How did the market perform ahead of BOE’s decision to keep the bank rate unchanged

Global Markets: Shares in the United States were trading in red with the broader index S&P 500 decreased by 26.76 points or 0.90% in day’s session, the Dow Jones Industrial Index plunged by 250.13 points or 0.93% against yesterday’s close and trading at 26,614.14 and the technology benchmark index Nasdaq Composite Index dipped by 77.32 points or 0.95% and quoting at 8,098.10 respectively, at the time of writing.

Global News: As the US central bank dampened hopes of a long run of interest rate cuts, the dollar index rose to its highest in more than two years on Thursday, as investors were hoping for a more dovish stance. However, expectations for further interest rate cuts by the bank was fuelled by weaker economic data and stronger US dollar. Initial jobless claims increased by 8,000 to 215,000 in the week ending July 27 and the IHS Markit US manufacturing index declined to its lowest since September 2009.

European Markets: The London’s broader equity index FTSE 100 ended 1.91 points or 0.03% lower at 7,584.87, the FTSE 250 Index slumped 32.21 points or 0.16% in today’s session and ended at 19,634.31 and the FTSE All-Share Index fell off 1.80 points or 0.04% against the previous close and ended day’s session at 4,132.23 respectively. Another European equity benchmark index STOXX increased by 1.91 points or 0.50% in day’s session and ended the market session at 387.68.

European News: As worries over a slowing global economy and increased risk of no-deal Brexit rose, the Bank of England cut its growth forecasts on Thursday, while giving no indication of a rate cut, even in the event of a no-deal Brexit.  Reduced estimates for British economic growth and a stronger dollar drove the sterling further down to reach 30-month low on Thursday. New finance minister Sajid Javid pledged an extra GBP 2.1 billion to prepare for no-deal, including GBP 138 million for advertising and consular support. The IHS Markit/CIPS manufacturing PMI for July indicated that manufacturing output in the UK declined by the most in seven years last month, declining further below the 50-mark that separates growth from contraction.

London Stock Exchange (LSE)

Top Performers Stocks: KIE (KIER GROUP PLC), TCG (THOMAS COOK GROUP PLC), and CTEC (CONVATEC GROUP PLC) rose by 33.33 per cent, 25.77 per cent and 17.87 per cent respectively.

Top Laggards Stocks: AMGO (AMIGO HOLDINGS PLC), PDG (PENDRAGON PLC), and INTU (INTU PROPERTIES PLC) reduced by 10.55 per cent, 6.98 per cent and 6.96 per cent respectively.

FTSE 100 Index

FTSE100 Index Chart: 5-days Price Performance (as on August-01-2019), after the market closed. (Source: Thomson Reuters)

Top Risers Stocks: BATS (BRITISH AMERICAN TOBACCO PLC), LSE (LONDON STOCK EXCHANGE GROUP PLC) and ITRK (INTERTEK GROUP PLC) rose by 6.89 per cent, 6.52 per cent and 4.45 per cent respectively.

Top Fallers Stocks: MNDI (MONDI PLC), RDSB (ROYAL DUTCH SHELL PLC ‘B’), and RDSA (ROYAL DUTCH SHELL PLC ‘A’) reduced by 5.35 per cent, 5.01 per cent and 4.93 per cent respectively.

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

Top Risers Sectors: Consumer Non-Cyclicals (+2.03%), Healthcare (+1.40%), and Industrial (+1.11%) respectively.

Top Fallers Sectors: Energy (-4.15%), and Basic Materials (-2.60%).

Foreign Exchange and Fixed Income

FX Rates*: GBP/USD and EUR/GBP were trading at 1.2150 and 0.9120 respectively.

10-Year Bond Yields*: US 10Y Treasury and UK 10Y Bond yields were exchanging at 1.904% and 0.585% respectively.

*At the time of writing

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