Stocks markets rally – rate cut & QE possible

The stock markets rallied on Tuesday, when Federal Reserves Chairman Jerome Powell signalled a possible interest rate cut if needed. He was referring to the trade negotiations between the China and US. Also some markets estimates that the ECB, The European Central Bank, would start again the quantitative easing actions from January, lifted the trade worries.

Dow Jones index ended up 2,06 % to 25 332 points, S&P 500 index ended up 2,14 % to 2803 points and the technology-index Nasdaq closed up 2,65 % to 7527 points. According to Bloomberg News, this increase was the biggest since January.

The big banks and the car manufacturers were the leading sectors. The economic slowdown due to the trade tariffs between the China and US has been pushing the stocks downward trend.

The recent IPO-companies were mixed, the Uber (UBER) closed up 3,64 % to 42,53 dollars, while Lyft (LYFT) closed down 0,62 % to 59 dollars. The market speculation which of the new companies would power the better way to autonomous future continued. The electric car manufacturer Tesla (TSLA) closed up 8,17 % to 194,50 dollars.

From the financial markets side, Goldman Sachs (GS) ended up 3,65 % to 190,40 dollars and JP Morgan (JPM) closed up 3,08 % to 109,77 dollars.

The global economic situation was also in the World Bank´s new economic estimate on Tuesday, that the global economy is decreasing next year due to the trade situation. -Global economic growth is forecast to ease to a weaker-than-expected 2.6% in 2019 before inching up to 2.7% in 2020, the World Bank says.

The Dutch banking group ABN Amro said in their review that they expect the European Central Bank to start the quantitative easing program again in January 2020. They expect the buying of bonds start from 70 billion euros next year and that the ECB would need to rise the issuer limit from 33 % to as high as 50 %.

It is expected that this new policy decision will be given to the new ECB president, which is going to be elected during this year as part of the EU top jobs puzzle. Mr Mario Draghi is leaving the central bank during this year. The ECB is having its next Governing Council meeting on Thursday in Vilnius, Lithuania.

In Europe, the stocks ended also up and the FTSE 100 index closed up 0,41 % to 7214 points in London. In Germany the DAX-index closed up 1,51 % to 11971 points and in France the CAC 40 index ended up 0,51 % to 5268 points.

The euro was trading flat at 1,125 dollars and the sterling was up 0,01 % to 1,2699 dollars.

Business Finance

US IPOs are expected to continue- WSJ

The recent ride-hailing IPOs have not caused the delaying of other IPOs in the row, writes the Wall Street Journal today. Although the Uber (Uber)  and Lyft (Lyft) share prices are down 7 % and 25 % respectively from their IPO prices, the IPO window is still open.

The newspaper reminds that for example Zoom Video Communications (ZM) and the plant based protein food producer Beyond Meet (BYND) were up 150 % and 257 % from their offerings. Pinterest (PINS) fell on Friday after the quarterly report, but it is up 41 from its IPO level.

Other listings on Friday, the content delivery company Fastly (FSLY) ended nearly up 50 % to 23,99 dollars and the Chinese “Starbucks coffee” Luckin Coffee (LK) also had a strong market debut.

According to WSJ and Dealogic, the IPO May listings totalled so far 15,22 billion dollars, while the sum was 6,23 billion dollars in April and 4,79 billion dollars in March.

Companies, that are still on the pipeline, are for example cybersecurity Crowd Stick and messaging company Slack Technologies, hotel reservations Airbnb and office space rental company WeWork.

On Friday the SP& 500 index ended down 0,58 % to 2859 points, the Dow Jones ended down 0,38 % to 25 764 points and Nasdaq down 1,04 %  to 7816 points.

In Asia the Nikkei rose 0,89 % to 21 250 points in Tokyo, while in Hong Kong the Hang Seng index went down 1,16 % to 27 946 points.

In Europe, the German Dax-index ended down 0,58 % to 12 238 points and in London the FTSE 100 index also down 0,07 % to 7348 points.

The sterling traded at 1,27 dollars and at 1,139 euros. The US dollar was trading at 109,98 yens.

