Virgin Galactic Slumps 14% On Share Sale Plan After Being Up 10% Premarket
Virgin Galactic (NYSE:SPCE) stock slumped over 14% in Monday’s trading as the company’s plans for a $500 million sale of new shares spooked traders.
The shares were up 10% premarket but gave up all those gains as the company looks to cash in on the successful launch Sunday of its first-ever full crew spaceflight that also included its founder Richard Branson.
Although the V.S.S. Unity had made space trips earlier as well, this was its first flight with six passengers, including Branson, ahead of a planned commercial launch next year. Two more test flights have to happen before that. This was the fourth so far.
According to The Wall Street Journal, the company has collected $80 million in deposits from sale of tickets for a space ride. Each ticket is going for anywhere between $200,000 and $250,000, according to various reports.
The dollar was down on Tuesday morning in Asia as investors await U.S. inflation data for clues about the likely timeline for asset tapering and interest rate hikes. They also digested better-than-expected Chinese trade data.
The U.S. Dollar Index that tracks the greenback against a basket of other currencies inched down 0.03% to 92.227 by 1:42 AM ET (5:42 AM GMT).
The USD/JPY pair inched up 0.07% to 110.43.
The AUD/USD pair was up 0.23% to 0.7492 and the NZD/USD pair edged up 0.17% to 0.6991.
The USD/CNY pair edged down 0.13% to 6.4668. Chinese trade data released earlier in the day said that exports rose 32.2% year-on-year, imports grew 36.7% year-on-year and the trade balance stood at $51.53 billion in June.
The GBP/USD pair inched up 0.06% to 1.3888, with almost all the remaining COVID-19 restrictions in England due to be released on Jul. 19 despite a climbing number of cases.
China data, tech drive Asian shares higher
Asian shares headed for their best session in more than a fortnight on Tuesday after better than expected Chinese economic data and a rebound in China tech shares extended after Tencent secured regulatory approval for a major deal. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 1%, its best daily gain since late June, led by a 1.6% rise in Hong Kong where tech stocks rose broadly. Japan’s Nikkei was up 0.5% while Australian shares were down 0.02%.
In early European trade, pan-region Euro Stoxx 50 futures were up 0.02%, while German DAX futures and FTSE futures fell 0.16% and 0.04%, respectively. U.S. stock futures, the S&P 500 e-minis, were down 0.11%.
Investors are bracing for an eventful week including the start of the U.S. earnings season, inflation data from several countries and a testimony by Federal Reserve Chair Jerome Powell. The testimony will be scrutinised for any clues on the timing of potential U.S. tapering.
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