The FTSE 100 had a stellar first week of 2021
The FTSE 100 roared ahead in the first week of 2021, jumping more than 6 percent compared to increases of roughly 0.13 percent on the US’s S&P 500 and 1 percent on Germany’s Dax.
A number of factors have driven the FTSE higher: the signing of a post-Brexit trade deal with the EU; the approval and rollout of coronavirus vaccines; and the Democrat victories in the Georgia Senate runoff elections in the US.
Each of these promise to aid an economic recovery in 2021 that will help the industrial, financial, and energy firms that make up much of the UK’s blue-chip index, and which suffered so much under the coronavirus pandemic in 2020.
But the FTSE is still well behind its peers when looked at over the last year. Whereas the S&P 500 is around 17 percent higher than it was a year ago and the Dax is up about 5.5 percent, the FTSE 100 is down roughly 9.5 percent.
|Major World Market Indices|
|Small Cap 2000||2,088.35||2,113.88||2,064.61||-8.53||-0.41%||08/01|
|S&P 500 VIX||21.56||23.34||21.42||0.00||0.00%||08/01|
Sensex holds 49,000; broader indices underperform benchmarks
The Indian markets were parked near record highs scaled in Monday’s opening deals, withe the S&P BSE Sensex above 49,000, on the back of favourable global cues and strong Q3 earnings.
The S&P BSE Sensex gained 400 points, or 0.8 percent, at 49,190 levels and the Nifty50 index topped the 14,420 level. Technology stocks were the lead Sensex gainers, with Infosys, HCL Tech, and TCS rising 3 percent, 2 percent, and 1 percent, respectively. Tata Consultancy Services’ profit jumped 7 percent YoY in the December quarter to Rs 8,701 crore, according to the results announced post market hours on Friday.
Besides, shares of Avenue Supermarts gained 2 percent after the firm posted a 16 percent jump in Q3 profit.
The Nifty setoral indices were trading mixed, with Nifty IT index, up 2 percent, leading the list of gainers.
Meanwhile, in the broader markets, the S&P BSE MidCap and SmallCap indices were trading 0.3 percent and 0.5 percent lower, respectively.
Japan’s Nikkei 225 surges to levels not seen since early 1990s; Asia-Pacific markets mixed
Stocks in Asia-Pacific were mixed on Tuesday following overnight gains on Wall Street that sent the major averages to record highs.
In Japan, the Nikkei 225 led gains among the region’s major markets as it soared 2.66 percent on the day to 27,568.15 — a level not seen since August 1990, according to data from Refinitiv. Shares of index heavyweight Fast Retailing and conglomerate Softbank Group gained 4.5 percent and 4.53 percent, respectively. The Topix index advanced 1.74 percent to finish its trading day at 1,819.18.
South Korea’s Kospi closed 0.42 percent higher at 2,820.51.
Mainland Chinese stocks were lower by their close, with the Shanghai composite down 0.54 percent to 3,379.04 while the Shenzhen component dipped 0.526 percent to 13,970.21. Hong Kong’s Hang Seng index gained about 0.9 percent, as of its final hour of trading.
Shares in Australia rose following their return from a Monday holiday, with the S&P/ASX 200 up 0.53 percent to close at 6,700.30.
MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.44 percent.
CAC 40, FTSE 100, and DAX index gains to accelerate
The CAC 40 index is set to open higher on Friday, joining a global rally in stocks as investors price-in more stimulus in the United States. The index closed 0.55 percent higher yesterday. Other European indices like the FTSE 100 and DAX index are also set to soar. Similarly, in the United States, the Dow Jones and S&P 500 index futures are in the green.
The background: The CAC 40 is made up of the biggest French companies like Louis Vuitton, Air Liquide, and Renault, among others. In the past few months, the index has been on an upward trend since traders have been pricing-in a recovery of the global economy. It has jumped by 56 percent from its lowest level last year.
What’s happening: The CAC 40 and other global indices are in high spirits even as the number of coronavirus cases continues rising. This is partly because countries have started issuing vaccinations, which will ultimately slow the spread.
Saudi stock exchange main index ends trading higher, at 8,817.05 points
Saudi Stock Exchange’s main index ended trading higher on Friday, gaining 79.85 points to close, at 8,817.05 points.
The total value of the trading reported was over 8 billion, while the toll of shares traded was more than 280 million, divided into over 343,000 deals.
The Saudi Parallel Equity Market Index (NOMU) ended the day gaining 305.46 points, to close, at 24,742.76 points, with a valuation of more than SR68 million and an overall tally of more than 526,000 stocks traded and divided into as many as 1,470 deals.
Taiwan stock market tipped to open higher on Monday
The Taiwan stock market has moved higher in consecutive trading days, gathering almost 480 points or 3.1 percent along the way. The Taiwan Stock Exchange now sits just above the 15,460-point plateau and it has a positive lead again for Monday.
The global forecast for the Asian markets suggests a higher open on hopes for additional stimulus and surging oil prices. The European and U.S. markets were up on Friday and the Asian bourses are tipped to at least open in similar fashion, although profit taking may set in later.
The TSE finished sharply higher on Friday following gains from the financials, cement companies and technology stocks.
For the day, the index advanced 249.95 points or 1.64 percent to finish at the daily high of 15,463.95 after moving as low as 15,275.38.