International Market Overview 5 January 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 hit a record high on Tuesday as the new year’s momentum continued in global markets. The pan-European Stoxx 600 index closed 0.8% higher after hitting a new daily high of 495.41 points earlier. Most sectors and major bourses were in positive territory. Shares of airlines and tour operators were among the biggest gainers in the index, up 3.4%. Stocks that had benefited from stay-at-home restrictions were the worst performers. Earlier on Monday, stocks in the region started 2022 with a bang as most major regional indexes traded higher on the first trading day of the new year.

     

  • The Dow Jones Industrial Average rose for a second day to start 2022 as investors bet on the types of stocks that would benefit from a robust economy this year despite the Omicron threat. However, the continued rise in bond yields at the start of the new year caused investors to turn away from tech stocks, sending the Nasdaq lower. Losses in tech stocks that were big winners last year, such as Nvidia and Tesla, weighed on the broad market. On the session’s winning side were stocks like banks, which stand to benefit from rising interest rates. JPMorgan Chase, American Express and Goldman Sachs were among the biggest gainers in the Dow.

     

  • Stocks in the Asia-Pacific region struggled to find their footing this morning as tech stocks in the region came under pressure amid rising U.S. bond yields. Hong Kong-listed shares of Tencent fell about 2% in early trading. The Chinese tech giant had announced on Tuesday that it will sell 2.6% of its stake in Sea Limited. Elsewhere in the region, shares of South Korea’s Samsung Electronics fell 1.91%.

 

In International news

 

Tencent sells $3 billion stake in Singapore tech group Sea

Chinese gaming and social media company Tencent Holdings has sold 14.5 million shares in Singapore-based gaming and e-commerce company Sea at $208 each to raise $3 billion, according to a term sheet seen by Reuters today. Tencent sold the shares at the low end of the price range of $208.00 to $212.00 per share when the deal was announced on Tuesday. Tencent and Sea declined to comment on the stock sale. The price set was a 6.8% discount to Sea’s last closing price on Monday of $223.31 per share. Sea’s shares fell 11.4% to $197.84 in New York on Tuesday on news of the sale. The sale of 14.5 million shares reduces Tencent’s stake in Sea to 18.7% from 21.3%.

 

Ford plans to nearly double production of its new F-150 Lightning all-electric pickup lorry

Ford Motor announced Tuesday that it plans to nearly double annual production capacity of its upcoming F-150 electric pickup to 150,000 vehicles per year by mid-2023, citing strong consumer demand. The increase is a positive sign for demand for the F-150 Lightning, as well as electric vehicles in general, but also shows that Ford is clearly