City A.M. TV – Daily Market Snapshot (video)
The divergence between the ‘growth’ and the ‘value/cyclical’ parts of the global equity market continued yesterday. Value oriented markets, like the UK’s FTSE100 and parts of the European equity landscape, rallied on the session.
The UK’s FTSE all share banks sector, for example, is back at its highest since the start of the pandemic. In contrast the US’s tech heavy NASDAQ 100 index sold off sharply (-2.9 per cent), as various tech/growth asset prices broke below some key support levels.
That included some of the large cap tech names, like Facebook and Amazon, which have been leadership stocks over recent years (up until September last year), as well as many of the ‘hot’ 2nd line tech names (like EV manufacturers Nio & Tesla, as well as Peloton & Zoom).
As well as the macro data releases, markets will today focus on whether or not key support levels hold for certain US equity indices (including the NASDAQ100 & S&P500). Macro data releases include the labour market productivity and unit labour costs data for the fourth quarter (although this is a second estimate so less important). US jobless claims are released at 1:30pm (London time), while Fed Chair Powell is ‘in conversation’, discussing the US economy at the WSJ jobs summit (5:05pm UK time).