Moving markets: Five things shaping the FTSE 100 today
Moving Markets Today: Asian Stocks Gains, Netflix Surges Over 8%, Oil Prices Hold Steady, BOC to Hold Rates, Focus Turns to Tesla Earnings
U.S. stocks posted modest gains, with the S&P 500 hitting a new record for the third consecutive day. Asian markets rose on optimism about a potential rescue package in China. Netflix broke its fourth-quarter subscriber record, resulting in an impressive over 8% surge in its shares. The Bank of Canada is expected to maintain its key rate at a 22-year high of 5%. Investors are closely monitoring UK PMI releases for clues about the Bank of England’s decisions. Tesla will announce its earnings after the U.S. market closes on Wednesday, and investors are eager to see if it marks a turnaround in the current stock decline. Here are five key takeaways for your day.
Netflix Sets Fourth-Quarter Subscriber Record, Shares Soar 8% After-Hours Trading
Netflix exceeded expectations in the fourth quarter, surpassing Wall Street’s subscriber estimates with the help of popular shows like the final season of “The Crown” and the original film “The Killer” directed by David Fincher. The company reported a remarkable growth of 13.1 million subscribers in the December quarter, outpacing the projected 8.97 million and bringing the total subscribers to 260 million. Following this impressive performance, Netflix shares rose by 8.3% in after-hours trading. Notably, the stock had a remarkable 65% gain throughout the year 2023.
China Creates 12.44 Million Urban Jobs in 2023; Japan Exports Soar
China met its goal, creating 12.44 million urban jobs last year, but uncertainties in 2024 prompt the need for additional employment support, according to the human resources ministry. China aimed for 12 million urban jobs in 2023, with the new target expected in March. In a separate development, China’s securities regulators are limiting short selling in the stock index futures market to stabilize declining stocks.
Japan’s December exports hit a record high, notably to the U.S. and China, marking the first increase in over a year. Despite worries about a possible slowdown in China affecting the global economy, Japan’s exports rose by 9.8% to 9.65 trillion yen ($65.1 billion) last month, per finance ministry data. While Japan’s factory activity shrank for an eighth straight month in January, the service sector displayed strength, fueled by a rise in new business, as indicated by a private business survey.
UK Pay Awards at 6% in Late 2023, Dip Seen in Early 2024: XpertHR
XpertHR reported that British employers sustained their highest pay levels in over 30 years in Q4 2023, according to Reuters report. However, deals in early 2024 suggest that pay growth may have peaked. The median pay settlement remained at 6% for October-to-December, consistent with the average for the whole previous year.
What’s Coming Up
The Bank of Canada is expected to maintain its key overnight rate at 5%, a 22-year high, during its Wednesday policy meeting. The European Central Bank is also anticipated to keep interest rates unchanged on Thursday. Investors will closely analyze statements and Christine Lagarde’s press conference for hints on future rate movements. Significant attention is on key U.S. reports, including fourth-quarter GDP figures and G7 nations’ latest purchasing managers’ index (PMI) reports. Notable U.S. companies such as Tesla, IBM, and Abbott Laboratories are set to release their earnings reports today.
Chinese Tech Giants Drive Surge in Hong Kong Stock Market
The S&P 500 rose by 0.29% to 4,864.59 points, while the Nasdaq gained 0.43% at 15,425.94 points, and the Dow Jones slipped 0.25% to 37,905.45 points. Verizon surged 6.7% on a strong profit forecast, Procter & Gamble gained 4.2%, beating profit expectations, while 3M tumbled 11% due to a downbeat annual forecast. In Asia, shares rose on hopes of Chinese market support. Hong Kong’s Hang Seng jumped 1.9%, China’s CSI 300 added 0.2%, with NetEase, Alibaba, and Baidu leading gains. The Nikkei 225 fell 0.68%. The 10-year Treasury yield was 4.138%, the U.S. dollar index held at 103.48, and U.S. crude rose 0.07% to $74.42 per barrel. Spot gold dropped 0.1% to $2,027.09 per ounce.