Home > European markets fall, Activision shares surge 37% premarket- Market update

European markets fall, Activision shares surge 37% premarket- Market update

  • European indexes edged lower, with the FTSE 100 declining from a two-year high close reached on Monday.

  • Shares of Activision soared on news Microsoft was to acquire the video game company

  • Goldman Sachs also fell after mixed earnings

European shares traded lower on Tuesday to see Monday’s gains erased following amid a mix of data.

The FTSE 100 was down 0.6% in afternoon trades, tumbling to 7,570.79 as it broke from the two-year highs reached on Monday. The pan-European Stoxx 600 fell 1% while Germany’s DAX was down 0.92% and the French CAC 0.77% lower.

The declines across the markets followed largely lower moves in the Asian market where China’s Shanghai Composite and the Shenzhen component were the only indexes to close higher.

The FTSE was struggling amid pressure in the technology and consumer goods sectors, this coming after the UK’s jobs data earlier in the day.

Details released by the Office for National Statistics (ONS) showed that unemployment fell in December, even as average total pay rose 4.2%. 

US markets will open today after Monday’s Martin Luther King Jr. holiday, though futures traded lower. The S&P futures were down 1%, the Dow 0.85%, and the Nasdaq futures 1.52%. The Russell 2000 futures were also 0.92% lower.

Activision shares jump 37% premarket

Shares of Activision Blizzard soared nearly 37% in premarket deals after tech giant Microsoft announced on Tuesday that it would buy the video game company.  The all-cash deal is said to be worth around $68.7 billion.

While the video game company’s shares rallied ahead of US markets opening, those of Microsoft slipped nearly 3% before halting the decline.

Microsoft’s interest in Activision comes as the company bids to position itself well ahead of major moves in the metaverse space. The virtual world technological concept already has other big tech companies like Meta Platforms and Google looking to take a leading role.

Alibaba, Goldman Sachs shares fall

Elsewhere, shares of Chinese e-commerce giant Alibaba have also declined premarket following news the US was investigating possible national security threats related to the company’s cloud service. The stock was down 3.8% premarket.

Goldman Sachs also weakened after mixed Q4 earnings. Just like JPMorgan and Citigroup last week, Goldman Sachs shares fell over 2% after the earnings report. On Tuesday, the bank’s reported revenue beat consensus estimates, but the $10.81 per share earnings in the last quarter were below analyst forecasts of $11.76.

Dollar strengthens

The 10-year US Treasury and the 10-year UK Treasury yields were up, while the dollar index strengthened to put pressure on the euro and the sterling 1.358 and 1.136 against the greenback respectively.

Oil prices continued to strengthen, with Brent crude up 1.79% to $85.79 per barrel. Gold struggled during the European session, down 0.3 to hover around $1,812 per ounce.

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