Todays news affecting the financial and crypto markets today.
UK Market
A slightly negative start is expected for equity markets this morning with the FTSE100 called to open with losses of around 20 points.
US Market
The U.S. markets started the week on a positive note, as they trended slightly higher over the afternoon, with mega-caps stocks leading the way as the Nasdaq outperformed. The S&P finished the day up 0.8%, up 0.3% from the European close, while the Nasdaq finished the day up 1.9% and the Dow finished up 0.3%.
ASIAN Market
Asian markets that are open mainly drift sideways while oil climbs over concerns for more sanctions. Australia and Japan both pare earlier gains to trade just above their flat lines while China, Hong Kong and Taiwan closed for holidays.
Oil
Oil futures rose in early trading as the potential for more sanctions following alleged war crimes by Russian troops in Ukraine added to concerns about supply disruptions, while Iran nuclear talks stalled.
Brent Crude is trading at $109.00
US Crude is trading at $104.30
Gold
Gold inched lower as the U.S. dollar held firm on rising prospects of more Russian sanctions, and bigger interest-rate hikes by the Federal Reserve to rein in inflation.
Gold is trading at $1,931
Positive news
GO-AHEAD (LON: GOG) ; CONCLUSION OF BUSINESS REVIEW. A new strategy has now been announced, “The Next Billion Journeys” ups rev target 30% to £4b & operating profit to £150m in the medium term. Will re-instate dividend payout between 50-75% of EPS beginning FY22. Whilst no major strategy change, all reads well and confident going forward, will continue to look for growth opportunities.
HOMESERVE (LON: HSV) ; Solid progress being made across all three divisions as performance accelerates YoY. Home experts division profitable for first time on a Full Year basis as Checkatrade continues to perform well.
IP GROUP (LON: IPO) ; Portfolio company First Light Fusion has confirmed that is has achieved ‘fusion’ which has been independently validated by the UK Atomic Energy Authority. This will at least double the value of the company leading to a fair gain of £57m to IP Group or ~5p/share.
MOONPIG (LON: MOON) ; T/U. Raises guidance to £300m from £270-285m, the upgrade reflects the temporary impact of Covid-19 on customer behaviour in late Dec/Jan. EBITDA margins seen at a rate of 24-25%. The company continues to invest in technology and remains confident on the Full Year.
Crypto
The UK government announced moves that it will recognise stablecoins as a valid form of payment as part of wider plans to make Britain a global hub for cryptoasset technology and investment.
The initiative is part of a broader effort by the UK government to “lead the way” in cryptoassets globally. The minister announced a number of steps the UK will take to bring digital assets under more regulatory scrutiny, including plans to:
Bring certain stablecoins into the UK payments framework so that stablecoin issuers and service providers can “operate and grow in the UK.”
Consult on a “world-leading regime” for regulating trade in other cryptocurrencies, including bitcoin.
Ask the Law Commission to consider the legal status of blockchain-based communities known as decentralised autonomous organisations, or DAOs.
Examine the tax treatment of decentralised finance (DeFi) loans and “staking,” which gives crypto users the ability to earn interest on their savings.
Establish a Cryptoasset Engagement Group that will be chaired by ministers and host members from the UK regulators and cryptoasset businesses.
Explore the application of blockchain technology in issuing debt instruments.
Chancellor of the Exchequer, Rishi Sunak said:
“It’s my ambition to make the UK a global hub for cryptoasset technology, and the measures we’ve outlined today will help to ensure firms can invest, innovate and scale up in this country. We want to see the businesses of tomorrow – and the jobs they create – here in the UK, and by regulating effectively we can give them the confidence they need to think and invest long-term. This is part of our plan to ensure the UK financial services industry is always at the forefront of technology and innovation.”
Financial markets commentary is provided by Guardian Stockbrokers.
