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richard hunterHead of Markets, Interactive Investor, Inc. will focus on financial markets, with the US employment report coming at lunchtime.
With little to upset the apple cart, U.S. markets hit new highs as supreme optimism continued to fuel buying intent.
Investors have expressed reassurance in recent days following Federal Reserve Chairman Jerome Powell’s remarks to members of Congress, saying there were no negative surprises. Most pertinently, the Fed is willing to cut interest rates this year if conditions warrant, suggesting that such action is not far off, even if there is no immediate need for monetary easing given the consistently positive economic data. Thing.
In fact, the relatively calm backdrop will be put to the test again with today’s release. Non-Agricultural Employment Report. Investors will also be keeping an eye on wage growth, which itself is inflationary, while hoping that employment will remain strong but start to slow. Employment is expected to rise by 200,000 in February, following 353,000 in the previous month, while the unemployment rate is expected to remain unchanged at 3.7%, the data shows.
During, technology stocks After a generally positive reporting season, we continued to move forward in hopes of easing financial conditions thereafter. Semiconductor indexes particularly benefited from investor interest, as buyers sought to ride the current wave of excitement around the potential of AI. Nvidia Enjoying additional benefits. In his year so far, Nasdaq is now up 8.4%, closely followed by an 8.1% increase. S&P500,on the other hand, dow jones is also in positive territory at 2.9%.
Turning to Asian stocks, he said:
Most central banks have increasingly agreed on a downward trajectory for interest rates, with Japan’s central bank also doing the same, with most Asian stocks joining the fold. Nikkei Shimbun The index continues to attract overseas buying interest. This could lead to the Bank of Japan going in the opposite direction, lifting negative interest rates, increasing wage growth to a level that would prompt the central bank to start, and the recent depreciation of the yen leading to a stronger yen. This was despite the fact that there is. tightening policy.
The Chinese market is somewhat positive, but the disappointment at this week’s National People’s Congress still weakens sentiment. Amid high unemployment, low consumer confidence and a struggling real estate sector, the lack of announcements on aggressive stimulus measures to revive the economy remains a source of despair for investors. Authorities appear keen to let the economy recover at its own pace, and the latest higher-than-expected import and export growth may provide some solace.
Packaging company Mondi acquires DS Smith.Asset manager Mattioli Woods goes private
There has been a flurry of acquisition deals (or offers) in recent days and weeks, and today is no exception.
The packaging company MondiIt pounced on a smaller Weybridge-based rival. DS Smith It has agreed an all-share deal worth £5.14bn, creating a paper and packaging group worth more than £10bn. Both companies stated the following:
This combination represents a great opportunity to create a pan-European industry leader in paper-based sustainable packaging solutions.
London-listed company acquired as asset management company Mattioli Woods Agreed to a £432m offer from a private equity firm capital of pollen town.
As the pound continues to fall in the wake of Brexit, the coronavirus pandemic and the disastrous mini-budget of a year and a half ago, private equity firms and some industry players are buying up British assets they believe are cheap. ing.
yesterday, National Building Association agreed to buy high street rival virgin money It was acquired for around £3 billion in the biggest British banking deal since the 2008 financial crisis.
The banks have reached a preliminary agreement on key terms of the acquisition, which, if approved, would reduce competition from the Big Four banks. This will create a group with total assets of £366 billion, around 700 branches and more than 23 million customers.
Acquiring Virgin Money, the UK’s sixth-largest retail bank, would also solidify Nationwide’s position as the second-biggest mortgage lender behind Lloyds Banking Group, according to data collected on mortgage balances by industry body UK Finance. It will be.
match fashion It was founded by a couple, tom and Ruth Chapmanopened its first store in Wimbledon, South London in 1987.
They sold their online designer empire Matchesfashion.com to private equity investors in 2017, leaving them with £400m in the bank.
funds advised by apax partnera company that owns karl lagerfeld and previously invested tommy hilfiger, agreed to buy a majority stake in the business in a deal that values Matches at £800m. The Chapmans, both in their 50s, liquidated most of their 67% stake and stepped back from day-to-day involvement, but continued in an advisory role.
However, the company has struggled recently due to a downturn in its luxury goods sector, with losses of £33.5m last year.
Introduction: Enter management according to fashion.Stock market rises on expectations for interest rate cut
good morning. Welcome to our regular coverage of business, financial markets and the global economy.
mike ashley‘s frazers group I’m putting it in match fashion It was pulled into administration just weeks after acquiring an online luxury clothing retailer, putting hundreds of jobs at risk.
Frasers bought the company, which sells fashion brands including Balenciaga, Gucci, Prada, Stella McCartney and Valentino, from a private equity firm for £52m. apax In late December. According to reports, Teneo has been appointed as administrator.
Frasers said in a statement to the stock exchange:
Since Frasers acquired Match, the company has consistently failed to meet its business plan targets and continues to incur significant losses despite support from the group. Matchess’ management has sought to find ways to stabilize the business, but restructuring the business will require significant changes and ongoing funding needs will be far greater than the group envisages. It became clear that it would be exceeded. It is doable.
In light of this, Frasers has been informed that the directors of Matches have taken the decision to place Matches Group into administration. Frasers remains committed to the luxury goods market and its brand partners.
The news was first reported by Sky News.
Exclusive: Mike Ashley’s Frasers Group is putting MatchFashion, the luxury online clothing platform it acquired for £52m in December, into administration following a downturn in trading and the exit of a number of brands. The stock exchange announcement will probably come tomorrow. More immediately.
— Mark Kleinman (@MarkKleinmanSky) March 7, 2024
Asian stocks hit a seven-month high after investors cheered at hints of a potential rate cut in the summer and ahead of today’s important US jobs report.
The S&P 500 rose more than 1% to close at a record high of 5,157, following a rally in U.S. stocks and after the head of the U.S. Federal Reserve indicated interest rates were likely to be cut by the end of the year. .34 was recorded.
MSCI’s broadest index of Asia-Pacific stocks outside Japan rose to 538.47 points, its highest level since August. Japan’s Nikkei Stock Average rose 0.2%, Hong Kong’s Hang Seng Index rose 1.3% and the Shanghai Composite Index rose 0.6%.
The European Central Bank left interest rates unchanged yesterday, with the president saying Christine LagardeHe was opposed to the idea of early interest rate cuts, and said at a press conference:
Although we did not discuss reductions at this meeting, we have begun to discuss reducing our restrictive stance.
He strongly hinted that this could happen at the ECB’s June 6 meeting, when first-quarter wage data will be released.
We’ll know a little more in April, and even more in June.
Chairman of the Board of Governors of the United States Federal Reserve System Jerome Powell He expressed a similar opinion regarding interest rate trends in the United States. He said yesterday that the US central bank is “not far off” from gaining the confidence it needs to lower inflation to start cutting borrowing costs. He told the Senate Banking Committee:
I think we are in the right place. We are waiting for further confidence that inflation is sustainably falling to he 2%. When we have gained that confidence and are not far from it, it will be appropriate to start lowering the level of restrictions so as not to push the economy into recession.
Germany’s industrial production rose 1% in January Although it decreased compared to the previous month, the rate of decline in December was revised to 2% from 1.6%.
According to official data this morning, the construction industry also recovered, along with the chemical and food industries, machinery maintenance and assembly, but automakers recorded a 7.6% decline.
agenda
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10:00 a.m. (GMT): Eurozone Q4 GDP Third Forecast (Forecast: 0%)
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1:30 p.m. (GMT): U.S. non-farm payrolls in February (estimated: 200,000)
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