Breaking News
0
Haluatko käyttää Investing.com-verkkosivujen suomenkielistä versiota?

Top 5 Things to Know in the Market on Monday, 3rd February

EconomyFeb 03, 2020 06:36AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Geoffrey Smith

Investing.com -- China's stock markets had their worst day in five years as they reopened, catching up with losses posted globally during the extended New Year holiday. The Chinese stock market regulator banned short-selling while the central bank injected a modest amount of net liquidity to support the system. European purchasing managers indices rebounded weakly, setting a low bar for the U.S. Institute of Supply Management's survey later. The post-Brexit era got off to a rocky start as Boris Johnson revived the specter of tariffs between the U.K. and EU. Google parent Alphabet (NASDAQ:GOOGL) heads the day's earnings roster. Here's what you need to know in financial markets on Monday, 3rd February.

1. China markets tumble on reopening after holiday

China’s financial markets shook as they reopened after an extended Lunar New Year holiday. The main stock markets in Shanghai and Shenzhen fell some 8%, and the yuan fell 1.2% against the dollar to its lowest in eight weeks – once again breaching the psychologically important level of 7 to the dollar.

That happened despite a ban on short-selling by the stock market regulator and the injection of a net $22 billion into the domestic money market by the central bank. The People’s Bank of China effectively chose to roll over all of the extra seasonal liquidity that it pumped in ahead of the holidays, and add a little more for good measure.

There has been no major change in the narrative around the outbreak over the weekend: the death toll rose to 361 from 17,205 confirmed cases.

2. Markets set to bounce at opening

U.S. stocks are set to open with a bounce on Monday after a Friday session where selling had accelerated into the close.

By 6:30 AM ET (1130 GMT), Dow 30 futures were up 107 points, or 0.4%, while S&P 500 Futures were up 0.4% and the Nasdaq 100 futures contract was up 0.5%.

European markets had also opened broadly higher, with the benchmark Stoxx 600 index edging up 0.1%. Commodities had also stabilized, with copper futures set to break a run of 13 straight down days. The dollar index, meanwhile, strengthened by 0.3%, due chiefly to gains against the euro and sterling.

3. Alphabet's numbers are up next

Alphabet (NASDAQ:GOOGL), the parent company of Google, reports its quarterly results after the closing bell on Monday, the first time under the leadership of Sundar Pichal.

Analysts polled by Investing.com expect earnings per share to have fallen some 2% year-on-year to $12.50 a share, on a 19% rise in revenue to $46.9 billion.

Alphabet (NASDAQ:GOOGL) stock gained 7% in January, outperforming the broader market after underperforming with a gain of only 19% in 2019.

Investors will be looking for as much detail as possible on the contribution of cash cow YouTube, as well as the progress of self-driving technology unit Waymo, among other things.

4. Sterling tumbles as post-Brexit era starts awkwardly

The pound tumbled over 1% against the dollar and nearly 0.8% against the euro as the post-Brexit era began with some confrontational rhetoric out of London.

U.K. Prime Minister Boris Johnson said in a keynote speech that he would rather accept tariffs than the jurisdiction of the European Court of Justice, reviving the risks of an economically damaging rupture with the EU at the end of an agreed transition period which ensures that nothing essentially changes in the U.K.-EU relationship until the end of the year.

The EU’s members haven’t yet agreed on the mandate they will give the European Commission as regards negotiating a free-trade deal with the U.K. However, governments and Commission representatives had been largely consistent in the three years since the referendum that they would press for an extensive role for the ECJ in any FTA.

5. PMIs point to weak rebound

On an otherwise light day for data, purchasing managers indices across Europe showed the manufacturing sector still in contraction at the start of 2020, albeit apparently past the worst of last year’s slowdown.

The eurozone manufacturing PMI from IHS Markit rose to 47.9, a little higher than the 47.8 expected but still below the 50 line that separates growth from contraction. The U.K. PMI did make it back to 50 for the first time since May but the news was overshadowed by the post-Brexit tensions.

Markit’s PMI for the U.S. is due at 9:45 AM ET (14:45 GMT), while the Institute of Supply Management’s manufacturing survey follows quarter of an hour later.

There are also U.S. vehicle sales numbers due at 6 PM ET (2300 GMT).

Top 5 Things to Know in the Market on Monday, 3rd February
 

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (6)
Randy Roberts
Randy Roberts Feb 03, 2020 9:45AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Folks - people can still buy things... Even in China....  Just relax...and look at the old "crisis pandemic" impacts.
Moose Moose
Moose Moose Feb 03, 2020 8:22AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
the death toll rose to 361 from 17,205 confirmed cases.- error?
Ron Warren
Ron Warren Feb 03, 2020 7:52AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
What I know for a fact that's going to happen this week is that our market will tank! Too many of our overvalued stocks depend on a thriving Chinese economy! All of Apple's forecast was based on a prosperous Chinese economy. The false run-up of Tesla was based on Chinese customers! All the chip companies have been banking on a trade deal and Chinese consumption. This is just the tip of the iceberg!! Wait and See!!
icouldnotthink67 .
icouldnotthink67 . Feb 03, 2020 7:23AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
1% is a tumble for currency - debating if I agree or not...
ian manro
ian manro Feb 03, 2020 7:16AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I would be more curious to know why the author thinks of the reasons for the bouncing rather than reading what I can see on the chart.Any insights?
Hanna Christin
Hanna Christin Feb 03, 2020 7:16AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
buying the dip
Pwr Strk
Pwr Strk Feb 03, 2020 7:05AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
bounce my ******.. with China deepening in virus trouble that ain't happening
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email
Investing.com presents a one-time opportunity