US Reports Stronger-Than-Expected Jobs Data

Global Markets: In the Friday’s session, equity indices at the Wallstreet were trending in red, with the broader index S&P 500 decreased by 17.02 points or 0.57% and quoting at 2,978.80, the Dow Jones Industrial Average Index declined by 120.68 points or 0.45% against the previous day closing price and quoting at 26,845.32 and the technology benchmark index Nasdaq Composite reduced by 46.89 points or 0.57% in today’s session and trading at 8,123.35, at the time of writing.

Global News: The US job growth surged the most in five months as data showed nonfarm payrolls rose by 224,000 jobs in June, quelling fears of economic slowdown and beating forecasts of 160,000 additions. Although investors still hoped that the Fed would start easing monetary policy, they lowered their expectations of a 50 basis point rate cut, resulting in benchmark 10-year yields rising to a more than one-week high. This also led to a decline in major indices, while rate-sensitive bank stocks rose.

European Markets: The London’s broader equity benchmark index FTSE 100 traded at 50.44 points or 0.66% lower at 7,553.14, the FTSE 250 index snapped 142.34 points or 0.72% lower at 19,655.27, and the FTSE All-Share Index ended 27.46 points or 0.66% lower at 4,120.51 respectively. European benchmark index STOXX 600 ended 2.83 points or 0.72% lower at 390.11 respectively.

European News: In retaliation for the seizure of an Iranian supertanker, Iranian forces on Friday threatened to capture a British ship. After better-than-expected nonfarm payrolls data led to a rally in the dollar and a rise in expectations that the British central bank will cut interest rate, the pound hit a six-month low on Friday and was headed for its ninth consecutive week of losses against the euro. The FTSE 100 recorded its worst day in more than a month as robust US employment data dashed hoped of an aggressive rate cut.

London Stock Exchange (LSE)

Top Performers Stocks: PREMIER FOODS PLC (PFD), FUNDING CIRCLE HOLDINGS PLC (FCH), and U AND I GROUP PLC (UAI) surged by 7.04 per cent, 5.39 per cent and 4.78 per cent respectively.

Top Laggards Stocks LINDSELL TRAIN INVESTMENT TRUST PLC (LTI), MENZIES(JOHN) PLC (MNZS), and VICTREX PLC (VCT) decreased by 22.41 per cent, 9.83 per cent and 7.89 per cent respectively.

FTSE 100 Index

FTSE100 Index: 5-days Price Chart as on July 05, 2019. (Source: Thomson Reuters)

Top Risers Stocks: JUST EAT PLC (JE.), SAINSBURY(J) PLC (SBRY) and TUI AG (TUI) rose by 2.78 per cent, 2.39 per cent and 1.37 per cent respectively.

Top Fallers Stocks: RIO TINTO PLC (RIO), EVRAZ PLC (EVR) and AVEVA GROUP PLC (AVV) reduced by 3.83 per cent, 3.68 per cent and 3.25 per cent respectively.

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

Top Riser Sector: Telecommunications Services (+0.51%).

Top Fallers Sectors: Basic Materials (-2.70%), Industrials (-1.19%) and Utilities (-0.94%).

Foreign Exchange and Fixed Income

FX Rates*: GBP/USD and EUR/GBP were exchanging at 1.2525 and 0.8962 respectively.

10-Year Bond Yields*: US 10Y Treasury and UK 10Y Bond yields were trading at 2.044% and 0.738% respectively. 

*At the time of writing

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