Relief from Trade Dispute Fades as Investors Worry About Economic Growth

Global Markets: Equity indices in the United States were quoting in red, with the broader index S&P 500 Index declined by 1.1 points or 0.04% against the previous day closing level and quoting at 2,963.68, the Dow Jones Industrial Average Index fell by 16.39 points or 0.06% in today’s session and quoting at 26,701.04 and the technology benchmark index Nasdaq Composite dropped by 17.30 points or 0.21% against the previous day closing price and quoting at 8,074.19, at the time of writing.

Global News: After the United States threatened additional tariffs on European goods and weak manufacturing data was reported, the record-setting rally abated on Tuesday as optimism sparked by the U.S.-China trade truce waned. Anxiety about slowing global economic growth also led to a decline in Treasury yields on renewed safe-haven demand. The United States threatened an additional $4 billion in tariffs on EU goods, while the EU said it was open to talks with Washington in a dispute over aircraft subsidies.   

European Markets: The London’s broader equity benchmark index FTSE 100 traded at 61.69 points or 0.82% higher at 7,559.19, the FTSE 250 index snapped 24.67 points or 0.13% higher at 19,659.33, and the FTSE All-Share Index ended 27.92 points or 0.68% higher at 4,123.10 respectively. European benchmark index STOXX 600 ended 1.42 points or 0.37% higher at 389.29 respectively.

European News: Jeremy Hunt, a contender to become the next PM of the UK, said that any deal that included the current Irish backstop provision would not be accepted and it must either change or be dropped. In a strong sign showing how quickly the economy is slowing, the IHS Markit/CIPS construction Purchasing Managers Index (PMI) plunged to 43.1 in June, as Brexit crisis tipped the construction industry into its sharpest decline in a decade. Following the news, investors anxious about the prospect of a no-deal Brexit sought refuge in bonds as the yield on 10-year British government bonds sank to its lowest level in nearly three years and Sterling hit a two-week low against the dollar on Tuesday.

London Stock Exchange (LSE)

Top Performers Stocks: STOBART GROUP LD (STOB), OXFORD INSTRUMENTS PLC (OXIG), and INTERNATIONAL PERSONAL FINANCE PLC (IPF) surged by 9.38 per cent, 8.62 per cent and 7.34 per cent respectively.

Top Laggards Stocks DIALIGHT PLC (DIA), FUNDING CIRCLE HOLDINGS PLC (FCH), and JUPITER FUND MANAGEMENT PLC (JUP) decreased by 38.79 per cent, 29.08 per cent and 8.50 per cent respectively.

FTSE 100 Index

FTSE100 Index: 5-days Price Chart as on July 02, 2019. (Source: Thomson Reuters)

Top Risers Stocks: FERGUSON PLC (FERG), RECKITT BENCKISER GROUP PLC (RB.) and NATIONAL GRID PLC (NG.) rose by 3.39 per cent, 3.29 per cent and 2.81 per cent respectively.

Top Fallers Stocks: CRODA INTERNATIONAL PLC (CRDA), ANTOFAGASTA PLC (ANTO) and AUTO TRADER GROUP PLC (AUTO) reduced by 3.97 per cent, 2.78 per cent and 2.46 per cent respectively.

Top Active Volume Leaders: LLOYDS BANKING GROUP PLC, VODAFONE GROUP PLC, and GLENCORE PLC.

Top Risers Sectors: Utilities (+2.37%), Consumer Non-Cyclicals (+1.89%) and Healthcare (+1.27%).

Top Faller Sector: Energy (-0.17%).

Foreign Exchange and Fixed Income

FX Rates*: GBP/USD and EUR/GBP were exchanging at 1.2603 and 0.8960 respectively.

10-Year Bond Yields*: US 10Y Treasury and UK 10Y Bond yields were trading at 1.977% and 0.728% respectively. 

*At the time of writing

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