International Market Overview 1 February 2022

Sharing our Daily Market Overview with you, ensuring that you do not miss out on any important market changes!

 

International Market Update

  • European stocks closed higher on Monday, the last trading day of January, as investors weighed upcoming central bank decisions and geopolitical tensions between Russia and Ukraine. The pan-European Stoxx 600 index provisionally closed up 0.6%, with technology stocks leading the gains with a 2.9% increase, while most sectors and major bourses traded in positive territory. Eurozone GDP growth slowed in line with expectations in the fourth quarter of 2021, rising 0.3% quarter-on-quarter for a 4.6% annual increase.
  • U.S. stocks rose for a second day Monday, ending a rough January, as investors bought up some of the tech stocks that have been battered all month. Netflix and Spotify rose more than 11% and 13%, respectively, after Citi raised its rating on Monday. The company cited an attractive time to buy for the pullback this month. Outside the technology sector, Boeing was the biggest gainer in the Dow, rising 5% after the aerospace company inked a deal with Qatar Airways worth $34 billion.
  • Asia-Pacific markets rose this morning, following stocks on Wall Street, which rose for a secondstraight session. Investors in the region were looking ahead to the announcement of India’s budget and Australia’s interest rate decision, which is due today. According to Reuters, Japan’s manufacturing sector grew at its fastest pace in nearly eight years, driven by new orders and higher output. Australian retail sales fell 4.4% to 31.9 billion Australian dollars ($22.53 billion) in December after rising 7.3% in November, according to Reuters.

In International news

Sony to acquire video game maker Bungie for $3.6 billion
Sony Interactive Entertainment has agreed to acquire privately held video game developer Bungie for $3.6 billion, continuing industry consolidation this month. Bungie is the company behind the multiplayer shooter games Destiny and Halo, which it developed until 2010. Bungie was acquired by Microsoft in 2000 and spun off from that company in 2007. While the acquisition is smaller than Take-Two Interactive’s $12.7 billion deal for Zynga and Microsoft’s $69 billion acquisition of Activision Blizzard,  Sony has agreed to buy the company that helped launch Microsoft’s first Xbox in 2001 with Halo. All three video game deals were announced in January.

Boeing wins order from Qatar Airways
Boeing won a major order from Qatar Airways on Monday as the airline clashes with rival manufacturer Airbus. The order is worth $34 billion at list prices, the aircraft maker said, although airlines typically get discounts, especially on such large orders. The airline is also Boeing’s first customer for a freighter version of its newest jetliner, the 777X, as the plane maker celebrated the official launch of the new freighter. Qatar signed an order for 34 examples of the 777X, a giant twin-engine aircraft operated by General Electric, as well as options for 16 more jets. The airline also ordered two Boeing 777 freighters. Boeing expects the 777X passenger jet to enter service in late 2023, about three years later than planned.