London, Thursday, 27 January 2022
US Markets summary
On Thursday, US equities gave up gains and turned negative as traders weighed better-than-expected economic data against the potential of rate hikes while keeping an eye on corporate results.
The US economy grew at a faster-than-estimated 6.9% in Q4, and the Federal Reserve indicated yesterday that it may tighten monetary policy sooner than expected, with some market investors now expecting five rate hikes this year.
The Dow Jones Industrial Average was little changed after advancing more than 600 points, the S&P 500 slid 0.5 percent, and the tech-heavy Nasdaq Composite fell 1.4 percent after reaching session highs more than 1.6 percent higher.
On the business front, Tesla fell nearly 10% after the automaker warned that supply chain concerns could last until 2022, while Intel fell 7% due to a poor first-quarter outlook. McDonald's results also fell short of expectations, and the company's stock fell 0.4 percent.
Meanwhile, word that Pershing's Bill Ackman had purchased 3.1 million shares in Netflix sent the stock up 8%.
European Markets summary
Europe's stock markets ended the day higher, with Frankfurt's DAX 30 up 0.2 percent and other major bourses up 0.4 percent to 1.1 percent, primarily on the strength of a positive results season.
After reporting better-than-expected earnings and announcing plans to double its investments this year, Deutsche Bank rose more than 4%, defying expectations for a loss in the fourth quarter.
Meanwhile, French-Italian chipmaker STMicroelectronics rose 2% after reporting better-than-expected earnings and announcing plans to double its investments this year.
SAP, on the other hand, slumped 6.7 percent after announcing that it had agreed to buy a majority position in privately owned US fintech firm Taulia.
UniCredit has reached an agreement with unions for 1,200 voluntary job cutbacks, which will be partially offset by 725 new hiring. Investors also analysed US Federal Reserve chairman Powell's speech, which hinted that policy tightening will continue this year to combat inflation.
U.S. Stock Market Indexes
S&P 500: -23.43 (-0.54%) to 4,326.50
Nasdaq: -189.34 (-1.40%) to 13,352.78
Dow Jones: -7.31 (-0.02%) to 34,160.78
European Stock Market Indexes
STOXX Europe 600: +3.02 (0.65%) at 470.33 as at Jan 27, 5:50 PM GMT+1
FTSE 100 in London: +84.53 (1.13%) at 7,554.31 as at Jan 27, 4:35 PM GMT
DAX 30 in Germany: +64.88 (0.42%) at 15,524.27 as at Jan 27, 5:55 PM GMT+1
CAC 40 in France: +41.84 (0.60%) at 7,023.80 as at Jan 27, 6:05 PM GMT+1
FTSE MIB 30 in Italy: +263.22 (0.99%) at 26,882.47 as at Jan 27, 5:35 PM GMT+1
IBEX 35 in Spain: +85.80 (1.00%) at 8,706.00 as at Jan 27, 5:38 PM GMT+1
Ten-year U.S. Treasury note: -4.1 bps to yield 1.8070%
Dollar index: +1.30 or 1.35% at 97.24 as at Jan 27, 2022 4:13 p.m. EST
VIX volatility index: −1.37 (4.29%) at 30.59 Jan 27, 3:09 PM CST
Brent crude: +0.41 or 0.47% at $88.56 as at Jan 27, 2022 at 9:17 p.m. GMT
West Texas Intermediate: -0.30 or -0.34% at $ 87.04 as at Jan 27, 2022 at 4:18 p.m. EST
Gold: -25.76 or -1.41% at $ 1,796.33 an ounce
Silver: -0.85 or -3.60% at $ 22.74 an ounce
Bitcoin: −1,170.80 (3.18%) at $35,669.80 as at Jan 27, 9:29 PM UTC
Ethereum: −140.00 (5.68%) at $ 2,324.98 as at Jan 27, 9:29 PM UTC
(Written and edited by: The Decision Maker)