Positive Chinese Trade Data Sends Equity Higher

Global Markets: Equity markets in the United States were boosted by firmer yuan and positive Chinese Data, with the Dow Jones Industrial Average Index adding 288.61 points or 1.11% to trade at 26,295.68, the S&P 500 index added 45.82 points or 1.59% to quote at 2,929.80, while the technology focused Nasdaq Composite rose by 156.17 points or 1.99% against the previous day closing price to trade at 8,019, at the time of writing.

Global News: Following a volatile week due to fears of slowing global economy, global stocks moved higher on Thursday after investors were encouraged by stronger-than-expected Chinese export data, with exports rose by 3.3 per cent in July from a year earlier. The Labour Department reported that weekly jobless claims fell by 8,000 to 209,000, indicating that the labour market remains strong. Amid a recovery in the equity market, investors scaled back their holdings of sovereign government debt, resulting in 30-year yields rising from a near-record low.

European Markets: The London’s broader equity benchmark index FTSE 100 traded at 87.20 points or 1.21% higher at 7,285.90, the FTSE 250 index snapped 196.61 points or 1.04% higher at 19,137.61, and the FTSE All-Share Index ended 45.57 points or 1.16% higher at 3,981.33 respectively. Another European equity benchmark index STOXX 600 ended at 374.71, up by 6.11 points or 1.66 per cent.

European News: British Prime Minister Boris Johnson reminded parliamentarians of their promise to honour the result of the referendum in 2016 to leave the European Union and urged them to support the exit of the country from the EU on 31 October. Ministry of Justice reported that claims in county courts for repossession rose by 39 per cent over the year to 6,179 claims, rising to the highest since late 2014 during the three months to June. Even as the sterling remains near 2017 lows, it gained as risk sentiment stabilised after positive data from China.

London Stock Exchange (LSE)

Top Performers Stocks: HL. (HARGREAVES LANS), JUST (JUST GROUP), and KIE (KIER GROUP) rose by 11.84 per cent, 9.95 per cent and 9.45 per cent respectively.

Top Laggards Stocks: TIFS (TI FLUID), BT. A (BT GROUP), and ASAI (ASA INT) reduced by 14.94 per cent, 5.88 per cent and 5.13 per cent respectively.

FTSE 100 Index

 

FTSE 100 Index Chart: 5-days Price Performance (as on August-08-2019), after the market closed. (Source: Thomson Reuters)

Top Risers Stocks: HL. (HARGREAVES LANS), RR (ROLLS-ROYCE HLG), and ANTO (ANTOFAGASTA PLC) rose by 11.84%, 5.97%, and 5.41% respectively.

Top Fallers Stocks: BT. A (BT GROUP PLC), DLG (DIRECT LINE INSURANCE GROUP PLC), and SLA (STANDARD LIFE ABERDEEN PLC) reduced by 5.88 per cent, 2.64 per cent and 1.77 per cent respectively.

Top Three Active Volume Stocks: LLOYDS BANKING GROUP PLC (LLOY), Vodafone Group PLC (VOD), and Barclays PLC (BARC).

Top Performers Sectors: Basic Materials (+2.90%), Industrials (+2.31%), and Technology (+2.09%).

Top Faller Sector: Telecommunications Services (-0.16%).

Foreign Exchange and Fixed Income

FX Rates (the time of writing): GBP/USD and EUR/GBP were trading at 1.2136 and 0.9221 respectively.

10-Year Bond Yields (at the time of writing): US 10Y Treasury and UK 10Y Bond yields were exchanging at 1.716% and 0.533% respectively.

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