Weakness in the tech sector has weighed on US markets ahead of the Federal Reserve’s rate meeting, with the Nasdaq 100 and S&P500 experiencing early pressure due to profit-taking in the broader tech sector.
In Europe, markets have struggled for gains, with the FTSE100 benefiting from a strong performance in the healthcare sector. GSK, a pharmaceutical giant, raised its outlook for the next fiscal year, citing optimism over the sale of its new RSV vaccine. Despite falling short of profit forecasts in Q4, the company’s upgraded guidance has contributed to an uplift in the wider sector.
However, shareholders have expressed disapproval of Vodafone’s decision to reject an offer for its Italian business from Iliad for the second time. The bid was turned down despite Iliad offering an additional €100m in cash, raising the cash component to €6.6bn. With Vodafone’s management considering options with other suitors for the Italian business, the clothing retail sector has seen weakness following a slide in H&M shares after the retailer missed Q4 operating profits and announced a change in CEO.
In the US, markets opened mixed following the latest ADP jobs report, which revealed that the economy added 105k jobs in January. The focus now turns to the Federal Reserve’s meeting and Powell’s press conference.
