Stocks Soar As Health Fears Fade Post WHO Update

Stocks Soar As Health Fears Fade Post WHO Update

CMC Markets  | Jan 24, 2020 10:59

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 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.

"DISCLAIMER: CMC Markets is an execution only provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed.

No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. "

Original Post

CMC Markets

Related Articles

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Write a reply...
Please wait a minute before you try to comment again.

Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

English (USA) English (India) English (Canada) English (Australia) English (South Africa) English (Philippines) English (Nigeria) Deutsch Español (España) Español (México) Français Italiano Nederlands Polski Português (Portugal) Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 中文 香港 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
Saving Changes


Download the App

More markets insights, more alerts, more ways to customize assets watchlists only on the App

Download the App

More markets insights, more alerts, more ways to customize assets watchlists only on the App