How the European Markets Performed by The Election of Boris Johnson?

Global Markets: Stocks at the Wallstreet were trading in green, with the broader index S&P 500 added 16.52 points or 0.55% against the previous day closing and quoting at 3,001.55, the Dow Jones Industrial Average Index added 158.79 points or 0.58% in day’s session and trading at 27,330.69 and the technology benchmark index Nasdaq Composite accelerated by 28.21 points or 0.34% and quoting at 8,232.34 respectively, at the time of writing.

Global News: As the US President Donald Trump and the Congress leaders reached a two-year debt ceiling and budget deal and Coca-Cola and United Technologies reported upbeat earnings and forecasts, the US equity rose on Tuesday. Treasuries yields edging higher as investors waited for signals about the intensity of accommodative policy. Amid a possibility of slow growth, weakening investment and disruption in supply chains due to disorderly exit for Britain from the EU or US-China trade war, the International Monetary Fund cut its forecast for global economic growth this year and next year by 0.1 percentage point and announced its fourth downgrade since October.

European Markets: The London’s broader equity benchmark index FTSE 100 traded at 41.93 points or 0.56% higher at 7,556.86, the FTSE 250 index snapped 104.33 points or 0.53% higher at 19,752.34, and the FTSE All-Share Index ended 22.20 points or 0.54% higher at 4,124.22 respectively. Another European equity benchmark index STOXX 600 ended at 391.54, up by 3.80 points or 0.98 per cent.

European News: With 66% of the party vote, Boris Johnson, an avowed Brexiteer and former foreign secretary, won the leadership of the Conservative Party on Tuesday to become the Prime Minister of the UK. His convincing victory led the country a step further towards a constitutional crisis at home as he has promised to deliver Brexit with or without a deal by the end of October. Goldman Sachs, an investment bank, raised its estimate of the likelihood of a hard Brexit, as his election has raised worries that the nation was moving towards a hard Brexit.

The upcoming Prime Minister has not ruled out suspending the parliament to ensure the exit from the European Union, setting up a potential conflict with the lawmakers who have threatened to bring down any government that tries to leave the bloc without a divorce deal. The Pound and equity rallied in-line with the broader European markets and were largely unaffected by the news, as the Sterling moved little on Tuesday to hover around its lowest level in two years.

London Stock Exchange (LSE)

Top Performers Stocks: INDIVIOR PLC (INDV), MEDICA GROUP PLC (MGP), and HUNTSWORTH PLC (HNT) surged by 10.07 per cent, 5.60 per cent and 5.59 per cent respectively.

Top Laggards Stocks: DE LA RUE PLC (DLAR), PETRA DIAMONDS LD (PDL), and TED BAKER PLC (TED) decreased by 15.77 per cent, 6.52 per cent and 5.52 per cent respectively.

FTSE 100 Index

FTSE100 Index: 5-days Price Chart (as on July 23, 2019), after the market closed. (Source: Thomson Reuters)

Top Risers Stocks: MELROSE INDUSTRIES PLC (MRO), NMC HEALTH PLC (NMC) and SMURFIT KAPPA GROUP PLC (SKG) rose by 5.07 per cent, 4.00 per cent and 3.73 per cent respectively.

Top Fallers Stocks: WHITBREAD PLC (WTB), JUST EAT PLC (JE.) and AUTO TRADER GROUP PLC (AUTO) reduced by 3.03 per cent, 2.90 per cent and 2.32 per cent respectively.

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

Top Risers Sectors: Telecommunications Services (+1.82%), Industrials (+0.94%) and Healthcare (+0.91%).

Top Faller Sector: Technology (-1.35%).

Foreign Exchange and Fixed Income

FX Rates*: GBP/USD and EUR/GBP were exchanging at 1.2445 and 0.8961 respectively.

10-Year Bond Yields*: US 10Y Treasury and UK 10Y Bond yields were trading at 2.074% and 0.688% respectively. 

*At the time of writing

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