Markets.com Logo
euEnglish
LoginSign Up

Stocks grind higher, Vectura goes up in smoke

Aug 13, 2021
4 min read
Table of Contents

    All a tad quiet this morning. European stock markets were tentatively higher in early trade Friday after another record session on Wall Street saw the three major indices rally, though small caps declined. The FTSE 100 led the way as it sprang back from yesterday’s ex-divis, up 0.3% to 7,220, whilst the DAX moved close to 16,000. Asian stock markets moved in the opposite direction as concerns about the pace of the delta variant in the region left many of the major indices lower again. There is not a whole lot going on today and risk remains fairly muted as US 10yr yields hover around 1.34% and FX markets look reasonably calm. Gold made further gains to $1,760 in the wake of yesterday’s strong producer price inflation print in the US.

     

    Up in smoke: Vectura’s board recommended the Philip Morris offer of 165p, a 10p-per-share premium to the Carlyle bid, but in the statement they seemed to make a point of stressing they did so on advice from their bankers and they were heavy on the idea of ‘fiduciary duties’. They argue that “wider stakeholders could benefit from PMI’s significant financial resources and its intentions to increase research and development investment and to operate Vectura as an autonomous business unit that will form the backbone of its inhaled therapeutics business”, but clearly there will be much hand wringing over the fact this business has been taken over by Big Tobacco and many investors will worry about the ESG implications of the transaction. But probably not enough to vote down the deal. The government could yet step in.

     

    Shares in Airbnb fell in after-hours trading despite a 300% pop in revenues. Despite the strong figures for the second quarter, the company warned about the impact of the delta variant. Meanwhile Disney reported a blowout quarter, with parks returning to profitability for the first time since the pandemic struck. Earnings came in at $0.80 per share vs the $0.55 expected as subscriber figures for Disney+ also beat forecasts at 116m. 

     

    On Tuesday we spoke about the demand problem for oil, specifically that too much hope was being placed on the recovery in H2. Right on cue, the International Energy Agency (IEA) sharply downgraded its demand outlook for the rest of 2021 due to the worsening progress of the pandemic. It warned that new restrictions in consuming countries, particularly in Asia, will reduce mobility and oil use. Nevertheless, it says the ongoing OPEC+ restraint will keep the market in balance for now, though a surplus may be seen in 2022 if members and other producers ramp up.  

     

    According to the IEA, oil demand is set to rise by 5.3m bpd 2021 and by an additional 3.2m bpd in 2022. OPEC thinks demand should rise 6m bpd in 2021, with 5bpd of that figure due to arrive in H2. It seems OPEC may need to revise its figures for the rest of the year, though it seems the IEA believes the market should remain in equilibrium with existing production cuts.  This pretty much reflects the sentiment in the oil market right now, with prices retreating ~10% since the early July peak, as traders have taken a dimmer view of the demand story. 

     

    Transitory? After the consumer price inflation held at a 13-year high, US producer price inflation rose to 6.2% vs 5.6% expected, with the core month-on-month reading up to 1% against +0.5% forecast. That left those clinging to the CPI-data-showed-inflation-has-peaked narrative a little uneasy. Also please note that a major port in China – the world’s third busiest – is now closed because of a solitary coronavirus case, which will mean ongoing supply chain disruptions, further pressuring PPI and thus CPI higher. 

     

    Chart: Cable starting to look wobbly at 1.38 as it flirts with the 200-day SMA following a bearish MACD crossover on the daily chart.

    GBPUSD Chart 13.08.2021


    Risk Warning and Disclaimer: This article represents only the author’s views and is for reference only. It does not constitute investment advice or financial guidance, nor does it represent the stance of the Markets.com platform. Trading Contracts for Difference (CFDs) involves high leverage and significant risks. Before making any trading decisions, we recommend consulting a professional financial advisor to assess your financial situation and risk tolerance. Any trading decisions based on this article are at your own risk.

    Written by
    SHARE

    Markets

    • Palladium - Cash

      chartpng

      --

      4.46%
    • EUR/USD

      chartpng

      --

      -0.12%
    • Cotton

      chartpng

      --

      -0.50%
    • AUD/USD

      chartpng

      --

      -0.25%
    • Santander

      chartpng

      --

      -1.87%
    • Apple.svg

      Apple

      chartpng

      --

      -0.52%
    • easyJet

      chartpng

      --

      -1.03%
    • VIXX

      chartpng

      --

      3.06%
    • Silver

      chartpng

      --

      3.53%
    Table of Contents

      Related Articles

       Week Ahead: Inflation Data from U.S., Canada, and U.K. Take Centre Stage

      The economic calendar for the week starting Monday, 14 July 2025, begins quietly, with no major releases scheduled that day. On Tuesday, 15 July, attention turns to several high-impact events

      Tommy Yap|about 23 hours ago

      EU-US Trade Talks: Progress, Challenges, and Future Prospects

      The EU and US are seeking a preliminary trade agreement to avoid rising tariffs. This analysis reviews the latest developments and potential challenges.

