Diageo Raises Glasses and Stocks' Value

28/09/2020

European stocks traded much higher on Monday 28.09.2020 influenced by strong Chinese data; It raises hopes that the global economic downturn in 2020 will not be as terrible as predicted it’d be. 

For the 4th consecutive month, industrial companies in China showed positive turnovers which means the world’s second-largest economy is on the path to economic recovery.

Wall Street opened strong as well. The S&P 500 futures (ES=F) were slightly up, around 0.6%; a similar pattern can be seen in Dow Jones futures (YM=F) 0.7% higher, and Nasdaq futures (NQ=F) 0.6%.

Cleveland-Cliffs (NYSE: CLF), the largest U.S. producer of iron ore pellets, agreed to buy ArcelorMittal (NYSE: MT) U.S. assets at a value of $1.4 billion; as a result, ArcelorMittal stocks rose by 5.7%

Meanwhile, William Hill (LON: WMH) stock, which experienced a significant rise of 40% on Friday, fell 12%, receiving the proposals from Apollo and the casino giant Caesars Entertainment. Caesars’ offer on the table is 272 pence per share totaling the price to £2.9 billion.

HSBC soared by 10% as the world’s biggest insurer, China’s Ping An, increased its stake from 7.95% to 8%; the bank’s stocks plummeted to the lowest since 1995 last week.

Diageo (DGE.L), the alcohol giant and the brand behind Johnnie Walker whisky and Guinness beer, jumped 6%; the update came after the announcement by the company’s CEO, Ivan Menezes, that Diageo’s sales in the United States and other parts of the world had been higher than the expectations 

Elsewhere, international markets might quickly lose their gains because the shadow and fear of recession are still looming; CoronaVirus cases are still rising, making the second wave more unpredictable and dangerous.

“We have another 4-6 challenging weeks ahead of us in Europe since the virus spread could further accelerate when gatherings tend to move indoors during the autumn.” Nordea analysts wrote in a research note. 

Brexit talks' final round of decisions this week might interest many investors. The market remains to see what decisions will come out of the talks.