GameStop Surges after ‘Roaring Kitty’ returns!

Equities

On Monday, the FTSE 100 index ended its six-session streak of gains, dropping 0.2% as aerospace and defence stocks weighed on performance. BAE Systems saw its shares fall by 3.2% following a downgrade from "buy" to "neutral" by BofA Global Research. Meanwhile, Phoenix Group's shares decreased by 2.3% after the announcement that CFO Rakesh Thakrar would step down. Contrasting these declines, Diploma Plc emerged as a standout, climbing 4% to reach a record high after issuing an optimistic business forecast.

Across the pond, US stock markets were mixed with the S&P 500 slightly down by 0.02% and the Nasdaq Composite gaining 0.29%.

GameStop's stock soared by 74% following news that "Roaring Kitty," a key figure in the 2021 meme stock rally, had returned to active trading on X.com. This rally also boosted other stocks associated with the meme stock phenomenon, with AMC Entertainment and Koss Corp rising 78% and 36.7% respectively.

Technology stocks in the US had a positive day overall, with Apple, a major index component, increasing by 1.8%. Alphabet managed a modest increase of 0.3% despite earlier losses, as it prepared to reveal new AI features at its developer conference.

Forex & Commodities

On Monday, the US dollar showed a slight decrease against a basket of major currencies, reflecting market anticipation of the upcoming US inflation data expected to influence Federal Reserve rate decisions. The dollar index fell by 0.11% to 105.20. Meanwhile, the British pound gained, rising 0.27% to $1.2558 against the dollar, ahead of Tuesday's labour market data release.

In the UK, attention is turning towards upcoming labour market statistics and commentary from Bank of England officials, which might provide clues about future monetary policy. Similarly, US markets are cautiously awaiting consumer price index data, with expectations set for a 0.3% rise month-over-month.

Gold saw an increase, with spot gold rising by 0.4% to $2,344.39 per ounce, buoyed by expectations surrounding the US Consumer Price Index (CPI) and Producer Price Index (PPI) data releases. US gold futures also rose, gaining 0.3% to reach $2,350.00.

In the oil markets, prices remained relatively stable, with Brent crude futures inching up 4 cents to $83.40 a barrel, and US West Texas Intermediate crude also increasing by 5 cents to $79.17 a barrel. This comes as investors look ahead to a monthly report from the Organization of the Petroleum Exporting Countries (OPEC) expected later in the week.