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Gold Futures Settle Slightly Higher

Evoqua Gains On Agreement To Be Acquired By Xylem

Evoqua Water Technologies Corp. (AQUA) shares are gaining more than 11 percent on Tuesday morning trade after agreeing to be acquired by its peer Xylem (XYL) in an all-stock deal worth an enterprise value of $7.5 billion. As per the definitive agreement, Evoqua shareholders will receive 0.480 shares of Xylem for each share, representing a value of $52.89. Xylem shares are on a decline.

Xylem, upon closing of the deal, will own around 75 percent of Evoqua and will own approximately 25 percent of the combined company.

Currently, AQUA shares are at $45.76, up 11.53 percent from its previous close of $41.03 on a volume of 2,043,406.

Xylem shares are at $99.51, down 9.68 percent from the previous close of $110.18 on a volume of 1,352,805.

European Economic News Preview: UK Labor Market Data Due

Labor market statistics from the UK and economic sentiment from Germany are the top economic news due on Tuesday, headlining a busy day for the European economic news.

At 2.00 am ET, the Office for National Statistics releases UK unemployment data. The jobless rate is seen unchanged at 3.7 percent in three months to November.

In the meantime, Destatis publishes Germany’s final consumer and harmonized prices for December. The flash estimates showed that consumer price inflation eased to 8.6 percent from 10.0 percent in November.

At 4.00 am ET, Italy’s Istat is scheduled to issue consumer and harmonized prices for December. Inflation is seen at 11.6 percent, unchanged from the flash estimate and down from 11.8 percent in November.

At 5.00 am ET, Germany ZEW economic confidence survey results are due. Economists forecast the economic sentiment index to improve to -15 in January from -23.3 in December.

At 6.00 am ET, consumer prices data from Ireland and producer prices from Portugal are due.

Xylem Stock Slips 10% On Acquisition Deal To Buy Evoqua

Shares of Xylem Inc. (XYL) are slipping over 10% on Monday morning after the company announced deal to acquire Evoqua in all-stock deal.

XYL is currently trading at $98.45, down $11.73 or 10.65%, on the NYSE. The stock opened its trading at $100.66 after closing previous day’s trading at $110.18. The stock has traded between $72.08 and $118.58 in the 52-week period.

Xylem agreed to buy Evoqua in an all-stock deal that reflects an implied enterprise value of around $7.5 billion. Evoqua shareholders will receive 0.480 shares of Xylem for each Evoqua share, representing a value of $52.89 per share.

Upon closing, Xylem shareholders will own approximately 75 percent and Evoqua shareholders will own approximately 25 percent of the combined company. Following the closing, the combined company will continue to be led by Patrick Decker, Xylem’s CEO. The combination is anticipated to deliver run-rate cost synergies of $140 million within three years.

IAA Rises On Increased Cash Consideration In Merger Agreement With Ritchie

IAA, Inc. (IAA) shares are gaining more than 5 percent on Monday morning trade after the company and Ritchie Bros. Auctioneers Inc. (RBA, RBA.TO) announced amended terms of the merger agreement. As per the amendments, Ritchie Bros will acquire IAA in increased cash considerations. IAA shareholders will receive $12.80 per share in cash and 0.5252 common shares of Ritchie Bros.

Currently, IAA is at $43.02, up 5.83 percent from the previous close of $40.65 on a volume of 3,336,680.

RBA is at $61.42, up 2.08 percent from the previous close of $60.17 on a volume of 2,486,806.

Gaotu Techedu Stock Gains 11%

Shares of Gaotu Techedu Inc. (GOTU) are gaining over 11% on Monday morning despite no stock-related news from the company.

GOTU is currently trading at $4.2100, up $0.4200 or 11.08%, on the Nasdaq. The stock has traded between $0.6400 and $4.3550 in the past 52-week period.

Gaotu Techedu, a technology-driven education company, provides online K-12 after-school tutoring services in China.

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European Economics Preview: Eurozone Flash Consumer Confidence Data Due

Flash consumer confidence survey data from the euro area is the top economic news due on Monday, headlining a light day for the European economic news.

At 4.00 am ET, industrial production, producer prices and retail sales figures are due from Poland. Economists forecast industrial output to grow 1.4 percent on a yearly basis, following a 4.6 percent rise in November. Producer price inflation is seen at 19.4 percent versus 20.8 percent a month ago. Retail sales are expected to climb 1.4 percent after rising 1.6 percent in the previous month.

At 6.00 am ET, Germany’s central bank is scheduled to publish its monthly report.

At 10.00 am ET, the European Commission is set to issue euro area flash consumer confidence survey results. The sentiment index is seen at -20.0 in January versus -22.2 in December.

Gold Futures Settle Slightly Higher

Gold futures recovered from early weakness and settled slightly higher on Monday after a lackluster session.

The dollar struggled to hold gains despite staging a fairly good recovery after staying weak in the Asian session. Expectations of slower Fed rate hikes weighed on dollar.

The dollar index, which dropped to 101.59 in the Asian session, climbed to 102.28 around mid morning, before paring gains and dropping to 102.01.

Gold futures for February ended higher by $0.40 at $1,928.60 an ounce.

Silver futures for March ended down $0.381 at $23.554 an ounce, while Copper futures for March settled at $4.2565 per pound, up $0.0050 from the previous close.

Fed Governor Christopher Waller said on Friday that he supported a quarter percentage point rate hike at the February meeting as inflation and wages continued to moderate.

Philadelphia Fed President Patrick Harker also said Friday he expects 25-basis point rate increases to be appropriate going forward.