November 26, 2021

Technology Stocks Bounce Up While The Dollar ‘Holidays’ Thanksgiving Day

 Technology stocks rebounded higher for European equities on Thursday following similar gains on Wall Street and Asia that were also helped by a small pull in the dollar from a 17 -month high.

The Wall Street market closed yesterday following the United States (US) Thanksgiving holiday.

The main focus is on Europe where the rise of Covid-19 cases raises the prospect of a lockdown ahead of the Christmas shopping season.

The concerns pushed the pan-European STOXX 600 index to a 3-week low on Wednesday but rose nearly half a percent as tech sector gains posted a 1% rise to offset an eighth consecutive fall in travel and leisure stocks.

According to Bank of America (BofA) analysts, there are indicators of bullish levels that will support the equity market that can be seen in the data. Year-to-date inflows into equity funds have surpassed the $ 1 trillion level more than the combined 19-year inflow.

In the government bond market, there was a slight decline in German yields after former Finance Minister Olaf Scholz of the Social Democrat party reached a trilateral coalition agreement on Wednesday that saw him replace Angela Merkel in leading Europe’s largest corporate economy.

It was the first fall of yield in three days.

However, it has risen sharply again this week as traders have raised bets that rising inflation will make the European Central Bank (ECB) join the US Federal Reserve (Fed) in raising interest rates next year.

In Asia overnight, a technological recovery initiated by the Nasdaq has helped Japan’s Nikkei post a 0.7% gain and the Hong-Kong technology index was able to overcome its 6-session loss.

The MSCI Asia-Pacific broad index outside Japan closed flat after recording little movement throughout the day.

The dollar traded higher in almost 5 years against the Japanese Yen at 115.3 which consolidated a nearly 18 -month high against the Euro which was a fraction higher at $ 1.1222.

Brent crude oil price last traded at $ 82 a barrel which recorded a 6% increase from this week’s lows but fell slightly lower that day.

Spot gold rose 0.17% at $ 1,791 an ounce.