Yazar: Geoffrey Smith
Investing.com – The developments regarding the outbreak are getting worse, with President Joe Biden warning that there will be another 100,000 deaths in the next month, as Tokyo may cancel the rescheduled summer Olympics. PMIs in Europe also fell and the budget deficit increased. Stock markets will open low. Doubts about Intel (NASDAQ 🙂 and IBM (NYSE 🙂 do not help.
Here’s what you need to know in financial markets on Friday, January 22nd.
1. Epidemic news is getting worse
Pandemic developments are getting worse in most of the world. President Joe Biden said that the number of people who died from Covid-19 in the USA in the next month could exceed 500,000, while in Germany this number exceeded 50,000.
British Prime Minister Boris Johnson said the current quarantine could last until summer, and the Japanese government had to reject reports that it would have to cancel the already scheduled Olympic Games last year.
All this put pressure on global markets, lowering its index by 1.2% and 0.4%. Chinese indices have also lost ground. The dollar soared as risk appetite waned. He suffered another 10% loss.
2. Intel, IBM reports raise questions
Intel stocks will lose returns on Thursday following an unauthorized early report of its quarterly report.
Sales and profit exceeded expectations, but the market responded negatively to plans to make more licensing deals with competitors such as Samsung (KS 🙂 and Taiwan Semiconductor Manufacturing.
IBM stocks are also preparing for a rough journey after delaying the timeline once again for a permanent return to revenue growth. The company’s acquisition of Red Hat resolved the problem in the short term last year, but fourth-quarter revenue again missed the estimates and shows it is still drifting.
3. Stock markets will open low
US stock markets will open low with a combination of epidemic news and pessimistic news from technology.
It fell 275 points, down 0.8% and the Nasdaq lost 0.6%.
Today’s earnings report is relatively calm. The only notable name is the oilfield services group Schlumberger (NYSE :). On the data front, there will be current home sales data for December, overcoming the extraordinarily strong data we saw on Thursday for both home starts and building permits. Timber futures, which have been under pressure recently, rose 6.9% on these developments.
4.European PMI data dropped, UK economy struggling
The euro zone economy went deeper in the shrinkage zone at the beginning of the new year, according to the buying managers index published by IHSMarkit.
Eurozone composite PMI data fell from 49.1 to 47.5, on the basis of increasingly tightened restrictions on economic activity with the discovery of a new version of the virus and social life.
UK retail sales for December were also below expectations and November figures were also revised lower. With the epidemic increasing public spending, the UK government set a new record in debt in December.
5. Oil on the decline over Covid concerns; EIA and Baker Hughes data on the way
Crude oil prices also fell due to the same epidemic concerns.
It was down 2.5% to $ 51.83 and fell 2.3% to $ 54.84.
The US government will share its weekly oil stocks forecast with a two-day delay than usual due to the holiday Monday and the swearing-in ceremony on Wednesday.
The week will close with CFTC data on Baker Hughes’ drilling report and net speculative positioning.