News & Analysis

Overnight on Wall Street: Tuesday 18 May 2021

18 May 2021 By Lachlan Meakin

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Equity Markets

US equity markets started the week with a modest loss as three of the four major indexes declined.

  • Dow Jones down 54 (0.20%)
  • NASDAQ down 51 (0.38%)
  • S&P 500 down 10.5 (0.25%)
  • Russell 2000 up 2.5 (0.11%)

Tech stocks continued their weakness, with Apple (AAPL) and Netflix (NFLX) each down 0.9%. Microsoft (MSFT) dropped 1.2%, while Tesla dropped more than 2% as Michael Burry of the Big Short fame revealed a significant short position on the electric carmaker.

Growth and Tech stocks have remained under pressure as investors mull over whether a rise in inflation will be a trend going forward or transitory as the Fed expects.

Economic Announcements – FX

The RBA will release their May Monetary Policy Meeting Minutes this morning. This will give Aussie investors some clarification on the decision making process at the last meeting. With RBA members seemingly in lockstep with each other, there shouldn’t be any surprises that will move the AUD significantly.

Tonight, the Bank of England’s governor Bailey will be joined by deputies Broadbent and Ramsden to testify on the bank’s quantitative easing policies before the Lords Economic Affairs Committee, in London. With the BoE recently announcing plans to prepare for tapering their asset purchases, this testimony will be closely watched by traders to get any clues as to the banks timing on this, GBP volatility is a strong possibility.

Cryptos

Bitcoin and most other cryptos continued their decline on Monday as Elon Musk continued to feud with the crypto-verse on Twitter over the weekend.

With a large part of Bitcoin’s recent strong rally being based on the belief of corporate acceptance, Tesla’s repudiation of the crypto has seen BTCUSD drop around 15% in the last week.

 

Wednesday, 19 May 2021 – Indicative Index Dividends
Dividends are in Points

SymbolDividend
ASX2000
WS306.76
US5000.578
US20000.059
NDX1003.485
CAC400
STOXX500
ESP350
ITA400
FTSE1000
DAX300
HK500
JP2250
INDIA500

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Disclaimer: Articles are from GO Markets analysts and contributors and are based on their independent analysis or personal experiences. Views, opinions or trading styles expressed are their own, and should not be taken as either representative of or shared by GO Markets. Advice, if any, is of a ‘general’ nature and not based on your personal objectives, financial situation or needs. Consider how appropriate the advice, if any, is to your objectives, financial situation and needs, before acting on the advice. If the advice relates to acquiring a particular financial product, you should obtain and consider the Product Disclosure Statement (PDS) and Financial Services Guide (FSG) for that product before making any decisions.