The first few minutes of quotes on Wednesday’s session were encouraging in New York, with a positive Nasdaq trying to line up the 9th rising session. But everything changed when the mayor of New York -Andrew Cuomo- in agreement with the governors of New Jersey and Connecticut announced a 14-day quarantine for people from the states most affected by the pandemic rebound. These states are Alabama, Arkansas, Arizona, Florida, North and South Carolina, Washington State, Utah, and Texas.
Despite many alarming signs of contamination for 15 days, the US indices continued their bullish rally, the Nasdaq beating record after record since June 5: this reminded in many ways the period of disconnection from reality from January 27 to February 19 latest.
The loose Nasdaq fell back below 10,000 (around 9,870) after lining up eight consecutive sessions of increase (the index gained + 30% in the 2nd quarter, its best performance since the end of 1999).
In addition to the pandemic, on Wednesday was announced deterioration of trade relations between the US and Europe. The Trump administration plans to impose $ 3.1 billion in additional customs sanctions on imports of European products (Germany is the first target as well as France and Italy).
The Nasdaq suffered a burst of profit taking on Expedia -6.2%, NXP -5.7%, Tesla -4.1%, Regeneron -3.8%, Facebook -3.4%, Micron -3, 1%, AMD -3%, Microsoft -2%, Apple -1.8% … and Amazon drops 1.1% (to $ 2,374) after registering a new absolute record at $ 2,796 for a capitalization that has flirted for the 1st time with the $ 1.400bn.
In Tokyo the Nikkei Index At 1.22%
In Tokyo, the Nikkei index ends down 1.22%. The Tokyo Stock Exchange ended lower Thursday in the wake of Wall Street after the announcement of a further increase in the number of new coronavirus infection cases in the United States.
The Nikkei index lost 1.22% to 22,259.79 points, and the broader Topix lost 1.18% to 1,561.85 points.
At the end of the session, the maritime transport stocks dropped 2.65%, and non-ferrous metals stock 2.9%.
Contrary to the general trend, Olympus gained 10.58% the day after the announcement of the sale of its shares.
Toyota, Hitachi, and many other export-oriented companies’ shares drop due to fear of a second peak of the pandemic in the US.
Tokyo Electron gear manufacturer and the Advantest test device maker fell due to their US rivals fared poorly. Fast Retailing and SoftBank Group backed off while furniture retailer Nitori ended the fifth session with gains.
Among other winners were pharmaceutical company Shionogi and robot producer Fanuc.
No Big Changes On Paris Stock Exchange
No big changes are expected at the Paris Stock Exchange this Thursday, June 25, after its sharp decline in the previous session. The lingering uncertainties around the evolution of pandemic keep investors on the alert.
Around 8:15 am on June 25, the futures contract on the CAC 40 index – July delivery – advances by 5.5 points to 4845 points, announcing a start of trading around break-even.
On the macroeconomic level, investors will watch in particular the announcement at the beginning of the afternoon of weekly registration for unemployment benefits in The United States with the hope of seeing them dropping in weeks to come.