Global Markets: Broader equity indices in the United States were trading on a mixed note with Dow Jones Industrial Average Index fell off about 33.55 points or 0.13% in day’ session and quoting at 25,995.97, the global benchmark index S&P 500 Index expanded by 1.73 points or 0.06% against its previous closing level and citing at 2,883.50 and the widely tracked technology benchmark index Nasdaq Composite surged by approximately 28.72 points or 0.37% to 7,861.98 respectively, at the time of writing.
Global News: As investors anticipated another rate cut by the US central bank to combat growing risks of recession and amid increasing fears over a global economic downturn, the US Treasury yields fell on Wednesday. The premium on three-month Treasury bill yields over 10-year Treasury yields rose to its highest level since March 2007, spooking the investors, and 30-year yields were hovering around record lows. Bond yields fell around the world as rate cuts in New Zealand, India and Thailand spurred more bond buying, sending German yields to record lows in negative territory. Alarming signals from the bond market that pointed to an increased risk of a recession spooked investors.
European Markets: The London’s broader equity benchmark index FTSE 100 traded at 27.01 points or 0.38% higher at 7,198.70, the FTSE 250 index snapped 94.80 points or 0.50% higher at 18,941.00, and the FTSE All-Share Index ended 15.06 points or 0.38% higher at 3,935.76 respectively. Another European equity benchmark index STOXX 600 ended at 368.60, up by 0.89 points or 0.24 per cent.
European News: Michael D’Arcy, the minister in charge of financial services in Ireland, predicted that the country would leave the EU without a deal and it would cause a severe economic shock in the country. Mortgage lender Halifax said on Wednesday that house prices unexpectedly fell by 0.2% in July, declining for the second month in a row. The figure was lower than the market’s expectations. The Food and Drink Federation warned that that the country would face some food shortages in the weeks and months following no-deal Brexit and there might be some price rise.
London Stock Exchange (LSE)
Top Performers Stocks: AVON (AVON RUBBER PLC), ULE (ULTRA ELECTRONICS HOLDINGS PLC), and ASAI (ASA INTERNATIONAL GROUP PLC) rose by 18.73 per cent, 11.42 per cent and 8.33 per cent respectively.
Top Laggards Stocks: LUCE (LUCECO PLC), NMC (NMC HEALTH PLC), and SXX (SIRIUS MINERALS PLC) reduced by 11.80 per cent, 11.43 per cent and 11.11 per cent respectively.
FTSE 100 Index
FTSE 100 Index Chart: 5-days Price Performance (as on August-07-2019), after the market closed. (Source: Thomson Reuters)
Top Risers Stocks: JE. (JUST EAT PLC), FLTR (FLUTTER ENTERTAINMENT PLC), and FRES (FRESNILLO PLC) rose by 6.82%, 5.97%, and 5.58% respectively.
Top Fallers Stocks: NMC (NMC HEALTH PLC), SLA (STANDARD LIFE ABERDEEN PLC), and SPX (SPIRAX-SARCO ENGINEERING PLC) reduced by 11.43 per cent, 7.52 per cent and 6.39 per cent respectively.
Top Three Active Volume Stocks: LLOYDS BANKING GROUP PLC (LLOY), BP PLC (BP), and GLENCORE PLC (GLEN).
Top Performers Sectors: Technology (+1.46%), Consumer Cyclicals (+1.44%), and Industrials (+1.24%).
Top Fallers Sectors: Basic Materials (-0.46%), and Energy (-0.31%).
Foreign Exchange and Fixed Income
FX Rates (at the time of writing): GBP/USD and EUR/GBP were trading at 1.2148 and 0.9233 respectively.
10-Year Bond Yields (at the time of writing): US 10Y Treasury and UK 10Y Bond yields were exchanging at 1.684% and 0.477% respectively.