Wall Street Closes Higher, Supporting Tesla’s Gains

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  • European shares are rising, led by cars

On Monday, Wall Street rallied as tech stocks recovered from a recent wave of sales sparked by a jump in bond yields, and Tesla shares jumped after a fund run by a major investor in the electric car maker said its shares would approach $ 3,000 by 2025.
Tesla’s gains were among the biggest supporters of the Standard & Poor’s and the Nasdaq.
Analysts said the decline in US 10-year Treasury yields from their 14-month highs, when they hit 1.754 percent last week, allowed technology stocks to recover.
The Dow Jones Industrial Average ended the trading session, up 0.31 percent to 32,730.35 points, while the benchmark Standard & Poor’s 500 Index rose 0.70 percent to close at 3,940.59 points.
The Nasdaq Composite Index jumped 1.23 percent to close at 13,377.54 points.

European stocks

European stocks rose by the close, Monday, after the automakers resumed their rally, while banks retreated following a sharp decline in the Turkish currency and in light of the continuing fears of further restrictions due to the growing Corona virus infections on the continent.
The pan-European STOXX 600 index rose 0.2 percent, reversing its early losses, with auto stocks rising for a fifth day in the last six sessions.
Porsche shares jumped 8.9 percent, supported by a buying spree that lifted Volkswagen shares after the German car maker unveiled plans to challenge Tesla in the electric car market.
Deutsche Bank raised its target price for Porsche, which holds a majority stake in Volkswagen’s common stock, after raising its price target for Volkswagen.
“Volkswagen is doing very well with cost cuts … which is what makes the current valuations interesting in the medium to long term,” said Michael Pedroni, fund manager in Dikalia.
The Turkish lira plunged to near a record low after President Recep Tayyip Erdogan fired the central bank governor at the weekend and replaced him as a critic of high interest rates.
Shares of eurozone banks exposed to Turkey, such as the Spanish BBVAA, the Italian UniCredit, the French BNP Paribas and the Dutch ING, declined between 0.8 percent and seven percent. percent.
However, sentiment improved by the end of the session.
“Fortunately, the situation is not yet comparable to what happened in 2018, when the European Central Bank warned of potential risks to banks exposed to Turkey and the risk that their troubles could spill over into the financial system in general,” said Ross Mold, director of investment at AJ Bell. European banks have reduced their loan books to Turkey since 2018, and HSBC is considering a full withdrawal.

Asian stocks

The performance of stocks in the Asia-Pacific region was mixed, in trading Monday. In Japan, the Nikkei index was down 1.62% in afternoon trade, while the Kospi in South Korea was up 0.26%.
Japanese shares plunged, on Monday, as carmakers were hit after a fire broke out at a factory owned by a semiconductor supplier Renesas Electronics, sparking concerns about damage to vehicle production due to a further shortage of chips. The Nikkei continued to perform below the level of the broader market, after the Bank of Japan said on Friday that it would no longer buy in index funds linked to the Nikkei. The Nikkei fell 2.07 percent to close at 29,174.15 points, the biggest drop since March 4.

Gain 8 days

The broader Topix index ended an eight-day winning streak, shedding 1.09 percent to close at 1,990.18 points. Renesas shares fell as much as 4.89 percent after the large semiconductor supplier to the auto sector said production at its fire-damaged plant would take at least a month to resume, and that carmakers would start to be hit by a shortage of imports in about a month.
The transport equipment index recorded the largest decline in the market, followed by the insurance sector. Honda Motor was down 3.63%, while Nissan Motor was down 3.7%. Auto component maker Denso lost 4.94 percent, and Toyota Motor fell 3.26 percent. And stocks that have large weights on the Nikkei index continued to suffer as a result of the Bank of Japan’s decision to buy in index funds linked only to Topics.
Fast retailer fell 4.54 percent and Daikin fell 4.02 percent.

Mainland China markets

Also, mainland Chinese markets gained in the afternoon, with the Shanghai Composite Index up 0.9%, while the Shenzhen Component gained 0.71%. Hong Kong’s Hang Seng Index is down 0.18%. Meanwhile, stocks rose in Australia, where the index rose 0.74%. The MSCI broader Asia Pacific Index of stocks rose 0.31%. (Agencies)





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