BoA has tracked signs of the upcoming stock market sell-off. While more expensive and at-risk stocks are set to fall, value stocks should survive.
Key EU equities go up
On Thursday, European markets rallied, as investors watched the steep increase in financial as well as technological stocks.
The European Stoxx 600 index gained 0.3% in the morning, with most sectors and large exchanges on positive territory.
On Thursday, equities of technology companies were leaders, adding 1%, proceeding with their surge among technological shares in the United States. Stocks of Siltronic, Temenos and Ericsson gained more than 1.5% in mid-trading.
Besides this, motor vehicle shares in Europe led losses, losing more than 1.4% after news that the US government plans to impose import tariffs on cars in the Unites States. According to informed sources, US President Donald Trump is on the verge of charging a 25% tariff on car import. Unexpected news seems to have worsened worries as for new global tariffs. Shares of Porsche, Daimler and BMW dived 2.4%.
Considering individual stocks, Electrocomponents rallied to the top of the index after on Thursday posted a 32% soar in profit before tax for the whole year. The company, whose stocks are listed in London, also informed that it had reached an agreement to acquire an IESA outsourcing company for 88 million pounds. Stocks of Electrocomponents edged up by 10%.
Meanwhile, the Swiss food company Aryzta went down to the bottom of the European index following news about income. The company reported a 17% sag in revenue in the third quarter on Thursday and also lowered its earnings forecast for the second time this fiscal year. Stocks went down by 25%.
Furthermore, in addition to the factors that irritate investor sentiment, Donald Trump told on Wednesday that the everlasting trade conflict between the United States and China requires a different structure. In response, on Thursday, the Ministry of Commerce of China reported that it did not pledge to reduce its trade balance with the United States to a certain figure.
On Saturday, the US Food and Drug Administration approved Johnson&Johnson’s vaccine for emergency use against Covid-19. Will JNJ rise?
Twitter reported encouraging earnings results. Cisco's earnings beat estimates, but revenue declined for the fifth quarter in a row.
Great news for oil bulls! OPEC and its allied producers agreed to expand output cuts for the next month.
The USD skyrocketed after Fed Powell’s speech. OPEC and allied producers agreed to extend production cuts for another month. Oil surged.
The European Central Bank publishes its monetary policy statement that includes an announcement of the interest rate on March 11, at 14:45 MT time.