It can be assumed that the market players’ sentiments are getting weighed by the worries about the global downturn risks. However, Dow Jones Industrial Average closed in green on 23 January 2019 (thanks to the positive impact of the earnings) while it was in red yesterday. However, the FTSE 100 Index closed lower on January 23, 2019 and the sectors which impacted the broader index were materials, energy as well as industrials. However, it seems like the investors in the European markets are waiting for the conference which would be addressed by Mario Draghi.
On 24 January 2019, FTSE 100 was again in red and closed at 6,818.95 (down 23.93 points or 0.35%). However, STOXX 600 was trading in green during the day and slightly up by 0.39%. At the time of writing, GBP/US was trading at 1.31, up slightly and EU/GBP currency pair was trading at 0.86, slightly down.
While the global markets are still fearing the risks of the downturn, it seems like the focus of the investors in the US markets would largely be towards the earnings season. Moreover, the oil prices would be sensitive to the news about the global economy and the downturn in the financial markets that could trigger the downward momentum in the oil prices as well. This happens because an unfavourable momentum in the financial markets increases the worries about the oil demand.
Meanwhile, JP Morgan announced its business expansion in Mexico. On the other hand, after a steep plunge of 38 percent in the stock price of London Stock Exchange listed Metro Bank PLC (MTRO.L) as noted on January 23, 2019 on rising concern over its internal risk management system, the stock returned to the green zone and was up by 10.11 percent on January 24, 2019. Bank has reported year on year growth of 48 percent in its loan book and a growth of 34 percent in bank’s deposits for 2018, on YoY basis. For full-year, EPS stood at 40 pence compared to 19 pence a year before, and company’s earnings improved by 111% on YoY basis. The performance in terms of profit was found to turn bleak coming towards the last quarter of the year.
According to the Energy Information Administration (EIA) report released lately, US Crude Oil inventory jumped by about 8m barrel last week. At the time of writing, Brent Crude was trading at USD 61.36/barrel, and WTI Crude was trading at USD 53.27/barrel, both up by 0.33% and 1.27% respectively.
On LSE, stocks like CENTRICA (CNA.L), ST. James’s Place Plc (STJ.L), and EVRAZ (EVR.L) were among the top gainers on FTSE 100 index and were up by 2.5%, 2.19%, and 1.78% respectively. Top laggards on FTSE 100 index were Vodafone Group Plc (VOD.L), Reckitt Benckiser Group Plc (RB.L), and British American Tobacco Plc (BATS.L) and were down by 3.5%, 3.1%, and 2.30% respectively.
Sectors which were trading in green on FTSE 100 index during the day were Utilities, Energy, Consumer Cyclicals and Basic Metals and laggards included Telecommunication, Healthcare, and Consumer Non-cyclical.
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