Yazar: Geoffrey Smith
Investing.com – According to the World Health Organization (WHO), there was an increase in Covid-19 cases worldwide for the first time in seven weeks last week. The institution said that people “let their guard down”. China’s chief regulator shook the domestic markets with his warnings about balloons and Target and Ross Stores lead the retail earnings line. Oil takes a short breath, but is rising from lower levels after data showing that Russian production fell last month.
Here’s what you need to know in financial markets on Tuesday, March 2.
1.Covid-19 cases rose for the first time in seven weeks last week
The epidemic is back. Or we could say instead that its ending might have been a little more delayed. WHO said that the number of cases worldwide rose last week for the first time in seven weeks.
Four of WHO’s six regions – the Americas, Europe, southeast Asia, and the eastern Mediterranean – reported cases of escalation with sanitation relaxation, the spread of new mutations, and “people lowering their guard”, according to WHO director general Tedros Adhanom Ghebreyesus.
These figures came at a time when the US states and cities gradually lifted restrictions on economic and social life as the vaccine campaign accelerated thanks to Johnson & Johnson’s approved Covid-19 vaccine.
Germany, Europe’s largest economy, is also reported to be planning to reopen secondary stores in regions with low infection rates by loosening the quarantine that has been in effect since December, but President Emmanuel Macron says France still needs 4-6 weeks.
Eyes 2 on retail earnings
The retail industry will dominate the earnings chain of the day: Next to Autozone are Target (NYSE :), Nordstrom (NYSE 🙂 and Ross Stores (NASDAQ :).
Expectations are high for Target. Thanks to its flexibility in adopting tactics to deal with the epidemic, it reported a 17% increase in sales between November and December.
Mercado Libre, on the other hand, finally shared its quarterly results after repeated delays, reporting a surprising loss of over one dollar per share versus an expectation of 16 cents profit. The Latin American e-commerce site was one of the most tense values after last year’s brilliant rally. Its shares fell 2.5% before the market.
3. Stock markets will open low with minor corrections
US exchanges will open somewhat lower, giving back some of the gains from Monday’s rally, driven by the approval of the J&J vaccine and the passage of the incentive bill through the House of Representatives.
The Nasdaq lost 0.4% and 0.3%, while dropping 64 points.
Among the stocks that may be in the spotlight is Zoom Video, which shares strong gains on Monday and predicts it will evolve from a “favorite app” to an Internet platform company. Shares fell nearly 40% in three months after peaking in October but have recovered over 25% since then. It gained 8.6% in pre-market trading.
4. China’s regulator warns about the balloon
China’s top banking regulator said he is concerned about the risk of bubbles in foreign markets. He also stated that the Chinese housing industry also appears to be tense.
Guo Shuqing, chairman of the Chinese Banking and Insurance Regulatory Commission and Party secretary, said the European and US markets are going in different directions with their core economies and will see a correction.
With these statements, sales in the Chinese markets were triggered. Analysts interpreted these statements as warnings without openly criticizing the authorities responsible for domestic conditions. Saxo Bank analysts point out that Chinese stocks are now trading at a record premium to their world counterparts and have traded at a discount for most of the past 10 years.
5. Oil soared after Russia and OPEC data; API stock data will be released
Crude oil prices fell along with other commodities, in a move that appears to be a correction of extremely high levels after huge increases in recent weeks.
prices fell 0.1% and lost 0.3%. Both contracts rose on the back of data showing that OPEC and Russian output fell in February. OPEC has declined from the 1 million barrels daily production cut announced by Saudi Arabia due to the continuing extreme cold in Russia. The figures come before the monthly production policy review, which will take place on Thursday.
On the other hand, the Wall Street Journal reported that the American Petroleum Institute (API) is about to endorse the principle of pricing carbon dioxide emissions and has given up its longstanding opposition.
The API will also share its weekly oil stocks report.