In our weekly Market Monday insights, Prosperity Investment Management examines the latest developments across the globe's biggest financial markets - providing you with all the latest information you need to know.
An 8% slump in the share price of online retail giant Amazon has sparked a degree of caution in the consumer discretionary sector, as the online marketplace missed its quarterly sales estimate for the first time since 2018.
The drop comes as economies gradually reopen around the world and stay-at-home orders surrounding the coronavirus pandemic are lifted, during which Amazon saw a 220% increase in its profits as physical shops and locations closed throughout 2020.
Shares in several of the globe’s big technology companies, such as Facebook & Google owners Alphabet, also dropped with Wall Street ending the week lower as a result - as the Dow Jones, NASDAQ and S&P 500 all recorded losses.
Elsewhere, the Eurozone economy bounced back from recession in the second quarter, growing by a faster-than-expected 2% relative to the first three months of 2021. It’s year-on-year growth of 13.7% also exceeded estimates as output expanded in Germany, France, Italy, and Spain - although the uptick in Germany fell below forecasts because of supply bottlenecks that hindered its manufacturing sector.
Finally, Japan’s major stock benchmarks faced difficulty as coronavirus cases in the country reached a record level of 10,000 - leading the government to extend a state of emergency to combat the spread of the virus by a further 10 days and expand its enforcement area. The 2020 Tokyo Olympics are currently being held with strict measures in place.