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Global stocks tumble on Monday
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US500 getting closer to the correction territory
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Microsoft to acquire the video-game publisher for $7.5 billion
Monday brought yet another wave on pessimism to the global stocks markets. As coronavirus fears are on the rise in Europe, some countries consider new restrictions (for instance United Kingdom). Moreover, world’s major banks have been hit by a report based on Financial Crimes Enforcement Network (FinCEN), suggesting that some institutions moved large sums of illicit funds over two decades. Therefore banks are among top laggards today. At press time major U.S. indices are extending losses with S&P 500 down roughly 2%.
US500 dives along with other U.S. indices. The index has been approaching important 3,230 pts level, which should be regarded as key support for now. Should market bears manage to break below it, the downward move might actually accelerate as US500 is getting closer to the correction territory (a drop of at least 10%). Source: xStation5
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S&P 500 top movers at 2:53 pm BST. Source: Bloomberg
Oracle (ORCL.US) will take a 12.5% minority stake in TikTok Global, with Walmart (WMT.US) taking a 7.5% stake as Donald Trump approved the idea on Saturday. U.S. President clearly stated that it would be a brand new company. ByteDance responded that it would remain in control of a business. But because 40% of ByteDance is owned by U.S. venture capital firms, TikTok Global will technically be owned by the U.S. investors.
Microsoft (MSFT.US) will acquire ZeniMax Media, owner of the video-game publisher Bethesda Softworks (publisher of games like The Elder Scrolls, Doom and Fallout). The transaction is worth $7.5 billion which means that it is the biggest video game purchase ever. Microsoft is launching a new generation of Xbox consoles in November.
Microsoft (MSFT.US) shares fell below July’s lows ($197.58) for a while to reach levels seen in June. Stock is trying to stay afloat at press time as Nasdaq index has fallen into the correction territory. Source: xStation5
Genetic sequencing giant Illumina (ILMN.US) will pay $7.1 billion in cash and stock for the part of Grail Inc - developer of a test for early detection of cancer. Illumina already owns a large stake (about 12% of Grail’s shares). The transaction would put the testing and sequencing under one roof.
