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.
The Dow index dips
On Tuesday, American stock futures went down because worries about the geopolitical situation in the European Union worried market participants.
The Dow blue-chip index futures headed south 0.70% demonstrating a reading of 24557.0. At the same time the S&P 500 futures went down 0.70% coming up with 2699.25. Additionally, futures of the high-tech Nasdaq 100 slumped by 0.52% trading at 6924.75.
Italian populist parties gave up plans to build up a coalition government right after Italian President Sergio Mattarella didn’t want to approve the post of Minister of Economy and Finance for the well-knwon Eurosceptic rolled out by these political parties. The ex-IMF official, Carlo Cottarelli, was urged to create a new Italian government. Moreover, early parliamentary elections are anticipated to take place in August.
Investors keep worrying about the fate of talks between the United States and North Korea. In spite of the fact, the US president canceled the summit with the North Korean leader, on Friday he told that talks with the isolated regime are still possible.
At the auction before the market started, equities of the Chinese social network Momo Inc that went up by 8.47% after the publication of the company's report, surpassed forecasts of financial analysts. It’s because one of the top performers, stocks of Frontline Ltd rallied by about 5.46%.
In addition to this, Bank of America shares dived 2.69%, Nokia Corp ADR lost 5.05%, while equities of Barclays headed south by 3.76%.
As for European stock markets, they were seen in the red zone. As a matter of fact, the French CAC 40 went down about 1.42%, the German DAX sank by 1.94%, while the London FTSE 100 declined by 1.34%. Besides this, the Euro-European index Euro Stoxx 50 dipped by 1.63%, the Spanish IBEX 35 lost by 2.46%.
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.