Why US and European Markets Are Fluctuating In Wednesday’s Trading Session?

US Markets: Broader indexes at the Wall Street were trading in green territory, with the S&P 500 index traded 5.96 points up or 0.18% higher at 3,289.11, Dow Jones Industrial Average Index leapt up by 56.08 points or 0.19% higher at 28,995.75 and the technology benchmark index Nasdaq Composite traded at 9,271.82 and zoomed up by 20.49 points or 0.22% higher versus previous day closing price level (at the time of writing, before the U.S market close at ET 9:45 AM).

US News: On 15th January 2020, Wall Street opened in the green, as investors were extremely confident after the announcement of the phase one trade truce between China and the United States of America. Beyond Meat stocks were down by 5.8 per cent, after commutation of successive gains in the market. United Health shares were up by 0.7 per cent, after reporting higher than anticipated Q4 results. BlackRock also reported record net inflows for the period, following which its stocks were up by 0.8 per cent. Goldman Sachs was down by 0.6 per cent, after missing out on its results consensus. Bank of America reported a small drop in revenue for the period, post which its stocks were down by 0.3 per cent. Target shares were down significantly by 7.0 per cent, after investors seemed unhappy with the company’s festive season trading.

S&P 500 (SPX)

 Top Performers*: Coty Inc, Abbott Laboratories, and Edison International were in bright spot and zoomed up by 1.78%, 1.67% and 1.41% respectively.

 Poor Performers*: Target Corp, Best Buy Co Inc, and Bank of America Corp traded in red zone and beaten down by 5.12%, 2.44% and 2.29% respectively.

NASDAQ Composite (IXIC)

Elite Performers*: Cemtrex Inc, Fluent Inc, and Pope Resources A Delaware LP were hovering in positive zone and expanded by 74.58%, 36.53% and 33.68% respectively.

Worst Performers*: Estre Ambiental Inc, Phio Pharmaceuticals Corp, and Acorda Therapeutics Inc were among the beaten down stocks and plunged by 56.31%, 22.64% and 18.38% respectively.

Top Performing Sectors*: Utilities (up 0.78%), Healthcare (up 0.52%) and Technology (up 0.39%).

Worst Performing Sectors*: Energy (down 1.62%) and Financials (down 1.62%).

Dow Jones Industrial Average (DJI)

Top Performers*: UnitedHealth Group Inc, Merk & Co Inc, and Pfizer Inc were in the bright spot and increased by 1.67%, 1.13% and 0.97% respectively.

Worst Performers*: Goldman Sachs Group Inc, Walmart Inc, and Dow Inc were among the beaten down stocks and decreased by 1.80%, 1.02% and 0.88% respectively.

European Markets: The FTSE 100 index traded by 20.45 points or 0.27% higher at 7,642.80, the FTSE 250 index snapped 42.94 points or 0.20% lower at 21,713.11, and the FTSE All-Share Index ended 8.36 points or 0.20% higher at 4,237.59 respectively. Another European equity benchmark index STOXX 600 ended at 419.63, up by 0.04 points or 0.01 per cent.

European News: In economic news, the inflation figures in United Kingdom took a dip in the month of December 2019. This is as per the data published by the Office of the national statistics published of United Kingdom. The data shows that the Consumer prices in the month of December 2019 increased by only 1.3 per cent in annual terms as compared to the November 2019 growth of 1.5 per cent. After the data release on Wednesday 13 January 2020, the British Pound Sterling slid below $1.30 and the treasury bond prices shot higher. The data release has renewed the anticipations that there could be another rate cut by the Bank of England in near future. In business news, IAG the owners of British Airways have lodged a complaint with the European Union regarding the help the British Government is extending to troubled Airline Flybe to keep it afloat.

 London Stock Exchange (LSE)

Leading Companies of the Day*: PROVIDENT FINANCIAL PLC (PFG), FUNDING CIRCLE HOLDINGS PLC (FCH) and SPIRENT COMMUNICATIONS PLC (SPT) zoomed up by 7.94%, 5.40% and 5.14% respectively.

Companies which showed poor performance*: JUST GROUP PLC (JUST), ZOTEFOAMS PLC (ZTF) and INTU PROPERTIES PLC (INTU) were in red zone and declined by 7.27%, 6.71% and 6.70% respectively.

FTSE 100 Index

FTSE-100 index performance – 15 January 2020 (Source: Thomson Reuters)

Leading Companies of the Day*: SSE PLC (SSE), PEARSON PLC (PSON), and COCA-COLA HBC AG (CCH) accelerated by 2.60%, 2.35% and 2.03% respectively.

Worst Companies of the Day*: ROYAL BANK OF SCOTLAND GROUP PLC (RBS), PRUDENTIAL PLC (PRU), and NMC HEALTH PLC (NMC) decelerated by 2.95%, 2.48% and 2.31% respectively.

Volume Traction*: LLOYDS BANKING GROUP PLC (LLOY), BARCLAYS PLC (BARC), and VODAFONE GROUP PLC (VOD).

Sectors in positive zone*: Utilities (up 1.58%), Healthcare (up 1.04%), and Consumer Cyclicals (up 0.65%).

Sectors in negative zone*: Basic Materials (down 1.12%), Financial (down 1.03%), and Telecommunications Services (down 0.11%).

Foreign Exchange Rate Quotation*: GBP/USD and EUR/GBP currency pairs traded at 1.3029 and 0.8560, respectively.

US and UK 10-Year Bond Yields*: U.S 10-Year Treasuries yield was quoting at 1.792%, and the UK 10-Year Government Bond yield was trading at 0.654%, respectively.

*At the time of writing the report