Global Stocks continues sell-off, amidst report of a strong U.S economic growth

Local Bourse Reverses Yesterday`s Gain
Local Bourse Reverses Yesterday`s Gain

This week, sell-interest dominated in nine (9) of the fourteen (14) stocks markets under our coverage, amid the strong U.S Economic Data showing the U.S real gross domestic product (GDP) increased at an annualized rate of 6.4% in the first quarter of 2021 on the back government money.

However, two of the three broadest market indices in the U.S, which includes the DJIA Index, the Nasdaq Composite Index declined by 0.50% and 0.39%w/w respectively, save for S&P 500 that gained 0.02%w/w, as the U.S Federal Reserve left interest rate and its bond-buying program unchanged in the recent Federal Open Market Committee (FOMC) Meeting.


However, positive sentiment reign in the major market around Europe, as UK FTSE 100, France CAC 40 gained 0.45%w/w and 0.18%w/w respectively, while the Germany DAX  lost 0.94%w/w respectively, amidst a report by the European Central Bank (ECB) that Eurozone GDP fell by 0.6% in the first quarter of 2021.

Nevertheless, mixed sentiment prevailed across the major market in Asia, as Hong-Kong HANG SENG Index, China Shanghai Composite Index, and Japan Nikkie 225 that lost 1.22%w/w, 0.79%w/w, and 0.72%w/w respectively, save for India S&P SBE Index that gained 1.89%w/w, amid reports of a resurgence of Covid-19 cases in the region.

Furthermore, three of the four emerging market indices under our coverage, Brazil’s BOVESPA, Egypt EGX30, and South-Africa FTSE/JSE Index all lost 1.36%w/w, 1.18%w/w, and 0.53%w/w  respectively, except for Argentina MERVAL Index gained 3.55%w/w.

We expect to see some modest recovery in the next trading week in reaction to the report of the strong U.S Economic Data, which may be the sign that world economic recovery is back on track.