DAILY MARKET UPDATE

September 28, 2020

The Asia Pacific region was mostly higher Monday on continued strength in Chinese industrial profits; China’s August industrial profits rose 19.1%. Hong Kong-listed shares of Chinese chipmaker SMIC fell on Monday following reports that the U.S. has imposed restrictions on exports to the firm due to risks of military use. European bourses rallied Monday, led by the banking sector; the catalyst were surging HSBC shares after China’s Ping An Insurance announced that it would increase its stake in Europe’s largest lender. Virus worries were pushed to the back burner and hopes surrounding U.S. fiscal stimulus and several M&A announcements prodded investors’ animal spirits. A rebound in European banks may have been the catalyst. The Dollar index reversed course from last week giving back 0.4% while Treasury yields stayed remarkably steady. Late in the trading session President Trump announced a ‘massive and groundbreaking’ expansion of testing, but the markets showed little reaction.

Markets:

* Nikkei +1.32%

* Shanghai Composite -0.06%

* Hang Seng +1.04%

* DAX +3.22%

* FTSE +1.46%

* CAC +2.40%

* DJIA +1.51%

* S&P 500 +1.61%

* Nasdaq +1.87%

* Russell 2000 +2.64%

BSD Global Tech Hedge Fund +0.21%

After Market Movers: 

* TMDX -6% Postpones FDA panel meeting; and,

* FLUX +45% Q2 Rev more than doubles.