Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Breaking News

Oil Nears 3-Year High on Bets Over Tight Winter Supply

Europe's Delta Woes, Didi IPO, Binance - What's Moving Markets

EconomyJun 28, 2021 05:39AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters

By Peter Nurse

Investing.com --The delta variant of the coronavirus looks set to disrupt the European holiday season. Didi is set to close its IPO books, France's President Macron receives a setback in regional elections, while the U.K. becomes the latest big country to ban crypto-exchange Binance. Here's what's moving markets on Monday, June 28th.

1. Europe faces Covid delta variant pain

The race is on to save the European holiday season, as the highly contagious delta strain of the Covid-19 virus threatens to result in more travel restrictions just as the summer starts.

The number of delta variant Covid cases in the U.K. climbed to over 35,000 last week, a 46% increase from the previous week, the reason why the U.K. government chose to delay the country’s complete reopening for a month. 

An EU summit failed at the end of last week to agree a common line on quarantine requirements for travelers from the U.K., with countries who are dependent on tourism income resisting pressure from Germany's Angela Merkel for an EU-wide quarantine requirement on British arrivals.

Europe's vaccine rollout has improved after a slow start, but still only about 30% of people are fully inoculated, far below the U.K.’s levels. More travel curbs look likely.

Elsewhere, South Africa raised its alert status and Sydney announced a two-week lockdown to deal with outbreaks of the delta variant, which was first identified in India.

2. Stocks seen flat; Infrastructure deal more likely

U.S. stocks are seen opening largely unchanged Monday, remaining near record levels as investors digest a potential new infrastructure deal.

By 5:30 AM ET (0930 GMT), Dow Jones futures were down 15 points, less than 0.1%, S&P 500 futures were 0.1% higher and Nasdaq 100 futures climbed 0.2%.

The S&P 500 ended Friday up 0.3% at a closing record high, while the Dow Jones Industrial Average gained more than 200 points, or 0.7%, to sit less than 2% from its record. The Nasdaq Composite closed marginally lower, but it still added over 2% last week.

The $1.2 billion bipartisan infrastructure deal announced at the end of last week now looks more likely to succeed after President Joe Biden withdrew his threat to veto the measure unless a separate Democratic spending plan also passes Congress.

3. Didi to close IPO order books

Didi Chuxing, China’s biggest ride-hailing firm, is likely to close the books for its U.S. initial public offering later Monday, in one of the biggest floats of the past decade.

Didi set a price range of $13 to $14 per American Depositary Share, a regulatory filing showed on Thursday, and said it would offer 288 million such shares in the IPO. At the top of the range, the deal will raise just over $4 billion, and Didi would be worth around $67 billion.

The deal has reportedly seen strong demand: banks are closing the books a day earlier than previously flagged. Didi has diversified its business to offset slowing ride-hailing growth, with its food delivery service serving it well during the coronavirus pandemic. Didi actually delivered an $837 million profit in the March quarter, something that rival Uber (NYSE:UBER) is still to emulate. 

However, Didi is going public at an uncertain time for regulatory supervision, with Beijing seemingly keen to crack down on the country’s internet giants.

In May, China’s antitrust watchdog ordered Didi, among others, to start treating both its drivers and customers more fairly, or, in other words, in a less profitable manner. Additionally, Didi, in a filing, warned investors that it could not guarantee that government officials would be satisfied with its moves to comply.

4. Binance not welcome in U.K.

Binance, one of the world’s largest cryptocurrency exchanges, was ordered to cease all regulated activities in the U.K. following a review of its operations by the Financial Conduct Authority, in a fresh setback to those hoping crypto can become part of the mainstream global financial sector.

The FCA didn’t provide an explanation for its decision, but it has required all firms offering cryptocurrency-related services to register since January and show they comply with anti-money laundering rules.

The U.K. is not alone in having concerns about the exchange, with the equivalent agencies in both Japan and Germany having warned investors in recent times about Binance potentially breaking securities rules.

Even so, digital assets are on the rise Monday, with Bitcoin, the largest cryptocurrency by market capitalization, up 6% at $34,664.

Ricardo Salinas Pliego, one of Mexico’s richest men, revealed plans over the weekend to open the first bitcoin-accepting bank in the country, criticizing the debasement of fiat currencies.

 5. Macron suffers polls woe

French President Emmanuel Macron received a bloody nose in Sunday’s regional elections, with his centrist party estimated to have won only around 10% of the votes.

However, yields on French bonds fell due to the failure of Marine Le Pen’s far-right National Rally to take advantage. She ran against Macron in the presidential election of 2017, when advocating taking France out of the European Union. 

Early results indicated that the main winners were various center-right parties, including the main opposition Les Républicains, who were supported by 29.3% of voters. 

Separately. China’s Envision Group is set to spend as much as 2 billion euros ($2.4 billion) on a battery plant in northern France to power an affordable range of Renault (PA:RENA) electric vehicles.

Macron is scheduled to unveil the agreement later Monday at Renault’s assembly plant in Douai.

 

Europe's Delta Woes, Didi IPO, Binance - What's Moving Markets
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (6)
NUNO LOUREIRO
NUNO LOUREIRO Jun 28, 2021 7:23AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Delta variant, lockdown, OK no problem, let's go for another ATH on the stock market
Fred Diebold
Fred Diebold Jun 28, 2021 7:22AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Hows that China virus effecting you today?
Michael May
Michael May Jun 28, 2021 6:44AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Variants lol. Really who is still believing all thisnonsense?
Amie Inconnue
Amie Inconnue Jun 28, 2021 6:44AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Everyone who has friends or relatives in affected countries. And the majority of medical doctors anywhere. It's not a matter of believe or not, it's a matter of knowing.
sam jo
sam jo Jun 28, 2021 6:44AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
those that didn't believe, most probably dead or suffering
Dave Jones
Dave Jones Jun 28, 2021 6:28AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
amazingly disjointed. lockdownns. fear. panic. economy halted....record highs!
Joseph Desouza
Joseph Desouza Jun 28, 2021 6:23AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
when will it be normal?
Daniel Hall
Daniel Hall Jun 28, 2021 6:23AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
what makes you think this isn't normal?
Dieter Kaufmann
Dieter Kaufmann Jun 28, 2021 6:23AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Never again because all you children born 1960 or so onward simply are clueless
Vishal Dhanavani
Vishal Dhanavani Jun 28, 2021 6:23AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
It will probably not be normal for many more years. But when majority population get vaccinated, countries will slowly open up. Covid19 will most likely become a part of life, just like the flu virus. Over many more years, scientists will keep working on the vaccines / treatments and covid19 will be more manageable but it won't go away completely because many people won't be able to or simply won't take vaccine.
Joseph Desouza
Joseph Desouza Jun 28, 2021 6:22AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
when will it be normal
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email