Domestic Uncertainties Forces Pound Towards Six-Month Low

Global Markets: Equities at the United States bourses were trading in mix, with Dow Jones Industrial Average Index was trading 16.31 points or 0.06% lower at 27,315.72, the S&P 500 index declined 3.27 points or 0.11% and quoting at 3,010.25 and the technology benchmark index Nasdaq Composite was quoting at 8,246.79 and added 2.71 points or 0.03% in day’s session, at the time of writing.

Global News: After Citigroup, third largest US lender, reported shrinking interest margins, falling banks stocks weighed on the equity indices as they eased from their record highs. Seeking to find the direction of the USD economy, investors awaited retail sales figures, driving the longer-dated US Treasury yields lower, which had increased in the past week. In the face of increasing US trade pressure, demand at home and abroad faltered in China, leading to a slowing of economic growth to 6.2 per cent in the second quarter, which was seen as a significant win by President Donald Trump, who called it the effect of US tariff.

European Markets: The London’s broader equity benchmark index FTSE 100 traded at 25.75 points or 0.34% higher at 7,531.72, the FTSE 250 index snapped 32.31 points or 0.17% higher at 19,584.14, and the FTSE All-Share Index ended 12.56 points or 0.31% higher at 4,107.50 respectively. Another European benchmark index STOXX 600 ended 0.90 points or 0.23% higher at 387.75 respectively.

European News: British finance minister Philip Hammond said he would try to stop any attempt by the upcoming prime minister to take the country out of the European Union without a transition agreement and would not continue his job when the next PM takes over next week. After seven sessions of losses, the FTSE 100 index rose on Monday on hopes of stimulus in China, after disappointing data. As traders still worry about the new prime minister, prospect of an interest rate cut and a loss of momentum in the UK economy, the pound declined back towards six-month lows against the dollar and the euro.

London Stock Exchange (LSE)

Top Performers Stocks: LINDSELL TRAIN INVESTMENT TRUST PLC (LTI), DISCOVERIE GROUP PLC (DSCV), and AO WORLD PLC (AO.) surged by 7.79 per cent, 6.44 per cent and 5.63 per cent respectively.

Top Laggards Stocks: KIER GROUP PLC (KIE), SPORTS DIRECT INTERNATIONAL PLC (SPD), INDIVIOR PLC (INDV) decreased by 12.69 per cent, 9.57 per cent and 7.13 per cent respectively.

FTSE 100 Index

FTSE100 Index: 5-days Price Chart (as on July 15, 2019), after the market closed. (Source: Thomson Reuters)

Top Risers Stocks: JUST EAT PLC (JE.), FLUTTER ENTERTAINMENT PLC (FLTR) and ANTOFAGASTA PLC (ANTO) rose by 4.28 per cent, 4.22 per cent and 4.01 per cent respectively.

Top Fallers Stocks: MICRO FOCUS INTERNATIONAL PLC (MCRO), PERSIMMON PLC (PSN) and VODAFONE GROUP PLC (VOD) reduced by 5.66 per cent, 2.89 per cent and 1.17 per cent respectively.

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

Top Risers Sectors: Basic Materials (+1.21%), Industrials (+0.91%) and Healthcare (+0.63%).

Top Faller Sector: Telecommunications Services (-1.14%).

Foreign Exchange and Fixed Income

FX Rates*: GBP/USD and EUR/GBP were exchanging at 1.2519 and 0.8993 respectively.

10-Year Bond Yields*: US 10Y Treasury and UK 10Y Bond yields were trading at 2.097% and 0.799% respectively. 

*At the time of writing

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