Markets up as investors seemed confident about China’s efforts to contain the deadly virus

US Markets: Broader indexes in the United States were trading in green, with the S&P 500 index traded 15.11 points or 0.46% higher at 3,335.90, Dow Jones Industrial Average Index expanded by 114.83 points or 0.39% higher and quoting at 29,310.87 and the technology benchmark index Nasdaq Composite traded higher at 9,431.79 and was up by 60.98 points or 0.65% against its previous day close (at the time of writing, before the U.S market close at 10:30 AM ET).

US News: Wall Street opened in the green, majorly backed by strong earnings announcement from a host of companies. Tesla stock went up by 4.8 per cent, taking the company’s valuation above US $100 billion. Apple shares inched up by 0.7 per cent, after various news sources reported that the company will begin manufacturing its new smartphone in the month of February. Capital one was up by 2.4 per cent and was trading at a 12 month high price. Netflix stocks were up by 0.5 per cent, after its earnings were reported way above the previously anticipated figures of the market analysts. Boeing was down by 1.2 per cent, primarily because there were no expectations for the FAA to clear the 737 MAX for flying again until the middle of the year. IBM stocks were up by 3.8 per cent after reporting the first quarterly rise in revenue in the last five years.

S&P 500 (SPX)

Top Performers*: Eaton Corporation Plc, International Business Machines Corp, and Capital One Financial Corp are top gainers and increased by 3.85%, 3.56% and 2.97% respectively.

Worst Performers*: Zions Bancorporation NA, Arconic Inc, and Netflix Inc are the top three laggards and decreased by 3.75%, 3.67% and 3.47% respectively.

NASDAQ Composite (IXIC)

Top Performers*: Neurotrope Inc, Genprex Inc, and Vaxart Inc are top gainers and increased by 112.41%, 52.17% and 32.08% respectively.

Worst Performers*: FuelCell Energy Inc, Novavax Inc, and Titan Pharmaceuticals Inc are the top three laggards and decreased by 25.00%, 17.41% and 9.95% respectively.

Top Performing Sectors*: Technology (up 0.58%), Industrials (up 0.46%), and Healthcare (up 0.39%).

Worst Performing Sectors*: Telecommunication Services (down 0.00%), and Energy (down 0.53%).

Dow Jones Industrial Average (DJI)

Top Performers*: International Business Machines Corp, McDonald’s Corp, and Cisco Systems Inc are top gainers and increased by 3.43%, 1.08% and 0.98% respectively.

Worst Performers*: Johnson & Johnson, Boeing Co, and Dow Inc are the top three laggards and decreased by 1.40%, 0.68% and 0.34% respectively.

European Markets: The London’s broader equity benchmark index FTSE 100 traded at 38.78 points or 0.51% lower at 7,571.92, the FTSE 250 index snapped 17.57 points or 0.08% higher at 21,762.98, and the FTSE All-Share Index ended 16.42 points or 0.39% lower at 4,206.93 respectively. Another European equity benchmark index STOXX 600 ended at 423.04, down by 0.34 points or 0.08 per cent.

European News: In economic news, the Confederation of British Industry’s quarterly gauge of manufacturing optimism which released its data for past three months to January 2020 has shown that the optimism among British Factories is the highest during the three months period in nearly six years. The Gauge which rose to +23 in the month of January 2020 from a low of -44 in the month of the October 2019 is the highest level it has reached since April of 2014. This data release is among a host of other leading economic indicators that have started to trend in the positive zone in the past one month. The Bank of England which had in the beginning of the month stated that it could be forced to bring in another rate cut now has a strong case building against such a move. The Central bank is set to announce its decision on the rates on 30 January 2020. United Kingdom’s largest car maker Jaguar Land Rover has announced that it may cut as many as 500 jobs at its Halewood facility on account of a cost saving measures being initiated by the company. Commenting on the job cuts, the company stated that the cut is a measure to improve efficiency and production volumes of the company will not suffer.

London Stock Exchange (LSE)

Companies in the Top Gainers*: REACH PLC (RCH), PETRA DIAMONDS LD (PDL) and AO WORLD PLC (AO.) zoomed up by 10.90%, 10.40% and 8.19% respectively.

Companies in the Top Laggards*: INTU PROPERTIES PLC (INTU), ENQUEST PLC (ENQ) and TULLOW OIL PLC (TLW) were in the red zone and declined by 7.05%, 7.02% and 6.79% respectively.

FTSE 100 Index

FTSE-100 index performance – January 22nd, 2020 (Source: Thomson Reuters)

Companies in the FTSE 100 Top Gainers*: BERKELEY GROUP HOLDINGS (THE) PLC (BKG), SAGE GROUP PLC (SGE), and LONDON STOCK EXCHANGE GROUP PLC (LSE) accelerated by 5.13%, 4.17% and 2.83% respectively.

Companies in the FTSE 100 Top Laggards*: TUI AG (TUI), ANTOFAGASTA PLC (ANTO), BURBERRY GROUP PLC (BRBY), and decelerated by 4.24%, 4.04% and 4.02% respectively.

Companies in the FTSE 100 Volume Traction*: LLOYDS GRP. (LLOY), BARCLAYS (BARC), and VODAFONE GRP. (VOD).

Sectors in the positive zone*: Technology (up 1.74%), Utilities (up 0.49%), and Industrials (up 0.23%).

Sectors in the negative zone*: Telecommunications Services (down 1.11%), Energy (down 0.81%), Consumer Non-Cyclicals (down 0.79%).

Foreign Exchange Rate Quotation*: GBP/USD and EUR/GBP currency pairs traded at 1.3133 and 0.8446, respectively.

U.S. and U.K. 10-Year Bond Yields*: U.S. 10-Year Treasuries yield were quoting at 1.771%, and the U.K. 10-Year Government Bond yield was trading at 0.633%, respectively.

*At the time of writing the report

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