16th August 2021 Morning Report

Monday 16th August 2021

U.S. stock markets recorded new highs Friday as investors ignored a sharp drop in consumer confidence. The University of Michigan’s preliminary index of consumer sentiment last month fell sharply from 81.2 in June to 70.2. The drop was one of the steepest on record, following concerns over inflation and the continuing covid problem. The sharp drop in confidence sparked a flight into the safety of U.S. Treasuries, pushing the yield on the 10-year note down to 1.297%, the lowest in a week.

The Dow Jones Industrial Average increased 0.05%, while the S&P 500 index and the Nasdaq Composite index advanced 0.16% and 0.04%, respectively. Banks closed lower due to economic concerns. Walt Disney Co. reported earnings and revenue that exceeded Wall Street estimates on the back of strong demand recovery for its products and the continued growth of its Disney+ streaming service. Airbnb Inc.’s net loss narrowed by 88% from a year ago as revenue and bookings exceeded analysts' expectations.

Other overseas markets with strength in Europe and weakness in Asia. European stock exchanges were all higher with Germany’s DAX 30, Britain’s FTSE 100, and France’s CAC 40 all gaining between 0.2% and 0.4%. In Asia, Japan’s Nikkei 225, China’s Shanghai Composite and Hong Kong’s Hang Seng index lost 0.14%, 0.24% and 0.48% respectively.

West Texas Intermediate crude oil dropped to $68.44 a barrel and gold jumped $26.20 to $1,775.20 an ounce.

Morning Report 16 August 2021

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