US Markets: Global equity benchmark indices of the United States opened up with a new high on Thursday as investors sentiment uplifted by better than anticipated earnings from Morgan Stanley. With the Down Jones leapt up 0.57% to a record high of 29,194.97, the S&P 500 index jumped 0.55% to a new record high of 3,307.5 and the technology stocks dominated Nasdaq Composite surged 0.63% to a fresh record of 9,316.85, respectively (at the time of writing, before the US market close at ET 1:25 PM).
US News: On 16th January 2020, Wall Street opened in the green, as investors were still reeling in the impact of the trade truce between US and China, which gave confidence to businesses and investors alike. American Outdoor Brands stocks fell 1.3 per cent following an announcement regarding the sacking of its CEO James Debney. Beyond Meat stocks were up by 2.9 per cent, after a couple of poor days, following being downgraded by various analysts. Bank of Ney York Mellon’s revenue and underlying earnings plunged in the fourth quarter, after which its stock was down by 5.4 per cent. Tesla’s sales in California nearly halved, as compared to the final quarter in 2018, post which its stock was down by 3.9 per cent. Morgan Stanley reported a 53 per cent increase in the net profit for Q4 2019, and its shares responded by rising 1.8 per cent.
S&P 500 (SPX)
Top Performers*: Morgan Stanley, IPG Photonics Corp, and Centurylink Inc were in bright spot and zoomed up by 6.93%, 2.91% and 2.87% respectively.
Poor Performers*: Bank of New York Mellon Corp, PPG Industries Inc, and Tyson Foods Inc traded in red zone and beaten down by 7.32%, 3.40% and 1.80% respectively.
NASDAQ Composite (IXIC)
Elite Performers*: Noon Therapeutics Inc, Cemtrex Inc, and Aethlon Medical Inc were hovering in positive zone and expanded by 47.97%, 46.70% and 40% respectively.
Worst Performers*: Opera Ltd, Heat Biologics Inc, and SUNDANCE ENERGY INC (US) were among the beaten down stocks and plunged by 13.86%, 13.66% and 13.07% respectively.
Top Performing Sectors*: Energy (up 1.39%), Industrials (up 0.92%) and Financials (up 0.73%).
Worst Performing Sectors*: basic Materials (down 0.12%).
Dow Jones Industrial Average (DJI)
Top Performers*: Home Depot Inc, Apple Inc, and Cisco System Inc were in the bright spot and increased by 1.30%, 1.06% and 0.96% respectively.
Worst Performers*: Pfizer Inc, Walgreens Boots Alliance Inc, and Procter & Gamble Co were among the beaten down stocks and decreased by 0.34%, 0.11% and 0.02% respectively.
European Markets: The London’s broader equity benchmark index FTSE 100 traded at 32.99 points or 0.43% lower at 7,609.81, the FTSE 250 index snapped 8.12 points or 0.04% higher at 21,721.23, and the FTSE All-Share Index ended 14.80 points or 0.35% lower at 4,222.79 respectively. Another European equity benchmark index STOXX 600 ended at 420.54, up by 0.91 points or 0.22 per cent.
European News: In economic news, the Bank of England on Thursday, 16 January 2020, stated that it expects the demand for credit card borrowing to increase among the British citizens in the next three months. The bank said that its Gauge of demand for credit card borrowings for the next quarter rose to 14.3. The BoE survey however, also envisaged that the demand for borrowings by business will fall during the period. The survey was conducted by the bank between 25 November 2019 and 20 December 2019 encompassing the general election date of 12 December 2019. In business news, Greggs Plc and Just Eat Plc have announced an alliance whereby the latter will be the exclusive distributors for Greggs food products.
London Stock Exchange (LSE)
Leading Companies of the Day*: HENDERSON ALTERNATIVE STRAT.TST PLC (HAST), TULLOW OIL PLC (TLW) and MCCOLL'S RETAIL GROUP PLC (MCLS) zoomed up by 9.93%, 9.74% and 9.45% respectively.
Companies which showed poor performance*: BROWN(N.) GROUP PLC (BWNG), PEARSON PLC (PSON) and SPIRENT COMMUNICATIONS PLC (SPT) were in red zone and declined by 23.82%, 8.09% and 8.06% respectively.
FTSE 100 Index
FTSE-100 index performance – 16 January 2020 (Source: Thomson Reuters)
Leading Companies of the Day*: NMC HEALTH PLC (NMC), ASSOCIATED BRITISH FOODS PLC (ABF), and PERSIMMON PLC (PSN) accelerated by 4.01%, 3.17% and 1.89% respectively.
Worst Companies of the Day*: PEARSON PLC (PSON), WHITBREAD PLC (WTB), and MELROSE INDUSTRIES PLC (MRO) decelerated by 8.51%, 5.33% and 2.79% respectively.
Volume Traction*: LLOYDS BANKING GROUP PLC (LLOY), BARCLAYS PLC (BARC), and BP PLC (BP).
Sectors in positive zone*: Utilities (up 0.34%), Energy (up 0.31%), and Basic Materials (up 0.20%).
Sectors in negative zone*: Healthcare (down 1.25%), Consumer Cyclicals (down 0.85%), and Industrials (down 0.68%).
Foreign Exchange Rate Quotation*: GBP/USD and EUR/GBP currency pairs traded at 1.3066 and 0.8520, respectively.
US and UK 10-Year Bond Yields*: U.S 10-Year Treasuries yield was quoting at 1.813%, and the UK 10-Year Government Bond yield was trading at 0.641%, respectively.
*At the time of writing the report
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