Good morning and welcome to our continued coverage of the world economy, financial markets, the eurozone and business.
The rotation of fast-growing tech companies toward undervalued recovery stocks appears to have reversed, with technology back in demand.
Last night the Nasdaq it had its best day since November, rising 3.7% just one day after the index fell into a correction.
Electric car manufacturer Tesla It had a particularly bright day, surging nearly 20% as traders ignored concerns that inflationary pressures and rising borrowing costs could hamper the global recovery.
The rally appeared to be triggered, at least in part, by a rebound in US government bond prices, which sent yields (or interest rates) down again.
Kyle rodda of I G Explain:
A reversal in bond yields and a subsequent rise in US tech stocks caused market sentiment to turn decidedly bullish.
It was the big tech names that really drove the market higher, with the rotation of the most beloved growth names of 2020, to stocks that would benefit from the rebound in global economic activity reversing on Wal Street, albeit only be it for the moment. The NYSE FANG + index added a remarkable 7 percent, driven by a nearly 20 percent rise in Tesla shares, and companies like Apple, Amazon and Facebook posted solid rallies in their own right.
But given the recent pressure on bond yields, it’s not clear that this rally in tech stocks really has staying power. But we’ll see!
In the short term, European stock markets are heading towards a more moderate open, one day after hitting a one-year high.
Asia-Pacific markets are up a bit, recovering from a two-month low on Tuesday,
Investors are particularly interested in seeing the latest US inflation data, to be released later today, as it will show whether price pressures were building in February.
Inflation could give policymakers a headache as economies reopen this year, although central bankers have insisted that recovery will be a long road …
- 7.45 a. M. GMT: French industrial production
- Noon GMT: Weekly US Mortgage Applications.
- 13:30 GMT: US inflation for February
- 3.30 pm GMT: US weekly oil inventory figure.
George is Digismak’s reported cum editor with 13 years of experience in Journalism