Home > FTSE 100 opens higher, set to claw back Monday’s losses – Market update

FTSE 100 opens higher, set to claw back Monday’s losses – Market update

  • The FTSE closed in the red on Monday despite a late attempt to recoup intraday losses.
  • Japan’s Nikkei leads Tuesday’s bounce in Asian markets.
  • CNBC’s “Mad Money” host Jim Cramer says recent weaknesses in tech stocks offer a buying opportunity for FAANG and Microsoft.

UK’s FTSE 100 closed lower on Monday as traders failed to claw back the day’s losses following a sharp decline during early trading sessions. After sinking more than 2% in intraday deals, the index pared some of the losses and closed at 0.99%.

European markets have, however, opened higher on Tuesday even as investors continue to pay attention to Omicron concerns. The Stoxx 600 is up 1% as is the FTSE 100, while the DAX and CAC are seeing similar upsides during early trades.

Japan’s Nikkei bounces 2%

The outlook for European stocks is likely to mirror Asian markets, which are trending green in late afternoon sessions. The rebound for the broader Asia-Pacific markets has seen Japan’s Nikkei 225 climb over 2% while there also are gains for South Korea’s Kospi, up 0.41%; the Shanghai Composite and Hong Kong’s Hang Seng index which are 0.4% and 0.54% in the green.

The strong bounce in Asia-Pacific markets has been buoyed by significant gains for semiconductor stocks.

It follows US-listed Micron (MU) reporting quarterly earnings that beat estimates. While the company’s stock price closed at $82.03, about 1.2% lower on Monday, it has rallied close to 7% after hours to $87.60 to highlight positive investor sentiment.

Tokyo Electron and Advantest shares have risen 4% each, while there are also gains of more than 1% for Samsung Electronics and Semiconductor Manufacturing International Corp.

Cramer on FAANG and Microsoft

CNBC’s “Mad Money” host Jim Cramer thinks the current tech sell-off and weakness offers a buying opportunity for five big-cap stocks collectively dubbed FAANG. These are the stocks of industry giants Facebook (Meta), Amazon, Apple, Netflix, and Google (Alphabet).

Also included alongside this group of stocks is Microsoft, another tech giant to face increased downside pressure as the market reels from an Omicron variant-catalysed downturn.

According to Cramer, FAANG stocks have “many secular growth characteristics” as well as terrific management. His advice: these six stocks are bottoming out soon and will lead the rest of the market in posting a powerful rebound.

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