Concerns about the spread of the virus that bothered investors' heads this week led to potential short-term corrections on major global stock exchanges, including the United States, where the earnings season continues, inflaming emotions and investor portfolios.
Despite the increase in the number of subsequent victims of the virus and the number of new cases (Chinese media today announced that the total number of cases in the country has increased to 830 from almost 600 on Thursday) The World Health Organization has stated that the spread of the new coronavirus is an emergency situation in China, but it is not a global epidemic yet. This statement was enough for investors on Wall Street and not only to start buying slightly cheaper shares again.
What's more, positive information for the stock market was to be information about the fact that the company Gilead Sciences Inc. assessed that the experimental anti-Ebola drug could also be used to treat a disease caused by the current virus. However, apart from this topic, it is impossible to ignore the excellent result of the Intel company included in the Nasdaq 100 index (US100 on the Conotoxia trading platform). Intel reported that sales increased by 8 percent in the fourth quarter of 2019. to $ 20.21 billion, beating analysts' expectations of $ 19.23 billion, and net income reached $ 6.91 billion. The company's shares in the after-hours trading increased by about 7 percent.
As a result, the bull market of technology companies is in full swing, and the Nasdaq 100 hits new records. Investors will certainly be impatiently waiting for the next week, because then the results of such giants as Apple, Facebook or Boeing will appear. In addition to the results themselves, the management boards' forecasts for the following quarters are also important, and this one is very optimistic for now.
Risk appetite is also visible on stock exchanges in Europe. The German Dax (DE30 on the Conotoxia trading platform) has largely erased the last discount, approaching again historically record levels. Nevertheless, from the technical point of view, it is precisely in this area that there may be potentially significant resistance that the bulls on the German stock exchange will have to face probably in the nearest future.
Daniel Kostecki, Chief Analyst Conotoxia Ltd.
Materials, analysis and opinions contained, referenced or provided herein are intended solely for informational and educational purposes. Personal opinion of the author does not represent and should not be constructed as a statement or an investment advice made by Conotoxia Ltd. All indiscriminate reliance on illustrative or informational materials may lead to losses. Past performance is not a reliable indicator of future results.
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