Must read: tariff uncertainty, JD Sports, Mony

GLOBAL MARKETS 

Risk-off sentiment has gripped European markets at the start of the week with the DAX, CAC 40, SMI and FTSE 100 and FTSE 250 in the red. In the UK, defence stocks BAE Systems (LSE:BA.), Babcock International Group (LSE:BAB) and Rolls-Royce Holdings (LSE:RR.) are under performing. JD Sports Fashion (LSE:JD.) is the top performer, gaining over 4.5%, thanks to the launch of a new £200 million share buyback programme, higher than last year and boosting the shares. Fresnillo (LSE:FRES) is another top gainer fuelled by rising precious metals prices as investors seek safe havens. 

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Renewed tariff uncertainty has pushed precious metals higher and is weighing on equities. That's after President Trump announced plans to increase his global tariff rate to 15% from 10% following the Supreme Court’s ruling against his plans. In the US, the uncertainty has hit futures on Wall Street with S&P and Nasdaq down over 0.5%. 

Meanwhile, today is the deadline for Paramount Skydance Corp Ordinary Shares - Class B (NASDAQ:PSKY) to make a best and final offer for Warner Bros. Discovery Inc Ordinary Shares - Class A (NASDAQ:WBD) in a move that has the potential to derail Netflix Inc (NASDAQ:NFLX)’s $83 billion takeover deal.

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In Asia, markets in China and Japan are closed for public holidays. However, the Hang Seng surged 2.5% fuelled by hopes of lower tariffs on China.

MONY GROUP 

Mony Group (LSE:MONY) reported full-year revenue of £446.3 million, ahead of forecasts for £444.9 million. Adjusted EBITDA hit £145.1 million, also beating forecasts for £142.9 million. The company also announced a £25 million share buyback for 2026 and said earnings are expected to be in line with previous guidance for this year. 

Mony Group delivered a top and bottom line beat and is returning cash to shareholders, boosting shares in today’s trade. However, the stock is still in the red year-to-date - these results come at a tumultuous time for the company behind Money Supermarket. Shares plunged to the lowest level since 2013 on 10 February, falling by as much as 13% at one stage. This was sparked by the announcement that US based Insurify launched an AI insurance comparison tool that investors fear could cannibalise comparison businesses such as Money Supermarket and GoCompare. 

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However, investors are snapping up the shares at a discounted price today, thanks to the earnings report which have provided some optimism that the business can continue to perform well in the current environment. 

But the jury is out in terms of how AI will ultimately affect this and so many other businesses. Predicting how AI will play out longer term is proving to be an extremely difficult task that no doubt will come alongside significant bouts of market volatility. For now, analysts retain their consensus buy recommendation on the stock with average price target significantly higher than the current share price.