Summary of Nasdaq’s Half-Year Results

The first half of the year was more than good in terms of returns on the capital markets, and for the American technology index Nasdaq, it was the best in the last 40 years.

The S&P 500 and the German DAX achieved returns of around 15 percent, while the Nasdaq is the record holder with returns above 38 percent. That difference was due to the potential that artificial intelligence brought for investors.

The discretionary consumer goods and communication services sector also achieved good results in the first half of the year. On the other hand, sectors with worse returns include energy and utilities, Reuters writes.

Developed markets outperformed emerging markets, which moved lower due to weakness in the Chinese market.

Last year’s loser, the so-called “growth” sector, opened the best returns, while last year’s winner, the energy sector, was one of the sectors with worse returns in the first half of the year. The year’s second half continues in a good direction, with further growth of the main stock market indices.

Markets reacted particularly well to the news about US inflation, which slowed to three percent annually in June. However, the fight against inflation is still ongoing, and there should be new increases in interest rates by the end of the year. The reference interest rate of the European Central Bank (ECB) is currently four percent, and the American central bank Fed is 5.25 percent.

Goldman Sachs hedge funds step up buying of Chinese stocks

Goldman Sachs Group, hedge fund clients, bought Chinese stocks at the quickest pace in nine months on Tuesday, boosted by recently announced government support policies, the Wall Street bank said in a new report.

So-called long buying by hedge funds outstripped their short coverage of Chinese stocks by a ratio of 3.5 to 1. It was led by the acquirement of yuan-denominated A shares in mainland China, followed by Chinese stocks in Hong Kong. Bloomberg.

At a key meeting this week, China’s Communist Party politburo expressed its view that economic growth should be supported, raising expectations that official Beijing will continue to cut interest rates, speed up infrastructure bond issuance, and ease asset policies to boost the economy.