Business Finance

Stocks turning up in Europe – Goldman to list new ESG products

European stock markets are heading upward after the negative territory after the US China trade war. The  London FTSE 100 index was up 0,64 % to 7209 points and the German DAX index was trading up 0,28 % to 11910 points and the France CAC 40 index was up 0,66 % to 5297 points during the midday trading.

Monday was black in the global stock markets when the US China trade war ascalated.The Dow Jones dropped 2,38 % to 25342 points,the S&P 500 index 2,41 %to 2811 points and the tech-heavy Nasdaq index dropped 3,41 % to 7647 points. The slide was due to the Chinese Goverment that said it will raise tariffs related to US goods to China worth of 60 billion dollars.The deadline for the Chinese tariffs is in June.

The ride-hailing companies Uber and Lyft declined further. Uber (Uber) dropped 10,75 % to 37,80 dollars and Lyft(Lyft) 5,75 % to 48,50 dollars.

The global investment banker Goldman Sachs announced on Monday that the company wil list new ESG products in Europe that track indexes from Stoxx, a unite of Deutsche Borse AG. The products, which include derivates, will invest in companies found in three indexes, the Euro Stoxx 50 Low Carbon, Europe Climate Impact ex global compact weapons and tobacco index and the Stoxx Europe 600 ESG X-index.

This means for example that companies that perform low with ESG ratings or with CDP-ratings, are not included in Goldman Sachs products. According to Stoxx, the products will be listed in Amsterdam Euronext Stock Exchange.

Business Finance

Stocks closed up – Uber fell 7,6 %

The stocks turned up from the early downs in Wall Street on Friday. Dow Jones ended up 0,44% to 25942 points, S&P 500 index up 0,38 % to 2881 points and Nasdaq slightly up 0,08 % to 7916 points.

The ride hailing company Uber (Uber) fell first over 9 % in its debut trading, but recovered somewhat and closed down 7,6 % to 41,53 dollars. The IPO price was 45 dollars. The market cap closed to 71,6 billion dollars, while in the IPO the market value was 82 billion dollars.

The rival ride hailing company Lyft also closed down.

The news from the trade talks with US and China showed some positive signs while the talks were “constructive” according to President Donald Trump.

Bloomberg reported that the US has given China one month time to seal the trade deal or face tariffs on all its exports to US.

The British finance minister Philip Hammond told media on Friday that US and China should avoid entering the trade war because of the vast impact on global growth and on British economy as well. According to Reuters, Mr Hammond estimates the UK will reach the 1,2 % economic growth this year.

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Stock markets decline before the Friday deadline in trade tariffs

The global stock markets were on sell-side and declined before the approaching deadline of the  US-China trade tariffs on Friday. The Wall Street opened by over 1 % decline today. Dow Jones was down 1,22 % to 25 649 points, S&P 500 index was down 1,13 % to 2847 points and technology index Nasdaq down 1,46 % to 7827 points.

In Europe the FTSE 100 index was down 0,65 % to 7223 points in London, the CAC 40-index was down 1,63 % to 5239 points in France and German DAX index down 1,30 % to 12021 points.

The euro was trading  at 1,11 dollars, the dollar was trading at 112 yens and sterling at 1,29 dollars. The yen climbed somewhat against dollar while the investors sought heavens before the Friday deadline.

According to Bloomberg News, the US trade deficit with China decreased to 28,3 billion dollars in March. If the trade talks fall, the US is said to lift the tariffs of Chinese goods valued 200 billion dollars to 25 % from 10 %.

Friday is also the IPO day for the US ride-hailing company Uber. It is expected that the listing the company is one of the biggest tech IPOs since Facebook and the company value is estimated to be around 90 billion dollars.

 

Business Finance

Lyft expects 3,3 billion dollars revenue for 2019

The public listed company Lyft (LYFT) reveiled its results for the first quarter. According to the company,it made a 1,14 billion dollar loss for the period with the revenue of 776 million dollars. The company also estimated that the total year revenue would be 3,3 billion dollars.

Lyft also said that the net loss includes a 894 million dollars of stock-based compensation and payroll tax expenses in connection with the company IPO offering in March. The company raised 2 billion dollars in the listing process.

The company is having 30 million riders and 2 million drivers.The company stock was trading down 4,3% to 56,89 dollars on Wednesday.

The rival company Uber (UBER) is to have its IPO in the New York Stock Exchange on Friday.

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