Friday, January 21, 2011

Market Overview | 21 January 2011

Market Overview | 21 January 2011

US Markets : There was a major power shift at Google as Larry Page takes the reins, replacing Eric Schmidt in April as CEO of the company. Google is attempting to take the fight to Facebook in 2011. Google’s fourth-quarter profits jumped 29 %, as the company reported better than expected net revenue. The stock was up at $626 yesterday, having traded above $640 during trade.

Elsewhere, Exxon declined to below $77 before closing down more than 0.6$ at $77.70.

The S&P 500 is trading at 1,275, little changed overnight while the Dow Jones 30 is slightly lower, down 0.1% at 11,759. Focus in the US today will be on earnings releases and of course the market reaction to the big moves in Apple and Google this week.

European Markets : European focus is on Spain this morning as they seek private investors to the country’s Cajas saving banks. This effort to organize the country’s banks has had a positive effect on the market with the IBEX 35 up over 1.5% this morning, trading at 10,810. Banco Santander and Banco Bilbao have risen more than 3% on the news of this noteworthy attempt by the Spanish government.

Most European stocks have risen this morning as German Ifo business confidence climbed to a record high in January. The figure increased to 110.3 in January, up from 109.9 in December.

Elsewhere, Italy’s largest defense company Finmeccanica released better than expected earnings pushing other Italian stocks higher with the FTSE/MIB up by more than 1.2% to 22,080. Commodities related stocks such as BP and Shell are also higher this morning as crude prices rebound, trading at 500.5 and 2,136 accordingly.

Asian Markets : The worst weekly performance in Asia in nearly two months meant that most markets were down this morning. The Nikkei traded lower overnight as commodity related stocks underperformed suggesting a mood change in the market. The Japanese Index has declined from above 10,500 this week.

The Nikkei 225 was trading at 10,300 this morning, down 1.4% from yesterday, with the HSI closing lower at 23,885 while the MSCI was also significantly lower at 318.

Stock of the Day : Once again, all eyes are on Google today as the market reacts to earnings released yesterday in close trade. The stock remains centre stage as Larry Page becomes the company’s new CEO.

January 21, 2010 - by David Frank, Financial Analyst, Ava Fx