The backlash continued overnight, stripping almost 10% off Asian tech mega-caps such as Alibaba, and 8% off Tencent. European technology stocks were among the worst performers on Wednesday.was last up 0.5%, led by gains in oil and gas, retail and industrial stocks – ones that are highly exposed to the health of the global economy – while travel and technology stocks acted as a drag on the broader index.
Optimism over the prompt roll-out of Pfizer's vaccine overshadowed the still-dire rise in infection and hospitalization rates. The US reported a record rise of 120,000 cases on Tuesday, while total cases topped 10 million. Italy on Wednesday said it would impose tougher lockdowns on the worst-hit parts of the country, as infections there continue to surge.
CMC Markets chief strategist, Michael Hewson, said: "This week's news on a vaccine, while welcome doesn't change the fact that France, Germany and the UK are still in the middle of partial economic lockdowns, while infection rates in the US have continued to rise. However, for now, markets appear content to ignore this and are now focusing on the potential green pastures of a post pandemic world, with a workable vaccine.
Hewson added: "Whether this is premature, only time will tell but for now investors appear content to ride this particular wave until it breaks."Buy these 31 stocks right now to capitalize on a post-pandemic world, Credit Suisse says.On the political front, the US secretary of state, Mike Pompeo, on Tuesday refused to acknowledge Joe Biden's victory in last week's election and told reporters to expect a "smooth transition" to a second Trump term.
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