Last week of the year requires, the news of the companies is reduced to the minimum portion. Let us not count on that of the financial ones either since many stock markets will be closed this week, it is for example the case of the City today. Despite this lack of information, which could be synonymous with a lack of bullish catalysts, the equity markets still know no limits and continue their ascent in 2021. We could also reason otherwise by arguing that it is the absence of bad news on the front of the pandemic and economic data which tends to support the stock indexes. No news is good news.
Regarding the first point, investors have plenty to look at when the glass is half full. Even if contamination records are broken in Europe, such as in France or the United Kingdom, which have crossed the threshold of 100,000 daily infections, recent studies indicate that the Omicron variant would lead to fewer hospitalizations. Investors are thus placing their hopes in the acceleration of vaccination and recall campaigns and in this regard, they can count on the main laboratories which communicate almost daily on the progress of their treatment against Covid-19.
For the second point, economies remain dynamic and support high valuation levels on a portion of the stock quote. This is the case in the United States and to be convinced of it, it suffices to look at the latest figures for retail sales or orders of durable goods which remain well oriented. Regarding inflation, which is one of the most important bottlenecks identified by investors, the market has sided with a Federal Reserve which is taking measures to curb the rise in prices, which necessarily involves a reduction cash in circulation. This prospect does not prevent trees from rising to the sky and flying from peak to peak, a sign that investors have understood the Fed’s monetary tightening and the speed at which it will turn the screw on rates. directors.
Put another way, the horizon seems clear as New Year’s Eve approaches. To stay on the holiday register, investors seem to still have an appetite, take advantage of the end-of-year rally, and hope that the new stock market year is as good as 2021. But you know the refrain, these are especially American companies and more particularly technology stocks which won again this year.
These are the same words I must have said to myself when I glanced at the Event Screener this morning, since Wall Street makes records every day.
You will find above an image captured from this in-house tool allowing very specific technical and chartist configurations to be detected. In our example, the “Extreme” column detects the creation of a historical record during the session. As you can easily see, this is the case for a small score of large American caps (I should point out that I have filtered the companies so as to keep only those with a capitalization greater than $ 50 billion). What do they have in common? With a few exceptions, they evolve either in the field of technologies or in that of health. Another interesting fact, the new S & P500 record was not accompanied by yet another stock market zenith for the GAFAMs since none of them appeared in the Event Screener.
Let’s go back to today’s session. Today, no major indicator is looming on the horizon. Early this morning, Japan unveiled a surge in industrial production in November, a sign that its industry is recovering from shortages and disruptions in supply chains. The Nikkei benefits as the Japanese index closed up 1.37%. The European stock market should continue its ascent, the CAC40 is indeed expected to rise by 0.2%.
The economic highlights of the day
100% American day with the FHFA property price index (3:00 p.m.) and the Richmond Fed’s manufacturing index (4:00 p.m.).
The euro stabilizes at 1.132 USD. The ounce of gold is moving flat at 1811 USD. Oil is gaining momentum with Brent at 78.9 USD and WTI at 75.9 USD. In the bond market, the yield on 10-year US debt reached 1.48%, while the Bund is at -0.24% over the same duration. Bitcoin drops back below $ 50,000 per coin.
The main changes in recommendations
- Chesapeake Energy: Siebert Williams Shank begins buy tracking with a target of $ 90.
- Douyu International: BofA Securities resumes monitoring at “underperformance” and a target of 3.30 USD.
- Ortho Clinical Diagnostics: Barclays moves from buy to neutral and downgrades target from $ 29 to $ 25.
- Victoria’s secret : Morgan Stanley remains at “line weight” but lowers its target from 76 to 69 USD.
News from companies
In France
- Some of the employees of the Italian bank BNL, a subsidiary of BNP Paribas, have started a strike movement.
- Elis completes the acquisition of the textiles activities of the laundry services company Blesk InCare in Russia.
- Albioma acquires a Canadian wood pellet plant.
In the world
- Merck’s anti-Covid pill recommended for emergency use in India.
- Moderna will deliver 20 million additional doses of the Covid-19 vaccine to South Korea.
- Pfizer will deliver 15 million doses of its vaccine to the Philippines, which plans to immunize children between the ages of 5 and 10.
- Apple is closing 11 stores in New York City due to the outbreak of Covid-19.
- United Airlines and other airlines continue to face thousands of canceled flights in the United States.
- A bill on Chinese foreign listings penalizes Alibaba stock.
- Swissmedic has given the green light to Roche’s anti-Covid drug.
- Clariant will buy BASF’s clay assets for $ 60 million.
- Relief Therapeutics will obtain a Swiss patent for a treatment for drug-induced lung disease in 2022.
- Encavis purchases two 34 MW solar parks in Denmark from European Energy.
- Bravida buys 60% of the shares of Viva Energi, a solar power equipment company.
- Siemens Gamesa will install a 302 MW wind project in India.
- China Evergrande is preparing for a deadline for the payment of two bond coupons with a total value of $ 255.2 million.
Main results publications. Sugi Holdings, Cal-Maine Foods, DCM Holdings …
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