International News and Market Update: Tesla reaches $1 trillion market cap for first time, and more

 International News and Market Update: Tesla reaches $1 trillion market cap for first time, and more

International News and Market Update: Tesla reaches $1 trillion market cap for first time, and more.

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European stocks posted modest gains on Monday as investors continued to keep an eye on corporate earnings, Covid-19 and inflation. The pan-European Stoxx 600 closed 0.2% higher and most major bourses closed in positive territory. Among sectors, auto stocks led the gains with a 2.5% rise. The German Ifo Institute’s business climate index showed that supply chain problems weighed on Europe’s largest economy in October. The Ifo Business Climate Index, released on Monday, fell to 97.7 this month from 98.9 in September, with companies increasingly pessimistic about services, manufacturing and trade.

US stocks rose to record highs on Monday as investors braced for a key week of results from major technology companies. Tesla, which reported record sales and profits last week, surged more than 12%, with its market capitalisation topping $1 trillion, after Morgan Stanley raised its price target on the stock to

$1,200 from $900. Car rental company Hertz also announced it would order 100,000 Tesla vehicles. Energy stocks were a strength for the market on Monday as West Texas Intermediate crude oil futures hit $85 a barrel.

Stocks in the Asia-Pacific region rose this morning after major indices on Wall Street in the US rose to record highs. Shares of electric vehicle battery makers in Asia-Pacific rose after car rental firm Hertz announced it would order 100,000 vehicles from Tesla by the end of 2022. Japan, Panasonic shares rose 4.74%. South Korea’s LG Chem, owner of electric battery maker LG Energy Solution, gained 1.83%.

Tesla reaches $1 trillion market cap for first time

Tesla reached a $1 trillion market capitalisation on Monday after announcing that Hertz has ordered 100,000 vehicles to expand its electric vehicle fleet by the end of 2022. The company joins companies with a market capitalisation of $1 trillion such as Apple, Amazon and Microsoft. News of the deal pushed Tesla shares above $1,045 a share at midday, a new record high, a trading day after the stock topped $900. The stock closed up 12.66% at about $1,024 a share. Strong sales in the EU and optimistic analyst views continued to drive Tesla’s share price higher. The deal with Hertz, which will reportedly bring Tesla $4.2 billion, is the largest electric vehicle purchase ever, Bloomberg previously reported.

Facebook shares rise as investors focus on profit rise

Facebook investors on Monday dismissed the massive document release and instead focused on the company’s third-quarter earnings, which beat analysts’ estimates. The company announced it was adding $50 billion to its share buyback programme, sending the stock up about 2% in extended trading. Earnings were $3.22 versus $3.19 per share expected by analysts, while revenue was $29.01 billion versus $29.57 billion expected by analysts, according to Refinitiv. Facebook will make significant changes next year to focus more on its full-screen video feature Reels, which competes directly with TikTok, CEO Mark Zuckerberg told analysts at the earnings conference.

Mandy Nunes

Mandy Nunes is the Chief Marketing Officer for GV Markets. With 15 years of experience in the Financial Services Industry within the South African market, she has held various responsibilities within the business development, marketing, operations and regulatory space – leading to a very fitting position within the Trading and Investment environment. Mandy has notably been the editor of 'The Ordinary Millionaire', along with having written numerous pieces within the industry at large. Holding both legal and wealth management qualifications, her goal is to bring about massive success for, and within, GV Markets. GV Markets is a South African forex and CFD broker that offers comprehensive trading solutions to both retail and professional traders. GV Markets prides itself in being a well-regulated and reputable STP brokerage that works according to a No-Dealing Desk trading model, offering traders access to some of the best liquidity providers in the country.

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