Stock markets in Europe have jumped this morning as the World Health Organisation (WHO) said the coronavirus situation is not a ‘global emergency’ yet. The situation is getting worse in China as the number of confirmed infections and deaths has increased, but the fact the international health body said it is not yet a worldwide emergency, has lifted market confidence. Stocks declined recently for fear the situation would turn into a global crisis, but the update from the WHO has acted as a green light to the bulls.
Marston’s shares are in the red this morning even though the company posted a 4.5% increase in like-for-like revenue in the two-week Christmas period. The pub group claimed that business has picked up since the general election, which could be a sign that customers are feeling more confident about spending seeing as a Corbyn led government has been avoided. The group is undergoing a restructuring scheme whereby it is disposing of assets, and the debt reduction plan is going well seeing as its goal should be achieved ahead of the 2023 target. The national minimum wage will be increased by 6.2% in April, and Marston’s warned that will push up second-half costs by £2-£3 million. It would appear the comment regarding expenses weighed on the stock.
Just Eat (LON:JE) Group shares are a little lower his morning after the Competition and Markets Authority launched a last minute investigation into the group’s planned merger with Takeway.com. It seems odd the regulator is piping up just as the deal is about to be finalised. One would imagine that any major concerns the CMA had about the proposed deal would have been flagged up months ago.
Jim Pettigrew, the Chairman of Virgin Money (LON:VM), will retire in September 2021. Mr Pettigrew was the chairman of CYBG before the group acquired Virgin Money in 2018. The outlook for the banking sector isn’t great seeing as net interest margin rates are under press from the low interest rate environment.
GBP/USD saw a jump in volatility on the back of the latest UK flash manufacturing and services data being released. The economic situation is improving but the pound is still lower post the update. The manufacturing reading improved to 49.8 from 47.5, and it topped the 48.9 forecast. The services reading was 52.9, and the consensus estimate was 51. Keep in mind the prior reading was 50.0.
EUR/USD is in the red on the back of the firmer US dollar. The PMI reports from the eurozone were largely positive but the dollar’s move took precedence. The closely watched German flash manufacturing report came in at 45.2, and that was an increase from the 43.7 posted in December. The services reading was 54.2 – a respectable level, and a nice jump on the last update of 52.9.
Intel (NASDAQ:INTC) shares will be in play today as the company posted impressive fourth-quarter figures last night. EPS were $1.52, topping the $1.25 forecast, and revenue increased by 8% to $20.21 billion, and the consensus estimate was $19.23 billion. The data centre group unit had a strong performance as revenue jumped by 19% to $.7.21 billion, comfortably topping forecasts. The stock could open at levels last seen in the dotcom era.
We are expecting the Dow Jones to open 165 points higher at 29,325 and we are calling the S&P 500 up 9 points at 3,334.
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