Indices rally after COVID-19 uncertainty fades
Indices across the globe continued to rally on Wednesday as markets began to ignore recent uncertainty around the delta variant.
After falling by its most since January, the Dow Jones led the rebound in the United States, climbing by as much as 140 points in today’s session.
This comes despite data showing that the 7-day average for COVID-19 related infections, had risen to above 37,000 earlier today.
In the United Kingdom, 47.599 cases of the virus were reported in the last 24-hours, despite this, the FTSE 100 rose by 1.70% on Wednesday.
Many believe that the rebound could be temporary and wait to see if consumer confidence is dented by the recent climb in cases.
Netflix shares fall amidst disappointing earnings call
Moving away from COVID-19, earnings season continued this week, with Netflix the latest company to announce its Q2 financial figures.
The tech giant reported that its earnings per share fell below expectations, coming in at $2.97 vs $3.16 expected.
As a result of this, shares in the company were down by as much as 4% today, despite revenue and paid subscriber additions beating forecasts.
Revenue came in at $7.34 billion vs $7.32 billion expected, whilst global paid net subscriber additions rose to 1.54 million vs 1.19 million expected.
The tech-centric NASDAQ was up 0.76% as of writing.
Oil price rebounds despite inventories rising
Oil prices were trading higher on Wednesday, after falling to their lowest level since May during yesterday’s session.
Prices of WTI crude rose to an intraday high of $70.92 during trading, despite data showing that U.S. crude inventories had risen.
Data from the Energy Information Administration showed that inventories rose by 2.1 million barrels last week to 439.7 million barrels.
This was unexpected, as analysts had forecasted a 4.5 million-barrel drop in the latest report.
This would be a boost to OPEC+ producers, who this week agreed to increased output from August – December 2021.
Quote of the day – “Stocks are bought not in fear but in hope. They are typically sold out of fear.”– Justin Mamis
Senior Market Analyst