Traders Edge : Thursday 25 February

Shares on Wall Street ended higher on Wednesday, as a selloff in technology-related stocks eased and a rotation into cyclical shares continued after Federal Reserve Chair Jerome Powells comments calmed inflation worries.

Asia

Chinese shares closed lower on Wednesday, with the benchmark stock index witnessing its biggest daily drop in seven months, as investors worried about high valuations amid growing concerns of tightening in policies.

The benchmark Shanghai Composite Index sank 2 per cent to 3,564.08, in its biggest daily percentage loss since July 24. The blue-chip CSI300 index slid 2.6 per cent.

In Hong Kong, the Hang Seng suffered its biggest daily drop since May last year amid Hong Kong’s first trading tax hike since 1993. The index fell 2.99 per cent to 29.718.24.

In Japan, the Nikkei 225 fell 1.61 per cent to 29,6.71.60.

Europe

European shares rose on Wednesday as sectors primed to benefit from economic recovery were supported by strong German growth data, although concerns over a possible rise in inflation and lofty equity valuations kept gains in check.

The pan-European STOXX 600 ended 0.5 per cent higher, with Germany’s DAX adding 0.8 per cent as data showed bullish exports and solid construction activity helped Europe’s biggest economy to grow by a stronger-than-expected 0.3 per cent in the fourth quarter.

Travel stocks jumped 1.9 per cent to near one-year highs, leading European sector gains on optimism around major countries lifting coronavirus-induced lockdowns.

Traders-Edge-25-February-2021

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