Wall Street gains as bond yields fall. Investors are indeed concerned about artificial intelligence, and data-centre bonds have come under pressure as a result. But they are also turning towards other sectors.
By way of example, while shares in Cisco Systems and Nvidia fell 2.7% and 3.6%, respectively, those of Nike and Salesforce rose 5.4% and 4.4%, providing a counterweight. Warsh boosts expectations that the Fed will leave interest rates unchanged in October, with whatever implications that may have for traders.
After a second consecutive session of modest gains for the DAX and CAC 40 on European stock markets, bulls will seek to end the week in positive territory. The DAX stood at 25,382 points, up 1.11% for the week through yesterday, while the CAC 40 was at 7,934, up 1.68%.
Europe divided over energy and the budget after yesterday's deadlock following 14 hours of talks. Once again, the inability to find a way forward on basic issues has been laid bare. The deadlock comes as international media are again reporting the possibility that Christine Lagarde could leave as early as November.
The Greek stock market falls with little resistance, with the banking sector firmly in sellers' sights. They have also been trimming positions in blue chips in recent weeks.
The Banking Index fell 1.73% to 2,977.13 points, while the FTSE 25 lost 0.97% to 6,602.94 points. Trading volume was 47.20 million shares, including 33.39 million in bank stocks. Turnover reached €341.9 million, of which €61.76 million came from block trades.
Brokers point to the sizable block trades in shares of Eurobank, Alpha Bank and PPC, as well as Metlen Energy & Metals, as evidence of market repositioning by “strong hands” following the upgrade/rebalancing.
Their assessment is reasonable: many fund managers investing in emerging and developed markets are indeed moving in different directions, buying and selling, with the result reflected on the stock market.
For now, despite yesterday's fresh pullback, the weekly scorecard for the General Index remains positive. It is up 0.90%, with the General Index at 2,582.10 points. The Banking Index is up 0.54% at 2,977.13 points, despite yesterday's 1.73% drop, while the FTSE 25 has gained 0.85% to 6,602.94 points, despite Thursday's 0.97% pullback.
Whether bulls can finish the week in positive territory will depend both on the broader trend in European markets, with the EuroStoxx Banks remaining a benchmark for investors holding shares in the major banks. But the banking sector alone will not be enough: selling pressure was significant across most blue chips, and some of it may carry over into today's session. Cenergy Holdings, down 5.05%; Optima Bank, down 4.74%; HELLENiQ ENERGY, down 2.05%; and Viohalco, down 2.06%, were examples of rushed partial profit-taking. Most likely, it was “strong hands” doing the selling.
Demand for Capital Maritime Finance reached €1.1 billion, with €300 million to be raised to meet strong demand from institutional and retail investors. The offer price is €7.50, and the company is due to ring the bell for its listing on Euronext Athens on Tuesday.
Euroxx sets a €15.3 target price for AKTOR, with buying interest also seen in Jumbo (26.80), EYDAP (13.42) and AEGEAN (10.98), among FTSE 25 stocks. Buying interest also extended to Bally's / Intralot (1.114), ADMIE (4.28), IDEAL Holdings (5.43) and KRI KRI (33.55).