion. Net income was up 139% to $1.29 billion.
Deutsche Boerse on Wednesday’s session announced it experienced technical problems on the Xetra trading system. The German exchange noted all securities listed on Xetra had been affected. The trading platform used by Frankfurt-based Xetra and Eurex Group, as well as the Vienna Stock Exchange were also affected.
In an opinion article, Gaurav Kashyap expects weaker currencies in favour of a stronger dollar will continue as volatility continues for equities with a slight bearish bias. The market strategist at Equiti Global Markets sees Gold as a strong candidate for further upsides in the next few weeks. However, with the precious metal trading at the top end of the channel and the current inactivity at $1,770, waiting for a sell-off towards $1,750 and lower would be wise before building long positions.