European Markets Trading In Red, Sterling Continues To Hover Around Six-Month Low

Global Markets: Equity indices at the United States bourses have slumped in red, with the broader index the S&P 500 index declined 18.03 points or 0.60% in the day’s session and quoting at 2,972.20. The Dow Jones Industrial Average Index slumped by 148.86 points or 0.55% against the previous day closing and trading at 26,773.26 and the technology benchmark index Nasdaq Composite declined by 80.91 points or 0.97% in today’s session and quoting at 8,081.07 respectively, at the time of writing.

Global News: As expectations that the US central bank would pursue an aggressive monetary easing were tempered, US equities continued their slide from Friday. Stronger-than-expected employment data on Friday led investors to revisit their bets on a rate cut, prompting flattening of the yield curve. Raising questions about the validity of the nuclear agreement, Iran threatened on Monday to ramp up enrichment of uranium to 20 per cent purity and restart deactivated centrifuges, going beyond the small steps it had taken lately.

European Markets: The London’s broader equity benchmark index FTSE 100 traded at 3.87 points or 0.05% lower at 7,549.27, the FTSE 250 index snapped 73.80 points or 0.38% lower at 19,581.47, and the FTSE All-Share Index ended 4.72 points or 0.12% lower at 4,115.79 respectively. European benchmark index STOXX 600 ended 0.21 points or 0.05% lower at 389.90 respectively.

European News: Reduced hopes of large rate cut by the US Federal Reserve bank capped the gains of the FTSE 100 as tobacco stocks jumped on a buyback and dividend revision plans by Imperial Brands. As investors continued to bet on lower British interest rates and uncertainty over the departure from the European Union continued, Sterling hovered near a six-month low against the dollar on Monday. The British government distanced itself from the views of ambassador to US Kim Darroch, who described the US administration in confidential memos as inept and dysfunctional.

London Stock Exchange (LSE)

Top Performers Stocks: LINDSELL TRAIN INVESTMENT TRUST PLC (LTI), ACACIA MINING PLC (ACA), and NANOCO GROUP PLC (NANO) surged by 5.12 per cent, 4.51 per cent and 4.07 per cent respectively.

Top Laggards Stocks: KIER GROUP PLC (KIE), GVC HOLDINGS PLC (GVC), and INDIVIOR PLC (INDV) decreased by 7.98 per cent, 7.09 per cent and 6.94 per cent respectively.

FTSE 100 Index

FTSE100 Index: 5-days Price Chart as on July 08, 2019. (Source: Thomson Reuters)

Top Risers Stocks: IMPERIAL BRANDS PLC (IMB), BHP GROUP PLC (BHP) and EXPERIAN PLC (EXPN) rose by 2.20 per cent, 1.88 per cent and 1.69 per cent respectively.

Top Fallers Stocks: OCADO GROUP PLC (OCDO), JD SPORTS FASHION PLC (JD.) and SCHRODERS PLC (SDR) reduced by 4.45 per cent, 2.93 per cent and 2.64 per cent respectively.

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

Top Risers Sectors: Basic Materials (+1.12%), Consumer Non-Cyclicals (+0.42%) and Energy (+0.01%).

Top Fallers Sectors: Healthcare (-0.85%), Utilities (-0.71%) and Consumer Cyclicals (-0.58%).

Foreign Exchange and Fixed Income

FX Rates*: GBP/USD and EUR/GBP were exchanging at 1.2515 and 0.8959 respectively.

10-Year Bond Yields*: US 10Y Treasury and UK 10Y Bond yields were trading at 2.029% and 0.716% respectively. 

*At the time of writing

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