Global Equities: Positive sentiment buoys global markets’ performance on vaccine rollout, Biden confirmation

By Charles Abuede

With the on-going COVID-19 vaccines rollout, which is simultaneously taking place in more than 20 countries globally, and plans for other countries to commence, there exists a high anticipation of an upbeat in the global economic recovery, particularly as central banks are implementing accommodative monetary and fiscal policies. On the other hand, as stringent lockdown measures are implemented across nations due to the resurgence in COVID-19 cases and its new variant, which is about 70 per cent more transmittable, it is a no-brainer that this pandemic will leave a lasting impact on the global economy.

Across the developed markets in the last week, the performance was impressive as all the indices gained. The US S&P 500 and NASDAQ indices rose 1.8 per cent and 2.3 per cent from the previous week, respectively following the prospects of more stimulus as Biden’s victory is upheld. Similarly, Germany’s XETRA DAX, France’s CAC 40 and the UK’s FTSE All-Share indices appreciated 2.6 per cent, 2.7 per cent and 5.6 per cent from the previous week’s performance respectively as recovery optimism lifts sentiment. Also, Hong Kong’s Hang Seng and Japan’s Nikkei 225 indices closed the week higher by 2.4 per cent and 2.5 per cent from the previous week’s gains respectively.

Performance in the BRICS markets mirrored the developed markets as all indices appreciated from the previous week. Similarly, South Africa’s FTSE/JSE All Share and Russia’s RTS indices led the pack, up 6.9 per cent and 6.0 per cent from the previous week, respectively, as stocks benefited from hopes for more US economic stimulus. Likewise, Brazil’s Ibovespa and China’s Shanghai Composite indices posted 3.2 per cent and 2.8 per cent gains from the previous week respectively, while India’s BSE Sens index advanced 1.9 per cent from the preceding week.

Across financial markets within our African scene, the performance was also positive although Nigeria’s ASI and Morocco’s Casablanca MASI indices lost 0.37 per cent and 0.3 per cent from the previous week respectively. Ghana’s GSE Composite index gained the most, appreciating 2.1 per cent from the previous week. Similarly, Kenya’s NSE 20 and Egypt’s EGX 30 indices rose 1.5 per cent and 0.8 per cent from the previous week respectively. Lastly, Mauritius’ SEMDEX index increased 0.4 per cent from the previous week.

The sentiment in the Asian and Middle East markets were similar as all indicators gained. Thailand’s SET and Turkey’s BIST 100 indices recorded the highest gain, up 6.0 per cent and 4.3 per cent from the previous week respectively. Likewise, Qatar’s DSM 220 and UAE’s ADX General Indices gained 2.3 per cent from the previous week apiece. Finally, Saudi Arabia’s Tadawul ASI indices climbed 0.5 per cent from the earlier week.