USA500, Daily
The key USA500 closed last week up 1.78 points on Friday at 3340, but down for the second consecutive week. The USA30 was also positive for Friday, closing up +39 points whilst the USA100 lost 66 points.
Sentiment over the weekend and in Asian and European trading has been buoyed by a firmer risk appetite amid progress on a vaccine and corporate deal making. Clinical trials of AstraZeneca’s vaccine have resumed in the UK — the study was paused last week after one person in the trial became ill. Trials remain on hold in the US and other countries, however. Eli Lilly has a drug that cuts recovery time when used with Remdesivir.
Oracle is the winner in the bidding for TikTok, according to reports, as the Chinese holding company ByteDance has pulled the sale of its US assets to Microsoft. A variety of other deals featured over the weekend: ViacomCBS is reportedly close to selling CNET Media Group, Gilead Sciences announced it is buying Immunomedics for $21 bln, shares of Nvidia have rallied after the firm closed in on a deal to purchase Arm Holding for more than $40 bln from SoftBank and Verizon have just announced a cash and share purchase of wireless company TracFone for up to $6.9 billion.
In opening trades in the cash market the USA500 is up 0.95% (32 points) at 3373, USA100 up 1.35% (146 points) at 11,000, and the USA30, trades up 0.60% (169 points) 27,834. Technically, all there key indexes are holding the 50-day moving average support areas that sit at 3,333, 11,174 and 27,412 respectively as “buying-the-dip” continues to play out so far this September.
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Stuart Cowell
Head Market Analyst
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