At Global front, US market opened on Monday with market participants taking a wait and watch stance post an earnings-heavy week witnessed along with strong growth in US jobs data. Alphabet, Google’s parent company was expected to announce its results after the closing bell on February 04, 2019. The tech giant later revealed for heavy investments that slightly masked profit numbers.
Meanwhile, Electric car maker Tesla Inc (TSLA.O) announced that they are buying Maxwell Technologies Inc (MXWL.O), and the deal is going to cost $218 million to the company. The transaction will be an all-stock deal that will help Tesla to strengthen their battery technology.
The blue-blood advisory, Rothschild & Co is all set to launch an investment advisory services to cater to corporate clients. Robert Leitao, the managing partner at Rothschild & Co, said, “there is an increase in activism, so you need to be able to deal with activists.”
Coming back to European Market, the UK’s broader equities index FTSE 100 index closed the Monday’s session at 7034.13, marginally up by 0.20%; and on the other hand, European equities benchmark STOXX closed the session at 359.26, marginally down by 0.12%.
Brexit News: More than 100 CFOs at the UK companies felt that disorderly Brexit is the biggest risk to their businesses, and most of them predicted that corporate environment is going to worsen post-Britain leaves the EU, according to the latest survey data.
On 3rd Feb, Japanese car maker Nissan Motors (7201.T) indicated that the company aims to manufacture its new X-Trail SUV in Japan instead of Britain. Earlier in 2016, the company announced that it would manufacture its new X-Trail SUV series at its Sunderland plant, which is situated in the UK. The British government described this move as “a hurricane” for the automotive sector but assured no current jobs would be at risk because of this move.
The risk of no-deal Brexit is felt deeply and widely among the automotive sector, and a number of car makers including Honda, Toyota, BMW, Jaguar Land Rover, Vauxhall, and Nissan have exhibited fears of disruption to their supply chain or disruption in their just-in-time supply chain model in the event of no-deal Brexit.
In Forex market, at the time of writing, currency pair GBP/USD was trading at 1.30, up marginally and EUR/GBP was trading at 0.88. Brexit uncertainties and unfavourable corporate announcements have been pulling the sterling down against some of its global peers.
In commodity market, international crude benchmarks, Brent Crude Oil and WTI Crude oil were trading lower on Monday from their previous closes. Brent Crude was trading at $62.20/barrel, and WTI Crude was trading at $54.14/barrel. Both the benchmarks were edging up on February 05, 2019.
On Monday, At LSE stocks like Rentokil Initial Plc (RTO.L), Sage Group Plc (SGE.L) and Tui AG (TUI.L) were among the top performers on the broader index FTSE 100 and up by 2.7%, 2.55% and 2.5%, respectively; and on the other side, stocks like Smurfit Kappa Group Plc (SKG.L), Imperial Brands Plc (IMB.L) and Glencore Plc (GLEN.L) were the laggards on the broader index FTSE 100 and down by 2.35%, 2.1%, and 1.45%, respectively.
On sector specific side, Technology, Energy and Consumer Cyclicals were among the performers on the broader index FTSE 100.