      Ava Grace|2 days ago

      Elon Musk, Tesla Stock, and Political Ambitions: A Rocky Road Ahead?

      Tesla's stock faltered following Musk's announcement of forming a new political party, raising investor concerns about his focus and intensifying competition.

      Emma Rose|2 days ago
      Markets.com Logo
      google playapp storeweb tradertradingView

      Contact Us

      support@markets.com+12845680155

      Markets

      • Forex
      • Shares
      • Commodities
      • Indices
      • Crypto
      • ETFs
      • Bonds

      Trading

      • Trading Tools
      • Platform
      • Web Platform
      • App
      • TradingView
      • MT4
      • MT5
      • CFD Trading
      • CFD Asset List
      • Trading Info
      • Trading Conditions
      • Trading Hours
      • Trading Calculators
      • Economic Calendar

      Learn

      • News
      • Trading Basics
      • Glossary
      • Webinars
      • Traders' Clinic
      • Education Centre

      About

      • Why markets.com
      • Global Offering
      • Our Group
      • Careers
      • FAQs
      • Legal Pack
      • Safety Online
      • Complaints
      • Contact Support
      • Help Centre
      • Sitemap
      • Cookie Disclosure
      • Regulation
      • Awards and Media

      Promo

      • Gold Festival
      • Crypto Trading
      • marketsClub
      • Welcome Bonus
      • Loyal Bonus
      • Referral Bonus

      Partnership

      • Affiliation
      • IB

      Follow us on

      • Facebook
      • Instagram
      • Twitter
      • Youtube
      • Linkedin
      • Threads
      • Tiktok

      Listed on

      • 2023 Best Trading Platform Middle East - International Business Magazine
      • 2023 Best Trading Conditions Broker - Forexing.com
      • 2023 Most Trusted Forex Broker - Forexing.com
      • 2023 Most Transparent Broker - AllForexBonus.com
      • 2024 Best Broker for Beginners, United Kingdom - Global Brands Magazine
      • 2024 Best MT4 & MT5 Trading Platform Europe - Brands Review Magazine
      • 2024 Top Research and Education Resources Asia - Global Business and Finance Magazine
      • 2024 Leading CFD Broker Africa - Brands Review Magazine
      • 2024 Best Broker For Beginners LATAM - Global Business and Finance Magazine
      • 2024 Best Mobile Trading App MENA - Brands Review Magazine
      • 2024 Best Outstanding Value Brokerage MENA - Global Business and Finance Magazine
      • 2024 Best Broker for Customer Service MENA - Global Business and Finance Magazine
      LegalLegal PackCookie DisclosureSafety Online

      Payment
      Methods

      mastercardvisanetellerskrillwire transferzotapay
      The markets.com/za/ site is operated by Markets South Africa (Pty) Ltd which is a regulated by the FSCA under license no. 46860 and licensed to operate as an Over The Counter Derivatives Provider (ODP) in terms of the Financial Markets Act no.19 of 2012. Markets South Africa (Pty) Ltd is located at BOUNDARY PLACE 18 RIVONIA ROAD, ILLOVO SANDTON, JOHANNESBURG, GAUTENG, 2196, South Africa. 

      High Risk Investment Warning: Trading Foreign Exchange (Forex) and Contracts For Difference (CFDs) is highly speculative, carries a high level of risk and is not appropriate for every investor. You may sustain a loss of some or all of your invested capital, therefore, you should not speculate with capital that you cannot afford to lose. You should be aware of all the risks associated with trading on margin. Please read the full  Risk Disclosure Statement which gives you a more detailed explanation of the risks involved.

      For privacy and data protection related complaints please contact us at privacy@markets.com. Please read our PRIVACY POLICY STATEMENT for more information on handling of personal data.

      Markets.com operates through the following subsidiaries:

      Safecap Investments Limited, which is regulated by the Cyprus Securities and Exchange Commission (“CySEC”) under license no. 092/08. Safecap is incorporated in the Republic of Cyprus under company number ΗΕ186196.

      Finalto International Limited is registered  in the Saint Vincent and The Grenadines (“SVG”) under the revised Laws of Saint Vincent and The Grenadines 2009, with registration number  27030 BC 2023.

      Close
      Close

      set cookie

      set cookie

      We use cookies to do things like offer live chat support and show you content we think you’ll be interested in. If you’re happy with the use of cookies by markets.com, click accept.