Yesterday, the Nasdaq 100 rebounded vigorously by 2.89%, led by its heavyweights, particularly Apple and Tesla, which gained more than 5%. In fact, it was the entire stock price that rose, as all sectors closed in the green, both cyclicals and defensive and discounted. It seems that this is due to the easing of bond rates. But in terms of easing, not much has happened, since US 10-year government bond rates have hardly fallen at all.

Above all, we can see that investors are far from being satisfied with equities, and that the indicators are pointing in their direction. Yesterday, manufacturing statistics showed everywhere their strength in Western economies. New vaccines are arriving and the Democrats are moving the legislative process forward on their massive support plan. The central challenge remains that of accelerating growth impressive enough to drag all economic compartments in its wake, especially those that have suffered the most, some of which are still at a standstill.

In this context, Investors focus on the speeches of central bank officials for clues on how monetary policy may evolve, to determine how appealing government bonds are. ECB head Christine Lagarde said yesterday that the central bank would do everything in its power to prevent a premature increase in the financing costs of companies and households. "The ECB will help ensure that businesses and families can access the financing they need to weather this storm, and that they can do so with confidence that financing conditions will not be tightened prematurely". 

Meanwhile, the Chinese government is considering limiting its exports of rare earths to the United States. The dependence of the United States on China is increasing. The country provides nearly 80% of the world's supply of rare earths with minerals such as scandium, yttrium or neodymium used in the manufacture of military equipment, including F-35 fighter jets, tanks, high-precision missiles and drones. The Chinese government is considering limiting the export of its precious resources. But by penalizing the United States too heavily, Beijing risks facing an acceleration of domestic production and the emergence of new American competitors. Three North American companies have just announced the implementation of a supply chain to reduce this Chinese dependence: Neo Performance Materials, Energy Fuels and Chemours.