Text size
Getty Images
U.S. equities stand despite the lack of progress in efforts to negotiate another stimulus package and further data showing strengthening inflation.
Shortly after the open, the Dow Jones Industrial Average averaged 263 points, or 1%, up 27,950. The S&P 500 also advanced 1%, while the Nasdaq Composite gained 1%.
US markets press gains in trading in premarket shortly after consumer prices rose more than expected in July. The consumer price index increased by 0.6% for the month, twice as fast as forecast. It went up by 1% for the year, faster than the 0.7% rise that economists expected.
Excluding volatile food and energy prices, it rose 0.6% for the month and 1.6% for the year, also more than economists had expected.
Actions, however, receded shortly thereafter. While stronger-than-expected inflation sometimes haunts markets by increasing the risk of rising Federal Reserve interest rates, inflation still remains well below the Fed 2’s target. And the central bank has assured investors that it does not intend to raise rates until the pandemic is well behind the US
European stocks are also climbing, even as coronavirus counts begin to creep across the continent and after the UK reported a sharp economic contraction caused by the pandemic.
The pan-European Stoxx 600 index rose 0.7%, while the German DAX advanced 0.3% – awaited by software giant SAP and Adidas.
The FTSE 100 was 1.7% higher, despite falling gross domestic product in the second quarter.
The decline in UK economic activity in the second quarter was the worst of any major European economy during the pandemic. GDP fell 20.4%, double the hit Germany took. However, the figure was above economists’ expectations of a 21.2% decline. There were signs of a recovery, as the economy returned 8.7% in June, also above expectations.
To read: Biden chooses Kamala Harris as his VP. What that means for investors.
Investors are hoping for another coronavirus relief package in the US, but negotiations do not seem to be going well. Earlier Tuesday, Senate Leader Mitch McConnell accused majority Democratic lawmakers of using the pandemic as a “political game” and trying to add claims to the crisis in coronavirus on relief plans.
The threat of a second wave of the pandemic has meanwhile continued to increase, with cases in France doubling in the past 24 hours. The German daily infection rate increased above 1,000 for the fourth time in a week.
Just Eat Takeaway stock rose 4.5% after the food delivery company reported rapid revenue and orders in the first half of the year when it took advantage of coronavirus shelters across Europe. However, the company said pre-emptive losses increased to € 121 million, from € 7 million a year earlier, mainly driven by costs related to the merger between Just Eat and Takeaway.com and the proposed acquisition of Grubhub.
Shares of Admiral Group rose 6.7% as UK-listed insurance company said it would pay the special dividend it issued in the wake of pandemic after a 31% rise in’s premium profit. the first half.
Moderna (ticker: MRNA) was a big winner in premier trade in the US. The shares gained 7.2% after the company signed an agreement with the US government to supply 100 million doses of its potential Covid-19 vaccine for $ 1.5 billion.
Tesla (TSLA) shares were up 6% after management announced a five-for-one action split, making it easier for retail investors to get their hands on the expensive shares of the electric car. The stock will launch on August 31 on a split-adjusted basis.
Eastman Kodak (KODK) shares gained 4.1%, even though the former photo giant reported a loss for the second quarter. Investors were encouraged by Kodak’s plans to enter the pharmaceutical ingredients business.
.
