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International Market Update
- European stocks closed sharply higher on Tuesday as investors reacted to new developments related to omicron covid variant. The pan-European Stoxx 600 ended the day up 2.5%, with technology stocks leading the gains with a 5.6% gain, while all sectors and major bourses were firmly in positive territory. German industrial production unexpectedly grew 2.8% month-on-month in October, the Federal Statistics Office said on Tuesday, after shrinking 0.5% in September. A Reuters poll had forecast a 0.8% increase in October. However, overall output remains 6.5% lower than in February 2020, before the pandemic restrictions.
- U.S. stocks rose for a second day, continuing their recovery from recent turmoil, as investors became less fearful of the potential economic impact of the new Omicron coronavirus variant. Technology stocks were in recovery mode as investors shook off Covid fears and bought the recent dip, sending the Nasdaq higher. Chipmakers were also among the big gainers, with Intel jumping 3.1%. after news broke that the company plans to take its self-driving car division, Mobileye, public in mid-2022. Other mega-cap tech stocks also rose: Microsoft and Amazon rose more than 2%.
- Chinese stocks lagged other Asia-Pacific markets this morning, with troubled Chinese property developers back in the spotlight. Chinese social media giant Weibo made its stock market debut in Hong Kong. Weibo made its stock market debut today in a secondary listing at an offer price of $272.80 Hong Kong dollars ($34.98) per share. The primary listing will be on Nasdaq. Meanwhile, trading in shares of major Chinese property developer Kaisa will be suspended on Wednesday, according to the Hong Kong Stock Exchange.
In International news
Chinese property developer Kaisa suspends trading in Hong Kong again as property worries resurface
Trading in shares of Chinese property developer Kaisa was suspended today for the second time in two months as problems in China’s property sector resurfaced this week. The developer had been troubled by debt problems as it struggled to make repayments recently. According to Reuters, Kaisa was unlikely to meet Tuesday’s deadline to repay $400 million in offshore debt. Kaisa had suspended trading for nearly three weeks in early November after it was revealed that the company had missed a payment on an asset management product. No immediate reason was given for the latest trading halt.
Shares of Chinese social media giant Weibo fall on Hong Kong debut
Social media giant Weibo has made its Hong Kong stock market debut as Chinese technology companies have come under heavy pressure at home and abroad. Shares of Weibo fell more than 6% in the first few minutes of trading. The company joins other major Chinese tech companies, including Alibaba and JD.com, that are listed in both the U.S. and Hong Kong. This comes just days after Chinese ride-hailing giant Didi announced it would move its listing from the US to Hong Kong. Weibo raised $385m (£290m) from the secondary listing of its shares in Hong Kong. The company’s US-listed shares have lost about a third of their value in the past six months.